CALLAN JMB INC.

Current report

Revenue for the three and six months ended June 30, 2026, was $1,376,326 and $2,482,468 respectively as compared to $1,666,309 and $3,115,687 for the three and six months ended June 30, 2025, a decrease of $289,983 and $633,219 respectively. This decrease was due to the decrease in demand for our emergency preparedness services by certain states and local governments.

Current report

Cost of revenue for the three and six months ended June 30, 2026, was $618,380 and $1,297,288, respectively, as compared to $1,022,439 and $1,858,724 for the three and six months ended June 30, 2025, respectively. The majority of the decrease in the cost of revenue is driven by the decrease in revenue for both comparative periods. The decrease in the comparative three-month period is also attributable to a $44,639 decrease in shippers and components costs and a $21,608 decrease in direct labor costs, partially offset by a $20,208 increase in repairs and maintenance expense. The decrease in the comparative six-month period is also attributable to a $244,296 decrease in direct labor costs, a $116,679 decrease in freight forwarding expense, a $107,215 decrease in shippers and components costs, and a $93,043 decrease in medical supplies expense.

Current report

Our selling, general and administrative costs include personnel costs, consulting and professional fees, and other overhead expenses. Selling, general and administrative expenses for the three and six months ended June 30, 2026, were $2,104,592 and $4,233,015 respectively compared to $2,050,410 and $3,901,878 respectively for the three and six months ended June 30, 2025, an increase of $54,182 and $331,137 respectively. The increase in the comparative three-month period was primarily attributable to a $232,118 increase in legal expenses and a $66,711 increase in salaries and benefits, partially offset by a $123,366 decrease in accounting fees, a $36,013 decrease in bad debt expense, and a $34,038 decrease in marketing strategy expenses. The increase in the comparative six-month period was primarily attributable to a $274,411 increase in legal expenses, a $153,038 increase in accounting fees, a $147,260 increase in salaries and benefits, a $95,335 increase in rent expense, and a $71,928 increase in other operating costs, partially offset by a $187,944 decrease in marketing strategy expenses and a $91,201 decrease in other professional fees.

Current report

As of June 30, 2026, the Company had an accumulated deficit of $(14,706,991) and negative cash flow from operating activities of $(2,075,943) for the six months ended June 30, 2026. In addition, the Company incurred a net loss of $(4,446,977) for the six months ended June 30, 2026 and had cash and cash equivalents of $860,273 as of June 30, 2026. The Company has recurring losses, has not yet generated sufficient cash flows from operations to fund its activities, and expects to continue incurring operating losses and using cash in support of its business plan. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these condensed consolidated financial statements are issued. Accordingly, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business.

Current report

Since inception, the Company has funded its operations through operating cash flows, the ELOC Facility, and capital contributions or other funding from Mr. Williams. Management will continue to evaluate additional sources of capital, including equity and debt financings. However, the availability and terms of future financing are subject to market conditions, investor demand, and the Company’s operating performance, and there can be no assurance that additional capital will be available when needed or on acceptable terms

Current report

On June 29, 2026, the Company received an additional notice from Nasdaq indicating that it was not in compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum closing bid price of $1.00 per share. The Company has until December 28, 2026 to regain compliance with the minimum bid price requirement. The notices have no immediate effect on the listing of the Company’s common stock, which continues to trade on The Nasdaq Capital Market under the symbol “CJMB.”

Current report

The Company is actively monitoring its compliance with Nasdaq’s continued listing requirements and evaluating alternatives to regain and maintain compliance. There can be no assurance that the Company will regain compliance with the applicable Nasdaq listing standards or otherwise maintain compliance with the continued listing requirements of The Nasdaq Capital Market.

Current report

For the six months ended June 30, 2026, cash used in operating activities was $(2,075,943) compared to cash used in operating activities of $(2,124,970) during the six months ended June 30, 2025, a decrease of $49,027. This decrease was primarily due to a decrease in accounts receivable of $82,091, in addition to the balance of recovering from credit losses for $37,750 with resulting net change in accounts receivable of $119,841.

Previous report

Revenue for the three months ended March 31, 2026, was $1,106,143 as compared to $1,449,377 for the three months ended March 31, 2025, a decrease of $343,234. The decrease was primarily due to the non-renewal of a government contract and lower revenues from non-government customers compared to the prior year period.

Previous report

Cost of revenue for the three months ended March 31, 2026, was $678,908 as compared to $833,437 for the three months ended March 31, 2025, a decrease of $154,529. The decrease was primarily due to lower revenue levels during the period.

Previous report

Our selling, general and administrative costs include personnel costs, consulting and professional fees, and other overhead expenses. Selling, general and administrative expenses for the three months ended March 31, 2026, were $2,128,423, compared to $1,854,316 for the three months ended March 31, 2025, an increase of $274,107. Operating expenses increased during the three months ended March 31, 2026, as compared to the prior year period. Payroll expenses increased approximately $87,400 primarily due to executive compensation increases pursuant to employee agreements, while Board of Directors compensation increased approximately $7,293 due to the recognition of a full quarter of director compensation in 2026 as compared to prorated amounts in the prior year period. Consulting and professional fees increased approximately $43,000 primarily due to the use of additional consultants and professional service providers in 2026 compared to the prior year period. Facility rental expense increased approximately $57,000 primarily due to lease expenses associated with the Company’s new corporate office, which did not exist in the prior year period. Information technology support expenses increased approximately $9,697 due to expanded company support services, while dues and subscriptions increased approximately $47,800 primarily due to additional post-IPO subscriptions and public company compliance costs. The Company also recognized an increase in stock-based compensation expense of approximately $63,500. Partially mitigating these increases were decreases in travel and meals expense of approximately $24,000 and other facility expenses of approximately $14,000.

Previous report

For the three months ended March 31, 2026, cash used in operating activities was $1,679,880 compared to cash used in operating activities of $1,561,698 during the three months ended March 31, 2025, an increase of $118,182. This increase in cash used in operating activities was primarily due to the higher net loss of $1,974,464, increased accounts receivable of $284,563 and increased other current assets of $183,054, partially offset by non-cash ELOC-related expenses of $1,092,222, a change in the fair value of derivative liability of $338,229, a favorable change in the right-of-use liability, net adjustment of $272,115, a favorable change in accounts payable and accrued expenses of $184,478, the absence of a $199,491 use of cash for prepaid insurance in the prior-year period, a decrease in inventory of $82,893, a favorable change in deferred revenue of $89,052 and an increase in stock-based compensation of $63,500.