NMEX 10-K & 10-Q changes, risk factors and insider trading

Officer compensation was $26,400$27,600 and $39,150$26,400 for the years ended July 31, 20242025 and 2023,2024, respectively, aan decreaseincrease of $12,750$1,200 or 32.6%.4.5%. WeOfficer’s incurcompensation is paid to our CFO and has increased $200 a monthlymonth compensation expense of $2,200 for our CFO. Inin the priorcurrent fiscal year, we also recognized an additional $12,750 for stock compensation expense.period.

Consulting – related party services were $76,700$75,450 and $72,000$76,700 for the years ended July 31, 20242025 and 2023,2024, respectively, ana increasedecrease of $4,700$1,250 or 6.5%.1.6%. Fees are paid to Noel Schaefer, Director, but are billed as consulting fees. InFor the currentyears yearended July 31, 2025 and 2024, we alsopaid incurredan $4,700additional of$3,450 consutlingand fees$4,700, fromrespectively, Mr.to Webb.our CEO for consulting fees.

Professional fees were $33,850$81,770 and $27,150$33,850 for the years ended July 31, 20242025 and 2023,2024, respectively, an increase of $6,700,$47,920, or 24.7%.141.6%. Professional fees generally consist of legal and audit expenses. In the current year our audit and legal fees increased $6,000approximately and $700, respectively.$48,000.

General and administrative expenses were $21,936$50,758 and $32,159$21,936 for the years ended July 31, 20242025 and 2023,2024, respectively, aan decreaseincrease of $10,223$28,822 or 31.8%.131.4%. In the current periodyear awe majorityhad an increase of the$9,000 decreasefor wasweb due to decreaseddesign fees and we issued common stock for ourservices transfervalued agentat of $7,218 and State fees of $1,500.$19,000.

Other expenseincome / expenses

During the yearyears ended July 31, 2025 and 2024, we incurred $12,254 and $11,454 of interest expense.expense, increase of $800 or 7%. During the year ended July 31, 2023,2025, we had total other income of $205,207. We incurred interest expense of $7,192,recognized a $4,700 gain on forgivenessextinguishment of debt of $210,453, and othera incomeloss for impairment of $1,946.$140,744.

For the year ended July 31, 2024,2025 we had a net loss of $170,340$383,612 compared to net income of $23,498$170,340 for year ended July 31, 2023.2024. WeThe recognizedincrease to our net incomeloss is mainly attributed to our increase in theprofessional priorfee year due toand the gain on forgivenessrecognition of debtthe asimpairment discussed above.loss.

Net cash provided by financing activities was $152,500 for the year ended July 31, 2025 compared to $213,625 for the year ended July 31, 20242024. compared to $127,000 forDuring the year ended July 31, 2023.2025, we received $35,000 from the sale of common stock from a related party, $135,000 of loans from a related party, $125,000 from a third party and we repaid $30,000 of a note payable. During the year ended July 31, 2024, we received $213,625 from the sale of common stock, $125,000 of which was from a related party. During the year ended July 31, 2023, we received $120,000 from the sale of common stock. We also received $7,000 from a loan payable.

On June 1, 2023, the Company issued a Promissory Note to Golden Sands Exploration Inc, for $85,000. The note bears interest at 6% and matures on June 1, 2026. Interest is to be paid quarterly with the first payment due on or before September 1, 2023. As of July 31, 2024, there is $886 of interest accrued on this note.

Results of Operations for the Three Months Ended JanuaryApril 31,30, 2026 Compared to the Three Months Ended JanuaryApril 31,30, 2025

For the three months ended JanuaryApril 31,30, 2026, we recognized $9,454$8,382 of revenue and $7,563$6,706 of expense for a gross margin of $1,891.$1,676. We began torecognizing recognized our first revenuesrevenue from the sale of oil and natural gas from itsour investment in Lost Creek Acquisitions LLC (Note 4) during the fourth quarter of fiscal year 2025. We did not recognize any revenue for the three months ended JanuaryApril 31,30, 2025.

Officer compensation was $16,300$7,500 and $6,600$7,200 for the three months ended JanuaryApril 31,30, 2026 and 2025, respectively, an increase of $9,700$300 or 147%.4.2%. Officer’s compensation is paid to our CFO and has increased since the prior period. In addition, during the current period the Company granted 50,000 shares of common stock for services, for total non-cash expense of $8,700.

