UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| (Mark One) | |
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the quarterly period ended February 28, 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: 333-273760
| BLUE CHIP CAPITAL GROUP, INC. |
| (Exact name of registrant as specified in its charter) |
| Nevada | 84-3870355 | |
| (State
or other jurisdiction of incorporation or organization) |
(I.R.S.
Employer Identification No.) | |
| 110 East 59th Street, 23rd Floor, New York, NY | 10022 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (212) 324-3748
(Former name, former address and former fiscal year, if changed since last report):
Securities registered pursuant to Section 12(b) of the Act: None
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 | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
| 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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: common shares issued and outstanding as of April 17, 2026.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
TABLE OF CONTENTS
| PART I - FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements | 3 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition or Plan of Operation | 4 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 5 |
| Item 4. | Controls and Procedures | 5 |
| PART II - OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 6 |
| Item 1A. | Risk Factors | 6 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 9 |
| Item 3. | Defaults Upon Senior Securities | 10 |
| Item 4. | Mine Safety Disclosures | 10 |
| Item 5. | Other Information | 10 |
| Item 6. | Exhibits | 10 |
| SIGNATURES | 11 | |
| 2 |
BLUE CHIP CAPITAL GROUP, INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
February 28, 2026
(UNAUDITED)
| 3 |
BLUE CHIP CAPITAL GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
February 28, 2026 Unaudited | May 31, 2025 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | $ | 393 | |||||
| Total Current Assets | 393 | |||||||
| Other Assets | ||||||||
| Software application | 88,590 | 88,590 | ||||||
| Total Other Assets | 88,590 | 88,590 | ||||||
| Total Assets | $ | 88,590 | $ | 88,983 | ||||
| LIABILITIES AND STOCKHOLDERS’ (DEFICIT) | ||||||||
| Current Liabilities | ||||||||
| Overdraft | 1,170 | |||||||
| Accounts Payable-Related Party | 268,360 | 105,000 | ||||||
| Accrued interest payable | 126,978 | 22,030 | ||||||
| Due to related parties | 3,522 | 240 | ||||||
| Notes Payable | 320,000 | 35,000 | ||||||
| Convertible notes payable, net of discount of $204,758 and $167,514 respectively | 1,080,242 | 447,486 | ||||||
| Total Liabilities | 1,800,272 | 609,756 | ||||||
| Stockholders’ (Deficit) | ||||||||
| Preferred A Stock, $ par value; shares authorized, issued and outstanding on February 28, 2026, and on May 31, 2025, respectively | 100 | 100 | ||||||
| Common stock, $ par value; shares authorized, issued and outstanding, on February 28, 2026, and issued and outstanding on May 31, 2025 | 9,781 | 8,629 | ||||||
| Additional paid-in capital | 24,370,886 | 7,726,711 | ||||||
| Accumulated deficit | (26,092,449 | ) | (8,256,213 | ) | ||||
| Total Stockholders’ (Deficit) | (1,711,682 | ) | (520,773 | ) | ||||
| Total Liabilities and Stockholders’ (Deficit) | $ | 88,590 | $ | 88,983 | ||||
See accompanying notes to the condensed consolidated unaudited financial statements.
| F-1 |
BLUE CHIP CAPITAL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| February 28, | February 28, | February 28, | February 28, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues: | $ | $ | $ | $ | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Inducement expense | 2,918,050 | 10,176,450 | ||||||||||||||
| Stock-based compensation | 197,611 | 1,050,000 | 5,885,611 | 1,050,000 | ||||||||||||
| General & Administrative expenses | 355,019 | 236,219 | 1,123,205 | 363,680 | ||||||||||||
| Total Operating expenses | 3,470,680 | 1,286,219 | 17,185,266 | 1,413,680 | ||||||||||||
| Loss from operations | (3,470,680 | ) | (84,042 | ) | (17,185,266 | ) | (1,413,680 | ) | ||||||||
| Other income/(expenses): | ||||||||||||||||
| Interest expense | (235,221 | ) | (90,825 | ) | (650,969 | ) | (90,825 | ) | ||||||||
| Total other income/(expenses): | (235,221 | ) | (90,825 | ) | (650,969 | ) | (90,825 | ) | ||||||||
| NET LOSS | $ | (3,705,901 | ) | $ | (1,377,044 | ) | $ | (17,836,235 | ) | $ | (1,504,505 | ) | ||||
| Net Loss Share Basic and Diluted | $ | ) | $ | ) | $ | ) | $ | ) | ||||||||
| Weighted Average Number of Common Shares Outstanding during the year Basic and Diluted | ||||||||||||||||
See accompanying notes to the consolidated unaudited financial statements.
| F-2 |
BLUE CHIP CAPITAL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT
(UNAUDITED)
For the three and nine months ended February 28, 2026
| Shares | Amounts | Shares | Amount ($) | Additional Paid-In Capital ($) | Accumulated Deficit ($) | Stockholders’ Deficit ($) | ||||||||||||||||||||||
| Balance May 31, 2025 | 999,999 | 100 | 86,289,400 | 8,629 | 7,726,711 | (8,256,213 | ) | (520,773 | ) | |||||||||||||||||||
| Issuance of Common Shares for Convertible Notes | 2,470,000 | 247 | 3,425,753 | 3,426,000 | ||||||||||||||||||||||||
| Warrants granted | 275,389 | 275,389 | ||||||||||||||||||||||||||
| Net Loss | (3,964,135 | ) | (3,964,135 | ) | ||||||||||||||||||||||||
| Balance August 31, 2025 | 999,999 | 100 | 88,759,400 | 8,876 | 11,427,853 | (12,220,348 | ) | (783,519 | ) | |||||||||||||||||||
| Issuance of Common Shares for Convertible Notes | 2,620,000 | 262 | 3,832,138 | 3,832,400 | ||||||||||||||||||||||||
| Issuance of Common Shares for Services | 4,000,000 | 400 | 5,599,600 | 5,600,000 | ||||||||||||||||||||||||
| Warrants granted | 212,639 | 212,639 | ||||||||||||||||||||||||||
| Net Loss | (10,166,200 | ) | (10,166,200 | ) | ||||||||||||||||||||||||
| Balance November 30, 2025 | 999,999 | 100 | 95,379,400 | 9,538 | 21,072,230 | (22,386,548 | ) | (1,304,680 | ) | |||||||||||||||||||
| Issuance of Common Shares for Convertible Notes | 1,877,500 | 188 | 2,917,862 | 2,918,050 | ||||||||||||||||||||||||
| Issuance of Common Shares for Services | 550,000 | 55 | 197,556 | 197,611 | ||||||||||||||||||||||||
| Warrants granted | 95,238 | 95,238 | ||||||||||||||||||||||||||
| Warrants for Services | 88,000 | 88,000 | ||||||||||||||||||||||||||
| Net Loss | (3,705,901 | ) | (3,705,901 | ) | ||||||||||||||||||||||||
| Balance February 28, 2026 | 999,999 | 100 | 97,806,900 | 9,781 | 24,370,886 | (26,092,449 | ) | (1,711,682 | ) | |||||||||||||||||||
For the three and nine months ended February 28, 2025
| Balance May 31, 2024 | 999,999 | 100 | 81,941,400 | 8,194 | 2,476,851 | (2,563,077 | ) | (77,932 | ) | |||||||||||||||||||
| Issuance of Common Shares for cash | 500 | 1,000 | 1,000 | |||||||||||||||||||||||||
| Net Loss | (43,419 | ) | (43,419 | ) | ||||||||||||||||||||||||
| Balance August 31, 2024 | 999,999 | 100 | 81,941,900 | 8,194 | 2,477,851 | (2,606,496 | ) | (120,351 | ) | |||||||||||||||||||
| Net Loss | (84,042 | ) | (84,042 | ) | ||||||||||||||||||||||||
| Balance November 30, 2024 | 999,999 | 100 | 81,941,900 | 8,194 | 2,477,851 | (2,690,538 | ) | (204,393 | ) | |||||||||||||||||||
| Issuance of Common of Shares for Convertible Notes | 1,097,500 | 110 | 548,640 | 548,750 | ||||||||||||||||||||||||
| Issuance of Common Shares for Services | 2,100,000 | 210 | 1,049,790 | 1,050,000 | ||||||||||||||||||||||||
| Net Loss | (1,377,044 | ) | (1,377,044 | ) | ||||||||||||||||||||||||
| Balance February 28, 2025 | 999,999 | 100 | 84,039,400 | 8,405 | 3,165,591 | (3,156,784 | ) | 17,313 |
See accompanying notes to the condensed consolidated unaudited financial statements.
