DXStorm.Com Inc. — Interim / Quarterly Report 2024

Feb 28, 2024

DXSTORM.COM INC.

Management Discussion and Analysis

For the Six Months Ended December 31, 2023 and 2022

(Form 51-102F1)

This management discussion and analysis (“MD&A”) has been prepared based on
information available to DXStorm.com Inc. (the “Company”) as at February 28, 2024. The
MD&A of the operating results and financial condition of the Company for the periods
ended December 31, 2023 and 2022, should be read in conjunction with the Company’s
audited consolidated financial statements, including the related notes thereto, for
the years ended June 30, 2023 and 2022 which are prepared in accordance with
International Financial Reporting Standards (“IFRS”) for audited financial statements,
and the annual MD&A for the year ended June 30, 2023. Additional information relating
to the Company may be found under its profile on SEDAR at www.sedar.com.

The technical information of this MD&A has been reviewed and approved by the Company’s
Board of Directors.

MANAGEMENT’S ASSESSMENT OF INTERNAL CONTROL OVER FINANCIAL REPORTING (“ICFR”)

Management is responsible for establishing and maintaining adequate internal control
over the Company’s financial reporting. The internal control system was designed to
provide reasonable assurance to the Company’s management regarding the preparation and
presentation of the financial statements.

The inherent limitations in all control systems are such that they can provide only
reasonable, not absolute, assurance that all control issues and instances of fraud or
error, if any have been detected. Therefore, no matter how well designed, ICFR has
inherent limitations and can provide only reasonable assurance with respect to
financial statement preparation and may not prevent and detect all misstatements.

As the Company is a Venture Issuer (as defined under National Instrument 52-109
Certification of Disclosure in Issuers' Annual and Interim Filings) (“NI 52-109”), the
Company and Management are not required to include representations relating to the
establishment and/or maintenance of disclosure controls and procedures (“DC&P) and/or
ICFR, as defined in NI 52-109.

FORWARD-LOOKING STATEMENTS

This MD&A may contain forward-looking statements that are based on the Company’s
expectations, estimates and projections regarding its business and the economic
environment in which it operates. These statements speak only as of the date on which
they are made, are not guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. Examples of some of the
specific risks associated with the operations of the Company are set out below under
“Riskand Uncertainties”. Actual outcomes and results may differ materially from those
expressed in these forward-looking statements and readers should not place undue
reliance on such statements.

OVERALL PERFORMANCE

Nature of Operations and Going Concern

DXStorm.com Inc. (the “Company”) was created on June 16, 2000 as a result of the
reverse takeover of West Park Resources Inc. by DXStorm Inc. and continued under the
laws of Ontario on June 19, 2000 as DXStorm.com Inc.  The Company is a public company
for which the common shares are listed on the TSX Venture Exchange (trading symbol

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DXSTORM.COM INC.

Management Discussion and Analysis

For the Six Months Ended December 31, 2023 and 2022
(Form 51-102F1)

“DXX”) and is located at 824 Winston Churchill Blvd, Oakville ON L6J 7X2. Its
principal business is providing services relating to medical application software
development, e-commerce and internet based solutions to clients in Canada and the
United States of America.

These unaudited consolidated financial statements have been prepared using
International Financial Reporting Standards (“IFRS”) applicable to a going concern,
which assumes continuity of operations and realization of assets and settlement of
liabilities in the normal course of business for the foreseeable future, which is at
least, but not limited to, one year from December 31, 2023. At December 31, 2023, the
Company has an accumulated deficit of $13,128,218(June 30, 2023 - deficit of
$13,048,567) and has working capital deficit of $814,494 (June 30, 2023 – deficit of
$735,423). The Company's ability to continue as a going concern is dependent upon its
ability to generate sufficient funds and continue to obtain sufficient capital from
investors to meet its current and future obligations. The Company is subject to risks
and challenges similar to companies in a comparable stage of software development, e-
commerce services and internet based solutions. As a result of these risks, a material
uncertainty exists which costs significant doubt as to the appropriateness of the
going concern assumption. There is no assurance that the Company's funding initiatives
will continue to be successful and these unaudited consolidated financial statements
do not reflect the adjustments to the carrying values of assets and liabilities and
the reported expenses and consolidated statements of financial position
classifications that would be necessary if the going concern assumption was
inappropriate. These adjustments could be material.

