SEDAR Interim Financial Statements

Red White & Bloom Brands Inc. Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2025, and 2024 Filed December 1, 2025 CSE: RWB Page | 2 RED WHITE & BLOOM BRANDS, INC. MANAGEMENT RESPONSIBILITY FOR FINANCIAL REPORTING To the Shareholders of Red White & Bloom Brands Inc.: Management is responsible for the preparation and presentation of the accompanying Condensed Interim Consolidated Financial Statements, including responsibility for significant accounting judgments and estimates in accordance with International Financial Reporting Standards. This responsibility includes selecting appropriate accounting principles and methods and making decisions affecting the measurement of transactions in which objective judgment is required. In discharging its responsibilities for the integrity and fairness of the Condensed Interim Consolidated Financial Statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are properly maintained to provide reliable information for the preparation of the Condensed Interim Consolidated Financial Statements. The Board of Directors is responsible for overseeing management in the performance of its financial reporting responsibilities. The Board has the responsibility of meeting with management and external auditors to discuss the internal controls over the financial reporting process, auditing matters and financial reporting issues. The Board is also responsible for recommending the appointment of the Company's external auditors. December 1, 2025 /s/ “Brad Rogers” Director /s/ “Colby De Zen” Director Page | 3 TABLE OF CONTENTS PAGE Management’s Responsibility for Financial Reporting ................................................................... 1 Condensed Interim Consolidated Statements of Financial Position .............................................. 4 Condensed Interim Consolidated Statements of Loss and Comprehensive Loss .......................... 5 Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity ...................... 6 Condensed Interim Consolidated Statements of Cash Flows ........................................................ 7 Notes to the Condensed Interim Consolidated Financial Statements ........................................... 8 Page | 4 RED WHITE & BLOOM BRANDS, INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In thousands of Canadian Dollars, except number of shares and per share amounts) Notes As at 30-Sep-25 As at 31-Dec-24 $ $ Current assets Cash and cash equivalents 8 4,425 7,285 Accounts receivable 9 10,111 16,112 Short-term notes receivable 10 27,306 11,397 Prepaid expenses 11 1,535 1,993 Deposits 12 5,485 11,186 Inventory 13 44,572 47,556 Biological assets 14 2,630 1,728 Assets held for Sale 15 10,630 13,192 Other current assets 1,029 913 Total current assets 107,723 111,362 Non-current assets Property, plant and equipment, net 16 41,272 43,644 Intangible assets, net 17 97,640 100,709 Right-of-use assets, net 18 18,793 17,976 Long-term notes receivable 10 3,162 4,439 Investment 7 2,479 2,479 Goodwill 20 13,334 13,782 Other non-current assets 1,270 - Total non-current assets 177,950 183,029 Total assets 285,673 294,391 Liabilities and Shareholders’ Equity Current liabilities Accounts payable and accrued liabilities 21 17,499 24,074 Short-ter --- m notes payable 22 3,058 207,419 Short-term convertible notes 22 4,610 45,187 Short-term lease obligations 18 945 701 Income taxes payable 19,958 18,313 Liabilities held for sale 15 14,511 46,199 Other current liabilities 1,294 1,140 Total current liabilities 61,875 343,033 Non-current liabilities Long-term notes payable 20 329,467 39,157 Long-term convertible notes 20 46,349 44,071 Long-term lease obligations 18 23,136 22,028 Deferred tax liability 18,309 19,009 Other non-current liabilities 158 122 Total non-current liabilities 417,419 124,387 Total liabilities 479,294 467,420 Shareholders' equity Share capital 23 342,111 342,111 Contributed surplus 17,380 17,315 Currency translation adjustment (OCI) (11,776) (21,888) Accumulated deficit (537,848) (511,134) Non-controlling interest 27 (3,488) 567 Total shareholders' equity (deficit) (193,621) (173,029) Total liabilities and shareholders' equity 285,673 294,391 Nature of operations and going concern (note 1) Segmented results (note 31) Reclassifications (note 34) Subsequent events (note 35) Commitments and contingencies (note 30) Approved by the Board /s/ “Brad Rogers” Director /s/ “Colby De Zen” Director The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements Page | 5 RED WHITE & BLOOM BRANDS, INC. CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (In thousands of Canadian Dollars, except number of shares and per share amounts) Notes 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 $ $ $ $ Revenue Sales revenue 25 16,783 21,290 52,381 61,581 Cost of goods sold, before fair value adjustments 10,274 14,413 30,866 41,915 Gross Profit before fair market value adjustments 6,509 6,877 21,515 19,666 Unrealized changes in fair value of biological assets 2,135 (186) 2,010 (99) Realized fair value amounts included in inventory sold (157) 3,466 (7,791) 3,428 Gross profit after fair market value adjustments 8,487 10,157 15,734 22,995 Operating Expenses General and administration 26 8,112 7,911 21,467 21,866 Marketing expenses 1,587 1,202 4,230 3,545 Share-based compensation 23 22 59 65 165 Depreciation 16 695 1,190 1,930 2,666 Bad debt expense 9 1,442 861 2,626 3,079 Total Operating Expenses 11,858 11,222 30,318 31,321 Loss from operations before other expenses (income) (3,371) (1,065) (14,584) (8,326) Other expense (income) Interest earned on promissory notes 10 (1,127) (340) (2,712) (578) Interest income - - (9) - Other expenses (income) 250 (26) (5,725) - Finance expense 22 10,917 9,646 30,897 28,466 Accreted interest, leases 18 692 643 2,039 1,925 Acquisition costs 7 - 9 19 175 Business transaction costs 37 110 95 158 (Gain) loss on disposal of assets 16 1,345 127 1,345 354 (Gain) loss on settlement of debt 22 - 640 - (121) Gain on investments 7 - - 340 (7,645) Inventory write-downs 13 - - 174 - Foreign exchange (2,883) 2,323 5,041 (4,834) Total other expenses (income) 9,231 13,132 31,504 17,900 Loss before income taxes (12,602) (14,197) (46,088) (26,226) Current income tax expense (recovery) (695) 7,520 (2,840) 4,150 Deferred income tax expense (recovery) (9) 478 590 1,619 Net loss from continuing operations (13,306) (6,199) (48,338) (20,457) Profit (loss) from discontinued operations (4,512) 3,316 17,572 832 Net profit (loss) for the period (17,818) (2,883) (30,766) (19,625) Currency translation adjustment 4,981 (1,266) (10,113) 13,642 Net income (loss) and Comprehensive income (loss) (1 --- 2,837) (4,149) (40,879) (5,983) Net loss attributable to: Shareholders on continuing operations (12,493) (5,300) (44,283) (16,769) Shareholders on discontinued operations (4,512) 3,316 17,572 832 Non-controlling interests (813) (899) (4,055) (3,688) Net loss and comprehensive loss attributable to: Shareholders (12,024) (3,250) (36,824) (2,295) Non-controlling interests (813) (899) (4,055) (3,688) Earnings (loss) per share, basic and diluted From continuing operations (0.03) (0.01) (0.09) (0.04) From discontinued operations (0.01) 0.01 0.04 0.00 Total earnings (loss) per share, basic and diluted (0.04) (0.00) (0.05) (0.04) Weighted average number of outstanding common shares, basic and diluted 470,221,901 474,738,811 470,221,901 469,521,901 The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements. Page | 6 RED WHITE & BLOOM BRANDS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (In thousands of Canadian Dollars, except number of shares and per share amounts) 9 months ended 30-Sep-24 Common Shares Common Shares Non-Controlling Interests Contributed surplus Cumulative translation adjustment Accumulated Deficit Total equity # $ $ $ $ $ $ Balance, January 1, 2024 470,221,901 342,111 7,450 17,120 2,970 (484,920) (115,269) Stock based compensation (note 23) - - - 165 - - 165 Currency translation adjustments (OCI) - - - - (24,968) - (24,968) Net loss from continuing operations - - (3,688) - - (16,769) (20,457) Net loss from discontinued operations (note 32) - - - - - 832 832 Balance, September 30, 2024 470,221,901 342,111 3,762 17,285 (21,998) (500,857) (159,697) 9 months ended 30-Sep-25 Common Shares Common Shares Non-Controlling Interests Contributed surplus Cumulative translation adjustment Accumulated Deficit Total equity # $ $ $ $ $ $ Balance, January 1, 2025 470,221,901 342,111 567 17,315 (21,889) (511,137) (173,033) Stock based compensation (note 23) - - - 65 - - 65 Currency translation adjustments (OCI) - - - - 10,113 - 10,113 Net loss from continuing operations - - (4,055) - - (44,283) (48,338) Net loss from discontinued operations (note 32) - - - - - 17,572 17,572 Balance, September 30, 2025 470,221,901 342,111 (3,488) 17,380 (11,776) (537,848) (193,621) The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements. Page | 7 RED WHITE & BLOOM BRANDS, INC. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands of Canadian Dollars, except number of shares and per share amounts) Notes 9 months ended 30- Sep-25 9 months ended 30-Sep-24 $ $ Cash flow from operating activities: Net loss for the period (30,766) (19,625) Items not involving cash: 15,145 28,110 Changes in non-cash working capital items: Accounts receivable 9 5,631 45 Prepaid expenses 11 401 (361) Deposits 12 5,357 (3,236) Inventory 13 2,075 (4,648) Biological Assets 14 (6,727) (4,700) Accounts payable and accrued liabilities 21 (6,121) (1,453) Current Income tax payable 2,241 (4,161) Deferred income taxes (82) (1,925) Other assets (1,410) (701) Other liabilities 1,617 (358) Net cash provided by (used in) operating activities (12,639) (13,013) Cash flows from investing activities Acquisition of property, plant and equipment 16 (1,748) (2,844) Acquisition of property, plant and equipment in held for sale 15 974 - Acquisition of right-of-use assets 18 (2,468) (303) Advances on notes receivable 10 (16,164) (6,732) Interest receipts on notes receivable 10 231 10 --- 6 Principal receipts on notes receivable 10 3,617 - 7 - 1,009 Net cash provided by (used in) investing activities (15,558) (8,764) Cash flow from financing activities: Issuance of promissory note 22 - 5,750 Advances on notes payable 22 32,067 33,267 Interest payments on notes payable 22 (206) (1,678) Principal payments on notes payable 22 (1,423) (5,629) Amendment of convertible debt 22 - - Settlement of credit facility in discontinued operations 22 (12,722) - Addition to leases 18 1,921 (302) Principal payments on lease obligations 18 (256) (337) Interest payments on lease obligations 18 (2,039) (1,925) Net cash provided by (used in) financing activities 17,342 29,146 Foreign exchange affecting cash equivalents 7,995 (5,385) Change in cash during the period (2,860) 1,982 Cash equivalents, beginning of year 7,285 2,251 Cash, end of period 4,425 4,233 The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 8 1. NATURE OF OPERATIONS AND GOING CONCERN Red White & Bloom Brands Inc., (the "Company" or "RWB") is publicly traded, with its common shares currently trading on the Canadian Securities Exchange (the “CSE”) under the trading symbol "RWB". The Company was incorporated on March 12, 1980, pursuant to the Business Corporations Act, British Columbia, with its registered office located at 1890-1075 West Georgia Street, Vancouver, British Columbia, V6E 3C9. RWB is a multi-jurisdictional, vertically integrated cannabis operator with a presence in established legal markets across the United States, Canada, and international territories. The Company's core business activities include: 1. United States Distribution: Production and distribution of a diverse portfolio of premium cannabis products sold to licensed cannabis retailers in Michigan and California through established retailer networks. 2. Canadian Distribution: Vertically integrated cultivation, production, and distribution facilitating sales of premium medical (wholesale) and recreational cannabis products for both adult-use and medical purposes under a portfolio of distinct brands in Canada including Platinum Vape. 3. International Distribution: Wholesale distribution of cannabis biomass to licensed retailers in legal state within the European Union. 4. Retail Operations: As of the filing date of these Financial Statements, six (6) licensed medical and adult-use cannabis dispensaries in Michigan and Florida in addition to an online, subscription based medical dispensary platform servicing thousands of patients throughout Canada. 