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

SUN Inc. (the “Company”) was incorporated in the State of Wyoming on September 5, 2024. The Company is focused on the development and production of immersive virtual reality experiences and related digital media content. In addition, the Company provides platform implementation and configuration, audiovisual production, advertising, promotional, and consulting services associated with creative production and brand development.services.

SixNine Months Ended AprilJuly 30,31, 2026 Compared to SixNine Months Ended AprilJuly 30,31, 2025

Revenue for the sixnine months ended AprilJuly 30,31, 2026 was $16,151,$69,537, compared to $54,500$57,833 for the sixnine months ended AprilJuly 30,31, 2025.

Revenue during the current period was derived primarily from platform attributableimplementation toand configuration services, audiovisual production services, creativeadvertising mediaand production activities, advertisingpromotional services, and other consulting activities.

The decreaseincrease in revenue compared towith the prior-year period was primarily attributable to the recognitiontiming and composition of $50,000services of revenue under a partnership and advertising agreement during the prior-year period. No comparable revenue recognition event occurredperformed during the current period.

Cost of revenue for the sixnine months ended April 30,July 31, 2026 was $4,500, compared to $0 during the comparable prior-year period.

Cost of revenue during the current period consisted primarily consisted of editing, post-production, and other direct production costs associated with audiovisual production services.

Gross profit for the sixnine months ended AprilJuly 30,31, 2026 was $11,651,$65,037, compared to $54,500$57,833 during the comparable prior-year period.

The decreaseincrease in gross profit was primarily attributable to lower overallhigher revenue levels during the current periodperiod, andpartially theoffset inclusion ofby direct production costs associated with revenue-generating projects.costs.

Operating expenses for the sixnine months ended AprilJuly 30,31, 2026 were $23,845,$45,974, compared to $18,468$25,953 for the sixnine months ended AprilJuly 30,31, 2025.

The increase in operating expenses was primarily attributable to higher general and administrative expenses, professional service fees, public company compliance costs,expenses, and interest expense associated withduring financingthe activitiescurrent and ongoing operational development.period.

The Company reported a net lossincome of $12,194$19,063 for the sixnine months ended AprilJuly 30,31, 2026, compared to net income of $36,032$31,880 during the comparable prior-year period.

The decreaseincrease in resultsoperating of operationsexpenses was primarily attributable to lowerhigher revenue levels, increased operating expenses,general and higheradministrative financing-relatedexpenses costsand professional service expenses during the current period.quarter.

As of AprilJuly 30,31, 2026, the Company had cash and cash equivalents of $63, compared to $8,856 as of October 31, 2025.

Net cash provided by operating activities for the sixnine months ended AprilJuly 30,31, 2026 was $11,207,$10,507. comparedThe toCompany’s netoperating cash used in operating activities of $18,895flows during the comparableperiod prior-yearreflected its results of operations, period.changes in working capital, and related-party advances.

During the sixnine months ended AprilJuly 30,31, 2026, the Company received $16,927additional in additionalcash advances from related parties, a portion of which was usedparties to support operatingits activities, public company compliance costs,operations and deferredworking offering-relatedcapital expensesrequirements. associatedAs withof DTCJuly 31, eligibility2026, no short-term related-party advances were outstanding, and marketlong-term preparationrelated-party activities.advances totaled $38,886.

As of AprilJuly 30,31, 2026, the Company had total liabilities of $144,930, includinga $70,000 related to a long-term business loan and $39,086$15,750 relatedin toaccrued long-terminterest related-party advances.payable.

The Company also had $50,000 in accounts receivable as of July 31, 2026. The Company continues to operate with limited working capitalcash resources and relies on a combination of operating revenues, collection of outstanding receivables, related-party advances, and external financing to support ongoing operations.

Over the next twelve months, the Company intends to continue developing immersive virtual reality experiences and expandrelated digital media projects while expanding its revenue-generating activities, including platform implementation and configuration, audiovisual production, creativepromotional, media, promotional,advertising, and consulting activities. services.

The Company plans to continue focusing on the development of proprietary immersive media projects, virtual reality content, and related digital media assets, while also pursuing additional revenue-generating opportunities through audiovisual production services, promotional services, and creative consultingservice engagements.

The Company expects that working capital requirements will continue to increase as it develops operations, supports public company compliance obligations, and expands business activities.

Management expects that working capital requirements will continue to be funded through a combination of operating revenues, collection of outstanding receivables, related-party advances, equity financings, and debt financing arrangements, if available.

There can be no assurance that outstanding receivables will be collected when expected or that additional financing will be available on acceptable terms, or at all. If adequate financingliquidity is not available, the Company may be required to reduce operational activities, delay development projects, or limit expansion initiatives.

The financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the the normal course of business.

Management intends to address liquidity needs through a combination of operating revenues, collection of outstanding receivables, related-party advances, and potential equity or debt financing arrangements. However, there can be no assurance that sufficient liquidity or additional financing will be available onwhen acceptable terms, or at all.required.