AI assistant
Anonymous Intelligence Company Inc. Management Reports 2026
47309_rns_2026-01-28_d1144eec-09ec-4c31-96c3-f607ee2ee72a.pdf
Management Reports
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ANONYMOUS INTELLIGENCE COMPANY INC.
Management’s Discussion and Analysis
Three and twelve months ended September 30, 2025 and 2024
Management's Discussion & Analysis
This Management's Discussion and Analysis (the "MD&A") of the financial condition and results of operations of Anonymous Intelligence Company Inc. (the "Company" or "ANON") constitutes management's review of the factors that affected the Company's financial and operating performance for the three and twelve months ended September 30, 2025 and 2024.
The MD&A should be read in conjunction with the annual audited consolidated financial statements of the Company for the year ended September 30, 2025, and the notes related thereto (the "Annual Financial Statements"), which were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
All information in the MD&A is as of January 28, 2026, unless otherwise indicated. The Annual Financial Statements and MD&A have been reviewed by the Company's Audit Committee and approved by the Board of Directors on January 28, 2026.
This MD&A may contain forward-looking statements and should be read in conjunction with the cautionary statement on forward-looking statements at the end of this MD&A. These forward-looking statements are based on assumptions and judgments of management regarding events or results that may prove to be inaccurate resulting from risk factors beyond its control. Actual results may differ materially from the expected results.
The Annual Financial Statements, Interim Financial Statements, MD&As and other information, including news releases and other continuous disclosure documents are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.anonintelligence.com.
Significant Events and other Corporate Developments During the Quarter
During the quarter ended September 30, 2025, the Company continued to advance its strategic initiatives focused on privacy-enabled technology and digital asset initiatives, and completed capital markets activities to support ongoing operations.
On July 11, 2025, the Company announced plans to expand into digital assets through the launch of SimpliiCrypto, an early-stage cryptocurrency initiative led by CEO Denis Franks. In connection with this initiative, the Company commenced a non-brokered private placement of up to 5,000,000 units at $0.15 per unit for gross proceeds of up to $750,000. The proceeds were intended to fund cryptocurrency investments, staking activities, and related initiatives. In addition, the Company also continued advancing the redevelopment and rebranding of its SDK and VPN products as Simplii Ai and Simplii VPN. Further details are provided in the Company's news release dated July 11, 2025.
On August 13, 2025, the Company completed a non-brokered private placement of 5,313,552 units at a price of $0.15 per unit for gross proceeds of $797,033 (the "Offering"). Each unit consisted of one common share in the capital of the Company and one transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional share at an exercise price of $0.25 per share expiring August 13, 2027. In connection with the Offering, the Company paid a finder's fee of $20,470 and issued 136,465 non-transferable share purchase warrants on the same terms as the Warrants issued under the Offering.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
Significant Events and other Corporate Developments Subsequent to the Quarter
Subsequent to the quarter ended September 30, 2025, the Company completed additional financing activities and continued to pursue strategic initiatives to support its growth and operational objectives.
On November 24, 2025, the Company completed a non-brokered private placement conducted under the Listed Issuer Financing Exemption (the "LIFE Offering") and issued an aggregate of 3,625,000 units ("Units") at a price of $0.20 per Unit for total gross proceeds of $725,000. Each Unit consisted of one common share (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one additional Common Share at an exercise price of $0.25 for a period of 24 months from the closing date.
On November 27, 2025, the Company entered into a non-binding letter of intent with ARKHIVE Technologies Ltd. ("ARKHIVE") to acquire a 30% ownership interest in ARKHIVE. The proposed consideration consists of US$75,000 in cash, common shares of the Company with a deemed value of US$200,000, and 1,000,000 share purchase warrants exercisable at $0.50 per share for a period of two years. In addition, ARKHIVE will allocate and issue to the Company 150,000,000 ARKHIVE tokens, subject to vesting, and provide the Company with one board seat.
On December 10, 2025, the Company entered into a letter of intent with Nowlit Solutions Corp. ("Nowlit"), a Calgary-based cryptocurrency mining technology provider, pursuant to which the Company intends to acquire up to 100 operational cryptocurrency mining rigs, including associated accessories, firmware rights, and related operating components currently active on the Nowlit network (the "Transaction"). Total consideration for the Transaction is expected to be up to $400,000, payable through a combination of cash and common shares of the Company. In addition, the Company may issue up to 1,000,000 warrants to Nowlit exercisable at the higher of $0.45 per share and market price as of the date of signing of the definitive agreement.
Company Overview
The Company is a technology company focused on developing and commercializing privacy-enabled software and decentralized network technologies. The Company's platform strategy is centered on providing privacy-first solutions that support secure consumer and enterprise use cases, including connectivity, data access, and AI-enabled applications.
The Company's core product portfolio includes: (i) Limitless VPN, a proprietary virtual private network application that is being rebranded and further developed as SimpliiVPN; (ii) Turminal.ai, a privacy-focused AI application that is being redeveloped and rebranded as SimpliiAi and is currently in beta development; and (iii) Haller.ai, an AI platform that the Company continues to develop and enhance. The Company's products and platform initiatives are being advanced with the objective of meeting evolving user expectations and global industry standards for performance, security, and privacy.
