UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
OR
For the transition period from: _____________ to ______________
Commission File Number:
(Exact name of registrant as specified in its charter)
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or other jurisdiction of incorporation or organization) |
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant as of the last business day of the registrant’s most recently completed second fiscal quarter was approximately $0.
As of May 20, 2026, there were
TABLE OF CONTENTS
i
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
COLLAB Z INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2026 AND SEPTEMBER 30, 2025
(Unaudited)
| March 31, | September 30, | ||||||||
| 2026 | 2025 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash | $ | $ | |||||||
| Restricted cash | |||||||||
| Accounts receivable - related parties | |||||||||
| Accounts receivable | |||||||||
| Due from related parties | |||||||||
| Prepaid expenses and other current assets | |||||||||
| Subscription receivable | |||||||||
| Loan receivable | |||||||||
| Total current assets | |||||||||
| Deferred offering costs | |||||||||
| Investment in joint ventures | |||||||||
| Intangible assets, net | |||||||||
| Total assets | $ | $ | |||||||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable and accrued expenses | $ | $ | |||||||
| Deferred revenue | |||||||||
| Due to related parties | |||||||||
| Dividend payable | |||||||||
| Total current liabilities | |||||||||
| Future equity obligations | |||||||||
| Total liabilities | |||||||||
| Commitments and contingencies (Note 11) | |||||||||
| Mezzanine equity: | |||||||||
| Redeemable convertible preferred stock, $ | |||||||||
| Common stock subject to possible redemption, $ | |||||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, $ | |||||||||
| Preferred stock, $ | |||||||||
| Common stock, $ | |||||||||
| Additional paid-in capital | |||||||||
| Retained earnings | |||||||||
| Total stockholders’ equity | |||||||||
| Total liabilities, mezzanine equity and stockholders’ equity | $ | $ | |||||||
See accompanying notes to these financial statements.
1
COLLAB Z INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue - related parties | $ | $ | $ | $ | ||||||||||||
| Revenue | ||||||||||||||||
| Total revenue | ||||||||||||||||
| Cost of revenue | ||||||||||||||||
| Gross profit | ||||||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Income from operations | ||||||||||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | ||||||||||||||||
| Interest expense | ( | ) | ( | ) | ||||||||||||
| Loss on joint ventures | ( | ) | ( | ) | ||||||||||||
| Other income | ||||||||||||||||
| Total other income (expense) | ( | ) | ||||||||||||||
| Provision for income taxes | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | ||||||||||||||||
| Diluted | ||||||||||||||||
| Net income per common share | ||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||
See accompanying notes to these financial statements.
2
COLLAB Z INC.
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(Unaudited)
| Preferred Stock | Common Stock Subject to Possible | Preferred Stock | Preferred Stock | Additional | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| Series C | Redemption | Series B | Series X | Common Stock | Paid-in | Retained | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | Earnings | Equity | ||||||||||||||||||||||||||||||||||||||||
| Balances at September 30, 2024 | $ | $ | $ | $ | | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Contributions | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Balances at December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued pursuant to investment in joint venture | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Balances at March 31, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
| Balances at September 30, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
| Contributions | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Balances at December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of Series C preferred stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Balances at March 31, 2026 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to these financial statements.
3
COLLAB Z INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(Unaudited)
| For the Six Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Amortization | ||||||||
| Loss on joint ventures | ||||||||
| Non-cash equity contributions | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable - related parties | ( | ) | ( | ) | ||||
| Accounts receivable | ( | ) | ||||||
| Prepaid expenses | ( | ) | ||||||
| Interest receivable | ( | ) | ||||||
| Accounts payable and accrued expenses | ||||||||
| Deferred revenue | ||||||||
| Net cash (used in) provided by operating activities | ( | ) | ||||||
| Cash flows from investing activities: | ||||||||
| Due from related parties, net of repayment | ( | ) | ||||||
| Capitalized software development | ( | ) | ( | ) | ||||
| Issuance of loan receivable | ( | ) | ||||||
| Repayments of loan receivable | ||||||||
| Net cash provided by investing activities | ||||||||
| Cash flows from financing activities: | ||||||||
| Due to related parties, net of repayment | ( | ) | ||||||
| Proceeds from line of credit | ||||||||
| Repayment of line of credit | ( | ) | ||||||
| Subscription receivable | ||||||||
| Deferred offering costs | ( | ) | ( | ) | ||||
| Issuance of Series C preferred stock | ||||||||
| Dividend paid | ( | ) | ||||||
| Net cash provided by (used in) financing activities | ( | ) | ||||||
| Net change in cash | ( | ) | ||||||
| Cash and restricted cash at beginning of period | ||||||||
| Cash and restricted cash at end of period | $ | $ | ||||||
| Reconciliation of cash and restricted cash: | ||||||||
| Cash at beginning of period | $ | $ | ||||||
| Restricted cash at beginning of period | ||||||||
| Cash and restricted cash at beginning of period | $ | $ | ||||||
| Cash at end of period | $ | $ | ||||||
| Restricted cash at end of period | ||||||||
| Cash and restricted cash at end of period | $ | $ | ||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for income taxes | $ | $ | ||||||
| Cash paid for interest | $ | $ | ||||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Preferred stock dividends included in mezzanine equity | $ | $ | ||||||
| Shares issued pursuant to investment in joint venture | $ | $ | ||||||
| Deferred offering costs included in accrued expenses | $ | $ | ||||||
See accompanying notes to these financial statements.
4
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – NATURE OF OPERATIONS
Collab Z Inc. (the “Company”) was formed on
In December 2024, Collab CA became a direct, wholly owned subsidiary of the Company as a result of the closing of the Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the “Reorganization Agreement” or “Reorganization”). Pursuant to the Reorganization Agreement, the sole member of Collab CA exchanged
The Reorganization was being accounted for as a reorganization of entities under common control by a control group. The accompanying financial statements have been presented to retroactively present the effect of the Reorganization. See Note 3 for further detail.
Collab CA is the main operating subsidiary engaged in various real estate services, including property management, construction and renovation management, as well as EB-5 immigration investor services and consulting services. Collab Z Inc., and its subsidiary, Collab CA, are at the forefront of the PropTech industry. The Company aims to transform property management by integrating community involvement and artificial intelligence to directly connect tenants with management tasks, eliminating intermediaries and enhancing efficiency.
The Company’s headquarters are located in Berkeley, California.
NOTE 2 – GOING CONCERN
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 had $
The Company is early-stage, and expects to incur significant costs to expand its operations and conduct its business plan, which may result in future losses if it cannot effectively market its products and achieve market acceptance.
Management’s Plans
We believe substantial doubt has been alleviated for a period of at least 12 months from the date the financial statements are issued based on the following:
The net due to and from related parties’ balances at March 31, 2026, which are expected to be fully collected and paid, provide for a net positive effect to cash of approximately $
5
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules of the SEC and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, as filed with the SEC on December 23, 2025. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended September 30, 2025, as reported in the Company’s Annual Report on Form 10-K have been omitted.
The unaudited condensed consolidated financial statements represent a) the historical operations of Collab CA, which was formed on November 25, 2019, b) the historical operations of Collab Living LLC (“Collab Living”), a Delaware limited liability company formed on May 15, 2023, c) the initial capital structure of Collab Z, which was completed upon the Reorganization (see Note 1), and d) the results of Collab Z, which solely consisted of the issuance of shares (see Note 8).
In accordance with ASC 805-50-15-6, the Company determined that the share exchange was a reorganization of entities under common control. Collab Z and Collab CA maintained common control for the entire period for which the financial statements are presented through the Reorganization. The Company concluded that the entities were under common control via common ownership and common management. Specifically, the founder and former managing member of Collab CA is the founder and former Chairman of the Company and along with the YRQ Trust for which the trustees and beneficiaries are immediate family members, make up a control group that held voting and management control of Collab CA and the Company prior to and after the Reorganization
Therefore, in accordance with ASC 250-10-45 and ASC 805-50-45, the financial statements required retrospective consolidation of the entities for all periods presented. The financial statements as of March 31, 2026 and September 30, 2025 and for the three and six months ended March 31, 2026 and 2025 are prepared on a consolidated basis which includes Collab CA and Collab Living.
Principles of Consolidation
The Company evaluates its relationships with other entities to identify whether they are variable interest entities (“VIE”) as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated. The Company evaluated whether it was the primary beneficiary with its various related party entities it transacts with, and determined it is not the primary beneficiary of any entities.
Collab Living is 50% owned by Collab CA, and it was determined that Collab CA was the primary beneficiary in 2025 and 2024. Per ASC 810-10-50, the Company concluded that Collab CA was the primary beneficiary via its obligation to absorb losses (i.e. non-substantive voting rights) and its power to direct activities that most significantly impact Collab Living’s economic performance. Historically, Collab CA has funded the operations of Collab Living and Collab CA’s management has directed all Living’s activities.
In accordance with ASC 810-10-45-25, Collab Living’s results are consolidated within the Company’s financial statements. The separate assets, liabilities and results of operations of Collab Living are immaterial. Furthermore, the balance of non-controlling interests was nominal as of March 31, 2026 and September 30, 2025.
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, valuation of common stock and related stock-based compensation. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.
6
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Concentration of Credit Risk
The Company’s cash and cash equivalents are held at major financial institutions which are deemed credit worthy, in amounts that may at times exceed federally insured limits.
Restricted Cash
The Company classifies as restricted cash any cash and cash equivalents that are legally or contractually restricted as to withdrawal or use. During the six months ended March 31, 2026, the Company issued shares of Series C convertible preferred stock and the related cash proceeds were deposited by the investors directly into a segregated escrow account pursuant to the related Securities Purchase Agreement. The escrowed funds will be released to the Company only upon consummation of a Qualified Public Offering and otherwise are returned to the investors upon a redemption or termination event under the agreement. The escrowed balance is classified as current restricted cash because the contingencies governing release or return resolve within twelve months of the balance sheet date. As of March 31, 2026, restricted cash totaled $
Interest earned on escrowed funds is recognized as interest income with a corresponding increase to restricted cash. The Company reconciles cash, cash equivalents, and restricted cash at the beginning and end of the period in the consolidated statement of cash flows in accordance with ASC 230-10-45-24 (ASU 2016-18).
Deferred Offering Costs
The Company complies with the requirements of Accounting Standards Codification (“ASC”) 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed. As of March 31, 2026 and September 30, 2025, the Company has $
Investment in Joint Ventures
In March and April 2025, the Company entered into five separate limited liability company agreements (collectively, the “Joint Venture Agreements”) with five unaffiliated entities to form joint venture companies in Nevada, wherein the Company holds a
The Company holds investments in multiple joint ventures, all of which are accounted for under the equity method in accordance with ASC 323, Investments—Equity Method and Joint Ventures. The Company exercises significant influence, but does not have a controlling financial interest, in each of these joint ventures. Accordingly, the investments are initially recorded at cost and subsequently adjusted for the Company’s proportionate share of each joint venture’s net income or loss and other comprehensive income. The carrying amounts of these investments are evaluated for impairment in accordance with ASC 323-10-35 when events or changes in circumstances indicate that a decline in value may have occurred.
The Company evaluated the joint venture agreement under ASC 810 and determined it was not the primary beneficiary. As such, the Company accounted for the investment under ASC 323 as noted above.
As of March 31, 2026, the carrying value of the investment was $
7
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Fair Value Measurements
Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
| ● | Level 1—Quoted prices in active markets for identical assets or liabilities. |
| ● | Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. |
| ● | Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |
The carrying values of the Company’s assets and liabilities approximate their fair values. See Note 5 for fair value measurement disclosures.
Related Parties
Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries. The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
Accounts Receivable
The Company has accounts receivable with both related and third-party customers. Accounts receivable is recorded at the invoiced amount or earned fees pursuant to the agreement; are non-interest bearing and are stated at the historical carrying amount net of write-offs and allowances for uncollectible accounts. The Company establishes an allowance for uncollectible accounts based on historical experience and any specific customer collection issues that the Company has identified. There was no allowance for uncollectible accounts at March 31, 2026 and September 30, 2025.
Capitalized Software Development
The Company capitalizes certain costs related to the development of its property management system pursuant to ASC 350-40. Costs incurred during the development phase are capitalized only when it is deemed probable that the development will result in new or additional functionality. The Company determined that its customization efforts to existing software significantly enhanced functionality, involved substantial development effort and integrated with existing systems. As such, the Company capitalized these costs during the development phase. Costs associated with the preliminary project planning phase and the post-implementation phase are expensed as incurred. The capitalized development costs are amortized on a straight-line basis over the estimated useful life of the asset.
The system, which is expected to be the backbone of the Company’s property management service, was developed between November 2023 and August 2024, at which point it was ready for use. The Company began amortizing the costs over a three-year period starting in August 2024. Furthermore, in 2025 the Company began capitalizing another internally developed application. As of March 31, 2026, the application was not yet placed in service and therefore amortization has not commenced. See Note 6.
8
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Revenue Recognition
The Company recognizes revenue from services in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when or as the Company’s performance obligations are satisfied by transferring control of the promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps as prescribed by ASC 606:
| (i) | identify the contract(s) with a customer; |
| (ii) | identify the performance obligations in the contract; |
| (iii) | determine the transaction price; |
| (iv) | allocate the transaction price to the performance obligations in the contract; and |
| (v) | recognize revenue when (or as) the entity satisfies performance obligations. |
The Company only applies the five-step model to contracts when it is probable that it will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company has applied ASC 606 on a portfolio basis. The Company has elected the practical expedients, allowing the recognition of incremental costs of obtaining a contract as an expense when incurred, and not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.
The Company generates revenue through the following streams:
Property Management
The Company provides property management services for rental properties that include various elements based on the underlying contractual agreement. The Company earns a fixed percentage of monthly lease income. This revenue is recognized on an ongoing, monthly basis. The Company earns additional fees based on a fixed percentage of property-related expenses such as repairs and maintenance at the time the underlying costs are incurred. The Company, at times, is also eligible to earn commissions on the first month of a new lease agreement. Certain managed properties include a profit share arrangement based on guaranteed rental income whereby the Company shares in the excess rental income over the guaranteed amounts. Any losses incurred under these guarantees have historically been netted against accounts receivable and have not been material. The Company recognizes this revenue at the point in time the excess rental income is known. The Company recognizes this revenue monthly, when the profit share information becomes known.
Development and Construction Management
The Company provides services consisting of the oversight of property development and construction projects, including budget monitoring and timeline management. Development fees are recognized on an ongoing monthly basis through the completion of the service period.
Procurement
The Company facilitates procurement of materials and supplies for construction projects as well as provides related services for design of procured goods. Procurement fees related to ordered goods are recognized at a point in time upon the completion of the procurement service, which is shipment of the related materials. Revenue for design services are recognized at point in time when the related services are complete.
9
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Renovation Management
Renovation management services include assisting in the acquisition, renovation, and disposition of properties. Renovation fees are recognized on an ongoing, monthly basis through the completion of the service period, which is based on the time elapsed of the renovation project. The Company also earns renovation service fees, which are recognized over time as the project progresses based on the actual costs incurred of the underlying renovation project. Acquisition and disposition fees are recognized at a point in time after the acquisition of the property.
EB-5 Immigration Investor Services
The Company identifies EB-5 immigration investment projects and assists investors with project identification, assistance and support during the project application process. Fees are recognized at a point in time upon the fulfillment of the EB-5 service obligations, which is when the EB-5 application package has been submitted. Payments are typically billed in two tranches, and any deferred revenue is recognized once performance obligations are met.
Consulting Services
The Company provides other real estate consulting services to both related and third parties that are defined by respective service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized over time as the deliverables are satisfied, or at a point in time if the contract calls for a defined deliverable. Each contract is assessed for performance obligations. There is generally no right of refund related to these services.
Each revenue source above is a different type of service being performed, and distinct from the other performance obligations.
Disaggregation of Revenue
A disaggregation of revenue for the three and six months ended March 31, 2026 and 2025 is as follows:
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Property management | $ | $ | $ | $ | ||||||||||||
| Development and construction management | ||||||||||||||||
| Procurement | ||||||||||||||||
| Consulting services | ||||||||||||||||
| Revenue - related parties | ||||||||||||||||
| Consulting services | ||||||||||||||||
| Property management | ||||||||||||||||
| Revenue | ||||||||||||||||
| Total revenue | $ | $ | $ | $ | ||||||||||||
10
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Deferred revenue primarily represents customer billings on EB-5 contracts for services not yet rendered or procurement services where shipment of goods has not occurred. EB-5 services generally require several months between the time of agreement with the customer and the completion of performance obligations. As of March 31, 2026 and September 30, 2025, the Company has deferred revenue of $
The following table summarizes the deferred revenue balance as of March 31, 2026 and September 30, 2025:
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Balance, beginning | $ | $ | ||||||
| New service contracts | ||||||||
| Revenue recognized | ( | ) | ||||||
| Balance, ending | $ | $ | ||||||
Concentrations
During the six months ended March 31, 2026 and 2025,
As of March 31, 2026 and September 30, 2025,
To date the Company has been highly dependent on related party customers as its primary source of revenue and cash flows from operations. The Company may be negatively affected by the loss of one of these customers, or a change in the related party relationship.
Future Equity Obligations
The Company has issued Simple Agreements for Future Equity (“SAFEs”) in exchange for cash financing. These amounts are classified as future equity obligations, which are long-term liabilities on the consolidated balance sheets. The Company has accounted for its SAFE investments as liability derivatives for which the Company will record changes to fair value through earnings.
