SEDAR Interim Financial Statements

Condensed Interim Financial Statements of RENOWORKS SOFTWARE INC. For the nine months ended September 30, 2025 and 2024 (Unaudited) The auditors of RenoWorks Software Inc. have not performed a review of the condensed interim financial statements for the three and nine-month period ended September 30, 2025 and September 30, 2024. 2 RENOWORKS SOFTWARE INC. Condensed Interim Statements of Financial Position As at September 30, 2025 and December 31, 2024 In Canadian dollars (Unaudited) September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 1,548,953 $ 1,536,671 Trade and other receivables 712,314 547,746 Prepaid expenses 65,982 74,118 Contract assets (note 6) 273,336 120,408 Loans receivable (note 11) 3,740 4,920 Total current assets 2,604,325 2,283,863 Non-current assets: Property, plant and equipment 56,817 61,490 Contract assets (note 6) 118,456 253,134 Loans receivable (note 11) 40,462 42,932 Total assets $ 2,820,060 $ 2,641,419 Liabilities and Shareholders’ Equity Current liabilities: Trade and other payables $ 164,115 $ 125,984 Deferred revenue (notes 5 and 7) 2,164,552 2,279,330 Total current liabilities 2,328,667 2,405,314 Non-current liabilities: Deferred revenue (notes 5 and 7) 222,174 240,467 Total liabilities 2,550,841 2,645,781 Shareholders’ equity Share capital (note 9) 8,853,061 8,781,734 Warrants 23,460 26,787 Contributed surplus 1,379,357 1,286,846 Deficit (9,986,659) (10,099,729) Total shareholders’ equity (deficiency) 269,219 (4,362) Total liabilities and shareholders’ equity $ 2,820,060 $ 2,641,419 Going concern (note 2(e)) See accompanying notes to the condensed interim financial statements. The interim financial information contained herein has not been reviewed by the Company’s Auditors. RENOWORKS SOFTWARE INC. Condensed Interim Statements of Income (Loss) and Comprehensive Income (Loss) Three and nine-months ended September 30, 2025 and 2024 In Canadian dollars (Unaudited) Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Revenue (note 5) $ 2,002,749 $ 1,894,911 $ 6,015,564 $ 5,210,091 Cost of sales 449,514 492,409 1,432,059 1,366,111 Gross profit 1,553,235 1,402,502 4,583,505 3,843,980 Selling, general and administrative expenses 1,011,861 905,508 3,105,783 2,656,517 Research and development expenses 515,957 429,732 1,407,903 1,294,447 (note 12) Results from operating activities 25,417 67,262 69,819 (106,984) Net finance income (note 8) 9,101 3,666 22,797 3,666 Foreign exchange gain (loss) (14,277) 39,436 20,454 100,958 Net income (loss) and comprehensive Income (loss) $ 20,241 $ 110,364 $ 113,070 $ (2,333) Net income (loss) per share - basic and diluted $ 0.00 $ 0.00 $ 0.00 $ (0.00) Weighted average shares outstanding 40,817,968 40,664,635 40,817,968 40,664,635 - basic Weighted average shares outstanding - diluted 40,724,378 40,664,635 40,689,027 40,664,635 See accompanying notes to the condensed interim financial statements. The interim financial information contained herein has not been reviewed by the Company’s Auditors. 4 RENOWORKS SOFTWARE INC. Condensed Interim Statement of Changes in Shareholders’ Equity (Deficiency) Nine months ended September 30, 2025 and 2024 In Canadian dollars (Unaudited) Number of common shares Share capital Warrants Contributed surplus Equity/(deficie ncy Total equity/(deficiency) Balance at January 1, 2024 40,664,635 8,781,734 26,787 1,229,074 (10,232,787) (195,192) Share-based compensation (note 9 and 10) - - - 39,547 --- - 39,547 Net loss and comprehensive loss - - - - (2,333) (2,333) Balance at September 30, 2024 40,664,635 $ 8,781,734 $ 26,787 $ 1,268,621 $ (10,235,120) $ (157,978) Balance at January 1, 2025 40,664,635 8,781,734 26,787 1,286,846 (10,099,729) (4,362) Conversion of share options (note 9) 53,333 8,000 - - - 8,000 Conversion of warrants (note 9) 100,000 63,327 (3,327) - - 60,000 Share-based compensation (note 9 and 10) - - - 92,511 - 92,511 Net income and comprehensive income - - - - 113,070 113,070 Balance at September 30, 2025 40,817,968 $ 8,853,061 $ 23,460 $ 1,379,357 $ (9,986,659) $ 269,219 See accompanying notes to the condensed interim financial statements The interim financial information contained herein has not been reviewed by the Company’s Auditors. 