| F-3 |
BLUE CHIP CAPITAL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Nine Months Ended | For the Nine Months Ended | |||||||
| February 28, 2026 | February 28, 2025 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net loss | $ | (17,836,235 | ) | $ | (1,504,505 | ) | ||
| Adjustments to reconcile net loss to net cash used in operations | ||||||||
| Amortization of debt discount | 546,021 | 85,106 | ||||||
| Inducement expense | 10,176,450 | |||||||
| Stock-based compensation | 5,797,611 | 1,050,000 | ||||||
| Warrants issued for services | 88,000 | |||||||
| Changes in operating assets and liabilities: | ||||||||
| Overdraft | 1,172 | |||||||
| Accounts payable | 163,358 | 45,000 | ||||||
| Accrued interest payable | 104,948 | 5,219 | ||||||
| Due to related parties | 3,282 | 1,187 | ||||||
| Net Cash Used In Operating Activities | (955,393 | ) | (317,993 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Note Payable borrowings | 955,000 | 565,000 | ||||||
| Proceeds from sale of common stock | 1,000 | |||||||
| Net Cash Provided by Financing Activities | 955,000 | 566,000 | ||||||
| Net (Decrease) in Cash and Restricted Cash | (393 | ) | 248,007 | |||||
| Cash and Restricted Cash at Beginning of Period | 393 | 2,743 | ||||||
| Cash and Restricted Cash at End of Period | $ | $ | 250,750 | |||||
| End of Period | ||||||||
| Cash | $ | 750 | ||||||
| Restricted Cash | $ | 250,000 | ||||||
| Total Cash and Restricted Cash at End of Period | $ | 250,750 | ||||||
Supplemental disclosure of cash flow information: Non-cash investing and financing activities | ||||||||
| Shares issued with convertible notes | 548,750 | |||||||
| Shares issued as inducement | $ | 10,176,450 | $ | |||||
| Shares issued for services | 5,797,611 | |||||||
| Warrants granted | $ | 634,021 | $ | |||||
The accompanying notes to the condensed consolidated unaudited financial statements.
| F-4 |
BLUE CHIP CAPITAL GROUP, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – ORGANIZATION AND BUSINESS
Blue Chip Capital Group, Inc., (the “Company”) was incorporated in the State of Delaware on November 27, 2019, under the name of Blue-Chip Financial Group Corp. It was subsequently reincorporated in the State of Nevada on December 17, 2020, with a name change to Blue Chip Capital Group, Inc.
The Company has developed a Crowdfunding platform under the “Raisewise™” name that will operate under wholly and majority owned subsidiaries to provide individual or entity investors with access to a wide array of private market investment opportunities, identifying and evaluating potential investment opportunities in startups and private businesses, among others.
On June 15, 2020, the Company established Raisewise USA, Inc., a 100% owned subsidiary, under the laws of the State of New York. Raisewise USA was granted the rights to the Company’s Crowdfunding platform under a License Agreement and Platform Management and Maintenance Services Agreement. Raisewise USA, has made application with FINRA which application is being updated to meet FINRA’s dedicated page platform requirements. In addition, Raisewise USA plans to resubmit application to be registered as a Crowdfunding entity by the United States Securities and Exchange Commission (“SEC”).
On January 8, 2021, the Company established Raisewise Morocco LLC as a 100% owned subsidiary under the laws of Morocco. No assets or liabilities have been recorded on its balance sheet, nor has the subsidiary conducted any operations since inception. Raisewise Morocco is awaiting legislative approval as a Crowdfunding business in order to commence operations.
On May 21, 2021, the Company established Raisewise Sweden AB as a 100% owned limited liability subsidiary under the laws of Sweden. Raisewise Sweden AB has been granted a registration to provide Crowdfunding services with the national regulator in Sweden. On December 22, 2020, Medcap LTD purchased a twenty (20%) percent ownership in the subsidiary for $50,000. No assets or liabilities have been recorded on its balance sheet, nor has the subsidiary conducted any operations since inception.
On May 29, 2023, the Company established Raisewise Brazil LTDA as a 95% owned subsidiary under the laws of Brazil. The remaining 5% is owned by an unaffiliated Brazilian entity, MJA Consultoria e Participacoes LTDA, administered by a Brazilian attorney. On October 29, 2025, the Company reimbursed Joseph Richard Moran, our COO, a founder and control shareholder, $100,000 for funds advanced to cover transactions used in the development of the Brazil Crowdfunding platform, which has been recorded on the consolidated balance sheet. To date, the Company has not finalized into a License Agreement or a Platform Management and Maintenance Services Agreement with Raisewise Brazil. No assets or liabilities have been recorded on its balance sheet, nor has the subsidiary conducted any operations since inception.
NOTE 2 – GOING CONCERN
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company generated revenue for the nine months ended February 28, 2026. The Company had a net loss of $17,836,235 for the nine months ended February 28, 2026, and an accumulated deficit of $26,092,449 on February 28, 2026, raising substantial doubt about the ability of the Company to continue as a going concern for a reasonable period. The Company’s continuation as a going concern is dependent upon, among other things, its ability to generate revenues and its ability to obtain capital from third parties. No assurance can be given that the Company will be successful in these efforts.