Common Stock Subject to Redemption
The Company accounts for its shares of common stock subject to possible redemption in accordance with the guidance enumerated in ASC 480. Shares subject to mandatory redemption are classified as a liability instrument and is measured at fair value. Conditionally redeemable common shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control are classified as temporary equity. At all other times, common shares are classified as stockholders’ equity. The shares of common stock issued pursuant to the Joint Venture Agreements (see above and Note 8) feature certain redemption rights subject to the occurrence of uncertain future events, including the Company’s contemplated future public offering, and therefore are classified within temporary or mezzanine equity.
Redeemable Convertible Preferred Stock
The Company accounts for redeemable convertible preferred stock in accordance with ASC 480 and ASC 480-10-S99-3A. Convertible preferred stock that embodies an unconditional obligation to redeem on a specified date or upon an event certain to occur is classified as a liability and measured at fair value pursuant to ASC 480-10-25-4. Convertible preferred stock that embodies a conditional obligation to redeem upon an event not certain to occur, where redemption is at the option of the holder or may occur upon an event not solely within the Company’s control, is classified as temporary (mezzanine) equity in accordance with ASC 480-10-S99-3A. Such instruments are initially recognized at issuance proceeds, less direct issuance costs.
11
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
When an instrument classified as temporary equity is currently redeemable or its redemption is probable, the carrying amount is adjusted to redemption value at each reporting date pursuant to ASC 480-10-S99-3A.15, with the offset recorded against retained earnings (or, in the absence of retained earnings, additional paid-in capital). Adjustments to the carrying amount are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings per share. If the condition resolves in favor of redemption, the instrument is reclassified to a liability at fair value pursuant to ASC 480-10-25-7.
Convertible preferred stock, the redemption of which is solely within the Company’s control, is classified within permanent stockholders’ equity. The Company’s Series C Convertible Preferred Stock (see Note 9) is classified as mezzanine equity in accordance with the foregoing policy.
Stock-Based Compensation
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. For awards with service-based vesting conditions, the Company records the expense for using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.
The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient’s costs are classified.
The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.
Subscription Receivable
The Company records stock issuances at the effective date. If the subscription is not funded upon issuance, the Company records a subscription receivable as an asset on a balance sheet. When subscription receivables are not received prior to the issuance of financial statements at a reporting date in satisfaction of the requirements under FASB ASC 505-10-45-2, the subscription is reclassified as a contra account to stockholders’ equity on the balance sheet.
Net Income per Share
Net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Adjustments to the carrying amount of redeemable equity securities classified as temporary equity, including accretion to redemption value (which for the Series C Convertible Preferred Stock includes accrued cumulative dividends), are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive.
As of March 31, 2026 and September 30, 2025, there were an indeterminable number of shares that were potentially dilutive based on the Company’s outstanding future equity obligations for which conversion is contingent on a future event (see Note 7).
As of March 31, 2026, the Company had
12
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following table sets forth the computation of basic and diluted income per share:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Numerator: | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Less: Preferred stock dividends | ||||||||||||||||
| Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||
| Denominator: | ||||||||||||||||
| Denominator for basic EPS – weighted average shares | ||||||||||||||||
| Basic | ||||||||||||||||
| Denominator for diluted EPS – weighted average shares | ||||||||||||||||
| Basic | ||||||||||||||||
| Plus: Effect of dilutive securities | ||||||||||||||||
| Diluted | ||||||||||||||||
| Net income per common share | ||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||
Diluted earnings per share for the three and six months ended March 31, 2026 was computed as $
Segment Reporting
In accordance with ASC 280, Segment Reporting (“ASC 280”), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker (“CODM”), or group, in deciding how to allocate resources and assess performance.
The key measures of segment profit or loss reviewed by our CODM are consolidated net income or loss. These metrics are reviewed and monitored by the CODM to manage and forecast cash. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.
13
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 – LOAN RECEIVABLE
In November 2024, the Company loaned $
In December 2024, the Company loaned an additional $
During the three and six months ended March 31, 2026, the Company recognized interest income of $
During the six months ended March 31, 2026, the Company received repayments totaling $
NOTE 5 – FAIR VALUE MEASUREMENTS
The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:
| Fair Value Measurements as of March 31, 2026 Using: | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Liabilities: | ||||||||||||||||
| Future equity obligations | $ | $ | $ | $ | ||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Fair Value Measurements as of September 30, 2025 Using: | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Liabilities: | ||||||||||||||||
| Future equity obligations | $ | $ | $ | $ | ||||||||||||
| $ | $ | $ | $ | |||||||||||||
The Company measures the simple agreements for future equity at fair value based on significant inputs not observable in the market, which causes it to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the future equity obligations uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. Changes in the fair value of the simple agreements for future equity related to updated assumptions and estimates are recognized within the statements of operations.
14
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The simple agreements for future equity may change significantly as additional data is obtained, impacting the Company’s assumptions regarding probabilities of outcomes used to estimate the fair value of the liability. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. The estimates of fair value may not be indicative of the amounts that could be realized in a current market exchange. Accordingly, the use of different market assumptions and/or different valuation techniques may have a material effect on the estimated fair value amounts, and such changes could materially impact the Company’s results of operations in future periods.
The Company utilized a probability-weighted average approach based on the estimated market value of the underlying securities and the potential settlement outcomes of the simple agreements for future equity, including a liquidity event or future equity financing as well as other settlement alternatives. Both the market value of the underlying securities and the probability of the settlement outcomes include unobservable Level 3 inputs.
As of March 31, 2026 and September 30, 2025, the Company assumed a
The following table presents changes in future equity obligations for the six months ended March 31, 2026:
| Future equity | ||||
| obligations | ||||
| Outstanding as of September 30, 2025 | $ | |||
| Change in fair value | ||||
| Outstanding as of March 31, 2026 | $ | |||
NOTE 6 – INTANGIBLE ASSETS, NET
As of March 31, 2026 and September 30, 2025, intangible assets, net consisted of:
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Software development - property management system | $ | $ | ||||||
| Internally developed application | ||||||||
| Less: Accumulated amortization | ( | ) | ( | ) | ||||
| Intangible assets, net | $ | $ | ||||||
Amortization expense for the three months ended March 31, 2026 and 2025, was $
15
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Amortization expense for the six months ended March 31, 2026 and 2025, was $26,667 and $26,667, respectively, which is included in costs of revenues in the consolidated statements of operations.
As of March 31, 2026, the internally developed application was not yet placed in service and therefore amortization has not commenced.
NOTE 7 – DEBT
Revolving Line of Credit
On March 14, 2024, the Company entered into a revolving line of credit agreement with East West Bank for a principal amount of up to $
During the year ended September 30, 2025, the Company borrowed an aggregate of $
Future Equity Obligations
In April 2023, the Company entered into a SAFE agreement for proceeds of $
The SAFE will convert into equity upon the occurrence of a future qualified financing round of at least $
As of March 31, 2026 and September 30, 2025, the fair value of SAFEs was $
16
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 – STOCKHOLDERS’ EQUITY
The total number of shares of stock which the Company is authorized to issue is
In October 2024, the Company issued
Series B Preferred Stock
Pursuant to a Series B Certificate of Designation filed with the Secretary of State of Nevada on June 5, 2025, the Company is authorized to issue up to
During the year ended September 30, 2025, the Company issued an aggregate of
The Series B preferred stock has the following rights and preferences:
Automatic Conversion
Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering, Qualified Financing or Qualified Disposition, all of the outstanding shares of Series B preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B preferred stock by the Conversion Price.
Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering (public offering resulting in listing on a national exchange), Qualified Financing (equity financing greater than $
Conversion price - Each share of Series B Preferred Stock is convertible into shares of common stock based on its stated value, divided by a conversion price equal to
Accrual and Payment of Dividends
In the event the Qualified Public Offering is not consummated by March 31, 2026, dividends on such share of Series B preferred stock shall accrue, whether or not declared by the Board and whether or not there are funds legally available for the payment of dividends, at the rate of
17
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Liquidation
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a “Liquidation”), the holders of shares of Series B preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities by reason of their ownership thereof, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends on all such shares (whether or not declared).
In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series B preferred stock upon a Liquidation, the holders of shares of Series B preferred stock then outstanding shall be entitled to participate with the holders of shares of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of Junior Securities on an as-converted basis held by each holder as of immediately prior to the Liquidation, in the distribution of all the remaining assets and funds of the Company available for distribution to its stockholders.
If upon any Liquidation the remaining assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Series B preferred stock the full preferential amount to which they are entitled, (i) the holders of the shares shall share ratably in any distribution of the remaining assets and funds of the Company in proportion to the respective full preferential amounts which would otherwise be payable in respect of the Series B preferred stock in the aggregate upon such Liquidation if all amounts payable on or with respect to such shares were paid in full, and (ii) the Company shall not make or agree to make any payments to the holders of Junior Securities.
Voting
The Series B preferred stock are not entitled to any votes with respect to any and all matters presented to the stockholders of the Company for their action or consideration (whether at a meeting of stockholders of the Company, by written action of stockholders in lieu of a meeting or otherwise), except as provided by law.
Reissuance of Series B Preferred Stock
Any shares of Series B preferred stock converted or otherwise acquired by the Company shall be cancelled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.
Protective Provisions
No provision of the Series B Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series B preferred stock (a “Supermajority Interest”) and any such written amendment, modification, or waiver will be binding upon the Company and each holder of Series B preferred stock; provided, that no such action shall change or waive (a) the definition of Liquidation Value, or (b) the rate at which or the manner in which dividends on the Series B preferred stock accrue or accumulate or the times at which such dividends become payable without the prior written consent of each holder of outstanding shares of Series B preferred stock; provided, further, that no amendment, modification, or waiver of the terms or relative priorities of the Series B preferred stock may be accomplished by the merger, consolidation, or other transaction of the Company with another Company or entity unless the Company has obtained the prior written consent of the all of the holders of the Series B preferred stock.
18
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Redemption
The Series B designation allows for the shares to be redeemed solely at the discretion of the Company if an IPO has not commenced as of March 31, 2026 and provides for a window of repurchase. There are no circumstances in which the holder can force redemption.
Series C Preferred Stock
Pursuant to a Series C Certificate of Designation filed with the Secretary of State of Nevada in December 2025, the Company is authorized to issue up to
During the six months ended March 31, 2026, the Company issued an aggregate of
The Series C convertible preferred stock is redeemable for cash if (i) a Qualified Public Offering is not consummated on or before September 30, 2026, or (ii) the related Securities Purchase Agreement is terminated by the Company. Holders of the Series C convertible preferred stock have no right to require redemption. Because redemption may occur upon an event that is not solely within the Company’s control, the Series C convertible preferred stock is classified as temporary (mezzanine) equity If a Qualified Public Offering is not consummated by September 30, 2026, or the Board of Directors approves termination of the Securities Purchase Agreement, the Company will reclassify the Series C convertible preferred stock from temporary equity to a liability measured at fair value at that date.
The Company adjusts the carrying amount of the Series C convertible preferred stock to its redemption value at each reporting date. The redemption value equals the aggregate liquidation value plus all accrued and unpaid cumulative dividends. As of March 31, 2026, the redemption value of the Series C convertible preferred stock was $
Cumulative dividends are added to the carrying amount recorded as a deemed dividend and reduces income available to common stockholders.
The Series C preferred stock has the following rights and preferences:
Automatic Conversion
Pursuant to the Series C Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering (public offering resulting in listing on a national exchange), all of the outstanding shares of Series C preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series C preferred stock by the Conversion Price.
Conversion Price
Each share of Series C preferred stock is convertible into shares of common stock based on its stated value, divided by a conversion price equal to
19
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Liquidation
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a “Liquidation”), the holders of shares of Series C preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends (whether or not declared).
In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series C preferred stock upon a Liquidation, the holders of shares of Series C preferred stock then outstanding shall be entitled to participate with the holders of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of junior securities on an as-converted basis held by each holder as of immediately prior to the Liquidation.
If upon any Liquidation the remaining assets of the Company available for distribution are insufficient to pay the holders of the shares of Series C preferred stock the full preferential amount, (i) the holders shall share ratably in any distribution in proportion to the respective full preferential amounts, and (ii) the Company shall not make any payments to the holders of junior securities.
Voting
The Series C preferred stock is not entitled to any votes with respect to matters presented to stockholders, except as required by law.
Protective Provisions
No provision of the Series C Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series C preferred stock (a “Supermajority Interest”). Certain provisions, including those relating to liquidation value and dividends, require the consent of each holder.
The consent of the holders of a Supermajority Interest is also required for certain actions, including amendments to the Certificate of Designation, incurrence of significant indebtedness outside the ordinary course of business, and other actions that may adversely affect the rights of the Series C preferred stock.
20
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Reissuance of Series C Preferred Stock
Any shares of Series C preferred stock converted or otherwise acquired by the Company shall be cancelled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.
Series X Preferred Stock
Each share of Series X preferred stock is entitled to
The holders of the Series X preferred stock are not entitled to dividends.
The holders of the Series X preferred stock shall not be entitled to any liquidation preference and the shares are not subject to redemption. Upon the event of liquidation, dissolution or winding up of the Company, voluntary or involuntary, the holders of Series X preferred stock would be entitled to receive the initial stated value of the Company’s preferred stock.
The holders of the shares of Series X preferred stock shall not have any rights to convert such shares into, or exchange such shares for, shares of any other series or class of capital stock of the Company.
Common Stock
Each share of common stock entitles its holder to
Holders of common stock are entitled to receive ratably such dividends or other distributions, if any, as may be declared by the Board out of funds legally available.
In the event of the liquidation, dissolution or winding up of our business, the holders of common stock are entitled to share ratably in the assets available for distribution after the payment of all of debts and other liabilities, subject to the prior rights of the holders of the Company’s preferred stock.
Collab CA Equity Transactions
During the six months ended March 31, 2026 and 2025, the Company’s related party made contributions of $
The additions and contributions of Collab CA have been reflected in additional-paid in capital.
21
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Collab Z Equity Transactions
In March and April 2025, the Company acquired a
In the event that the Company fails to consummate an initial public offering of its securities (the “Collab IPO”) on or prior to December 31, 2026 (the “Collab IPO Deadline”):
| (a) | The joint venture partner shall have the option to: |
| (i) | Surrender all securities of the Company purchased pursuant to an equity sale; and |
| (ii) | Receive in exchange for such surrendered securities Collab’s member interests. |
| (iii) | The Company shall pay the joint venture partner an amount equal to the total capital contributions made by the joint venture partner as of the option exercise date minus the total distributions received by the joint venture partner as of the option exercise date. |
| (b) | The Company shall have the option to: |
| (i) | Surrender all its member’s interests; and |
| (ii) | Receive in exchange for such surrendered interests the securities of its member purchased pursuant to an equity sale. |
| (iii) | The Company shall pay the joint venture partner an amount equal to the total capital contributions made by the joint venture partner as of the option exercise date minus the total distributions received by the joint venture partner as of the option exercise date. |
| (c) | In the event that both the joint venture and the Company elect to exercise their respective options concurrently, the Company’s right to exercise shall take precedence. |
The shares issued pursuant to the Joint Venture Agreement were determined to contain certain redemption rights and subject to the occurrence of uncertain future events (the Collab IPO) pursuant to ASC 480, and therefore the value of $
The assumptions in estimating the fair value of common stock include the identification of comparable companies, observable multiples and appropriate discounts based on the facts and circumstances. The Company also considered the selling price of preferred financings relative to the convertible features of the underlying commons stock. These estimates are highly subjective. Management will be required to estimate fair value, until such point in time that the Company had observable transactions or its shares are quoted on an exchange.
22
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9 – STOCK-BASED COMPENSATION
Collab Z Inc. 2025 Equity Incentive Plan
The 2025 Equity Incentive Plan (the “2025 Plan”) permits the grant of awards, which provides for the grant of shares of stock options to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2025 Plan was
A summary of information related to stock options for the six months ended March 31, 2026 ais as follows:
| Options | Weighted Average Exercise Price | Intrinsic Value | ||||||||||
| Outstanding as of September 30, 2025 | $ | $ | ||||||||||
| Granted | ||||||||||||
| Exercised | ||||||||||||
| Forfeited | ||||||||||||
| Outstanding as of March 31, 2026 | $ | $ | ||||||||||
| Exercisable as of March 31, 2026 | $ | $ | ||||||||||
| Exercisable and expected to vest as of March 31, 2026 | $ | $ | ||||||||||
As of March 31, 2026, the weighted average duration to expiration of outstanding options was
stock-based compensation expense for stock options was recognized for the three and six months ended March 31, 2026 or 2025 as all granted options contain vesting conditions that are contingent upon an IPO. Total unrecognized compensation cost related to non-vested stock option awards amounted to $
23
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10 – RELATED PARTY TRANSACTIONS
Revenue and Accounts Receivable
During the three months ended March 31, 2026 and 2025, the Company earned revenues of $
These related parties are primarily properties for which the Company provides various real estate services, including property management, construction and development management, renovation services and consulting services. To date, the Company has also provided or received certain advances from these properties outside the normal revenue generating services, as noted below.
Due From / To Related Parties
Due from related parties includes a) cash advances made and b) expenses and other costs paid for on behalf of related parties. Due to related parties includes cash advances received from various related parties. The Company enters into these transactions based on the current working capital needs of the Company and these related entities. These advances are unsecured, due on demand and non-interest bearing.
