OTC: PCSV

The
Company’s Board of Directors determined that it was in the best interests of the shareholders of the Company to register its common
stock pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and return to its
former status as a “fully-reporting” entity with the Commission given the Company’s improved financial condition and
management’s desire to improve the Company’s reporting quality to shareholders. Accordingly, the Company filed a Form 10
Registration Statement with the Commission on October 3, 2023, which became effective December 4, 2023 (the “Form 10 Registration
Statement”).

On
January 22, 2025, the Board of Directors appointed Sean P. Iddings to the Board of Directors, bringing the Board members to three (3)
Directors.

On
April 10, 2025, the Board of Directors announced that it had authorized a share repurchase program allowing the Company to repurchase
up to 10 million shares (pre-reverse split) of its common stock over the next three (3) years. The post-reverse split amount of the share
repurchase program is 833,334 shares of common stock.

On
September 15, 2025, the Company announced the appointment of Suzanne DeZego as its Chief Operating Officer.

On
March 23, 2026, the Company filed a Definitive 14C Information Statement with the SEC (the “Definitive 14C”), announcing
a Special Meeting of Shareholders to be held on April 20, 2026, to vote on a one (1) for 12 reverse stock split and reducing our 125,000,000
authorized shares of common stock to 12 million shares. The Board of Directors held a majority of our outstanding shares and indicated
their intent to vote in favor of the proposals in the Definitive 14C. The reverse split became effective May 4, 2026, before the filing
of this fiscal year 2026 10-K Annual Report (the “Annual Report”). Consequently, all share metrics contained in this Annual
Report will use the post-reverse split share numbers, unless otherwise notated.

The
share repurchase program announced on April 10, 2025, allows up to 833,334 shares to be repurchased. As of March 31, 2026, the Company
has repurchased 481,561 shares under this program.

3

Overview

The
Company specializes in creating experiential, hands-on, transitional kindergarten through 12th grade (TK-12) STEM (Science,
Technology, Engineering, and Math) education products and curriculum. “STEM” is often abbreviated as STEAM – Science,
Technology, Engineering, Arts, and Math – to include the arts. We use the terms STEM and STEAM interchangeably throughout this
Annual Report and make no significant distinction between the two (2) terms. Through our acquisition of Thrust-UAV, we have developed
educational drones and drone curriculum. Our customers include schools and school districts from the collegiate to transitional kindergarten
level, and providers of out-of-school programming, which include after-school programs, military education programs, home-schooling programs,
summer programs, and corporate outreach programs. We sell predominately in the United States and sell into nearly every state in the
nation. We have a few international customers, but revenue from customers outside of the United States is not material, and we do not
focus our sales efforts on international markets at this time.

Our
products facilitate STEM education by providing engaging activities that demonstrate STEM concepts and inspire further STEM studies,
with the goal of ultimately leading students to pursue STEM career pathways. Due to our exceptionally detailed curriculum, our products
are easy to teach and do not require a teaching degree or experience to administer.

PCS’
educational products are developed from both in-house efforts and contracted services. They are marketed through reseller channels, direct
sales efforts, partner networks, and web-based channels.

Products

PCS
has developed and sells a variety of STEM education products into the TK-12 market, which can be categorized as follows:

1.
Enrichment
Programs

These
camps are for the informal learning market and are designed to be highly engaging for students while easily administered by the instructor.
The Company offers approximately 36 different enrichment programs and typically develops at least two (2) new programs each year.
Some of the more popular programs include Drone Designers; Ready, Set, Drone!; Rockin Robots; Influencer Camp; Cubelets Bot Builder;
Oceanic Exploration; Cosmic Coders; and World of Wonders.

2.
Discover
Series Products

These
products are designed for the makerspace environment and include engaging STEM activities that motivate students to pursue educational
pathways toward STEM careers. The Discover Series includes Discover Engineering; Discover Robotics & Physics; Discover Robotics
& Programming; Discover STEM; and Discover Digital Video.

3.
BrickLAB
Products

These
products are designed for the grade school market and use the Company’s proprietary bricks (which are Lego compatible) and
curriculum to engage students to explore, imagine, and create within a STEM education framework. The Company offers a variety of
grade-specific BrickLAB products.

4.
Discover
Drones, Drone Pathways, Add-on Drone Packages, and Ala Carte Drone Items

These
products are designed around using drones as a platform for STEM education and career exploration. These titles include the Discover
Drones series of Products; Discover Drones Indoor Coding Bundle; Indoor Racing Add-On; Outdoor Practice Add-on; and all the
spare parts and ala carte drone items offered in the Company’s comprehensive drone packages.

4

5.
STEAMventures
BUILD Activity Book

These
series of activity books are designed for the TK-3 market and are ideal for a distance-learning environment. The series includes
12 different issues. Instructor guides and/or family engagement guides are included. The Company also provides the necessary bricks
for the builds in the activity books as a separate, but related product.