Director compensation was $17,400 and $0 for the threenine months ended JanuaryApril 31,30, 2026 and 2025, respectively, On January 7, 2026, the Company granted 100,000 shares of common stock to Berhane Tewolde, Director, for services. The shares were valued at $0.174, the closing price on the date of grant, for total non-cash expense of $17,400.

Consulting – related party services were $18,000$54,000 and $19,400$56,650 for the threenine months ended JanuaryApril 31,30, 2026 and 2025, respectively, a decrease of $1,400$2,650 or 7.2%.4.7%. Fees are paid to Noel Schaefer, Director, but are recorded as consulting fees. In the prior period we also paid $1,250 to our former CEO.

Professional fees were $21,544$77,448 and $5,500$57,246 for the threenine months ended JanuaryApril 31,30, 2026 and 2025, respectively, an increase of $16,044$20,202 or 291.7%.35.3%. Professional fees generally consist of legal and audit expenses. The increase is due to an increase in legal fees.

General and administrative expenses were $30,976$37,914 and $4,899 for$41,331for the threenine months ended JanuaryApril 31,30, 2026 and 2025, respectively, ana increasedecrease of $26,077$3,417 or 532.3%.8.3%. In the current period we issued shares of common stock for services valued at $17,300. WeIn alsothe spentprior $9,500 on website development expenses thatperiod we didissued notshares incurof incommon thestock currentfor period.services valued at $19,000.

During the threenine months ended JanuaryApril 31,30, 2026 and 2025, we had total other expenses of $7,728.$18,172. We had interest expense of $4,571$14,253 and we recognized an unrealized loss on the value of our Bitcoin asset of $3,157.$3,919. In the prior period we had interest expense of $2,936.$9,232. The increase in interest expense is in conjunction with an increase in our loan payable balance.

For the sixnine months ended JanuaryApril 31,30, 2026, we had a net loss of $173,265$232,258 as compared to a net loss of $116,797$184,859 for the sixnine months ended JanuaryApril 31,30, 2025, an increase to our net loss of $56,458$47,399 or 48.4%.25.6%. The increase is due to the reasons discussed above.

Cash used by operating activities was $135,340$187,236 for the sixnine months ended JanuaryApril 31,30, 2026. Cash used for operating activities was $82,652$133,907 for the sixnine months ended JanuaryApril 31,30, 2025.

Net cash used by investing activities was $42,139 for the sixnine months ended JanuaryApril 31,30, 2026, for the purchase of Bitcoin. There was no investing activity inDuring the priornine period.months ended April 30, 2025, the Company used $12,500 for the purchase of oil and gas rights.

Net cash provided by financing activities was $182,000$242,000 for the sixnine months ended JanuaryApril 31,30, 2026. We received $182,000$242,000 from related party loans. There was no financing activity in the prior period. Net cash provided by financing activities was $60,000$125,000 for the sixnine months ended JanuaryApril 31,30, 2025. We received $25,000$90,000 from a related party loanloans and $35,000 from the sale of common stock to our former directors.

We had the following loans outstanding as of JanuaryApril 31,30, 2026:

On April 16, 2017, the Company executed a promissory note for $15,000 with a third party. The note matures in two years and interest is set at $3,000 for the full two years. As of JanuaryApril 31,30, 2026, there is $15,000 and $11,625$12,000 of principal and accrued interest, respectively, due on this loan. This loan is currently in default.

On June 1, 2023, the Company issued a Promissory Note to Golden Sands Exploration Inc, for $85,000. The note bears interest at 6% and matures on June 1, 2026. Interest is to be paid quarterly with the first payment due on or before September 1, 2023. As of JanuaryApril 31,30, 2026, there is $85,000 and $850 of principal and accrued interest, respectively, due on this loan.

The Company has a line of credit (“LOC”) with Mr. Miranda, a former director, for up to $500,000. The LOC bears interest at 5% to be paid quarterly and matures in five years. As of JanuaryApril 31,30, 2026, there is $317,000$377,000 and $7,092$11,368 of principal and accrued interest, respectively, due on the LOC.