The following is a summary of due from / to related parties:
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Due from related parties | ||||||||
| Customer properties with common control and management* | $ | $ | ||||||
| Entities with common control and management* | ||||||||
| YRQ Irrevocable Trust | ||||||||
| Due from related parties | $ | $ | ||||||
| Due to related parties | ||||||||
| Customer properties with common control and management* | $ | $ | ||||||
| Family member of former Chairman | ||||||||
| Due to related parties | $ | $ | ||||||
| * |
24
COLLAB Z INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
YRQ Irrevocable Trust
During the year ended September 30, 2025, the Company advanced $
As of March 31, 2026, YRQ has paid the advance all in full and there was no balance outstanding.
In 2024, YRQ, as part of a control group that maintained control over Collab CA, became the sole member of Collab CA on August 21, 2024. Upon the Reorganization, YRQ received
NOTE 11 – COMMITMENTS AND CONTINGENCIES
Minimum Rental Guarantee
The Company has a minimum rental guarantee for certain related party managed properties whereby the Company will pay the difference between the collected rent and the minimum rent guarantee. These guarantees require the Company to ensure a specified minimum gross revenue each month. Should the properties’ gross revenues fall below these thresholds, the Company is required to compensate for the shortfall. The maximum potential amount of future payments under these guarantees is estimated based on historical occupancy rates and market trends to project potential future shortfalls. The minimum rent guarantee thresholds are calculated annually based on the local market occupancy rates and prevailing market rental rates. The minimum rent guarantee terms are stipulated to last for the duration of the property management agreements unless terminated by either party or amended by mutual agreement. These agreements can be terminated by either party by providing 30 days’ notice.
As of the issuance date of these consolidated financial statements, the maximum potential rental guarantees were approximately $
Contingencies
The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations.
NOTE 12 – SUBSEQUENT EVENTS
Subsequent to March 31, 2026, the Company issued an additional
25
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes appearing elsewhere in this Quarterly Report. This discussion and analysis contain forward-looking statements that involve risks, uncertainties and assumptions. See “Cautionary Note Regarding Forward-Looking Statements” below. We have no obligation to update any of these forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements due to many factors, including, but not limited to, those set forth under the heading “Risk Factors” in this Quarterly Report. Factors that could cause or contribute to such differences include, but are not limited to, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this Quarterly Report.
Cautionary Statement Regarding Forward-Looking Information
This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. Forward-looking statements give our current expectations or forecasts of future events and can be identified by the fact that they do not relate strictly to historical or current facts. In particular, these include statements relating to future actions, prospective products, market acceptance, future performance or results of current and anticipated products, sales efforts, expenses, and the outcome of contingencies such as legal proceedings and financial results. Forward-looking statements involve risks and uncertainties and include statements regarding, among other things, our projected revenue growth and profitability, our growth strategies and opportunity, anticipated trends in our market and our anticipated needs for working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plans,” “potential,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend” or the negative of these words or other variations on these words or comparable terminology.
Examples of forward-looking statements in this quarterly report include, but are not limited to, our expectations regarding our business strategy, business prospects, operating results, operating expenses, working capital, liquidity and capital expenditure requirements. Important assumptions relating to the forward-looking statements include, among others, assumptions regarding demand for our offerings, the cost, terms and availability of components, pricing levels, the timing and cost of capital expenditures, competitive conditions and general economic conditions. You should not rely on forward-looking statements as predictions of future events. These statements are based on our management’s expectations, beliefs and assumptions concerning future events affecting us, which are based on currently available information. Although we believe that the estimates and projections reflected in the forward-looking statements are reasonable, our expectations and assumptions may prove to be incorrect. Our statements should not read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information.
Important factors that could cause actual results to differ materially from the results and events anticipated or implied by such forward-looking statements include, but are not limited to:
| ● | changes in the market acceptance of our software solutions and offerings; | |
| ● | our ability to successfully execute our growth strategy and enter into new markets; | |
| ● | our ability to expand in existing and new markets; | |
| ● | increased levels of competition; | |
| ● | our relationships with our key customers; | |
| ● | changes in customer preferences and the level of acceptance of our software services; | |
| ● | our ability to retain and attract senior management and other key employees; | |
| ● | our ability to quickly and effectively respond to new technological developments; | |
| ● | our ability to protect our trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others and prevent others from infringing on the proprietary rights of the Company; and | |
| ● | other risks, including those described in the “Risk Factors” section of this quarterly report. |
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We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all of those risks, nor can we assess the impact of all of those risks on our business or the extent to which any factor may cause actual results to differ materially from those contained in any forward-looking statement. The forward-looking statements in this quarterly report are based on assumptions management believes are reasonable. However, due to the uncertainties associated with forward-looking statements, you should not place undue reliance on any forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and unless required by law, we expressly disclaim any obligation or undertaking to publicly update any of them in light of new information, future events, or otherwise.
Overview
Collab Z Inc., through its subsidiary, Collab CA LLC, has developed its pioneering Collab Platform, a first-of-its-kind Community-Based Property Management model that is designed to replace traditional property management practice by enabling community involvement and by leveraging modern technology, including artificial intelligence features currently under development. Our approach actively involves tenants and other skilled community members in the management process, handling leasing and daily operations in a way that minimizes conflicts of interest and improves tenant satisfaction. With a five-year lead over new market entrants and the ability to scale instantly without local staffing, Collab Z uniquely positions itself against both traditional property management firms and SaaS-based PropTech competitors.
Our mission is to democratize property management and to foster a more engaged community of tenants, property owners, and professional service providers to maximize asset value and to create a sustainable, decentralized organization that benefits all stakeholders involved.
Our vision is to revolutionize the real estate sector by maximizing community engagement in their living and working spaces for an autonomous and collaborative living experience.
We are committed to innovation, focusing on delivering substantial long-term value to our shareholders and improving the quality of life for our property owners, tenants, Community Pros, or CPs, and professional service providers. As we expand, our Collab Platform will continue to lead the shift towards a more connected and engaged property management ecosystem.
Collab Z’s fiscal year ends September 30th.
Components of Results of Operations
Revenue
The Company earns revenue from the following streams:
Property Management
The Company provides property management services for rental properties that include various elements based on the underlying contractual agreement. The Company earns a fixed percentage of monthly lease income. This revenue is recognized on an ongoing, monthly basis. The Company earns additional fees based on a fixed percentage of property-related expenses such as repairs and maintenance at the time the underlying costs are incurred. The Company, at times, is also eligible to earn commissions on the first month of a new lease agreement. Certain managed properties include a profit share arrangement based on guaranteed rental income whereby the Company shares in the excess rental income over the guaranteed amounts. No losses have been incurred based on these guarantees. The Company recognizes this revenue at the point in time the excess rental income is known. The Company recognizes this revenue monthly, when the profit share information becomes known.
Development and Construction Management
The Company provides services consisting of the oversight of property development and construction projects, including budget monitoring and timeline management. Development fees are recognized on an ongoing monthly basis through the completion of the service period.
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Procurement
The Company facilitates procurement of materials and supplies for construction projects, particularly from international sources. Procurement fees are recognized at a point in time upon the completion of the procurement service, which is shipment of the related materials.
Renovation Management
Renovation management services include assisting in the acquisition, renovation, and disposition of properties. Renovation fees are recognized on an ongoing, monthly basis through the completion of the service period, which is based on the time elapsed of the renovation project. The Company also earns renovation service fees, which are recognized over time as the project progresses based on the actual costs incurred of the underlying renovation project. Acquisition and disposition fees are recognized at a point in time after the acquisition of the property.
EB-5 Immigration Investor Services
The Company identifies EB-5 immigration investment projects and assists investors with project identification, assistance and support during the project application process. Fees are recognized at a point in time upon the fulfillment of the EB-5 service obligations, which is when the EB-5 application package has been submitted. Payments are typically billed in two tranches, and any deferred revenue is recognized once performance obligations are met.
Consulting Services
The Company provides other real estate consulting services to both related and third parties that are defined by respective service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized over time as the deliverables are satisfied, or at a point in time if the contract calls for a defined deliverable. Each contract is assessed for performance obligations. There is generally no right of refund related to these services.
Cost of Revenue
Cost of revenue includes operations personnel supporting the Company’s real estate services, specifically those personnel who work directly on property management as well as development, construction, renovation and EB-5 projects. Cost of revenue also includes software costs incurred to maintain the Company’s property management system, as well as amortization of capitalized software costs.
Operating Expenses
Sales And Marketing
Our sales and marketing costs consist primarily of salaries and other related costs for business development personnel and advertising and marketing costs. We expect that our sales and marketing expense will increase significantly on an absolute dollar basis and vary from period-to-period as a percentage of revenue for the foreseeable future as we focus on building out our third-party customer facing organization and expanding our brand.
General and Administrative Expense
Our general and administrative expenses consist primarily of salaries and other related costs for personnel in our executive, finance, corporate development and administrative functions. General and administrative expense also includes professional fees for legal, accounting, information technology, travel, insurance, software costs and expenses related to our operations at our headquarters, including rent.
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We expect that our general and administrative expense will increase on an absolute dollar basis and vary from period-to-period as a percentage of revenue for the foreseeable future as we focus on processes, systems and controls to enable our internal support functions to scale with the growth of our business. We expect to incur increased expenses associated with being a public company, including costs of accounting, audit, legal, regulatory and tax compliance services, costs related to compliance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and exchange listing standards, higher director and officer insurance costs, and investor and public relations costs.
Other Income (Expense)
Other income (expense) primarily includes interest expense on the Company’s debt, as well as interest income earned and income (loss) on joint ventures.
Results of Operations
Comparison of Three Months Ended March 31, 2026 and 2025
The following table sets forth key components of our results of operations for the three months ended March 31, 2026 and 2025, both in dollars and as a percentage of our total revenue.
| Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| Amount | % of revenues | Amount | % of revenues | |||||||||||||
| Revenue - related parties | $ | 392,777 | 50 | % | $ | 295,769 | 78 | % | ||||||||
| Revenue - other | 386,172 | 50 | % | 82,549 | 22 | % | ||||||||||
| Total revenue | 778,949 | 100 | % | 378,318 | 100 | % | ||||||||||
| Cost of revenue | 119,941 | 15 | % | 103,147 | 27 | % | ||||||||||
| Gross profit | 659,008 | 85 | % | 275,171 | 73 | % | ||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 141,881 | 18 | % | 5,722 | 2 | % | ||||||||||
| General and administrative | 335,977 | 43 | % | 244,764 | 65 | % | ||||||||||
| Total operating expenses | 477,858 | 61 | % | 250,486 | 66 | % | ||||||||||
| Income from operations | 181,150 | 23 | % | 24,685 | 7 | % | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 13,828 | 2 | % | 17,351 | 5 | % | ||||||||||
| Interest expense | - | - | (14,296 | ) | -4 | % | ||||||||||
| Loss on joint ventures | (2,754 | ) | 0 | % | - | - | ||||||||||
| Other income | - | 0 | % | 113 | 0.03 | % | ||||||||||
| Total other income (expense) | 11,074 | 1 | % | 3,168 | 1 | % | ||||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net income | $ | 192,224 | 25 | % | $ | 27,853 | 7 | % | ||||||||
Revenue
Related party revenue increased by $97,008 for the three months ended March 31, 2026 to $392,777 as compared to $295,769 in the prior period. The increase was primarily due to increase in development and construction management fees by $45,789 and consulting services by $122,900, partially offset by a decrease in property management by $71,681.
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Revenues from third parties was $386,172 for the three months ended March 31, 2026, primarily of consulting fees performed and property management services to third parties. In 2025, the Company generated revenue of $82,549 from consulting fees performed and property management services.
Cost of Revenue
Cost of revenue was $119,941 for the three months ended March 31, 2026 as compared to $103,147 in 2025. The increase was primarily due to increase in a third-party revenue during the three months ended March 31, 2026.
Sales and Marketing
Sales and marketing expenses increased by $136,159 for the three months ended March 31, 2026 to $141,881 as compared to $5,722 in the prior period. This increase was primarily due to higher personnel costs assisting with business development.
General and Administrative
General and administrative expenses increased by $91,213 for the three months ended March 31, 2026 to $335,977 as compared to $244,764 in the prior period. This increase was primarily due to higher personnel costs and professional services as we expanded our operations, increased headcount and incurred professional costs in connection with our contemplated initial public offering.
Other Income (Expense)
Other income (expense) was $11,074 and $3,168 for the three months ended March 31, 2026 and 2025, respectively, which primarily consisted of interest income $4,253 from a note receivable and interest income of $9,575 on restricted cash, offset by loss on joint ventures of ($2,754), compared to interest income $17,351 from a note receivable and other income of $113, offset by $14,296 interest expense on the Company’s outstanding line of credit during the prior period.
Net Income
Net income was $192,224 for the three months ended March 31, 2026 as compared to a net income of $27,853 for the prior period. The increase of income of $164,371 was primarily due to increased other revenue during the three months ended March 31, 2026.
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Comparison of Six Months Ended March 31, 2026 and 2025
The following table sets forth key components of our results of operations for the six months ended March 31, 2026 and 2025, both in dollars and as a percentage of our total revenue.
| Six Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| Amount | % of revenues | Amount | % of revenues | |||||||||||||
| Revenue - related parties | $ | 776,373 | 62 | % | $ | 525,636 | 65 | % | ||||||||
| Revenue - other | 485,819 | 38 | % | 282,549 | 35 | % | ||||||||||
| Total revenue | 1,262,192 | 100 | % | 808,185 | 100 | % | ||||||||||
| Cost of revenue | 197,308 | 16 | % | 185,957 | 23 | % | ||||||||||
| Gross profit | 1,064,884 | 84 | % | 622,228 | 77 | % | ||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 201,801 | 16 | % | 10,248 | 1 | % | ||||||||||
| General and administrative | 597,814 | 47 | % | 466,555 | 58 | % | ||||||||||
| Total operating expenses | 799,615 | 63 | % | 476,803 | 59 | % | ||||||||||
| Income from operations | 265,269 | 21 | % | 145,425 | 18 | % | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 22,183 | 2 | % | 17,351 | 2 | % | ||||||||||
| Interest expense | - | - | (23,006 | ) | -3 | % | ||||||||||
| Loss on joint ventures | (516 | ) | 0 | % | - | - | ||||||||||
| Other income | - | - | 1,418 | 0.18 | % | |||||||||||
| Total other income (expense) | 21,667 | 2 | % | (4,237 | ) | -1 | % | |||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net income | $ | 286,936 | 23 | % | $ | 141,188 | 17 | % | ||||||||
Revenue
Related party revenue increased by $250,737 for the six months ended March 31, 2026 to $776,373 as compared to $525,636 in the prior period. The increase was primarily due to increased consulting services by $331,800 and development and construction management fees by $95,292, partially offset by a decrease in property management by $127,647, and a decrease in procurement revenue by $48,708.
Revenues from third parties was $485,819 for the six months ended March 31, 2026, consisting of consulting fees performed and property management services to third parties. In 2025, the Company generated revenue of $270,000 from consulting services and $12,549 from property management services.
Cost of Revenue
Cost of revenue was $197,308 for the six months ended March 31, 2026 as compared to $185,957 in 2025. The increase was primarily due to increase in third-party revenues during the six months ended March 31, 2026.
Sales and Marketing
Sales and marketing expenses increased by $191,553 for the six months ended March 31, 2026 to $201,801 as compared to $10,248 in the prior period. This increase was primarily due to higher personnel costs assisting with business development.
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General and Administrative
General and administrative expenses increased by $131,259 for the six months ended March 31, 2026 to $597,814 as compared to $466,555 in the prior period. This increase was primarily due to higher personnel costs and professional services as we expanded our operations, increased headcount and incurred professional costs in connection with our contemplated initial public offering.
Other Income (Expense)
Other income (expense) was $21,667 and ($4,237) for the six months ended March 31, 2026 and 2025, respectively, which primarily consisted of interest income $12,608 from a note receivable and interest income of $9,575 on restricted cash, offset by loss on joint ventures of $516, compared to interest income $17,351 from a note receivable, other income of $1,418 and offset by $23,006 interest expense on the Company’s outstanding line of credit during the prior period.
Net Income
Net income was $286,936 for the six months ended March 31, 2026 as compared to a net income of $141,188 for the prior period. The increase of income of $145,748 was primarily due to increased other revenue during the six months ended March 31, 2026.
Liquidity and Capital Resources
Our principal liquidity requirements are for working capital, business development and system development. We historically funded our liquidity requirements primarily through cash on hand, cash flows from operations, proceeds from related parties and debt and equity financings.
The accompanying 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 had $10,794 in cash as of March 31, 2026, and $1,006,805 in amounts due from related parties. The Company is heavily reliant on related parties as its primary revenue and cash flow sources and has historically generated revenues from sources that may not be recurring.
The Company is in its early-stage and expects to incur significant costs to expand its operations and conduct its business plan, which may result in future losses if it cannot effectively market its products and achieve market acceptance.
Management’s Plans
We believe substantial doubt has been alleviated for a period of at least 12 months from the date the financial statements are issued based on the following:
The net due to and from related parties’ balances at March 31, 2026, which are expected to be fully collected and paid, provide for a net positive effect to cash of approximately $0.39 million. In addition, third party receivables and the note receivable are expected to be paid and create cash inflows of $0.8 million in aggregate. These funds are expected to provide the Company with operating capital sufficient to cover basic operations while the Company makes efforts to increase revenue and maintain cost management to make operations more profitable and sustainable. Lastly, the Company is seeking to raise capital via an equity offering. In the event the Company does not complete an offering, the Company expects to seek additional funding through private equity offering, debt and/or related party financings to provide additional operating capital. The Company may not be able to obtain financing on acceptable terms, or at all.
