SEDAR Interim Financial Statements

CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (EXPRESSED IN CANADIAN DOLLARS) Notice to Reader The accompanying unaudited condensed interim financial statements of Pool Safe Inc. (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed interim financial statements have not been reviewed by the Company's auditors. POOL SAFE INC. CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (EXPRESSED IN CANADIAN DOLLARS - UNAUDITED) INDEX PAGE Consolidated Interim Condensed Statements of Financial Position 1 Consolidated Interim Condensed Statements of Operations and Comprehensive Loss 2 Consolidated Interim Condensed Statements of Changes in Equity 3 Consolidated Interim Condensed Statements of Cash Flows 4 Notes to the Consolidated Interim Condensed Financial Statements 5 1 Pool Safe Inc. Consolidated Condensed Interim Statements of Financial Position (Expressed in Canadian Dollars - Unaudited) AS AT Note September 30, 2025 December 31, 2024 ASSETS Current Cash and cash equivalents $ 349,454 $ 156,031 Receivables 5 266,770 67,105 Prepaids 9,708 2,237 Inventory 6 392,671 297,265 Total current assets 1,018,603 522,638 Equipment 7 158,170 180,260 Revenue share assets 8 864,050 873,865 TOTAL ASSETS $ 2,040,823 $ 1,576,763 LIABILITIES AND EQUITY Current Trade payables and other liabilities 9 &14 $ 180,518 $ 194,551 Current portion of lease liability 10 28,005 75,337 Current portion of loans 11 1,987,611 2,426,056 Total current liabilities 2,196,134 2,695,944 Lease liability 10 - 27,692 Long term portion of loans payable 11 - - Total liabilities 2,196,134 2,723,636 Going concern 2(a) Shareholders' Equity Share capital 13 6,750,040 5,355,555 Warrants 141,338 330,392 Reserves 541,570 541,570 Accumulated deficit (7,588,259) (7,374,390) Total equity (155,311) (1,146,873) TOTAL LIABILITIES AND EQUITY $ 2,040,823 $ 1,576,763 These consolidated condensed interim financial statements are approved on behalf of the Board of Directors: (Signed) "David Berger" Director (Signed) "Steven Glaser" Director The accompanying notes are an integral part of these consolidated condensed interim financial statements. 2 The accompanying notes are an integral part of these consolidated condensed interim financial statements. Pool Safe Inc. Consolidated Condensed Interim Statements of Operations and Comprehensive Loss (Expressed in Canadian Dollars - Unaudited) Three Months Ended Sept. 30, Nine Months Ended Sept. 30, 2025 $ 2024 $ 2025 $ 2024 $ Revenue 840,669 764,074 1,404,573 1,366,156 Cost of Sales 99,621 266,489 510,324 624,181 Gross Profit 741,048 497,585 894,249 741,975 Expenses Selling, general and administrative 325,304 183,680 603,436 462,598 Stock-based compensation - 8,387 - 62,058 Professional fees 39,040 24,672 93,664 97,209 Regulatory 2,491 1,658 24,228 11,149 Advertising and promotion 23,342 17,032 58,451 286 Depreciation and amortization 3,056 4,147 9,194 25,149 Foreign exchange loss (gain) (1,521) (796) 14,314 351 Gain on repayment of CEBA loan - - - (20,000) Interest and accretion expense 100,396 120,416 308,831 349,756 492,108 359,196 1,108,118 1,013,556 Net gain (loss) and comprehensive gain (loss) 248,940 138,389 (213,869) (271,581) Weighted average shares outstanding, basic and diluted 134,988,898 90,029,201 125,139,778 89,996,234 Basic and diluted gain (loss) per --- share (0.00) 0.00 (0.00) (0.00) 3 Pool Safe Inc. Consolidated Statements of Changes in Shareholders' Equity (Expressed in Canadian Dollars) Number of shares Share Capital Warrants Share- based payments reserve Accumulated Deficit Total Balance at December 31, 2023 89,979,750 4,055,837 426,724 486,126 (6,536,303) (1,567,616) Shares issued 250,000 7,500 - - - 7,500 Stock-based compensation - - - 54,558 - 54,558 Net loss - - - - (271,581) (271,581) Balance at September 30, 2024 90,229,750 4,063,337 426,724 538,911 (6,807,884) (1,777,139) Warrants exercised 23,345,000 1,292,218 (124,968) - - 1,167,250 Warrants extended - - 28,636 - - 28,636 Stock-based compensation - - - 2,659 - 2,659 Net loss - - - - (566,506) (566,506) Balance at December 31, 2024 113,574,750 5,355,555 330,392 541,570 (7,374,390) (1,146,873) Warrants exercised 23,512,500 1,320,839 (145,214) - - 1,175,625 Warrants expired - 73,646 (73,646) - - - Warrants granted, net - - 29,806 - - 29,806 Net loss - - - - (213,869) (213,869) Balance at September 30, 2025 137,087,250 $ 6,750,040 $ 141,338 $ 541,570 $ (7,588,259) $ (155,311) The accompanying notes are an integral part of these consolidated condensed interim financial statements. 4 Pool Safe Inc. Consolidated Condensed Interim Statement of Cash Flows (Expressed in Canadian Dollars - Unaudited) Nine Months Ended September 30, 2025 2024 Operating activities Net loss $ (213,869) $ (271,581) Items not affectingcash: Disposal of revenue share assets 18,371 56,505 Stock-based compensation - 62,058 Accretion of convertible debentures and warrants 124,030 93,408 Gain on repayment of CEBA loan - (20,000) Right of use asset amortization 18,373 38,385 Depreciation 250,920 211,349 197,825 170,124 Net changes in non-cash working capital: Decrease (increase) in receivables (207,136) (311,765) Decrease (increase) in prepaids - - Decrease (increase) in inventory (95,406) 296,944 Increase (decrease) in trade payables and other liabilities (14,033) (101,155) Cash flows used in operating activities (118,750) 54,148 Investing activities Equipment (6,559) - Revenue share assets (249,200) (641,591) Cash flows used ininvesting activities (255,759) (641,591) Financing activities Repayment of revolving line of credit (225,150) (212,165) Repayment of loans (775,000) - Repayment of CEBA loan - (40,000) Repayment of ROU liability (75,024) (21,903) Proceeds from loans - - Proceeds from warrant exercise 997,500 - Proceeds from promissory note (300,000) - Proceeds on revolving line of credit 742,491 797,575 Cash flows provided by (used in) financing activities 567,932 523,507 Net change in cash 193,423 (63,936) Cash - beginning of year 156,031 306,441 Cash – end of period $ 349,454 $ 242,505 Non-cash investing and financing activities: Bonus Warrants issued with long term debt $ - $ - Cash paid for: Interest $ 180,801 $ 256,348 The accompanying notes are an integral part of these consolidated condensed interim financial statements. Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 5 1. Nature of business Pool Safe Inc. ("Pool Safe" or the "Company") was incorporated under the Business Corporations Act (Ontario) on October 27, 2011. The Company manufactures and sells a product known as the “LounGenie”, which functions as a multi-purpose safe, contains a solar-powered charger for USB compatible devices including phones, cameras and tablets as --- well as a server call-button and a beverage cooler and holders. Pool Safe's head office located at 906 Magnetic Drive, Toronto Ontario, M3J 2C4. 