UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2026

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to _______________

Commission File Number: 001-41187

FINGERMOTION, INC.

(Exact name of registrant as specified in its charter)

Delaware		46-4600326
(State or other jurisdiction of organization)		(I.R.S. employer identification no.)

111 Somerset Road, Level 3

Singapore

238164

(Address of principal executive offices)

(Zip code)

(347) 349-5339

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value		FNGR		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	¨

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 61,310,361 shares of common stock outstanding as of July 10, 2026.

FINGERMOTION, INC.

FORM 10-Q

TABLE OF CONTENTS

PART 1 – FINANCIAL INFORMATION	3

ITEM 1 – FINANCIAL STATEMENTS	3
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	32
Three Months Ended May 31, 2026 Compared to Three Months Ended May 31, 2025	40
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	46
ITEM 4 – CONTROLS AND PROCEDURES	46
Evaluation of Disclosure Controls and Procedures	46
Changes in internal control over financial reporting	47

PART II – OTHER INFORMATION	48

ITEM 1 – LEGAL PROCEEDINGS	48
ITEM 1A – RISK FACTORS	48
ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUIRY SECURITIES	68
ITEM 3 – DEFAULTS UPON SENIOR SECURITIES	68
ITEM 4 – MINE SAFETY DISCLOSURES	68
ITEM 5 – OTHER INFORMATION	68
ITEM 6 – EXHIBITS	69

PART 1 – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

FINGERMOTION, INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the three months ended May 31, 2026

(Unaudited - Expressed in U.S. Dollars)

FingerMotion, Inc.

Condensed Consolidated Balance Sheets


	May 31,			February 28,
	2026			2026
	(Unaudited)
ASSETS

Current Assets
Cash and cash equivalents	$	987,391		$	68,596
Accounts receivable, net		44,927,081			44,832,946
Inventories		309,492			258,159
Prepayment and deposit		4,932,114			4,800,636
Other receivables		1,777,834			1,811,226
Total Current Assets		52,933,912			51,771,563
Non-current Assets
Equipment		27,530			28,366
Intangible assets		1,833,914			2,030,291
Right-of-use asset		20,428			19,201
Deferred tax asset		7,083,991			6,996,568
Total Non-current Assets		8,965,863			9,074,426
TOTAL ASSETS	$	61,899,775		$	60,845,989

LIABILITIES AND STOCKHOLDER’S DEFICIT

Current Liabilities
Accounts payable	$	35,105,714		$	34,412,906
Accrual and other payables		9,540,101			10,678,667
Loan payable, current portion		576,233			576,233
Convertible note payable, current portion		3,319,767			—
Lease liability, current portion		10,245			10,604
Total Current Liabilities		48,552,060			45,678,410
Non-current Liabilities
Deferred tax liabilities		18,248			18,002
Total Non-current Liabilities		18,248			18,002
TOTAL LIABILITIES	$	48,570,308		$	45,696,412

STOCKHOLDERS’ EQUITY
Preferred stock, par value $.0001 per share; Authorized 1,000,000 shares; issued and outstanding -0- shares.		—			—

Common Stock, par value $.0001 per share; Authorized 200,000,000 shares; issued and outstanding 61,281,308 shares and 61,281,308 issued and outstanding at May 31, 2026 and February 28, 2026 respectively		6,129			6,129
Additional paid-in capital		54,652,121			54,652,121
Additional paid-in capital - stock options		1,798,658			1,798,658
Accumulated deficit		(43,185,481	)		(41,185,154	)
Accumulated other comprehensive income		105,570			(84,104	)
Stockholders’ equity before non-controlling interests		13,376,997			15,187,650
Non-controlling interests		(47,530	)		(38,073	)
TOTAL STOCKHOLDERS’ EQUITY		13,329,467			15,149,577

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	61,899,775		$	60,845,989

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FingerMotion, Inc.

