SEDAR Interim Financial Statements

1 NEVIS BRANDS INC. Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) Index Page Notice of no Auditor review of Condensed Interim Consolidated Financial Statements 2 Condensed Interim Consolidated Financial Statements Condensed Interim Consolidated Statements of Financial Position 3 Condensed Interim Consolidated Statements of Loss and Comprehensive Loss 4 Condensed Interim Consolidated Statements in Shareholders' Equity 5 Condensed Interim Consolidated Statements of Cash Flows 6 Notes to the Condensed Interim Consolidated Financial Statements 7-16 2 NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS In accordance with National Instrument 51-102, released by the Canadian Securities Administrators, the Company discloses that its independent auditors have not reviewed the condensed interim consolidated financial statements for the three and nine months ended August 31, 2025 and 2024. The accompanying notes are an integral part of these condensed interim consolidated financial statements. 3 Nevis Brands Inc. Condensed Interim Consolidated Statements of Financial Position (Unaudited - Expressed in Canadian Dollars) Notes August 31, 2025 November 30, 2024 ASSETS $ $ Current Cash 34,562 129,544 Prepaid expenses and deposits 12,291 4,343 Receivables 279,178 155,509 Inventory 4 315,433 331,353 Total current assets 641,464 620,749 Equipment, net 5 14,906 22,377 Intangibles, net 6 1,186,475 1,395,860 Total assets 1,842,845 2,038,986 LIABILITIES Current liabilities Accounts payable and accrued liabilities 10 201,954 285,201 Short-term loans 10 214,109 112,253 Promissory note 7,11 249,367 175,125 Total current liabilities 665,430 572,579 Promissory note 7,11 - 240,923 Total liabilities 665,430 813,502 SHAREHOLDERS' EQUITY Share capital 8 15,094,443 15,094,443 Contributed surplus 8 430,391 411,571 Deficit (14,421,480) (14,384,492) Accumulated other comprehensive income 74,061 103,962 Total shareholders' equity 1,177,415 1,225,484 Total liabilities and shareholders' equity 1,842,845 2,038,986 Approved on behalf of the Board: “John Kueber” “John Bell” _________________________ _________________________ Director Director The accompanying notes are an integral part of these condensed interim consolidated financial statements. 4 Nevis Brands Inc. Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) Three Months Ended August 31, Nine Months Ended August 31, Notes 2025 2024 2025 2024 $ $ $ $ Revenue 13 478,808 474,584 1,313,908 1,291,875 Cost of goods sold (176,652) (135,433) (372,802) (418,497) Gross profit 302,156 339,151 941,106 873,378 Expenses Accounting and audit fees 29,935 19,218 140,336 65,573 Administrative and general office 52,680 39,077 142,312 128,811 Equipment depreciation 2,160 2,604 7,191 7,183 Intangible assets amortization 60,777 60,667 186,528 180,693 Bank charges and interest 3,313 2,316 8,343 7,846 Salaries and benefits 10 100,152 93,474 255,389 302,367 Foreign exchange loss (gain) 73 (232) (2,137) 2,927 Insurance - (601) - 2,648 Transfer agent, listing, and filing fees 6,324 4,995 20,021 18,019 Investor relations and marketing 53,647 45,942 116,248 169,005 Legal fees 2,941 16,051 6,724 35,263 Share-based payments 8, 10 1,511 8,886 18,820 19,936 Travel and e --- ntertainment 11,282 5,279 41,690 23,197 Total expenses (324,795) (297,676) (941,465) (963,468) Income (Loss) from operations (22,639) 41,475 (359) (90,090) Other income and expenses Bad debt recovery (expense) 62 - (5,453) - Interest expense 7, 11 (11,118) (13,602) (31,176) (42,053) Net income (loss) for the period (33,695) 27,873 (36,988) (132,143) Other comprehensive income Current translation adjustment (1,166) (19,990) (29,901) (11,977) Total income (loss) for the period (34,861) 7,883 (66,889) (144,120) Loss per share – basic and diluted (0.00) 0.00 (0.00) (0.00) Weighted average number of common shares outstanding – basic and diluted 39,662,727 38,390,327 39,662,727 38,231,236 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 5 Nevis Brands Inc. Condensed Interim Consolidated Statements of Shareholders’ Equity (Unaudited - Expressed in Canadian Dollars) Common Shares Number of Shares Amount Contributed Surplus Other Comprehensive Income Deficit Total Shareholders' Equity $ $ $ $ $ Balance, November 30, 2023 38,140,327 14,921,723 822,805 48,911 (14,417,087) 1,376,352 Shares issued for exercise of options 250,000 70,184 (45,184) - - 25,000 Share-based payments - - 19,936 - - 19,936 Fair value transfer on expiry of warrants - - (395,076) - 395,076 - Net loss for the period - - - (11,977) (132,143) (144,120) Balance, August 31, 2024 38,390,327 14,991,907 402,481 36,934 (14,154,154) 1,277,168 Shares issued for cash 1,272,400 114,516 - - - 114,516 Share issuance costs - (11,980) - - - (11,980) Share-based payments - - 9,090 - - 9,090 Net loss for the period - - - 67,028 (230,338) (163,310) Balance, November 30, 2024 39,662,727 15,094,443 411,571 103,962 (14,384,492) 1,225,484 Share-based payments - - 18,820 - - 18,820 Net loss for the period - - - (29,901) (36,988) (66,889) Balance, August 31, 2025 39,662,727 15,094,443 430,391 74,061 (14,421,480) 1,177,415 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 6 Nevis Brands Inc. Condensed Interim Consolidated Statements of Cash Flows For the Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 2025 2024 $ $ Cash provided by (used in): Operating activities: Net loss for the period (36,988) (132,143) Items not involving cash: Equipment depreciation 7,191 7,183 Intangible assets amortization 186,528 180,693 Share-based payments 18,820 19,936 Interest expense 18,428 33,430 Bad debt expense 5,453 - Changes in non-cash working capital: Prepaid expenses (7,948) 3,833 Receivables (129,122) (92,241) Sale (purchase) of inventory 15,920 (70,334) Accounts payable and accrued liabilities (83,247) (59,394) Net cash used in operating activities (4,965) (109,037) Investing activity: Purchase of equipment - (11,562) Net cash used in investing activities - (11,562) Financing activities: Proceeds on exercise of options - 25,000 Proceeds from amounts due to related parties 95,273 - Repayment of promissory note (178,526) (205,175) Net cash used in financing activities (83,253) (180,175) Net change in cash (88,218) (300,774) Effect of exchange rate changes on cash (6,764) (2,523) Cash, beginning of period 129,544 418,524 Cash, end of period 34,562 115,227 Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 7 1. NATURE OF OPERATIONS AN --- D GOING CONCERN Nevis Brands Inc. (the “Company” or “Nevis”) was incorporated on January 28, 2011 pursuant to the Business Corporations Act (British Columbia). On May 24, 2013, the Company acquired all of the issued and outstanding shares of bioMmune Advanced Technologies Inc. (“BAT”), a private company (incorporated on July 5, 2012) formed to commercially exploit a number of patents and patent applications that surround three technologies. On March 27, 2017, the Company incorporated a wholly owned subsidiary in Seattle, Washington, named Nevis Brands, Inc. USA (formerly Pascal Biosciences US, Inc.) (“Nevis (US)”). On June 30, 2023, the Company acquired from SoRSE the assets comprising THC Essentials for a total purchase price of $1,894,946 (USD$1,125,000). On June 12, 2023, the Company changed its name from Pascal Biosciences Inc. to Nevis Brands Inc. On July 6, 2023, the Company de-listed from the TSX Venture Exchange and listed on the Canadian Securities Exchange (“CSE” or “Exchange”) upon receiving approval under the trading symbol “NEVI”. On August 14, 2023, the Company became listed on the Frankfurt Stock Exchange under the trading symbol “8DZ”. On February 15, 2024, the Company became listed on the OTCQB under the trading symbol “NEVIF”. The Company’s head office is 1900 Airport Way S, Suite 201, Seattle, WA 98134. These condensed interim consolidated financial statements have been prepared under the assumption of a going concern, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at August 31, 2025, the Company has a working capital deficiency of $23,966 (November 30, 2024: working capital of $48,170), reported a net loss of $36,988 (2024: net loss of $160,016) and had an accumulated deficit of $14,421,480 (November 30, 2024: $14,384,482). The Company’s ability to maintain its existence is dependent upon the continuing support of its creditors and its success in obtaining new equity financing for its ongoing operations. Financing options available to the Company include equity financings and loans. These conditions indicate the existence of material uncertainties that may cast significant doubt as to the ability of the Company to meet its obligations as they come due, and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. Realization values of the Company’s assets may be substantially different from carrying values as shown in these condensed interim consolidated financial statements, and accordingly, should the Company be unable to continue as a going concern, the adjustments could be material. 