CLBZ

The Current Industry Challenges, Our Solution,
and Our Opportunity

The Challenge

The property management industry faces longstanding
inefficiencies and high costs due to outdated value chain structures. Collab Z has identified key pain points and opportunities for transformation:

1.
Inefficiency in Traditional Models: Legacy property management structures are bloated with excessive layers of human oversight and reliance on third-party service providers. This increases management costs, creates long lead times, reduces transparency, and often results in misaligned interests between stakeholders.

2.
Low Tenant Satisfaction: Traditional systems overlook the potential contributions of tenants who are willing to assist with routine tasks, such as communications, minor repairs, maintenance requests, and leasing coordination. This underutilization contributes to lower tenant satisfaction, higher turnover rates, and poorly maintained properties.

3.
Scalability Challenges: Traditional models struggle to scale across multiple properties and regions due to their dependence on local staffing and manual processes. This increases operational complexity and limits growth opportunities.

4.
Lag in Technology Adoption: Compared to other industries, property management has been slow to adopt disruptive technologies that could overhaul outdated operational models. This presents a significant opportunity for innovation.

Our Solution

Collab Z has developed its Collab Platform, a
community-based property management solution that directly connects tenants with property management tasks, offering them financial incentives
to contribute to their living environment and foster stronger community connections. AI-enhanced features for our Collab Platform
are currently under development, with phased launches planned over an 18-month period that had begun in early 2025.

1

Our model enhances occupancy rate, eliminates
unnecessary management layers, reduces operating expenses, and improves tenant satisfaction by delivering responsive services through
Community Pros and professional service providers. Also, the Collab Platform enables faster entry into new market without building local
teams.

As part of this model, Community Pros (“CPs”)
are tenants who assist with property management tasks, such as leasing showings, minor repairs, administrative work, and customer support
in exchange for financial incentives.

For repair and maintenance tasks requiring specialized
expertise, professional service providers (licensed contractors such as HVAC, plumbing, and electrical repair specialists) handle the
work.

CPs play a coordination and communication role,
similar to property managers, contacting professional service providers, scheduling service appointments, and ensuring that repairs are
completed as expected in a timely manner.

Our Opportunity

According to IBIS World, the property management
industry reached $128.3 billion in revenue by the end of 2024, growing at a CAGR of 2.0%. As the first community-based property management
solution, Collab Z is positioned to revolutionize this massive market.

With over 300,000 property management companies
and 20 million rental properties in the U.S. (Sources: Truelist, February 2024; Rubyhome, August 2023), the opportunity for disruption
is immense. The Collab Platform is designed to:

●
Streamline operations

●
Enhance tenant engagement

●
Maximize property value

By applying a community-driven model and planning
the integration of AI-powered features currently under development, Collab Z addresses longstanding inefficiencies while scaling across
the nation’s extensive rental property network.

Business Model

As the company grows its property management portfolio
and enters new markets, these efforts serve as a bridge between the company’s current business model and its future business model,
which prioritizes scalability, efficiency, and community engagement through the Collab Platform.

Current Business Model

The current business model reflects Collab Z’s
foundational operations, encompassing Property Management Services, Development and Construction Management Businesses, procurement, Renovation
Management, and EB-5 Immigration Investor Services.

1.
Property Management Services

Collab Z operates as a full-service
property management provider, engaging the tenants to manage the day-to-day operations of rental properties. This includes leasing, vendor
coordination, and property maintenance.

Leasing Process:

●
Tenant-Led Property Showings: Tenants actively participate in the leasing process by hosting property tours for prospective tenants. Their participation is tracked on the Collab Platform, and they are compensated accordingly, promoting active involvement and accountability.

2

Vendor Coordination:

●
Tenant-Initiated Vendor Engagement: Tenants play a coordination role, similar to property managers, contacting professional service providers, scheduling service appointments, and ensuring that repairs are completed in a timely manner.

Property Maintenance Services:

●
Task Claiming & Execution: Tenants can claim and complete repair & maintenance tasks such as minor maintenance requests, cleaning of common areas, and handling of packages.

●
Automated Compensation: The platform ensures that tenants are promptly compensated for their services, with instant payments processed for completed tasks, fostering a culture of efficiency and fairness.

This innovative approach utilizes the
Collab Platform and integrates tenants as CPs, transforming traditional management structures into a decentralized, tenant-driven system
that enhances efficiency and cost-effectiveness.

Revenue is generated through a fixed
percentage of monthly lease income, fees for managing property-related expenses like repairs and maintenance, and commissions on new lease
agreements. Certain properties also feature a profit-sharing model, where Collab Z earns a share of the rental income above guaranteed
thresholds.

