{"url_path":"/sec/cik-0002065287/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 Management’s","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/2065287/0002065287-26-000008-index.html","accession_number":"0002065287-26-000008","cik":"0002065287","ticker":null,"issuer_name":"Dankon Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/2065287/0002065287-26-000008-index.html","primary_entity_key":"0002065287","primary_entity_name":"Dankon Corp"},"word_count":824,"has_tables":true,"body_markdown":"**ITEM 7. Management’s\nDiscussion and Analysis of Financial Condition and Results of Operations** \n\nWe\nare a development stage corporation with limited operations and minimal revenues from our business operations.\n\nThe following\ndiscussion of our financial condition and results of operations should be read in conjunction with (i) our audited financial statements\nas of February 28, 2026, that appear elsewhere in this filing. This filing contains certain forward-looking statements and our future\noperating results could differ materially from those discussed herein. Such forward-looking statements involve known and unknown risks,\nuncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future\nresults, performance or achievements expressed or implied by such forward- looking statements. Given these uncertainties, readers are\ncautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to\nannounce publicly the results of any revisions of the forward -looking statements contained herein to reflect future events or developments.\n\n \n\n8\n\n**Company Overview**\n\n** **\n\nDankon Corporation operates\nan online platform for generating congratulatory messages. This platform is designed to serve various users, including businesses and\nindividuals. Our technology will enable users to create personalized messages for a wide range of events and milestones. Our platform\n(https://dankon.co/) aims to provide a user-centric service designed for efficient and personalized congratulatory message creation.\n\n  \n\n**Overview**\n\n \n\nThe following discussion\nof our financial condition and results of operations should be read in conjunction with our audited financial statement as of February\n28, 2026.\n\n** **\n\n**Results of Operations**\n\nTotal revenue for\nthe year ended February 28, 2026 was $56,363, while there was no revenue for the period from November 11, 2024 (the inception date) to\nFebruary 28, 2025.\n\n \n\nTotal expenses for the\nyear ended February 28, 2026 were $97,978, made up of professional fees of $18,863, marketing expenses of $19,050, server lease expenses\nof $15,000, website support services of $5,607, bank service charges of $382, amortization expense of $13,470, IT and development services\nof $25,220, office expense of $145, registered agent services of $75 and exchange loss of $166.\n\n \n\nTotal expenses for the\nperiod from November 11, 2024 (the inception date) to February 28, 2025 were $6,230, made up of professional fees of $199, website development\nservices of $6,000 and bank service charges of $31.\n\n \n\nThe increase in revenue and expenses this year\nwas primarily due to overall company growth. Specifically, we expanded our customer base through advertising and marketing, paid for\nsoftware development services, and amortized intangible assets for the full year, compared to the previous period.\n\n \n\nFor the years ended February 28, 2026 and 2025,\nthe company recorded a net loss of $41,615 and $6,230, respectively.\n\n** **\n\n**Liquidity and Capital Resources**\n\nAs of February 28, 2026\nour accumulated deficit was $47,845 and we incurred operating losses of $41,615 and used cash in operations of $45,961 during the year\nended February 28, 2026. These factors raise substantial doubt about our ability to continue as a going concern.\n\n \n\nFor\nthe year ended February 28, 2026, the Company used $45,961 in cash for operating activities, compared to $31,770 of cash provided by\noperating activities for the period from November 11, 2024 (the inception date) to February 28, 2025.\n\n9\n\nCash used in\ninvesting activities for the development of intangible assets amounted to $69,190 for the year ended February 28, 2026. For the comparable\nperiod of the previous year (from November 11, 2024 to February 28, 2025), the volume of similar investments amounted to $45,000.\n\nAdditionally,\nthe Company received $115,535 in cash financing activities for the year ended February 28, 2026, compared to $16,730 in the previous\nyear, mostly due to proceeds from loans from related parties and proceeds from the sale of common stock.\n\nIn the opinion of our\nmanagement, additional funding is required to meet our development goals for the next twelve months. While there are currently no guarantees,\nwe expect to be able to generate revenue primarily through the sale of pricing plans for our services.  \n\nFunding may\nalso be raised through equity financing, debt financing, or other sources, which may result in the dilution in the equity ownership\nof our shares. Our future depends upon our ability to obtain further financing, the successful operations of business, a successful\nmarketing and promotion program, attraction, and, further in the future, achieving a profitable level of operations.\n\n**Off-Balance Sheet\nArrangements **\n\nWe\nhave no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition,\nchanges in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.\n\n**Critical\nAccounting Policies**\n\nOur\nfinancial analysis and results are based on financial statements prepared in accordance with U.S. GAAP. This process requires management\nto apply key accounting policies and make critical estimates and assumptions. Because these judgments impact the reported values of our\nassets, liabilities, and expenses, understanding their nature is essential to a full evaluation of our financial position."}