Management plans to identify adequate sources of funding to provide operating capital for continued growth.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
| F-5 |
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. GAAP and stated in U.S. dollars. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the balances and results for the periods presented. A description of the Company’s significant accounting policies is included in the Company’s audited consolidated financial statements as of May 31, 2025. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2025 Annual Report on Form 10-K, filed with the SEC on November 10, 2025.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Principals of Consolidation
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), and the rules and regulations of the Securities and Exchange Commission (SEC). The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents
The Company accounts for cash and cash equivalents under Accounting Standards Codification (“ASC”) 305, Cash and Cash Equivalents (“ASC 305”) and considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Software Application
Software consists of an internally developed information system for use by the Company to allow individuals to invest in various opportunities as well as present individuals to provide opportunities for potential Investors and accounted for in accordance with ASC 350-40, Intangibles – Goodwill and Other – Internal-Use Software (“ASC 350-40”). Costs incurred up to and including the feasibility stage of development as well as maintenance costs are expensed as incurred. As of February 28, 2026, the software is within the application development phase and all costs are currently capitalized.
Revenue Recognition
The Company recognizes revenue pursuant to Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. This new revenue recognition standard (new guidance) has a five-step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The impact of the Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures and there was no cumulative effect of the adoption of ASC 606.
The Raisewise platform operates as a traditional crowdfunding platform with debt, equity, rewards and donations. Revenues from operations are recognized when payment is tendered. Amounts paid with a credit card are recorded in accounts and other receivables until payment is collected from the credit card processor. There has been no revenue recorded as of February 28, 2026 and February 28, 2025.
Deferred Income Taxes and Valuation Allowance
The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized at, 2021. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s evaluation was performed for twelve months ended May 31, 2025 and the tax years ended May 31, 2024, 2023, 2022 2021 and 2020 for U.S. Federal Income Tax and for the State of Nevada. The Company has net operating loss carry forwards in the amount of approximately $12,220,348 that will expire beginning in 2035. The deferred tax assets including the net operating loss carry forward tax benefit of $4,277,122 which is offset by a valuation allowance. The Company follows the provisions of uncertain tax positions. The Company recognized approximately no increase in the liability for unrecognized tax benefits. The Company has no tax position on February 28, 2026, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.
| F-6 |
Financial Instruments
ASC 820, Fair Value Measurements and Disclosures (ASC “820”) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs that are both significant to the fair value measurement and unobservable.
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of February 28, 2026.The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. The Company does not have any assets or liabilities measured at fair value on a recurring basis.
Convertible Notes
The Company evaluated the convertible note under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging. The conversion feature does not meet the criteria for bifurcation as a derivative due to the illiquid nature of the underlying equity and the absence of a net settlement feature. Accordingly, the entire instrument is accounted for as a liability at amortized cost. The Company uses the effective interest method to amortize the discount over the term of the note.
The Company accounts for debt instruments issued at a discount in accordance with ASC 835-30, Interest – Imputation of Interest, and ASC 470, Debt. The debt discount is amortized over the term of the debt using the effective interest method, which results in a non-linear recognition of interest expense over time. The amortization of the discount is recorded as interest expense in the consolidated statements of operations.
Long-lived Assets
Long-lived assets such as property, equipment and intellectual property are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be recoverable. When required impairment losses on assets to be held and used are recognized based on the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals, if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with the recovery of the assets. The Company’s internally developed intellectual property totaling $88,590, represents the software application designed to support the Company’s crowdfunding business. The application was completed and deemed operational; however, it has not yet been placed into full production or generated revenue The software remains operational and continues to serve as a strategic component of the Company’s business plan. We did not recognize any impairment losses for any periods ended February 28, 2026 and February 28, 2025.
Property and Equipment
The Company follows ASC 360, Property, Plant, and Equipment, for its fixed assets. Equipment is stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets (3 years). On February 28, 2026, and February 28, 2025, the Company did not have any fixed assets.
| F-7 |
Related Parties
The Company follows ASC 850, Related Party Disclosures (ASC 850”) for the identification of related parties and disclosure of related party transactions. On February 28,2026, and May 31, 2025, the amounts due for related party transactions were $3,522 and $240 respectively. The single-related party was a shareholder and officer of the Company and made various advances to cover operating expenses when the Company was short of the required cash flow. Joseph Richard Moran is an officer of Blue-Chip Capital Group, Inc and is the Chief Executive Officer of NM & RM Corporation. During the period ended February 28 ,2026 and February 28, 2025, the Company incurred professional fees for consulting services of $ and $, paid to an officer and to the majority shareholder, respectively.
ASC 718 Compensation – Stock Compensation (“ASC 718”) prescribes accounting and reporting standards for all stock-based payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights may be classified as either equity or liabilities. The Company determines if a present obligation to settle the share-based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial substance or (b) the present obligation is implied because of an entity’s past practices or stated policies. If a present obligation exists, the transaction should be recognized as a liability, otherwise, the transaction should be recognized as equity.
The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 Equity – Based Payments to Non-Employees (“ASC 505-50”). Measurement of share-based payment transactions with non-employees are based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier performance commitment date or performance completion date. For stock-based transactions, February 28,2026, the Company issued shares for services at an established market price of $ discounted. The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 Equity – Based Payments to Non-Employees (“ASC 505-50”). Measurement of share-based payment transactions with non-employees are based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. On September 1, 2025 the Company issued Common restricted shares in connection with services provided under executive agreements with John Driscoll, Lawrence Lonergan and James C DiPrima.
Recently Issued Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update is effective beginning with the Company’s 2025 fiscal year annual reporting period, with early adoption permitted. The adoption of ASU 2023-07 did not have a significant impact on the Company’s consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”) to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and disclosures about income taxes paid. This ASU applies to all entities subject to income taxes. This ASU will be effective for public companies for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures and does not believe it will have a material impact on its consolidated financial statements or its disclosures.
In November 2024, the FASB issued ASU 2024-03, “Income Statement: Reporting Comprehensive Income— Expense Disaggregation Disclosures,” which requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement, as well as disclosures about selling expenses. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
We have reviewed the issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term.
The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.
| F-8 |
NOTE 4– STOCKHOLDERS’ EQUITY
General
The Company’s Articles of Incorporation provide for total authorized capital stock of 410,000,000 shares of which: (i) shares are common stock, par value $ per share; and (ii) shares are preferred stock, par value $ per share.
Series A Preferred Stock
Based upon Board resolutions at the time the Company was re-domiciled in Nevada, the Company is authorized to issue shares of Preferred Stock, at a par value of $ of which shares of Series A Voting Preferred Shares (“Series A Preferred Stock”) were issued to our founders. Our Board has the authority, without further action by the stockholders, to issue up to shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our Board. As of August 31, 2025, there are shares of Series A Preferred Stock authorized, of which shares of Series A Voting Preferred Stock (“Series A Preferred Stock”) are outstanding.
The holders of the Series A Preferred Stock will have full voting rights and powers on all matters subject to a vote by the holders of the Company’s common stock and Series A Preferred Stock shall vote together as a single class with the holders of the Company’s common stock and the holders of any other class or series of shares entitled to vote with the common stock (collectively, the “Voting Capital Stock”), with the holders of Series A Preferred Stock being entitled to sixty eight percent (68%) of the total votes on all such matters regardless of the actual number of shares of Series A Preferred Stock then outstanding, and the holders of Voting Capital Stock and any other shares entitled to vote being entitled to their proportional share of the remaining 32% of the total votes based on their respective voting power.
