MEDICAL EXERCISE INC.

What they do

Historically, the company owned and operated spinal care and back pain clinics, including a trial site in North Palm Beach, Florida. During the fiscal year ended March 31, 2026, it wound down those clinical operations, closed the trial site, and divested its clinical physical assets and treatment equipment. It now operates exclusively as an intellectual property, technology integration and franchise support platform, providing franchisees with an operational blueprint, smart-equipment ecosystems and AI infrastructure under the OnCore Longevity Centers brand.

Revenue drivers

• Upfront franchise fees — One-time fees paid when a franchise agreement is signed; the only revenue recognized in the latest quarter, a single $1,000 franchise fee.
• Ongoing technology fees — Recurring fees charged to franchisees for access to the company's technology and systems, per the stated franchise revenue model.
• Royalties on franchisee gross sales — Royalties tied to franchisee gross sales, which scale with network openings and per-unit performance rather than company-owned clinics.

Recent performance

Revenue for the quarter ended June 30, 2026 was $1,000, consisting entirely of a one-time franchise fee from Degco Fitness Ventures Ltd., an entity controlled by the company's President and CEO; revenue for the comparable 2025 quarter was $0. The net loss for the June 30, 2026 quarter was ($52,666), a 25% improvement from the ($70,291) loss a year earlier, driven by lower SG&A ($48,227 versus $61,378) and lower depreciation and amortization ($542 versus $2,881). Net cash used in operating activities was ($46,722) for the quarter. For the fiscal year ended March 31, 2026, annual revenue was $1,294 and annual net income was ($226,708), with operating cash flow of ($194,751).

Strategy

The company's stated direction is to grow an asset-light international franchising platform under the OnCore Longevity Centers brand, targeting the 40+ proactive aging market with a private-pay subscription model built on smart strength training, precision nutrition, dynamic assessments and medical affiliates. Management says it intends to recruit Area Development Managers and convert experienced independent personal trainers into multi-unit franchise operators across 55 newly segmented North American territories, with plans to expand internationally. The company reports minimal capital requirements and a streamlined corporate cost structure under this model. Capital needs are intended to be met through issuing debt or equity securities and increasing product and service sales. No company-owned clinics remain following the liquidation of physical assets and treatment equipment.

Risks

• Going concern — The company reported minimal cash, negative working capital and negative total equity at June 30, 2026, and states substantial doubt exists about its ability to continue as a going concern.
• No operating history in franchising — The company has no meaningful operating history under the asset-light franchise model, and management warns investors cannot rely on legacy performance to predict store-opening cadence or royalty capacity.
• Related-party revenue — The only revenue recognized in the June 30, 2026 quarter was a $1,000 franchise fee from Degco Fitness Ventures Ltd., an entity controlled by the company's President and CEO.
• Funding and scale risk — The company must raise additional debt or equity capital and recruit Area Development Managers and franchisees across 55 territories, and management states there is no assurance it can raise sufficient capital or grow revenue fast enough to offset operating losses.

Outlook

Management's stated plan is to raise additional capital through debt or equity securities and increase sales of products and services, while executing the franchise rollout. The company says that without sufficient financing or revenue growth it may be unable to continue developing its products and services and may have to cease operations. No specific guidance, unit-opening targets or revenue forecasts were provided in the excerpts. The latest reported financials show continuing operating cash outflows and losses.