5 RENOWORKS SOFTWARE INC. Condensed Interim Statements of Cash Flows Three and nine-months ended September 30, 2025 and 2024 In Canadian dollars (Unaudited) Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Cash flow from operating activities: Net income (loss) and comprehensive income (loss) $ 20,241 $ 110,364 $ 113,070 $ (2,333) Adjustments for: Amortization of property, plant 4,805 5,516 14,137 16,245 and equipment Employee benefit portion on loan (note11) (1,007) (1,113) (3,100) (3,412) Interest expense (note 8) - 156 - 156 Bad debt 16,660 - 16,660 10,553 Share-based compensation (note 10) 36,618 13,181 92,511 39,547 Operating cash flows before movements in working capital 77,317 128,104 233,278 60,756 Change in trade and other receivables (9,523) (597,995) (181,228) (581,424) Change in prepaid expense 16,049 18,464 8,136 (9,179) Change in trade and other payables (33,546) 469 38,130 (117,803) Change in contract assets (42,741) (50,860) (18,250) (203,853) Change in deferred revenue (16,317) 155,714 (133,071) 956,396 (8,761) (346,104) (53,005) 104,893 Interest paid - (156) - (156) Net cash increase (used in) (8,761) (346,260) (53,005) 104,737 operating activities Cash flows from investing activities: Purchase of capital assets (3,897) (5,199) (9,463) (8,813) Proceeds received on loan repayment 2,250 2,250 6,750 6,750 Net cash used in investing activities (1,647) (2,949) (2,713) (2,063) Cash flow from financing activities: Option exercise (note 10) 2,500 - 8,000 - Warrant conversion 60,000 - 60,000 - Net cash increase from 62,500 - 68,000 - financing activities Net increase (decrease) in cash and cash equivalents 52,092 (349,209) 12,282 102,674 Opening cash and cash equivalents 1,496,861 1,097,432 1,536,671 645,549 Closing cash and cash equivalents $ 1,548,953 $ 748,223 $ 1,548,953 $ 748,223 See accompanying notes to condensed interim financial statements. The interim financial information contained herein has not been reviewed by the Company’s Auditors. RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 6 1. Reporting entity: RenoWorks Software Inc. (“RenoWorks” or the “Company”) is a company registered in Alberta, Canada. The address of the Company’s registered office is 2720, 308 – 4th Avenue SW Calgary, AB, T2P 0H7. RenoWorks develops and distributes digital visualization software for the renovation and new home construction sectors. RenoWorks is a publicly-traded company listed on the TSX Venture Exchange under the symbol “RW”. 2. Basis of presentation: (a) Statement of compliance: The financial statements have been prepared in accordance with Internatio --- nal Financial Reporting Standards (“IFRS”). The financial statements were authorized for issue by the Board of Directors on November 10, 2025. (b) Basis of measurement: The financial statements have been prepared on the historical cost basis, except for certain financial assets as disclosed in Note 4. (c) Functional and presentation currency: These financial statements are presented in Canadian dollars which is the Company’s functional currency. (d) Use of estimates and judgements: The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about critical estimates that have the most significant effect on the amounts recognized in the financial statements is included in Note 4: Determination of fair values. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the December 31, 2024 Financial Statements Note 3(g): Share-based payment transactions and Note 3(h): Revenue. Determination of the separately identifiable performance obligations and the relative fair value and revenue recognition timing of the performance obligations is subject to critical judgements. Critical RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 7 2. Basis of presentation (continued): judgements are required to assess whether or not a deferred tax asset should be recognized for temporary tax differences. (e) Going concern: These financial statements have been prepared on a going concern basis which contemplates the realization of assets and the payment of liabilities in the ordinary course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. The Company had a net income of $113,070 for the nine months ended September 30, 2025 (2024 – ($2,333)), and has a deficit of $9,986,659 at September 30, 2025 (December 31, 2024 - $10,099,729). These factors indicate the existence of material uncertainty that may cast significant doubt as to the ability of the Company to continue as a going concern. The Company’s ability to continue as a going concern is dependent on generating a profit from operations through increased sales volumes. Whether the Corporation can continue to generate sufficient operating cash flows to pay for its expenditures and settle its obligations as they fall due subsequent to September 30, 2025 is uncertain. Until this time, management may have to raise funds by issuing debt or equity issuances or by improved profitability. These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. Such adjustments could be material. 