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Cash Flows
Liquidity activity is shown for the Six months ended March 31, 2026 and 2025. The following is a summary of the Company’s cash flows provided (used in) operating, investing, and financing activities:
| Six Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net cash (used in) provided by operating activities | $ | (271,017 | ) | $ | 128,796 | |||
| Net cash provided by investing activities | 83,006 | 1,237,974 | ||||||
| Net cash provided by (used in) financing activities | 2,799,874 | (1,423,079 | ) | |||||
| Net change in cash | $ | 2,611,863 | $ | (56,309 | ) | |||
Net Cash (used in) Provided by Operating Activities
Cash (used in) provided by operating activities was ($271,017) for the six months ended March 31, 2026 as compared to $128,796 for the prior period. Cash used in during the six months ended March 31, 2026 was primarily due to net income of $286,936 and cash used in operating assets and liabilities of $605,136 due to the increased receivables, and partially offset by non-cash charges of $47,183. Cash provided during the six months ended March 31, 2025 was primarily due to our net income of $141,188, non-cash charges of $42,667 and cash used in operating assets and liabilities of $55,509.
Net Cash Provided by Investing Activities
Cash provided by investing activities was $83,006 for the six months ended March 31, 2026 as compared to 1,237,974 for the prior period. Cash provided during the six months ended March 31, 2026 was primarily due to the receipt from repayment of loan receivable of $250,000, partially offset by the repayment of due to related parties of $37,001 and a software capitalization of $129,993. Cash provided by investing activities during the six months ended March 31, 2025 was primarily due to receipts from related parties of $2,065,199 and repayment of loan receivable of $662,275, offset by issuance of loan receivable of $1,470,000 and software capitalization of $19,500.
Net Cash Provided by (used in) Financing Activities
Cash provided by (used in) financing activities was $2,799,874 and ($1,423,079) for the March months ended March 31, 2026 and 2025, respectively. Cash provided by financing activities for the six months ended March 31, 2026 included proceed from issuance of Series C preferred stock of $2,753,000, realization of subscription receivable of $150,000 and $13,396 in proceeds from due to related parties, partially offset by $100,839 in deferred offering cost and dividend paid $15,683. Cash used in financing activities for the six months ended March 31, 2025 included $631,833 in repayment to due to related parties, in deferred offering cost $148,392 and repayment of the Company’s revolving line of credit of 1,942,854, offset by $1,300,000 in proceeds from the Company’s revolving line of credit.
Debt
Revolving Line of Credit
On March 14, 2024, the Company entered into a revolving line of credit agreement with East West Bank for a principal amount of up to $2,000,000. The loan was to on March 14, 2026, was secured by an assignment of a deposit account held by Collab CA’s former member, YRQ Irrevocable Trust, and was intended exclusively for business operations. The loan had a variable interest rate based on the interest rate of the collateral’s certificate of deposit plus 1.5%. The initial rate was set at 5.905%. The loan required monthly interest payments, and full repayment of principal and accrued interest due at maturity.
During the year ended September 30, 2025, the Company borrowed an aggregate of $1,300,000, which was used to provide a loan to a third party (see Note 4). On February 4, 2025, the Company paid off the line of credit with the funds from the collection of the Company’s due from related parties and receivables. As a result, the line of credit was closed prior to its contractual maturity date, and no amounts were outstanding or available under the facility as of March 31, 2026.
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Future Equity Obligations
In April 2023, the Company entered into a SAFE agreement for proceeds of $25,000. The SAFE has a valuation cap of $50,000,000 and a discount of 25%, which will be applied to the valuation of the Company at the time of the triggering event in order to calculate the price per share for the investor.
The SAFE will convert into equity upon the occurrence of a future qualified financing round of at least $10,000,000 or another triggering event, including the event of a merger, acquisition or initial public offering (“IPO”).
As of March 31, 2026 and September 30, 2025, the fair value of SAFEs was $25,000 and $25,000, respectively. See Note 5 for fair value disclosures.
Due to Related Parties
Due to related parties includes cash advances received from various related parties. These advances are unsecured, due on demand and non-interest bearing. As of March 31, 2026 and September 30, 2025, the amounts outstanding were $30,001 and $16,605 respectively.
Critical Accounting Policies and Significant Judgments and Estimates
This discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting standards in the United States (“GAAP”). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are described in more detail in the notes to our financial statements included elsewhere in this quarterly report, we believe that the following accounting policies are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management’s judgments and estimates.
We believe our most critical accounting policies and estimates relate to the following:
Revenue Recognition
The Company recognizes revenue from services in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when or as the Company’s performance obligations are satisfied by transferring control of the promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps as prescribed by ASC 606:
| (i) | identify the contract(s) with a customer; |
| (ii) | identify the performance obligations in the contract; |
| (iii) | determine the transaction price; |
| (iv) | allocate the transaction price to the performance obligations in the contract; and |
| (v) | recognize revenue when (or as) the entity satisfies performance obligations. |
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The Company only applies the five-step model to contracts when it is probable that it will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, the performance obligations in each contract and whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company has applied ASC 606 on a portfolio basis. The Company has elected the practical expedients, allowing the recognition of incremental costs of obtaining a contract as an expense when incurred, and not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.
Stock-Based Compensation
We record stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued and are recognized over the employee’s required service period, which is generally the vesting period.
Related Parties
Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries. There were no related party transactions during the year other than normal compensatory arrangements, consistent with the prior year. The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
Common Stock Valuations
An “established trading market” for the Company’s common stock does not exist. In 2024, the fair value of the shares of common stock was determined based on public company comparables, specifically microcap companies in similar industries including Protech and technology platform services. The Company then applied a discount factor accounting for the private to public discount and minority interest discount, which was estimated using comparable valuations. In 2025, the Company considered the planned go-public transaction and the estimated price, as well as Series B preferred shares sold near year end, and estimated the accretion of value over the period until estimated IPO to estimate the fair value of common stock. In connection with the stock options granted on January 31, 2026, the Company estimated the fair value of common stock at $3.60 per share, derived from the contemporaneous arm’s-length issuance of Series C convertible preferred stock at $4.00 per share, which on an as-converted basis (at the 90% conversion price embedded in the Series C Certificate of Designation, assuming a $4.00 anticipated Qualified Public Offering price) implies a per-common-share value of $3.60. This input reflects the state of the IPO process as of the grant date, including that Nasdaq listing approval had not been received and no definitive offering timeline existed.
Following the completion of this offering, the fair value of our common stock will be based on the closing price as reported on the date of grant on the primary stock exchange on which our common stock is traded.
Recently Issued and Adopted Accounting Pronouncements
A description of recently issued and adopted accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 3 to our condensed consolidated financial statements included in this report
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Off-Balance Sheet Arrangements
The Company has a minimum rental guarantee for certain related party managed properties whereby the Company will pay the difference between the collected rent and the minimum rent guarantee. These guarantees require the Company to ensure a specified minimum gross revenue each month. Should the properties’ gross revenues fall below these thresholds, the Company is required to compensate for the shortfall. The maximum potential amount of future payments under these guarantees is estimated based on historical occupancy rates and market trends to project potential future shortfalls. The minimum rent guarantee thresholds are calculated annually based on the local market occupancy rates and prevailing market rental rates. The minimum rent guarantee terms are stipulated to last for the duration of the property management agreements unless terminated by either party or amended by mutual consent. These agreements can be terminated by either party by providing 30 days’ notice.
As of the issuance date of these condensed consolidated financial statements, the maximum potential rental guarantees were approximately $102,000 per month. Since entering into these terms, the Company has achieved occupancy rates at all properties at or above market rental rates. As such, there have been no shortfall payments incurred by Collab Z to date.
During the periods presented, we did not have, nor do we currently have, any other off-balance sheet arrangements as defined under SEC rules.
Implications of being an Emerging Growth Company
We are an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As such, we are eligible to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not “emerging growth companies” including, but not limited to:
| ● | being permitted to present only two years of audited financial statements and only two years of related disclosure in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; |
| ● | being permitted to provide less extensive narrative disclosure than other public companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; |
| ● | being permitted to utilize exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved; |
| ● | being permitted to defer complying with certain changes in accounting standards; and |
| ● | being permitted to use test-the-waters communications with qualified institutional buyers and institutional accredited investors. |
We have taken advantage of certain reduced reporting requirements in this quarterly report. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.
An emerging growth company can also take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use this exemption from new or revised accounting standards during the period in which we remain an emerging growth company; however, we have and may adopt certain new or revised accounting standards early.
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We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our securities pursuant to an effective registration statement under the Securities Act; (ii) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules. We expect that we will remain an emerging growth company for the foreseeable future but cannot retain our emerging growth company status indefinitely and will no longer qualify as an emerging growth company on or before the last day of the fiscal year following the fifth anniversary of the date of the first sale of our securities pursuant to an effective registration statement under the Securities Act.
Smaller Reporting Company
We are also a “smaller reporting company,” meaning that the market value of our stock held by non-affiliates is less than $700 million as of the last trading day of our second quarter and our annual revenue is less than $100 million during the most recently completed fiscal year. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million as of the last trading day of our second quarter or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million as of the last trading day of our second quarter. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. For example, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).
ITEM 4. CONTROLS AND PROCEDURES
Disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms and is accumulated and communicated to our management, as appropriate, in order to allow timely decisions in connection with required disclosure.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. As required by Rule 13a-15(b) or Rule 15d-15(b) promulgated by the SEC under the Exchange Act, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this Quarterly Report at the reasonable assurance level.
Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective because of the material weaknesses in our internal control over financial reporting described below.
37
Material Weaknesses in Internal Control Over Financial Reporting
Management has identified the following material weaknesses in the Company’s internal control over financial reporting that exist as of March 31, 2026. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.
| ● | The Company did not design and maintain an effective control environment as our size has prevented us from being able to employ sufficient resources. This material weakness contributed to the following additional material weaknesses. |
| ● | The Company did not design and maintain effective controls to verify appropriate segregation of duties. |
| ● | The Company did not design and maintain effective controls related to substantially all accounts and disclosures. Specifically, the Company did not design and maintain comprehensive and formalized accounting and financial reporting policies and procedures that detail the information needed for our financial reporting process, including a robust review process by which management monitors for technical accounting requirements. |
| ● | The Company did not design and maintain effective controls over information technology (IT) general controls over information systems that are relevant to the preparation of the Company’s financial statements. Specifically, the Company did not design and maintain: (i) user access controls to ensure appropriate segregation of duties and to adequately restrict user and privileged access to appropriate personnel; (ii) program change management controls to ensure that program and data changes are identified, tested, authorized and implemented appropriately, (iii) computer operations controls to ensure that processing and transfer of data, and data backups and recovery are monitored; and (iv) program development controls to ensure that new software development is tested, authorized and implemented appropriately. |
These material weaknesses did not result in a misstatement to any of the Company’s previously issued consolidated financial statements. However, these material weaknesses could result in a misstatement of substantially all account balances or disclosures that would result in a material misstatement to the annual or interim consolidated financial statements that would not be prevented or detected.
Changes in Internal Control
There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the six months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitations on the Effectiveness of Controls
Management of the Company, including its Chief Executive Officer and its Chief Financial Officer, does not expect that the Company’s disclosure controls and procedures or its internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Furthermore, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons or by the collusion of two or more persons. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
38
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 1A. Risk Factors.
Except with respect to the Company’s on-going liquidity needs, there were no material changes in the risk factors we previously disclosed in Item 1A to Part I of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the SEC on December 23, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Unregistered Sales of Equity Securities
As described in Item 1.01 of the Current Report on Form 8-K under “Securities Purchase Agreement,” which description is incorporated herein by reference, the Company agreed to offer and sell up to 1,250,000 shares of its newly created Series C preferred stock at a purchase price of $4.00 per share to certain investors pursuant to the Securities Purchase Agreement.
During the six months ended March 31, 2026, the Company issued an aggregate of 688,250 shares of Series C preferred stock to investors for a total purchase price of $2,753,000. The funds per the Series C investments are currently held in escrow, and as such Company has reflected the amount as restricted cash on the consolidated condense balance sheet. This amount is included within current assets as per the redemption provisions.
The shares of Series C preferred stock were offered and sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The Securities Purchase Agreement contains representations from each investor that such investor is an “accredited investor,” as defined in Rule 501 under the Securities Act, and that the securities were acquired for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
Repurchases
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
39
PART IV
ITEM 6.
(a) Exhibits
| * | Previously Filed. |
| ** | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
40
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: May 20, 2026
| COLLAB Z INC. | ||
| By: | /s/ Qiaojun Lai | |
| Qiaojun Lai | ||
| Chief Executive Officer | ||
| By: | /s/ Jin Kuang | |
| Jin Kuang | ||
| Chief Financial Officer | ||
41
Exhibit 31.1
CERTIFICATIONS
OF THE CHIEF EXECUTIVE OFFICER PURSUANT
TO RULE 13A-14(A) OR 15D-14(A)
OF THE SECURITIES EXCHANGE ACT OF 1934
I, Qiaojun Lai, certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q of Collab Z Inc. |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; |
| d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: May 20, 2026 | /s/ Qiaojun Lai |
| Qiaojun Lai | |
| Chief Executive Officer |
Exhibit 31.2
CERTIFICATIONS
OF THE CHIEF FINANCIAL OFFICER PURSUANT
TO RULE 13A-14(A) OR 15D-14(A)
OF THE SECURITIES EXCHANGE ACT OF 1934
I, Jin Kuang, certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q of Collab Z Inc. |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; |
| d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: May 20, 2026 | /s/ Jin Kuang |
| Jin Kuang | |
| Chief Financial Officer |
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
In connection with the Quarterly Report of Collab Z Inc. (“Company”) on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (“Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
| (1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| Date: May 20, 2026 | |
| /s/ Qiaojun Lai | |
| Qiaojun Lai | |
| Chief Executive Officer |
This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Collab Z Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that Collab Z Inc. specifically incorporates it by reference.
A signed original of this written statement required by Section 906 has been provided to Collab Z Inc. and will be retained by Collab Z Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
In connection with the Quarterly Report of Collab Z Inc. (“Company”) on Form 10-Q for the period ended May 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (“Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
| (1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company |
| Date: May 20, 2026 | |
| /s/ Jin Kuang | |
| Jin Kuang | |
| Chief Financial Officer |
This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by Collab Z Inc. or purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that Collab Z Inc. specifically incorporates it by reference.