The Company is currently in a pre-revenue stage and continues to focus its business efforts on product development, infrastructure enhancement, customer acquisition, and commercialization planning. As part of its broader strategy, the Company continues to evaluate opportunities for strategic partnerships, licensing arrangements, and enterprise applications of its technology.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
Limitless VPN (rebranded as SimpliiVPN)
Upgraded to a global standard, ANON's Limitless VPN is a proprietary product that provides end users with access to network infrastructure to perform distributed computational processing with a secure and encrypted connection to the internet. The Limitless VPN is currently being redeveloped and rebranded as "SimpliiVPN". Consumers receive the benefits and features of a paid VPN subscription (e.g., unlimited bandwidth and unlimited devices) at no cost.
ANON's upgraded Limitless VPN, housed on multiple powerful new servers, offers comprehensive and free virtual private network service that prioritizes user privacy, performance and accessibility, includes the following main features:
Robust Security and Privacy: Limitless VPN offers global end-to-end encryption to ensure all data remains private and secure. It adheres to a strict no-data-logging policy, meaning user activities are not tracked or stored, thus maintaining complete anonymity.
High Performance for Gaming: The service is optimized for gamers, offering virtually zero latency and high-speed connections, which are crucial for online gaming experiences.
Multiple new Custom-Built Servers and Network Optimization: Unlike many VPNs that rent servers, Limitless VPN operates its custom-built servers, providing extremely reliable and faster connections, and unmatched modular infrastructure. This setup is complemented by a unique Compression Engine that fully optimizes data transmission, particularly beneficial for users with slower internet connections.
User-Friendly Interface: The VPN is designed for ease of use, ensuring that even users who are not tech-savvy can navigate and utilize the service effectively, for ease of user experience.
No Cost with Unlimited Access: It is a completely free service, requiring no payment or credit card details. Users enjoy unthrottled bandwidth and unlimited access, which is a significant advantage over many other VPN services that limit bandwidth or offer tiered pricing.
Cross-Platform Compatibility: Limitless VPN is designed to be compatible across various platforms, ensuring users can secure their internet connection regardless of the device they are using.
This service is ideal for individuals who prioritize complete privacy and security online, especially for activities like streaming, browsing, and gaming. Limitless VPN's commitment to user privacy, combined with its high-performance capabilities and user-friendly design, makes it a competitive option in the VPN market.
For a complete description of the Limitless VPN including VPN Security, Services Provided to the Company by Custodians, Regulatory Frameworks Applicable to Custodians, Cryptocurrencies and Privacy and Terms of Use, please see the Company's + AIF and Filing Statement dated May 12, 2023 filed by the Company on SEDAR+ at www.sedarplus.ca.
ANON's future intention is to monetize the technology through accessing the VPN users' unused computational power. Through the Limitless VPN infrastructure, the host network can perform distributed computing, which is the process of connecting multiple servers through a network to share data and monetize. Once a critical mass of users is obtained, the collective processing power could be
Anonymous Intelligence Company Inc.
2025 Annual MD&A
simultaneously converting user data into revenue. ANON is seeking partnerships and is in negotiations with third parties that would perform the cryptocurrency mining, and in exchange, ANON would receive a profit share via Decentralized Applications (dApps) for Payment (Cryptocurrency) for cryptocurrency mined.
The initial version of the Limitless VPN was released and available to the public on September 23, 2021. By December 31, 2021, the Limitless VPN had approximately 13,000 unique users registered to the platform. By August 2022, there were 55,000 registered users, of which, 31,078 were active users.
In the second quarter of 2023, due to the volatility in the cryptocurrency sector, ANON shifted its business model from cryptocurrency mining to public data gathering, i.e., to gather and monetize the Limitless VPN users' information and activities undertaken while using the Limitless VPN. During this time, the Company raised capital to fund the research and development, specifically, in the development of a proprietary plugin that gathers and sanitizes user data to remove personally identifiable information. User data can include websites visited, advertisements viewed, purchases made and other activities the users undertake while using the Limitless VPN. The anonymous user data could then be sold to third parties. The plugin with data anonymization capabilities is referred to as SDK.
The Company offers the Limitless VPN to users at no charge at www.limitlessvpn.com, and in exchange, the users are simply required to agree to ANON's terms of use and privacy policies including the download of the SDK plugin.
Monetization of VPN
The Limitless VPN's monetization strategy is unique in that it does not rely on traditional methods such as subscription fees. Instead, it generates revenue only when the VPN is actively used. This model aligns the service's financial interests with user activity, ensuring that the service remains free for users while still supporting its operational costs. The specifics of this monetization method, however, are clearly detailed below, and is designed to be non-intrusive as it respects user privacy.
The VPN is now monetized by the ANON SDK, an innovative app monetization solution that takes a different approach compared to traditional methods. It moves away from the usual reliance on in-app purchases and advertisements, aiming to improve and vastly simplify user experience, along with revenue generation for app developers.