2. STATEMENT OF COMPLIANCE, BASIS OF PRESENTATION (a) Statement of compliance These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), now known as IFRS Accounting Standards and International Accounting Standards, (“IAS”) as issued by the International Accounting Standards Board (“IASB”). These condensed interim consolidated financial statements were authorized for issue by the Board of Directors on October 22, 2025. (b) Basis of measurement These condensed interim consolidated financial statements have been prepared on a historical cost basis, except for financial instruments classified as fair value through profit or loss (“FVTPL”), which are stated at their fair values. In addition, these condensed interim consolid --- ated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 8 The preparation of financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment of complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are the same as those disclosed in Note 3 in the Company’s audited consolidated financial statements as at and for the year ended November 30, 2024. (c) Functional and presentation currency The functional currency of an entity is the currency of the primary economic environment in which the entity operates. The functional currency of the Company and its Canadian subsidiary is the Canadian dollar (“CAD”). The functional currency of Nevis (US) was the CAD; however, subsequent to the transaction with SoRSE, the functional currency of Nevis (US) was determined to be the United States dollar (“USD”). The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21 The Effects of Changes in Foreign Exchange Rates. Transactions in currencies other than CAD are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rate while non- monetary assets and liabilities in foreign currencies are translated at historical rates. Revenues and expenses are translated at the average exchange rates approximating those in effect during the reporting period. For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s USD operations are translated into CAD at the exchange rate at the reporting date. The income and expenses are translated using average rate. Foreign currency differences that arise on translation for consolidation purposes are recognized in other comprehensive income (loss). 3. MATERIAL ACCOUNTING POLICIES These condensed interim consolidated financial statements are unaudited and have been prepared in accordance with IFRS and in accordance with IAS 34, Interim Financial Reporting, as issued by the IASB and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). The accounting policies and methods of computation applied by the Company in these condensed interim consolidated financial statements are the same as those applied in the Company’s audited consolidated financial statements as at and for the year ended November 30, 2024. 4. INVENTORY August 31, 2025 November 30, 2024 $ $ Raw materials Ingredients 34,692 37,208 Packaging and supplies 157,563 187,056 Total raw materials 192,255 224,264 Finished goods 123,178 107,089 Total inventories 315,433 331,353 Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 9 5. EQUIPMENT Computers Furniture Other Equipment Total $ $ $ $ Cost: At November 30, 2023 3,155 1,988 21,185 26,328 Addi --- tions - - 11,562 11,562 At November 30, 2024 3,155 1,988 32,747 37,890 Additions - - - - At August 31, 2025 3,155 1,988 32,747 37,890 Amortization: At November 30, 2023 120 120 6,268 6,508 Additions 609 375 8,777 9,761 Net exchange differences (79) (48) (629) (756) At November 30, 2024 650 447 14,416 15,513 Additions 504 316 6,371 7,191 Net exchange differences 38 23 219 280 At August 31, 2025 1,192 786 21,006 22,984 Net book value: At November 30, 2024 2,505 1,541 18,331 22,377 At August 31, 2025 1,963 1,202 11,741 14,906 6. INTANGIBLE ASSETS The THC Essentials assets represent multiple formulas, and registered multiple trademarks for branded consumer beverages, which incorporate cannabis as a key functional ingredient (the “Products”). However, with the exception of Happy Apple™ Hemp Derived THC beverages, the Company does not manufacture or distribute the Products; the Company has negotiated license and manufacturing agreements with multiple business partners in different states within the USA (each a “Manufacturing Partner”). The Company provides the branding collateral, trademark licenses, and formulas to these Manufacturing Partners who are responsible for the actual production and distribution of the Products. In return for licensing the trademarks and formulas to the Manufacturing Partners, each of them pays a royalty or licensing fee to the Company. These licensing fees are typically structured as either a set dollar amount per unit produced, or a percentage of the net sales of the Products at wholesale prices. Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 10 Customer Relationship Trademarks Total $ $ $ Cost: At November 30, 2023 713,138 981,127 1,694,265 Net exchange differences 22,472 30,918 53,390 At November 30, 2024 735,610 1,012,045 1,747,655 Net exchange differences (14,071) (19,360) (33,431) At August 31, 2025 721,539 992,685 1,714,224 Amortization: At November 30, 2023 59,428 40,880 100,308 Additions 143,174 98,488 241,662 Net exchange differences 5,820 4,005 9,825 At November 30, 2024 208,422 143,373 351,795 Additions 110,509 76,019 186,528 Net exchange differences (6,264) (4,310) (10,574) At August 31, 2025 312,667 215,082 527,749 Net book value: At November 30, 2024 527,188 868,672 1,395,860 At August 31, 2025 408,872 777,603 1,186,475 The Company considered impairment, but no impairment was taken during the nine months ended August 31, 2025 and 2024. The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: 2025 2026 2027 2028 2029 Total $ $ $ $ $ $ Customer relationship 36,077 144,307 144,307 84,181 - 408,872 Trademarks 24,817 99,268 99,268 99,268 99,268 421,889 60,894 243,575 243,575 183,449 99,268 830,761 Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 11 7. PROMISSORY NOTE The Company entered into a secured promissory note with SoRSE of US$500,000, bearing interest at 7.5% per annum due on July 31, 2024. On April 22, 2024, the promissory note maturity date was extended from July 31, 2024 to December 31, 2024. On July 16, 2024, the promissory note maturity date was extended to August 31, 2025. On January 15, 2025, the promissory note maturity date was extended to January 31, 2026. Further, --- the Company agreed to make a single payment of US$100,000 by February 7, 2025 and pay the remainder of the promissory note principal and accrued interest by January 31, 2026. During the year ended November 30, 2024, $307,731 (USD$225,000) of principal on the promissory note was repaid. During the nine months ended August 31, 2025, a further $178,526 (USD$125,000) of principal on the promissory note was repaid. August 31, 2025 November 30, 2024 $ $ Opening balance 416,048 683,273 Principal repayments (178,526) (307,731) Interest accrued 11,845 40,506 Closing balance 249,367 416,048 Less: non-current portion - (240,923) 249,367 175,125 During the nine months ended August 31, 2025, the Company recognized interest expense of $11,845 (2024: $33,430). 8. SHARE CAPITAL (a) Authorized The authorized share capital of the Company consists of an unlimited number of common shares without par value. (b) Common shares Nine months ended August 31, 2025 There were no share based financing activities during the nine months ended August 31, 2025. Nine months ended August 31, 2024 On May 23, 2024, the Company issued 250,000 common shares pursuant to an option exercise. (c) Stock options During the year ended November 30, 2012, the Company adopted a stock option plan, which provides that the Board of Directors may, from time to time, in its discretion, and in accordance with the Exchange requirements, grant to directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed 10% of the issued and outstanding common shares and exercisable for ten years from the date of grant. During the year ended November 30, 2023, the Company adopted a new stock option plan that is identical to the former, except that “Exchange” refers to the CSE rather than the TSX Venture Exchange. Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 12 A summary of the Company’s outstanding stock options and changes is as follows: Weighted Average Quantity Exercise Price ($) Outstanding, November 30, 2023 2,320,000 0.11 Granted 450,000 0.12 Exercised (250,000) 0.10 Outstanding, November 30, 2024 2,520,000 0.11 Granted 300,000 0.05 Outstanding, August 31, 2025 2,820,000 0.11 Exercisable, August 31, 2025 2,720,000 0.11 On May 12, 2025, the Company granted 300,000 stock options to directors. The stock options are exercisable at a price of $0.05 per share, for a period of five years and vest immediately. The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of 2.84%, expected dividend rate of 0%, expected volatility of 90.66%, and forfeiture rate of 0%. The fair value of the options was calculated at $10,662. The share-based payment expense recognized during the nine months ended August 31, 2025 was $10,662 (2024: $nil). On July 16, 2024, the Company granted 200,000 stock options to a director of the Company. The stock options are exercisable at a price of $0.13 per share, for a period of five years and half will vest in six months and the remaining half will vest 18 months from the date of grant. The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following assumptions: risk-free in --- terest rate of 3.31%, expected dividend rate of 0%, expected volatility of 93.31%, and forfeiture rate of 0%. The fair value of the options was calculated at $18,035. The share-based payment expense recognized during the nine months ended August 31, 2025 was $nil (2024: $3,010). On March 1, 2024, the Company granted 250,000 stock options to the VP of Operations. The stock options are exercisable at a price of $0.12 per share, for a period of five years and will vest quarterly over one