A signed original of this written statement required by Section 906 has been provided to Collab Z Inc. and will be retained by Collab Z Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Income Statement [Abstract] | ||||
| Revenue - related parties | $ 392,777 | $ 295,769 | $ 776,373 | $ 525,636 |
| Revenue | 386,172 | 82,549 | 485,819 | 282,549 |
| Total revenue | 778,949 | 378,318 | 1,262,192 | 808,185 |
| Cost of revenue | 119,941 | 103,147 | 197,308 | 185,957 |
| Gross profit | 659,008 | 275,171 | 1,064,884 | 622,228 |
| Operating expenses: | ||||
| Sales and marketing | 141,881 | 5,722 | 201,801 | 10,248 |
| General and administrative | 335,977 | 244,764 | 597,814 | 466,555 |
| Total operating expenses | 477,858 | 250,486 | 799,615 | 476,803 |
| Income from operations | 181,150 | 24,685 | 265,269 | 145,425 |
| Other income (expense) | ||||
| Interest income | 13,828 | 17,351 | 22,183 | 17,351 |
| Interest expense | (14,296) | (23,006) | ||
| Loss on joint ventures | (2,754) | (516) | ||
| Other income | 113 | 1,418 | ||
| Total other income (expense) | 11,074 | 3,168 | 21,667 | (4,237) |
| Provision for income taxes | ||||
| Net income | $ 192,224 | $ 27,853 | $ 286,936 | $ 141,188 |
| Weighted average common shares outstanding | ||||
| Basic | 5,091,391 | 5,091,391 | 5,091,391 | 5,091,391 |
| Diluted | 5,091,391 | 5,091,391 | 5,091,391 | 5,091,391 |
| Net income per common share | ||||
| Basic | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.03 |
| Diluted | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.03 |
Condensed Consolidated Statements Of Mezzanine Equity And Stockholders’ Equity (Unaudited) - USD ($) |
Preferred Stock
Series C
|
Preferred Stock
Series B
|
Preferred Stock
Series X
|
Common Stock Subject to Possible Redemption |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Total |
|---|---|---|---|---|---|---|---|---|
| Balances at Sep. 30, 2024 | $ 5 | $ 5,092 | $ 308,713 | $ 869,302 | $ 1,183,112 | |||
| Balances (in Shares) at Sep. 30, 2024 | 5,000 | 5,091,391 | ||||||
| Contributions | 10,000 | 10,000 | ||||||
| Net Income (Loss) | 113,335 | 113,335 | ||||||
| Balances at Dec. 31, 2024 | $ 5 | $ 5,092 | 318,713 | 982,637 | 1,306,447 | |||
| Balances (in Shares) at Dec. 31, 2024 | 5,000 | 5,091,391 | ||||||
| Balances at Sep. 30, 2024 | $ 5 | $ 5,092 | 308,713 | 869,302 | 1,183,112 | |||
| Balances (in Shares) at Sep. 30, 2024 | 5,000 | 5,091,391 | ||||||
| Net Income (Loss) | 141,188 | |||||||
| Balances at Mar. 31, 2025 | $ 5 | $ 20,000 | $ 5,092 | 324,713 | 1,010,490 | 1,340,300 | ||
| Balances (in Shares) at Mar. 31, 2025 | 5,000 | 10,000 | 5,091,391 | |||||
| Balances at Sep. 30, 2024 | $ 5 | $ 5,092 | 308,713 | 869,302 | 1,183,112 | |||
| Balances (in Shares) at Sep. 30, 2024 | 5,000 | 5,091,391 | ||||||
| Balances at Sep. 30, 2025 | $ 200 | $ 5 | $ 120,000 | $ 5,092 | 1,144,513 | 767,107 | 1,916,917 | |
| Balances (in Shares) at Sep. 30, 2025 | 200,000 | 5,000 | 60,000 | 5,091,391 | ||||
| Balances at Dec. 31, 2024 | $ 5 | $ 5,092 | 318,713 | 982,637 | 1,306,447 | |||
| Balances (in Shares) at Dec. 31, 2024 | 5,000 | 5,091,391 | ||||||
| Contributions | 6,000 | 6,000 | ||||||
| Shares issued pursuant to investment in joint venture | $ 20,000 | |||||||
| Shares issued pursuant to investment in joint venture (in Shares) | 10,000 | |||||||
| Net Income (Loss) | 27,853 | 27,853 | ||||||
| Balances at Mar. 31, 2025 | $ 5 | $ 20,000 | $ 5,092 | 324,713 | 1,010,490 | 1,340,300 | ||
| Balances (in Shares) at Mar. 31, 2025 | 5,000 | 10,000 | 5,091,391 | |||||
| Balances at Sep. 30, 2025 | $ 200 | $ 5 | $ 120,000 | $ 5,092 | 1,144,513 | 767,107 | 1,916,917 | |
| Balances (in Shares) at Sep. 30, 2025 | 200,000 | 5,000 | 60,000 | 5,091,391 | ||||
| Contributions | 10,000 | 10,000 | ||||||
| Preferred stock dividends | (25,479) | (25,479) | ||||||
| Net Income (Loss) | 94,712 | 94,712 | ||||||
| Balances at Dec. 31, 2025 | $ 200 | $ 5 | $ 120,000 | $ 5,092 | 1,154,513 | 836,340 | 1,996,150 | |
| Balances (in Shares) at Dec. 31, 2025 | 200,000 | 5,000 | 60,000 | 5,091,391 | ||||
| Balances at Sep. 30, 2025 | $ 200 | $ 5 | $ 120,000 | $ 5,092 | 1,144,513 | 767,107 | 1,916,917 | |
| Balances (in Shares) at Sep. 30, 2025 | 200,000 | 5,000 | 60,000 | 5,091,391 | ||||
| Net Income (Loss) | 286,936 | |||||||
| Balances at Mar. 31, 2026 | $ 2,792,615 | $ 200 | $ 5 | $ 120,000 | $ 5,092 | 1,164,513 | 973,168 | 2,142,978 |
| Balances (in Shares) at Mar. 31, 2026 | 688,250 | 200,000 | 5,000 | 60,000 | 5,091,391 | |||
| Balances at Dec. 31, 2025 | $ 200 | $ 5 | $ 120,000 | $ 5,092 | 1,154,513 | 836,340 | 1,996,150 | |
| Balances (in Shares) at Dec. 31, 2025 | 200,000 | 5,000 | 60,000 | 5,091,391 | ||||
| Contributions | 10,000 | 10,000 | ||||||
| Issuance of Series C preferred stock | $ 2,753,000 | |||||||
| Issuance of Series C preferred stock (in Shares) | 688,250 | |||||||
| Preferred stock dividends | (55,396) | (55,396) | ||||||
| Net Income (Loss) | 192,224 | 192,224 | ||||||
| Balances at Mar. 31, 2026 | $ 2,792,615 | $ 200 | $ 5 | $ 120,000 | $ 5,092 | $ 1,164,513 | $ 973,168 | $ 2,142,978 |
| Balances (in Shares) at Mar. 31, 2026 | 688,250 | 200,000 | 5,000 | 60,000 | 5,091,391 |
Nature of Operations |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Nature of Operations [Abstract] | |
| NATURE OF OPERATIONS | NOTE 1 – NATURE OF OPERATIONS
Collab Z Inc. (the “Company”) was formed on May 11, 2024. in the State of Nevada for the purpose of reorganizing and becoming the holding company for Collab CA LLC (Collab CA”), a California limited liability company.
In December 2024, Collab CA became a direct, wholly owned subsidiary of the Company as a result of the closing of the Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the “Reorganization Agreement” or “Reorganization”). Pursuant to the Reorganization Agreement, the sole member of Collab CA exchanged 100% of its member interests for 4,550,500 shares of the Company’s common stock. As a result, the member of Collab CA became a shareholder of the Company and Collab CA became a direct, wholly owned subsidiary of the Company.
The Reorganization was being accounted for as a reorganization of entities under common control by a control group. The accompanying financial statements have been presented to retroactively present the effect of the Reorganization. See Note 3 for further detail.
Collab CA is the main operating subsidiary engaged in various real estate services, including property management, construction and renovation management, as well as EB-5 immigration investor services and consulting services. Collab Z Inc., and its subsidiary, Collab CA, are at the forefront of the PropTech industry. The Company aims to transform property management by integrating community involvement and artificial intelligence to directly connect tenants with management tasks, eliminating intermediaries and enhancing efficiency.
The Company’s headquarters are located in Berkeley, California. |
Going Concern |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Going Concern [Abstract] | |
| GOING CONCERN | NOTE 2 – GOING CONCERN
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 had $10,794 in cash as of March 31, 2026, and $1,006,805 in amounts due from related parties. The Company is heavily reliant on related parties as its primary revenue and cash flow sources and has historically generated revenues from sources that may not be recurring. Our management’s plans disclosure below assumes the continuing commercial relationship between the Company and the related party companies for which we provide services, and the assumption that such related parties can perform on their obligations.
The Company is early-stage, and expects to incur significant costs to expand its operations and conduct its business plan, which may result in future losses if it cannot effectively market its products and achieve market acceptance.
Management’s Plans
We believe substantial doubt has been alleviated for a period of at least 12 months from the date the financial statements are issued based on the following:
The net due to and from related parties’ balances at March 31, 2026, which are expected to be fully collected and paid, provide for a net positive effect to cash of approximately $0.39 million. In addition, third party receivables and the note receivable are expected to be paid and create cash inflows of $0.8 million in aggregate. These funds are expected to provide the Company with operating capital sufficient to cover basic operations while the Company makes efforts to increase revenue and maintain cost management to make operations more profitable and sustainable. Lastly, the Company is seeking to raise capital via an equity offering. In the event the Company does not complete an offering, the Company expects to seek additional funding through private equity offering, debt and/or related party financings to provide additional operating capital. The Company may not be able to obtain financing on acceptable terms, or at all. |
Summary of Significant Accounting Policies |
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| Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules of the SEC and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, as filed with the SEC on December 23, 2025. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended September 30, 2025, as reported in the Company’s Annual Report on Form 10-K have been omitted.
The unaudited condensed consolidated financial statements represent a) the historical operations of Collab CA, which was formed on November 25, 2019, b) the historical operations of Collab Living LLC (“Collab Living”), a Delaware limited liability company formed on May 15, 2023, c) the initial capital structure of Collab Z, which was completed upon the Reorganization (see Note 1), and d) the results of Collab Z, which solely consisted of the issuance of shares (see Note 8).
In accordance with ASC 805-50-15-6, the Company determined that the share exchange was a reorganization of entities under common control. Collab Z and Collab CA maintained common control for the entire period for which the financial statements are presented through the Reorganization. The Company concluded that the entities were under common control via common ownership and common management. Specifically, the founder and former managing member of Collab CA is the founder and former Chairman of the Company and along with the YRQ Trust for which the trustees and beneficiaries are immediate family members, make up a control group that held voting and management control of Collab CA and the Company prior to and after the Reorganization
Therefore, in accordance with ASC 250-10-45 and ASC 805-50-45, the financial statements required retrospective consolidation of the entities for all periods presented. The financial statements as of March 31, 2026 and September 30, 2025 and for the three and six months ended March 31, 2026 and 2025 are prepared on a consolidated basis which includes Collab CA and Collab Living.
Principles of Consolidation
The Company evaluates its relationships with other entities to identify whether they are variable interest entities (“VIE”) as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated. The Company evaluated whether it was the primary beneficiary with its various related party entities it transacts with, and determined it is not the primary beneficiary of any entities.
Collab Living is 50% owned by Collab CA, and it was determined that Collab CA was the primary beneficiary in 2025 and 2024. Per ASC 810-10-50, the Company concluded that Collab CA was the primary beneficiary via its obligation to absorb losses (i.e. non-substantive voting rights) and its power to direct activities that most significantly impact Collab Living’s economic performance. Historically, Collab CA has funded the operations of Collab Living and Collab CA’s management has directed all Living’s activities.
In accordance with ASC 810-10-45-25, Collab Living’s results are consolidated within the Company’s financial statements. The separate assets, liabilities and results of operations of Collab Living are immaterial. Furthermore, the balance of non-controlling interests was nominal as of March 31, 2026 and September 30, 2025.
Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, valuation of common stock and related stock-based compensation. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.
Concentration of Credit Risk
The Company’s cash and cash equivalents are held at major financial institutions which are deemed credit worthy, in amounts that may at times exceed federally insured limits.
Restricted Cash
The Company classifies as restricted cash any cash and cash equivalents that are legally or contractually restricted as to withdrawal or use. During the six months ended March 31, 2026, the Company issued shares of Series C convertible preferred stock and the related cash proceeds were deposited by the investors directly into a segregated escrow account pursuant to the related Securities Purchase Agreement. The escrowed funds will be released to the Company only upon consummation of a Qualified Public Offering and otherwise are returned to the investors upon a redemption or termination event under the agreement. The escrowed balance is classified as current restricted cash because the contingencies governing release or return resolve within twelve months of the balance sheet date. As of March 31, 2026, restricted cash totaled $2,762,575, including $9,575 of interest earned during the period.
Interest earned on escrowed funds is recognized as interest income with a corresponding increase to restricted cash. The Company reconciles cash, cash equivalents, and restricted cash at the beginning and end of the period in the consolidated statement of cash flows in accordance with ASC 230-10-45-24 (ASU 2016-18).
Deferred Offering Costs
The Company complies with the requirements of Accounting Standards Codification (“ASC”) 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed. As of March 31, 2026 and September 30, 2025, the Company has $720,764 and $619,925, respectively, in capitalized deferred offering costs.
Investment in Joint Ventures
In March and April 2025, the Company entered into five separate limited liability company agreements (collectively, the “Joint Venture Agreements”) with five unaffiliated entities to form joint venture companies in Nevada, wherein the Company holds a 40% ownership stake in each joint venture company. For four of the five joint venture agreements, the Company issued 10,000 shares of common stock for each joint venture entity, which were valued at $20,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. For the remaining agreement, the Company issued 20,000 shares of common stock for the joint venture entity, which were valued at $40,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. Each joint venture was established to pursue property management and related real estate activities in specific local markets using our community-based property management platform. These entities operate independently and are owned jointly by us and our respective joint venture partners. As of March 31, 2026, all of the five joint venture agreements were in effect.
The Company holds investments in multiple joint ventures, all of which are accounted for under the equity method in accordance with ASC 323, Investments—Equity Method and Joint Ventures. The Company exercises significant influence, but does not have a controlling financial interest, in each of these joint ventures. Accordingly, the investments are initially recorded at cost and subsequently adjusted for the Company’s proportionate share of each joint venture’s net income or loss and other comprehensive income. The carrying amounts of these investments are evaluated for impairment in accordance with ASC 323-10-35 when events or changes in circumstances indicate that a decline in value may have occurred.
The Company evaluated the joint venture agreement under ASC 810 and determined it was not the primary beneficiary. As such, the Company accounted for the investment under ASC 323 as noted above.
As of March 31, 2026, the carrying value of the investment was $57,237, consisting of the $57,753 the carrying value of the investment as of September 30, 2025 and additional $516, representing the Company’s proportionate share of the joint venture’s net loss for the six months ended March 31, 2026.
Fair Value Measurements
Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
The carrying values of the Company’s assets and liabilities approximate their fair values. See Note 5 for fair value measurement disclosures.
Related Parties
Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries. The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
Accounts Receivable
The Company has accounts receivable with both related and third-party customers. Accounts receivable is recorded at the invoiced amount or earned fees pursuant to the agreement; are non-interest bearing and are stated at the historical carrying amount net of write-offs and allowances for uncollectible accounts. The Company establishes an allowance for uncollectible accounts based on historical experience and any specific customer collection issues that the Company has identified. There was no allowance for uncollectible accounts at March 31, 2026 and September 30, 2025.
Capitalized Software Development
The Company capitalizes certain costs related to the development of its property management system pursuant to ASC 350-40. Costs incurred during the development phase are capitalized only when it is deemed probable that the development will result in new or additional functionality. The Company determined that its customization efforts to existing software significantly enhanced functionality, involved substantial development effort and integrated with existing systems. As such, the Company capitalized these costs during the development phase. Costs associated with the preliminary project planning phase and the post-implementation phase are expensed as incurred. The capitalized development costs are amortized on a straight-line basis over the estimated useful life of the asset.
The system, which is expected to be the backbone of the Company’s property management service, was developed between November 2023 and August 2024, at which point it was ready for use. The Company began amortizing the costs over a three-year period starting in August 2024. Furthermore, in 2025 the Company began capitalizing another internally developed application. As of March 31, 2026, the application was not yet placed in service and therefore amortization has not commenced. See Note 6.
Revenue Recognition
The Company recognizes revenue from services in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when or as the Company’s performance obligations are satisfied by transferring control of the promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps as prescribed by ASC 606:
The Company only applies the five-step model to contracts when it is probable that it will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company has applied ASC 606 on a portfolio basis. The Company has elected the practical expedients, allowing the recognition of incremental costs of obtaining a contract as an expense when incurred, and not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.
The Company generates revenue through the following streams:
Property Management
The Company provides property management services for rental properties that include various elements based on the underlying contractual agreement. The Company earns a fixed percentage of monthly lease income. This revenue is recognized on an ongoing, monthly basis. The Company earns additional fees based on a fixed percentage of property-related expenses such as repairs and maintenance at the time the underlying costs are incurred. The Company, at times, is also eligible to earn commissions on the first month of a new lease agreement. Certain managed properties include a profit share arrangement based on guaranteed rental income whereby the Company shares in the excess rental income over the guaranteed amounts. Any losses incurred under these guarantees have historically been netted against accounts receivable and have not been material. The Company recognizes this revenue at the point in time the excess rental income is known. The Company recognizes this revenue monthly, when the profit share information becomes known.
Development and Construction Management
The Company provides services consisting of the oversight of property development and construction projects, including budget monitoring and timeline management. Development fees are recognized on an ongoing monthly basis through the completion of the service period.
Procurement
The Company facilitates procurement of materials and supplies for construction projects as well as provides related services for design of procured goods. Procurement fees related to ordered goods are recognized at a point in time upon the completion of the procurement service, which is shipment of the related materials. Revenue for design services are recognized at point in time when the related services are complete.
Renovation Management
Renovation management services include assisting in the acquisition, renovation, and disposition of properties. Renovation fees are recognized on an ongoing, monthly basis through the completion of the service period, which is based on the time elapsed of the renovation project. The Company also earns renovation service fees, which are recognized over time as the project progresses based on the actual costs incurred of the underlying renovation project. Acquisition and disposition fees are recognized at a point in time after the acquisition of the property.
EB-5 Immigration Investor Services
The Company identifies EB-5 immigration investment projects and assists investors with project identification, assistance and support during the project application process. Fees are recognized at a point in time upon the fulfillment of the EB-5 service obligations, which is when the EB-5 application package has been submitted. Payments are typically billed in two tranches, and any deferred revenue is recognized once performance obligations are met.
Consulting Services
The Company provides other real estate consulting services to both related and third parties that are defined by respective service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized over time as the deliverables are satisfied, or at a point in time if the contract calls for a defined deliverable. Each contract is assessed for performance obligations. There is generally no right of refund related to these services.
Each revenue source above is a different type of service being performed, and distinct from the other performance obligations.
Disaggregation of Revenue
A disaggregation of revenue for the three and six months ended March 31, 2026 and 2025 is as follows:
Deferred revenue primarily represents customer billings on EB-5 contracts for services not yet rendered or procurement services where shipment of goods has not occurred. EB-5 services generally require several months between the time of agreement with the customer and the completion of performance obligations. As of March 31, 2026 and September 30, 2025, the Company has deferred revenue of $35,000. The Company expects deferred revenue as of March 31, 2026 to be recognized within one year.
The following table summarizes the deferred revenue balance as of March 31, 2026 and September 30, 2025:
Concentrations
During the six months ended March 31, 2026 and 2025, 62% and 65% of the Company’s revenues were with related party properties under common control and/or management. During the six months ended March 31, 2026, one related-party property accounted for 15% of the Company’s total revenues. During the six months ended March 31, 2025, one related-party property accounted for 17% of the Company’s total revenues.
As of March 31, 2026 and September 30, 2025, 54% and 75%, respectively, of the Company’s accounts receivable were with related party properties under common control and/or management. As of March 31, 2025, one related party property accounted for 18% of the Company’s total receivables. As of September 30, 2025, one related party property accounted for 52% of the Company’s total receivables.
To date the Company has been highly dependent on related party customers as its primary source of revenue and cash flows from operations. The Company may be negatively affected by the loss of one of these customers, or a change in the related party relationship.