Selected Annual Information

The following table sets forth a summary of the financial results for the years ended
June 30, 2023, 2022 and 2021:

Years ended June 30(CDN $)	2023	2022	2021
Total Revenues	78,140	111,251	146,423
(Loss)Income and Comprehensive (Loss) Income
for the year	(208,544)	(227,558)	(199,851)
(Loss) Income Basic, Diluted share	(0.009)	(0.010)	(0.010)
Total Assets	20,952	41,608	77,269
Dividends Declared	Nil	Nil	Nil

Loss per share is calculated on the basis of net loss divided by the weighted average
number of common shares outstanding for the year. Diluted loss per share is calculated
using the treasury stock method, giving effect to the exercise of all dilutive
instruments. The weighted average number of common shares was 23,586,650.

RESULTS OF OPERATIONS

For the six months ended December 31, 2023, the Company incurred a net loss of
$79,651, compared to a net loss of $122,829 for the period ended December 31, 2022.

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DXSTORM.COM INC.

Management Discussion and Analysis For the Six Months Ended December 31, 2023 and 2022 (Form 51-102F1)

The Company routinely monitors its operations and costs associated with those operations, in order to better plan and implement its activities, taking into consideration the current economic climate and industry outlook. For the period ended December 31, 2023, the Company reported total operating expenses of $116,331 compared to $201,291 for the period ended December 31, 2022. This included general and administrative expenses (“G&A”) $90,045 compared to $102,223 for the period ended December 31, 2022. The following schedule describes the main components of G&A for the periods ended December 31, 2023 and 2022 :

periods ended December 31, 2023 and 20	22:
	2023	2022
Periods ended December 31(CDN$)	$	$
Administrative	29,131	41,704
Rent	60,000	60,000
Foreign exchange (gain)loss	(18)	(38)
Amortization	580	557
Bad debts expenses	352	-
	90,045	102,223

Overall general and administrative expenses decreased $12,178 compared to the period
ended December 31, 2022.

SECOND QUARTER RESULTS

For the second quarter ended December 31, 2023, the Company recorded a net loss of
42,264, compared to a net loss of 72,547 for the same quarter the previous year.

SELECTED QUARTERLY INFORMATION

		Quarter Ended
	Dec 31,	Sep 30,	Jun 30,	Mar 31,
	2023	2023	2023	2023
Total Assets	$28,041	$21,588	$20,952	$69,768
Capital Assets	3,239	3,529	3,819	4,337
Working Capital	(814,494)	(772,520)	(735,423)	(695,018)
Shareholders’ Equity	(851,255)	(808,991)	(771,604)	(730,681)
Revenue	19,182	17,498	(36,377)	36,055
Net (Loss)	(42,264)	(37,387)	(40,923)	(44,791)
(Loss)/share	(0.002)	(0.002)	(0.000)	(0.002)

______________________________________________________________________________________

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DXSTORM.COM INC.

Management Discussion and Analysis

For the Six Months Ended December 31, 2023 and 2022

(Form 51-102F1)

		Quarter Ended
	Dec 31,	Sep 30,	Jun 30,	Mar 31,
	2022	2022	2022	2022
Total Assets	$61,933	$71,304	$41,608	$98,466
Capital Assets	3,660	3,930	3,713	4,111
Working Capital	(649,549)	(577,272)	(526,773)	(561,543)
Shareholders’ Equity	(685,889)	(613,342)	(553,060)	(597,432)
(Loss) Revenue	38,932	39,530	(30,887)	41,981
Net (Loss)	(72,547)	(50,282)	(65,628)	(64,244)
(Loss)/share	(0.003)	(0.002)	(0.003)	(0.003)

Earnings per share vary with the volume of client-specific work and custom
programming.  Therefore, earnings per share will continue to fluctuate in the future.

LIQUIDITY AND RESOURCES

The Company had a working capital deficit of $814,494 (June 30, 2023 – deficit of
$735,423) and cash balance of $18,027 (June 30, 2023 - $10,752).

