SEDAR Interim Financial Statements

BIRCHTREE INVESTMENTS LTD. CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2026 AND 2025 (EXPRESSED IN CANADIAN DOLLARS) (UNAUDITED) Birchtree Investments Ltd. Condensed Interim Statements of Financial Position (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 1 The accompanying notes are an integral part of these condensed interim financial statements Birchtree Investments Ltd. Condensed Interim Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 2 The accompanying notes are an integral part of these condensed interim financial statements Birchtree Investments Ltd. Condensed Interim Statements of Cash Flows (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 3 The accompanying notes are an integral part of these condensed interim financial statements Birchtree Investments Ltd. Condensed Interim Statements of Changes in Shareholders’ Equity (Expressed in Canadian Dollars) (Unaudited) _______________________________________________________________________________________________________________________________ 4 The accompanying notes are an integral part of these condensed interim financial statements Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 5 1. NATURE OF OPERATIONS AND GOING CONCERN Birchtree Investments Ltd. (previously Greenridge 4.0 Acquisitions Corp.) ("Birchtree" or the "Company") was incorporated under the Business Corporations Act (British Columbia) on February 2, 2021. The registered head office of the Company is 2900-550 Burrard Street, Vancouver, BC V6C 0A3, Canada. The Company is an investment company with the long-term goal of divesting its investment assets at a profit with a focus on (i) early stages of a target company’s development, (ii) technologies that are developed and validated but may be in the early stage of commercialization, or (iii) target companies that require strategic guidance and thus are undervalued. The Company filed a notice of alteration of its articles in order to change its name to “Birchtree Investments Ltd.” on June 23, 2021 in order to coincide with the voluntary dissolution of its subsidiary, Birchtree Investments Limited ("Limited"). Limited was incorporated under the Business Corporations Act (British Columbia) on January 29, 2021 and was voluntarily dissolved on June 9, 2021. On May 18, 2021, pursuant to a share exchange agreement Birchtree issued 54,100,000 common shares as consideration for acquisition of the 54,100,000 outstanding common shares in the capital of Limited. The acquisition was accounted for as a reverse takeover ("RTO") whereby Limited was identified as the acquirer for accounting purposes and the resulting condensed interim financial statements are presented as a continuance of Limited. The Company began trading on the Canadian Securities Exchange (“CSE”) under the trading symbol "BRCH" as of market open on March 1, 2023. These condensed interim financial statements have been prepared on a going conc --- ern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. For the six months ended February 28, 2026, the Company reported a net loss of $1,190,470 (six months ended February 28, 2025 - net loss of $2,993,131) and had a cash outflow from operating activities of $683,614 (six months ended February 28, 2025 - cash inflow of $131,003). The Company has a cash balance of $408,099 (August 31, 2025 - $7,695). The Company's ability to continue as a going concern is dependent upon its ability to develop and maintain profitable operations or to obtain additional financing. However, there is no assurance that the outcome of these matters will be successful and, as a result, there are material uncertainties that might cause significant doubt regarding the going concern assumption. These condensed interim financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying condensed interim financial statements. Such adjustments could be material. 2. BASIS OF PREPARATION Statement of compliance The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (“IASB”). These condensed interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements. The same accounting policies and methods of computation are followed in these condensed interim financial statements as compared with the most recent annual financial statements as at and for the year ended August 31, 2025. Any subsequent changes to IFRS that are given effect in the Company’s annual financial statements for the year ending August 31, 2025 could result in restatement of these condensed interim financial statements. These condensed interim financial statements were approved and authorized for issuance by the Board of Directors on April 24, 2026. Accounting standards issued and adopted The Company has evaluated new and amended standards issued by the IASB that are effective for annual reporting periods beginning on or after September 1, 2026, and has determined that they are not applicable to the Company's operations or do not have a material impact on its financial statements. Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 6 3. INVESTMENTS The Company’s investments are financial instruments and have been classified at fair value through profit and loss with gains and losses recorded in net income. Investment transactions are recorded on a trade date basis. Ehave, Inc. ("Ehave") As at August 31, 2025 and February 28, 2026, the Company had 1,743,861 common shares of Ehave. There were no transactions involving Ehave during the six months ended February 28, 2026. The investment in common shares is considered Level 1 in the fair value hierarchy. As a result of changes in the fair market value of the shares held --- in Ehave an unrealized loss of $3,127 (February 28, 2025 – unrealized gain of $9,732) has been recorded in the condensed interim statements of income (loss) and comprehensive income (loss) during the six months ended February 28, 2026. Boba Mint Holdings Ltd. ("Boba Mint") As at August 31, 2025 and February 28, 2026, the Company had 1,765,000 common shares of Boba Mint. There were no transactions involving Boba Mint during the six months ended February 28, 2026. The investment in these common shares is considered Level 1 in the fair value hierarchy. As a result of changes in the fair market value of Boba Mint an unrealized loss of $247,100 (February 28, 2025 – net unrealized and realized gain of $266,025) has been recorded in the condensed interim statements of income (loss) and comprehensive income (loss) during the six months ended February 28, 2026. The investment in the Boba Mint warrants is considered Level 2 in the fair value hierarchy. As there is no active market for these warrants, the Black-Scholes valuation model was used to calculate fair value at February 28, 2026 with the following assumptions: share price of $0.18 per common share, expected dividend yield of 0%, expected volatility of 364%, risk-free rate of 2.38%, exercise price $0.065 and expected life of 1.86 years. This calculated fair value of $23,611 yielded an unrealized loss of $84,053 which has been recorded in the condensed interim statements of income (loss) and comprehensive income (loss) during the six months ended February 28, 2026. American Aires Inc. ("American Aires") As at August 31, 2025, the Company held 6,024,615 common shares and 4,824,587 warrants of American Aires. During the six months ended February 28, 2026, the Company sold 4,245,000 common shares of American Aires for total proceeds of $224,020, realizing a loss of $249,399. The warrants held at the beginning of the period expired unexercised on February 16, 2026. Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 7 The investment in common shares is considered Level 1 in the fair value hierarchy. As a result of changes in the fair market value of the shares held in American Aires a combined unrealized and realized loss of $457,871 (February 28, 2025 – net realized and unrealized loss of $1,311,427) has been recorded in the condensed interim statements of income (loss) and comprehensive income (loss) during the six months ended February 28, 2026. Datametrex AI Limited ("Datametrex AI") As at August 31, 2025, the Company had 600,000 common shares of Firstpayment. During the six months ended February 28, 2026, the Company exchanged its investment in Firstpayment, a private company, in exchange for 537,123 common shares of Datametrex. Prior to this transaction, common shares of Firstpayment were classified as Level 3 in the fair value hierarchy due to the absence of observable market inputs. Datametrex is a publicly traded company, and its common shares are classified as Level 1 in the fair value hierarchy based on quoted market prices in an active market. The investment in Datametrex is subsequently measured at fair value through profit or loss. As a result of changes in the fair market value of the shares held in Datametrex an unrealized gain of $18,341 (February 28, 2025 – $nil, --- related to the private company Firstpayment) has been recorded in the condensed interim statements of income (loss) and comprehensive income (loss) during the six months ended February 28, 2026. Somerset Energy Partners ("Somerset") As at August 31, 2025 and February 28, 2026, the Company had 1,670,000 common shares of Somerset. There were no transactions involving Somerset during the six months ended February 28, 2026. The investment in these common shares is considered Level 3 in the fair value hierarchy as Somerset is a private company. As a result of changes in the fair market value in Somerset common shares an unrealized gain/loss of $nil (February 28, 2025 – $nil) has been recorded in the condensed interim statements of income (loss) and comprehensive income (loss) during the six months ended February 28, 2026. 13 Specialty Corp. (“13 Specialty”, formerly Valkyrie Specialty Corp.) As at August 31, 2025 and February 28, 2026, the Company had 795,926 common shares of 13 Specialty. There were no transactions involving 13 Specialty during the six months ended February 28, 2026. The investment in these common shares is considered Level 3 in the fair value hierarchy as 13 Specialty is a private company. As a result of changes in the fair market value in 13 Specialty common shares an unrealized gain/loss of $nil (February 28, 2025 – $nil) has been recorded in the condensed interim statements of income (loss) and comprehensive income (loss) during the six months ended February 28, 2026. 4. SHARE CAPITAL (a) Authorized share capital The Company is authorized to issue an unlimited number of common shares without par value. (b) Common shares issued Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 8 On October 31, 2025, the Company completed a non-brokered private placement, raising $860,000 through the issuance of 43,000,000 common shares at a price of CAD $0.02 per share. The net proceeds from the offering will be used for general corporate purposes, working capital, and potential new investments. On May 8, 2024, the Company granted 12,200,000 restricted stock units (“RSUs”) to its directors and officers, 50% of which vested immediately and the remaining 50% vested 9 months from the grant date. The share-based compensation of $177,917 was recorded in the statement of income (loss) and comprehensive income (loss) during the six months ended February 28, 2025. 