6.
Professional
Development Training

The
Company offers professional development trainings, for a fee, to educators who are implementing the Company’s products in their
classroom.

The
Company intends to continue developing STEM education products that address demand from large markets.

Distribution
Methods of Products

The
Company sells its products directly to customers and through resellers. The Company kits all of its products at its Meridian, Idaho,
facility and ships the products directly to customers. Resellers do not typically inventory the Company’s products, and the Company
“drop ships” its products directly to the resellers’ customers. Trainings and Professional Development sessions are
conducted either at the Company’s facilities or at the customer’s location, depending on the desires of the customer. Customers
can buy from the Company’s website, from a reseller’s website, or by presenting the Company with a valid purchase order.

Competition

The
STEM education market is not well defined and is very fragmented. Our products experience competition from multiple angles. Most schoolteachers
with exposure to STEM can create their own lesson plans, using their own materials, to emulate the educational benefits of using the
Company’s products, at a fraction of the cost. The value proposition of our products is less compelling in a budget-constrained
environment, as cost becomes an overriding factor in many such cases. Additionally, there are several sources of free and inexpensive
curriculum that teachers can use to help them deliver STEM educational concepts similar to those experienced by the users of our products.

In
addition to competition at the local level, many of our products face competition from similar products produced by multinational companies
that have significant advantages over us in terms of financial resources, human resources, brand loyalty, supply-chain costs, and global
reach. While many of these companies primarily target the toy industry, their sheer size and cost advantages allow them to easily breach
the education market with their products. In this regard, the Company competes directly with Lego, Robolink, Fischertechnik, K’Nex
(acquired by Basic Fun), and Vex IQ, among many others.

There
are numerous for-profit companies of various sizes that develop and sell STEM educational products. A good example is Teacher Created
Materials, a company headquartered in Huntington Beach, California. They are very similar to our Company and much larger.

We
also compete against non-profit organizations, such as Project Lead The Way, who have a mission to promote and implement STEM education.
The programs they provide can be free, subsidized, government-sponsored, rigorously developed, and/or heavily promoted, creating intense
competition for our products and services.

While
there may be several characteristics that differentiate our Company’s products from those of our competition, all of us are competing
for a finite market. There are several potential solutions to STEM education demand and, oftentimes, companies can achieve a first-mover
advantage by developing a relationship with a customer or distributor, and integrating their suite of products and services into the
supply chain before we can showcase our offerings.

We
believe that we have a competitive advantage in curriculum development. We employ STEM teachers who, through experience, understand the
environment that educators operate within and the unique challenges they face, and
we develop our curriculum with the educator in mind for an easy, successful, and consistent implementation. Many of our competitors’
products focus on the product or the student, with the educator left to figure out the details of implementation.

5

Manufacturing,
Supplies, and Quality Control

Our
Enrichment Programs contain several types of materials, kitted in a box. There is no manufacturing involved in the creation of our final
product in the Enrichment Program category. Nearly all materials used are non-proprietary and commercially available. The materials are
mostly consumer discretionary (paper, crayons, pencils, tape, yarn, etc.) and sourced from a variety of vendors, some of which are located
outside of the United States. Some of our Enrichment Programs contain proprietary products from other companies, commercially available,
and the Company maintains close relationships with these suppliers. The final creation of the product via kitting and packaging is done
at our warehouse facility in Meridian, Idaho. This includes the printing of the curriculum. All curriculum development oversight is performed
at our corporate facility, also in Meridian, Idaho, but separate from our warehouse facility.

We
have been working closely with our vendors located outside of the United States to determine the impact of any tariff on our transactions.
Most vendors pass a portion of the tariff amount onto their customers, including us. In some cases, we have negotiated to split the tariff
amount with the vendor. Tariffs are a relatively new development, and we are proactively assessing the impact of them on our costs.

Our
Discover series of products contains some proprietary products designed by our Company and manufactured abroad as well as non-proprietary,
commercially available products. Most of our Discover series of products are comprised of other companies’ final products, combined
with our curriculum. Our RubiQ education drone is a proprietary product of the Company and is the main component in Discover Drones.
The RubiQ education drone’s components are manufactured abroad and quality-controlled at our corporate facility. The final creation
of the product via kitting and packaging is done at our warehouse facility in Meridian, Idaho. This includes the printing of the curriculum.
All curriculum development oversight is performed at our corporate facility, also in Meridian, Idaho, but separate from our warehouse
facility.

Our
BrickLAB products contain proprietary plastic building bricks (that are Lego compatible) manufactured for us by a long-time vendor with
manufacturing facilities in South Korea. The final creation of the product via kitting and packaging is done at our warehouse facility
in Meridian, Idaho. This includes the printing of the curriculum; and all curriculum development oversight is also performed at our corporate
facility.