2. Basis of presentation (a) Going concern These consolidated financial statements have been prepared with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation. The Company's ability to continue in the normal course of operations is dependent on its ability to raise equity or debt financing or through the sale of its products at a profit. As of September 30, 2025, the Company has accumulated deficit of $7,588,259 (December 31, 2024 - $7,374,390). In addition, the Company had a working capital deficit in the amount of $1,177,531 at September 30, 2025 (December 31, 2024 - $2,173,306). There are no assurances that the Company will be successful in achieving these goals. These circumstances cast significant doubt on the Company’s ability to continue as a going concern and ultimately on the appropriateness of the use of the accounting principles applicable to a going concern. The consolidated financial statements do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations. These adjustments could be material. (b) Statement of compliance The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee ("IFRIC"). These consolidated interim condensed 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 required by IFRS as issued by the IASB. The same accounting policies and methods of computation are followed in these consolidated interim condensed financial statements as compared with the most recent annual consolidated financial statements as at and for the period ended December 31, 2024. Any subsequent changes to IFRS that are given effect in the Company’s annual financial statements for the year ending December 31, 2025 could result in restatement of these consolidated interim condensed financial statements. The policies applied in these unaudited consolidated interim condensed financial statements are based on IFRS issued and outstanding as of November 25, 2025, the date the Board of Directors approved the statements. (c) Basis of consolidation These consolidated financial statements include the accounts of the Company as well as its 100% owned subsidiary 1974134 Ontario Inc. (d) Basis of measurement Apart from certain assets and liabilities measured at fair value as required under certain IFRS's, the consolidated financial statements have been presented and prepared on the basis of historical cost. (e) Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, which is the functional currency of the Company. (f) Estimates and critical judgments by management The preparation of these consolidated financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent --- assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the current period. These estimates are reviewed periodically, and adjustments are made to income as appropriate in the year they become known. Items for which actual results may differ materially from these estimates are described in the following section. (i) Useful lives of equipment, patent and design costs, and revenue share assets (collectively “Equipment”) Depreciation of equipment is dependent upon estimates of useful lives, which are determined through the exercise Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 6 of judgment. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that take into account factors such as economic and market conditions and the useful lives of the equipment. (ii) Income taxes Income taxes and tax exposures recognized in the consolidated financial statements reflect management's best estimate of the outcome based on facts known at the reporting date. When the Company anticipates a future income tax payment based on its estimates, it recognizes a liability. The difference between the expected amount and the final tax outcome has an impact on current and deferred taxes when the Company becomes aware of this difference. In addition, when the Company incurs losses that cannot be associated with current or past profits, it assesses the probability of taxable profits being available in the future based on its budgeted forecasts. These forecasts are adjusted to take account of certain non-taxable income and expenses and specific rules on the use of unused credits and tax losses. When the forecasts indicate that sufficient future taxable income will be available to deduct the temporary differences, a deferred tax asset is recognized for all deductible temporary differences. 3. Material accounting policies The principal accounting policies applied to the preparation of these consolidated financial statements are set out below: (a) Financial instruments Financial assets Financial assets are classified as either financial assets at fair value through profit or loss (“FVTPL”), fair value through other comprehensive income (“FVTOCI”) or amortized cost. The Company determines the classification of financial assets at initial recognition. Financial assets at Fair-value through profit or loss Financial instruments classified as fair value through profit and loss are reported at fair value at each reporting date, and any change in fair value is recognized in the statement of operations in the period during which the change occurs. Realized and unrealized gains or losses from assets held at FVPTL are included in losses in the period in which they arise. Financial assets at Fair-value through other comprehensive income Financial assets carried at FVTOCI are initially recorded at fair value plus transaction costs with all subsequent changes in fair value recognized in other comprehensive income (loss). For investments in equity instruments that are not held for trading, the Company can make an irrevocable election (on an instrument-by-instrument bases) at initial recognition to classify them as FVTOCI. On the disposal of the investment, the cumulative change in fair value remains in other comprehensive income (loss) and is not --- recycled to profit or loss. Financial assets at amortized cost Financial assets are classified at amortized cost if the objective of the business model is to hold the financial asset for the collection of contractual cash flows, and the asset’s contractual cash flows are comprised solely of payments of principal and interest. The Company’s accounts receivable are recorded at amortized cost as they meet the required criteria. A provision is recorded based on the expected credit losses for the financial asset and reflects changes in the expected credit losses at each reporting period. Financial liabilities Financial liabilities are initially recorded at fair value and subsequently measured at amortized cost, unless they are required to be measured at FVTPL (such as derivatives) or the Company has elected to measure at FVTPL. The Company’s financial liabilities include trade and other payables which are classified at amortized cost. Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 7 Impairment IFRS 9 requires an ‘expected credit loss’ model to be applied which requires a loss allowance to be recognized based on expected credit losses. This applies to financial assets measured at amortized cost. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in initial recognition. (b) Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable, net of estimated returns and discounts. The Company considers the terms of the sales contracts as well as industry practices, taking into consideration the type of customer, the nature of the transaction and the specific circumstances of each arrangement. The Company’s revenue is comprised of direct sales of its LounGenie product line units and revenue sharing from its LounGenie product at revenue partners sites and locations. The Company recognizes revenues on product sales at the time the product is delivered. At the time of delivery, the following criteria for revenue recognition exist: title has transferred to the customer according to the shipping terms, the Company no longer retains managerial involvement with the product associated with ownership, the amount of revenue and costs incurred with respect to the underlying transaction are measured reliably, and collection of the related receivable is probable. Anticipated product returns are provided for at the time of sale. The Company recognizes revenues on revenue sharing units as it is earned. The Company places LounGenie units into service with the venue operator. The LounGenie units can be rented on a daily basis as part of a cabana or VIP daybed rental. The lease is treated as an operating lease. The Company retains ownership of the assets. The Company and the venue operator share the rental proceeds per an agreed distribution rate. (c) Trade receivables Trade receivables are recognized initially at fair value less allowances made for doubtful receivables based on a review of period-end trade receivables, and do not carry any interest. An allowance for doubtful accounts receivables is generally made when there is objective evidence that the Company will not be able to collect the amounts due according to original payment terms or when there are indications of collection issues --- related to specific customers. As at September 30, 2025 and December 31, 2024 there was no provision for uncollectible accounts recorded by the Company. (d) Inventory The Company's inventory is recorded at the lower of cost or net realizable value, with cost being determined on a first- in, first-out basis. Net realizable value is defined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs. The value of obsolete or unmarketable inventory is based on the Company's assessment of market conditions for its product determined by historical usage, estimated future demand and in some cases, the specific risk of loss on specifically identified inventory. (e) Equipment Equipment is stated at cost less accumulated depreciation. They are depreciated on the basis of their useful lives using the following methods and rates: Method Rate Furniture and equipment Declining balance 20% Computer equipment Declining balance 30% Manufacturing equipment tooling and moulds Straight-line 15 years Right of use assets Straight-line 5 years Revenue share assets Declining balance 33% An asset's residual value, useful life and depreciation method are reviewed at each financial year end and adjusted if Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 8 appropriate. When parts of an item of equipment have different useful lives, they are accounted for as separate items (major components). (f) Provisions In accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, provision for risks and expenses are recognized for probable outflows of resources that can be estimated and that result from present obligations resulting from past events. In the case where a potential obligation resulting from past events exists, but where occurrence of the outflow of resources is not probable or the estimate is not reliable, these contingent liabilities are disclosed in off-balance sheet commitments and litigation. The provisions are measured based on management's best estimates of outcomes on the basis of facts known at the reporting date. (g) Share capital Share capital is presented at the value of the shares issued. Costs related to the issuance of shares are reported in equity, net of tax, as deduction of the issuance proceeds. (h) Foreign exchange translation The consolidated financial statements of the Company are presented in Canadian dollars, which is the functional currency. Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. At each reporting date, foreign currency denominated monetary assets and liabilities are translated at year-end exchange rates. Exchange differences arising from the transactions are recorded in profit or loss for the period. Exchange differences arising from operating transactions are recorded in operating profit for the period; exchange differences related to financing transactions are recognized in finance income or in equity. (i) Research and development Research costs are expensed as incurred. Patent and Design costs are expensed as incurred unless they can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use the asset --- . Capitalized Patent and Design costs are amortized on a straight-line basis over 15 years. Management reviews amortization periods and methods annually, with any changes accounted for prospectively. (j) Government assistance Government assistance that the Company receives for expenses incurred are recognized in profit or loss as an offset to the expenses to which they relate in the periods in which the expenses are recognized, unless the conditions for receiving the assistance are met after the related expenses have been recognized. ln that case, the assistance is recognized when it becomes receivable. Government assistance in the form of a guarantee from the government are recorded at fair value at the time received. (k) Income taxes The Company accounts for its income taxes using the deferred tax assets and liabilities method. Deferred income tax assets and liabilities are determined based on the difference between the carrying amount and the tax basis of the assets and liabilities. Any change in the net amount of deferred income tax assets and liabilities is included in profit or loss or equity. Deferred income tax assets and liabilities are determined based on enacted or substantively enacted tax rates and laws which are expected to apply to taxable profit for the years in which the assets and liabilities will be recovered or settled. Deferred income tax assets are recognized when it is probable they will be realized. Deferred tax assets and liabilities are not discounted. (l) Share-based compensation The Company has in place an Omnibus Plan, (the “Omnibus Plan”) which was last approved by the shareholders of Pool Safe’s at its Annual General and Special Meeting of Shareholders (the “AGSM”) held on February 28, 2023. The purpose of the Omnibus Plan is to advance the interests of the Corporation through the motivation, attraction and retention of key Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 9 employees, consultants and directors of the Company and designated affiliates of the Company and to secure for the Company and Shareholders the benefits inherent in the ownership of Common Shares by key employees, consultants and directors of the Company and the designated affiliates of the Company through the granting of non-transferable options (“Options”) and restricted share units (“RSUs”, and together with the Options, collectively, the “Awards”) to eligible participants under the Omnibus Plan. The Omnibus Plan is currently administered by the Board. Pursuant to the Omnibus Plan, the directors may delegate the administration of the Omnibus Plan to a committee (the “Committee”) of the directors of the Company authorized to carry out such administration and, failing a committee being so designated, the Omnibus Plan is to be administered by the Board. Common Shares Subject