Key features of the ANON SDK include:
Non-Ad Based Monetization: ANON SDK deviates from the standard advertising SDKs by not displaying ads or requiring direct payments from users. Instead, it utilizes unused bandwidth from users' devices to collect publicly accessible data like product prices and reviews from the internet.
User Privacy and GDPR Compliance: The platform strictly adheres to GDPR regulations. It primarily uses the user's IP address to gather publicly available information from reputable websites without collecting any personal data, ensuring user anonymity and data security.
Seamless Integration and User Experience: ANON SDK is designed to function in the background, offering a non-intrusive experience for the user. This aspect is crucial as it does not disrupt the app's functionality
Anonymous Intelligence Company Inc. 2025 Annual MD&A
or the user experience, differentiating it from traditional advertisements which can be seen as intrusive and annoying.
Empowering Developers and Users: The tool operates only with user consent to join the ANON SDK network. For developers, this means a potential revenue stream when the app is in active use. For users, it offers an ad-free app experience.
Versatility Across Multiple Platforms: ANON SDK is adaptable across a variety of platforms, including mobile devices, desktops, and smart TVs. This flexibility ensures developers can maximize their revenue potential across different channels while maintaining a consistent user experience.
Partnership and Support: The platform offers a lucrative partner program, investing in the success of its partners through marketing and R&D funds. It also provides personal support and exclusive resources to help businesses grow and develop innovative applications.
By incorporating ANON SDK, developers can engage in a modern monetization approach that prioritizes user-centered design and data privacy, fostering a more harmonious and beneficial relationship between developers, users, and businesses in the app ecosystem.
Turminal.ai (rebranded as SimpliiAi)
The Company is also redeveloping Turminal.ai, a privacy-focused AI application that is being rebranded as SimpliiAi. The product is currently in beta development and is intended to provide users with AI-enabled functionality while emphasizing privacy and secure data handling.
The Company continues to enhance the platform and evaluate potential commercialization approaches, including integration with internal technology tools and monetization strategies that align with user privacy commitments.
The Turminal.ai app, developed by ANON, is a sophisticated platform designed with a focus on privacy and AI integration. Built on ANON's Limitless privacy technology, Turminal.ai creates a secure connection between users and the AI infrastructure, addressing widespread concerns about data and privacy breaches often associated with AI technologies. This initiative is a response to the discomfort expressed by thought leaders and governments regarding the current state of AI privacy.
Key features of the Turminal.ai include:
Privacy-Centric Design: The app is tailored to ensure user privacy in AI interactions, creating a private tunnel that secures data exchange between users and the AI system.
Innovative Functionality: Turminal.ai has been developed to include a 'jailbreak' feature, which allows it to access and utilize language learning models (LLMs) to build live links for various projects. This feature enables the platform to provide practical assistance, such as creating shopping lists for specific projects with live online purchase links.
Accessibility and User Engagement: Initially launched in a private alpha stage, the app has moved to a public beta phase, with a significant number of sign-ups indicating strong consumer interest. The beta version is aimed at refining the platform based on user feedback and ensuring a high-quality product
Anonymous Intelligence Company Inc. 2025 Annual MD&A
experience.
Mobile App Development: The mobile version of Turminal.ai, which will initially be available on iOS, focuses on enhancing user convenience and functionality, particularly for on-the-go use.
Monetization Strategy: The app plans to shift to a freemium model, powered by the ANON SDK. This strategy aims to provide value to shareholders and generate revenue for the Company without compromising user data. The ANON SDK, integral to this approach, harvests public data instead of private user information, aligning with the Company's privacy commitment.
Corporate Synergies and Marketing: The redevelopment of Turminal.ai is part of a broader strategy by ANON, which includes the acquisition of Haller.ai and partnerships to build a suite of enterprise AI products. Marketing and investor relations efforts are underway to broaden the Company's reach and enhance public and investor awareness of its products and technologies.
Turminal.ai represents a significant step in ANON's mission to leverage proprietary Web 3.0 technology, enabling decentralized interactions among users and machines. The Company's vision is to create a sustainable world where data, value, and interactions occur on a peer-to-peer basis without third-party intermediaries, ensuring full control and ownership of personal and corporate data for users.
Haller.ai
While the Haller AI, was developed by Haller.ai, and is an innovative AI platform ("Haller.ai Platform"). The ANON AI team of developers have exponentially improved the technology and is not only tailored for enterprise use, emphasizing ease of use and versatility across various markets and industries. Following ANON's acquisition of Haller.ai, Haller AI has been positioned to address the enterprise-level AI market with several key features:
Intuitive Interface: Haller AI was designed to simplify the AI experience, making it accessible and effective even for users without technical knowledge. This approach is intended to significantly boost productivity at a low cost. This has now been vastly improved to a global standard, including full autonomous AI learning.
Privacy and Data Security: Haller.ai incorporated top-tier security features, such as state-of-the-art encryption protocols, multi-factor authentication mechanisms, and secure data storage solutions, to ensure data integrity and confidentiality. As above, this also has been vastly improved to a global standard, including full autonomous AI learning.
Market Adaptability: The platform was adaptable to all markets and industries, offering AI solutions tailored to the unique needs of different enterprises. Now, with the exponential expansion and evolution of Artificial Intelligence, ANON's AI technology is poised for a considerable market share.