SHARE CAPITAL

Issued and outstanding: June 30, 2023 – 23,586,650;
Issued and outstanding: February 28 , 2024 – 23,586,650;

Warrants outstanding: June 30, 2023 – NIL;
Warrants outstanding: February 28, 2024 – NIL;

Options outstanding: June 30, 2023 – NIL;
Options outstanding: February 28, 2024 – NIL.

Additional information related to the Company is available for view on SEDAR at
www.sedar.com.

OFF-BALANCE SHEET TRANSACTIONS

The Company does not have any off-balance sheet arrangements.

COMPENSATION

No any compensation arrangements made directly or indirectly with Directors and
Officers of the Company during the period.

RELATED PARTY TRANSACTIONS

All transactions with related parties have occurred in the normal course of operations
and are measured at the exchange amount, which is the amount of consideration
established and agreed to by the related parties:

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DXSTORM.COM INC.

Management Discussion and Analysis

For the Six Months Ended December 31, 2023 and 2022

(Form 51-102F1)

During the period ended December 31, 2023, the Company incurred transactions with
related parties:

a.The Company incurred the following transactions with a corporation controlled by
an officer and director:

December 31,2023 December 31,2022
Rent     $  60,000        $  60,000

     Rent is month to month.

 b.  The loan is due to a director and is non-interest bearing and payable on demand.

ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES

These unaudited consolidated interim financial statements have been prepared in
accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the
International Accounting Standards Board (“IASB”) and Interpretations issued by the
IFRS Interpretations Committee (IFRICs). Accordingly, they do not include all of the
information required for full annual financial statements by International Financial
Reporting Standards (“IFRS”) for complete financial statements for yearend reporting
purpose. Results for the period ended December 31, 2023, are not necessarily
indicative of future results.

The Company operates in one segment defined as the cash generating unit (“CGU”) which
is North America. These financial statements were authorized for issue by the Board of
Directors on February 28, 2024.

The principal accounting policies applied in the preparation of the Company’s
unaudited consolidated financial statements are set out below:

(a) Basis of measurement

The Company’s unaudited consolidated financial statements have been prepared on a
historical cost basis (except for the revaluation of financial instruments to fair
value), in accordance with International Financial Reporting Standards (IFRS”), as
issued by the International Accounting Standards Board that are published at the time
of preparation and are effective on December 31, 2023.

(b) Significant accounting judgments and estimates

The preparation of the unaudited consolidated financial statements requires management
to make certain estimates, judgments and assumptions that affect the reported amounts
of assets and liabilities at the date of the consolidated financial statements and
reported amounts of expenses during the reporting period. Actual outcomes could differ
from these estimates. These consolidated financial statements include estimates which,
by their nature, are uncertain. The impacts of such estimates are pervasive throughout
the consolidated financial statements, and may require accounting adjustments based on

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DXSTORM.COM INC.

Management Discussion and Analysis

For the Six Months Ended December 31, 2023 and 2022
(Form 51-102F1)

future occurrences. Revisions to accounting estimates are recognized in the period in
which the estimate is revised and future periods if the revision affects both current
and future periods. These estimates are based on historical experience, current and
future economic conditions and other factors, including expectations of future event
that are believed to be reasonable under the circumstances.

Critical accounting estimates

Significant assumptions about the future and other sources of estimation uncertainty
that management has made at the financial position reporting date, that could result
in a material adjustment to the carrying amounts of assets and liabilities, in the
event that actual results differ from assumptions made, relate to, but are not
limited to, the following:

• the estimated fair value of non-financial assets which are included in the statement of financial position which are based on numerous assumptions may differ from actual fair values. These differences may have a material impact in

 the Company`s financial position;

• the estimated fair value for accounts receivable that is determined by estimating the uncollectable amount which is recorded in the allowance for doubtful accounts based on the financial condition of its customers, the aging of the receivables, the current business environment and historical experience.

• the estimated useful lives and residual value of equipment which are included in the consolidated statement of financial position and the related depreciation included in profit or loss;

• the inputs used in accounting for share based payment transactions in profit or loss;

FINANCIAL INSTRUMENTS

The Company's financial instruments consist of cash, accounts receivable, accounts
payable and accrued liabilities, and deferred revenue.  Unless otherwise noted, it is
management's opinion that the Company is not exposed to significant interest or credit
risks arising from these financial instruments. The fair values of these instruments
approximate their carrying values, unless otherwise noted.