The
STEAMventures BUILD Activity Book was developed at our corporate facility. The final creation of the product via kitting and packaging
is done at our warehouse facility. This includes the printing of the curriculum; and all curriculum development oversight is also performed
at our corporate facility.

Sources
and Availability of Raw Materials and Names of Principal Suppliers

Raw
material procurement became more challenging in the immediate aftermath of the Covid-19 pandemic. Backlogs created availability problems
for a few items, while shipping congestion significantly delayed shipment of many items from time to time, and prices of nearly all items
increased materially.

Supply
chains recovered as the Covid-19 pandemic receded, but tariff activity by the U.S. again complicated supply chain management. Consequently,
we experienced moderate inflation in the materials we use in our final products.

The
recent closure of the Strait of Hormuz has again elevated inflationary expectations. While we have experienced only modest raw materials
cost increases, we expect that this could accelerate the longer the Strait remains closed.

With
few exceptions, we can generally source materials from multiple vendors, although the pricing from different vendors varies considerably.
Thus, supply problems that we experience generally do not impair our business from functioning. However, supply problems that cause us
to procure from higher-priced sources negatively affect our gross margins as we cannot adjust our prices as quickly as the prices of
our raw materials increase.

6

In
response to these challenging environments, we have raised prices on selected items every year to reset our margins back to desirable
levels after price increases of inputs. Additionally, we buy in bulk to achieve better pricing, and we have increased general inventory
levels. While we purchase from numerous vendors, below are our most used vendors by dollar volume:

Mida’s
Global

Robolink

Amazon

FPVelite
Electronics

Fischertechnik

Ernest
Packaging Solutions

Modular
Robotics

iCreate
to Educate

Menards

Dependence
on One or a Few Major Customers

During
Fiscal Year 2026, we had four (4) major customers who each accounted for at least 5% of sales and who, when aggregated, accounted for
22.8% of sales. The details of sales from our major customers are below:

Relationship

Customer Designation
FY 2026
FY 2025
FY 2024
Duration

Customer A
6.1%
3.3%
0.4%
7 years

Customer B
5.8%
8.7%
6.6%
14 years

Customer C
5.3%
4.6%
5.0%
11 years

Customer D
5.2%
7.9%
14.2%
15 years

Customers
B and C are resellers. The sales from reseller customers represent the aggregation of many purchase orders each of these customers placed
with us throughout the year. Our reseller customers place an order with us when their customer orders our product from them. This cycle
recurs numerous times throughout any given year.

We
work closely and frequently with our larger customers to ensure that they are receiving the value proposition and service from us they
require to continue doing business with us. We would categorize our relationship with these customers as excellent and do not believe
that there is a risk to any of these relationships over the next year.

We
believe that the risk of losing any one (1) of these customers is small, and we are actively, and successfully, soliciting larger customers
to diversify our current customer concentration. While we believe the risk of losing any one (1) of these major customers over the next
year is small, the loss of any two (2) of these customers, without similar replacement, would pose a significant risk to the financial
health of the Company.

Seasonality
of Business

Our
business is subjected to strong seasonal patterns during any given year, with our busiest period coinciding with summer learning and
the planning leading up to providing summer programs (January through July). The period between Thanksgiving and the New Year is our
slowest time, coinciding with the holiday season, as most schools observe the holidays with significant time off during this period.
The table below demonstrates this seasonality:

Quarterly Revenue

2023
2024
2025

3/31
2,521,470
2,262,772
1,292,819

6/30
2,605,281
3,159,923
2,423,309

9/30
3,767,326
2,267,338
1,529,503

12/31
459,087
701,147
754,889

7

Patents,
Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts, including Duration

We
do not have any designs or equipment which are patented, registered trademarked, or licensed.

Research
and Development Costs During the Last Two Fiscal Years

We
currently expense our costs under a general operating expense category instead of capitalizing any research and development expenses.

Employees

As
of March 31, 2026, we had 28 full-time employees and one (1) part-time employee.

Growth
Plan

Our
primary focus is to continue penetrating the U.S. market with our current product line as we feel the market is large relative to our
current market share and receptive to our value proposition of high-quality, easily implemented, hands-on STEM programs. We are actively
pursuing larger customers who can implement our programs at multiple sites, recognizing that some unique product development may be required
for these sales. We intend to develop new products and to enhance our current product line based on market feedback we receive, both
solicited and unsolicited, and based on developments within our market. We intend to further develop and enhance our educational drone
product line, and we are prepared to compete intensely in this product category, as we believe that 1), our curriculum offers us a competitive
advantage in this space, and 2), the educational drone market is nascent and is expected to continue to grow significantly.