The Company applies the guidance in ASC 480 – Distinguishing Liabilities from Equity, ASC 470 – Debt, and ASC 815 – Derivatives and Hedging to determine whether financial instruments should be classified as liabilities, equity, or temporary equity. preferred stock without redemption features, that meet the criteria for equity classification under ASC 815-40 are classified as equity. The Company determined the criteria for equity classification for the Series A preferred stock was met.
Unless otherwise declared from time to time by the Board of Directors, out of funds legally available thereof, the holders of shares of the outstanding shares of Series A Preferred Stock shall not be entitled to receive dividends. Holders of Series A Preferred Stock shall not be entitled, as a matter of right, to subscribe for, purchase or receive any part of any stock of the Corporation of any class whatsoever, or of securities convertible into or exchangeable for any stock of any class whatsoever, whether now or hereafter authorized and whether issued for cash or other consideration or by way of dividend by virtue of the Series A Preferred Stock nor shall the shares of Series A Preferred Stock be convertible into shares of the Corporation’s common stock. The shares of Series A Voting Preferred Stock being issued to the Holders are not transferable.
Common Stock
There are shares of Common Stock authorized and at February 28, 2026, there are shares of common stock outstanding. The holders of our Common Stock are: (i) are entitled to receive dividends out of funds legally available if our Board, in its discretion, determines to declare and pay dividends; (ii) are entitled to one vote for each share held, without any cumulative voting for the election of directors; (iii) not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions; and (iv) if we become subject to a liquidation, dissolution or winding-up, are entitled to the assets legally available for distribution to the holders of our Common Stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.
On July 9, 2025, the Company issued a convertible note in the principal amount of $200,000 together with 1,400,000 restricted shares of common stock and 1,200,000 common stock purchase warrants. On 7/21/24, the Company issued a convertible note in the principal amount of $25,000 together with 50,000 restricted shares of common stock. On 7/28/25 the Company issued a convertible note in the principal amount of $10,000 together with 20,000 restricted shares of common stock; and on 8/6/2025, the Company issued a convertible note in the principal amount of $100,000 together with 1,000,000 restricted shares of common stock and 800,000 common stock purchase warrants.
On September 5, 2025, the Company issued a convertible note in the principal amount of $100,000 together with 1,100,000 restricted shares of common stock and 1,000,000 common stock purchase warrants. On September 15, 2025, the Company issued a convertible note in the principal amount of $50,000 together with 400,000 restricted shares of common stock and 200,000 common stock purchase warrants. On October 6, 2025, the Company issued a convertible note in the principal amount of $10,000 together with 20,000 restricted shares of common stock and 20,000 common stock purchase warrants. On October 10, 2025, the Company issued a convertible note in the principal amount of $50,000 together with 400,000 restricted shares of common stock and 200,000 common stock purchase warrants. On November 14, 2025, the Company issued a convertible note in the principal amount of $25,000 together with 200,000 restricted shares of common stock and 100,000 common stock purchase warrants.
On December 1, 2025, the Company issued restricted shares of common stock to note holders as an inducement to the investors to extend their promissory notes. The discount was determined using a Black-Scholes option pricing model based on the following assumptions:
● Stock price at issuance: $
● Expected Terms: years
● Volatility:
● Risk-free interest rate:
● Dividend yield:
On December 9, 2025, the Company issued a convertible note to a private investor in the principal amount of $100,000 and, as an inducement to the investor, the Company issued restricted shares of common stock and common stock purchase warrants. The above convertible note bears interest at 10% per annum and is due nine months from the date of issuance. The warrants issued as part of the convertible note are exercisable for a period of at $0.50 per share. The discount was determined using a Black-Scholes option pricing model based on the following assumptions:
● Stock price at issuance: $
● Expected Terms: years
● Exercise price: $
● Volatility: %
● Risk-free interest rate: %
● Dividend yield:
| F-9 |
During the three months ended February 28, 2026, the Company issued shares of common stock for services rendered. The fair value of the for restricted shares at issuance was $197,556 determined using a discount for lack of marketability. The discount was determined using a Black-Scholes option pricing model based on the following assumptions:
● Stock price at issuance: $
● Expected Terms: years
● Exercise price: $
● Volatility:
● Risk-free interest rate:
● Dividend yield:
Warrants
For accounting purposes, the Company accounts for the Private Placement Warrants (i) in accordance with the guidance contained in ASC 815-40 and (ii) classified as an equity instrument. The fair values of the Private Placement Warrants were accounted for as stock purchases. Since the entries recognize the fair value of the Private Placement Warrants offset within additional paid-in capital,
On August 6, 2025, the Company issued 800,000 warrants in connection with a debt financing arrangement with a private investor. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of 1.25 per share. The warrants are exercisable at any time prior to August 6, 2030. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification. Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments. The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in
the model:
Stock price at issuance: $2.00
Exercise price: $1.25 Expected term: 5 years
Volatility: 117%
Risk-free interest rate: 3.77%
Dividend yield: none
Based on these inputs, the fair value of the warrant was estimated to be $1.70 per warrant, resulting in a total fair value of $93,151. This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
On September 4, 2025 the Company issued 1,000,000 warrants in connection with a debt financing arrangement with a private investor. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of 1.25 per share. The warrants are exercisable at any time prior to September 5, 2030. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification. Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments.
| F-10 |
The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in the model:
Stock price at issuance: $2.00
Exercise price: $1.25 Expected term: 5 years
Volatility:112%
Risk-free interest rate: 3.76%
Dividend yield: none
Based on these inputs, the fair value of the warrants was estimated to be $1.70 per warrant, resulting in a total fair value of $94.444. This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
On September 12, 2025, the Company issued 200,000 warrants in connection with a debt financing arrangement with a private investor. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of 1.25 per share. The warrants are exercisable at any time prior to September 12, 2030. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification. Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments.
The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in the model:
Stock price at issuance: $2.00
Exercise price: $1.25 Expected term: 5 years
Volatility: 112%
Risk-free interest rate: 3.66%
Dividend yield: none
Based on these inputs, the fair value of the warrant was estimated to be $1.70 per warrant, resulting in a total fair value of $43,590. This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
On September 25, 2025, the Company issued 200,000 warrants in connection with a debt financing arrangement with a private investor. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of 1.25 per share. The warrants are exercisable at any time prior to September 25, 2030. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification. Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments.
The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in the model:
Stock price at issuance: $2.00
Exercise price: $1.25 Expected term: 5 years
Volatility: 112%
Risk-free interest rate: 3.68%
Dividend yield: none
Based on these inputs, the fair value of the warrant was estimated to be $1.70 per warrant, resulting in a total fair value of $43,590. This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
On October 5, 2025, the Company issued 20,000 warrants in connection with a debt financing arrangement with a private investor. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of 1.25 per share. The warrants are exercisable at any time prior to October 5, 2030. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification. Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments.
The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in the model:
Stock price at issuance: $2.00
Exercise price: $1.25 Expected term: 5 years
Volatility: 112%
Risk-free interest rate: 3.66%
Dividend yield: none
Based on these inputs, the fair value of the warrant was estimated to be $1.70 per warrant, resulting in a total fair value of $7,727. This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
| F-11 |
On November 12, 2025, the Company issued 100,000 warrants in connection with a debt financing arrangement with a private investor. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of 1.25 per share. The warrants are exercisable at any time prior to November 12, 2030. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification. Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments.