5. Brand Licensing: Extension of brand presence through arm’s length licensing of flagship Platinum and Platinum Vape product lines in multiple US states. The Condensed Interim Consolidated Financial Statements for the period ended September 30, 2025, and 2024 (the “Financial Statements”) have been prepared under the assumption of a going concern, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at September 30, 2025, the Company incurred accumulated net comprehensive losses of $537,848, (December 31, 2024; $511,134) since inception, including non-cash impairments of $257,897 realized in --- fiscal years 2021 through 2023. For the three and nine months ended September 30, 2025, the Company incurred net loss and other comprehensive loss of $12,837, and $40,878 (2024; $10,257, and $12,091, accordingly), including the impact of unrealized foreign exchange gains and losses on intercompany balances amounting to a$2,993 loss and a $4,978 gain for each period (2024; $2,292 gain and $11,504 gain). These unrealized foreign exchange losses arise from the translation of intercompany monetary balances denominated in foreign currencies between the Company's various subsidiaries with different functional currencies. Under IAS 21, The Effects of Changes in Foreign Exchange Rates, exchange differences arising on intercompany monetary items between entities with different functional currencies are recognized in profit or loss and are not eliminated on consolidation, as they represent genuine economic exposure to foreign currency fluctuations. The working capital (current assets less current liabilities) as at September 30, 2025, was $45,848 (December 31, 2024; $231,671 deficit). During the nine months ended September 30, 2025, net cash used in operations was $12,639 (2024; 13,013). The Company has traditionally relied on debt and equity financing to support operations. Due to current challenges in global cannabis capital markets, access to financing remains limited, potentially impacting the Company's ability to sustain operations, invest in growth initiatives, or meet debt obligations. The Company recently negotiated favorable terms with key lenders to renew and restructure maturing debt (note 22), providing additional cash flow availability. However, if further funding is not accessible, it could lead to material changes in operational activities. In evaluating going concern appropriateness, the Company considered all relevant information for the twelve-month period following this report. The Company is actively pursuing strategies including securing financing through existing or prospective debt resources, monetizing tangible assets, and reducing operating costs through streamlined operations. There can be no assurance the Company will achieve profitability. If going concern were not appropriate, adjustments to carrying values of assets and liabilities, reported expenses, and statement classifications would be necessary and could be material. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 9 2. BASIS OF PRESENTATION A. STATEMENT OF COMPLIANCE The Company's Financial Statements have been prepared in accordance with and using accounting policies consistent with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and the interpretations of the IFRS Interpretations Committee ("IFRIC"), effective for the Company's reporting for the three and nine months ended September 30, 2025, and 2024. Certain comparative amounts have been reclassified to conform with the current year presentation due to Pharmaco Inc. (“Pharmaco”), a wholly owned subsidiary of Red White & Bloom Brands Inc., being classified as discontinued operations. On December 26, 2024, a court-appointed receiver was authorized to manage and divest Pharmaco's assets following loan defaults. The business operations of Pharma --- co no longer aligned with the strategic objectives of the Company. The following amounts have been reclassified from continuing operations to discontinued operations for all periods presented: • Assets and liabilities of the discontinued subsidiaries have been reclassified and presented separately as assets and liabilities held for sale in the consolidated statement of financial position. • Revenues and expenses of the discontinued subsidiaries have been removed from their respective line items in the consolidated statements of profit and loss and presented separately as discontinued operations. • Cash flows of the discontinued subsidiaries have been separately disclosed as discontinued operations in the consolidated statements of cash flows. Other than the above referenced reclassifications, there are no other material changes to the comparative periods originally presented in the Interim Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2024, filed November 29, 2024. Refer to note 34 for details of amounts reclassified in the comparative period. These Financial Statements were authorized for issuance by the Company's Board of Directors and Audit Committee on December 1, 2025. B. BASIS OF MEASUREMENT These Financial Statements have been prepared on a historical cost basis except for biological assets and certain financial instruments classified as fair value through profit or loss, which are measured at fair value (note 6). In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information. C. FUNCTIONAL AND PRESENTATION CURRENCY All figures presented in these Financial Statements are reflected in thousands (‘000’s) of Canadian dollars, unless otherwise noted; Canadian dollars being the functional currency of the Company. Foreign currency transactions and translation into Canadian dollars is computed in accordance with the Company’s foreign currency and foreign currency translation accounting policies found in note 6. Functional currencies of subsidiaries included in these Financial Statements can be found in note 3. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 10 3. BASIS OF CONSOLIDATION SUBSIDIARIES Subsidiaries are those entities which the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee and has the ability to affect these returns through its power over the investee. The Company has applied the full consolidation method for entities that meet the criteria for consolidation. Consequently, all significant balances and effects of any transactions taking place between them have been eliminated in the consolidation process. If necessary, adjustments are made to the financial statements of the subsidiaries to adapt the accounting policies used to those used by the Company. Subsidiaries with controlling interest within these Financial Statements include the following: Subsidiary Source Currency Jurisdiction % Ownership As at 30-September-25 % Ownership As at 31-Dec-24 Continuing Operations Red White & Bloom Brands Inc. (Parent) CAD British Columbia, Canada 100% 100% 1RWB (PV) Canada, Inc. CAD Alberta and Ontario, Canada 100% 100% RWB Licensing Inc. CAD British Co --- lumbia, Canada 100% 100% 2Aleafia Inc. CAD Ontario, Canada 100% 100% 2Aleafia Farms Inc. CAD Ontario, Canada 100% 100% 2Aleafia Retail Inc. CAD Ontario, Canada 100% 100% 2Canabo Medical Corporation CAD Ontario, Canada 100% 100% 2Emblem Cannabis Corporation CAD Ontario, Canada 100% 100% 2Growwise Health Ltd. CAD Ontario, Canada 100% 100% 3Emblem Lands LP CAD Ontario, Canada 100% 100% 4Emblem Lands GP CAD Ontario, Canada 100% 100% MichiCann Medical Inc. CAD Ontario, Canada 100% 100% PV CBD, LLC USD California, United States 100% 100% 5RWB California, Inc. USD California, United States 100% 100% RWB Platinum Vape Inc. USD California, United States 100% 100% RWB Florida, LLC USD Florida, United States 77% 77% Red White & Bloom Florida, Inc. USD Florida, United States 77% 77% 6MPV Wellness Inc. USD Michigan, United States 100% - 7Red White & Bloom Michigan (2024), Inc. USD Michigan, United States 100% 100% RWB Michigan LLC USD Michigan, United States 100% 100% RWB (PV) Licensing, LLC USD Nevada, United States 100% 100% Discontinued Operations Vista Prime Management, LLC USD California, United States 100% 100% 8Vista Prime 3, Inc. USD California, United States 100% 100% 9Vista Prime 2, Inc. USD California, United States 100% 100% Mid-American Growers, Inc. USD Delaware, United States 100% 100% Pharmaco, Inc. USD Michigan, United States 100% 100% RLTY USA Corp. USD Delaware, United States 100% 100% RWB Illinois, Inc. USD Delaware, United States 100% 100% Real World Business Integration, LLC USD Illinois, United States 100% 100% 10GC Ventures 2, LLC USD Michigan, United States 100% 100% 1Incorporated March 7, 2023 2Acquired January 12, 2024 (note 7) 3 Established April 29, 2024 4Incorporated April 29, 2024 5Incorporated February 7, 2023 6 Formed August 15, 2025 7 Incorporated December 17, 2024 8 Dissolved November 6, 2024 9 Dissolved November 6, 2024 10 Dissolved November 19, 2024 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 11 4. ACCOUNTING PRONOUNCEMENTS A. ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Amendments to IAS 1 Presentation of Financial Statements (“IAS 1”) In January 2020, the IASB issued an amendment to IAS 1, which affects the presentation of liabilities in the statement of financial position and not the amount or timing of their recognition. The amendments clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the right to defer settlement by at least twelve (12) months. That classification is unaffected by the likelihood that an entity will exercise its deferral right. The amendments were effective for annual periods beginning on or after January 1, 2023, and are to be applied retrospectively. In October 2022, the IASB issued another amendment to IAS 1, which affects the classification of liabilities as current or non-current, clarifying requirements for the classification of liabilities as non-current which is effective for annual periods beginning on or after January 1, 2024. The amendments do not have a material impact on the Financial Statements. Amendments to Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements (“IAS 7”) On 25 May 2023, the IASB issued Supplier --- Finance Arrangements to add disclosure requirements, and ‘signposts’ within existing disclosure requirements, that ask entities to provide qualitative and quantitative information about supplier finance arrangements. The amendments are effective for reporting periods beginning on or after 1 January 2024. The amendments do not have a material impact on the Financial Statements. Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) In February 2021, the IASB issued “Definition of Accounting Estimates,” which amends IAS 8. The amendment replaces the definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty.” The amendment provides clarification to help entities distinguish between accounting policies and accounting estimates. The amendments are effective for annual reporting periods beginning on or after January 1, 2023. The amendments do not have a material impact on the Financial Statements. Amendments to IFRS 16, Lease liability in a Sale and Leaseback The amendment specifies the requirements that a seller-lessee should use in measuring the lease liability arising in a sale and leaseback transaction to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains that is effective for annual periods beginning on or after January 1, 2024. The Company is currently evaluating the potential impact of these amendments on the Company’s Financial Statements. The amendments do not have an impact on the Financial Statements. Amendments to IAS 1, Non-current Liabilities with Covenants In October 2022, the IASB issued amendments to IAS 1, which specifies that covenants whose compliance is assessed after the reporting date do not affect the classification of debt as a current or non-current at the reporting date. Instead, the amendment requires disclosure of information about these covenants in the notes to the financials statements. The amendments are effective for annual reporting periods belonging to January 1, 2024, with early adoption permitted. B. STANDARDS, AMENDMENTS, AND INTERPRETATIONS NOT YET EFFECTIVE New and amended accounting standards are effective for the Company for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The Company has not early adopted new or amended standards in preparing these Financial Statements. The Company has not yet determined the impact of these amendments on its Financial Statements. The following are relevant new and amended standards under review by the Company. Amendments to IAS 21, Lack of Exchangeability On 15 August 2023, the IASB issued Lack of Exchangeability to provide guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. The amendments are effective for reporting periods beginning on or after January 1, 2025. New standard, IFRS 18 Presentation and Disclosures in Financial Statements replacing IAS 1 'Presentation of Financial Statements. The IASB has published its new standard IFRS 18 ‘Presentation and Disclosures in Financial Statements' that will replace IAS 1 'Presentation of Financial Statements'. The new standard is the result of the so-called primary financial statements project, which aims at improving how entities communicate in their financial statements and will be effective for annual pe --- riods beginning on or after January 1, 2027. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 12 5. CRITICAL ASSUMPTIONS AND SOURCES OF UNCERTAINITY The preparation of these Financial Statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues, and expenses. Actual results may differ from these estimates. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant estimates and judgments used in the preparation of these Financial Statements are described in note 5 of the Company’s most recently filed Audited Consolidated Financial Statements for the year ended December 31, 2024, which can be found on the Company’s profile on Sedar+. 