Focus on Enterprise Solutions: The platform is being developed with a strong focus on providing enterprise-level AI products to enhance productivity and address intellectual property issues that many current AI platforms face.
Integration with ANON's Technology: ANON's AI's development aligns with ANON's strategy to combine best-in-class AI assets with internally developed Company assets. This integration aims to commercialize AI applications for users who are not familiar with 'prompting', enhancing the usability of AI technology.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
The Company provides access to Haller.ai for users via Anonintelligence.com
Commercialization and Monetization Strategy
The Company has historically offered certain products to users free of charge in order to support adoption and user growth. The Company's longer-term objective is to pursue monetization strategies that are intended to be scalable and aligned with user privacy, which may include revenue opportunities from software licensing, partnerships, and enterprise use cases.
In prior periods, the Company evaluated monetization approaches that included leveraging distributed infrastructure and user network activity. The Company has also continued development of its proprietary technology tools, including an internally developed SDK, which is intended to support data-related functionality while maintaining user anonymity by removing or excluding personally identifiable information.
Trends, Commitments, Events or Uncertainties
The field of AI and SDK-enabled technologies is characterized by rapid innovation, emerging trends, and evolving uncertainty. A key trend is the increasing demand for developer-friendly, modular SDKs that enable the seamless integration of AI functionality into consumer and enterprise applications. Advancements in areas such as natural language processing, real-time inference, and on-device machine learning are contributing to more efficient and personalized user experiences and expanding the range of potential use cases.
At the same time, the sector is subject to significant uncertainty and risk, including heightened expectations around data privacy, security, regulatory compliance, and responsible AI deployment. Companies operating in this space must also address challenges associated with cybersecurity threats, potential misuse of AI tools, and the need for scalable infrastructure and reliable performance. The pace of technological change creates ongoing pressure to maintain product relevance through continuous development, platform compatibility, and differentiation in a highly competitive global market.
In addition, external factors including shifting regulatory frameworks, changes in user expectations, and broader macroeconomic conditions may impact adoption, commercialization timelines, and the ability of companies to scale products and services. These factors collectively highlight both the opportunities and challenges faced by companies developing AI-enabled SDK and software technologies in this rapidly evolving sector.
Anonymous Intelligence Company Inc. 2025 Annual MD&A
Selected Annual Information
The following selected financial information is derived from the audited consolidated financial statements of the Company for the years ended September 30, 2025, 2024 and 2023. This information should only be read in conjunction with the audited consolidated financial statements for the respective periods indicated.
| Years ended September 30, | 2025 | 2024 | 2023 |
|---|---|---|---|
| $ | $ | $ | |
| Revenue | Nil | Nil | Nil |
| Total expenses | 1,280,508 | 1,259,553 | 2,624,824 |
| Net loss | 1,874,547 | 2,884,589 | 6,512,307 |
| Comprehensive loss | 1,874,547 | 2,884,589 | 7,415,307 |
| Loss per share – basic and diluted | $0.09 | $0.25 | $0.81 |
| As at September 30, | 2025 | 2024 | 2023 |
| --- | --- | --- | --- |
| $ | $ | $ | |
| Total assets | 819,350 | 1,497,247 | 3,743,869 |
| Total current assets | 752,615 | 282,806 | 201,278 |
| Total liabilities | 225,983 | 488,857 | 331,224 |
| Shareholders’ equity | 593,367 | 1,008,390 | 3,412,645 |
The Company has not declared nor paid any cash dividends on any of its issued Common Shares since its inception. The Company does not anticipate paying any dividends on its Common Shares in the foreseeable future. Other than requirements imposed under applicable corporate law, there are no other restrictions on the Company's ability to pay dividends under the Company's constating documents. Subject to the BCBCA, payment of any dividends, if any, will be at the discretion of the Board after taking into account many factors, including operating results, financial condition, and current and anticipated cash needs. All of the Common Shares will be entitled to an equal share in any dividends declared and paid on a per share basis.
Fiscal 2025
In Fiscal 2025, the decrease in net loss of $1,010,042 primarily resulted in the Company's implementation of cost-cutting measures and decreases in impairment charges to intangible assets.
The decrease in total assets in Fiscal 2025 of $677,897 resulted mainly from an impairment charge to the Limitless VPN and Haller of $625,780, to a carrying value of $Nil.
Fiscal 2024
In Fiscal 2024, the decrease in net loss of $3,627,718 primarily resulted in the Company's implementation of cost-cutting measures and decreases in impairment charges to intangible assets and derivatives.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
The decrease in total assets in Fiscal 2024 of $2,246,622 resulted mainly from an impairment charge to the Limitless VPN of $1,737,994, to a carrying value of $1,008,688.
Fiscal 2023
The increase in net loss in Fiscal 2023 resulted from impairment charges to intangible assets related to the Haller.ai Platform of $3,047,692 and to the derivative (warrant component of the investment in Next Decentrum) of $861,000.