3. Material accounting policies: Recent accounting pronouncements: IFRS 18 Presentation and Disclosure in Financial Statements, new structure and disclosure requirements: In April 20 --- 24, the International Accounting Standards Board issued IFRS 18, Presentation and Disclosure in Financial Statements, which establishes the overall requirements for financial statement presentation and disclosure. The standard introduces structured subtotals in the statement of profit or loss, including a standardized 'operating profit' measure to enhance comparability. IFRS 18 replaces IAS 1, Presentation of Financial Statements, though much of IAS 1's substance remains. The new standard is effective for annual reporting periods beginning on or after January 1, 2027, with early adoption permitted. Management is currently assessing its impact and does not expect a material effect on the financial statements. These unaudited condensed interim financial statements have been prepared in accordance with IFRS using the same accounting policies as outlined in Note 3 of the consolidated financial statements for the year ended December 31, 2024. The accounting policies have been applied consistently by the Company. RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 8 4. Determination of fair values: A number of the Company’s accounting policies and disclosures require the determination of fair values for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (i) Share-based payment transactions and warrants: The fair values of the employee share options and warrants are measured using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behavior), expected dividends, expected forfeiture rates and the risk-free interest rate (based on a government bond with a comparable term). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair values. 5. Revenue by product: Revenue by product Three months ended September 30 2025 2024 Licensing & hosting $ 911,989 $ 662,321 Design services 676,102 $ 909,638 Libraries 223,487 180,040 Implementation 191,171 142,912 Total revenue $ 2,002,749 $ 1,894,911 Revenue by product Nine months ended September 30 2025 2024 Licensing & hosting $ 2,672,998 $ 1,961,850 Design services 2,225,506 2,363,727 Libraries 703,756 498,537 Implementation 413,304 385,977 Total revenue $ 6,015,564 $ 5,210,091 RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 9 5. Revenue by product (continued): Revenue by geographical location Three months ended September 30 2025 2024 Canada $ 101,733 $ 52,162 United States 1,895,292 1,836,906 Other 5,724 5,843 Total revenue $ 2,002,749 $ 1,894,911 Revenue by geographical location Nine months ended September 30 2025 2024 Canada $ 197,255 $ 168,049 United States 5,803,770 5,025,466 Other 14,539 16,576 Total revenue $ 6,015,564 $ 5,210,091 For the three months ended September 30, 2025 2 --- 8% (2024 – 39%) of revenues was earned from one customer. For the nine months ended September 30, 2025 32% (2024 – 36%) of revenues was earned from one customer. As at September 30, 2025, the Company expects to recognize revenue related to the unsatisfied or partially unsatisfied implementation, licensing and hosting performance obligation, that are unsatisfied or partially unsatisfied of $2,386,726. Of this amount, $724,539 is expected to be recognized in 2025, $1,488,545 in 2026, $142,942 in 2027, and $30,700 in 2028. 6. Contract assets: Contract assets consist of commissions paid on new contracts and costs incurred in advance to fulfil contracts. The changes in contract costs during the period consist of: September 30, December 31, 2025 2024 Balance, beginning of year $ 373,542 $ 169,152 Additions 163,048 396,040 Recognized in revenue From opening balances (100,625) (117,368) From additions during the year (44,173) (74,282) Balance, end of period $ 391,792 $ 373,542 Current portion 273,336 120,408 Non-current portion 118,456 253,134 Total $ 391,792 $ 373,542 RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 10 7. Deferred revenue: Timing differences between invoicing, cash collection and revenue recognition results in accounts receivable and deferred revenue on the statement of financial position. The changes in deferred revenue during the period consist of: September 30, December 31, 2025 2024 Balance, beginning of year $ 2,519,797 $ 1,633,394 Collected: 1,319,692 2,727,181 Recognized in revenue From opening balances (1,006,654) (1,352,069) From additions during the year (446,109) (488,709) Balance, end of period $ 2,386,726 $ 2,519,797 Current portion 2,164,552 2,279,330 Non-current portion 222,174 240,467 Total $ 2,386,726 $ 2,519,797 8. Finance income and finance cost Three months ended September 30 2025 2024 Other interest expense $ - (156) Interest income 9,101 3,822 Net finance income $ 9,101 $ 3,666 Nine months ended September 30 2025 2024 Other interest expense $ - (156) Interest income 22,797 3,822 Net finance income $ 22,797 $ 3,666 RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 11 9. Share capital: (i) Share capital: Authorized: Unlimited number of common shares Unlimited number of preferred shares (ii) Issued: September 30 December 31 Common shares 2025 2024 Issued and outstanding at January 1 $ 8,781,734 $ 8,781,734 Issued via option exercise 8,000 - Issued via warrant conversion 63,327 - Issued and outstanding at September 30/ December 31 $ 8,853,061 $ 8,781,734 Number of shares: Shares issued and outstanding at January 1 40,664,635 40,664,635 Issued via option exercise 53,333 - Issued via warrant conversion 