The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in the model:
Stock price at issuance: $2.00
Exercise price: $1.25 Expected term: 5 years
Volatility: 112%
Risk-free interest rate: 3.65%
Dividend yield: none
Based on these inputs, the fair value of the warrant was estimated to be$1.70 per warrant, resulting in a total fair value of $23,288. This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
On September 1, 2025, the Company issued warrants in connection with a services arrangement each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of $.25 per share. The warrants are exercisable for a period of one year. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification.
Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments.
The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in the model:
Stock price at issuance: $
Exercise price: $.25
Expected term: 1 years
Volatility: 106%
Risk-free interest rate: 3.62%
Dividend yield: none
Based on these inputs, the fair value of the warrant was estimated to be $ per warrant, resulting in a total fair value of $88,000. This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
On December 9, 2025, the Company issued 2,000,000 warrants in connection with a debt financing arrangement with a private investor. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of 1.25 per share. The warrants are exercisable at any time prior to December 8, 2030. The warrants were evaluated under ASC 470-20, Debt with Conversion and Other Options, and ASC 815, Derivatives and Hedging, to determine appropriate classification. Based on the terms of the warrants, including fixed exercise price and settlement in a fixed number of shares, the warrants were classified as equity instruments.
The fair value of the warrants at issuance was determined using the Black-Scholes option pricing model, which is considered an appropriate valuation technique under ASC 820, Fair Value Measurement. The following assumptions were used in the model:
Stock price at issuance: $2.00
Exercise price: $.50 Expected term: 5 years
Volatility: 116%
Risk-free interest rate: 3.69%
Dividend yield: none
Based on these inputs, the fair value of the warrant was estimated to be $1.84 per warrant, resulting in a total fair value of $95,238 This amount was recorded as additional paid-in capital in the equity section of the balance sheet.
The total discount recorded for these warrants granted related to these notes was $204,758. The Company recognized amortization of debt discounts in interest expense totaling $546,021 and $0 for the nine months ended February 28,2026 and February 28, 2025 and $190,332 and $0 for the three months ended February 28, 2026 and February 28, 2025, respectively.
| Weighted Average | ||||||||||||
| Weighted | Remaining | |||||||||||
| Warrant Shares | Average | Contractual Term | ||||||||||
| Outstanding | Exercise Price | (in years) | ||||||||||
| Outstanding at May 31, 2025 | 1,467,600 | $ | 1.20 | |||||||||
| Warrants granted | 5,570,000 | $ | 1.25 | |||||||||
| Warrants exercised | ||||||||||||
| Warrants expired | (667,600 | ) | ||||||||||
| Outstanding at February 28, 2026 | 6,370,000 | 1.27 | ||||||||||
| Exercisable at February 28, 2026 | 6,370,000 | |||||||||||
As of February 28,2026, there were 6,370,000 warrants outstanding with a weighted average exercise price of $ a weighted average remaining expiration period of approximately years and intrinsic value of . There were additional warrants issued and warrants expired during nine months ended February 28,2026.
| F-12 |
NOTE 5 - CONVERTIBLE NOTES
During the period from June 1, 2025, through February 28, 2026, the Company issued and sold to eleven convertible notes to private investors as follows:
1. 7/09/2025 in the principal amount of $200,000;
2. 8/06/2025 in the principal amount of $100,000;
3. 7/22/2025 in the principal amount of $25,000;
4. 7/29/2025 in the principal amount of $10,000;
5. 9/5/2025 in the principal amount of $100,000;
6. 9/15/2025 in the principal amount of $50,000;
7. 10/6/2025 in the principal amount of $10,000;
8. 10/10/2025 in the principal amount of $50,000;
9. 10/29/2025 in the principal amount of $250,000;
10. 11/14/2025 in the principal amount of $25,000; and
11. 12/09/2025 in the principal amount of $100,000.
The Company agreed to issue to each of these investors as inducement restricted shares of the Company’s common stock resulting in the issuance of 6,890,000 shares of common stock. The discount arose from the warrants being issued in conjunction with the debt, with the value being amortized over the term of the debt. These notes are convertible beginning 180 days after issuance at a fixed conversion price of $0.50 per share. None of the notes were converted at the period ended February 28, 2026, or the year ended May 31, 2025.
The Total of Convertible Notes was $1,285,000 and $650,000 at February 28 ,2026, and May 31, 2025, respectively.
The Convertible Notes bear interest at 10% per annum, are due nine (9) months from the Issue Date and are convertible into shares of common stock at a conversion price of $0.50 per share.
The Company recorded interest expense of $36,704 and $0 for the three months ending February 28, 2026, and February 28, 2025, respectively.
NOTE 6 – NOTES PAYABLE
On May 13, 2025, the Company issued a non-convertible unsecured note to a private investor in the amount of $35,000 with repayment in the amount of $40,000, including fixed interest of $5,000, due on December 13, 2025. As additional consideration, the Company agreed to issue this investor 50,000 common stock purchase warrants exercisable at $.75 per share on or after December 13, 2025, for a period of seven months. The investor agreed to extend the due date of this note to June 13, 2026.
On June 16, 2025, the Company issued to the same private investor as the May 19, 2025 note a non-convertible promissory note in the principal amount of $35,000 with repayment in the amount of $40,000, including fixed interest of $5,000, due on January 16, 2026. As additional consideration, the Company agreed to issue this investor a common stock purchase warrant exercisable to purchase a total of 50,000 shares of common stock at an exercise price of $0.75 per share from and after the maturity date for a period of seven months. The investor agreed to extend the due date of the note to July 16, 2026.
On October 29, 2025, the Company issued a non-convertible note to a private investor in the amount of $250,000, providing for repayment in the amount of $40,000 per month, commencing on May 1, 2026 through November 30, 2026. As an inducement, the Company issued this investor restricted shares of common stock.
NOTE 7– SUBSEQUENT EVENTS
Subsequent events were evaluated through April 14, 2026, which is the date the financial statements were available to be issued.
On April 10, 2026, the private investor agreed to extend the due dates on May 13, 2025 and June 16, 2025 notes from December 13, 2025, and January 16, 2026, to June 13, 2026, and July 16, 2026, respectively. In consideration for these April 10, 2026 extensions, the Company agreed to increase the fixed interest from $5,000 to $10,000 on both notes and agreed to issue to this investor restricted shares of common stock on both notes. As of the date of this Report, the additional 100,000 restricted shares have not been issued to this investor.
On April 14, 2026, the Company issued the restricted shares of common stock to the private investor pursuant to the terms of the December 9, 2025 convertible note in the principal amount of $100,000.
The issuances of restricted shares to private accredited investors were made in reliance upon Rule 506(b) of Regulation D promulgated by the SEC under the Act.
| F-13 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Management’s Plan of Operation.
The following discussion should be read in conjunction with our consolidated financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. When the words “believe,” “expect,” “plan,” “project,” “estimate,” and similar expressions are used, they identify forward-looking statements. These forward-looking statements are based on management’s current beliefs and assumptions and information currently available to management, and involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed with the Securities and Exchange Commission (“SEC”). The forward-looking statements included in this report are made only as of the date of this report. We disclaim any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise.