6. MATERIAL ACCOUNTING POLICIES The accounting policies adopted in these Financial Statements are consistent with those followed in preparation of the Company’s most recently filed Audited Consolidated Financial Statements for the year ended December 31, 2024, which can be found on Sedar+, which were prepared in accordance with IFRS as issued by the IASB. 7. ACQUISITIONS ALEAFIA ACQUISITION On January 12, 2024 (the “Acquisition Date”), the Company, through its subsidiary RWB (PV) Canada, Inc., acquired 100% of a newly created class of common shares of Emblem Cannabis Corporation ("ECC"), Canabo Medical Corporation ("CMC"), and Aleafia Retail Inc. ("ARI") (collectively, the "Purchased Entities"). This acquisition (the "Aleafia Acquisition") was executed in connection with proceedings under the Companies' Creditors Arrangement Act (the "CCAA Proceedings") involving Aleafia Health Inc. and certain of its subsidiaries (collectively, the "Aleafia Group"). Upon completion of the Aleafia Acquisition, the Company became the sole shareholder of the Purchased Entities and their respective subsidiaries. The total consideration for the Aleafia Acquisition was $30,565, comprising: • $24,195 through the release of debt obligations payable by the Aleafia Group under the AH Note Receivable and the AH DIP Note (refer to Note 10); and • $6,370 in cash consideration, funded through a combination of existing cash reserves held by the Purchased Entities and a drawdown under the Company's CAD RGR Grid Note (refer to note 22). These funds were allocated to discharge outstanding obligations under a pre-existing credit agreement and to finance closing costs and post-closing expenses incurred by the Monitor and respective legal counsel. All identifiable net assets held by the Purchase Entities, including inventory, biological assets, property, plant and equipment, investments, intangible assets and goodwill, have been recorded at their respective fair market values as assessed on Acquisition Date. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of --- shares per share amounts) Page | 13 The purchase price allocation for the Aleafia Acquisition is as follows: $ AH DIP Note allocated to purchase of shares 7,241 AH Note Receivable allocated to purchase of shares 16,954 Cash consideration 6,370 Total consideration 30,565 Identifiable assets (liabilities) acquired Cash and equivalents 1,009 Receivables 2,230 Prepaids and deposits 1,722 Inventory 7,267 Biological assets 692 Land 11,700 Property, plant and equipment 9,686 Right of use assets 36 Intangible assets 4,681 Investments 1,837 Payables (2,360) Taxes payable (72) Accrued liabilities (843) Other payables (65) Lease obligations (41) Total identifiable net assets 37,479 1Excess consideration over net identifiable assets (6,914) Total consideration 30,565 During the three and nine months ended September 30, 2024, the Company expensed $9, and $175, respectively, in acquisition costs relating to the Aleafia Acquisition. Revenue of the Purchased Entities post-acquisition for the three and nine months ended September 30, 2024, amounted to $5,368 and $12,990, respectively, and net loss totalled was $56, and $3,070, respectively. If the Aleafia Acquisition had closed on January 1, 2024, the Company estimates it would have recorded consolidated revenues of $62,113 and a consolidated net loss of $20,129 for the nine months ended September 30, 2024, resulting in an increase in revenue of $532 and an increase in net loss of $504 for nine months ended September 30, 2024, including the impact of a bargain purchase amounting to $7,645 recorded by the Company to gain on investments. During the year ended December 31, 2024, the Company completed a final assessment of the purchase price allocation related to the Aleafia Transaction. The assessment was completed within the measurement period as prescribed under IFRS 3, Business Combinations, and reflects management's refined estimates of the fair values of the acquired assets based on additional information obtained subsequent to the acquisition date. 1 During the year ended December 31, 2024, the Company completed its reassessment of the purchase price allocation related to the Aleafia Transaction. This reassessment resulted in the following adjustments to the fair values of acquired assets: • An increase of $267 in inventory • A decrease of $444 in biological assets • A decrease of $554 in investments These purchase price allocation adjustments resulted in a corresponding adjustment to the bargain purchase gain initially recorded. The bargain purchase gain decreased from $7,645, as previously reported in the Company's interim consolidated financial statements for the three and nine months ended September 30, 2024, to $6,914, representing a net reduction of $700. The reassessment was completed within the measurement period as prescribed under IFRS 3, Business Combinations, and reflects management's refined estimates of the fair values of the acquired assets based on additional information obtained subsequent to the acquisition date. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 14 8. CASH AND EQUIVALENTS Cash as at September 30, 2025, and December 31, 2024, includes the following: As at 30-Sep-25 As at 31-Dec-24 $ $ Cash in bank 3,710 6,622 Cash on hand 365 116 Cash in transit 111 229 Restricted cash 239 --- 318 Total cash 4,425 7,285 • Cash on Hand: Comprised of currency maintained at retail locations and petty cash funds utilized for immediate operational requirements. • Cash in Bank: Represents balances held in deposit accounts at the Company's authorized financial institutions. • Cash in Transit: Consists of retail location deposits in process of being transferred to the Company's financial institution. These deposits typically require twenty-four to forty-eight hours to be recognized and credited to the Company's accounts. • Restricted Cash: Includes funds held in a non-redeemable 24-month guaranteed investment certificate ("GIC") maturing on August 29, 2027. This GIC bears an effective interest rate of 3.7% with monthly compounding. The Company received cash advances throughout the year under the CAD and USD RGR Grid Notes (note 22). Net proceeds from these advances are included in cash and cash equivalents as at September 30, 2025. 9. ACCOUNTS RECEIVABLE The Company's trade accounts receivable are incurred as a result of sales through its Distribution and Licensing segments. The Company extends credit terms to customers at its sole discretion based on the customers’ creditworthiness. The Company’s typical credit terms, for customers who have met the Company’s creditworthiness criteria particular to their business attributes, range between 15 and 60 days. As at September 30, 2025, and December 31, 2024, accounts receivable consists of the following: As at 30-Sep-25 As at 31-Dec-24 $ $ Trade receivables 17,867 22,466 Sales tax recoverable 1,168 1,106 Other receivables 2,168 1,726 Total receivables before expected credit losses 21,203 25,298 Provision for expected credit losses (11,092) (9,186) Ending Balance 10,111 16,112 Sales tax recoverable represents input tax credits on purchased goods or services. The Company assessed the carrying amount of trade receivables at September 30, 2025, for expected credit loss (“ECL”) and included an ECL of $11,092 (December 31, 2024; $9,186) against receivables. In the three and nine months ended September 30, 2025, the Company expensed $1,444 and $2,518, respectively, to ECL and bad debt expense on its condensed interim consolidated statement of loss and other comprehensive income (loss) (2024; $861 and $3,079, respectively). RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 15 The aging of the Company’s trade receivables and the corresponding ECL as at September 30, 2025, is as follows: Rate of expected credit loss: 0.4% 12.5% 17.7% 45.3% 62.1% 95.4% Total Aging classification Current 1-30 Days 31-60 Days 61-90 Days 91-120 Days 121+ Days $ $ $ $ $ $ $ Trade receivables 4,374 777 1,987 632 340 9,757 17,867 Expected credit losses – trade receivables (19) (97) (351) (286) (211) (9,308) (10,272) Net trade receivables 4,355 680 1,636 346 129 449 7,595 Other receivables 2,168 Expected Credit Losses on Other Receivables (821) Sales tax recoverable 1,169 Balance, September 30, 2025 10,111 The aging of the Company’s trade receivables and the corresponding ECL as at December 31, 2024, is as follows: Rate of expected credit loss: 1.0% 17.1% 9.4% 28.1% 25.0% 81.5% Total Aging classification Current 1-30 Days 31-60 Days 61-90 Days 91-120 Days 121+ Days $ $ $ $ $ $ $ Trade Receivables 6,492 3,399 593 1,804 771 9,407 22, --- 466 Expected Credit Losses (33) (141) (96) (215) (239) (7,587) (8,311) Net Trade Receivables 6,459 3,258 497 1,589 532 1,820 14,155 Other receivables 1,726 Sales tax recoverable 1,106 Expected credit losses – other receivables (679) Provision for credit disputes (196) Balance, December 31, 2024 16,112 The Company does not include sales tax recoverable within its ECL calculations as management deems this as fully collectible as of the date of these Financial Statements. 10. NOTES RECEIVABLE Continuity of the outstanding notes receivable owed to the Company as at September 30, 2025, is as follows: Balance 24-Dec-31 Additions Accrued Interest Interest Payments Principal Payments FX (Gain)/Loss Balance 25-Sep 30 $ $ $ $ $ $ $ Battlecreek Note - 314 - - - - 314 OPRC Note 3,000 - 120 (120) - - 3,000 PD Note 12,093 15,255 2,487 (36) (3,424) (337) 26,038 KMI Note 743 595 75 (75) (193) (29) 1,116 Total 15,836 16,164 2,682 (231) (3,617) (366) 30,468 Short-term 11,397 27,306 Long-term 4,439 3,162 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 16 Continuity of the outstanding notes receivable owed to the Company as at December 31, 2024, is as follows: Balance 31-Jan-24 Additions Accrued interest Accreted Interest Interest Payments Principal Payments Acquisitions FX (Gain)/Loss Balance 31-Dec-24 $ $ $ $ $ $ $ $ $ AH Note 16,778 - 117 59 - - (16,954) - - AH DIP Note 7,927 7,330 33 - - - (15,290) - - OPRC Note - 3,000 149 - (149) - - - 3,000 PD Note - 10,973 805 - - (149) - 464 12,093 KMI Note - 724 19 - - - - - 743 Total 24,705 22,027 1,123 59 (149) (149) (32,244) 464 15,836 Short-term 24,705 11,397 Long-term - 4,439 On September 17, 2025, the Company entered into a land contract for the sale of commercial real estate properties located in Battle Creek, Michigan. The total purchase price was $240, of which $14 was received at execution, resulting in a note receivable balance of $226 (the “Battlecreek Note. The note is non-interest-bearing, with monthly principal payments of $10 commencing October 17, 2025. The note matures on September 17, 2027, at which time any remaining balance becomes due. The receivable is secured by the underlying real property, with a warranty deed held in escrow by a third-party agent pending full and final repayment of the note receivable. The note may be prepaid without penalty. The Company retains legal title to the properties until full satisfaction of all amounts owing under the agreement. For terms of the Company’s notes receivable issued in periods prior to December 31, 2024, refer to the Company’s most recently filed audited consolidated financial statements for the period ended December 31, 2024, found on Sedar+. 11. PREPAID EXPENSES As at September 30, 2025, and December 31, 2024, prepaid expenses are comprised of the following amounts: As at 30-Sep-25 As at 31-Dec-24 $ $ Prepaid operating licenses 1,053 1,741 Prepaid taxes 92 4 Prepaid dues and subscriptions 3 129 Other prepaid fees 387 119 Total prepaid expenses 1,535 1,993 Prepaid operating licenses include licenses held by the Company’s various subsidiaries that allow for the legal conduct of cultivation, processing, distribution, and medical and adult-use retail sales by these entities. These licenses are regulated by the respective authorities in each state or prov --- ince across the United States and Canada. 12. DEPOSITS As at September 30, 2025, and December 31, 2024, the Company had the following deposits: As at 30-Sep-25 As at 31-Dec-24 $ $ Vendor deposits 4,758 10,202 Security deposits 382 333 Other deposits 345 651 Total deposits 5,485 11,186 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 17 Substantially all of the vendor deposits are comprised of advances to arm’s length vendors for crop commitments for cannabis biomass. Under the agreed upon terms of the crop commitment, the vendor must maintain select product parameters for the harvest as defined by the Company. As at September 30, 2025, select vendors have not fulfilled their remaining committed balances. The Company continues to work collaboratively with the arm’s length vendor towards settlement of their commitment under this contract. These deposits ensure supply chain security, stabilize prices, maintain operational continuity, and mitigate risks associated with supply disruptions. Concurrent with the closing of the Aleafia Acquisition (note 7), the Company also deposited $748 with a Canadian government institution to be held, in trust by the institution, on the account of Emblem Cannabis Corporation; one of the licensed Purchased Entities. 13. INVENTORY The Company's inventory as at September 30, 2025, and December 31, 2024, consists of the following: As at 30-Sep-25 As at 31-Dec-24 $ $ Cannabis and CBD derivative finished goods 2,204 5,376 Raw materials 12,402 5,493 Cannabis and CBD derivative work in process 31,541 38,965 Consumables and non-cannabis merchandise 64 443 Inventory provisions (1,639) (2,721) Total 44,572 47,556 During the period ended September 30, 2025, the total inventory included in cost of sales was $29,460 (2024; $53,136), which includes an allocation for salaries and wages amounting to $3,884 (2024; $5,701). $1,639 of provisions at September 30, 2025, relate to inventory held by entities acquired as part of the Aleafia Acquisition (December 31, 2024; $2,721) (note 7). 