to the Omnibus Plan The aggregate number of Options reserved for issue under the Omnibus Plan may not exceed 10% of the Common Shares outstanding from time to time. The Omnibus Plan sets the maximum number of Common Shares reserved for issuance, in the aggregate, pursuant to the settlement of RSUs granted under the Omnibus Plan at 8,997,975 Common Shares. The maximum number of Common Shares reserved for issue pursuant to Awards granted to participants who are insiders of the Company in any twelve-month period may not exceed, in the aggregate, 10% of t --- he number of Common Shares then outstanding, unless disinterested Shareholder approval is received therefor in accordance with the policies of the TSXV. The maximum number of Common Shares reserved for issue pursuant to Awards granted under the Omnibus Plan to any one participant in any twelve-month period shall not exceed 5% of the number of Common Shares then outstanding, unless disinterested Shareholder approval is received therefore in accordance with the policies of the TSXV. The maximum number of Common Shares reserved for issue under Awards granted to any one participant (other than a participant who is an eligible director or eligible employee) in any twelve-month period shall not exceed 2% of the number of Common Shares then outstanding. The maximum number of Common Shares reserved for issue under Options granted to all eligible employees and to all participants (other than participants who are eligible directors) conducting Investor Relations Activities in any twelve-month period shall not exceed, in the aggregate, 2% of the number of Common Shares then outstanding. Options granted to participants (other than participants who are eligible directors or eligible employees) performing Investor Relations Activities shall vest in stages over a twelve-month period, with no more than one-fourth of the Options vesting in any three month period. The directors of the Company shall, through the establishment of appropriate procedures, monitor the trading in the securities of the Company by all grantees of Options performing Investor Relations Activities. At the 2023 AGSM, Shareholders were asked to approve an amended and restated omnibus incentive plan (the “Amended Omnibus Plan”), including certain amendments to the existing Omnibus Plan. The intent and design of the amended Omnibus Plan remains the same, to attract and retain the key executives necessary for the Company’s long-term success, to encourage executives to further the development of the Company and its operations, and to motivate top quality and experienced executives. The proposed amendments to the Omnibus Plan are being implemented to comply with the recent amendments, on November 24, 2021, to the TSXV Policy 4.4 – Security Based Compensation. The full text of the Amended Omnibus Plan can be found on SEDAR+ (www.sedarplus.ca) in the Management Information Circular dated January 16, 2023. The Company previously had an employee stock option plan as noted below. Where equity-settled share options are awarded to employees, officers and directors, the fair value of the options at the date of grant is charged to the statement of operations over the vesting period. Performance vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that eventually vest. Non-vesting conditions and market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether these vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition or where a non-vesting condition is not satisfied. Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modifica --- tion, is also charged to the statement of operations over the remaining vesting period. Where equity instruments are granted to employees, they are recorded at the fair value of the equity instrument granted at the grant date. The grant date fair value is recognized in comprehensive loss/income over the vesting period, described as Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 10 the period during which all vesting conditions are to be satisfied. Where equity instruments are granted to non-employees, they are recorded at the fair value of the goods or services received in the statement of operations. Options or warrants granted related to the issuance of shares are recorded as a reduction of share capital. When the value of goods or services received in exchange for the share-based payment cannot be reliably estimated, the fair value is measured by use of a valuation model. All equity-settled share-based payments are reflected in contributed surplus, until exercised. Upon exercise, shares are issued from treasury and the amount reflected in contributed surplus is credited to share capital, adjusted for any consideration paid. Where a grant of options is cancelled or settled during the vesting period, excluding forfeitures when vesting conditions are not satisfied, the Company immediately accounts for the cancellation as an acceleration of vesting and recognizes the amount that otherwise would have been recognized for services received over the remainder of the vesting period. Any payment made to the employee on the cancellation is accounted for as the repurchase of an equity interest except to the extent the payment exceeds the fair value of the equity instrument granted, measured at the repurchase date. Any such excess is recognized as an expense. (m) Leases Lease accounting policy At inception of a contract, the Company assesses whether a contract is, or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use (“ROU”) asset and a lease obligation at the lease commencement date. The right- of-use asset is initially measured based on the initial amount of the lease obligation adjusted for any lease payments made at or before the commencement date. The assets are depreciated over the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of future economic benefits. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease obligation. The lease obligation is subsequently measured at amortized cost using the effective interest rate method. (n) Earnings per share The Company presents basic and diluted earnings per share data for its common shares. Basic earnings per share is calculated by dividing the profit or loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by adjusting the profit o --- r loss attributable to common shareholders and the weighted average number of common shares outstanding, adjusted for the effects of all potentially dilutive common shares, which comprise convertible loans payable, warrants and share options. 4. New standards adopted in the current year and future changes Accounting Standards issued but not yet adopted: There are currently no new accounting standards issued but not effective that are anticipated to have a significant impact on the Company. Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 11 5. Receivables Receivables are comprised of: Sept. 30, 2025 Dec. 31, 2024 Trade receivables $ 256,471 $ 58,128 Taxes receivable 10,229 8,977 $ 266,700 $ 67,105 The following table shows the aging of the Company’s trade receivables: Sept. 30, 2025 Dec. 31, 2024 1 to 60 days $ 210,031 $ 24.643 61 days and older 65,669 33.485 266,700 58,128 Allowance for bad debts - - Accounts receivable $ 266,700 $ 58,128 The Company has not made any allowance for doubtful accounts as at September 30, 2025 and December 31, 2024. 