Unaudited Condensed Consolidated Statements of Operations


	Three Months Ended
	May 31,			May 31,
	2026			2025
Revenue	$	650,089		$	8,458,743
Cost of revenue		(441,611	)		(8,306,222	)

Gross profit		208,478			152,521

Amortization & depreciation		(197,592	)		(10,553	)
General & administrative expenses		(1,236,546	)		(1,510,426	)
Marketing cost		(48,029	)		(12,106	)
Research & development		(56,280	)		(172,652	)
Credit impairment loss		(522,946	)		(307,967	)
Stock compensation expenses		(81,166	)		(127,747	)
Total operating expenses		(2,142,559	)		(2,141,451	)
Net loss from operations		(1,934,081	)		(1,988,930	)

Other income (expense):
Interest income		4,982			5,137
Interest expense		(78,824	)		(51,881	)
Exchange rate gain (loss)		(1,861	)		3,761
Other income		—			9,152
Total other income (expense)		(75,703	)		(33,831	)

Net loss before income tax	$	(2,009,784	)	$	(2,022,761	)
Income tax expenses		—			—
Net loss	$	(2,009,784	)	$	(2,022,761	)

Less: Net loss attributable to the non-controlling interest		(9,457	)		(14,205	)
Net loss attributable to the Company’s stockholders	$	(2,000,327	)	$	(2,008,556	)

Other comprehensive income:
Foreign currency translation adjustments		189,674			152,309
Comprehensive loss	$	(1,810,653	)	$	(1,856,247	)
Less: Comprehensive income (loss) attributable to non-controlling interest		(616	)		542
Comprehensive loss attributable to the Company	$	(1,810,037	)	$	(1,856,789	)

NET LOSS PER SHARE
Loss Per Share - Basic	$	(0.03	)	$	(0.04	)
Loss Per Share - Diluted	$	(0.03	)	$	(0.04	)

NET LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY
Loss Per Share - Basic	$	(0.03	)	$	(0.04	)
Loss Per Share - Diluted	$	(0.03	)	$	(0.04	)

Weighted Average Common Shares Outstanding - Basic		61,281,308			57,289,873
Weighted Average Common Shares Outstanding - Diluted		61,281,308			57,289,873

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FingerMotion, Inc.

Unaudited Condensed Consolidated Statement of Stockholders’ Equity


												Accumulated
					Capital Paid		Additional					Other
	Common Stock				in Excess		Paid-in capital		Accumulated			Comprehensive			Stockholders’			Non-controlling
	Shares		Amount		of Par Value		stock options		Deficit			Income			equity			interest			Total
Balance at March 1, 2026		61,281,308		6,129		54,652,121		1,798,658		(41,185,154	)		(84,104	)		15,187,650			(38,073	)		15,149,577

Accumulated other comprehensive income		—		—		—		—		—			189,674			189,674			—			189,674
Net Loss		—		—		—		—		(2,000,327	)		—			(2,000,327	)		(9,457	)		(2,009,784	)

Balance at May 31, 2026		61,281,308		6,129		54,652,121		1,798,658		(43,185,481	)		105,570			13,376,997			(47,530	)		13,329,467

												Accumulated
					Capital Paid		Additional					Other
	Common Stock				in Excess		Paid-in capital		Accumulated			Comprehensive			Stockholders’			Non-controlling
	Shares		Amount		of Par Value		stock options		Deficit			Income			equity			interest			Total
Balance at March 1, 2025		57,141,186		5,714		47,304,416		1,473,996		(34,187,384	)		(943,276	)		13,653,466			5,490			13,658,956

Common stock issued for cash		1,679,743		168		2,956,447		—		—			—			2,956,615			—			2,956,615
Common stock issued for professional service		27,500		3		56,760		—		—			—			56,763			—			56,763
Common stock issued for conversion of customer deposit		560,000		56		1,399,944		—		—			—			1,400,000			—			1,400,000
Accumulated other comprehensive income		—		—		—		—		—			152,309			152,309			—			152,309
Net Loss		—		—		—		—		(2,008,556	)		—			(2,008,556	)		(14,205	)		(2,022,761	)

Balance at May 31, 2025		59,408,429		5,941		51,717,567		1,473,996		(36,195,940	)		(790,967	)		16,210,597			(8,715	)		16,201,882

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FingerMotion, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows


	Three Months Ended
	May 31,			May 31,
	2026			2025
Net (loss)	$	(2,009,784	)	$	(2,022,761	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Share based compensation expenses		81,166			127,747
Amortization and depreciation		197,592			10,553
Provision for expected credit losses		522,946			307,967
Amortization of debt discount		44,767			—
Gain on disposal of equipment		—			30

Change in operating assets and liabilities:
(Increase) decrease in accounts receivable		(11,443	)		(6,005,779	)
(Increase) decrease in prepayment and deposit		(148,973	)		862,490
(Increase) decrease in others receivable		57,431			71,455
(Increase) decrease in inventories		(47,263	)		43,613
Increase (decrease) in accounts payable		220,815			5,375,987
Increase (decrease) in accrual and other payables		(1,251,456	)		26,048
Increase (decrease) due to lease liability		(1,452	)		(1,567	)
Net Cash (used in) operating activities		(2,345,654	)		(1,204,217	)

Cash flows from investing activities
Purchase of equipment		—			(1,826	)
Net cash (used in) investing activities		—			(1,826	)

Cash flows from financing activities
Proceeds from convertible promissory note		3,275,000			—
Proceeds from issuance of common stock		—			2,956,615
Net cash provided by financing activities		3,275,000			2,956,615

Effect of exchange rates on cash and cash equivalents		(10,551	)		(15,469	)

Net change in cash		918,795			1,735,103

Cash at beginning of period		68,596			1,128,135

Cash at end of period	$	987,391		$	2,863,238

Supplemental disclosures of cash flow information:
Interest paid	$	78,824		$	51,881

Supplemental disclosures of non-cash investing and financing activities:
Common stock issued for professional service	$	—		$	56,763
Conversion of customer deposit to shares	$	—		$	1,400,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FINGERMOTION, INC.

Three months ended May 31, 2026 and 2025

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 1 – Nature of Business and basis of Presentation

FingerMotion, Inc. aka Property Management Corporation of America (the “Company”) was incorporated on January 23, 2014, under the laws of the State of Delaware. The Company then offered management and consulting services to residential and commercial real estate property owners who rent or lease their property to third-party tenants.

The Company changed its name to FingerMotion, Inc. on July 13, 2017, after a change in control. In July 2017 the Company acquired all of the outstanding shares of Finger Motion Company Limited (“FMCL”), a Hong Kong corporation formed on April 6, 2016, that is an information technology company which then specialized in operating and publishing mobile games.

Pursuant to the Share Exchange Agreement with FMCL, effective July 13, 2017 (the “Share Exchange Agreement”), the Company agreed to exchange the outstanding equity stock of FMCL held by the FMCL Shareholders for shares of common stock of the Company. At the Closing Date, the Company issued 12,000,000 shares of common stock to the FMCL shareholders. In addition, the Company issued 600,000 shares to other consultants in connection with the transactions contemplated by the Share Exchange Agreement.

The transaction was accounted for as a “reverse acquisition” since, immediately following completion of the transaction, the shareholders of FMCL effectuated control of the post-combination Company. For accounting purposes, FMCL was deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of FMCL (i.e., a capital transaction involving the issuance of shares by the Company for the shares of FMCL). Accordingly, the consolidated assets, liabilities, and results of operations of FMCL became the historical financial statements of FingerMotion, Inc. and its subsidiaries, and the Company’s assets, liabilities and results of operations were consolidated with FMCL beginning on the acquisition date. No step-up in basis or intangible assets or goodwill were recorded in this transaction.

As a result of the Share Exchange Agreement and the other transactions contemplated thereunder, FMCL became a wholly-owned subsidiary of the Company.

On October 16, 2018, the Company through its indirect wholly-owned subsidiary, Shanghai JiuGe Business Management Co., Ltd. (“JiuGe Management”), entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which Shanghai JiuGe Information Technology Co., Ltd. (“JiuGe Technology”) became JiuGe Management’s contractually controlled affiliate. The use of VIE agreements is a common structure used to acquire operational control of PRC corporations, particularly in certain industries in which foreign investment is restricted or forbidden by the PRC government. The VIE Agreements include a Consulting Services Agreement, a Loan Agreement, a Power of Attorney Agreement, a Call Option Agreement, and a Share Pledge Agreement in order to secure the connection and commitments of JiuGe Technology.