Future Equity Obligations
The Company has issued Simple Agreements for Future Equity (“SAFEs”) in exchange for cash financing. These amounts are classified as future equity obligations, which are long-term liabilities on the consolidated balance sheets. The Company has accounted for its SAFE investments as liability derivatives for which the Company will record changes to fair value through earnings.
Common Stock Subject to Redemption
The Company accounts for its shares of common stock subject to possible redemption in accordance with the guidance enumerated in ASC 480. Shares subject to mandatory redemption are classified as a liability instrument and is measured at fair value. Conditionally redeemable common shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control are classified as temporary equity. At all other times, common shares are classified as stockholders’ equity. The shares of common stock issued pursuant to the Joint Venture Agreements (see above and Note 8) feature certain redemption rights subject to the occurrence of uncertain future events, including the Company’s contemplated future public offering, and therefore are classified within temporary or mezzanine equity.
Redeemable Convertible Preferred Stock
The Company accounts for redeemable convertible preferred stock in accordance with ASC 480 and ASC 480-10-S99-3A. Convertible preferred stock that embodies an unconditional obligation to redeem on a specified date or upon an event certain to occur is classified as a liability and measured at fair value pursuant to ASC 480-10-25-4. Convertible preferred stock that embodies a conditional obligation to redeem upon an event not certain to occur, where redemption is at the option of the holder or may occur upon an event not solely within the Company’s control, is classified as temporary (mezzanine) equity in accordance with ASC 480-10-S99-3A. Such instruments are initially recognized at issuance proceeds, less direct issuance costs.
When an instrument classified as temporary equity is currently redeemable or its redemption is probable, the carrying amount is adjusted to redemption value at each reporting date pursuant to ASC 480-10-S99-3A.15, with the offset recorded against retained earnings (or, in the absence of retained earnings, additional paid-in capital). Adjustments to the carrying amount are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings per share. If the condition resolves in favor of redemption, the instrument is reclassified to a liability at fair value pursuant to ASC 480-10-25-7.
Convertible preferred stock, the redemption of which is solely within the Company’s control, is classified within permanent stockholders’ equity. The Company’s Series C Convertible Preferred Stock (see Note 9) is classified as mezzanine equity in accordance with the foregoing policy.
Stock-Based Compensation
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. For awards with service-based vesting conditions, the Company records the expense for using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.
The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient’s costs are classified.
The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.
Subscription Receivable
The Company records stock issuances at the effective date. If the subscription is not funded upon issuance, the Company records a subscription receivable as an asset on a balance sheet. When subscription receivables are not received prior to the issuance of financial statements at a reporting date in satisfaction of the requirements under FASB ASC 505-10-45-2, the subscription is reclassified as a contra account to stockholders’ equity on the balance sheet.
Net Income per Share
Net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Adjustments to the carrying amount of redeemable equity securities classified as temporary equity, including accretion to redemption value (which for the Series C Convertible Preferred Stock includes accrued cumulative dividends), are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive.
As of March 31, 2026 and September 30, 2025, there were an indeterminable number of shares that were potentially dilutive based on the Company’s outstanding future equity obligations for which conversion is contingent on a future event (see Note 7).
As of March 31, 2026, the Company had 702,975 outstanding stock options, each exercisable for shares of common stock, which were contingent upon the IPO, as well as 200,000 shares of Series B Preferred Stock outstanding convertible into 285,714 shares of common stock (see Note 9) and 9,135 shares related to conversion of Series B Preferred stock dividends and 688,250 shares of Series C Preferred Stock outstanding convertible into 764,722 shares of common stock (see Note 9) and 11,004 shares related to conversion of Series C Preferred stock dividends.
The following table sets forth the computation of basic and diluted income per share:
Diluted earnings per share for the three and six months ended March 31, 2026 was computed as $0.03 and $0.04 per share, respectively, as all potentially dilutive securities were excluded from the computation because the effect of dilutive securities caused diluted earnings per share to exceed basic earnings per share. Specifically, 1,050,437 shares of convertible preferred stock and 20,139 shares related to preferred dividend conversions were excluded because their effect was anti-dilutive under the if-converted method. Furthermore, 702,975 options were excluded from the diluted calculation because the performance contingency associated with a future offering had not been satisfied as of the reporting date.
Segment Reporting
In accordance with ASC 280, Segment Reporting (“ASC 280”), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker (“CODM”), or group, in deciding how to allocate resources and assess performance.
The CODM has been identified as the , who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment.
The key measures of segment profit or loss reviewed by our CODM are consolidated net income or loss. These metrics are reviewed and monitored by the CODM to manage and forecast cash. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. |
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Loan Receivable |
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Mar. 31, 2026 | |
| Loan Receivable [Abstract] | |
| LOAN RECEIVABLE | NOTE 4 – LOAN RECEIVABLE
In November 2024, the Company loaned $170,000 to a third party. The loan is unsecured, payable on demand and bears interest at a rate of 6.5% per annum commencing December 24, 2024.
In December 2024, the Company loaned an additional $1,300,000 to the same third party. The loan is unsecured, due on February 20, 2025, and bore interest at a rate of 8% per annum commencing January 4, 2025. In January 2025, the parties amended the agreement for the loan to be payable on demand and an interest rate of 6.5% per annum.
During the three and six months ended March 31, 2026, the Company recognized interest income of $4,253 and $12,608, respectively, on the respective loans, which is included in loan receivable in the accompanying statement of operations.
During the six months ended March 31, 2026, the Company received repayments totaling $250,000. As of March 31, 2026 and September 30, 2025, the outstanding loan receivable balance was $314,668 and $552,059, respectively. |
Fair Value Measurements |
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| Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE MEASUREMENTS | NOTE 5 – FAIR VALUE MEASUREMENTS
The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:
The Company measures the simple agreements for future equity at fair value based on significant inputs not observable in the market, which causes it to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the future equity obligations uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. Changes in the fair value of the simple agreements for future equity related to updated assumptions and estimates are recognized within the statements of operations.
The simple agreements for future equity may change significantly as additional data is obtained, impacting the Company’s assumptions regarding probabilities of outcomes used to estimate the fair value of the liability. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. The estimates of fair value may not be indicative of the amounts that could be realized in a current market exchange. Accordingly, the use of different market assumptions and/or different valuation techniques may have a material effect on the estimated fair value amounts, and such changes could materially impact the Company’s results of operations in future periods.
The Company utilized a probability-weighted average approach based on the estimated market value of the underlying securities and the potential settlement outcomes of the simple agreements for future equity, including a liquidity event or future equity financing as well as other settlement alternatives. Both the market value of the underlying securities and the probability of the settlement outcomes include unobservable Level 3 inputs.
As of March 31, 2026 and September 30, 2025, the Company assumed a 50% probability of a liquidity event as the primary ultimate settlement outcome of the future equity obligations. Based on the Company’s estimates regarding the probability of the triggering events and the Company’s valuation, management determined the fair value of the SAFEs were representative of the face value as of March 31, 2026 and September 30, 2025.
The following table presents changes in future equity obligations for the six months ended March 31, 2026:
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Intangible Assets, Net |
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| Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSETS, NET | NOTE 6 – INTANGIBLE ASSETS, NET
As of March 31, 2026 and September 30, 2025, intangible assets, net consisted of:
Amortization expense for the three months ended March 31, 2026 and 2025, was $13,333 and $13,333, respectively, which is included in costs of revenues in the consolidated statements of operations.
Amortization expense for the six months ended March 31, 2026 and 2025, was $26,667 and $26,667, respectively, which is included in costs of revenues in the consolidated statements of operations.
As of March 31, 2026, the internally developed application was not yet placed in service and therefore amortization has not commenced. |
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Debt |
6 Months Ended |
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Mar. 31, 2026 | |
| Debt [Abstract] | |
| DEBT | NOTE 7 – DEBT
Revolving Line of Credit
On March 14, 2024, the Company entered into a revolving line of credit agreement with East West Bank for a principal amount of up to $2,000,000. The line of credit was terminated in December 2025. The loan was secured by an assignment of a deposit account held by Collab CA’s former member, YRQ Irrevocable Trust. The loan had a variable interest rate based on the interest rate of the collateral’s certificate of deposit plus 1.5%. The rate was 5.905% per annum.
During the year ended September 30, 2025, the Company borrowed an aggregate of $1,300,000, which was used to provide a loan to a third party (see Note 4). On February 4, 2025, the Company paid off the line of credit with the funds from the collection of the Company’s due from related parties and receivables. As a result, the line of credit was closed prior to its contractual maturity date, and no amounts were outstanding or available under the facility as of March 31, 2026.
Future Equity Obligations
In April 2023, the Company entered into a SAFE agreement for proceeds of $25,000. The SAFE has a valuation cap of $50,000,000 and a discount of 25%, which will be applied to the valuation of the Company at the time of the triggering event in order to calculate the price per share for the investor.
The SAFE will convert into equity upon the occurrence of a future qualified financing round of at least $10,000,000 or another triggering event, including the event of a merger, acquisition or initial public offering (“IPO”).
As of March 31, 2026 and September 30, 2025, the fair value of SAFEs was $25,000 and $25,000, respectively. See Note 5 for fair value disclosures. |
Stockholders’ Equity |
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| STOCKHOLDERS’ EQUITY | NOTE 8 – STOCKHOLDERS’ EQUITY
The total number of shares of stock which the Company is authorized to issue is 200,000,000 shares, consisting of 190,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.001 par value per share. Of the 10,000,000 authorized shares of preferred stock, 5,000 shares were designated as Series X preferred stock, 1,250,000 shares were designated as Series B preferred stock, and 1,250,000 shares were designated as Series C preferred stock.
In October 2024, the Company issued 5,000 shares of Series X preferred stock to Collab CA’s sole member. In December 2024, pursuant to the Reorganization Agreement, the member of Collab CA exchanged 100% of its membership interests for 4,550,500 shares of the Company’s common stock. Both the issuance of Series X preferred stock and the issuance of common shares pursuant to the share exchange were conducted with YRQ Irrevocable Trust (“YRQ”), Collab CA’s sole member. These series of transactions are considered together as part of the Reorganization.
Series B Preferred Stock
Pursuant to a Series B Certificate of Designation filed with the Secretary of State of Nevada on June 5, 2025, the Company is authorized to issue up to 1,250,000 shares of Series B preferred stock with a stated value of $4.00 per share.
During the year ended September 30, 2025, the Company issued an aggregate of 200,000 shares of Series B preferred stock to accredited investors for a total purchase price of $800,000. Of this amount, $150,000 was collected in October 2025.
The Series B preferred stock has the following rights and preferences:
Automatic Conversion
Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering, Qualified Financing or Qualified Disposition, all of the outstanding shares of Series B preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B preferred stock by the Conversion Price.
Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering (public offering resulting in listing on a national exchange), Qualified Financing (equity financing greater than $3,000,000) or Qualified Disposition, all of the outstanding shares of Series B preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B preferred stock by the Conversion Price.
Conversion price - Each share of Series B Preferred Stock is convertible into shares of common stock based on its stated value, divided by a conversion price equal to 70% of the assumed offering price of $4.00 of the Company’s common stock. Accordingly, the number of common shares issuable upon conversion varies based on the offering price.
Accrual and Payment of Dividends
In the event the Qualified Public Offering is not consummated by March 31, 2026, dividends on such share of Series B preferred stock shall accrue, whether or not declared by the Board and whether or not there are funds legally available for the payment of dividends, at the rate of 8% per annum on the sum of the Liquidation Value which is $4.00 per share of Series B preferred stock (as adjusted for any stock splits, stock dividends, recapitalizations, or similar transaction with respect to the Series B preferred stock). All accrued dividends on any share shall be paid in cash only when, as and if declared by the Board out of funds legally available therefor or upon a Liquidation of the Series B preferred stock; provided, that to the extent not paid on the last day of March, June, September, and December of each calendar year (each such date, a “Dividend Payment Date”), all accrued dividends on any share shall accumulate and compound on the applicable Dividend Payment Date whether or not declared by the Board and shall remain accumulated, compounding dividends until paid pursuant hereto or converted pursuant to the terms herein. All accrued and accumulated dividends on the shares shall be prior and in preference to any dividend on any junior securities and shall be fully declared and paid before any dividends are declared and paid, or any other distributions or redemptions are made, on any junior securities, other than to (a) declare or pay any dividend or distribution payable on the common stock in shares of common stock or (b) repurchase common stock held by employees or consultants of the Company upon the termination of their employment or services pursuant to agreements providing for such repurchase. Accordingly, an aggregate of $41,260 preferred stock dividends were accrued for the six months ended March 31, 2026, of which $15,683 was paid, with the remaining $25,577 unpaid as of March 31, 2026.
Liquidation
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a “Liquidation”), the holders of shares of Series B preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities by reason of their ownership thereof, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends on all such shares (whether or not declared).
In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series B preferred stock upon a Liquidation, the holders of shares of Series B preferred stock then outstanding shall be entitled to participate with the holders of shares of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of Junior Securities on an as-converted basis held by each holder as of immediately prior to the Liquidation, in the distribution of all the remaining assets and funds of the Company available for distribution to its stockholders.
If upon any Liquidation the remaining assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Series B preferred stock the full preferential amount to which they are entitled, (i) the holders of the shares shall share ratably in any distribution of the remaining assets and funds of the Company in proportion to the respective full preferential amounts which would otherwise be payable in respect of the Series B preferred stock in the aggregate upon such Liquidation if all amounts payable on or with respect to such shares were paid in full, and (ii) the Company shall not make or agree to make any payments to the holders of Junior Securities.
Voting
The Series B preferred stock are not entitled to any votes with respect to any and all matters presented to the stockholders of the Company for their action or consideration (whether at a meeting of stockholders of the Company, by written action of stockholders in lieu of a meeting or otherwise), except as provided by law.
Reissuance of Series B Preferred Stock
Any shares of Series B preferred stock converted or otherwise acquired by the Company shall be cancelled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.
Protective Provisions
No provision of the Series B Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series B preferred stock (a “Supermajority Interest”) and any such written amendment, modification, or waiver will be binding upon the Company and each holder of Series B preferred stock; provided, that no such action shall change or waive (a) the definition of Liquidation Value, or (b) the rate at which or the manner in which dividends on the Series B preferred stock accrue or accumulate or the times at which such dividends become payable without the prior written consent of each holder of outstanding shares of Series B preferred stock; provided, further, that no amendment, modification, or waiver of the terms or relative priorities of the Series B preferred stock may be accomplished by the merger, consolidation, or other transaction of the Company with another Company or entity unless the Company has obtained the prior written consent of the all of the holders of the Series B preferred stock.
Redemption
The Series B designation allows for the shares to be redeemed solely at the discretion of the Company if an IPO has not commenced as of March 31, 2026 and provides for a window of repurchase. There are no circumstances in which the holder can force redemption.
Series C Preferred Stock
Pursuant to a Series C Certificate of Designation filed with the Secretary of State of Nevada in December 2025, the Company is authorized to issue up to 1,250,000 shares of Series C preferred stock with a stated value of $4.00 per share.
During the six months ended March 31, 2026, the Company issued an aggregate of 688,250 shares of Series C convertible preferred stock to investors for an aggregate purchase price of $2,753,000. Investor funds were deposited directly into a segregated escrow account at a third-party transfer agent pursuant to the related Securities Purchase Agreement. As of March 31, 2026 the escrowed balance of $2,762,575 (which includes $9,575 of interest earned during the period) is reflected as restricted cash within current assets on the consolidated condensed balance sheets.
The Series C convertible preferred stock is redeemable for cash if (i) a Qualified Public Offering is not consummated on or before September 30, 2026, or (ii) the related Securities Purchase Agreement is terminated by the Company. Holders of the Series C convertible preferred stock have no right to require redemption. Because redemption may occur upon an event that is not solely within the Company’s control, the Series C convertible preferred stock is classified as temporary (mezzanine) equity If a Qualified Public Offering is not consummated by September 30, 2026, or the Board of Directors approves termination of the Securities Purchase Agreement, the Company will reclassify the Series C convertible preferred stock from temporary equity to a liability measured at fair value at that date.
The Company adjusts the carrying amount of the Series C convertible preferred stock to its redemption value at each reporting date. The redemption value equals the aggregate liquidation value plus all accrued and unpaid cumulative dividends. As of March 31, 2026, the redemption value of the Series C convertible preferred stock was $2,792,615, comprising of the aggregate liquidation value of $2,753,000 and accrued and unpaid cumulative dividends of $39,615.
Cumulative dividends are added to the carrying amount recorded as a deemed dividend and reduces income available to common stockholders.
The Series C preferred stock has the following rights and preferences:
Automatic Conversion
Pursuant to the Series C Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering (public offering resulting in listing on a national exchange), all of the outstanding shares of Series C preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series C preferred stock by the Conversion Price.
Conversion Price
Each share of Series C preferred stock is convertible into shares of common stock based on its stated value, divided by a conversion price equal to 90% of the Qualified Public Offering price. Accordingly, the number of common shares issuable upon conversion varies based on the offering price.
Liquidation
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a “Liquidation”), the holders of shares of Series C preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends (whether or not declared).
In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series C preferred stock upon a Liquidation, the holders of shares of Series C preferred stock then outstanding shall be entitled to participate with the holders of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of junior securities on an as-converted basis held by each holder as of immediately prior to the Liquidation.
If upon any Liquidation the remaining assets of the Company available for distribution are insufficient to pay the holders of the shares of Series C preferred stock the full preferential amount, (i) the holders shall share ratably in any distribution in proportion to the respective full preferential amounts, and (ii) the Company shall not make any payments to the holders of junior securities.