In
response to new policies on education by the new administration, we are embarking on two (2) new initiatives that complement our current
strategies. The first initiative is to align our products more closely with state and standards and quality guidelines, especially where
such a conversion is easy. In the past, we have aligned our products closer to national standards and quality guidelines (than state
standards) for the following three (3) reasons:

1.
Many of the programs we serve receive their funding from federal grants;

2.
When state standards are relevant, they are loosely applied to out-of-school-time programs; and

3.
There is considerable overlap between federal standards and many of the state’s standards.

Given
the administration’s vocal desire to return education administration to the states, we believe that if it is successful in that
endeavor, then paying more attention to state-level priorities will enhance the competitiveness and attractiveness of our products. This
includes the Career and Technical Education (“CTE”) space, which is well-funded.

The
second initiative is to provide evidence that our products accomplish certain desired educational outcomes. Many of the opportunities
that we see that are sponsored by a state entity require evidence-based solutions. We anticipate that the evidence-based requirement
will grow over time, so we have commissioned studies to be conducted on our Drone Pathways and Bugs & Slugs. We expect to have the
results from these studies later this summer. In December of 2026, we plan to commission similar studies for our Content Creators and
AI Innovators products.

Regulation
and Environmental Compliance

Presently,
none of our products are in highly regulated industries.

Need
for any Governmental Approval of Principal Products or Services

No
products presently being manufactured or sold by us are subject to prior governmental approvals. Notwithstanding the forgoing, the educational
drone market is relatively new and undergoing significant regulatory evolution. We stay current on these regulatory developments and
help our customers understand and comply with new regulations.

8

Effect
of Existing or Probable Governmental Regulations on the Business

Our
Form 10 Registration Statement became effective 60 days after filing with the Commission (December 4, 2023, by reason of the 60th
day being a Saturday), at which point our securities became registered pursuant to Section 12(g) of the Exchange Act. Issuers with securities
registered under Section 12(g) are subject to numerous regulatory requirements under the Exchange Act. For example, we are subject to
the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act creates a strong and independent accounting oversight board to oversee the conduct
of auditors of public companies and strengthens auditor independence. It also requires steps to enhance the direct responsibility of
senior members of management for financial reporting and for the quality of financial disclosures made by public companies; establishes
clear statutory rules to limit, and to expose to public view, possible conflicts of interest affecting securities analysts; creates guidelines
for audit committee members appointment, compensation, and oversight of the work of public companies’ auditors; prohibits certain
insider trading during pension fund blackout periods; and establishes a federal crime of securities fraud, among other provisions.

Section
14(a) of the Exchange Act requires all companies with securities registered pursuant to Section 12(g) of the Exchange Act to comply with
the rules and regulations of the Commission regarding proxy solicitations, as outlined in Regulation 14A. Matters submitted to stockholders
of our Company at a special or annual meeting thereof or pursuant to a written consent will require that we provide our stockholders
with the information outlined in Schedules 14A or 14C of Regulation 14 of the SEC; preliminary copies of this information must be submitted
to the Commission at least 10 days prior to the date that definitive copies of this information are forwarded to our stockholders.

With
the effectiveness of our Form 10 Registration Statement, we also became required to file annual reports on Form 10-K and quarterly reports
on Form 10-Q with the Commission on a regular basis, and will be required to timely disclose certain material events (e.g., changes in
corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; changes
in executive officers and directors; and bankruptcy) in a Current Report on Form 8-K.

We
do not hold any intellectual property rights. While we use reasonable efforts to protect our trade and business secrets, we cannot assure
that our employees, consultants, contractors, or advisors will not, unintentionally or wilfully, disclose our trade secrets to competitors
or other third parties. In addition, courts outside the United States are sometimes less willing to protect trade secrets. Moreover,
our competitors may independently develop equivalent knowledge, methods, and know-how. If we are unable to defend our trade secrets from
others use, or if our competitors develop equivalent knowledge, it could have a material adverse effect on our business. Any infringement
of our proprietary rights could result in significant litigation costs, and any failure to adequately protect our proprietary rights
could result in our competitors offering similar products, potentially resulting in loss of a competitive advantage and decreased revenue.
Existing patent, copyright, trademark, and trade secret laws afford only limited protection. In addition, the laws of some foreign countries
do not protect our proprietary rights to the same extent as do the laws of the United States. Therefore, we may not be able to protect
our proprietary rights against unauthorized third-party use. Enforcing a claim that a third party illegally obtained and is using the
Company’s trade secrets could be expensive and time-consuming, and the outcome of such a claim is unpredictable. Litigation may
be necessary in the future to protect our trade secrets or to determine the validity and scope of the proprietary rights of others. This
litigation could result in substantial costs and diversion of resources and could materially adversely affect our future operating results.