Blue Chip Capital Group, Inc., a Nevada corporation (the “Company”) owns subsidiaries that operate independently but are accretive to one another under the name Raisewise. We have established a portfolio of wholly and majority owned subsidiaries in different foreign jurisdictions to provide crowdfunding services in their respective markets, as follows: (i) Raisewise USA, Inc., a 100% owned New York corporation; (ii) Raisewise Sweden AB, an 80% owned Swedish entity; (iii) Raisewise Morocco SARL, a 100% owned Moroccan entity; and (iv) Raisewise Brasil LTDA, a 95% owned Brazilian entity.
The Company has yet to generate revenue from its operations during the fiscal year ended May 31, 2025, nor through the nine-month period ended February 28 ,2026, and it has not had any revenue since inception November 27, 2019. In order for the Company to continue to fund its business operations and establish operations and grow the operations of its subsidiaries through the next 12 months, it may be required to: (1) successfully raise capital from its pending registration statement, declared effective by the SEC on December 1, 2023, which must be updated with a post-effective amendment to be filed with and declared effective by the SEC; and (2) continue to raise through capital infusions through the issuance of other equity or debt securities, of a minimum of $2 ,000,000 or more. There can be no assurance that the Company will be able to successfully raise such funds at terms and conditions that are satisfactory, or at all.
The Company incurred a net loss for the three months ending February 28, 2026, and February 28, 2025, of ($3,166,240) and ($1,377,044), respectively. Cumulative losses from inception through February 28, 2026, are $(25,552,788). The Company has negative working capital as of February 28, 2026 of $(1,800,272).
During the three and nine months ended February 28, 2026, the Company raised $100,000 and $955,000 from the sale of convertible notes to third-party accredited investors, as compared to $530,000 and $565,000 during the three and nine month periods of the prior year. The issuance and sales of convertible notes and restricted securities to private accredited investors were made in reliance upon Rule 506(b) of Regulation D promulgated by the SEC under the Act.
While the Company reasonably believes that it will be able to continue to raise capital from sales to third-party investors as well as from advances from related parties, the Company has no current arrangements or commitments from third-party investors or related parties nor can there be any assurance that the Company will be able to continue to support its operations through private offerings of its debt or equity securities or advances from related parties on a long term basis.
Results of Operations for the Three Months Ended February 28, 2026, compared to the Three Months Ended February 28, 2025.
Operating Expenses
Operating expenses incurred for the three months ended February 28, 2026, were $3,470,680 compared to operating expenses of $1,286,219 for the three months ended February 28, 2025, an increase of $2,184,461 which is principally due to the increased legal and accounting fees related to the Company’s reporting obligations under the Securites Exchange Act of 1934, following the SEC having declared effective the Company’s registration statement under the Act on December 1, 2025, in addition to stock-based inducement expenses and stock-based compensation.
Liquidity and Capital Resources
On February 28, 2026, the Company had a working capital deficit of ($1,800,272) compared to a working capital surplus of $17,313 at February 28, 2025.
| 4 |
The Company used $955,353 in operating activities for the nine months ended February 28, 2026. compared to $567,993 during the same period of the prior year. The increase is due to general and administrative expenses related to legal and accounting fees during the nine months ended February 28, 2026, as discussed under Operating Expenses above.
The Company received $955,000 provided by financing activities during the nine months ended February 28, 2026, compared to $566,000 provided by financing activities during the nine months ended February 28, 2025. The increase is due to the issuance of shares of equity and issuance and sale of convertible debt during the nine months ended February 28, 2026.
Off-Balance Sheet Arrangements.
The Company does not have any off-balance sheet arrangements at this time.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are a emerging growth company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information necessary under this item.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures Rules adopted by the SEC pursuant to Section 404a of the Sarbanes-Oxley Act of 2002 require annual assessment of our internal controls over financial reporting and an annual management report on the effectiveness of controls over financial reporting.
When evaluating our internal control over financial reporting, we may identify material weaknesses and significant deficiencies. A “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.
As of the Company’s fiscal year ended May 31, 2025, and the three month period ended February 28, 2026, our Chief Executive Officer and Chief Financial Officer concluded that our controls and procedures over financial reporting and disclosures were not effective, due to material weaknesses in our internal control over financial reporting The identified material weaknesses relate to a lack of financial reporting close controls in place to ensure that all material transactions and developments impacting the financial statements are appropriately reflected in accordance with U.S. GAAP, including non-routine and complex accounting issues; a lack of segregation of duties in the financial reporting process; and insufficient personnel with the required skill and experience to complete the financial reporting close process. Our management and board of directors are reviewing the material weaknesses described above and developing a plan to remediate and enhance our overall control environment. In order to maintain and improve the effectiveness of its internal control over financial reporting, our efforts to remediate our material weaknesses will include:
● hiring additional accounting personnel, including those with public company experience;
● providing additional training for our personnel on internal controls over financial reporting;
● implementing additional controls and processes, including those that operate at a sufficient level of precision or that evidence performance;
● adopting processes and controls to better identify and manage segregation of duties; and
● potentially engaging an external advisor to assist with evaluating and documenting the design and operating effectiveness of internal controls and assisting with the remediation of deficiencies, as necessary.
Designing and implementing an effective financial reporting system is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to devote significant resources to maintain a financial reporting system that adequately satisfies our reporting obligations. The remedial measures that we intend to take may not fully address the material weaknesses that we have identified, and we may identify other material weaknesses in our internal control over financial reporting in the future.
Changes in Internal Controls There were no changes in the Company’s internal controls over financial reporting that occurred during the quarter ended February 28, 2026, that have materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.
Internal control systems, no matter how well designed and operated, have inherent limitations. Therefore, even a system which is determined to be effective cannot provide absolute assurance that all control issues have been detected or prevented. Our systems of internal controls are designed to provide reasonable assurance with respect to financial statement preparation and presentation.
| 5 |
PART II: OTHER INFORMATION
Item 1 - Legal Proceedings
We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
Item 1a – Risk Factors
The following risk factors should be considered in connection with an evaluation of our business as described above and our Plan of Operations as described in our Registration Statement:
In addition to other information in this Quarterly Report, the following risk factors should be carefully considered in evaluating our business because such factors may have a significant impact on our business, operating results, liquidity and financial condition. As a result of the risk factors set forth below, actual results could differ materially from those projected in any forward-looking statements. Additional risks and uncertainties not presently known to us, or that we currently consider to be immaterial, may also impact our business, result of operations, liquidity and financial condition. If any such risks occur, our business, operating results, liquidity and financial condition could be materially affected in an adverse manner. Under such circumstances, if and when a trading market for our securities is established, the trading price of our securities could decline, and you may lose all or part of your investment.