On March 7, 2019, JiuGe Technology also acquired 99% of the equity interest of Beijing XunLian (“BX”), a subsidiary that provides bulk distribution of SMS messages for JiuGe customers at discounted rates.

Finger Motion Financial Company Limited was incorporated on January 24, 2020, and is 100% owned by FingerMotion, Inc. The company has been activated for the insurtech business during the last quarter of the fiscal year 2021where the Big Data division secured its first contract and recorded revenue.

Shanghai TengLian JiuJiu Information Communication Technology Co., Ltd. was incorporated on December 23, 2020, for the purpose of venturing into mobile phone sales in China. It is 99% owned by JiuGe Technology.

On February 5, 2021, JiuGe Technology disposed of its 99% owned subsidiary, Suzhou BuGuNiao Digital Technology Co., Ltd which was established to venture into R&D projects.

FINGERMOTION, INC.

Three months ended May 31, 2026 and 2025

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 1 – Nature of Business and basis of Presentation (continued)

Shanghai KeShunXiang Automobile Service Co., Ltd. was incorporated on April 10, 2024 for the purpose of venturing into the communication and streaming services in China. It is 99% owned by JiuGe Technology.

Zhejiang ChangXin Communication Equipment Co., Ltd. was incorporated on March 28, 2025 for the purpose of venturing into the research and development, manufacturing and sales of communication equipment, as well as the technical service business of communication equipment in China. It is 70% owned by Shanghai KeShunXiang Automobile Service Co., Ltd.

Shanghai XiaoYi Bin Tong Technology Co., Ltd. was incorporated on April 15, 2025 for the purpose of venturing into the sale of household appliances and electronic products in China. It is 80% owned by JiuGe Technology.

Note 2 - Summary of Principal Accounting Policies

Principles of Consolidation and Presentation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries. All intercompany accounts, transactions, and profits have been eliminated upon consolidation.

Variable interest entity

Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (“VIEs”). ASC 810 requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity.

Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. JiuGe Technology’s actual stockholders do not hold any kick-out rights that affect the consolidation determination.

Through the VIE agreements disclosed in Note 1, the Company is deemed the primary beneficiary of JiuGe Technology. Accordingly, the results of JiuGe Technology have been included in the accompanying consolidated financial statements. JiuGe Technology has no assets that are collateral for or restricted solely to settle their obligations. The creditors of JiuGe Technology do not have recourse to the Company’s general credit.

FINGERMOTION, INC.

Three months ended May 31, 2026 and 2025

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 2 - Summary of Principal Accounting Policies (continued)

The following assets and liabilities and of the VIE and VIE’s subsidiaries are included in the accompanying condensed consolidated financial statements of the Company as of May 31, 2026 and February 28, 2026:

Assets and liabilities of the VIE

Schedule of variable interest entity
	May 31, 2026		February 28, 2026
	(unaudited)
Current assets	$	9,378,562	$	9,099,111
Non-current assets		421,553		415,307
Total assets	$	9,800,115	$	9,514,418

Current liabilities	$	14,785,043	$	14,276,754
Non-current liabilities		18,248		18,002
Total liabilities	$	14,803,291	$	14,294,756

Assets and liabilities of the VIE’s Subsidiaries

	May 31, 2026		February 28, 2026
	(unaudited)
Current assets	$	41,639,027	$	41,411,094
Non-current assets		6,042,999		5,962,380
Total assets	$	47,682,026	$	47,373,474

Current liabilities	$	49,193,830	$	48,142,684
Non-current liabilities		—		—
Total liabilities	$	49,193,830	$	48,142,684

Operating Result of VIE


	For the Three Months Ended May 31, 2026			For the Three Months Ended May 31, 2025
	(unaudited)			(unaudited)
Revenue	$	497,117		$	129,512
Cost of revenue		(357,959	)		(72,819	)
Gross profit	$	139,158		$	56,693

Amortization and depreciation		(380	)		(4,634	)
General and administrative expenses		(281,924	)		(410,535	)
Research & development		—			(36,064	)
Credit impairment loss		(17,562	)		(41,170	)
Total operating expenses	$	(299,866	)	$	(492,403	)

Loss from operations	$	(160,708	)	$	(435,710	)

Interest income		4,981			4,735
Interest expense		(93	)		—
Other income		—			266
Total other income	$	4,888		$	5,001

Tax expense		—			—

Net profit (loss)	$	(155,820	)	$	(430,709	)

FINGERMOTION, INC.

