FingerMotion, Inc.

The following table sets out our cash and working capital as of November 30, 2025 and February 28, 2025:

At November 30, 2025, we had cash and cash equivalents of $24,214, 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. During the period, liquidity constraints limited our ability to fund certain operations, which contributed to reduced activity levels. Management continues to monitor cash flows and align expenditures with available resources. We believe that its existing working capital and cash flows from operations will support near-term operating requirements. We may seek additional financing to support ongoing operations. There can be no assurance that additional financing will be available on acceptable terms, or at all.

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 decreased by $952,171 in the nine months ended November 3031, 2025 compared to the nine months ended November 30, 2024, primarily due to an increase in account receivable of ($11,061,678) (November 30, 2024: ($17,296,795)), increase in other receivable of ($533,276) (November 30, 2024: $1,438,128) and decrease in lease liability of ($5,791) (November 30, 2024: $10,314); offset by decrease in prepayment and deposit of $1,961,515 (November 30, 2024: $1,390,794), decrease in inventories of $23,869 (November 30, 2024: ($31,096)), increase in accounts payable of $8,464,307 (November 30, 2024: $13,319,337) and increase in accrual and other payable of $1,593,083 (November 30, 2024: $567,593)

Cash Flow used in Investing Activities

During the nine months ended November 30, 2025, net cash used in investing activities increased by $18,380 compared to $1,705 in the nine months ended November 30, 2024 due to the purchase of equipment.

Cash Flow provided by Financing Activities

During the nine months ended November 30, 2025, net cash provided by financing activities was $2,570,778 compared to net cash provided by financing activities during the nine months ended November 30, 2024 of $3,239,306. The decrease was primarily attributable to lower net borrowings during the period, including repayments of loans made earlier in the fiscal year. During the three months ended November 30, 2025, we also raised additional capital through sales of common stock under our at-the-market offering program. Proceeds from these issuances were used primarily for general working capital purposes. Notwithstanding these proceeds, we continue to experience working capital constraints, and our liquidity remains dependent on operating performance, the timing of customer collections, and access to additional financing.

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 December 15, 2025, the Company issued a news release to announce that it has entered into a non-binding term sheet with a voice and messaging telecom service provider regarding the potential acquisition by FingerMotion. The term sheet outlines preliminary terms and enables both parties to proceed with mutual due diligence and negotiate a definitive acquisition agreement.

No binding agreement has been executed at this time, and there can be no assurance that the parties will enter into a definitive agreement or that any transaction will be completed. Any potential acquisition remains subject to the negotiation and execution of final transaction documents, completion of due diligence, customary closing conditions, and approval by the Company’s Board of Directors.

Subsequent to November 30, 2025, we continued to issue shares of its common stock under the Sales Agreement. These issuances did not impact the Company’s financial position as of November 30, 2025.

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.