Overview of Wewards, Inc.

Wewards, Inc. (“Wewards” or “the Company”) is a Nevada-based company that has developed a web-based platform and mobile apps to enable consumers to purchase goods from merchants and earn rebates in the form of Bitcoin. The Company’s innovative “Bitcoin rewards ecosystem” is designed to transform traditional commerce by making the process beneficial for both merchants and consumers.

In April 2020, Wewards purchased intellectual property rights related to the game Megopoly, an MMO (Massively Multiplayer Online Game) where players can earn fractions of Bitcoins (satoshi) through buying, selling, and managing virtual real estate properties. The game, which is similar to Monopoly, allows players around the world to interact online and earn in-game currency that can be exchanged for Bitcoin.

Wewards has not generated any revenue to date, as it continues to develop its business and platform. The Company has been dependent on financing from its CEO and majority shareholder, Lei Pei, to fund its operations. Wewards terminated its office lease effective October 31, 2023, which has helped reduce its operating expenses.

Financial Performance for the Three Months Ended August 31, 2024 and 2023

The following table summarizes Wewards’ key financial results for the three-month periods ended August 31, 2024 and 2023:

Metric	August 31, 2024	August 31, 2023	Increase / (Decrease)
Revenue	$0	$0	$0
General and Administrative Expenses	$1,540	$765	$775 (101% increase)
Rent Expense	$75	$45,000	$(44,925) (100% decrease)
Professional Fees	$31,075	$28,787	$2,288 (8% increase)
Total Operating Expenses	$32,690	$74,552	$(41,862) (56% decrease)
Operating Loss	$(32,690)	$(74,552)	$(41,862) (56% decrease)
Total Other Income (Expense)	$(127,409)	$(126,281)	$(1,128) (1% increase)
Net Loss	$(160,099)	$(200,833)	$(40,734) (20% decrease)

Revenue Wewards did not generate any revenue during the three-month periods ended August 31, 2024 and 2023, as the Company continues to develop its platform and has not yet entered into any licensing agreements.

General and Administrative Expenses General and administrative expenses increased by $775, or 101%, during the three months ended August 31, 2024 compared to the same period in 2023. This increase was primarily due to higher compliance fees.

Rent Expense Rent expense decreased by $44,925, or 100%, during the three months ended August 31, 2024 compared to the same period in 2023. This decrease was due to the termination of the Company’s office lease effective October 31, 2023.

Professional Fees Professional fees increased by $2,288, or 8%, during the three months ended August 31, 2024 compared to the same period in 2023. This increase was primarily due to higher audit fees.

Operating Loss Wewards’ operating loss decreased by $41,862, or 56%, during the three months ended August 31, 2024 compared to the same period in 2023. This decrease was primarily due to the reduction in rent expense following the termination of the office lease.

Other Income (Expense) Other expense, on a net basis, increased by $1,128, or 1%, during the three months ended August 31, 2024 compared to the same period in 2023. This increase was primarily due to decreased interest income on cash balances due to falling interest rates.

Net Loss Wewards’ net loss decreased by $40,734, or 20%, during the three months ended August 31, 2024 compared to the same period in 2023. This decrease was primarily due to the reduction in rent expense, partially offset by the decrease in interest income.

Liquidity and Capital Resources

The following table summarizes Wewards’ cash flows for the three-month periods ended August 31, 2024 and 2023:

Cash Flows	August 31, 2024	August 31, 2023
Operating Activities	$(22,645)	$(79,092)
Investing Activities	$0	$0
Financing Activities	$0	$0
Net Decrease in Cash	$(22,645)	$(79,092)

Cash Flows from Operating Activities Wewards used $22,645 in cash for operating activities during the three months ended August 31, 2024, compared to $79,092 during the same period in 2023. The decrease in cash used in operating activities is primarily attributable to the Company’s decreased net loss due to the reduction in rent expense, partially offset by decreased interest income.

Cash Flows from Investing and Financing Activities Wewards did not engage in any investing or financing activities during the three-month periods ended August 31, 2024 and 2023.

Satisfaction of Cash Obligations for the Next 12 Months As of August 31, 2024, Wewards had $741,560 in cash on hand and a negative working capital of $2,916,413. The Company does not currently have sufficient funds to fund its operations at their current levels for the next twelve months and will require additional financing to continue its business development and expansion efforts.

Wewards has been dependent on financing from its CEO and majority shareholder, Lei Pei, to fund its operations. There is no assurance that Mr. Pei will continue to provide additional financing to the Company when needed. If Wewards is unable to obtain the necessary financing, it may not be able to continue as a going concern.

Critical Accounting Policies and Estimates

Wewards’ critical accounting policies and estimates include:

1. Concentrations of Credit Risk: The Company maintains its cash in bank deposit accounts, some of which may exceed federally insured limits. The Company has not experienced any losses in such accounts.

2. Revenue Recognition: The Company recognizes revenue in accordance with ASC 606 - Revenue from Contracts with Customers. This includes identifying performance obligations, determining the transaction price, and allocating the transaction price to each performance obligation. The Company also makes significant judgments around revenue arrangements, such as identifying performance obligations, determining the transaction price, and estimating the offering period.

3. Software Development Costs: The Company expenses software development costs before technological feasibility is reached and capitalizes development costs related to software applications once the preliminary project stage is complete and it is probable the project will be completed and the software will be used as intended.

Overall, Wewards’ financial performance for the three months ended August 31, 2024 showed some improvement compared to the same period in 2023, primarily due to the reduction in rent expense following the termination of the office lease. However, the Company continues to face significant challenges in terms of generating revenue and achieving profitability. Wewards’ ability to continue as a going concern is heavily dependent on its ability to secure additional financing, which is not guaranteed. The Company’s future success will depend on its ability to successfully develop and commercialize its platform and game offerings, as well as its ability to diversify its revenue streams beyond its reliance on related-party financing.