SEDAR Interim Financial Statements

Unaudited Interim Condensed Consolidated Financial Statements D-BOX Technologies Inc. For the three and nine months ended December 31, 2025 Notice The Company’s independent auditor has not reviewed these interim condensed consolidated financial statements in accordance with standards established by CPA Canada for a review of interim condensed consolidated financial statements by an entity’s auditor. D-BOX Technologies Inc. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS As at [in thousands of Canadian dollars] December 31, 2025 March 31, 2025 Notes $ $ ASSETS 4 Current assets Cash and cash equivalents 16,183 7,812 Short-term deposits — 107 Accounts receivable 8,976 6,881 Inventories 3 8,103 5,609 Prepaid expenses and deposits 482 608 Current portion of finance leases receivable 233 61 33,977 21,078 Non-current assets Property and equipment 5,239 5,621 Intangible assets 1,014 1,349 Deferred tax asset 9 6,407 — Finance leases receivable 761 375 47,398 28,423 LIABILITIES AND EQUITY Current liabilities Accounts payable and accrued liabilities 6,674 5,459 Derivative financial instruments 70 484 Provisions 5 254 182 Deferred revenues 4,134 980 Current portion of lease liabilities 278 249 Current portion of long-term debt 6 181 301 11,591 7,655 Non-current liabilities Lease liabilities 3,409 3,581 Long-term debt 6 186 920 15,186 12,156 Equity Share capital 7.1 66,611 66,470 Share-based payments reserve 7.2 472 498 Foreign currency translation reserve (190) (138) Deficit (34,681) (50,563) 32,212 16,267 47,398 28,423 See accompanying notes. D-BOX Technologies Inc. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT AND COMPREHENSIVE INCOME For the three and nine month periods ended December 31 [in thousands of Canadian dollars, except share and per-share amounts] Three months Nine months 2025 2024 2025 2024 Notes $ $ $ $ Revenues System sales 10,708 10,136 31,384 25,391 Rights for use, rental and maintenance 3,083 3,163 11,553 8,787 13,791 13,299 42,937 34,178 Cost of goods sold 6,704 6,612 19,636 16,512 Gross profit 7,087 6,687 23,301 17,666 Other expenses Selling and marketing 1,465 1,810 4,314 5,353 Administration 5 1,541 1,574 5,665 5,078 Research and development 1,406 1,187 4,013 3,277 Foreign exchange loss 25 470 100 409 4,437 5,041 14,092 14,117 Net profit before financial expenses (income) and income taxes (recoveries) 2,650 1,646 9,209 3,549 Financial expenses (income) Financial expenses 8.2 82 128 295 430 Interest income (86) (24) (238) (40) (4) 104 57 390 Net profit before income taxes (recoveries) 2,654 1,542 9,152 3,159 Income taxes (recoveries) (6,407) 11 (6,387) 21 Net profit 9,061 1,531 15,539 3,138 Items that will be reclassified to profit or loss: Foreign currency translation gain (loss) (119) 67 (52) 17 Comprehensive income 8,942 1,598 15,487 3,155 Basic net profit per share 0.041 0.007 0.070 0.014 Diluted net profit per share 0.040 0.007 0.068 0.014 See accompanying notes. D-BOX Technologies Inc. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Nine month periods ended December 31 [in thousands of Canadian dollars] Notes Share capital Share-based payments reserve Foreign currency translation reserve Deficit Total $ $ $ $ $ Balance as at March 31, 2024 66,227 783 (210) (54,670) 12,130 Profit — — — 1,607 1,607 Foreign currency translation loss — — (50) — (50) Comprehensive income — — (50) 1,607 1,557 Share-based payments 7.2 — 57 — — 57 Cancellation and expiration of stock options 7 --- .2 — (284) — 284 — Balance as at December 31, 2024 66,462 463 (260) (52,779) 13,886 Balance as at March 31, 2025 66,470 498 (138) (50,563) 16,267 Profit — — — 15,539 15,539 Foreign currency translation loss — — (52) — (52) Comprehensive income — — (52) 15,539 15,487 Exercise of stock options 7.1 141 (61) — — 80 Share-based payments 7.2 — 378 — — 378 Cancellation and expiration of stock options 7.2 — (343) — 343 — Balance as at December 31, 2025 66,611 472 (190) (34,681) 32,212 See accompanying notes. D-BOX Technologies Inc. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine month periods ended December 31 [in thousands of Canadian dollars] 2025 2024 Notes $ $ OPERATING ACTIVITIES Net profit before income taxes (recoveries) 9,152 3,138 Items not affecting cash: Amortization of property and equipment 910 897 Amortization of intangible assets 412 416 Amortization of financing costs 8.2 — 10 Share-based payments 7.2 308 57 Change in fair value of derivative financial instruments (414) 574 Unrealized foreign exchange (loss) (60) (157) Interest income on lease receivable (33) (53) Interest expense on lease liabilities 8.2 181 185 Accretion of interest expense on long-term debt 7 14 Cash flows provided by operations before changes in working capital items 10,463 5,081 Changes in working capital items: Short-term deposits 107 103 Accounts receivable (2,569) (1,491) Inventories (2,494) 1,403 Prepaid expenses and deposits 126 31 Accounts payable and accrued liabilities 1,236 78 Provisions 72 107 Deferred revenues 3,154 (24) (368) 207 Cash flows provided by operating activities 10,095 5,288 INVESTING ACTIVITIES Finance lease receivables payments 63 41 Additions to property and equipment (582) (383) Additions to intangible assets (77) (287) Cash flows used in investing activities (596) (629) FINANCING ACTIVITIES Exercise of stock options 7.1 80 142 Repayment of long-term debt (861) (1,190) Payment of lease liabilities (373) (208) Cash flows used in financing activities (1,154) (1,256) Effect of exchange rate fluctuations on cash and cash equivalents 26 14 Net change in cash and cash equivalents 8,371 3,417 Cash and cash equivalents, beginning of period 7,812 2,916 Cash and cash equivalents, end of period 16,183 6,333 Cash and cash equivalents consist of: Cash 16,183 6,333 Interest and income taxes included in operating activities: Interest 39 134 Income taxes 20 21 See accompanying notes. 1 DESCRIPTION OF BUSINESS D-BOX Technologies Inc. [“D-BOX” or the “Company”], incorporated under the Canada Business Corporations Act, is domiciled at 2172 de la Province Street, Longueuil, Québec, Canada. D-BOX designs, manufactures and commercializes haptic motion systems intended for theatrical entertainment, sim racing and simulation and training customers. This patented technology uses motion effects specifically programmed for each visual content, which are sent to a motion system integrated into either a platform, a seat or any other product. The resulting motion is synchronized with the on-screen action, thus creating a realistic immersive experience. The Company evaluates its operating results and allocates resources based on its single operating segment which is the design, manufacture, and sale of motion systems. The unaudited interim condensed consolidated financial statements were approved by the Company’s Board of Directors on February 10, 2026. 2 BASIS OF PRESENTATION The interim condensed consolidated financial statements have b --- een prepared in accordance with International Accounting Standards 34 [“IAS 34”], Interim Financial Reporting. They are interim condensed consolidated financial statements because they do not include all disclosures required under International Financial Reporting Standards [“IFRS”] for annual consolidated financial statements. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the March 31, 2025 annual consolidated financial statements which include the same accounting policies and methods of computation used in the preparation of these financial statements. D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 1 3 INVENTORIES December 31, 2025 March 31, 2025 $ $ Parts and components 5,576 3,890 Finished goods 2,527 1,719 8,103 5,609 4 CREDIT FACILITY On August 26, 2025, the Company signed an amended agreement with the National Bank of Canada ["NBC"] related to the availability of a line of credit amounting to $8,000 for the ongoing operations and working capital of the Company. The balance outstanding as at December 31, 2025 was $nil [$nil as at March 31, 2025]. This line of credit is renewable annually and bears interest at prime rate [4.45% as at December 31, 2025 and 4.95% as at March 31, 2025] plus 1.00% [2.50% as at March 31, 2025]. The line of credit is secured by first- ranking hypothec and security interests on all assets of the Company and its U.S. subsidiary. As at December 31, 2025, the Company was in compliance with the financial ratios required under the facility. 