year. The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of 3.43%, expected dividend rate of 0%, expected volatility of 90.40%, and forfeiture rate of 0%. The fair value of the options was calculated at $21,415. The share-based payment expense recognized during the nine months ended August 31, 2025 was $nil (2024: $16,925). On July 6, 2023, the Company granted 2,240,000 stock options to directors. The stock options are exercisable at a price of $0.10 per share, for a period of ten years and vest immediately. The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of 3.42%, expected dividend rate of 0%, expected volatility of 87.05%, and forfeiture rate of 0%. The fair value of the options was calculated at $404,845. The share-based payment expense recognized during the nine months ended August 31, 2025 was $nil (2024: $nil). Option pricing models require the use of highly subjective estimates and assumptions. The expected volatility assumption is based on the historical and implied volatility of the Company’s common share price on the Exchange. The risk-free interest rate assumption is based on yield curves on Canadian government zero-coupon bonds with a remaining term equal to the stock options’ expected life. The Company uses historical data to estimate option exercise, forfeiture, and employee termination within the valuation model. Based on the best estimate, management Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 13 applied the estimated forfeiture rate of 0% in determining the expense recorded in the accompanying consolidated statements of loss and comprehensive loss. The options outstanding at August 31, 2025 are as follows: Expiry Date Outstanding Exercisable Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) April 20, 2026 80,000 80,000 0.40 0.64 March 1, 2029 250,000 250,000 0.12 3.50 July 16, 2029 200,000 100,000 0.13 3.88 May 12, 2030 300,000 300,000 0.05 4.70 July 6, 2033 1,990,000 1,990,000 0.10 7.85 2,820,000 2,720,000 0.11 6.64 (d) Share purchase warrants A summary of the Company’s outstanding share purchase warrants and changes is as follows: Quantity Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Balance, November 30, 2023 10,762,750 0.20 0.59 Expired (10,762,750) 0.20 0.00 Balance, August 31, 2025 and November 30, 2024 - - - 9. CAPITAL RISK MANAGEMENT The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the development of any identified business opportunities and to maintain a flexible capital structure for the benefit of its stakeholders. The Comp --- any includes shareholders’ equity, comprised of issued share capital, contributed surplus, and deficit in the definition of capital. The Company manages the capital structure and makes adjustments to it in light of changes in the economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, enter into joint venture arrangements, acquire or dispose of assets, or adjust the amount of cash. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to manage its capital to be able to sustain the future development of the Company’s business. The Company is not subject to externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the nine months ended August 31, 2025. Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 14 10. RELATED PARTY TRANSACTIONS Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include executive management and non-executive directors. The following is a summary of related party transactions that occurred during the three and nine months ended August 31, 2025 and 2024: Services provided by: Three Months Ended August 31, Nine Months Ended August 31, 2025 2024 2025 2024 $ $ $ $ Key management salaries/fees a) 74,396 59,738 173,952 198,408 Share-based payments 1,511 3,010 17,466 3,010 75,907 62,748 191,418 201,418 Related parties include: a) Key management salaries include amounts paid to the CEO and Chief Financial Officer (“CFO”). Included in accounts payable and accrued liabilities is $11,760 (November 30, 2024: $2,940) payable to directors and officers of the Company. The amounts in accounts payable and accrued liabilities are non- interest-bearing and due within 30 days. Additionally, there are amounts due from the Company to a director and a former director of the Company totaling $214,109(USD$150,423) (November 30, 2024: $112,253 (USD$75,808)). The amounts are unsecured, due on demand, and bear no interest. On February 18, 2025, the Company entered into an unsecured promissory note of USD$100,000 with the CEO, bearing interest at a rate of 10% per annum and maturing on February 15, 2026. During the nine months ended August 31, 2025, the Company recognized interest expense of $6,583 (2024: $nil). 