14. BIOLOGICAL ASSETS The Company's biological assets consist of 83,895 plants growing as at September 30, 2025 (2024; 6,879). The continuity of biological assets is as follows: As at 30-Sep-25 As at 31-Dec-24 $ $ Carrying amount, beginning of year 1,728 829 Acquired from Aleafia Acquisition (note 7) - 1,136 Capitalized cost 6,991 11,940 Unrealized changes in fair value of biological assets 500 856 Transferred to inventory (6,545) (13,092) Effects of foreign exchange (44) 59 Carrying value, end of year 2,630 1,728 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 18 Sensitivity Analysis Significant unobservable assumptions used in the valuation of biological assets, including the sensitivities on changes in these assumptions and their effect on the fair value of biological assets, are as follows: For the period ended For the period ended 30-Sep-25 31-Dec-24 Weighted average assumption 10% Change of inputs Effect on Biological Asset balance Weighted average assumption 10% Change of inputs Effect on Biological Asset balance Selling price ($/gram) $2.50 $2.75 $1,15 --- 1 $2.90 $3.18 $7,240 Yield by plant (grams) 68 75 $1,113 359 395 $6,490 Post-harvest costs ($/gram) $1.20 $1.32 $1,167 $1.11 $1.22 $5,017 15. ASSETS & LIABILITIES HELD FOR SALE Assets and liabilities held by the Company’s discontinued operations as outlined in note 3 (the “Discontinued Operations”), have been included in assets held for sale and liabilities held for sale on the statement of financial position. Pharmaco Inc. (“Pharmaco”), a wholly owned subsidiary of the Company, operated licensed medical and adult-use retail outlets and conducted limited cultivation operations in Michigan since its acquisition by the Company on February 7, 2022. During the year ended December 31, 2024, management determined that Pharmaco’s operations no longer aligned with the Company’s core business objectives. On December 26, 2024, following defaults under a senior secured loan agreement, the senior secured lender, Royal Group Resources, Ltd. (“RGR”)1 submitted a Receivership Order to the Circuit Court in Pontiac, Michigan, requesting the appointment of a receiver to oversee the sale of all of Pharmaco’s assets. The court approved the Receivership Order, authorizing the Receiver to manage and/or divest Pharmaco’s assets, with the senior secured lender retaining its senior lien position and entitlement to proceeds from any sale. The initiation of the receivership proceedings led to the classification of Pharmaco’s assets and liabilities as a disposal group under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Revenue and expenses for the fiscal period ended December 31, 2024, and its restated 2023 comparative period, related to the Pharmaco operations have been eliminated from the Company’s continuing operations and are shown as discontinued operations (note 32) in the consolidated statement of profit or loss. On March 5, 2025, the Company's wholly-owned subsidiary, Red White & Bloom Michigan (2024), Inc., was confirmed by the court as the successful bidder for select tangible assets of Pharmaco through a court-supervised receivership process. The court-approved purchase price was US$8,850 (C$12,722), subject to an appeal period, mandated by the appointed receiver, permitting objections for consideration by the court from unsecured creditors. The court's approval became final on March 28, 2025, following expiry of the aforementioned appeal period during which no creditor objections were filed, thereby confirming the validity and enforceability of the asset purchase agreement. On March 29, 2025, RGR executed a Release and Discharge Agreement with Pharmaco whereby RGR agreed to terminate the RGR Credit Facility (note 22), release Pharmaco and its affiliated parties from all repayment obligations and discharge all related security 1 Related party (note 28) RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 19 interests. In consideration for this release and discharge, RGR accepted the US$8,850 in proceeds from the court-approved asset sale as settlement in full. Upon execution of the discharge agreement, the US$8,850 purchase price owed by Red White & Bloom Michigan (2024), Inc., the successful court approved bidder, became payable directly to RGR for settlement of the RGR Credit Facility. The Company recognized a gain on debt settlement of US --- $6,804 (C$9,770) in discontinued operations (note 32), representing the excess of the facility's carrying value over the settlement amount. Amounts owing to RGR were settled by the Company on April 30, 2025. Assets acquired by Red White & Bloom Michigan (2024), Inc. remain in property, plant and equipment for sale. The carrying amounts of assets and liabilities held by the Company’s Discontinued Operations as at September 30, 2025, and December 31, 2024, are as follows: As at 30-Sep-25 As at 31-Dec-24 $ $ Current assets Accounts receivable - 4 Deposits - 42 Lease receivables 75 1,617 Non-current assets Property, plant and equipment, net 10,555 11,529 Assets classified as held for sale 10,630 13,192 Current liabilities Accounts payable and accrued liabilities 6,027 8,358 Credit facility - 21,851 Promissory notes 785 798 Tax payables 7,699 15,192 Liabilities classified as held for sale 14,511 46,199 During the period ended December 31, 2024, the Company recognized an impairment loss of $141 on a property, plant and equipment related to Discontinued Operations. These impairments stem from a re-assessment of the recoverable value of the acquired operations’ property, plant and equipment. The balance of carrying value of property, plant and equipment, represents management’s best estimate of the aforementioned assets’ value in use as of September 30, 2025, and December 31, 2024. <<< Remainder of page intentionally left blank >>> RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares and per share amounts) Page | 20 16. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as at September 30, 2025, and December 31, 2024 consists of the following: Land Land Improvements Building Building Improvements Leasehold Improvements Vehicles Furniture & Fixtures Machinery & Equipment Computer Hardware Construction In Progress Total $ $ $ $ $ $ $ $ $ $ $ Cost Balance, December 31, 2023 restated 651 1,197 7,482 - 6,453 16 477 11,706 - 2,056 30,038 Additions - - 1,829 175 78 180 101 675 4 2,456 5,498 Additions through business combinations (note 7) 6,491 - 9,947 4,161 - - 87 605 95 - 21,386 Disposals - - - - (110) (2) (67) (634) - (1,212) (2,025) Foreign currency movement 57 105 (1,170) (157) 1,914 10 42 (59) (4) 88 826 Balance, December 31, 2024 7,199 1,302 18,088 4,179 8,335 204 640 12,293 95 3,388 55,723 Additions - - - - 292 - 20 251 - 1,187 1,750 Foreign currency movement (23) (42) (266) 53 950 (7) (156) (261) - (1,353) (1,105) Balance, September 30, 2025 7,176 1,260 17,822 4,232 9,577 197 504 12,283 95 3,222 56,368 Accumulated depreciation Balance, December 31, 2023 restated - 21 631 - 2,402 9 197 3,745 - - 7,005 Depreciation this period - 14 724 434 1,304 17 96 1,953 34 - 4,576 Disposals - - (528) (116) (13) (1) - (273) (3) - (934) Foreign currency movement - 3 569 100 965 2 21 (230) 2 - 1,432 Balance, December 31, 2024 - 38 1,396 418 4,658 27 314 5,195 33 - 12,079 Depreciation this period - 11 519 303 968 30 56 1,483 24 - 3,394 Foreign currency movement - (2) (32) 7 (156) (2) (22) (170) - - (377) Balance, September 30, 2025 - 47 1,883 728 5,470 55 348 6,508 57 - 15,096 Net book value Balance, December 31, 2024 7,199 1,264 16,692 3,761 3,677 177 326 7,098 62 3,388 43,644 Balance, September 30, 2025 7,176 1,213 15,939 3,504 4,107 142 156 5,775 38 3,222 41,272 During the period ended --- December 31, 2024, $21,386 in property, plant and equipment was acquired by the Company as a result of the Aleafia Acquisition (note 7). The Company capitalized $2,743 in depreciation expense to inventory within the period ended September 30, 2025 (December 31, 2024; $3,408). RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares and per share amounts) Page | 21 17. INTANGIBLE ASSETS A continuity of the intangible assets for September 30, 2025, and December 31, 2024, is as follows: Brand Licenses Total $ $ $ Costs Balance, January 1, 2024 34,123 52,600 86,723 Additions (note 7) 1,679 - 1,679 Aleafia Acquisition (note 7) 447 4,234 4,681 Foreign exchange movement 3,001 4,625 7,626 Balance, December 31, 2024 39,250 61,459 100,709 Foreign exchange movement (1,207) (1,861) (3,069) Balance, September 30, 2025 38,042 59,598 97,640 As part of the Aleafia Acquisition (note 7), the Company, through its acquisition of the common shares of select legal entities, acquired all of the operating licenses issued by regulatory authorities in Canada to the acquired group of companies. On acquisition, the fair value of these operating licenses were included in the intangible assets. Intangible asset impairments The Company assesses intangible assets for impairment at each annual reporting period by evaluating events or circumstances that may indicate impairment, considering external and internal factors including financial performance. During the periods ended September 30, 2025, and December 31, 2024, no impairment charges were recognized against intangible assets in continuing operations. The Company continues to monitor for impairment indicators that may require interim assessments. 18. RIGHT OF USE ASSETS AND LEASE OBLIGATIONS A continuity of the Company’s right-of-use assets is as follows: As at 30-Sep-25 As at 31-Dec-24 $ $ Opening balance 17,976 17,191 Additions from Aleafia acquisition (note 7) - 121 Accumulated depreciation from Aleafia acquisition (note 7) - (85) Additions during the period 2,468 3,675 Depreciation for the period (1,280) (1,576) Dispositions - ROU Asset (76) (3,447) Dispositions - ROU Accumulated Depreciation 76 936 Gain on Disposals 390 Effects of foreign exchange (371) 771 Balance, September 30, 2025 18,793 17,976 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 22 A continuity of the Company’s lease obligations related to right-of-use assets is as follows: As at 30-Sep-25 As at 31-Dec-24 $ $ Opening balance 22,728 20,503 Additions/(Disposals) 1,921 415 Interest accretion 2,039 2,577 Interest payments (2,039) (2,824) Principal payments (256) (149) Ending balance 24,393 20,522 Effects of foreign exchange (312) 2,207 Less: Short-term lease obligations (945) (701) Long-term lease obligation 23,136 22,028 Future minimum lease payments (principal and interest) are as follows: As at 30-Sep-25 $ 2025 832 2026 3,397 2027 3,431 2028 3,468 2029 3,689 Thereafter 32,373 Total minimum lease payments 47,190 Present value of minimum lease payments 15,810 Effect of discounting 7,299 Current portion lease obligations 945 Long-term lease obligations 23,136 19. MINORITY INTEREST EQUITY INVE --- STMENT As part of the Aleafia Acquisition (note 7), the Company acquired an 8.94% equity interest in One Plant (Retail) Corp. ("OPRC"), a privately held cannabis retail operator in Canada. The Company does not exercise significant influence over OPRC and has elected to measure this investment at fair value through profit or loss in accordance with IFRS 9. The Company assesses the carrying value of this investment annually. For the year ended December 31, 2024, the Company recorded a $641 fair value gain on this investment. Below is a continuity of the Company’s investment in OPRC: $ Balance, January 1, 2024 - Equity investment as a result of business combinations (note 7) 1,837 Gain on fair value adjustment 642 Balance, December 31, 2024 2,479 Balance, September 30, 2025 2,479 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 23 20. GOODWILL Goodwill as of September 30, 2025, and December 31, 2024, was comprised of the following: $ Balance, January 1, 2024 12,668 Foreign exchange movement 1,114 Balance, December 31, 2024 13,782 Foreign exchange movement (448) Balance, September 30, 2025 13,334 Balances in goodwill as at September 30, 2025, and December 31, 2024, is associated with the Company’s Retail segment. Goodwill impairment The Company assesses goodwill for impairment on an annual basis, by comparing the carrying value of each cash-generating unit ("CGU") to its recoverable amount, being the greater of fair value less costs to sell and value in use. As at September 30, 2025, and December 31, 2024, no material impairment indicators were present, and no impairment charges were recognized. Key assumptions in the 2024 annual impairment assessment included the applicable discount rate and revenue growth rates. Material changes to these assumptions could impact estimated fair value and result in future impairment charges. The Company continues to monitor impairment indicators that may require interim assessments. 21. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The Company had the following accounts payable and accrued liabilities at September 30, 2025, and December 31, 2024: As at 30-Sep-25 As at 31-Dec-24 $ $ Trade payables 8,031 14,761 Accrued liabilities and other 5,185 5,857 Sales and excise tax payable 3,726 3,335 Customer deposits 557 121 Total 17,499 24,074 During the period ended September 30, 2025, the Company had three significant vendors representing 11%, 13% and 18% of its total trade payables. During the year ended December 31, 2024, the Company had two significant vendors representing 10% and 20% of its total trade payables. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 24 22. DEBT AND FINANCE EXPENSES The Company incurred the below finance expenses for the three and nine months ended September 30, 2025, and 2024. 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 $ $ $ $ 13 Interest on notes payable 9,474 6,869 4,430 18,597 13 Interest on convertible debt 1,407 2,115 26,453 5,214 13 Interest on credit facilities - 629 - 1,818 Other finance fees 36 266 14 539 13 Accreted interest on notes --- payable - 82 - 248 13 Accreted interest on convertible debt - 311 - 2,641 13 (Gain) loss on valuation of financial instruments - (626) - (691) 13 (Gain) loss on debt extinguishment - - - 100 Total finance expense 10,917 9,646 30,897 28,466 A. NOTES PAYABLE On February 1, 2025, the Company successfully concluded negotiations with various lenders, including related party lenders, to renew multiple previously issued notes payable and convertible debentures that had matured during the fiscal year ended December 31, 2024 (the “Matured Debt”). Originally scheduled to mature on September 12, 2024, the Matured Debt was formally amended on February 1, 2025, with the amendments effective as of September 15, 2024. The renewed debt includes revised terms that align with the Company's growth strategy, allowing management to maintain adequate cash flow while continuing to pursue strategic expansion initiatives in active markets in Canada and the United States. Terms for notes payable held by the Company as at September 30, 2025, is as follows: Note Purpose: Note/ Amended value: Note currency: Execution date: Maturity date: Interest rate per annum: 14BJSD Note Debt restructure 3,065 CAD 1-Feb-25 12-Sep-27 12% 15CPIL Note Debt restructure 20,644 CAD 1-Feb-25 12-Sep-27 12% 15DCIL Note Debt restructure 7,120 CAD 1-Feb-25 12-Sep-27 12% ELL Note Capital 5,750 CAD 5-Jun-24 1-Jul-29 6.72% 15RGR CAD Grid Note Debt restructure 59,022 CAD 1-Feb-25 12-Sep-27 12% MV Ops Note Retail construction 1,130 USD 4-Jun-24 4-Dec-25 12% Oakshire Note Debt settlement 3,000 USD 19-Jul-24 On Demand 0% 15RGR Note A Debt restructure 33,418 USD 1-Feb-25 12-Sep-27 12% 15RGR Note C Debt restructure 21,742 USD 29-Nov-24 30-Nov-26 12% 15RGR USD Grid Note Operations & acquisitions 53,779 USD 1-Feb-25 12-Sep-27 12% 15SDIL Note A Debt restructure 6,901 USD 1-Feb-25 12-Sep-27 12% 15SDIL Note B Debt restructure 7,120 USD 1-Feb-25 12-Sep-27 12% SIL Note Debt restructure 347 USD 1-Feb-25 12-Sep-27 12% TAII Note Debt restructure 3,387 USD 1-Feb-25 12-Sep-27 12% 13 Includes related party debt (note 28) 14 Classified as a related party (refer to note 28) RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 25 A continuity of the Company’s notes payable as at September 30, 2025 is as follows: Balance, December 31, 2024 Additions Amendments Accrued interest Interest Payments Principal Payments (Gain)/Loss on Amendments FX (Gain)/Loss Balance, September 30, 2025 $ $ $ $ $ $ $ $ $ Notes Payable ELL Note 5,744 - - 282 (141) (213) - - 5,672 MV Ops Note 1,638 - - 149 - - - (50) 1,737 Oakshire Note 1,665 - - - - (435) - (37) 1,193 RGR Note C 33,541 - - 3,088 - - - (1,104) 35,525 BJSD Note 3,213 - - 286 - - (181) - 3,318 CPIL Note - - 20,644 1,710 - - - - 22,354 RGR Note A 52,038 - - 4,383 - - (4,503) (1,542) 50,376 RGR CAD Grid Note 56,946 4,000 - 5,588 - - - - 66,534 RGR USD Grid Note 75,902 28,067 - 7,970 - (774) - (2,390) 108,775 SDIL Note A 10,091 - - 864 - - (699) (306) 9,950 SIL Note 521 - - 45 - - (27) (16) 523 TAII Note 5,277 - - 444 (65) - (395) (157) 5,104 DCIL Note - - 10,312 822 - - - (402) 10,732 SDIL Note B - - 10,312 822 - - - (402) 10,732 Total Notes Payable 246,576 32,067 41,268 26,453 (206) (1,422) (5,805) (6,406) 332,525 Short-term notes payable 207,419 3,058 Long-term notes payable 39,157 329 --- ,467 Original terms of the Matured Debt can be found in note 22 of the Company’s Audited Consolidated Financial Statements for the year ended December 31, 2024, published on Sedar+. During the period ended September 30, 2025, and December 31, 2024, the Company satisfied all financial covenants associated with its issued debt. B. CONVERTIBLE DEBT Below are the terms of each of the convertible notes held by the Company as at September 30, 2025. Convertible Note Purpose Note/Amended Value Note currency Execution Date Maturity Date Interest Rate per annum AB Convertible Note Florida acquisition 781 USD 22-Apr-21 22-Apr-24 12.00% FCC Convertible Note Florida acquisition 1,563 USD 22-Apr-21 22-Apr-24 12.00% 15IBGL Convertible Note Florida acquisition 1,938 USD 31-Dec-24 30-Nov-26 12.00% VMOS Convertible Note Florida acquisition 1,356 USD 31-Dec-24 30-Nov-26 12.00% MV Convertible Note Florida acquisition 25,340 USD 29-Nov-24 30-Nov-26 12.00% 16DICL Convertible Note Debt restructure - USD 4-Oct-21 12-Sep-24 8.00% iiSDIL Convertible Note Debt restructure - USD 4-Oct-21 12-Sep-24 8.00% iiCPIL Convertible Note Debt restructure - CAD 15-Sep-22 12-Sep-24 8.00% As at the date of these Financial Statements, the Company remained actively engaged in negotiations to renew the AB and FCC Convertible debt that matured on April 22, 2024. As such, the lenders have not provided formal notification of default to the Company despite the expiration of the original maturity dates. The principal renewal terms of the debt instruments have been acknowledged as acceptable by the lenders with current discussions solely focused on collateral arrangements. Given that the original maturity dates 15 Related party convertible note (note 28) 16 Convertible note was amended into a note payable (note 22a), related party (note 28) RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 26 have expired, these loan obligations continue to be classified as short-term debt in the Company's Consolidated Statement of Financial Position. Details of the transactions are included in the convertible debenture continuity schedule above. A continuity of the Company’s convertible debt as at September 30, 2025 is as follows: Balance, December 31, 2024 Amendments Accrued interest FX (Gain)/Loss Balance, September 30, 2025 $ $ $ $ $ Convertible Debt AB Convertible Note 1,487 - 98 (49) 1,536 FCC Convertible Note 2,974 - 197 (98) 3,073 IBGL Convertible Note 2,974 - 197 (98) 3,073 VMOS Convertible Note 2,082 - 138 (68) 2,152 MV Convertible Note 39,015 - 3,392 (1,282) 41,125 DICL Convertible Note 10,143 (10,312) 102 67 - SDIL Convertible Note 10,143 (10,312) 102 67 - CPIL Convertible Note 20,440 (20,644) 204 - - Total Convertible Debt 89,258 (41,268) 4,430 (1,461) 50,959 Short-term convertible notes 45,187 4,610 Long-term convertible notes 44,071 46,349 Original terms of each of the above convertible notes, and details relating to the comparative year ending December 31, 2024, can be found in note 22 of the Company’s 2024 Audited Financial Statements published on Sedar+. During the period ended September 30, 2025, and December 31, 2024, the Company satisfied all financial covenants associated with its issued debt. C. DERIVATIVE LIABILITIES RELATING TO CONVERTIBLE DEBENTURES The Company assesses its convertible --- debentures each reporting period to determine if a derivative liability exists in accordance with IFRS 9 Financial Instruments and IAS 32. When a derivative liability is identified, the Company values its derivative liabilities to fair market value each period, with fair market value gains and losses recorded to the consolidated statement of income (loss) and comprehensive income (loss). As at September 30, 2025, and December 31, 2024, there was no evidence of a derivative liability resulting from the Company's convertible debentures. D. CREDIT FACILITY On June 14, 2024, a previously held credit facility between the Company and PWC was terminated as a result of a loan purchase agreement (the “RGR-BFI Loan Purchase Agreement”) between Royal Group Resources, Ltd. (“RGR”)17, and existing lender related to the Company, and PWC. As a result of the RGR-BFI Purchase Agreement, the Company recovered $45 in amounts owing to PWC for the amendment fee resulting from the January 30, 2023, extension. There were no material changes to the Credit Facility as a result of the RGR-BFI Loan Purchase Agreement. On December 26, 2024, following defaults under Credit Facility, RGR submitted a Receivership Order to the Circuit Court in Pontiac, Michigan, requesting the appointment of a receiver to oversee the sale of all of Pharmaco’s assets. The court approved the Receivership Order, authorizing the Receiver to manage and/or divest Pharmaco’s assets, with RGR retaining its senior lien position and entitlement to proceeds from any sale or credit bid (note 15, 32). For additional details on the Pharmaco Receivership, refer to the Company’s most recently filed audited financial statements for the period ended December 31, 2024, found on Sedar+. 17 Related party (note 28) RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 27 E. DEBT SETTLEMENTS On July 19, 2024, the Company entered into a settlement agreement between with Oakshire Holdings Inc. and its affiliates (the “Oakshire Parties”) to resolve a series of financial obligations and claims, including the extinguishment of $1,123 due under the Due to Oakshire Note (the “Oakshire Settlement Agreement”). Under the terms of the agreement, the Company will pay the Oakshire Parties $3,357 in scheduled installments. The obligations under the Oakshire Settlement Agreement are secured by tangible assets held by the Company, in concert with the Oakshire Note (note 22). Payments made by the Company in connection with the Oakshire Note amounted to $3,005 (see Note 22 a above). F. OFF BALANCE SHEET ARRANGEMENTS The Company did not enter any off-balance sheet arrangements during period ending September 30, 2025 (December 31, 2024; nil). 23. SHARE CAPITAL AND RESERVES A. AUTHORIZED As at September 30, 2025, the authorized shares were as follows: • Unlimited number of common shares without par value with special rights and restrictions. • An unlimited number of preferred shares without par value with special rights and restrictions, which are non-voting except in specific circumstances related to dividend defaults. B. ISSUED AND OUTSTANDING Changes in share capital for the period ended September 30, 2025, and December 31, 2024, and the balances outstanding is as follows: Common Shares Common Shares Share Capital # $ Balance, December --- 31, 2024 470,221,901 342,111 Balance, September 30, 2025 470,221,901 342,111 Share Capital transactions the during the period ended September 30, 2025: No share capital transactions were undertaken by the Company during the nine months ended September 30, 2025. Share Capital transactions the during the period ended December 31, 2024: On June 14, 2024, all authorized Series 1 Convertible Preferred shares and Series II Convertible Preferred shares outstanding, of which none were allotted or issued, were eliminated by approved resolution. On the same date, the Company authorized a new class of preferred shares (the “Preferred Shares”). The Preferred Shares are unlimited, issuable in series, without par value, and have special rights and restrictions, under directors’ discretion, which impact (1) dividend entitlements, (2) redemption terms and (3) conversion rights provided that no other preferred shares are issued and outstanding. In the event of liquidation, Preferred shareholders have priority in receiving paid-in capital plus any accrued dividends before any distribution to common shareholders. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 28 The Preferred shareholders do not have voting rights or the right to attend general meetings, except in specific circumstances related to dividend defaults. On June 14, 2024, the common shares were concurrently amended to include the following special rights and restrictions: in the event of the Company’s liquidation or dissolution, common shareholders are entitled to share in the remaining assets of the Company after the claims of the Preferred shareholders and any other classes with priority have been satisfied. C. STOCK OPTIONS The Company established a 20% rolling stock option plan (the “Option Plan”) to provide the Company with a share-related mechanism to attract, retain and motivate directors, employees, and consultants, to reward such persons with the grant of options under the Option Plan from time to time for their contributions toward the long-term goals of the Company and to enable and encourage such persons to acquire shares as long-term investments. Under the Option Plan, the Board of Directors may from time to time, in its discretion, grant stock options to directors, officers, employees and consultants of the Company. Pursuant to the Option Plan, the Company may issue options for such period and exercise price as may be determined by the Board of Directors, and in any case not exceeding ten (10) years from the date of grant. The minimum exercise price of an option granted under the Option Plan must not be less than the closing price of the common shares on the date preceding the option grant date. In any 12-month period, and in relation to the number of issued and outstanding common shares of the Company, the total number of options awarded cannot exceed: • 5% to any one individual as at the grant date • 2% to any one Consultant as of the grant date • 2% to employees performing investor relations activities for the Company The Company uses the Black-Scholes model to establish the fair value of the options on the date of grant by applying the assumptions below. The fair value of the option is expensed over the option’s vesting period. The following assumptions were used by the Company t --- o value the stock options outstanding as at September 30, 2025: Grant Date Vesting Start Date Expiry Date Share price on Date of Grant Exercise Price Volatility Risk Free Rate Dividends $ $ % % $ 1-Oct-20 1-Oct-20 1-Oct-25 0.54 0.65 105.27% 0.45% $nil 1-Oct-20 1-Jan-21 1-Oct-25 0.54 0.65 105.27% 0.45% $nil 12-Oct-20 12-Oct-20 12-Oct-25 0.60 0.65 105.27% 0.45% $nil 18-Nov-20 18-Nov-20 18-Nov-25 0.67 0.67 105.27% 0.45% $nil 3-Dec-20 3-Dec-20 3-Dec-25 0.69 0.75 105.27% 0.45% $nil 6-Jul-21 6-Jul-21 6-Jul-25 1.10 1.10 105.27% 1.23% $nil 12-Nov-21 21-Nov-21 26-Nov-26 0.63 0.63 88.00% 1.23% $nil 12-Nov-21 22-Jan-22 26-Nov-26 0.63 0.63 88.00% 1.23% $nil 12-Nov-21 8-Nov-21 12-Nov-26 0.63 0.63 88.00% 1.23% $nil 12-Nov-21 1-Jul-22 12-Nov-26 0.63 0.63 88.00% 1.23% $nil 12-Nov-21 20-Sep-22 12-Nov-26 0.63 0.63 88.00% 1.23% $nil 12-Nov-21 4-Oct-22 12-Nov-26 0.63 0.63 88.00% 1.23% $nil 7-Oct-22 7-Jan-23 7-Oct-27 0.15 0.14 94.35% 3.98% $nil 7-Oct-22 7-Jan-23 7-Oct-27 0.15 0.20 94.35% 3.98% $nil 7-Oct-22 7-Jan-23 7-Oct-27 0.15 0.50 94.35% 3.98% $nil 15-Mar-23 15-Mar-24 15-Mar-33 0.10 0.10 94.35% 3.98% $nil 3-Oct-24 3-Oct-25 3-Oct-29 0.07 0.10 150.63% 3.28% $nil RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 29 Volatility was estimated by using the historical volatility of the Company. The expected life in years represents the period of time that options granted are expected to be outstanding. The risk-free rate was based on the rate prescribed for Canada government bonds as of the date of the Financial Statements with a remaining term equal to the expected life of the options. The number of stock options and weighted average exercise prices as at September 30, 2025, and December 31, 2024, are as follows: Options Weighted average exercise price # $ Balance Outstanding, January 1, 2024 16,960,931 0.80 Issued 1,925,000 0.12 Expired (3,197,002) 2.70 Forfeited (102,500) 0.21 Balance Outstanding, December 31, 2024 15,586,429 0.33 Expired (586,429) 1.00 Balance Outstanding, September 30, 2025 15,000,000 0.31 Exercisable Exercisable as at September 30, 2025 13,276,044 0.33 Exercisable as at December 31, 2024 12,828,097 0.38 Stock Options are measured at fair value at the date of grant and are expensed to share based compensation over the option’s vesting period. For the three and nine months ended September 30, 2025, the Company had share-based compensation expenses relating to stock options amounting to $22 and $65, respectively (2024; $59 and $165, respectively). The following reflects remaining contractual life for outstanding and exercisable options as at September 30, 2025: Outstanding Exercisable Expiry date Exercise price Options Remaining contractual life Options Remaining contractual life $ # (years) # (years) 1-Oct-25 0.65 3,400,000 0.00 3,400,000 0.00 12-Oct-25 0.65 50,000 0.03 50,000 0.03 18-Nov-25 0.67 150,000 0.13 150,000 0.13 3-Dec-25 0.75 800,000 0.18 800,000 0.18 12-Nov-26 0.63 400,000 1.12 400,000 1.12 26-Nov-26 0.63 75,000 1.16 75,000 1.16 7-Oct-27 0.14 6,500,000 2.02 6,500,000 2.02 7-Oct-27 0.20 200,000 2.02 200,000 2.02 7-Oct-27 0.50 250,000 2.02 250,000 2.02 3-Oct-29 0.10 1,925,000 4.01 721,875 4.01 15-Mar-33 0.10 1,250,000 7.46 729,169 7.46 15,000,000 2.12 13,276,044 1.74 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATE --- D FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 30 EARNINGS (LOSS) PER SHARE Earnings/loss per share for the three and nine months ended September 30, 2025, and 2024 is as follows: 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9months ended 30-Sep-24 Outstanding common shares 470,221,901 474,738,811 470,221,901 469,521,901 Earnings (loss) from continuing operations attributable to RWB shares ($) (12,493) (5,300) (44,283) (16,769) Earnings/loss per share, basic and diluted ($) (0.03) (0.01) (0.09) (0.04) Earnings (loss) from discontinued operations attributable to RWB shares ($) (0.01) 0.01 0.04 0.00 Total earnings (loss) per share, basic and diluted (0.04) (0.00) (0.05) (0.04) Weighted average number of shares outstanding, basic and dilutive 470,221,901 474,738,811 470,221,901 469,521,901 No stock options have been included in the computation of diluted loss per share as their effect would be anti-dilutive. 24. REVENUES The Company generates revenue through three distinct channels: Retail, Distribution and Licensing. Revenues by channel for the three and nine months ended September 30, 2025, and 2024 is as follows: 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 $ $ $ $ Distribution 11,469 18,083 35,760 52,132 Licensing 718 162 1,763 431 Retail 4,596 3,045 14,858 9,018 Total revenue 16,783 21,290 52,381 61,581 Revenue as a percentage of total sales for the three and nine months ended September 30, 2025, and 2024 is as follows: 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 % % % % Distribution 69% 85% 69% 85% Licensing 4% 1% 3% 1% Retail 27% 14% 28% 14% Total revenue 100% 100% 100% 100% During the three and nine months ended September 30, 2025, and 2024, the Company did not have any contracts where the period between the transfer of the promised goods to the customer and payment by the customer exceeds one year. As a result, the Company has not adjusted any of the transaction prices for the time value of money. During the period ended September 30, 2025, the Company had two significant customers representing 24% and 12% of total revenues earned by the Company (2024; no significant customers). RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 31 25. GENERAL AND ADMINISTRATIVE EXPENSES The Company’s general and administrative expenses for the three and nine months ended September 30, 2025, and 2024 were as follows: 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 $ $ $ $ Salaries and wages 3,260 4,514 10,348 12,880 Facilities expense 1,281 58 1,949 782 Professional fees 1,980 1,522 4,804 4,333 Office and administrative fees 216 704 1,489 1,565 Travel expense 78 122 301 351 Licenses and permits 742 69 1,136 184 Insurance 475 512 1,303 1,262 Penalty and late fees 80 410 137 509 Total general and administrative expenses 8,112 7,911 21,467 21,866 26. NON-CONTROLLING INTERESTS RWB FLORIDA, LLC AND RED WHITE & BLOOM, FLORIDA, INC. RWB Florida, LLC (“Florida LLC") is a member-managed limited liability company that serves as the sole shareholder of R --- ed White & Bloom Florida Inc. (“Florida Inc”). The Florida Inc. is responsible for all management, operational, and day-to-day commercial activities conducted by the Company in the state of Florida. Membership Structure The LLC has issued two classes of membership interests: • Class A: Held exclusively by RWB • Class B: RWB maintains a 54% controlling interest, with the remaining 46% held by multiple minority members Non-Controlling Interests Several Class B members collectively own 23% of the issued and outstanding Class B membership interests, representing the non- controlling interest in both Florida LLC and Florida Inc. No individual non-controlling Class B member holds an ownership stake exceeding 4.99% of total issued and outstanding interests. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 32 The following table presents the summarized financial position before intragroup eliminations for non-wholly owned subsidiaries at three and nine months ended September 30, 2025, and December 31, 2024: As at 30-Sep-25 As at 30-Sep-24 $ $ Assets Current 4,842 16,655 Non-current 188,466 95,737 Total assets 193,308 112,392 Liabilities Current 11,464 62,733 Non-current 113,980 31,938 Total liabilities 125,444 94,671 Net Assets 67,864 17,721 The following summarizes the financial results before intragroup eliminations for non-wholly owned subsidiaries for three and nine months ended September 30, 2025, and 2024: 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 Net Income (loss) (3,561) (3,938) (17,755) (16,146) Interests Controlling interests – 77% (2,748) (3,038) (13,700) (12,459) Non-controlling interests – 23% (813) (899) (4,055) (3,688) 27. RELATED PARTY TRANSACTIONS A. KEY MANAGEMENT Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of certain executive members of the Company’s Board of Directors and corporate officers. Remuneration attributed to key management personnel for the three and nine months ended September 30, 2025, and 2024, is as follows: 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 $ $ $ $ Management salaries, bonuses, and other benefits 46,418 304,490 512,792 913,207 Consulting fees by a company controlled by a director of the company 15,000 51,007 45,000 152,991 Share-based payments – officers 4,237 10,134 12,573 30,147 Share-based payments – directors - 21,752 - 64,784 Total 65 387 571 1,161 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 33 B. AMOUNTS DUE TO/FROM RELATED PARTIES • Included in accounts payable and accrued liabilities is $1,461 in management salaries, bonuses, and other benefits to be paid out in future periods (December 31, 2024; $1,092) • The CPIL Convertible Note represented an obligation to an entity affiliated with the Company's President. This note was originally issued with a two-year term, scheduled to mature on September 15, 2024, --- bearing interest at 8% per annum. Upon initial recognition, the Company valued the CPIL Convertible Note using the residual method, allocating $14,893 to long-term convertible debt liability and $2,107 to convertible debt reserve. The liability portion amortized over the two- year loan term at an effective interest rate of 16.43%. At maturity, due to the expiry of the embedded conversion rights, the Company transferred the convertible debt reserve to contributed surplus. The matured debt was formally amended on February 1, 2025, with the amendments retroactively effective as of September 15, 2024, transforming the CPIL Convertible Note into a note payable (the “CPIL Note”). The terms were amended to extend the maturity date to September 12, 2027, adjust and align the annual interest rate to 12%, defer principal and interest payments to the respective maturity dates, and remove convertible features. For details regarding outstanding amounts and terms, refer to note 22. • The VMOS Convertible Note represents an obligation to an entity affiliated with a member of the Company's Board of Directors. Originally scheduled to mature on April 22, 2024, the note was formally amended on December 31, 2024, with the amendment retroactively effective as of June 4, 2024. The amendment extended the maturity date to November 30, 2026, deferred the payment of interest and principal to the next maturity date, and increased the annual interest rate from 8% to 12%. Upon amendment, the Company reassessed the note's value using the Binomial lattice method based on the Cox-Ross-Rubinstein market model, resulting in no derivative liability. For complete details regarding outstanding amounts and terms of the VMOS Convertible Note, refer to note 22. • The Company has identified other close family members of key management personnel that currently represent lenders to the Company (note 22) during its ongoing review of related party disclosures in accordance with IFRS and Securities and Exchange Commission protocols. The list of family members is non exhaustive and does not preclude other family members from being considered as close family members. The reader is referred to section D and E below for a continuity schedule of notes payable and convertible debentures payable to the individuals or entities identified during the review. C. RELATED PARTY TRANSACTIONS Related party transactions during the nine months ended September 30, 2025 • On March 5, 2025, the Company’s wholly owned subsidiary, Red White & Bloom Michigan (2024), Inc., was confirmed by the presiding court as the successful bidder for the tangible assets of Pharmaco Inc. The approved purchase price for the assets was US$8,850 (C$12,722). Refer to note 15 for details of the transaction. • On March 29, 2025, a Release and Discharge Agreement was executed between RGR and Pharmaco Inc. under the terms of this agreement, RGR agreed to terminate the RGR Credit Facility. Refer to note 22 for details of the transaction. • Officers and Directors of the Company held an aggregate of 37,219,510 common shares and 6,450,000 stock options. As at September 30, 2025, 5,929,169 of these stock options are fully vested. • The Company expensed a nominal amount of stock-based compensation related to stock options held by directors and officers of the Company. • The ELL Note (note 22) is supported by a guarantee provided by DICL, a related party lender, which was subject to a fee payable to DICL by the Company. The fee was --- calculated based on a percentage of the principal of the ELL Note as is standard practice within capital markets for a transaction of this nature. • On February 1, 2025, the Company successfully concluded negotiations with