5 PROVISIONS Warranty claims Restructuring Total $ $ $ At April 1, 2025 182 — 182 Charged to profit or loss 257 1,207 1,464 Utilised in period (185) (1,207) (1,392) Due within one year or less at December 31, 2025 254 — 254 D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 2 Warranty claims A provision is recognised for expected warranty claims on products sold during the year, based on past experience of the level of repairs and returns. It is expected that these costs will be incurred in the next financial year. Assumptions used to calculate the provision for warranties were based on current sales levels and current information available about returns and repairs on the warranty period for all products sold. The corresponding expense is recorded in cost of goods sold. Restructuring During the nine month period ended December 31, 2025, the Company announced a change in Chief Executive Officer and a change in Chief Financial Officer. The resulting termination costs of the outgoing Chief Executive Officer and Chief Financial Officer was recorded in the following: $ Administration 1,207 6 LONG-TERM DEBT Loan with the NBC amounting to $1,000 for ongoing operations. During the period, the Company reimbursed this loan in its entirety. The loan bore interest at the fixed rate of 4% payable monthly, and principal repayable in monthly installments of $9. The loan was secured by a first-ranking hypothec and security interests on all assets of the Company and its U.S. subsidiary and was guaranteed by BDC. — 722 Loan with Canada Economic Development amounting to $846 for ongoing operations and wor --- king capital of the Company, repayable in monthly capital installments of $16 until maturity in December 2027. The loan does not bear interest [effective interest rate of 4%] and is not secured. At inception of this loan, the discounting was recognized as government assistance and recorded as a reduction of administration expense. 367 499 367 1,221 December 31, 2025 March 31, 2025 $ $ D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 3 Less: Current portion of long-term debt 181 301 186 920 December 31, 2025 March 31, 2025 $ $ Debt payments for the next years are as follows: $ 2026 190 2027 190 380 Less: discounting 13 367 For the three and nine month periods ended December 31, 2025, the interest expense on long-term debt charged to net profit amounted to $3 and $31, respectively, including an amount of $7 accounted for as an accretion of interest expense [$49 and $128, including an amount of $14 accounted for as an accretion expense for the three and nine month periods ended December 31, 2024, respectively]. D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 4 7 EQUITY 7.1 Share-capital 7.1.1 Authorized Unlimited number of Class A common shares without par value, voting and participating. Class B preferred shares, issuable in series, ranking senior to Class A common shares. The directors are entitled to determine the number of shares per series and their characteristics [rights, privileges and restrictions]. 7.1.2 Issued Changes in Class A common shares of the Company for the nine month periods ended December 31 are shown in the following table: 2025 2024 # $ # $ Balance at beginning of period 221,939,573 66,470 220,226,573 66,227 Exercise of stock options 792,001 141 1,650,000 235 Balance at end of period 222,731,574 66,611 221,876,573 66,462 For the three and nine month periods ended December 31, 2025, the Company issued 222,001 and 792,001 common shares pursuant to the exercise of stock options for gross cash proceeds of $25 and $80, respectively. The fair value of $18 and $61 was transferred from the share-based payments reserve to share capital, for the respective periods. D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 5 7.2 Share-based payments Changes in the Company's stock options for the nine month periods ended December 31 are summarized in the following table: 2025 2024 Number Weighted average exercise price Number Weighted average exercise price # $ # $ Balance as at March 31 8,054,500 0.15 9,067,500 0.12 Granted 10,300,000 0.50 600,000 0.10 Exercised (792,001) 0.10 (1,650,000) 0.09 Cancelled and expired (4,400,000) 