Risks Related to our Financial Condition
We are dependent upon the success of our IPO under the registration statement declared effective by the SEC;
The Company’s is dependent upon the success of its initial public offering (IPO) under a registration statement on Form S-1 that was declared effective by the SEC on December 1, 2023. In order to raise these proceeds under our effective IPO registration statement, we will file a post-effective amendment to this registration statement or, in the alternative, file a new registration statement that either of which must be reviewed by the SEC prior to its being declared effective. The IPO is a best effort offering of Units , at an offering price of $2.00 per Unit. We are seeking to raise gross proceeds of up to $20,000,000 from the sale of the Units, not including an additional $25,000,000 if all of the Warrants were exercised at the warrant exercise price of $2.50, of which there can be no assurance. The Company presently plans that the net proceeds from the IPO, after placement agent fees, if any, and other expenses, will be used principally to: (i) expand our crowdfunding operations, including opening in new markets, in addition to the United States, Sweden, Morocco and in Brazil and elsewhere in Europe; (ii) for working capital and general corporate purposes; (iv) fund the $7 million acquisition of US Petrochemical pursuant to a letter of intent dated August 24, 2024, as reported in the Company’s Form 8-K/A filed with the SEC on September 11, 2024, subject to the mutual agreement between the Company and US Petrochemical to waive the January 31, 2025 termination date; and (v) fund growth initiatives, including other potential future acquisitions.
Our Independent Registered Public Accounting Firm has expressed substantial doubt as to our ability to continue as a going concern.
The audited financial statements have been prepared assuming that we will continue as a going concern and do not include any adjustments that might result if we cease to continue as a going concern. We believe that to continue as a going concern we will need at least $2,000,000 per year simply to cover the general and administrative expenses, including legal and accounting fees, among others, based upon our general and administrative expenses of approximately $265,000 and $1,125,000 for the three and nine month periods ended February 28, 2026. We plan to fund these expenses primarily through cash flow from operations, if and when we generate positive cash flow, of which there can be no assurance, the sale of restricted shares of our Common Stock, and the issuance of convertible notes, advances from founders as well as funds raised from the offering, if successful, subject to our filing of a post-effective amendment being declared effective by the SEC, of which there can be no assurance. At present, we have no commitments from our founders to advance funds nor any commitments from third-party accredited investors to invest in the Company’s convertible notes.
Based on our audited financial statements for the fiscal years ended May 31, 2025, and 2024, and our interim financial statements for the period ended February 28, 2026, our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern. To date we have not generated any revenue from operations and have had to rely on the infusion of capital from our founders as well as the sale of debt and equity securities. There can be no assurance that we will, in fact, generate revenue in the near term, if ever, notwithstanding our expectations, nor can there be any assurance that we will be able to continue to raise funds from the sale of debt or equity securities to private investors.
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We may need to raise additional capital to fund continuing operations and an inability to raise the necessary capital or to do so on acceptable terms could threaten the success of our business.
To date, our operations have been funded entirely from the proceeds from the sale of debt and equity to private accredited investors and from loans from our management and founders. We currently anticipate that our available capital resources will be insufficient to meet our expected working capital and capital expenditure requirements for the near future. We anticipate that we will require an additional $2,000,000 during the next twelve months to fulfill our business plan, not including the $7,000,000 in funds necessary close the acquisition of US Petrochemical, if and when we renegotiate the definitive agreement, of which there can be no assurance.
However, such resources may not be sufficient to fund the long-term growth of our business. If we determine that it is necessary to raise additional funds, we may choose to do so through strategic collaborations, licensing arrangements through our “White Labeling” (defined herein as our source code and intellectual property) strategy, public or private equity or debt financing, a bank line of credit, or other arrangements, none of which can there be any assurance.
The Company is a holding company that owns intellectual property developed by Raisewise USA and held nominally by its wholly owned and majority owned subsidiaries, Raisewise Sweden, Raisewise Morocco and Raisewise Brazil. This intellectual property consists primarily of source code, maintenance contracts, the Raisewise brand and trademark and associated technologies. The Company hopes to monetize its intellectual property, potentially through franchise contracts, but has not established any franchise relationships nor is it in any negotiations to that end. By owning the source code, the Company hopes to be able to develop new platforms and opportunities, including White Labeling opportunities, worldwide but there is no assurance that the Company will have sufficient capital resources to pursue such efforts.
We have a very limited operating history; it is difficult to evaluate our business and future prospects and increases the risks associated with investment in our securities.
We only have a very limited history and only limited business operations to date, principally related to start-up and formation of our Raisewise USA subsidiary’s operations as well as our subsidiaries in Sweden, Morocco and Brazil. We have submitted Raisewise USA’s application to FINRA, which application is being updated to meet FINRA’s dedicated page platform requirements. Similar filings are required for crowdfunding approvals in Sweden, Morocco and Brazil from their countries’ respective regulatory authorities. Investors should be aware of the difficulties, delays, and expenses normally encountered by an enterprise in its early stage, many of which are beyond our control, including unanticipated research and development expenses, employment costs, and administrative expenses. We cannot assure any potential investors that our proposed business plans will materialize or prove successful. Given our limited operating history, we may be unable to effectively implement our business plan execute our plan, including our plan to acquire an operating company, which could materially harm our business or cause us to scale down or cease operations.
Risks Related to our Business
Our Independent Registered Public Accounting Firm has expressed substantial doubt as to our ability to continue as a going concern.
The audited financial statements have been prepared assuming that we will continue as a going concern and do not include any adjustments that might result if we cease to continue as a going concern. We believe that to continue as a going concern we will need approximately $2,000,000 or more per year simply to cover the administrative, legal and accounting fees. We plan to fund these expenses primarily through cash flow from operations, if and when we generate positive cash flow, of which there can be no assurance, the sale of restricted shares of our Common Stock, and the issuance of convertible notes, as well as funds raised from our IPO if successful, of which there can be no assurance, which offering will not commence until the Company’s planned post-effective amendment to its Registration Statement is filed with and declared effective by the SEC.
Based on our audited financial statements for the fiscal years ended May 31, 2025 and 2024, our independent registered public accounting firms have expressed substantial doubt as to our ability to continue as a going concern. To date we have not generated any revenue from operations and have had to rely on the infusion of capital from our founders and private investors, from time to time. There can be no assurance that we will, in fact, generate revenues from operations in the near term, if ever, notwithstanding our expectations.
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We may need to raise additional capital to fund continuing operations and an inability to raise the necessary capital or to do so on acceptable terms could threaten the success of our business.
We are a development stage company and since inception, have suffered losses from development stage activities to date, are dependent upon the success of our capital raise from our IPO, subject to a post-effective amendment being filed with and declared effective by the SEC, of which there can be no assurance, in order to fulfill our business plan. We have experienced net losses in each fiscal quarter since our inception and as of the quarterly period ended February 28, 2026, have an accumulated deficit of $25,552,788.
We have only very limited operations, have not generated any revenues and need additional capital to fund our activities.
We currently have not commenced any significant active operations in any of our subsidiaries and expect to continue to incur losses for the foreseeable future. Unless we can be successful in starting Crowdfunding operations and raise the capital necessary to complete the acquisition of US Petrochemical, assuming we successfully negotiate an extension of our letter of intent with US Petrochemical, of which there can be no assurance notwithstanding any positive communications to that end that we have had with representatives of US Petrochemical, we will not generate any revenues in the near term and we will continue to incur expenses related to our reporting obligations under the Securities Exchange Act of 1934. We will need to raise additional funds and such funds may not be available on commercially acceptable terms, if at all. If we cannot raise funds on acceptable terms, we may not be able to continue to execute our business plan, including our plan to acquire an operating company, and may be required to cease operations.