6. Inventory The following comprises inventory: Sept. 30, 2025 Dec. 31, 2024 Raw materials $ 392,671 $ 297,265 Finished goods - - $ 358,767 $ 297,265 There was no write-down of inventory during the period ended September 30, 2025 and the year ended December 31, 2024. During the period ended September 30, 2025, $127,382 (September 30, 2024 - $52,547) of inventory was expensed as cost of sales. Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 12 7. Equipment In March 2024, the Company terminated its previous lease agreement. As a result, the related right-of-use asset of $194,814 and accumulated amortization of $181,388 were derecognized. Additionally, the fully amortized leasehold improvement were removed from equipment. In March 2024, the Company entered into a new lease agreement for its new office location, with a termination date of May 30, 2027. On the lease commencement date, the Company recognized a right-of-use asset of $165,022 and a corresponding lease liability of $157,812 (Note 10). September 30, 2025 Cost As at December 31, 2024 Net Additions As at September 30, 2025 Furniture and equipment $ 4,206 $ - $ 4,206 Computer equipment 1,367 2,000 3,367 Manufacturing equipment tooling and moulds 204,764 4,559 209,323 Right of use asset 165,022 - 165,022 Equipment $ 375,359 $ 6,559 $ 381,918 Accumulated depreciation As at December 31, 2024 Net Additions As at September 30, 2025 Furniture and equipment $ 4,206 $ - $ 4,206 Computer equipment 1,367 - 1,367 Manufacturing equipment tooling and moulds 128,406 10,313 138,719 Right of use asset 61,120 18,368 79,488 $ 195,099 $ 28,681 $ 223,780 Net book value $ 180,260 $ 158,170 December 31, 2024 Cost As at December 31, 2023 Net Additions As at December 31, 2024 Furniture and equipment $ 4,206 $ - $ 4,206 Computer equipment 1,367 - 1,367 Manufacturing equipment tooling and moulds 204,764 - 204,764 Right of use asset 194,891 - (194,891) 165,022 - 165,022 Leasehold improvement 14,145 (14,145) - Equipment $ 419,373 $ (44,014) $ 375,359 Accumulated depreciation As at December 31, 2023 Net Additions As at December 31, 2024 Furniture and equipment $ 4,206 $ - $ 4,206 Computer equipment 1,367 - 1,367 Manufacturing equipment to --- oling and moulds 114,755 13,651 128,406 Right of use asset 181,388 - (181,388) 61,120 - 61,120 Leasehold improvement 14,145 (14,145) - $ 315,861 $ (120,762) $ 195,099 Net book value $ 103,512 $ 180,260 Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 13 8. Revenue share assets As at December 31, 2024 Disposals Additions, net As at September 30, 2025 Cost $ 1,565,414 $ (140,282) $ 249,200 $ 1,674,332 Accumulated amortization (691,549) 121,911 (240,645) (810,282) Carrying value $ 873,865 $ (18,371) $ 8,555 $ 864,050 As at December 31, 2023 Disposals Additions, net As at December 31, 2024 Cost $ 1,040,230 $ (103,136) $ 628,320 $ 1,565,414 Accumulated amortization (410,541) 19,312 (300,320) (691,549) Carrying value $ 629,689 $ (83,824) $ 328,000 $ 873,865 9. Trade payables and other liabilities Trade payables and accrued liabilities are comprised as follows: 10. Lease Liability In the 2020 year the Company entered into a lease on its office location. In accordance with IFRS 16, the Company recognized a right-of-use asset of $194,891 and an equivalent lease liabilities at initial recognition. Upon the termination of the old lease agreement in March 2024, the remaining lease liability balance of $38,746 was derecognized. In March 2024, the Company entered into a lease on its new location. On the lease commencement date, the Company recognized a right-of-use asset of $165,022 and a corresponding lease liability of $157,812 (Note 10). The liability has been recorded as follows: Balance, December 31, 2023 $ 38,746 Imputed interest 784 Payments (11,529) Remove on termination of lease (28,001) Balance at December 31, 2024 – old lease - Additions – new lease 157,812 Imputed interest 12,334 Payments (67,117) Balance, December 31, 2024 103,029 Current portion 75,337 Long-term portion $ 27,692 September 30, 2025 December 31, 2024 Trade payables $ 42,888 $ 60,169 Accrued liabilities 137,630 134,382 $ 180,518 $ 194,551 The following table shows the aging of the Company’s trade payables: September 30, 2025 December 31, 2024 Current $ 42,888 $ 46,909 >60 days - 13,260 $ 42,888 $ 60,169 Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 14 Balance, December 31, 2024 $ 103,029 Imputed interest 5,517 Payments (80,541) Balance, September 30, 2025 28,005 Current portion 28,005 Long-term portion $ - Payments, including interest, over the term of the lease are as follows: 2025 2026 Payments $ 26,847 $ 28,338 11. Loans Loans are comprised as follows: September 30, 2025 December 31, 2024 Revolving Line of Credit $ 1,126,737 $ 865,270 Promissory Note - - Senior Secured Loan 500,000 500,000 Debenture 360,874 1,060,786 Canada Emergency Business Account (“CEBA”) loan - - 1,987,611 2,426,056 Current portion - - Long term portion $ 1,987,611 $ 2,426,056 Revolving Line of Credit The Company entered a revolving credit facility for up to $1 million. In July, 2022, the Company increased the available amount of the facility to $3,500,000. In 2022, the Company issued 3,000,000 warrants in conjunction with this facility. In July, 2022, the Company extended the term of the 3,000,000 warrants in connection with this facility, and increased the amount of the facility to $3,500,000. The interest rate for the facility was reduced from 10% to 8%, with a 2 --- % interest penalty in the event of late payment. On June 2, 2025, the Company announced that term of the facility was extended to May 31, 2028. The prior 3,000,000 warrants expired on May 31, 2025. On the facility extension announced June 2, 2025, 3,000,000 warrants with a strike price of $0.05 were issued at a net value of $4,816. The Company entered a revolving credit facility for up to $1 million. In July, 2022, the Company increased the available amount of the facility to $3,500,000. The facility was extended to May 31, 2028 in Q2 2025. Loan balance, December 31, 2023 632,637 In 2024, the Company paid $637,406 against balances borrowed and interest. (637,406) In 2024, the Company borrowed a further $797,575 against balances borrowed. 797,575 In 2024, the Company accrued interest of $94,790. 