Voting
The Series C preferred stock is not entitled to any votes with respect to matters presented to stockholders, except as required by law.
Protective Provisions
No provision of the Series C Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series C preferred stock (a “Supermajority Interest”). Certain provisions, including those relating to liquidation value and dividends, require the consent of each holder.
The consent of the holders of a Supermajority Interest is also required for certain actions, including amendments to the Certificate of Designation, incurrence of significant indebtedness outside the ordinary course of business, and other actions that may adversely affect the rights of the Series C preferred stock.
Reissuance of Series C Preferred Stock
Any shares of Series C preferred stock converted or otherwise acquired by the Company shall be cancelled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.
Series X Preferred Stock
Each share of Series X preferred stock is entitled to 1,000 votes. The holders of shares of Series X preferred stock are entitled to vote on all matters on which the Company’s common stock shall be entitled to vote.
The holders of the Series X preferred stock are not entitled to dividends.
The holders of the Series X preferred stock shall not be entitled to any liquidation preference and the shares are not subject to redemption. Upon the event of liquidation, dissolution or winding up of the Company, voluntary or involuntary, the holders of Series X preferred stock would be entitled to receive the initial stated value of the Company’s preferred stock.
The holders of the shares of Series X preferred stock shall not have any rights to convert such shares into, or exchange such shares for, shares of any other series or class of capital stock of the Company.
Common Stock
Each share of common stock entitles its holder to one vote per share on all matters to be voted or consented upon by the stockholders. Holders of our common stock are not entitled to cumulative voting rights with respect to the election of directors.
Holders of common stock are entitled to receive ratably such dividends or other distributions, if any, as may be declared by the Board out of funds legally available.
In the event of the liquidation, dissolution or winding up of our business, the holders of common stock are entitled to share ratably in the assets available for distribution after the payment of all of debts and other liabilities, subject to the prior rights of the holders of the Company’s preferred stock.
Collab CA Equity Transactions
During the six months ended March 31, 2026 and 2025, the Company’s related party made contributions of $20,000 and $16,000, respectively, all consisting of non-cash in-kind services.
The additions and contributions of Collab CA have been reflected in additional-paid in capital.
Collab Z Equity Transactions
In March and April 2025, the Company acquired a 40% interest in various joint ventures through the issue of 60,000 shares for a total consideration of $120,000, representing the fair value of the investment at the acquisition date of $2.00 per share using a market participation exit approach under ASC 820 whereby management considered factors such as the expected timing and offering price of the anticipated IPO,, and the underlying price of other equity transactions.
In the event that the Company fails to consummate an initial public offering of its securities (the “Collab IPO”) on or prior to December 31, 2026 (the “Collab IPO Deadline”):
The shares issued pursuant to the Joint Venture Agreement were determined to contain certain redemption rights and subject to the occurrence of uncertain future events (the Collab IPO) pursuant to ASC 480, and therefore the value of $120,000 was included within temporary equity on the consolidated balance sheet.
The assumptions in estimating the fair value of common stock include the identification of comparable companies, observable multiples and appropriate discounts based on the facts and circumstances. The Company also considered the selling price of preferred financings relative to the convertible features of the underlying commons stock. These estimates are highly subjective. Management will be required to estimate fair value, until such point in time that the Company had observable transactions or its shares are quoted on an exchange. |
Stock-Based Compensation |
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| Schedule of Information Related to Stock Options [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK-BASED COMPENSATION | NOTE 9 – STOCK-BASED COMPENSATION
Collab Z Inc. 2025 Equity Incentive Plan
The 2025 Equity Incentive Plan (the “2025 Plan”) permits the grant of awards, which provides for the grant of shares of stock options to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2025 Plan was 763,708 shares as of March 31, 2026. The option exercise price generally may not be less than the underlying stock’s fair market value at the date of the grant and generally have a term of ten years. The amounts granted each calendar year to an employee or non-employee is limited depending on the type of award. As of March 31, 2026, there were 60,734 shares available for grant under the 2025 Plan. Stock options granted under the 2025 Plan typically vest over a four-year period, with a one-year cliff as well as via specified milestones.
A summary of information related to stock options for the six months ended March 31, 2026 ais as follows:
As of March 31, 2026, the weighted average duration to expiration of outstanding options was 9.12 years.
stock-based compensation expense for stock options was recognized for the three and six months ended March 31, 2026 or 2025 as all granted options contain vesting conditions that are contingent upon an IPO. Total unrecognized compensation cost related to non-vested stock option awards amounted to $886,868 as of March 31, 2026, which will be recognized over a weighted average period of 1.98 years if the contingent vesting condition is met. |
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Related Party Transactions |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS
Revenue and Accounts Receivable
During the three months ended March 31, 2026 and 2025, the Company earned revenues of $392,777 and $295,769, respectively, from related parties. During the six months ended March 31, 2026 and 2025, the Company earned revenues of $776,373 and $525,636, respectively, from related parties. As of March 31, 2026 and September 30, 2025, the Company had accounts receivable of $586,227 and $266,580, respectively, with related parties.
These related parties are primarily properties for which the Company provides various real estate services, including property management, construction and development management, renovation services and consulting services. To date, the Company has also provided or received certain advances from these properties outside the normal revenue generating services, as noted below.
Due From / To Related Parties
Due from related parties includes a) cash advances made and b) expenses and other costs paid for on behalf of related parties. Due to related parties includes cash advances received from various related parties. The Company enters into these transactions based on the current working capital needs of the Company and these related entities. These advances are unsecured, due on demand and non-interest bearing.
The following is a summary of due from / to related parties:
YRQ Irrevocable Trust
During the year ended September 30, 2025, the Company advanced $64,970 to YRQ Irrevocable Trust (“YRQ”) in order to provide working capital, and YRQ repaid $2,324,820 to the Company in full settlement of all outstanding advances. These advances were unsecured, due on demand and non-interest bearing.
As of March 31, 2026, YRQ has paid the advance all in full and there was no balance outstanding.
In 2024, YRQ, as part of a control group that maintained control over Collab CA, became the sole member of Collab CA on August 21, 2024. Upon the Reorganization, YRQ received 4,550,500 shares of the Company’s common stock and 5,000 shares of the Company’s Series X preferred stock. |
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Commitments and Contingencies |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES
Minimum Rental Guarantee
The Company has a minimum rental guarantee for certain related party managed properties whereby the Company will pay the difference between the collected rent and the minimum rent guarantee. These guarantees require the Company to ensure a specified minimum gross revenue each month. Should the properties’ gross revenues fall below these thresholds, the Company is required to compensate for the shortfall. The maximum potential amount of future payments under these guarantees is estimated based on historical occupancy rates and market trends to project potential future shortfalls. The minimum rent guarantee thresholds are calculated annually based on the local market occupancy rates and prevailing market rental rates. The minimum rent guarantee terms are stipulated to last for the duration of the property management agreements unless terminated by either party or amended by mutual agreement. These agreements can be terminated by either party by providing 30 days’ notice.
As of the issuance date of these consolidated financial statements, the maximum potential rental guarantees were approximately $102,000 per month. Since entering into these terms, no shortfall payments have been incurred with the exception of a negligible amount by one property in the first and second quarters of 2026. The shortfall of this property is netted against the related accounts receivable from the property.
Contingencies
The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations. |
Subsequent Events |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | NOTE 12 – SUBSEQUENT EVENTS
Subsequent to March 31, 2026, the Company issued an additional 62,000 shares of Series C convertible preferred stock to investors for aggregate proceeds of $248,000, which were deposited into the segregated escrow account maintained by the third-party transfer agent pursuant to the related securities purchase agreement. |
Pay vs Performance Disclosure - USD ($) |
3 Months Ended | 6 Months Ended | ||||
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Mar. 31, 2026 |
Dec. 31, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Mar. 31, 2026 |
Mar. 31, 2025 |
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| Pay vs Performance Disclosure | ||||||
| Net Income (Loss) | $ 192,224 | $ 94,712 | $ 27,853 | $ 113,335 | $ 286,936 | $ 141,188 |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Summary Of Significant Accounting Policies (Policies) |
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| Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation
The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules of the SEC and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, as filed with the SEC on December 23, 2025. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended September 30, 2025, as reported in the Company’s Annual Report on Form 10-K have been omitted.
The unaudited condensed consolidated financial statements represent a) the historical operations of Collab CA, which was formed on November 25, 2019, b) the historical operations of Collab Living LLC (“Collab Living”), a Delaware limited liability company formed on May 15, 2023, c) the initial capital structure of Collab Z, which was completed upon the Reorganization (see Note 1), and d) the results of Collab Z, which solely consisted of the issuance of shares (see Note 8).
In accordance with ASC 805-50-15-6, the Company determined that the share exchange was a reorganization of entities under common control. Collab Z and Collab CA maintained common control for the entire period for which the financial statements are presented through the Reorganization. The Company concluded that the entities were under common control via common ownership and common management. Specifically, the founder and former managing member of Collab CA is the founder and former Chairman of the Company and along with the YRQ Trust for which the trustees and beneficiaries are immediate family members, make up a control group that held voting and management control of Collab CA and the Company prior to and after the Reorganization
Therefore, in accordance with ASC 250-10-45 and ASC 805-50-45, the financial statements required retrospective consolidation of the entities for all periods presented. The financial statements as of March 31, 2026 and September 30, 2025 and for the three and six months ended March 31, 2026 and 2025 are prepared on a consolidated basis which includes Collab CA and Collab Living. |
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| Principles of Consolidation | Principles of Consolidation
The Company evaluates its relationships with other entities to identify whether they are variable interest entities (“VIE”) as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated. The Company evaluated whether it was the primary beneficiary with its various related party entities it transacts with, and determined it is not the primary beneficiary of any entities.
Collab Living is 50% owned by Collab CA, and it was determined that Collab CA was the primary beneficiary in 2025 and 2024. Per ASC 810-10-50, the Company concluded that Collab CA was the primary beneficiary via its obligation to absorb losses (i.e. non-substantive voting rights) and its power to direct activities that most significantly impact Collab Living’s economic performance. Historically, Collab CA has funded the operations of Collab Living and Collab CA’s management has directed all Living’s activities.
In accordance with ASC 810-10-45-25, Collab Living’s results are consolidated within the Company’s financial statements. The separate assets, liabilities and results of operations of Collab Living are immaterial. Furthermore, the balance of non-controlling interests was nominal as of March 31, 2026 and September 30, 2025. |
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| Use of Estimates | Use of Estimates
The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, valuation of common stock and related stock-based compensation. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates. |
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| Concentration of Credit Risk | Concentration of Credit Risk
The Company’s cash and cash equivalents are held at major financial institutions which are deemed credit worthy, in amounts that may at times exceed federally insured limits. |
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| Restricted Cash | Restricted Cash
The Company classifies as restricted cash any cash and cash equivalents that are legally or contractually restricted as to withdrawal or use. During the six months ended March 31, 2026, the Company issued shares of Series C convertible preferred stock and the related cash proceeds were deposited by the investors directly into a segregated escrow account pursuant to the related Securities Purchase Agreement. The escrowed funds will be released to the Company only upon consummation of a Qualified Public Offering and otherwise are returned to the investors upon a redemption or termination event under the agreement. The escrowed balance is classified as current restricted cash because the contingencies governing release or return resolve within twelve months of the balance sheet date. As of March 31, 2026, restricted cash totaled $2,762,575, including $9,575 of interest earned during the period.
Interest earned on escrowed funds is recognized as interest income with a corresponding increase to restricted cash. The Company reconciles cash, cash equivalents, and restricted cash at the beginning and end of the period in the consolidated statement of cash flows in accordance with ASC 230-10-45-24 (ASU 2016-18). |
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| Deferred Offering Costs | Deferred Offering Costs
The Company complies with the requirements of Accounting Standards Codification (“ASC”) 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed. As of March 31, 2026 and September 30, 2025, the Company has $720,764 and $619,925, respectively, in capitalized deferred offering costs. |
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| Investment in Joint Ventures | Investment in Joint Ventures
In March and April 2025, the Company entered into five separate limited liability company agreements (collectively, the “Joint Venture Agreements”) with five unaffiliated entities to form joint venture companies in Nevada, wherein the Company holds a 40% ownership stake in each joint venture company. For four of the five joint venture agreements, the Company issued 10,000 shares of common stock for each joint venture entity, which were valued at $20,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. For the remaining agreement, the Company issued 20,000 shares of common stock for the joint venture entity, which were valued at $40,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. Each joint venture was established to pursue property management and related real estate activities in specific local markets using our community-based property management platform. These entities operate independently and are owned jointly by us and our respective joint venture partners. As of March 31, 2026, all of the five joint venture agreements were in effect.
The Company holds investments in multiple joint ventures, all of which are accounted for under the equity method in accordance with ASC 323, Investments—Equity Method and Joint Ventures. The Company exercises significant influence, but does not have a controlling financial interest, in each of these joint ventures. Accordingly, the investments are initially recorded at cost and subsequently adjusted for the Company’s proportionate share of each joint venture’s net income or loss and other comprehensive income. The carrying amounts of these investments are evaluated for impairment in accordance with ASC 323-10-35 when events or changes in circumstances indicate that a decline in value may have occurred.
The Company evaluated the joint venture agreement under ASC 810 and determined it was not the primary beneficiary. As such, the Company accounted for the investment under ASC 323 as noted above.
As of March 31, 2026, the carrying value of the investment was $57,237, consisting of the $57,753 the carrying value of the investment as of September 30, 2025 and additional $516, representing the Company’s proportionate share of the joint venture’s net loss for the six months ended March 31, 2026. |
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| Fair Value Measurements | Fair Value Measurements
Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
The carrying values of the Company’s assets and liabilities approximate their fair values. See Note 5 for fair value measurement disclosures. |
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| Related Parties | Related Parties
Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries. The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. |
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| Accounts Receivable | Accounts Receivable
The Company has accounts receivable with both related and third-party customers. Accounts receivable is recorded at the invoiced amount or earned fees pursuant to the agreement; are non-interest bearing and are stated at the historical carrying amount net of write-offs and allowances for uncollectible accounts. The Company establishes an allowance for uncollectible accounts based on historical experience and any specific customer collection issues that the Company has identified. There was no allowance for uncollectible accounts at March 31, 2026 and September 30, 2025. |
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| Capitalized Software Development | Capitalized Software Development
The Company capitalizes certain costs related to the development of its property management system pursuant to ASC 350-40. Costs incurred during the development phase are capitalized only when it is deemed probable that the development will result in new or additional functionality. The Company determined that its customization efforts to existing software significantly enhanced functionality, involved substantial development effort and integrated with existing systems. As such, the Company capitalized these costs during the development phase. Costs associated with the preliminary project planning phase and the post-implementation phase are expensed as incurred. The capitalized development costs are amortized on a straight-line basis over the estimated useful life of the asset.
The system, which is expected to be the backbone of the Company’s property management service, was developed between November 2023 and August 2024, at which point it was ready for use. The Company began amortizing the costs over a three-year period starting in August 2024. Furthermore, in 2025 the Company began capitalizing another internally developed application. As of March 31, 2026, the application was not yet placed in service and therefore amortization has not commenced. See Note 6. |
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| Revenue Recognition | Revenue Recognition
The Company recognizes revenue from services in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when or as the Company’s performance obligations are satisfied by transferring control of the promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps as prescribed by ASC 606:
The Company only applies the five-step model to contracts when it is probable that it will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company has applied ASC 606 on a portfolio basis. The Company has elected the practical expedients, allowing the recognition of incremental costs of obtaining a contract as an expense when incurred, and not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.
The Company generates revenue through the following streams:
Property Management
The Company provides property management services for rental properties that include various elements based on the underlying contractual agreement. The Company earns a fixed percentage of monthly lease income. This revenue is recognized on an ongoing, monthly basis. The Company earns additional fees based on a fixed percentage of property-related expenses such as repairs and maintenance at the time the underlying costs are incurred. The Company, at times, is also eligible to earn commissions on the first month of a new lease agreement. Certain managed properties include a profit share arrangement based on guaranteed rental income whereby the Company shares in the excess rental income over the guaranteed amounts. Any losses incurred under these guarantees have historically been netted against accounts receivable and have not been material. The Company recognizes this revenue at the point in time the excess rental income is known. The Company recognizes this revenue monthly, when the profit share information becomes known.
Development and Construction Management
The Company provides services consisting of the oversight of property development and construction projects, including budget monitoring and timeline management. Development fees are recognized on an ongoing monthly basis through the completion of the service period.
Procurement
The Company facilitates procurement of materials and supplies for construction projects as well as provides related services for design of procured goods. Procurement fees related to ordered goods are recognized at a point in time upon the completion of the procurement service, which is shipment of the related materials. Revenue for design services are recognized at point in time when the related services are complete.
Renovation Management
Renovation management services include assisting in the acquisition, renovation, and disposition of properties. Renovation fees are recognized on an ongoing, monthly basis through the completion of the service period, which is based on the time elapsed of the renovation project. The Company also earns renovation service fees, which are recognized over time as the project progresses based on the actual costs incurred of the underlying renovation project. Acquisition and disposition fees are recognized at a point in time after the acquisition of the property.
EB-5 Immigration Investor Services
The Company identifies EB-5 immigration investment projects and assists investors with project identification, assistance and support during the project application process. Fees are recognized at a point in time upon the fulfillment of the EB-5 service obligations, which is when the EB-5 application package has been submitted. Payments are typically billed in two tranches, and any deferred revenue is recognized once performance obligations are met.