2.
Development and Construction Management

The Company oversees development and
construction projects, ensuring timely completion within budget. These services contribute to property value enhancement, with development
fees recognized monthly over the service period. Collab utilizes its extensive industry experience and resources to provide comprehensive
professional services to multifamily developers, particularly in markets where it has a well-established presence.

Since early 2022, Collab Z has been
engaged in the construction management of a new development at 1773 Oxford Street, Berkeley, California. This project is a 5-story, 24-unit
student housing property with 81 beds, with a total estimated development cost of $20.5 million. Construction commenced in October 2022
and was completed in May 2025. In this role, Collab Z provides multiple services:

●
Design Consulting: Collab advises on unit types, furniture layouts, public areas, building material selections, and amenities to ensure they align with leasing and operational strategies, utilizing insights from tenant community user studies.

●
Procurement Consulting: Collab assists with sourcing and importing building materials from international markets, such as China and Malaysia, achieving significant cost reductions averaging 45%.

●
Pre-Operating Consulting: Services include rental pricing recommendations, leasing preparations, pre-leasing marketing, and operational license applications, often leveraging Collab’s extensive community resources.

Further expanding its portfolio, Collab
Z began providing similar consulting services on January 1, 2025, for another significant project located at 2425 Durant Avenue, Berkeley,
California. Planned as a 20-story student housing building with 169 units and 513 beds, this project covers 145,920 square feet and is
currently in the entitlement process, with an anticipated completion date of August 2030.

3

Material Terms of Agreements and Related
Risks:

●
For both projects, Collab’s base fees are structured to be paid either monthly or upon completion of specific services.

●
There are provisions allowing Collab to terminate the agreements if fees remain unpaid for more than 30 days.

●
Performance-based bonuses are subject to the discretion of the developers and owners, posing a risk of non-full payment if the bonus exceeds initial calculations.

●
As a consultant during the development phase, Collab does not bear responsibility for financial performance, construction quality, or the completion schedule of the projects. Decision-making authority rests with each project’s respective developer and owner.

3.
Procurement Services

Collab Z facilitates the sourcing of
construction materials, particularly from international suppliers, streamlining procurement for property owners. Fees are recognized upon
the completion of the service.

4.
Renovation Management

Collab Z manages property acquisition,
renovation, and disposition projects, generating fees recognized throughout the project duration and upon specific milestones. This service
ensures properties meet market demands and achieve maximum value.

5.
EB-5 Immigration Investor Services

The Company identifies EB-5 investment
projects and assists investors with project selection, compliance documentation, and support during the application process. Revenue is
recognized upon submission of the EB-5 application package.

6.
Consulting Services

The Company provides consulting services
to third parties that are defined by service agreements. Consulting services may include terms whereby there are a set of deliverables
required for which revenue will be recognized at a point in time when the deliverables are satisfied, or may relate to services that are
performed periodically and recognized over time. Each contract is assessed for performance obligations. There is generally no right of
return or refund related to these services.

Related Party Relationships

A significant aspect of our current business model
is that a majority of our revenue, accounting for 65% in 2025, is derived from related parties. The nature of these relationships primarily
involves properties under common control and management, for which Collab Z provides property management, development, renovation and
procurement services to individual. Revenue from these services is recognized according to the progress and completion of specified tasks.
Transactions with these related parties are conducted under terms that are revisited periodically to align with market practices and ensure
compliance with regulatory standards. While these relationships contribute to our revenue streams, they are managed with careful consideration
to maintain transparency and independence in our operations. As Collab Z evolves, our focus on refining our community-based property management
services will continue alongside a review and potential adjustment of our involvement in transactions with related parties. See “Current
Relationships And Related Party Transactions” for a more detailed discussion.

Future Business Model

As Collab Z evolves, we will transition toward
a more focused and scalable operational model, emphasizing community-based property management as the core business, while scaling down
other activities such as development, renovation management, and EB-5 services. This pivot reflects the Company’s strategic emphasis
on long-term sustainability and market differentiation through its Collab Platform.

4

In the fiscal year 2025, our revenue streams were
diversely distributed across several business units. Property management, which is becoming our primary focus, contributed 44% to our
total revenue. Development and construction management accounted for 11%, procurement services constituted 4%, and consulting services
contributed 42% of our revenue.

In the fiscal year 2024, our revenue streams were
diversely distributed across several business units. Property management, which is becoming our primary focus, contributed 31% to our
total revenue. Development and construction management accounted for 5%, procurement services constituted 13%, renovation management made
up 14%, and EB-5 immigration investor services contributed 37% of our revenue.

