SEDAR Interim Financial Statements

[
  {
    "companyName": "Martello Technologies Group Inc.",
    "reportingPeriodEnd": "2025-09-30",
    "reportStatus": "Unaudited",
    "auditorName": null,
    "auditorKeyMatters": [],
    "balanceSheet": {
      "cash": 1998575,
      "shortTermInvestment": 109607,
      "tradeAndOtherAccountsReceivable": 4202307,
      "investmentTaxCreditsAndGrantsReceivable": 275519,
      "prepaidExpenses": 1664177,
      "inventories": 38200,
      "totalCurrentAssets": 8288385,
      "intangibleAssets": 0,
      "equipmentAndLeaseholdImprovements": 45577,
      "rightOfUseAssets": 301209,
      "totalAssets": 8635171,
      "accountsPayableAndAccruedLiabilities": 1990836,
      "foreignExchangeForwardContractLiability": 0,
      "currentPortionOfDeferredRevenue": 4082948,
      "currentPortionOfLongTermDebt": 240000,
      "currentPortionOfLeaseObligation": 55311,
      "totalCurrentLiabilities": 6369095,
      "deferredRevenue": 2290174,
      "longTermDebt": 12339248,
      "leaseObligation": 310593,
      "totalLiabilities": 21309110,
      "shareCapital": 61597108,
      "contributedSurplus": 4095181,
      "warrants": 2319977,
      "accumulatedOtherComprehensiveIncome": -701468,
      "deficit": -79984737,
      "totalShareholdersDeficiency": -12673939,
      "cashPerShare": 0.0034,
      "workingCapitalPerShare": 0.0033
    },
    "incomeStatement": {
      "sales": 6087196,
      "costOfGoodsSold": 927059,
      "grossMargin": 5160137,
      "researchAndDevelopment": 2879449,
      "salesAndMarketing": 2531468,
      "generalAndAdministrative": 1874271,
      "depreciation": 57138,
      "amortization": 890872,
      "impairmentOfIntangibleAssets": 5907037,
      "totalExpenses": 14140235,
      "lossFromOperations": -8980098,
      "interestIncome": 1429,
      "interestExpense": -856580,
      "accretionOfLongTermDebt": -109352,
      "gainOnFedDevLoan": 0,
      "revaluationOfForwardContract": 54837,
      "foreignExchangeGain": 298772,
      "otherIncomeExpense": 6822,
      "lossBeforeIncomeTax": -9584170,
      "incomeTaxRecoveryExpense": -2292,
      "netLoss": -9586462,
      "cumulativeTranslationAdjustment": -34111,
      "pensionPlanSettlement": 0,
      "totalOtherComprehensiveLoss": -34111,
      "totalComprehensiveLoss": -9620573,
      "weightedAverageSharesOutstanding": 583707430,
      "netLossPerShareBasicAndDiluted": -0.02
    },
    "cashFlowStatement": {
      "netLossFromContinuingOperationsBeforeIncomeTax": -9584170,
      "depreciation": 57138,
      "amortizationOfIntangibleAssets": 890872,
      "amortizationOfDebtIssuanceCost": 13541,
      "impairmentOfIntangibleAssets": 5907037,
      "increaseInFairValueOfHedgeLiability": -54837,
      "accretionOfLongTermDebt": 109352,
      "gainOnIssuanceOfFedDevLoan": 0,
      "shareBasedCompensation": 47505,
      "deferredShareUnitsCompensation": 124794,
      "definedBenefitPlanExpense": 0,
      "leaseInterestExpense": 74492,
      "gainOnTerminationOfLease": 0,
      "accruedInterestExpense": 765280,
      "accruedInterestOnGuaranteedInvestmentContract": -1217,
      "unrealisedForeignExchangeGain": -479655,
      "netChangeInOperatingComponentsOfWorkingCapital": -2264973,
      "totalCashFlowsUsedInOperatingActivities": -4394841,
      "additionsToEquipmentAndLeaseholdImprovements": -6830,
      "totalCashFlowsUsedInInvestingActivities": -6830,
      "commonStockIssuanceCosts": -1000,
      "proceedsFromLongTermDebt": 0,
      "repaymentOfLongTermDebt": -90000,
      "repaymentOfLeaseObligations": -101986,
      "totalCashFlowsProvidedByUsedInFinancingActivities": -192986,
      "netChangeInCash": -4594657,
      "cashBeginningOfPeriod": 6577858,
      "effectsOfCurrencyTranslationOnCash": 15374,
      "cashEndOfPeriod": 1998575
    },
    "investmentsAndOtherAssets": [
      {
        "type": "Marketable Securities",
        "description": "Short-term investment",
        "ownershipPercentage": null,
        "value": 109607,
        "notes": "Carrying amount approximates fair value due to short-term nature."
      }
    ],
    "shareStructure": {
      "authorizedShares": null,
      "issuedShares": 583707430,
      "classesOfShares": ["Common shares"],
      "warrants": [],
      "options": [
        {
          "number": 20000,
          "exercisePrice": 0.135,
          "expiryDate": null
        },
        {
          "number": 500000,
          "exercisePrice": 0.06,
          "expiryDate": null
        },
        {
          "number": 1500000,
          "exercisePrice": 0.05,
          "expiryDate": null
        },
        {
          "number": 5935629,
          "exercisePrice": 0.05,
          "expiryDate": null
        },
        {
          "number": 156666,
          "exercisePrice": 0.05,
          "expiryDate": null
        },
        {
          "number": 5349980,
          "exercisePrice": 0.05,
          "expiryDate": null
        },
        {
          "number": 543330,
          "exercisePrice": 0.05,
          "expiryDate": null
        },
        {
          "number": 66666,
          "exercisePrice": 0.05,
          "expiryDate": null
        },
        {
          "number": 2319997,
          "exercisePrice": 0.05,
          "expiryDate": null
        }
      ],
      "rightsConvertibleInstruments": null
    },
    "managementCompensation": {
      "currency": "CAD",
      "periods": {
        "sixMonthsEndedSeptember302025": {
          "salariesWagesAndBonuses": 1148478,
          "otherEmployeeBenefits": 40816,
          "shareBasedCompensation": 168747,
          "total": 1358041
        },
        "sixMonthsEndedSeptember302024": {
          "salariesWagesAndBonuses": 1148551,
          "otherEmployeeBenefits": 31765,
          "shareBasedCompensation": 79736,
          "total": 1260051
        }
      },
      "namedIndividuals": [],
      "otherRelatedPartyTransactions": [
        {
          "counterparty": "Wesley Clover International",
          "description": "Rent paid",
          "amount": 49494,
          "period": "Six months ended September 30, 2025"
        },
        {
          "counterparty": "Wesley Clover International",
          "description": "Interest expense on subordinated loan",
          "amount": 765280,
          "period": "Six months ended September 30, 2025"
        }
      ]
    },
    "subsequentEvents": [
      {
        "eventDate": null,
        "description": "Workforce reduction plan approved, resulting in estimated termination cost of approximately $2,398,278 to be recognized in the next reporting period.",
        "impactValue": 2398278
      }
    ]
  }
]