0.16 (2,300,000) 0.10 Balance as at December 31 13,162,499 0.42 5,717,500 0.13 Options exercisable at end of period 937,501 0.13 3,752,500 0.15 The fair value of the options granted during the nine month period ended December 31, 2025 was estimated at the date of grant using the Black-Scholes option pricing model based on the following assumptions: 2.97% weighted average risk-free interest rate; no dividends; 93.85% weigh --- ted average volatility factor of the expected market price of the Company’s shares; $0.50 weighted average share price; and a 5.68-year expected weighted average option life. The expected volatility reflects the assumption that historical volatility over a term similar to the option term is indicative of future trends, which might not be the case. The weighted average forfeiture rate used was 11.44%. The weighted average of the estimated fair value at the grant date of the options awarded was $0.41 per option, amortized through net profit over the vesting periods of the options. For the three and nine month periods ended December 31, 2025, the share-based payment expense charged to net profit amounted to $191 and $378, respectively [$19 and $57 for the three and nine month periods ended December 31, 2024, respectively] with a corresponding amount recognized under the share-based payments reserve. For the three and nine month periods ended December 31, 2025, the cancellation and expiry of options resulted in a reclassification from the share-based payment reserve to deficit of $2 and $343, respectively [$195 and $284 for the three and nine month periods ended December 31, 2024, respectively]. D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 6 8 SUPPLEMENTARY INFORMATION ON THE UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT AND COMPREHENSIVE INCOME 8.1 Revenues Revenues are disaggregated by customer grouping as follows for the three and nine month periods ended December 31: Three months Nine months 2025 2024 2025 2024 Customer grouping $ $ $ $ Theatrical 8,921 7,994 27,900 18,157 Simulation and training 1,529 1,956 5,489 6,197 Sim racing 2,668 2,629 7,581 7,339 Other 673 720 1,967 2,485 Total revenues 13,791 13,299 42,937 34,178 D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 7 8.2 Financial expenses The key components of financial expenses are detailed as follows for the three and nine month periods ended December 31: Three months Nine months 2025 2024 2025 2024 $ $ $ $ Interest expense on long-term debt 3 49 31 128 Interest expense on credit facility 5 5 15 20 Interest expense on lease liabilities 60 62 183 187 Amortization of financing costs — — — 10 Other interest and bank charges 14 12 66 85 82 128 295 430 8.3 Government assistance For the three and nine month periods ended December 31, 2025, the Company recognized government assistance from various governmental entities. Government assistance received has been recorded as a reduction of the related expenses as follows: Three months Nine months 2025 2024 2025 2024 $ $ $ $ Research and development 70 57 249 363 D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 8 9 INCOME TAXES 9.1 Deferred income taxes The key components of the Company’s deferred income tax asset and liability are as follows: December 31, 2025 March 31, 2025 $ $ Asset Liability Asset Liability Recognised in profit and loss Net operating loss carry-forwards 7,978 — 11,068 — Research and development expenditur --- es 2,987 — 3,129 — Carrying amounts of property and equipment below tax bases 336 — 336 — Share issue costs and other differences 176 — 176 — Derivative financial instruments 128 — 128 — Recognised in equity Share issuance costs 271 — 271 — Total deferred tax 11,876 — 15,108 — Unrecognized deferred income tax assets (5,469) — (15,108) — 6,407 — — — For the three and nine month periods ended December 31, 2025, the Company recorded a deferred tax benefit relating to the recognition of tax losses and credits. The deferred tax asset of $6,407 has been recognised in net profit as a recovery of income taxes. D-BOX Technologies Inc. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 [Amounts are in thousands of Canadian dollars, except share, option, per-share and per-option amounts] 9