94,790 In 2024, the Company extended 1,600,000 warrants for 12 months (28,636) Accreted value of warrants in the 2024 year 6,310 Loan balance, December 31, 2024 865,270 Current portion of loan at December 31, 2024 865,270 Long term portion of loan at December 31, 2024 $ - Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 15 Revolving line of credit repayments are based on a percentage of the Company’s share of revenue from revenue sharing assets. Repayments are based on expected business during 2025. Promissory Note On March 19, 2025, the Company announced that its subsidiary company, 1974134 Ontario Inc., had entered into an agreement with a Lender for a short-term Promissory Note in the amount of $300,000 to the Subsidiary. On May 23, 2025 the Company repaid the Promissory Note and all accrued interest in full. Senior Secured Loan In May 2021, the Company entered into a Financing Agreement for a senior secured loan of $500,000. The Company issued 1,600,000 warrants in conjunction with the Senior Secured Loan. The loan was originally due December 31, 2022 and bore interest at 12% per annum. Subsequent to December 31, 2022, the repayment date was extended to December 31, 2023, December 31, 2024, and December 31, 2025, and the term of the warrants was concurrently extended. The warrants were valued at $24,598 using a Black-Scholes valuation option model and are considered a cost of issuance. The warrants were accreted against the loan balance, as accretion expenses, over the term of the loan. This loan is subordinate only to the revolving line of credit. Current portion of loan balance at September 30, 2025 and December 31, 2024 $ 500,000 Debenture On August 31, 2022, the Company entered into loan agreements totaling $675,000. The loans are due August 31, 2025 and bears interest at 8% per annum. The Company incurred costs of $56,613 related to the Loans. The Company issued 19,237,500 bonus warrants in conjunction with the Loan. The warrants were valued at $94,026 using a Black-Scholes valuation option model and are considered a cost of issuance. The financing costs and the warrant costs are being accreted against the loan balance, as accretion expenses, over the term of the loan. On November 10, 2022, the Company entered into further loan agreements totaling $130,000. The loans are due August 31, 2025 and bears interest at 8% per annum. The Company issued 3,705,000 bonus warrants in conjunction with the Loans. The warrants were valued at $18,109 using a Black-Scholes valuation option model and are considered a cost of issuance. The f --- inancing costs and the warrant costs are being accreted against the loan balance, as interest, over the term of the loan. On June 1, 2023, the Company entered into further loan agreements totaling $420,000. The loans are due June 1, 2026 and bears interest at 8% per annum. The Company issued 11,970,000 bonus warrants in conjunction with the Loans. The warrants were valued at $75,462 using a Black-Scholes valuation option model and are considered a cost of issuance. The warrant costs are being accreted against the loan balance, as interest, over the term of the loan. Loan balance, December 31, 2024 $ 865,270 In 2025, the Company made payments against balances borrowed. (225,150) In 2025, the Company incurred and paid interest. 76,176 In 2025, the Company made draws on the facility. 437,675 In 2025, the warrants expired and new warrants were issued, net (29,796) Accreted value of warrants in the 2025 period 2,562 Loan balance, September 30, 2025 1,126,737 Current portion of loan at September 30, 2025 1,126,737 Long term portion of loan at September 30, 2025 $ - In the period ended September 30, 2025, the Company incurred interest on the revolving line of credit in the amount of $76,176 (September 30, 2024 - $71,944) and accretion expenses of $13,737 (September 30, 2024 - $4,733). Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 16 On June 30, 2023, the Company entered into further loan agreements totaling $670,000. The loans are due June 30, 2026 and bears interest at 8% per annum. The Company issued 19,095,000 bonus warrants in conjunction with the Loans. The warrants were valued at $120,380 using a Black-Scholes valuation option model and are considered a cost of issuance. The warrant costs are being accreted against the loan balance, as interest, over the term of the loan. On July 6, 2023, the Company entered into further loan agreements totaling $50,000. The loans are due July 6, 2026 and bears interest at 8% per annum. The Company issued 1,425,000 bonus warrants in conjunction with the Loans. The warrants were valued at $8,984 using a Black-Scholes valuation option model and are considered a cost of issuance. The warrant costs are being accreted against the loan balance, as interest, over the term of the loan. On December 19, 2024, the Company repaid $790,000 of the debentures. On January 7, 2025, the Company repaid $50,000 of the debentures. August 2022 $ 675,000 November 2022 130,000 805,000 Warrant value (112,135) Warrant accretion 3,618 Cash costs of financing (56,613) Cost accretion 6,290 Loan balance at December 31, 2022 646,160 June 2023 420,000 June 2023 670,000 July 2023 50,000 Warrant value (204,825) Warrant accretion 73,612 Cost accretion 18,871 Loan balance at December 31, 2023 1,673,818 Loan repayments (790,000) Warrant accretion 152,986 Cost accretion 23,982 Loan balance at December 31, 2024 1,060,786 Loan repayments (775,000) Warrant accretion 59,213 Cost accretion 15,875 Loan balance at September 30, 2025 $ 360,874 Canada Emergency Business Account (“CEBA”) loan In April 2020, the Company received the Canada Emergency Business Account (“CEBA”) loan of $40,000 which is an interest-free loan to cover operating costs. In December 2020, the Company received the Canada Emergency Business Account (“CEBA”) loan of $20,000 which is an interest-free loan to cover operating costs. The CEBA loan program was launch --- ed by the government of Canada to support businesses by providing financing for their expenses that cannot be avoided or deferred and assisting businesses for successful relaunch when the economy recovers from COVID-19. In 2022, the Government extended the repayment term to January 18, 2024. Repaying the balance of the loan on or before that date will result in a loan forgiveness of $20,000. The Company repaid the loan in 2024, prior to the due date, and recognized a $20,000 gain in the period of repayment. December 31, 2024 December 31, 2023 Balance, beginning of period $ 60,000 $ 60,000 Payment (40,000) - Gain on payment (20,000) Balance, end of period $ - $ 60,000 Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 17 12. Share Capital (i) During March 2021, the Company issued 2,760,000 common shares to the holders of convertible debt and 402,000 common shares to the holders of promissory notes, to extend the maturity terms of the debts by 25 months. The Company ascribed a cost of $63,240 to these shares at a share price of $0.02. (ii) In May 2021, the Company issued 11,500,000 common shares at an ascribed value of $0.04 per share, for total ascribed value of $460,000, in payment of the convertible debenture. The Company also recognized the convertible debt warrant, valued at $68,647, as a part of this repayment transaction. (iii) In May 2021, the Company issued 1,675,000 common shares at an ascribed value of $0.04 per share, for total ascribed value of $67,000, in payment of the promissory notes. (iv) In May 2021, the Company issued 871,510 common shares at an ascribed value of $0.04 per share, for total ascribed value of $34,860, in payment of the interest accrued and due to the holders of the convertible debt and the promissory notes. (v) In January 2023, the Company issued 750,000 common shares at an ascribed value of $0.03 per share, for total ascribed value of $22,500, in payment of a debt to a related party. (vi) In September 2024, the Company issued common shares related to 250,000 RSUs at a deemed price of $0.03 for proceeds of $7,500. (vii) In December 2024, the Company issued 23,345,000 common shares upon the exercise of warrants, generating cash proceeds