various individuals or entities identified as close family members as interpreted above, to renew multiple previously issued notes payable and convertible debentures, originally scheduled to mature on September 12, 2024. These amendments were made retroactively effective as of RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 34 September 15, 2024. The amended related party notes include: (i) CAD$2,710,000 BJMDSD Note (renewed as the “BJSD Note”), (ii) USD$25,885,000 RGR Note (renewed as the “RGR Note A”), (iii) USD$6,349,000 SDIL Note (renewed as the “SDIL Note A”), (iv) USD RGR Grid Note, (v) CAD RGR Grid Note, (vi) CPIL Convertible Note (renewed as the “CPIL Note”), (vii) DICL Convertible Note (renewed as the “DICL Note”), and (viii) SDIL Convertible Note (renewed as the “SDIL Note B”). Each of these instruments was amended to extend the maturity date to September 12, 2027, standardize the annual interest rate to 12%, defer all principal and interest payments to maturity, and remove convertible features where applicable. Details of the terms are disclosed in note 22 of these Financial Statements. To review the previous terms of the aforementioned debts, the reader is referred to the Company’s most recently filed audited financial statements for the period ended December 31, 2024. For details on these amendments refer to note 22. Related party transactions during the year ended December 31, 2024 • Officers and Directors of the Company held an aggregate of 37,220 common shares and 6,450 stock options. As at December 31, 2024, 5,167 of these stock options were fully vested. • During the period, 22 stock options held by Directors of the Company expired. • The Company expensed $107 in stock-based compensation related to stock options held by directors and officers. • The ELL Note (note 22) is supported by a guarantee provided by DICL, a related party lender, which was subject to a fee payable to DICL by the Company. The fee was calculated based on a percentage of the principal of the ELL Note as is standard practice within capital markets. Refer to note 22 for details on the ELL Note. 28. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT A. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of other financial instruments, which include accounts receivable, accounts payable and accrued liabilities, notes receivable, and notes payable, approximate their carrying values due to the relatively short-term maturity of these instruments. The three levels of the fair value hierarchy are: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than quoted prices that are observable for the asset or liability, directly or indirectly; and • Level 3 – Inputs that are not based on observable market data. In determining the fair value of investments, Level 3 input includes subjective estimates in assessing indicators of impairment. B. CREDIT RISK Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. Financial instruments that are sub --- ject to such risk include cash and cash equivalents, accounts receivable and notes receivable. Accounts receivable are amounts due by customers purchasing through the Company’s distribution channel, who have exhibited a strong credit standing and continued good payment history with the Company. Notes receivable are amounts due from third party debtors (note 10). The Company limits its exposure to credit loss on cash and cash equivalents by placing its cash with reputable financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 35 As at September 30, 2025, the Company held an accounts receivable balance of $10,111 (2024; $16,112). Included in this balance is a provision for expected credit losses (“ECL”) in the amount of $11,093 (2024; $9,186). The reader is referred to note 9 for details relating to the Company’s accounts receivable and ECL provision for the period ended September 30, 2025, and 2024. As at September 30, 2025, the Company held a note receivable balance of $30,468 (2024: $15,836) (note 10). C. LIQUIDITY RISK Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages its liquidity risk by forecasting cash flows from operations and anticipated investing and financing activities. As at September 30, 2025, the Company had a cash and cash equivalents balance of $4,425 (2024; $7,285) available to apply against short-term business requirements and current liabilities of $61,875 (2024; $343,033), including short-term lease obligations (note 18), short term notes and convertible debentures (note 22), and income taxes payable and other current liabilities, noting that included in the current liabilities reported as of September 30, 2025 are short-term notes payable $3,058 (2024; $207,416) and short-term convertible debentures $4,610 (2024; $45,187). In addition, a total of $14,511 is included in Liabilities Held for Sale representing liabilities in discontinued operations (2024; $46,199). The Company also continues to pursue other means of debt or equity financing to further mitigate its liquidity risk in addition to seeking out opportunities to monetize captive or redundant tangible assets should they present themselves. Finally, the Company maintains a constant vigilance on proactively exploring and implementing ways to improve its cash flow through the prioritization of strategic operating initiatives with greater expected returns and targeting reductions in operating and administrative costs as feasible. D. INTEREST RATE RISK Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. Interest earned on cash is at nominal interest rates, and therefore the Company does not consider the interest rate risk for cash to be significant. As at September 30, 2025, and 2024, the interest rate on notes payable and convertible debentures are fixed based on the terms agreed to within the respective debt contracts. As such, the Company’s interest rate risk exposure is limited to the aforementioned interest rate terms within the aforementioned contracts. E. FOREIGN CURRENCY RISK The Company is exposed to --- foreign currency risk arising from exchange rate fluctuations and their volatility, primarily affecting the timing and valuation of accounts payable settlements. Management mitigates this risk through prompt creditor payments and active monitoring of currency market movements. Additional exposure stems from maintaining balances and conducting transactions in currencies different from the Company's functional currency. With operations in jurisdictions using the United States Dollar (USD) and US-based subsidiaries, the Company faces risks from: • Translation exposure when consolidating US subsidiary financial statements • Transaction exposure from intercompany loans, dividends, and cross-border transactions • Economic exposure affecting competitive positioning in US markets RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 36 For the three and nine months ended September 30, 2025, the Company incurred net loss and other comprehensive loss of $12,837, and $40,878, respectively (2024; $10,257 income, and $12,097 loss), including the impact of unrealized foreign exchange gains and losses on intercompany balances amounting to a$2,993 loss and a $4,978 gain for each period (2024; $2,292 gain and $11,504 gain). These unrealized foreign exchange losses arise from the translation of intercompany monetary balances denominated in foreign currencies between the Company's various subsidiaries with different functional currencies. Under IAS 21, The Effects of Changes in Foreign Exchange Rates, exchange differences arising on intercompany monetary items between entities with different functional currencies are recognized in profit or loss and are not eliminated on consolidation, as they represent genuine economic exposure to foreign currency fluctuations. Currently, the Company does not utilize derivative financial instruments or hedging strategies to manage these foreign currency risks, which may impact reported earnings and cash flows. F. CAPITAL RISK MANAGEMENT The Company monitors its capital structure and adjusts according to market conditions in an effort to continue to meet its financial and strategic objectives. The Company may manage its capital structure by restructuring existing debt, issue new debt or shares (common or preferred), or repurchasing issued and outstanding shares (common or preferred). The capital structure is reviewed by management and the board of directors on an ongoing basis. The Company manages capital through its financial and operational forecasting processes. The Company's equity is comprised of share capital, contributed surplus, stock option reserves, and accumulated deficit. As at September 30, 2025, the Company has shareholders' deficit of $193,621 (2024; $173,029). Included in the consolidated statements of financial position as of September 30, 2025, is an accumulated deficit of $537,848 (2024; $ 511,134) including the impact of non- cash impairments totaling $257,897 realized in fiscal years 2021 through 2023. The Company's capital management objectives, policies and processes have remained unchanged during the period ended September 30, 2025. The Company is not subject to any external capital requirements. 29. CONTINGENCIES AND COMMITMENTS A. CLAIMS AND LITIGATION In the normal course of business, the Company is involve --- d in various legal proceedings, the outcomes of which cannot be determined at this time, and, accordingly, no provision has been recorded in these condensed interim Condensed Interim Consolidated Financial Statements. Management believes that the resolutions of these proceedings will not have a material unfavorable effect on the Company's condensed interim Condensed Interim Consolidated Financial Statements. B. CONTINGENCIES The Company may be contingently liable with respect to claims incidental to the ordinary course of its operations. In the opinion of management, as of the date of the financial statements, and based on management's consultation with legal counsel, the ultimate outcome of any such matters will not have a material adverse effect on the Company. Accordingly, no provision has been made in these condensed interim Condensed Interim Consolidated Financial Statements for losses, if any, which might result from the ultimate disposition of these matters should they arise. The Company continues to proactively monitor risks in this regard to ensure it has accounted for any and all material liabilities that may arise. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 37 The Company’s operations are subject to a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, sanctions, restrictions on its operations, or losses of licenses and permits that could result in the Company ceasing operations in that specific state or local jurisdiction. While management believes that the Company is in compliance with presiding municipal and state regulations, these regulations continue to evolve and are subject to differing interpretations. As a result, the Company may be subject to costs associated with a potential breach of the aforementioned regulations that could include but are not limited to fines, penalties, taxes, or operating restrictions. 30. SEGMENTED RESULTS Operating segments are components of the Company that engage in business activities which generate revenues and incur expenses (including intercompany revenues and expenses related to transactions conducted with other components of the Company). The operations of an operating segment are distinct, and the operating results are regularly reviewed by the chief operating decision maker ("CODM") for the purposes of resource allocation decisions and assessing its performance. Reportable segments are operating segments whose revenues, profit (loss), or total assets exceed ten percent or more of those of the combined entity. Key measures used by the CODM’s to assess performance and make resource allocation decisions include revenues, gross profit and net (loss) income. The Company’s operating segments consist of (1) Corporate, (2) Distribution, (3) Licensing, (4) Retail and (5) Other. Comparative revenues, cost of goods before fair value adjustments, fair value adjustments, operating expenses and other expenses have been reclassified to confirm to the current period’s financial statement presentation. The following exhibits summarize the condensed interim consolidated financial information of the Company’s reportable segments for the period ending September 30, 2025, and 2024. 