DIVIDEND POLICY

No dividends have been paid on any shares of the Company since the date of its
incorporation, and it is not contemplated that any dividends will be paid in the
immediate or foreseeable future.

DISCLOSURE OF INTERNAL CONTROLS

Management has established processes, which are in place to provide them sufficient
knowledge to support management representations that they have exercised reasonable
diligence that (i) the consolidated financial statements do not contain any untrue

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DXSTORM.COM INC.

Management Discussion and Analysis

For the Six Months Ended December 31, 2023 and 2022
(Form 51-102F1)

statement of material fact or omit to state a material fact required to be stated or
that is necessary to make a statement not misleading in light of the circumstances
under which it is made, as of the date of and for the months presented by the
consolidated financial statements, and (ii) the consolidated financial statements
fairly present in all material respects the financial condition, results of operations
and cash flows of the Company, as of the date of and for the months presented by the
consolidated financial statements.

In contrast to the certificate required under Multilateral Instrument 52 -109
Certification of Disclosure in Issuers' Annual and Interim Filings (MI 52-109); the
Company utilizes the Venture Issuer Basic Certificate, which does not include
representations relating to the establishment and maintenance of disclosure controls
and procedures (DC&P) and internal control over financial reporting (ICFR), as defined
in MI 52-109. In particular, the certifying officers filing the Certificate are not
making any representations relating to the establishment and maintenance of:

 (i) 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

 (ii) 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 GAAP. The Company’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 this certificate.

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 MI 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.

CONFLICTS OF INTEREST

There are potential conflicts of interest to which the directors and officers of the
Company will be subject in connection with the operations of the Company. Some of the
directors and officers have been and will continue to be engaged in the identification
and evaluation, with a view to potential acquisition of interests in businesses and
corporations on their own behalf and on behalf of other corporations and situations
may arise where the directors and officers will be in direct competition with the
Company. Conflicts, if any, will be subject to the procedures and remedies under the
Business Corporations Act (Ontario).

RISKS AND UNCERTAINTIES

The Company is selling and developing products and services for new and emerging
markets and as a result faces a number of risks, some of which are outlined below.

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DXSTORM.COM INC.

Management Discussion and Analysis

For the Six Months Ended December 31, 2023 and 2022
(Form 51-102F1)

Competition - it is possible that new competitors will enter the marketplace.  Such
competitors may be able to expand their services more quickly, adapt more swiftly to
new or emerging technologies and changes in customer requirements.  Accordingly, the
entry of new competitors could have a material adverse effect on our business,
financial conditions, and overall results of operations.

Emerging Markets and Technology - The market for the Company's products is still
emerging and continued growth and demand for and acceptance of these products remains
uncertain.  In addition, other emerging technology and markets may impact the
viability of the market for the Company's products.  The Company's continued success
will depend upon its ability to keep pace with technological and marketplace change
and to introduce on a timely and cost effective basis, new and enhanced products that
satisfy changing customer requirements and achieve market acceptance.

Statements in this report that are not historical facts are forward-looking statements
involving known and unknown risks and uncertainties, which could cause actual results
to vary from these statements.

FUNDING REQUIREMNTS

In order to move forward with its activities, the Company may require additional
funding. There can be no guarantee that such funds will be available as and when
required or, if available, be accessible on reasonable commercial terms.

The Company may issue shares in order to provide financing to existing projects,
finance other projects, or provide working capital.

RELIANCE ON MANAGEMENT

The Company anticipates that it will be heavily reliant upon the experience and
expertise of management with respect to the further development of digital medical
software solutions and the business of providing online shopping carts. The loss of
any one of their services or their inability to devote the time required to
effectively manage the affairs of the Company could adversely affect the Company.

AUDITORS, TRANSFER AGENT AND REGISTRAR

The auditors of the MS Partners LLP, Chartered Professional Accountants of Toronto,
Ontario. The Transfer Agent and Registrar for the Common Shares of the Company is
Computershare Investor Services Inc. of Vancouver, BC.

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