The decrease in total assets in Fiscal 2023 of $3,147,754 resulted from the impairment of investments in shares and warrants of Next Decentrum Technologies Inc. ("Next Decentrum") of $861,000, to a carrying amount of $Nil, and the impairment charge to intangible assets related to the Haller.ai Platform of $3,047,692, to a carrying value of $250,000. See "Results of Operations" below.
Summary of Quarterly Results
The following table sets forth selected financial information of the Company for each of the last eight quarters:
| Three months ended | Sep 2025(1) | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024(2) | June 2024(3) | March 2024(3)(5) | Dec 2023(3) |
|---|---|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | $ | $ | |
| Total expenses | 397,953 | 402,675 | 253,979 | 225,901 | 367,473 | 263,830 | 229,094 | 399,156 |
| Net loss | (1,011,332) | (369,433) | (261,669) | (232,113) | (1,935,463) | (164,155) | (152,521) | (632,450) |
| Total comprehensive loss | (1,011,332) | (369,433) | (261,669) | (232,113) | (1,935,463) | (164,155) | (152,521) | (632,450) |
| Weighted average number of shares outstanding | 24,149,716 | 20,227,687 | 18,520,009 | 16,866,775 | 13,006,482 | 10,978,776 | 10,978,776 | 10,934,372 |
| Income (loss) per share - basic and diluted | (0.04) | (0.02) | (0.01) | (0.01) | (0.15) | (0.01) | (0.01) | (0.06) |
(1) The increase in net loss during the quarter was primarily attributable to an impairment charge to intangible assets related to the Limitless VPN and Haller of $625,780.
(2) The increase in net loss during the quarter was primarily attributable to an impairment charge to intangible assets related to the Limitless VPN of $1,737,994.
(3) The decrease in loss during the quarter was largely due to reduced expenditures resulting from the Company's cost-cutting measures and a gain on write-off of loan and accounts payable of $100,000.
(4) The increase in net loss during the quarter was primarily attributable to an impairment charge to intangible assets related to the Haller.ai Platform of $3,047,692 and an impairment charge on derivative of $861,000.
Anonymous Intelligence Company Inc. 2025 Annual MD&A
Results of Operations
The following selected financial information is derived from the financial statements of the Company prepared within acceptable limits of materiality and is in accordance with IFRS.
| Q4 2025 | Q4 2024 | YTD 2025 | YTD 2024 | |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Expenses: | ||||
| Investor and public relations | 160 | - | 1,236 | 70,237 |
| Management fees | 16,643 | - | 68,270 | - |
| Office and administration | 5,606 | 10,242 | 17,114 | 32,440 |
| Professional fees | 53,517 | 71,027 | 65,085 | 90,387 |
| Research and development (R&D) | 62,564 | 98,977 | 215,961 | 125,077 |
| Share-based compensation | 101,559 | 41,075 | 271,400 | 96,197 |
| Other Item: | ||||
| Other income | 41,650 | - | 41,650 | - |
| Finance costs | 5,066 | - | (25,960) | - |
| Gain on settlement of debt | 727 | 12,494 | 43,739 | 112,494 |
| Loss on change in fair value of derivatives | (24,916) | - | (24,916) | - |
| Impairment of intangible assets | (625,780) | (1,737,994) | (625,780) | (1,737,994) |
| Net loss | (1,011,332) | (1,935,463) | (1,874,547) | (2,884,589) |
| Net loss per share | (0.04) | (0.15) | (0.09) | (0.25) |
Note: Certain additional expenses are presented in the Company's financial statements but are not shown in the above table. See the consolidated statements of comprehensive loss for complete disclosure.
Q4 2025 compared with Q4 2024
During Q4 2025 and Q4 2024, the Company did not generate any revenues from operations and recorded a net loss of $1,011,332 and $1,935,463, respectively. The overall decrease in net loss of $924,131 during Q4 2025 was primarily attributable to lower impairment charges recorded in the period together with the implementation of cost-cutting measures while focusing on improving and upgrading ANON's technology to a global standard.
Expenses
As part of the Company's cost-cutting measures, the following expenditures decreased during Q4 2025 compared to Q4 2024, including:
- Office and administration decreased of $4,636 during Q4 2025 mainly due to reduced shared office costs including rent, staff and other office costs following the termination of the office rental agreement and reductions in shared staffing arrangements.
- Professional fees decreased by $17,510 during Q4 2025 primarily as a result of cost reductions.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
- Research and development (R&D) expenses decreased by $36,413 in Q4 2025 as the Company's CEO, along with his private company's development team, assumed responsibility for the development of ANON's technology assets at a nominal cost.
- Share-based compensation increased by $60,484 in Q4 2025 primarily due to increased vesting of stock options and RSUs during the period as a result of new awards granted during Fiscal 2025.
Other items
- The Company recorded an impairment charge to intangible assets of $625,780 in Q4 2025, comprised of $464,275 relating to the Limitless VPN and $161,505 relating to the Haller.ai platform. In Q4 2024, the Company recorded an impairment charge of $1,737,994 relating to Limitless VPN. The impairment charges were primarily driven by delays in commercialization and monetization and revised expectations regarding the timing and amount of future cash flows, including continued product development and rebranding initiatives.