of $1,167,250. In connection with the exercise, $124,968 was reclassified from warrants to common shares, representing the Black Scholes value of the warrants exercised. (viii) In May 2025, the Company issued 19,950,000 common shares upon the exercise of warrants, generating cash proceeds of $997,500. In connection with the exercise, $122,770 was reclassified from warrants to common shares, representing the Black Scholes value of the warrants exercised. (ix) In August 2025, the Company issued 3,562,500 common shares upon the exercise of warrants, generating cash proceeds of $178,125. In connection with the exercise, $22,444 was reclassified from warrants to common shares, representing the Black Scholes value of the warrants exercised. (a) Authorized An unlimited number of common shares without par value. An unlimited number of voting class "A" shares. (b) Issued common shares Number Amount Balance at December 31, 2020 72,021,240 3,339,590 Issuance of shares and units for extension of convertible debt term (i) 3,162,000 63,240 Issuance of shares in satisfaction of convertible debt (ii) 11,500,000 460,000 Conversion of equity component of convertible debt (ii) - --- 68,647 Issuance of shares in satisfaction of promissory note (iii) 1,675,000 67,000 Issuance of shares in satisfaction of accrued interest (iv) 871,510 34,860 Balance at December 31, 2022 89,229,750 $ 4,033,337 Issuance of shares in satisfaction of debt (v) 750,000 22,500 Balance at December 31, 2023 89,979,750 $ 4,055,837 Issuance of shares in satisfaction of RSUs (vi) 250,000 7,500 Issuance of shares on exercise of warrants (vii) 23,345,000 1,292,218 Balance at December 31, 2024 113,574,750 $ 5,355,555 Issuance of shares on exercise of warrants (viii and ix) 23,512,500 1,175,625 Warrants expired - 73,646 Balance at September 30, 2025 137,087,250 $ 6,750,040 Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 18 (c) Warrants At September 30, 2025, the following warrants were outstanding: Number of Warrants Exercise Price Expiry Date Warrants 3,000,000 $0.05 May 31, 2028 2,850,000 $0.05 June 30, 2026 1,425,000 $0.05 July 6, 2026 1,600,000 $0.05 December 31, 2025 2,850,000 $0.05 November 10, 2025 855,000 $0.05 November 10, 2025 Warrant transactions and the number of warrants outstanding are summarized as follows: September 30, 2025 December 31, 2024 Balance, beginning of period 36,687,500 $0.05 60,032,500 $0.05 Issued 3,000,000 $0.05 — Exercised (23,512,500) $0.05 (23,345,000) $0.05 Expired (3,595,000) $0.05 — Balance, end of period 12,580,000 $0.05 36,687,500 $0.05 As related to the revolving line of credit financings, the Company determined that the fair value of the warrant liability at April and May 2019 related to the 3,000,000 warrants, using the Black-Scholes Options Pricing Model, was $53,612. The Company determined that the fair value of the warrant liability using the Black-Scholes Options Pricing Model, using the following inputs; Dividend yield – Nil, interest rate of 0.52%, volatility of 91% and an expected life of 3 years. In July, 2022, the Company extended the term of the 3,000,000 warrants to May 31, 2025, in connection with the line of credit. The warrant extension was valued at $31,554 using a Black-Scholes valuation option model and is considered a cost of extending the facility. The warrants expired unexercised. In May 2025, the Company issued 3,000,000 warrants related to the extension of the revolving line of credit financings. The Company determined that the fair value of the warrant liability at May 2025 related to the 3,000,000 warrants, using the Black-Scholes Options Pricing Model, was $29,796 (net - $4,816), using the following inputs; Dividend yield – Nil, interest rate of 3.00%, volatility of 85% and an expected life of 3 years. As related to debt financings in the 2021 year, the Company determined that the fair value of the warrants at April 2021 related to the 1,600,000 warrants, using the Black-Scholes Options Pricing Mode, was $24,598. The Black- Scholes Options Pricing Model used the following inputs; Dividend yield – Nil, interest rate of 0.52%, volatility of 91% and an expected life of 1.7 years. As related to debt financings in the 2022 year, the Company determined that the fair value of the warrants at August 2022 related to the 19,237,500 warrants, using the residual value method, was $94,026, based on the relative value of the warrants. The fair value of the warrants at November 2022 related to the 3,705,000 warrants, using the residual value method, was $18,109, based on the relativ --- e value of the warrants. As related to debt financings in the 2023 year, the Company determined that the fair value of the warrants at September 2023 related to the 32,490,000 warrants, using the residual value method, was $204,825, based on the relative value of the warrants. In December 2024, 23,345,000 warrants were exercised. See Note 12 (b)(vii). In May 2025, 19,950,000 warrants were exercised. See Note 12 (b)(viii). In August 2025, 3,562,500 warrants were exercised. See Note 12 (b)(ix). Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 19 (d) Stock Options and Restricted Share Units (RSU) Stock Options On April 19, 2017, the Company approved the 10% rolling stock option plan (the “Plan”). Pursuant to the Plan, the Company is entitled to grant options and reserve for issuance up to 10% of the shares issued and outstanding at the time of grant. The terms and conditions of any options granted, including the number and type of options, the exercise period, the exercise price and vesting provisions, are determined by the Compensation Committee which makes recommendations to the board of directors for their approval. The maximum term of options granted cannot exceed 10 years. The TSXV’s rules require the Plan to be approved annually by shareholders. On December 1, 2021, at the Company’s AGSM, shareholders approved the adoption of the Omnibus Plan. The Omnibus Plan was last approved by the shareholders at the Annual General and Special Meeting of Shareholders (the “AGSM”) held on June 3, 2025. The Company repealed and replaced its current Plan to adopt the Omnibus Plan. Stock options granted under the previous Plan remained outstanding and were governed by the terms of the Omnibus Plan. At September 30, 2025, the following stock options were outstanding: Number of Options Exercise Price Expiry Date 3,400,000 $0.05 March 20, 2033 500,000 $0.05 January 25, 2034 Stock option transactions and the number of stock options outstanding are summarized as follows: September 30, 2025 December 31, 2024 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Outstanding, beginning of year 8,361,487 $ 0.05 7,861,487 $ 0.05 Granted - - 500,000 0.05 Exercised - - - - Cancelled/Expired (4,461,487) 0.05 - - Outstanding, end of period 3,900,000 $ 0.05 8,361,487 $ 0.05 Exercisable, end of period 3,900,000 $ 0.05 5,372,291 $ 0.05 The Company did not grant stock options during the period ended September 30, 2025. During the year ended December 31, 2024, the Company issued 500,000 stock options. The options have a strike price of $0.05 per share and a ten-year term. The options vest as to one half immediately and one half over one year. The options were valued at $7,091 using the Black-Scholes