11. FINANCIAL INSTRUMENTS (a) Fair value Financial instruments recognized at fair value on the consolidated statements of financial position must be classified in one of the following three fair value hierarchy levels: Level 1 – measurement based on quoted prices (unadjusted) observed in active markets for identical assets or liabilities; Level 2 – measurement based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability; or Level 3 – measurement based on inputs that are not observable (supported by little or no market activity) for the asset or liability. As at August 31, 2025 and November 30, 2024, the Company’s financial instruments are comprised of cash, receivables, accounts payable and accrued liabilities, amounts due to related parties and promissory note. The carrying amounts reported in the consolidated st --- atements of financial position for cash, receivables, accounts payable and accrued liabilities, amounts due to related Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 15 parties and promissory note, and approximate fair values due to the short-term maturities of these financial instruments. (b) Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge its obligation and cause the other party to incur a financial loss. The Company considers its exposure to credit risk to be low, as its cash is deposited with a large financial institution with a strong credit rating. (c) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due. At August 31, 2025, the Company had cash of $34,562 (November 30, 2024: $129,544) available to apply against short-term business requirements and current liabilities of $665,430 (November 30, 2024: $572,579) and non-current liabilities of $nil (November 30, 2024: $240,923). All of the liabilities presented as accounts payable and accrued liabilities are due within 90 days of August 31, 2025. The amounts due to related parties are due on demand. On April 22, 2024, the promissory note maturity date was extended from July 31, 2024 to December 31, 2024. On July 16, 2024, the promissory note maturity date was extended to August 31, 2025. On January 15, 2025, the promissory note maturity date was extended to January 31, 2026. During the year ended November 30, 2024, $307,731 (USD$225,000) of principal on the promissory note was repaid. During the nine months ended August 31, 2025, a further $178,526 (USD$125,000) of principal on the promissory note was repaid. (d) Currency risk The Company is exposed to currency risk to the extent expenditures incurred or funds received and balances maintained by the Company are denominated in currencies other than the CAD. The Company does not manage currency risks through hedging or other currency management tools. As at August 31, 2025 and 2024, the Company’s net exposure to foreign currency risk is as follows: USD 2025 2024 $ $ Cash 23,331 61,806 Accounts receivable 198,596 217,032 Accounts payable (92,679) (222,376) Short-term loan payable (150,423) (33,143) Promissory note (203,928) (390,340) Net exposure to foreign currency risk (225,103) (367,021) CAD equivalent (309,338) (495,148) Based on the above net foreign currency exposure, and assuming all other variables remain constant, a 10% weakening or strengthening of the CAD against the USD would have an immaterial effect on the Company’s net loss and comprehensive loss. Nevis Brands Inc. Notes to the Condensed Interim Consolidated Financial Statements For the Three and Nine Months Ended August 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 16 (e) Other price risk Other price risk is the risk that future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk. The Company is not exposed to significant other price risk. 12. SEGMENTED INFORMATION The Company has one operating and reportable segment, the development of cannabis products, in the --- United States. 13. ECONOMIC DEPENDENCE During the nine months ended August 31, 2025, the Company had sales of $1,313,908 in the United States. Major customers are defined as customers that each individually account for greater than 10% of the Company’s revenues. For the nine months ended August 31, 2025, the following revenue was recorded from major customers comprising 85% (2024 – 75%) of gross revenues: 2025 2024 $ $ Washington State 834,029 807,817 California State - 160,216 New Jersey 152,282 - Missouri 135,411 - 14. COMMITMENTS Leases The Company has a short-term operating lease agreement being month to month. During the nine months ended August 31, 2025, short-term lease expense of $41,462 was reported in the administrative and office general expenses within the consolidated statements of loss and comprehensive loss. The Company’s commitments for each of the five succeeding fiscal years are as follows: 2025 2026 2027 2028 2029 Total $ $ $ $ $ $ Promissory note payments - 421,252 - - - 421,252 - 421,252 - - - 421,252