Fiscal 2025 compared with Fiscal 2024
During Fiscal 2025 and Fiscal 2024, the Company did not generate revenues from operations and recorded a net loss of $1,874,547 and $2,884,589, respectively. The overall decrease in net loss of $1,010,042 during Fiscal 2025 was primarily attributable to lower impairment charges recorded in the period, together with the implementation of cost-cutting measures while focusing on improving and upgrading ANON's technology to a global standard.
Expenses
As part of the Company's cost-cutting measures, the following expenditures decreased during Fiscal 2025:
- Investor and public relations decreased by $69,001 in Fiscal 2025 as the Company did not carry out any marketing and investor relations awareness campaign during Fiscal 2025, in order to focus on upgrading ANON's technology to a global standard. Investor and public relations of $70,237 in Fiscal 2024 primarily related to market-making fees, news release dissemination fees and investor relations.
- Office and administration decreased by $15,326 during Fiscal 2025, mainly due to reductions in shared office costs including rent, staff and other office costs following the termination of the office rental agreement and reductions in shared staffing arrangements.
- Professional fees decreased by $25,302 in Fiscal 2025 primarily as a result of cost reductions.
- R&D increased by $90,884 in Fiscal 2025 reflecting ongoing platform and product development efforts, including development activities undertaken by the Company's CEO and his private company's development team at a nominal cost.
- Share-based compensation increased by $175,303 during Fiscal 2025 due to increased stock options and RSUs granted and vested during Fiscal 2025.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
Other items
- Impairment of intangible assets totaled $625,780 in Fiscal 2025 (Fiscal 2024 - $1,737,994). Fiscal 2025 impairment consisted of $464,275 related to the Limitless VPN and $161,505 related to Haller.ai.
- In Fiscal 2025, the Company recorded finance costs of $25,960, which primarily consisted of accretion and interest expenses on convertible debentures of $6,139 and $15,837, respectively, and $2,703 of interest on loan.
- The Company recorded a gain on settlement of debt of $43,739 in Fiscal 2025 (Fiscal 2024: $112,494) resulting from the settlement of certain accounts payable.
- During Fiscal 2025, the Company recorded other income of $41,650 related to the technology services provided to CannÖgen International Inc. ("CannÖgen"), which was settled through the issuance of 444,444 warrants of CannÖgen to the Company exercisable at $0.1125 per share for a period of two years. The warrants were initially recognized as a derivative financial instrument at a fair value of $41,650, and were subsequently remeasured, resulting in a loss on change in fair value of derivatives of $24,916. See Note 3 to the Company's annual financial statements.
Liquidity and Capital Resources
The Company manages liquidity risk by maintaining, to the extent reasonably possible, sufficient capital resources to meet its working capital needs, operating requirements, and financial commitments as they become due. As the Company is currently in the pre-revenue stage, it has historically, financed its operations and capital requirements primarily through equity and debt financings.
As at September 30, 2025, the Company had working capital of $526,632 (September 30, 2024 – working capital deficiency of $206,051) and cash of $705,396 (2024 – $233,072). The improvement in working capital of $732,683 during Fiscal 2025 was primarily attributable to proceeds received from a private placement financing completed during the year.
During Fiscal 2025, the Company raised $762,105 through an equity financing and $175,000 from the exercise of warrants. Subsequent to Fiscal 2025, the Company completed a non-brokered private placement conducted under the Listed Issuer Financing Exemption (the "LIFE Offering") for gross proceeds of $725,000. Further details regarding the LIFE Offering are provided under Section (3) – Significant Events and other Corporate Developments.
The Company will require additional funding in order to fulfill its expenditure requirements to meet existing and any new business objectives and expects to obtain such funding through the issuance of additional securities, the incurrence of debt, or a combination thereof. There can be no assurance that additional financing will be available on acceptable terms, or at all. The Company's inability to raise sufficient financing to fund capital expenditures or acquisitions could limit its growth and may have a material adverse effect upon future profitability.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
Cash Flow Highlights
The table below summarizes the Company's cash flows for the years ended September 30, 2025 and 2024:
| 2025 | 2024 | |
|---|---|---|
| $ | $ | |
| Cash used in operating activities | (415,081) | (369,663) |
| Cash used in investing activities | (50,000) | - |
| Cash provided by financing activities | 937,405 | 469,000 |
| Increase in cash | 472,324 | 99,337 |
Cash used in operating activities during Fiscal 2025 was generally consistent with the prior year, reflecting a comparable level of operational expenditures, partially offset by higher research and development costs.
Cash used in investing activities during Fiscal 2025 consisted of a $50,000 investment in CannÖgen’s shares acquired through the Company’s exercise of 444,444 warrants of CannÖgen at $0.1125 per share.
Cash provided by financing activities during Fiscal 2025 primarily consisted of net proceeds of $762,105 from a private placement financing and $175,300 raised from the exercise of 2,500,000 warrants at $0.07 per share. Cash provided by financing activities in Fiscal 2024 consisted of $82,000 raised from exercise of warrants, $12,000 from a third-party loan, $275,000 from an equity financing and $100,000 from a convertible debt financing.
Subsequent to Fiscal 2025, the Company received additional subscriptions proceeds of $14,458 under the private placement financing. In addition, the $12,000 demand loan was fully repaid together with the accrued interest of $2,458.
