The following discussion and analysis of the financial condition and results of our operations should be read in conjunction with our financial statements and the notes to those statements. In addition to historical financial information, this discussion contains forward-looking statements reflecting our management's current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed under the heading "Risk Factors" in our Consolidated Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on January 15, 2019.

Unless otherwise indicated or the context requires otherwise, the words "we," "us," "our," the "Company" or "our Company," "Quad M" refer to Quad M Solutions, Inc., an Idaho corporation.

The Company, through its two wholly owned operating subsidiaries, NuAxess and PR345 n/k/a OpenAxess, Inc., business, is engaged in providing a full spectrum of benefit and insurance related staffing and business consulting services, principally to smaller and mid-sized employers, offering innovative means of providing their employees with multiple levels of employee benefits including major medical health insurance, as well as providing other financial and business consulting services. The Company has entered into third-party agreements with select strategic partners to provide comprehensive programs administered through its vendor relationship agreements. The Company offers programs that include innovative and affordable major medical health insurance plans and other employee benefit products and services. The NuAxess Smart Healthcare Plan is a proprietary health plan that is an ERISA-qualified, self-insured plan, that includes wellness and prevention programs, among other features. Our primary markets are small and mid-size group employers, sometimes referred to as the 'gig' economy.

Results of Operations for the Three Months Ended September 30, 2022 compared to the Three Months Ended September 30, 2021





Revenue

During the three months ended September 30, 2022 and September 30, 2021 the Company received $18,245,469 and $11,143,539, respectively in revenue principally from insurance premiums and we incurred $15,589,862 and $11,239,661 in expense directly related to this revenue.





Expenses

Operating expenses for the three-month period ended September 30, 2022 was $1,609,578 compared to $1,108,547 for the same period of the prior year.





Working Capital

The Company's net profit for the three month-period ended Sep 30, 2022 was $999,426 compared to a net loss of $5,067,727 at September 30, 2021. This net profit is due primarily to an increase in revenue and rationalization of COGs and SG&A.

During the three months ended September 30, 2022, our principal sources of liquidity included cash received from notes payable and operations. During the three months ended September 30, 2022 our principal source of liquidity included proceeds from short term loans. We intend to use new capital in the form of new equity or debt to further advance objectives. Net cash from and used for operating activities totaled $314,584 and $3,521,708 for the nine months ending September 30, 2022 and 2021, respectively. Net cash provided by financing activities totaled $151,291 and $3,308,726 for the nine-month periods ending September 30, 2022 and 2021, respectively. The change between 2022 and 2021 is primarily attributed to an increase revenue and proceeds from short term loans in 2022 as compared to 2021.

As reflected in our accompanying financial statements, we have an accumulated deficit of $22,700,898 and $30,908,777 for the nine-month period ending September 30, 2022 and year ended December 31, 2021, respectively. Notwithstanding our belief that we will be able to continue to raise capital through the issuance of convertible notes at terms and condition acceptable to the Company, of which there can be no assurance, these factors indicate that we may be unable to continue in existence in the absence of receiving additional funding. In addition to our operating expenses, management's plans for the next twelve months include approximately $4 million of cash expenditures for development and expansion of our health insurance and employee benefits business operations. While there can be no assurance, the Company believes that it will be able to generate sufficient capital from operations, equity and/or debt financing to fully-implement its business plan of offering principally to smaller and mid-sized employers a full spectrum of employee benefit and insurance services enabling employers to offer a variety of plans providing their employees with multiple levels of benefits including major medical health insurance, as well as providing financial and business consulting services.





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Off-Balance Sheet Arrangements

The Company has not undertaken any off-balance sheet transactions or arrangements. We have no guarantees or obligations other than those which arise out of normal business operations.

Critical Accounting Policies and Estimates

Our significant accounting policies are more fully described in Note 2 to our Unaudited Condensed Consolidated Financial Statements.

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