We are dependent upon ability to successfully negotiate an extension of our binding letter of intent with US Petrochemical because we did not close the acquisition by January 31, 2025.
On August 28, 2024, the Company and US Petrochemical entered into a Binding Letter of Intent providing for the acquisition by the Company of 100% of the capital stock of US Petrochemical for cash consideration of $7,000,000 payable by January 31, 2025. The Binding Letter of Intent further provided that the closing of the acquisition was subject to the review and approval by the Company of the audited and interim financial statements of US Petrochemical as well as receipt by the Company of necessary documentation and information to conduct its due diligence.
The Company did not complete the acquisition by January 31, 2025, and the Company received a letter from US Petrochemical of this failure. However, the Company did not receive the financial statements and other information to conduct and conclude the agreed due diligence. The Company has had communications with representatives of US Petrochemical with respect to the Company’s continued interest to close the acquisition, upon conclusion of due diligence and subject to the Company’s ability to fund the acquisition either from the proceeds of the IPO offering or other funding, the terms of which are to be determined, of which there can be no assurance.
In the event we are required to register as a broker-dealer, our business model could be harmed.
Under our current structure, we believe we are not required to register as a broker-dealer under federal and state laws. We must comply with the rules surrounding crowdfunding portals and restrict our activities and services so as to not be deemed a broker-dealer under state and federal regulations. However, if we were deemed by a relevant authority to be acting as a broker-dealer, we could be subject to a variety of penalties, including fines and rescission offers. Further, we may be required to register as a broker-dealer, which would increase our costs, especially our compliance costs. If in those circumstances we decided not to register as a broker-dealer or act in association with a broker-dealer in our transactions, we may not be able to continue to operate under our current business model.
Our compliance is focused on U.S. laws and we have not analyzed foreign laws regarding the participation of non-U.S. residents.
Some of the investment opportunities posted on our platform are open to non-U.S. residents. We have not researched all the applicable foreign laws and regulations, and therefore we have not set up our structure to be compliant with all those laws. It is possible that we may be deemed in violation of those laws, which could result in fines or penalties as well as reputational harm. This may limit our ability in the future to assist companies in accessing money from those investors, and compliance with those laws and regulation may limit our business operations and plans for future expansion.
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Raisewise’s Crowdfunding products and services are relatively new in an industry that is still quickly evolving.
The principal securities regulations that our Crowdfunding operations will be subject to, Regulation A and Regulation Crowdfunding, have only been in effect in their current form since 2015 and 2016, respectively. Raisewise’s ability to establish a presence and compete in these markets remains uncertain as potential issuer companies may choose to use different platforms or providers (including, in the case of Regulation A, using their own online platform), or determine alternative methods of financing. Investors may decide to invest their money elsewhere. Further, our potential market may not be as large, or our industry may not grow as rapidly, as anticipated. With a smaller market than expected, we may have fewer customers. Success will likely be a factor of investing in the development and implementation of marketing campaigns, subsequent adoption by issuer companies as well as investors, and favorable changes in the regulatory environment.
Our future success is largely dependent on our current management.
Our business was built by the vision, dedication, and expertise of our executive officers and board of directors, who are responsible for our day-to-day operations and creative development. Our success is dependent upon the continued efforts of these people. If it became necessary to replace them, it is unlikely new management could be found that would have the same level of knowledge and dedication to our success. The loss of the services of these professionals, especially in the development of future proprietary software, patents, or applications, would adversely affect our business.
We are a controlled company; our COO a “Control Person” and the Company will be a “Controlled Company.”
A “controlled company” refers to a company controlled by another entity or another person by owning more than 50% of the total voting shares. A “Control Person” means any Person or Persons (as defined under Section 2(a)2 of the Act) that possesses directly or indirectly, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or contract or otherwise. Joseph Richard Moran, our Chief Operating Officer and a founder, and who is married to Shani Moran, a director, is the control person of NM & RM Corp. and Titan Ventures, Inc., which respectively own 28,125,000 shares and 25,000,000 shares (or a combined total of 53,125,000 shares) of the Company’s 96,486,900 presently outstanding shares of Common Stock, representing approximately 54% of the outstanding Common Stock. In addition, RN & NM Corp. and Titan Ventures, Inc. each owns 333,333 shares of Series A Preferred Stock, representing 66 and 2/3% of the 999,999 outstanding shares of Series A Preferred Stock. The holders of the shares of Series A Preferred Stock are entitled to sixty-eight (68%) percent of the total votes on all such matters subject to stockholder vote, regardless of the actual number of shares of Series A Voting Preferred Stock then outstanding. As a result. Mr. Moran is deemed to be a “Control Person” of the Company, as defined under Section 2(a)2 of the Act.
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds
During the period from June 1, 2025 through February 28, 2026, the Company issued and sold convertible notes to ten credited investors as follows:
1: 7/09/2025 in the principal amount of $200,000;
2: 8/06/2025 in the principal amount of $100,000;
3: 7/22/2025 in the principal amount of $25,000;
4: 7/29/2025 in the principal amount of $10,000;
5: 9/5/2025 in the principal amount of $100,000;
6: 9/15/2025 in the principal amount of $50,000;
7: 10/6/2025 in the principal amount of $10,000;
8: 10/10/2025 in the principal amount of $50,00;
9: 10/29/2025 in the principal amount of $250,000;
10: 11/14/2029 in the principal amount of $25,000; and
11. 12/9/2025 in the principal amount of $100,000.
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In connection with the issuance of these convertible notes, the Company agreed to issue to these private accredited investors as inducement a total of 10,890,000 restricted shares of common stock. These shares were issued in reliance upon Rule 506(b) of Regulation D promulgated by the SEC under the Act.
See the complete disclosure contained in Note 5-Convertible Notes to the Notes to Consolidated Unaudited Financial Statements, above.
Item 3 - Defaults Upon Senior Securities
None.
Item 4 - Mine Safety Disclosures
None.
Item 5 - Other Information
None
Item 6 - Exhibits
The following exhibits are filed with this Report or incorporated by reference:
| 3.1 | Articles of Incorporation * | |
| 3.2 | By-Laws * | |
| 31.1 | Certification of Chief Executive Officer | |
| 31.2 | Certification of Chief Financial Officer | |
| 32.1 | Certifications of Chief Executive Officer | |
| 32.2 | Certifications of Chief Financial Officer | |
| 101.INS | Inline XBRL Instance Document# | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema# | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase# | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase# | |
| 101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase# | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase# | |
| 104 | Cover Page Interactive Data File (Embedded within the Inline XBRL document) |
* - Previously filed with our Form S-1 registration statement submitted to the SEC on August 7, 2023.
# The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized.
BLUE CHIP CAPITAL GROUP, INC.
(Registrant)
| By: | /s/: James Charles DiPrima | |
| Name: | James Charles DiPrima | |
| Title: | CEO, Principal Executive Officer and Principal Financial Officer | |
| Dated: | April 20, 2026 |
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