Contractual Obligations and Commitments
A summary of the Company's contractual obligations and commitments, which outlines the year the payments are due as follows:
| Total | < 1 year | 1 – 3 years | 3 – 5 years | |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Accounts payable and accrued liabilities | 213,983 | 213,983 | - | - |
| Loans and borrowings (1) | 12,000 | 12,000 | - | - |
| Convertible debenture | - | - | - | - |
| 225,983 | 225,983 | - | - |
(1) The loan was fully repaid subsequent to September 30, 2025, together with accrued interest of $2,458.
Management is committed to raising additional capital to meet its financial obligations and commitments, and to fund operations, growth initiatives and capital expenditures.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
Capital Management
The Company considers its capital structure to include net residual equity of all assets, less liabilities. Capital consists of share capital and working capital, and may also include debt financing from time to time. Management's objective is to maintain a capital structure that provides sufficient liquidity to support the Company's operating requirements and its ability to continue as a going concern.
To achieve this objective, management may adjust the Company's capital resources in response to changes in economic conditions and the risk profile of its underlying assets. Historically, the Company has funded its operations through equity financings and borrowings.
There are no third-party working capital requirements, covenants or other similar restrictions. There were no capital expenditure commitments as at September 30, 2025 or as of the date of this MD&A.
Off-Balance Sheet Arrangements
The Company had no material off-balance sheet arrangements as at September 30, 2025, and as at the date of this MD&A, that have, or are reasonably likely to have, a current or future effect on the financial performance or financial condition of the Company.
Transactions with Related Parties
Key management compensation for the nine months ended September 30, 2025 and 2024, consisted of the following:
Compensation of key management personnel
| Three months ended September 30 | Year ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| $ | $ | |||
| CEO fees(1) | 36,000 | 21,000 | 99,000 | 49,000(1) |
| Former CEO fees(2) | - | - | - | 30,000 |
| CFO fees | 21,000 | (703) | 66,000 | 61,297 |
| Director fee | - | 10,000 | - | 15,000 |
| Share-based compensation(3) | 106,408 | (9,401) | 248,244 | 39,060 |
(1) Recorded under research and development.
(2) Former CEO fees paid to Walrus Enterprises, a company controlled by Lucas Russell, were recorded under research and development.
(3) Share-based compensation represents the fair value of options and RSUs granted and vested to directors and officers of the Company.
As at September 30, 2025, included in accounts payable and accrued liabilities was $8,762 (September 30, 2024 - $89,379) due to a director, former director and officers of the Company related to accrued management fees and salaries. The amounts are unsecured, non-interest bearing and without fixed terms of repayment.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
As at September 30, 2025, included in prepaids and other assets was a receivable from a Company with Director in common of $1,400 (2024 - $Nil) and CEO fee of $Nil (2024 - $7,000).
Critical Accounting Estimates
The preparation of consolidated financial statements in conformity with IFRS requires management to exercise judgment and to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Estimates and associated assumptions are based on historical experience and other factors. Actual results may differ from these estimates.
Estimates and underlying assumptions are continually evaluated for reasonableness and relevancy. Where revisions to accounting estimates are required, they are recognized in the period in which the estimates are revised for the current as well as future periods that are affected.
Significant judgments, estimates and assumptions that have the most significant effect on the amounts recognized in the Company's consolidated financial statements are described in note 2 to the Annual Financial Statements.
New Accounting Pronouncements
New accounting standards issued but not yet effective
IFRS 18 - Presentation and Disclosure in Financial Statements
IFRS 18 is effective for reporting periods beginning on or after January 1, 2027. It introduces several new requirements that are expected to impact the presentation and disclosure of most, if not all, entities. The Company is in the process of assessing the impact on the financial statements of the new standard.
Financial Instruments
At September 30, 2025, the Company's financial instruments consist of cash, accounts payable and accrued liabilities and loans and borrowings. The carrying amounts of these financial instruments approximate fair value due to their immediate or short-term maturity.
The Company made an irrevocable election to classify its investment in CannÖgen at FVOCI. Convertible debentures are compound financial instruments which are accounted for separately by their components: a financial liability and an equity instrument.
The Company may be exposed to risks of varying degrees of significance from financial instruments. Management's close involvement in the operations allows for the identification of risks and variances from expectations. A discussion of the types of risks the Company is exposed to and how such risks are managed by the Company is provided in note 13 to the Annual Financial Statements.
Liquidity risk is the risk that the Company will not be able to meet its financial obligations associated with its financial liabilities as they come due. The Company's approach to managing liquidity risk is to ensure
Anonymous Intelligence Company Inc.
2025 Annual MD&A
that it has sufficient liquidity to settle obligations and liabilities when they are due. As at September 30, 2025, the Company had working capital of $526,632 (2024 – working capital deficiency of $206,051). The Company is pursuing additional sources of financing to ensure that it can meet its ongoing operating requirements and planned capital expenditures. There is no assurance that the Company will be successful in these initiatives. The Company's capital expenditures mainly consist of the development of its technology platforms. Accounts payable and accrued liabilities are due within 90 days and loans and borrowings mature within a year.