Consulting Services
The Company provides other real estate consulting services to both related and third parties that are defined by respective service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized over time as the deliverables are satisfied, or at a point in time if the contract calls for a defined deliverable. Each contract is assessed for performance obligations. There is generally no right of refund related to these services.
Each revenue source above is a different type of service being performed, and distinct from the other performance obligations.
Disaggregation of Revenue
A disaggregation of revenue for the three and six months ended March 31, 2026 and 2025 is as follows:
Deferred revenue primarily represents customer billings on EB-5 contracts for services not yet rendered or procurement services where shipment of goods has not occurred. EB-5 services generally require several months between the time of agreement with the customer and the completion of performance obligations. As of March 31, 2026 and September 30, 2025, the Company has deferred revenue of $35,000. The Company expects deferred revenue as of March 31, 2026 to be recognized within one year.
The following table summarizes the deferred revenue balance as of March 31, 2026 and September 30, 2025:
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| Concentrations | Concentrations
During the six months ended March 31, 2026 and 2025, 62% and 65% of the Company’s revenues were with related party properties under common control and/or management. During the six months ended March 31, 2026, one related-party property accounted for 15% of the Company’s total revenues. During the six months ended March 31, 2025, one related-party property accounted for 17% of the Company’s total revenues.
As of March 31, 2026 and September 30, 2025, 54% and 75%, respectively, of the Company’s accounts receivable were with related party properties under common control and/or management. As of March 31, 2025, one related party property accounted for 18% of the Company’s total receivables. As of September 30, 2025, one related party property accounted for 52% of the Company’s total receivables.
To date the Company has been highly dependent on related party customers as its primary source of revenue and cash flows from operations. The Company may be negatively affected by the loss of one of these customers, or a change in the related party relationship. |
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| Future Equity Obligations | Future Equity Obligations
The Company has issued Simple Agreements for Future Equity (“SAFEs”) in exchange for cash financing. These amounts are classified as future equity obligations, which are long-term liabilities on the consolidated balance sheets. The Company has accounted for its SAFE investments as liability derivatives for which the Company will record changes to fair value through earnings. |
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| Common Stock Subject to Redemption | Common Stock Subject to Redemption
The Company accounts for its shares of common stock subject to possible redemption in accordance with the guidance enumerated in ASC 480. Shares subject to mandatory redemption are classified as a liability instrument and is measured at fair value. Conditionally redeemable common shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control are classified as temporary equity. At all other times, common shares are classified as stockholders’ equity. The shares of common stock issued pursuant to the Joint Venture Agreements (see above and Note 8) feature certain redemption rights subject to the occurrence of uncertain future events, including the Company’s contemplated future public offering, and therefore are classified within temporary or mezzanine equity. |
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| Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock
The Company accounts for redeemable convertible preferred stock in accordance with ASC 480 and ASC 480-10-S99-3A. Convertible preferred stock that embodies an unconditional obligation to redeem on a specified date or upon an event certain to occur is classified as a liability and measured at fair value pursuant to ASC 480-10-25-4. Convertible preferred stock that embodies a conditional obligation to redeem upon an event not certain to occur, where redemption is at the option of the holder or may occur upon an event not solely within the Company’s control, is classified as temporary (mezzanine) equity in accordance with ASC 480-10-S99-3A. Such instruments are initially recognized at issuance proceeds, less direct issuance costs.
When an instrument classified as temporary equity is currently redeemable or its redemption is probable, the carrying amount is adjusted to redemption value at each reporting date pursuant to ASC 480-10-S99-3A.15, with the offset recorded against retained earnings (or, in the absence of retained earnings, additional paid-in capital). Adjustments to the carrying amount are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings per share. If the condition resolves in favor of redemption, the instrument is reclassified to a liability at fair value pursuant to ASC 480-10-25-7.
Convertible preferred stock, the redemption of which is solely within the Company’s control, is classified within permanent stockholders’ equity. The Company’s Series C Convertible Preferred Stock (see Note 9) is classified as mezzanine equity in accordance with the foregoing policy. |
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| Stock-Based Compensation | Stock-Based Compensation
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. For awards with service-based vesting conditions, the Company records the expense for using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.
The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient’s costs are classified.
The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. |
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| Subscription Receivable | Subscription Receivable
The Company records stock issuances at the effective date. If the subscription is not funded upon issuance, the Company records a subscription receivable as an asset on a balance sheet. When subscription receivables are not received prior to the issuance of financial statements at a reporting date in satisfaction of the requirements under FASB ASC 505-10-45-2, the subscription is reclassified as a contra account to stockholders’ equity on the balance sheet. |
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| Net Income per Share | Net Income per Share
Net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Adjustments to the carrying amount of redeemable equity securities classified as temporary equity, including accretion to redemption value (which for the Series C Convertible Preferred Stock includes accrued cumulative dividends), are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive.
As of March 31, 2026 and September 30, 2025, there were an indeterminable number of shares that were potentially dilutive based on the Company’s outstanding future equity obligations for which conversion is contingent on a future event (see Note 7).
As of March 31, 2026, the Company had 702,975 outstanding stock options, each exercisable for shares of common stock, which were contingent upon the IPO, as well as 200,000 shares of Series B Preferred Stock outstanding convertible into 285,714 shares of common stock (see Note 9) and 9,135 shares related to conversion of Series B Preferred stock dividends and 688,250 shares of Series C Preferred Stock outstanding convertible into 764,722 shares of common stock (see Note 9) and 11,004 shares related to conversion of Series C Preferred stock dividends.
The following table sets forth the computation of basic and diluted income per share:
Diluted earnings per share for the three and six months ended March 31, 2026 was computed as $0.03 and $0.04 per share, respectively, as all potentially dilutive securities were excluded from the computation because the effect of dilutive securities caused diluted earnings per share to exceed basic earnings per share. Specifically, 1,050,437 shares of convertible preferred stock and 20,139 shares related to preferred dividend conversions were excluded because their effect was anti-dilutive under the if-converted method. Furthermore, 702,975 options were excluded from the diluted calculation because the performance contingency associated with a future offering had not been satisfied as of the reporting date. |
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| Segment Reporting | Segment Reporting
In accordance with ASC 280, Segment Reporting (“ASC 280”), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker (“CODM”), or group, in deciding how to allocate resources and assess performance.
The CODM has been identified as the , who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment.
The key measures of segment profit or loss reviewed by our CODM are consolidated net income or loss. These metrics are reviewed and monitored by the CODM to manage and forecast cash. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. |
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Summary of Significant Accounting Policies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregation of Revenue | A disaggregation of revenue for the three and six months ended March 31, 2026 and 2025 is as follows:
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| Schedule of Deferred Revenue | The following table summarizes the deferred revenue balance as of March 31, 2026 and September 30, 2025:
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| Schedule of Computation of Basic and Diluted Income Per Share | The following table sets forth the computation of basic and diluted income per share:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financial Assets and Liabilities Subject to Fair Value Measurements on a Recurring Basis | The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:
|
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| Schedule of Changes in Future Equity Obligations | The following table presents changes in future equity obligations for the six months ended March 31, 2026:
|
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Intangible Assets, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Intangilbe Assets, Net | As of March 31, 2026 and September 30, 2025, intangible assets, net consisted of:
|
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Stock-Based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Information Related to Stock Options [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Information Related to Stock Options | A summary of information related to stock options for the six months ended March 31, 2026 ais as follows:
|
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Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Due from to Related Parties | The following is a summary of due from / to related parties:
|
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Nature of Operations (Details) - shares |
6 Months Ended | ||
|---|---|---|---|
Mar. 31, 2026 |
Sep. 30, 2025 |
Dec. 31, 2024 |
|
| Nature of Operations [Line Items] | |||
| Date of incorporation | May 11, 2024 | ||
| Number of shares exchanged | 5,091,391 | 5,091,391 | |
| Common Stock [Member] | |||
| Nature of Operations [Line Items] | |||
| Number of shares exchanged | 4,550,500 | ||
| Collab CA LLC [Member] | |||
| Nature of Operations [Line Items] | |||
| Percentage of exchanged member interests | 100.00% |
Going Concern (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
Mar. 31, 2025 |
Sep. 30, 2024 |
|---|---|---|---|---|
| Going Concern [Line Items] | ||||
| Cash | $ 10,794 | $ 161,506 | $ 48,725 | $ 105,034 |
| Related Party [Member] | ||||
| Going Concern [Line Items] | ||||
| Amounts due from related parties | 1,006,805 | |||
| Net positive effect to cash | 390,000 | |||
| Third Party [Member] | ||||
| Going Concern [Line Items] | ||||
| Amounts due from related parties | $ 800,000 |
Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Schedule of Disaggregation of Revenue [Line Items] | ||||
| Revenue - related parties | $ 392,777 | $ 295,769 | $ 776,373 | $ 525,636 |
| Revenue | 386,172 | 82,549 | 485,819 | 282,549 |
| Total revenue | 778,949 | 378,318 | 1,262,192 | 808,185 |
| Property management [Member] | ||||
| Schedule of Disaggregation of Revenue [Line Items] | ||||
| Revenue - related parties | 121,071 | 192,752 | 229,767 | 357,414 |
| Revenue | 21,172 | 12,549 | 40,819 | 12,549 |
| Development and construction management [Member] | ||||
| Schedule of Disaggregation of Revenue [Line Items] | ||||
| Revenue - related parties | 148,806 | 103,017 | 214,806 | 119,514 |
| Procurement [Member] | ||||
| Schedule of Disaggregation of Revenue [Line Items] | ||||
| Revenue - related parties | 48,708 | |||
| Consulting services [Member] | ||||
| Schedule of Disaggregation of Revenue [Line Items] | ||||
| Revenue - related parties | 122,900 | 331,800 | ||
| Revenue | $ 365,000 | $ 70,000 | $ 445,000 | $ 270,000 |
Summary of Significant Accounting Policies - Schedule of Deferred Revenue (Details) - USD ($) |
6 Months Ended | 12 Months Ended |
|---|---|---|
Mar. 31, 2026 |
Sep. 30, 2025 |
|
| Schedule of Deferred Revenue [Abstract] | ||
| Balance, beginning | $ 35,000 | $ 40,000 |
| New service contracts | 35,000 | |
| Revenue recognized | (40,000) | |
| Balance, ending | $ 35,000 | $ 35,000 |
Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Income Per Share (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Mar. 31, 2026 |
Dec. 31, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Numerator: | ||||||
| Net Income (Loss) | $ 192,224 | $ 94,712 | $ 27,853 | $ 113,335 | $ 286,936 | $ 141,188 |
| Less: Preferred stock dividends | 55,396 | 80,875 | ||||
| Net income attributable to common shareholders | $ 136,828 | $ 27,853 | $ 206,061 | $ 141,188 | ||
| Weighted average common shares outstanding | ||||||
| Basic | 5,091,391 | 5,091,391 | 5,091,391 | 5,091,391 | ||
| Diluted | 5,091,391 | 5,091,391 | 5,091,391 | 5,091,391 | ||
| Plus: Effect of dilutive securities | ||||||
| Effect of dilutive securities, Diluted | 5,091,391 | 5,091,391 | 5,091,391 | 5,091,391 | ||
| Net income per common share | ||||||
| Basic | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.03 | ||
| Diluted | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.03 | ||
Loan Receivable (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Jan. 04, 2025 |
Mar. 31, 2026 |
Mar. 31, 2026 |
Sep. 30, 2025 |
Jan. 31, 2025 |
Dec. 31, 2024 |
Dec. 24, 2024 |
Nov. 30, 2024 |
|
| Loan Receivable [Line Items] | ||||||||
| Loan receivable due date | Feb. 20, 2025 | |||||||
| Repayments of loan receivable | $ 250,000 | |||||||
| Loan receivable | $ 314,668 | 314,668 | $ 552,059 | |||||
| Third Party [Member] | ||||||||
| Loan Receivable [Line Items] | ||||||||
| Loaned amount | $ 1,300,000 | $ 170,000 | ||||||
| Unsecured Loan [Member] | ||||||||
| Loan Receivable [Line Items] | ||||||||
| Interest rate | 8.00% | 6.50% | 6.50% | |||||
| Recognized interest income | $ 4,253 | $ 12,608 |
Fair Value Measurements (Details) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Fair Value Measurements [Abstract] | ||
| Assumed probability of a liquidity event as primary ultimate settlement outcome | 50.00% | 50.00% |
Fair Value Measurements - Schedule of Financial Assets and Liabilities Subject to Fair Value Measurements on a Recurring Basis (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Liabilities: | ||
| Future equity obligations | $ 25,000 | $ 25,000 |
| Total liabilities | 25,000 | 25,000 |
| Level 1 [Member] | ||
| Liabilities: | ||
| Future equity obligations | ||
| Total liabilities | ||
| Level 2 [Member] | ||
| Liabilities: | ||
| Future equity obligations | ||
| Total liabilities | ||
| Level 3 [Member] | ||
| Liabilities: | ||
| Future equity obligations | 25,000 | 25,000 |
| Total liabilities | $ 25,000 | $ 25,000 |
Fair Value Measurements - Schedule of Changes in Future Equity Obligations (Details) - Future Equity Obligations [Member] |
6 Months Ended |
|---|---|
|
Mar. 31, 2026
USD ($)
| |
| Schedule of Changes in Future Equity Obligations [Line Items] | |
| Outstanding balance at beginning | $ 25,000 |
| Change in fair value | |
| Outstanding balance at ending | $ 25,000 |
Intangible Assets, Net (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Intangible Assets, Net [Abstract] | ||||
| Amortization expense | $ 13,333 | $ 13,333 | $ 26,667 | $ 26,667 |
Intangible Assets, Net - Schedule of Intangilbe Assets, Net (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Schedule of Intangible Assets, Net [Line Items] | ||
| Less: Accumulated amortization | $ (88,889) | $ (62,222) |
| Intangible assets, net | 301,504 | 198,178 |
| Software Development - Property Management System [Member] | ||
| Schedule of Intangible Assets, Net [Line Items] | ||
| Intangible assets, gross | 160,000 | 160,000 |
| Internally Developed Application [Member] | ||
| Schedule of Intangible Assets, Net [Line Items] | ||
| Intangible assets, gross | $ 230,393 | $ 100,400 |
Debt (Details) - USD ($) |
6 Months Ended | |||
|---|---|---|---|---|
Apr. 30, 2023 |
Mar. 31, 2026 |
Sep. 30, 2025 |
Mar. 14, 2024 |
|
| Debt [Line Items] | ||||
| Borrowed amount | $ 1,300,000 | |||
| Future equity obligations | $ 25,000 | 25,000 | ||
| Valuation capital | $ 50,000,000 | |||
| Discount percentage of valuation capital | 25.00% | |||
| fair value of SAFEs | 25,000 | $ 25,000 | ||
| SAFE [Member] | ||||
| Debt [Line Items] | ||||
| Future equity obligations | $ 25,000 | |||
| Future qualified financing | $ 10,000,000 | |||
| Line of Credit [Member] | ||||
| Debt [Line Items] | ||||
| Percentage of deposit plus | 1.50% | |||
| Percentage of per annum | 5.905% | |||
| Principal amount | $ 2,000,000 |
Stock-Based Compensation (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2024 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Stock Based Compensation [Line Items] | ||||
| Grant shares | 115,000 | |||
| Stock-based compensation expense | ||||
| Collab Z Inc. 2025 Equity Incentive Plan [Member] | ||||
| Stock Based Compensation [Line Items] | ||||
| Number of shares authorized | 763,708 | 763,708 | ||
| Non-vested stock option | $ 886,868 | $ 886,868 | ||
| Weighted average period | 1 year 11 months 23 days | |||
| Grant shares | 60,734 | |||
| Outstanding options term | 9 years 1 month 13 days | |||
Related Party Transactions (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
Mar. 31, 2026 |
Mar. 31, 2025 |
Sep. 30, 2025 |
|
| Related Party Transactions [Line Items] | |||||
| Revenue | $ 386,172 | $ 82,549 | $ 485,819 | $ 282,549 | |
| working capital | $ 64,970 | ||||
| Repaid amount | $ 2,324,820 | ||||
| Common stock, shares issued | 5,091,391 | 5,091,391 | 5,091,391 | ||
| Related Party [Member] | |||||
| Related Party Transactions [Line Items] | |||||
| Revenue | $ 392,777 | $ 295,769 | $ 776,373 | $ 525,636 | |
| Accounts receivable - related parties | $ 586,227 | $ 586,227 | $ 266,580 | ||
| Common Stock [Member] | |||||
| Related Party Transactions [Line Items] | |||||
| Common stock, shares issued | 190,000,000 | 190,000,000 | |||
| Common Stock [Member] | YRQ Irrevocable Trust [Member] | |||||
| Related Party Transactions [Line Items] | |||||
| Common stock, shares issued | 4,550,500 | 4,550,500 | |||
| Series X Preferred Stock [Member] | |||||
| Related Party Transactions [Line Items] | |||||
| Common stock, shares issued | 5,000 | 5,000 | |||
Commitments and Contingencies (Details) |
6 Months Ended |
|---|---|
|
Mar. 31, 2026
USD ($)
| |
| Commitments and Contingencies [Abstract] | |
| Payments for rent | $ 102,000 |
Subsequent Events (Details) - Series C Convertible Preferred Stock [Member] |
6 Months Ended |
|---|---|
|
Mar. 31, 2026
USD ($)
shares
| |
| Subsequent Events [Line Items] | |
| Additional shares | shares | 62,000 |
| Aggregate proceeds of deposit | $ | $ 248,000 |