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

During the year ended December 31, 2024,2025, the Company posted revenues of $105,000.nil. For that same year ended, total operating expenses were $714,512,$668,829, consisting of general and administrative expenses of $103,824,$84,791, professional fees of $51,300$24,650 and stock-based compensation fees of $559,388. Loss from operations and before other expenses and income taxes totaled $609,512.$593,833. Other expenses consisted of $25,004 in interest expense.expense and other revenue of $100,000. After income tax tax expense of $0, the Company generated a net loss from continuing operations of $634,516,$593,833, and a total net loss of $634,516.$593,833.

For the year ended December 31, 2025 had revenue of nil. For the year ended December 31, 2024 had revenue of $105,000. For the year ended December 31, 2023 had revenue of $60,000.

During the year ended December 31, 2024,2025, the Company posted operating expenses from continuing operations of $ 714,512,$668,829, consisting of general and administrative expenses of $103,824,$84,791, professional fees of $51,300$24,650 and stock-based compensation of $559,388. For the year ended December 31, 2023,2024, the Company posted operating expenses from continuing operations of $872,950,$714,512, consisting of general and administrative expenses of $174,577,$103,824, professional fees of $85,721$51,300 and stock-based compensation of $612,652.$559,388.

During the year ended December 31, 2024,2025, the Company generated $33,876$64,410 in cash provided by operating activities,activities. used $7,750 cash in financing activities, and theThe Company did not use or generate any cash in financing or investing activities. During the year ended December 31, 2024, the Company generated $33,876 in cash provided by operating activities, used $7,750 in cash in financing activities, and the Company did not use or generate any cash in investing activities.

The Company’s common stock is listed on the OTC ExpertPink Limited Market under the stock ticker symbol XESP.

Results of Operation for the Three Months Ended MarchJune 31,30, 2026 and 2025

For the three months ended MarchJune 31,30, 2026, the Company had revenues of nil. In comparison, for the three months ended MarchJune 31,30, 2025, the Company had revenues of nil.

Operating expenses were $42,978$77,472 for the three months ended MarchJune 31,30, 2026, consisting of $2,489$9,147 of general and administrative expense, $19,247$47,083 of professional fees,fees and $21,242 of non-cash non-cash stock-based compensation expense for the issuance of warrants. In comparison, for the three months ended MarchJune 31,30, 2025, operating expenses expenses were $164,228,$167,058, consisting of $24,031$27,211 of general and administrative expense, $350 of professional fees,expense and $139,847 of non-cash stock-based compensation expense for the issuance of warrants.

For the three months ended MarchJune 31,30, 2026, the Company posted a net incomeloss of $36,295,$82,394, compared to a net loss of $170,479$173,309 for three months ended MarchJune 31,30, 2025.

During the threesix months ended MarchJune 31,30, 2026, the the Company used $18,723$62,253 of cash in operating activities. The Company did not use or generate any cash in financing or investing activities.

The accompanying unaudited condensed 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 revenues of nil during the threesix months ended MarchJune 31,30, 2026 and had a net incomeloss of of $36,295$46,099 for the threesix months ended MarchJune 31,30, 2026. The Company has an accumulated deficit of $8,386,737$8,469,131 as of MarchJune 31,30, 2026. The Company requires capital for its contemplated operational and marketing activities. Obtaining additional financing, through an additional capital raise, the successful development of the Company’s contemplated plan of operations, and its transition to the attainment of continued profitable operations are necessary for the Company to continue operations.

The Company used $18,723$62,253 of cash from operations for the threesix months ended MarchJune 31,30, 2026. NetThe Company did not use or generate any cash used in financing andor operatinginvesting activities for the three six months ended MarchJune 31,30, 2026 was nil.2026.

As of MarchJune 31,30, 2026, the Company had $100,244$56,714 in in cash.