Reflecting our strategic refocus, we plan to phase
out EB-5 Immigration Investor Services beginning in the next year. This decision aligns with our strategy to concentrate resources and expertise
on enhancing our core property management services, responding to changes in market demand and regulatory landscapes. While development,
renovation, and procurement services currently contribute to our diversified revenue streams, we plan to significantly scale down these
activities. Over the next two years, we expect their combined contributions to revenue will make up a less significant portion of revenue
as we focus on property management services.

We have also entered into five separate limited
liability company agreements (collectively, the “Joint Venture Agreements”) with five unaffiliated entities to form joint
venture companies in Nevada, wherein we hold 40% ownership stake in each joint venture company. Each joint venture was established to
pursue property management and related real estate activities in specific local markets using our community-based property management
platform. These entities operate independently and are owned jointly by us and our respective joint venture partners.

Under each Joint Venture Agreement, we contributed
our technology platform, branding rights, and management expertise, while our partners provided capital contributions, local operational
support, and access to regional property opportunities. The joint ventures reflect our strategic focus on scaling up by expanding our
property management footprint through local partnerships that leverage our Collab platform.

This pivot underscores our commitment to sustainability
and efficiency, leveraging our proprietary platform to enhance property management services. By concentrating on our core competencies,
we aim to strengthen our market position and ensure long-term growth and profitability. The outlined changes reflect a deliberate strategy
to optimize our business operations and focus on areas with the highest growth potential and alignment with our long-term strategic goals.
Detailed plans for this transition are subject to ongoing review by our management team to ensure alignment with evolving market conditions
and company objectives.

Recent Developments

Series B Private Placement

Pursuant to a Certificate of Designation filed
with the Secretary of State of Nevada on June 5, 2025, we are authorized to issue up to 1,250,000 shares of Series B Preferred Stock with
a stated value of $4.00 per share. As of the date of the annual report, we have sold an aggregate of 200,000 shares of Series B Preferred
Stock, consisting of:

●
75,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $300,000 pursuant to a securities purchase agreement dated May 27, 2025;

●
25,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $100,000 pursuant to a securities purchase agreement, dated June 24, 2025;

●
25,000 and 37,500 shares of Series B Preferred Stock to two accredited investors, for an aggregate purchase price of $100,000 and $150,000, respectively, pursuant to securities purchase agreements, dated July 7, 2025;

●
37,500 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $150,000 pursuant to a securities purchase agreement, dated July 9, 2025.

5

Joint Ventures

In March and April 2025, we entered into, the
Joint Venture Agreements with five unaffiliated entities to form joint venture companies in Nevada, wherein we hold 40% ownership stake
in each joint venture company. For four of the five joint venture agreements, the Company issued 10,000 shares of common stock for each
joint venture entity, which valued $20,000 under the price of $2.00 per share, as part of the capital funding for the joint venture. For
the remaining agreement, the Company issued 20,000 shares of common stock for the joint venture entity, which valued $40,000 under the
price of $2.00 per share of our common stock, as part of the capital funding for the joint venture. Each joint venture was established
to pursue property management and related real estate activities in specific local markets using our community-based property management
platform. These entities operate independently and are owned jointly by us and our respective joint venture partners.

Under each Joint Venture Agreement, we contributed
our technology platform, branding rights, and management expertise, while our partners provided capital contributions, local operational
support, and access to regional property opportunities. Each joint venture company is governed by its own operating agreement, which includes
customary provisions relating to management responsibilities, capital contributions, profit and loss allocations, and dissolution rights.

The joint ventures reflect our strategic focus
on scaling up by expanding our property management footprint through local partnerships that leverage our Collab platform.

To date, the joint ventures have had minimal operations.

Human Capital Management

As of the date of this annual report, we have
14 full-time team members, including employees and full-time contractors engaged through third-party service providers. We are committed
to maintaining an inclusive, diverse, and innovative workplace, recognized in the industry for our excellent work environment.

Facilities

Our principal executive offices are located at
2001 Addison St, Suite 300, Berkeley, CA 94704. Our website address is https://living.collabhome.io/.

Available Information

Our Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K and any amendments to such reports are filed with the SEC. We are subject to the informational
requirements of the Exchange Act and file or furnish reports, proxy statements, and other information with the SEC. Such reports and other
information filed by us with the SEC will be available free of charge on our website at www.lomondther.com when such reports are available
on the SEC’s website. The SEC maintains a website that contains reports, proxy and information statements, and other information
that issuers file electronically with the SEC at www.sec.gov.

The contents of the websites referred to above are not incorporated
into this filing. Further, our references to the URLs for these websites are intended to be inactive textual references only.