100,000 - Issued and outstanding at September 30/December 31 40,817,968 40,664,635 (a) Warrants: Balance, January 1, 2024 $ 26,787 Balance, December 31, 2024 26,787 Conversion of warrants (3,327) Balance, September 30, 2025 $ 23,460 In September 2025, 100,000 warrants were exercised for net proceeds of $60,000. As at September 30, 2025 the Company has 705,000 unexercised warrants. These warrants expired unexercised on October 20, 2025. The fair value of $0.03 for the April 20, 2022 warrants was calculated using the Black-Scholes model. The fair value of these warrants was calculated using a term of 1.5 years, a volatility of 61% based --- on the Company’s historical volatility, and a discount rate of 2.7%. RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 12 10. Share-based compensation: The Company has an option program that entitles officers, directors, employees and certain consultants to purchase shares in the Company. Options granted are exercisable at the market price of the shares at the date of grant, have a five-year term, and vest in accordance with the terms of the individual grants. The number and weighted average exercise prices of share options are as follows: September 30, 2025 December 31, 2024 Weighted Weighted Number average Number average of exercise of exercise options price options price Outstanding at January 1 3,044,500 $ 0.35 3,543,000 $ 0.34 Forfeited during the year (226,500) 0.25 (408,500) 0.16 Expired during the year (200,000) 0.65 (950,000) 0.31 Exercised during the year (53,333) 0.15 - - Granted during the year 760,000 0.34 860,000 0.24 Outstanding at Sept 30/December 31 3,324,667 $ 0.33 3,044,500 $ 0.35 Exercisable at Sept 30/December 31 1,531,333 $ 0.41 1,704,667 $ 0.42 During the nine-months ended September 30, 2025 – 53,333 options were exercised by employees for proceeds totaling $8,000. The Company’s weighted average share price at the time the options were exercised was $0.19. During the nine-months ended September 30, 2025, the Company issued 760,000 share options (2024 – nil). All of the options issued in 2025 vest one-third annually over three years. The fair value of the options issued to employees, consultants, directors, and officers was estimated using the Black-Scholes option-pricing model with the following weighted average inputs: 2025 Fair value per option $ 0.1978 Share price 0.4022 Exercise price 0.35 Expected life of options 5 years Expected volatility 69.16% Forfeiture rate 10% Risk free rate of return 2.75% RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 13 10. Share-based compensation (continued): Expected volatility is based on the Company’s historical volatility. Share-based compensation of $36,618 was expensed during the three months ended September 30, 2025 (2024 - $13,181). Share-based compensation of $92,511 was expensed during the nine months ended September 30, 2025 (2024 - $39,547) The weighted average remaining lives of the Company’s outstanding options as at September 30, 2025 is 2.79 years (2024 – 2.63 years). 11. Loans receivable: September 30, December 31, Loans Receivable 2025 2024 Opening balance $ 47,852 $ 52,352 Repayment of loan (6,750) (9,000) Employee benefit portion adjustment 3,100 4,500 Total Loans Receivable $ 44,202 $ 47,852 Less current portion 3,740 4,920 Long-term loans receivable 40,462 42,932 The Company has an unsecured non-interest-bearing loan agreement totaling $75,000 with a director and officer of the Company. The initial terms of the loan were 24 equal payments of $3,125 beginning on October 12, 2022. In 2023 the loan agreement was amended. The loan was re-measured at fair value using an effective interest rate of 8.5% per annum. The principal balance of the loan is $60,750 (2024 – $65,250). A total of $14,139 (2024 - $17,241) is included in prepaid expenses representing the employee benefit portion of the loan amount. The new terms of the amended unsecured loan agreement are 105 equal monthly payments --- of $750 beginning on December 1, 2023. 12. Government grants: The Company received funding from various government programs in 2024 (2025 – nil). During the nine months ended September 30, 2024, the Company received $8,438 of funding from the Alberta Innovates Technology grant which was recorded as a reduction to general and administrative costs. The Company was entitled to investment tax credits due to its expenditures in scientific research and experimental development ("SR&ED"). For the nine months ended September 30, 2025, the Company received $30,222 (2024 – nil) as a direct result of these SR&ED expenditures. This entire amount has been accounted for as a reduction from research and development expense. RENOWORKS SOFTWARE INC. Notes to the Condensed Interim Financial Statements For the three and nine-months ended September 30, 2025 and 2024 14 13. Subsequent event: The remaining 705,000 share purchase warrants expired unexercised on October 20, 2025.