5. STOCK OPTIONS The Company has adopted an incentive stock option plan. Options may be granted for a maximum term of ten years from the date of the grant. They are not transferable. Unless the Board determines otherwise, options shall be exercisable in whole or in part at any time during this period. Options expire within 90 days of termination of employment or holding office as director or officer of the Company and, in the case of death, expire within a maximum period of one year after such death, subject to the expiry date of the option. The following table reflects stock options outstanding as at February 28, 2026: 6. GAIN (LOSS) PER SHARE Basic income (loss) per share is computed using the weighted average number of common shares outstanding during the year. The treasury stock method is used for the calculation of diluted income per share, whereby all “in the money” --- stock options and share purchase warrants are assumed to have been exercised at the beginning of the period and the proceeds from their exercise are assumed to have been used to purchase common shares at the average market price during the period. When a loss is incurred during the period, basic and diluted loss per share are the same, as the inclusion of stock options and warrants is anti-dilutive. Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 9 7. FINANCIAL INSTRUMENTS AND OBJECTIVES AND POLICIES Risk Management In the normal course of business, the Company is exposed to a number of risks that can affect its operating performance. These risks, and the actions taken to manage them, are as follows: Fair Values The Company has designated its cash as FVTPL which are measured at fair value. Fair value of cash is determined based on transaction value and is categorized as a Level 1 measurement. - Level 1- includes quoted prices (unadjusted) in active markets for identical assets or liabilities. - Level 2 - includes inputs that are observable other than quoted prices included in Level 1. - Level 3 - includes inputs that are not based on observable market data. The following tables present the Company's financial instruments that have been measured at fair value as at February 28, 2026 and August 31, 2025: The valuation of Level 3 investments involves significant judgment and the use of unobservable inputs. The fair value for each investment was determined using techniques consistent with the principles outlined in IFRS 13, as described below: 13 Specialty The fair value of the Company’s investment in 13 Specialty remains unchanged from the last year-end at $1.35 per share as at February 28, 2026. It was determined based on the price from the most recent private placement completed shortly after year-end, which represents an orderly transaction between market participants under current market conditions. The placement included an arm’s-length investor subscribing at $1.35 per share, which provides a relevant observable input under IFRS 13. As no adverse developments or contradictory information were identified between the reporting date and the transaction date, management considers this price to represent the best estimate of fair value at February 28, 2026. No adjustments were deemed necessary, as the transaction occurred in close proximity to the reporting period and aligned with observable market evidence. Somerset The fair value was determined based on the most recent financing completed during the six months ended February 28, 2026, in which Somerset issued convertible debentures with bonus shares at an effective equity pricing of approximately $0.20 per common share. This transaction represents an orderly, arm’s-length capital raise and provides the most relevant observable input for valuation purposes under IFRS 13. As no contradictory information or significant changes in circumstances were identified between the reporting date and the transaction date, management considers the implied $0.20 per share pricing to be the best estimate of fair value at February 28, 2026. Fair value measurement remains subject to estimation uncertainty due to the early-stage nature of Somerset’s operations and the limited availability --- of market-based data. Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 10 Key Inputs and Sensitivity Analysis The valuations incorporate the following significant unobservable inputs: • 13 Specialty: Recent private placement price (no adjustments applied) • Somerset: Recent private placement price (no adjustments applied) Changes in these inputs, particularly the completion of private placements or significant business developments, could materially affect the fair value. While specific sensitivity analyses have not been provided due to the binary nature of key inputs (e.g., occurrence of transactions or business milestones), future fair value measurements will reflect any observable changes in these assumptions. Valuation Methodology and Compliance These valuations are consistent with IFRS 13 principles, incorporating the most reliable information available at the reporting date. The use of recent transactions (13 Specialty, Somerset) reflects fair value as defined by IFRS 13. Management regularly reviews valuations to ensure they remain reflective of market conditions and adjusts them as new information becomes available. Credit Risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. As at February 28, 2026, management believes that the credit risk with respect to cash and subscription receivable is minimal. Cash is held with reputable Canadian financial institutions, and receivables are from trusted institutions or individuals from which management believes the risk of loss to be minimal. Liquidity Risk Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due. The Company’s liquidity and operating results may be adversely affected if the Company's access to the capital market is hindered, whether as a result of a downturn in stock market conditions generally or matters specific to the Company. The Company generates cash flow primarily from its financing activities. As at February 28, 2026, the Company had cash of $408,099 to settle current liabilities of $66,880 (excluding deferred revenue). All of the Company's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms. The Company regularly evaluates its cash position to ensure preservation and security of capital as well as liquidity. Market Risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market risk factors. Price risk Price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. This risk is managed through a careful selection of investments and other financial instruments within the parameters of the investment strategies. Price risk typically arises from exposure to equity and commodity securities. If the prices on the respective exchanges for these securities increased or --- decreased by 10%, all other variables held constant the investment value could have increased or decreased by approximately $162,508 (August 31, 2025 - $269,736). Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 11 8. CAPITAL MANAGEMENT The Company’s objective when managing its capital is to ensure sufficient financial flexibility to achieve the ongoing business objectives including funding of future growth opportunities, and pursuit of accretive acquisitions and to maximize shareholder return through enhancing the share value. The Company monitors its capital structure and makes adjustments according to market conditions in an effort to meet its objectives given the current outlook of the business and industry in general. The Company may manage its capital structure by issuing new shares, repurchasing outstanding shares, adjusting capital spending, or disposing of assets. The capital structure is reviewed by management and the Board of Directors on an ongoing basis. The Company's ability to continue to carry out its planned activities is uncertain and dependent upon the continued financial support of its shareholders and securing additional financing. The Company considers its capital to be equity, which comprises share capital, contributed surplus and accumulated deficit, which as at February 28, 2026 totaled $2,000,706 (August 31, 2025 - $2,331,177). Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. 9. RELATED PARTY TRANSACTIONS Related parties include the Board of Directors, officers, close family members and enterprises that are controlled by these individuals as well as certain persons performing similar functions. During the six months ended February 28, 2026, the Company incurred $20,340 (February 28, 2025 - $20,340) with respect to all accounting, bookkeeping and reporting performed in-house by one of the directors of the Company. Amount payable at February 28, 2026 is $6,780 (August 31, 2025 - $33,900) and included in accounts payable and accrued liabilities. During the six months ended February 28, 2026, the Company incurred professional fees of $67,800 to the CEO (February 28, 2025 - $67,800). As at February 28, 2026, CEO was owed $22,600 (August 31, 2025 - $124,300), with respect to services provided, and this amount was included in accounts payable and accrued liabilities. The CEO also acts as a chief financial officer of one portfolio investment company - American Aires Inc. On February 16, 2024, the Company entered into a consulting agreement with American Aires. The consulting agreement is for a period of 3 years and the Company is to act as consultant on various matters such as commercial sales strategy, capital markets support, assisting with due diligence packages for strategic partners, advising on large commercial engagements and other business areas. American Aires paid $360,000 to the Company as part of the consulting agreement, which has been recorded on the statement of financial position as deferred revenue. The deferred revenue will be gradually reduced and brought into income as services are performed by the Company. During the six months ended February 28, 2026, the Company recorded $6 --- 0,000 (February 28, 2025 - $60,000) as consulting fee income and the remaining $115,000 is recorded as deferred revenue on the statement of financial position as at February 28, 2026. 10. SUBSEQUENT EVENTS On March 22, 2026, the Company entered into an arm’s length definitive share exchange agreement to acquire 100% of the issued and outstanding equity interests of Digital Motion Corporation. The aggregate consideration for the transaction is US$20,000,000, to be satisfied through the issuance of common shares of the Company at a deemed price of CAD$0.20 per share, subject to customary closing adjustments. Completion of the transaction remains subject to customary closing conditions, including, but not limited to, the receipt of all required regulatory, stock exchange, board, and shareholder approvals, as well as the Company meeting certain minimum working capital requirements. Accordingly, there can be no assurance that the transaction will be completed as currently contemplated, or at all. In January 2026, the Company advanced a refundable deposit of US$100,000 ($139,370 CAD) to Digital Motion Corporation in accordance with a non-binding term sheet dated December 30, 2025. Birchtree Investments Ltd. Notes to Condensed Interim Financial Statements For the Six Months Ended February 28, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) ________________________________________________________________________________________________ 12 11. COMPARATIVE INFORMATION Certain prior year comparative figures have been reclassified to conform with the current year presentation. Specifically, amounts previously presented as “Investor relations” have been reclassified to “Public company expenses” to better reflect the nature of these costs. In addition, a separate line item, “Investor relations consulting,” has been introduced in the current year to provide more detailed disclosure. These reclassifications had no impact on net loss, total expenses, or cash flows for the prior period.