model and the value will be expensed over the vesting term of the options. The aggregate fair value of the options issued and vested in the year ended December 31, 2024 was $55,444. The weighted average contractual term of stock options outstanding and exercisable as at September 30, 2025 is 7.6 years (December 31, 2024 – 7.4 years). A total of 4,461,487 stock options were granted to the Company’s former executive chairman and fully vested in January 2024 in accordance with the term of his executive contract. During the period ended September 30, 2025, 4,461,487 (December 31, 2024 - nil) stock options expired unex --- ercised. RSU At September 30, 2025, the following RSU’s were outstanding: Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 20 Number of RSU’s Expected Vesting Date 4,400,000 March 21, 2026 During the year ended December 31, 2023, the Company issued 4,650,000 RSU’s. Vesting of 4,400,000 RSU’s has been deferred until 2026. The RSU’s will be expensed on vesting. During the year ended December 31, 2024, the Company issued 250,000 common shares on the vesting of RSUs. 13. Related party transactions The following is a summary of the Company's related party transactions during the periods ended September 30, 2025 and 2024: (a) Key management compensation Key management personnel are persons responsible for planning, directing and controlling activities of an entity, and include executive and non-executive directors. Compensation provided to key management is as follows: No stock-based compensation was granted to related parties in the period ended September 30, 2025. Stock-based compensation of $52,784 was granted to related parties via the issuance of 500,000 options in the period ended September 30, 2024. Balances of $Nil (December 31, 2024 - $nil) were due to related parties at September 30, 2025. 14. Income taxes This note has not been updated from December 31, 2024. 15. Operating Segment Information Management has determined that the Company’s operations have similar economic characteristics and are similar in the nature of products and services, production processes, types and classes of customer, methods of distribution and regulatory environment and as such have aggregated its operating units into a single reportable segment. The Company undertakes its operations in the U.S. and has no significant assets located or revenues generated outside the U.S. Therefore, no segment reporting is included in these consolidated financial statements. 16. Earnings (loss) per share Basic and diluted loss per share are calculated using the following numerators and denominators: Numerators September 30, 2025 September 30, 2024 Loss attributable to common shareholders $ (213,869) $ (271,581) Loss used in the computation of basic and diluted earnings per share $ (213,869) $ (271,581) Denominators September 30, 2025 September 30, 2024 Weighted average number of common shares for computation of basic and diluted loss per share 125,139,778 89,996,234 September 30, 2025 September 30, 2024 Short-term employee benefits, including salaries and fees $ 242,564 $ 203,125 Stock-based compensation - 52,784 $ 242,564 $ 255,909 Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 21 Denominators did not include balances for stock options or warrants as these items were anti-dilutive. 17. Financial instruments (a) Financial risks (i) 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 policy is to review liquidity resources and ensure that sufficient funds are available to meet financial obligations as they become due. Further, the Company's management is responsible for ensuring funds exist and are readily accessible to support business opportunities as they arise. The Company's funding is provided in the form of capital raised through the issuance of s --- hares and long-term debt. As the Company has a large working capital deficiency, liquidity risk is considered high. (ii) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s main credit risk relates to its accounts receivable. The accounts receivable are due from a few customers and various government bodies. The Company does not anticipate any significant loss for non- collection. (iii) Market risk (1) Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The company is not exposed to price risk. (2) Concentration and Interest rate risk Concentration risk is the risk that any single investment or group thereof, has the potential to materially affect the operating results of the Company. The Company is not exposed to significant concentration risk. The Company’s debt bears fixed rate interest and therefore it is management's opinion that the Company is not subject to significant interest rate risk. (b) Fair value hierarchy Financial instruments recorded at fair value on the statement of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 - valuation based on quoted prices (unadjusted) in active markets for identical assets and liabilities; Level 2 - valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 - valuation techniques using the inputs for the asset or liability that are not based on observable market data (unobservable inputs). In these consolidated financial statements, classification of financial instruments measured at fair value is as follows: Level 1 - cash; Level 2 - none; Level 3 - none. During the period, there were no transfers of amounts between Level 1 and Level 2 and 3. 18. Capital management The Company considers its capital to be its equity, and debt as disclosed in Notes 11 and 12. The Company's objectives when Pool Safe Inc. Notes to Consolidated Interim Condensed Financial Statements Nine months ended September 30, 2025 and 2024 (Expressed in Canadian Dollars - Unaudited) 22 managing its capital are to maintain a sufficient capital base in order to meet its short-term obligations and at the same time preserve investors' confidence required to sustain future investments. The Company is not subject to any capital requirements imposed by a lending institution or regulatory body, other than that of the TSXV which requires adequate working capital or financial resources of the greater of (i) $50,000 and (ii) an amount required in order to maintain operations and cover general and administrative expenses for a period of 6 months. As of September 30, 2025, the Company is not compliant with the policies of the TSXV. The impact of this violation is not known and is ultimately dependent on the discretion of the TSXV. The Company manages the capital structure and makes appropriate adjustments to --- it based upon changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company will attempt to issue new shares, issue new debt, acquire or dispose of assets. 19. Subsequent events Subsequent to September 30, 2025, Pool Safe repaid the $100,000 principal, and accrued interest, related to its 2022 debenture financing. Subsequent to September 30, 2025, Pool Safe repaid the $30,000 principal, and accrued interest, related to its 2022 debenture financing. Subsequent to September 30, 2025, 1,000,000 warrants were exercised for 1,000,000 common shares. The Company received proceeds of $50,000 from the exercises, which will be used for general corporate purposes. In addition, 2,705,000 warrants expired unexercised.