As at September 30, 2025, the Company did not have any financial instruments subject to significant credit, price or interest rate risks. The Company employs risk management strategies and policies to ensure that any exposures to risk are in compliance with the Company's business objectives and risk tolerance levels.
Other Risks and Uncertainties
The Company's business is subject to other risks and uncertainties that may have a material adverse effect on the Company's business, assets, liabilities, financial condition, results of operations, prospects, and cash flows and the future trading price of the common shares. Due to the nature of ANON's business, the legal and economic climate in which it operates and its present stage of development and proposed operations, ANON is subject to significant risks.
Summary of Outstanding Share Data
As at the date of this MD&A, the Company had the following issued and outstanding securities:
| Description of securities | Number of securities |
|---|---|
| Issued and outstanding common shares | 31,776,041 |
| Stock options | 1,126,615 |
| Warrants | 11,935,911 |
| RSUs | 200,624 |
| 45,039,191 |
Controls and Procedures
In connection with National Instrument 52-109 ("NI 52-109"), the CEO and CFO of the Company have filed a Venture Issuer Basic Certificate with respect to the financial information contained in the Interim Financial Statements and accompanying MD&A as at and for the nine months ended June 30, 2025 (together the "Interim Filings").
In contrast to the certificate under NI 52-109, the Venture Issuer Basic Certification does not include representations relating to the establishment and maintenance of disclosure controls and procedures and internal control over financial reporting, as defined in NI 52-109. For further information, the reader should refer to the Venture Issuer Basic Certificates filed by the Company with the Interim Filings on SEDAR+ at www.sedarplus.ca.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
Disclosure Controls and Procedures
Disclosure controls and procedures (“DC&P”) are intended to provide reasonable assurance that information required to be disclosed is recorded, processed, summarized and reported within the time periods specified by securities regulations and that information required to be disclosed is accumulated and communicated to management. Internal controls overfinancial reporting (“ICFR”) are intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with IFRS.
Venture companies are not required to provide representations in the Annual Filings relating to the establishment and maintenance of DC&P and ICFR, as defined in NI 52-109. In particular, the CEO and CFO certifying officers do not make any representations relating to the establishment and maintenance of (a) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation, and (b) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s IFRS. The issuer’s certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in their certificates regarding the absence of misrepresentations and fair disclosure of financial information. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost-effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.
Cautionary Note Regarding Forward-Looking Statements
This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”). These statements relate to future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates” or “believes”, or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement.
Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company’s ability to predict or control. For a complete list of the factors that could affect the Company, please make reference to those risk factors further detailed under the heading “Risk Factors”. Readers are cautioned that such risk factors, uncertainties and other factors are not exhaustive. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A.
Anonymous Intelligence Company Inc.
2025 Annual MD&A
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement. Specifically, forward-looking statements in this MD&A include, but are not limited to, statements with respect to:
- timelines;
- the Company's anticipated cash needs and its needs for additional financing;
- the Company's anticipated use of proceeds and business strategy;
- the Company's ability to protect, maintain and enforce its intellectual property;
- the Company's future growth plans, including growth of its userbase;
- the Company's expectations with respect to advancement of its business, operations, products, and services, including its monetization strategies;
- the Company's ability to attract new customers and develop and maintain existing customers;
- the Company's competitive position; and
- anticipated trends and challenges in the Company's business.
The actual results, performance or achievements of the Company could differ materially from those anticipated in the Forward-Looking Statements as a result of the risk factors set forth below and under the heading "Risk Factors", including, but not limited to, risks related to: (i) the Company's ability to generate sufficient cash flow from operations and obtain financing, if needed, on acceptable terms or at all; (ii) general economic, financial market and regulatory conditions in which the Company operates; (iii) advancement of technology to support the Company's operations; (iv) customer interest in the Company's products; (v) competition; (vi) anticipated and unanticipated costs; (vii) government regulation of the Company's products and operations, including privacy, cryptocurrency and cybersecurity laws and regulations; (viii) the timely receipt of any required regulatory approvals; (ix) the Company's ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; (x) the Company's ability to conduct operations in a safe, efficient and effective manner; and (xi) the Company's plans and timeframe for completion of such plans.
Readers are cautioned that these factors are difficult to predict and that the assumptions used in developing the Forward-Looking Statements may prove to be incorrect. Readers are also cautioned that the list of risk factors contained in this MD&A is not exhaustive. Accordingly, readers are cautioned that the Company's actual results may vary from the Forward-Looking Statements, and the variations may be material.
Although the Company believes that the expectations reflected in the Forward-Looking Statements are reasonable, it can give no assurance that such expectations will prove to be correct, and the Forward-Looking Statements are expressly qualified in their entirety by this cautionary statement. The purpose of the Forward-Looking Statements is to provide the reader with a description of management's expectations, and the Forward-Looking Statements may not be appropriate for any other purpose. The reader should not place undue reliance on the Forward-Looking Statements. The Forward-Looking Statements are made as at the date hereof and the Company undertakes no obligation to update or revise any of the Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Anonymous Intelligence Company Inc.
2025 Annual MD&A