FingerMotion, Inc.

The following table sets out our cash and working capital as of August 31, 2025 and February 28, 2025:

At August 31, 2025, we had cash and cash equivalents of $221,836, as compared to cash and cash equivalents of $1,128,135 at February 28, 2025.

Our business model, particularly in mobile payment, requires periodic fund deposits with our telecommunication companies to obtain access to the mobile data and talk time we make available to consumers on our portal. Additionally, the expansion into areas such as cloud-based business, which features a longer collection cycle, as well as investments in other growth initiatives, has increased our accounts receivable and placed added pressure on our liquidity. To manage these operational demands effectively, we have had to carefully monitor and manage our cash flows. We anticipate that our available resources, together with expected operating inflows, will be sufficient to support our ongoing operations and meet near-term obligations. However, to sustain our growth and support strategic initiatives, including the rollout of our Command & Communication business and increase deposits with telecommunication companies, we will require additional capital. To support all these, we intend to continue to seek additional capital through public or private sales of our equity or debt securities, or both. We may also explore entering into financing arrangements with commercial banks or non-traditional lenders. We cannot provide investors with any assurance that we will be able to raise additional funding from the sale of our equity and/or debt securities on terms acceptable to us, or at all, in order to support the rollout of our Command & Communication business and increase our deposits with our telecommunications company clients.

Statement of Cashflows

The following table provides a summary of cash flows for the periods presented:

Cash Flow used in Operating Activities

Net cash used in operating activities increased by $182,077 in the six months ended August 31, 2025 compared to the six months ended August 31, 2024, primarily due to an increase in account receivable of ($4,610,390) (August 31, 2024: ($12,209,223)), increase in other receivable of ($425,360) (August 31, 2024: $527,972) and decrease in lease liability of ($3,495) (August 31, 2024: $11,448); offset by decrease in prepayment and deposit of $1,531,103 (August 31, 2024: ($22,226)), decrease in inventories of $15,187 (August 31, 2024: $nil), increase in accounts payable of $3,278,687 (August 31, 2024: $10,002,702) and increase in accrual and other payable of $209,687 (August 31, 2024: $1,369,869)

Cash Flow used in Investing Activities

During the six months ended August 31, 2025, net cash used in investing activities increased by $85 compared to $1,741 in the six months ended August 31, 2024.

Cash Flow provided by Financing Activities

During the six months ended August 31, 2025, net cash provided by financing activities was $2,205,493 compared to net cash provided by financing activities during the six months ended August 31, 2024 of $2,629,688. The decrease was due to the $751,122 repayment of the loan.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Subsequent Events

On September 30, 2025, our Company, our WOFE, JiuGe Management, and Shanghai Jihaohe, entered into an asset purchase agreement pursuant to which we caused JiuGe Management to acquire all of the intellectual property (including, without limitation, all of the inventions, software in source code or object code, trademarks, copyrights and trade secrets) underpinning our DaGe platform, in consideration of the issuance by us to Shanghai Jihaohe on October 2, 2025, of 1,500,000 fully-paid and non-assessable shares of our common stock at a deemed issuance price of $1.57 per share.

Critical Accounting Policies

For a complete summary of all our significant accounting policies refer to Note 2 -Summary of Principal Accounting Policies of the Notes to the Consolidated Financial Statements as presented under Item 8, Financial Statements and Supplementary Data in our Annual Report on Form 10-K for our fiscal year ended February 28, 2025 filed with the SEC on May 29, 2025.

For our Critical Accounting Policies, please refer to the “Critical Accounting Policies” section under Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for our fiscal year ended February 28, 2025 filed with the SEC on May 29, 2025.

Recently Issued Accounting Pronouncements

The Company does not believe recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.