Fongo Inc.

Financial Summary — Confidential

Confidential — For Banking Purposes Only
Fongo Inc.

Fongo Inc.

Financial Summary — Fiscal Year Ended December 31, 2025
Accrual Basis · All figures in CAD
Total Revenue
$4.76M
Gross Profit
$3.55M
Net Income
$595K
Gross Margin
74.6%
Net Margin
12.5%
Cash Position
$120K
Revenue Analysis
Breakdown by business segment

Revenue Mix

Revenue by Segment ($)

Income Statement
For the year ended December 31, 2025
DescriptionAmount ($)
Revenue
Home Phone2,349,422
Mobile1,704,136
Fongo Works357,418
Internet256,437
Wireless95,244
Other Revenue(1,272)
Total Revenue4,761,385
Cost of Goods Sold
Intercompany Telecom Services373,636
Commission Expense239,352
Internet (wholesale)204,447
Wireless Charges123,227
Hosting105,034
Freight & Shipping74,523
SMS Fees42,936
Advertising & Promotion41,494
Dry Loop3,754
Sales Subscriptions795
Total COGS1,209,198
Gross Profit3,552,187
Operating Expenses
Employment & Benefits1,095,688
Consulting & Outsourcing930,592
Development (Outsourcing)226,847
Office Rent/Lease165,139
Merchant & Bank Fees160,635
Professional Fees117,668
Dev Hardware & Software60,454
Insurance57,684
Office Expenses & Supplies44,376
CCTS Complaint Fees36,063
Repairs & Maintenance32,545
Subscriptions & Software30,772
Meals & Entertainment12,933
Travel & Transport10,745
Professional Development6,248
General & Admin2,066
Communication2,054
Motor Vehicle1,498
Total Operating Expenses2,994,007
Operating Income558,180
Other Income (net)37,196
Net Income595,377
Balance Sheet
As of December 31, 2025
DescriptionAmount ($)
Assets
Current Assets
Cash & Cash Equivalents119,774
Accounts Receivable (net)133,631
Prepaid Expenses854
Deferred Costs (Wireless)17,107
Payroll Advance Receivable3,750
Total Current Assets275,115
Intercompany & Related Party Receivables
Due from Jody Schnarr (Shareholder Loan)430,085
Due from 9090975 Canada Inc.174,116
Due from Schnarr Family Holdings141,470
Due from 833159 Canada Corp (Rack & Data)108,628
Due from Nucleus AI85,000
Due from Nucleus Technologies28,634
Government Remittance Receivable78,711
Due from Related Party410
Total Intercompany Receivables1,047,053
Property, Plant & Equipment
Computer Hardware (net)32,179
Computer Equipment6,786
Equipment (net)98,095
Furniture & Fixtures (net)560
Motor Vehicle197,625
Total PP&E335,246
Intangible Assets (Domain Names)30,452
Net Tax Receivable104,358
Total Assets1,792,224
Liabilities
Current Liabilities
Accounts Payable191,862
Credit Card Payable2,269
Accrued Liabilities48,818
Deferred Revenue377,759
Total Current Liabilities620,709
Long-term Liabilities
Vehicle Loan138,404
Total Long-term Liabilities138,404
Total Liabilities759,113
Equity
Capital Stock2,666,779
Contributed Surplus221,892
Accumulated Deficit(2,470,421)
Current Year Net Income595,377
Total Equity1,013,627
Total Liabilities & Equity1,772,740
Key Financial Ratios
Performance and health indicators
Gross Margin74.6%
Net Margin12.5%
Debt-to-Equity0.75x
Total Assets$1.79M
Total Equity$1.01M
Deferred Revenue$377,759
SR&ED Receivable$113,667
Revenue$4.76M
Cash Position$119,774
Prepared by HelloFinance — Confidential — For Banking Purposes Only
Fongo Inc. · Fiscal Year Ended December 31, 2025 · Accrual Basis