Three months ended May 31, 2026 and 2025

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 2 - Summary of Principal Accounting Policies (continued)

Operating Result of VIE’s Subsidiaries


	For the Three Months Ended May 31, 2026			For the Three Months Ended May 31, 2025
	(unaudited)			(unaudited)
Revenue	$	166,068		$	7,412,639
Cost of revenue		(83,652	)		(7,344,151	)
Gross profit	$	82,416		$	68,488

Amortization and depreciation		(707	)		(238	)
General and administrative expenses		(329,908	)		(263,639	)
Marketing cost		(48,029	)		(12,106	)
Research & development		—			(66,968	)
Credit impairment loss		(427,476	)		(273,009	)
Total operating expenses	$	(806,120	)	$	(615,960	)

Loss from operations	$	(723,704	)	$	(547,472	)

Interest income		1			27
Other income		—			8,886
Total other income	$	1		$	8,913

Tax expense		—			—

Net profit (loss)	$	(723,703	)	$	(538,559	)

Use of Estimates

The preparation of the Company’s financial statements in conformity with generally accepted accounting principles of the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates.

Certain Risks and Uncertainties

The Company relies on cloud-based hosting through a global accredited hosting provider. Management believes that alternate sources are available; however, disruption or termination of this relationship could adversely affect our operating results in the near-term.

FINGERMOTION, INC.

Three months ended May 31, 2026 and 2025

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 2 - Summary of Principal Accounting Policies (continued)

Segment reporting

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in consolidated financial statements for detailing the Company’s business segments. Based on the criteria established by ASC 280, The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s CODM, specifically the Company’s CEO and CFO, for making decisions, allocating resources and assessing performance. The Company does not distinguish revenues, costs and expenses between segments in its internal reporting, but instead reports costs and expenses by nature as a whole. Based on the management’s assessment, the Company determines that it has only one operating segment and therefore one reportable segment as defined by ASC 280. Furthermore, the whole of the Group’s revenue is derived in or from China with all operation being carried out in China, and the Company’s long-lived assets are located in China, no geographical segments are presented. As such, all financial segment information required by the authoritative guidance can be found in these consolidated financial statements.

Foreign Currency Translation and Transactions

The Company’s reporting currency is the US dollar. The functional currencies of the Company’s foreign subsidiaries are their respective local currencies (China Renminbi, Singapore dollar and Hong Kong dollar), which are the monetary unit of account of the principal economic environment in which the Company’s foreign subsidiaries operate. Assets and liabilities of the foreign subsidiaries are translated into US dollars at exchange rates in effect at each period end. Revenues and expenses are translated at average exchange rates in effect during the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity.

Translation of amounts from RMB into USD has been made at the following exchange rates for the respective periods:


Balance sheet items, except for equity accounts
May 31, 2026	RMB6.7667 to $1.00
February 28, 2026	RMB6.8590 to $1.00
Income statement and cash flows items
For the three months ended May 31, 2026	RMB6.8453 to $1.00
For the three months ended May 31, 2025	RMB7.2541 to $1.00

Identifiable Intangible Assets

Identifiable intangible assets are recorded at cost and are amortized over 3 - 10 years. Similar to tangible property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

FINGERMOTION, INC.

Three months ended May 31, 2026 and 2025

Notes to the Unaudited Condensed Consolidated Financial Statements

Note 2 - Summary of Principal Accounting Policies (continued)

Impairment of Long-Lived Assets

The Company classifies its long-lived assets into: (i) computer and office equipment; (ii) furniture and fixtures, (iii) leasehold improvements, and (iv) finite – lived intangible assets.

Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary.

The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They