3 months ended 30-Sep-25 Corporate Distribution Licensi --- ng Retail Other Consolidated $ $ $ $ $ $ Sales revenue - 11,455 718 4,610 - 16,783 Cost of goods sold - 7,667 125 2,482 - 10,274 Gross profit before fair value adjustments - 3,788 593 2,128 - 6,509 Gross profit % before fair value adjustments 0% 37% 89% 46% 0% 41% Unrealized changes in fair value of biological assets - (1,154) - 3,289 - 2,135 Realized fair value amounts included in inventory sold - 1,306 - (1,463) - (157) Gross profit after fair value adjustments - 3,940 593 3,954 - 8,487 Gross profit % after fair value adjustments - 34% 83% 86% - 51% Total operating expenses 1,261 5,205 519 4,017 856 11,858 Total other expenses (income) 4,732 (481) 2 3,221 1,757 9,231 Profit (loss) before Income Taxes (5,993) (784) 72 (3,284) (2,613) (12,602) Income tax - (416) 65 (449) 96 (704) Net profit (loss) from continuing operations (5,993) (1,200) 137 (3,733) (2,517) (13,306) Loss from discontinued operations - - - - (4,512) (4,512) Net loss for the year (5,993) (1,200) 137 (3,733) (7,029) (17,818) Net profit (loss) from continuing operations attributed to: Red White and Bloom (5,993) (1,200) 137 (2,920) (2,517) (12,493) Non-controlling interests - - - (813) - (813) RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 38 3 months ended 30-Sep-24 Corporate Distribution Licensing Retail Other Consolidated Sales revenue - 17,995 162 3,133 - 21,290 Cost of goods sold - 12,141 2 2,270 - 14,413 Gross profit before fair value adjustments - 5,854 160 863 - 6,877 Gross profit % before fair value adjustments Unrealized changes in fair value of biological assets - 1,729 - (1,915) - (186) Realized fair value amounts included in inventory sold - 396 - 3,070 - 3,466 Gross profit after fair value adjustments - 7,979 160 2,018 - 10,157 Gross profit % after fair value adjustments - 44% 99% 64% - 48% Total operating expenses 1,795 5,948 65 3,367 47 11,222 Total other expenses (income) 9,684 41 20 3,353 34 13,132 Profit (loss) before Income Taxes (11,479) 1,990 75 (4,702) (81) (14,197) Income tax - 7,166 640 169 23 7,998 Net profit (loss) from continuing operations (11,479) 9,156 715 (4,533) (58) (6,199) Loss from discontinued operations - - - - 3,316 3,316 Net loss for the year (11,479) 9,156 715 (4,533) 3,258 (2,883) Net profit (loss) from continuing operations attributed to: Red White and Bloom (11,479) 9,156 715 (3,634) (58) (5,300) Non-controlling interests - - - (899) - (899) The following exhibits summarize the condensed interim consolidated financial information of the Company’s reportable segments for the nine months ended September 30, 2025, and 2024. 9 months ended 30-Sep-25 Corporate Distribution Licensing Retail Other Consolidated Sales revenue - 35,746 1,763 14,872 - 52,381 Cost of goods sold - 22,584 201 8,081 - 30,866 Gross profit before fair value adjustments - 13,162 1,562 6,791 - 21,515 Gross profit % before fair value adjustments 0% 37% 89% 46% 0% 41% Unrealized changes in fair value of biological assets - (1,187) - 3,197 - 2,010 Realized fair value amounts included in inventory sold - (3,714) - (4,077) - (7,791) Gross profit after fair value adjustments - 8,261 1,562 5,911 - 15,734 Gross profit % after fair value adjustments 0% 23% 89% 40% 0% 30% Total operating expenses 3,794 14,190 1,060 10,109 1,165 30,318 Total other expenses (income) 20,917 (1,947) --- 106 9,641 2,787 31,504 Profit (loss) before Income Taxes (24,711) (3,982) 396 (13,839) (3,952) (46,088) Income tax - (1,646) 106 (383) (327) (2,250) Net profit (loss) from continuing operations (24,711) (5,628) 502 (14,222) (4,279) (48,338) Loss from discontinued operations - - - - 17,572 17,572 Net loss for the year (24,711) (5,628) 502 (14,222) 13,293 (30,766) Net profit (loss) from continuing operations attributed to: Red White and Bloom (24,711) (5,628) 502 (10,167) (4,279) (44,283) Non-controlling interests - - - (4,055) - (4,055) As at 30-Sep-25 Intercompany Balances 357,092 (253,373) (38,807) (17,975) (46,937) - Total Assets 523,098 44,242 1,387 208,067 (491,121) 285,673 Total non-current assets 164,645 226,620 39,159 203,154 (455,628) 177,950 Total liabilities 272,800 31,395 (546) 131,820 43,825 479,294 Total non-current liabilities 266,937 962 (673) 114,175 36,018 417,419 % of sales revenue 0% 68% 3% 28% 0% 100% % of loss for the period 81% 19% 0% 0% 0% 100% % of income for the period 0% 0% 4% 0% 96% 100% RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 39 9 months ended 30-Sep-24 Corporate Distribution Licensing Retail Other Consolidated Sales revenue - 52,044 431 9,106 - 61,581 Cost of goods sold - 32,585 161 9,169 - 41,915 Gross profit before fair value adjustments - 19,459 270 (63) - 19,666 Gross profit % before fair value adjustments 0% 37% 63% -1% 0% 32% Unrealized changes in fair value of biological assets - 1,809 - (1,908) - (99) Realized fair value amounts included in inventory sold - 1,485 - 1,943 - 3,428 Gross profit after fair value adjustments - 22,753 270 (28) - 22,995 Gross profit % after fair value adjustments 0% 44% 63% 0% 0% 37% Total operating expenses 5,373 15,923 635 9,343 47 31,321 Total other expenses (income) 7,974 1,646 61 8,052 167 17,900 Profit (loss) before Income Taxes (13,347) 5,184 (426) (17,423) (214) (26,226) Income tax - 4,031 617 1,145 (24) 5,769 Net profit (loss) from continuing operations (13,347) 9,215 191 (16,278) (238) (20,457) Loss from discontinued operations - - - - 832 832 Net loss for the year (13,347) 9,215 191 (16,278) 594 (19,625) Net profit (loss) from continuing operations attributed to: Red White and Bloom (13,347) 9,215 191 (12,590) (238) (16,769) Non-controlling interests - - - (3,688) - (3,688) As at 30-Sep-24 Intercompany Balances 394,340 (234,860) (38,396) (65,349) (55,735) (0) Total Assets 560,509 68,756 1,777 183,967 (520,618) 294,391 Total non-current assets 164,645 234,913 39,159 209,822 (465,509) 183,029 Total liabilities 251,304 36,993 (595) 157,175 22,543 467,420 Total non-current liabilities - 1,298 (582) 108,270 15,400 124,387 % of sales revenue 0% 85% 1% 15% 0% 100% % of loss for the period 45% 0% 0% 55% 0% 100% % of income for the period 0% 92% 2% 0% 6% 100% Revenues and total assets/liabilities by geographic region for the period ended September 30, 2025, and 2024: Canada USA Canada USA 3 months ended September 30, 2025 3 months ended September 30, 2024 $'000 $'000 $'000 $'000 Total revenues 13,925 2,859 5,368 15,922 Canada USA Canada USA 9 months ended September 30, 2025 9 months ended September 30, 2024 $'000 $'000 $'000 $'000 Total revenues 29,436 22,945 12,990 48,591 Canada USA Canada USA As at September 30, 2025 As at December 31, 2024 Total assets 70,146 215,52 --- 7 191,882 102,509 Total liabilities 271,244 208,050 189,539 277,881 RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 40 31. DISCONTINUED OPERATIONS Discontinued operations of the Company’s wholly owned subsidiaries include Mid-American Growers, Inc., Real World Business Integration, LLC, Vista Prime Management, LLC, GC Ventures 2, LLC, Vista Prime 3, Inc, Royalty USA Corp, RWB Illinois, Inc, and Pharmaco Inc. Components of residual loss from discontinued operations for the three and nine months ended September 30, 2025, and 2024: 3 months ended 30-Sep-25 3 months ended 30-Sep-24 9 months ended 30-Sep-25 9 months ended 30-Sep-24 $ $ $ $ Revenue - 424 - 4,706 Cost of sales - 294 - 3,199 Gross profit (loss) - 130 - 1,507 General and administration 97 881 921 4,206 Sales and marketing - 28 - 140 Depreciation and amortization - 137 - 406 Bad debt expense (recovery) - 4 4 8 Loss from operations before other expenses (97) (920) (925) (3,253) Other expenses (income) (8,805) 136 (8,940) 223 Finance expense (5) 14 511 41 Business transaction costs - 29 - 91 (Gain) loss on disposal - capital assets - (3,883) (788) (3,883) Gain on extinguishment of payables 8,805 - (10,119) - Foreign exchange - - 18 - Net loss before taxes from discontinued operations (92) 2,648 18,393 132 Current income tax (recovery) expense 4,226 (610) 323 (211) Deferred income tax (recovery) expense 194 (58) 498 (489) Net loss from discontinued operations (4,512) 3,316 17,572 832 Net loss per share, basic and diluted on discontinued 0.05 0.01 0.04 - Weighted average number of outstanding common shares, basic and diluted 470,221,901 469,940,379 470,221,901 469,940,379 <<< Remainder of page intentionally left blank >>> RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 41 32. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Changes in non-cash working capital items during the period ended September 30, 2025, and 2024 are as follows: Note For the 9 months ended 30-Sep-25 For the 9 months ended 30-Sep-24 $ $ Items not involving cash: Accreted interest on leases 18 2,039 1,925 Depreciation of right-of-use assets 18 1,280 1,365 Depreciation of property, plant and equipment 16 3,394 4,338 Depreciation allocated to inventory 16 - - Disposal of property, plant and equipment on discontinued operations 15 - 3,727 Disposal of right-of-use assets 18 - (119) Gain on valuation of financial instruments 22 - (691) Accrued interest on notes payable 22 26,453 18,597 Accrued interest on notes payable, held for sale 32 - 38 Accreted interest on notes payable 22 - 248 Accrued interest on convertible debentures 22 4,469 5,214 Accreted interest on convertible debentures 22 - 2,641 Accrued interest on credit facility held for sale 15 - 1,818 Finance Fees 22 - 540 Accrued interest on interest receivable 10 (2,682) (518) Amendment fees on credit facility 22 - (45) Loan forgiveness on notes payable 22 (5,805) - Gain/(Loss) on Debt modification 22 - (100) Gain on investment 7 - (7,645) Stock based compensation 23 65 165 Realized fair value (gain) loss in cost of goods sold 7,791 (3,428) Fair value adjustment on biological --- assets (2,010) 99 Gain on discharge of credit facility in discontinued operation 32 (9,770) - Gain on payables on receivership in discontinued operation 32 (9,825) - Amortized discount on note receivable 10 - (59) Gain on lease amendment 18 (254) - Items not involving cash: 15,145 28,110 33. RECLASSIFICATIONS During the last quarter of 2024, the Company classified certain subsidiary operations as discontinued operations in accordance with IFRS 5. To enhance comparability, the accompanying the below tables present amounts that have been reclassified to conform with the current period presentation of discontinued operations. The following amounts have been reclassified from continuing operations to discontinued operations for all periods presented: • Revenues and expenses of the discontinued subsidiaries have been removed from their respective line items in the consolidated statements of profit and loss and presented separately as discontinued operations. • Cash flows of the discontinued subsidiaries have been separately disclosed as discontinued operations in the consolidated statements of cash flows Refer to note 15 for assets and liabilities held for sale and note 32 for net income (loss) related to discontinued operations. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 42 A. RECLASSIFICATIONS IN THE CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE PROFIT AND PROFIT AND LOSS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 For the three months ended 30-Sep-24 Notes As previously reported Discontinued operations As reclassified $ $ $ Revenue Sales revenue 25 21,714 424 21,290 Cost of goods sold, before fair value adjustments 14,706 293 14,413 Gross Profit before fair market value adjustments 7,008 131 6,877 Unrealized changes in fair value of biological assets (186) - (186) Realized fair value amounts included in inventory sold 3,466 - 3,466 Gross profit after fair market value adjustments 10,288 131 10,157 Operating Expenses General and administration 26 8,661 750 7,911 Marketing expenses 1,229 28 1,201 Share-based compensation 23 59 - 59 Depreciation and amortization 16,18 1,327 137 1,190 Bad debt expense 9 861 - 861 Total Operating Expenses 12,137 915 11,222 Loss from operations before other expenses (1,849) (784) (1,065) Other expense (income) Interest earned on promissory notes 10 (340) - (340) Other income 110 136 (26) Finance expense 22 9,647 1 9,646 Accreted interest, leases 18 676 33 643 Acquisition costs 7 9 - 9 Business transaction costs 247 137 110 (Gain) loss on disposal of assets 16 (3,756) (3,883) 127 (Gain) loss on settlement of debt 22 640 - 640 Foreign exchange 2,323 - 2,323 Total other expenses (income) 9,556 (3,576) 13,132 Profit (loss) before income taxes (11,405) 2,792 (14,197) Current income tax (expense) recovery 8,130 610 7,520 Deferred income tax (expense) recovery 535 57 478 Net loss from continuing operations (2,740) 3,459 (6,199) Profit (loss) from discontinued operations 32 (146) (3,462) 3,316 Net loss for the period (2,886) (3) (2,883) <<< Remainder of page intentionally left blank >>> RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number o --- f shares per share amounts) Page | 43 B. RECLASSIFICATIONS IN THE CONSOLIDATED STATEMENT OF CHANGES IN STATEMENT OF CASHFLOW FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 For the nine months ended 30-Sep-24 Notes As previously reported Discontinued operations As reclassified $ $ $ Revenue Sales revenue 25 66,287 4,706 61,581 Cost of goods sold, before fair value adjustments 45,115 3,200 41,915 Gross Profit before fair market value adjustments 21,172 1,506 19,666 Unrealized changes in fair value of biological assets (99) - (99) Realized fair value amounts included in inventory sold 3,428 - 3,428 Gross profit after fair market value adjustments 24,501 1,506 22,995 Operating Expenses General and administration 26 Marketing expenses 25,728 3,862 21,866 Share-based compensation 23 3,684 139 3,545 Depreciation and amortization 16,18 165 - 165 Bad debt expense 9 3,071 405 2,666 Total Operating Expenses 3,079 - 3,079 Loss from operations before other expenses 35,727 4,406 31,321 Other expense (income) (11,226) (2,900) (8,326) Interest earned on promissory notes 10 Interest income (578) - (578) Finance expense 22 (8) (8) - Accreted interest, leases 18 28,470 4 28,466 Acquisition costs 7 2,030 105 1,925 Business transaction costs 175 - 175 (Gain) loss on disposal of assets 16 300 142 158 (Gain) loss on settlement of debt 22 (3,529) (3,883) 354 Gain on investments (121) - (121) Inventory write-downs (7,645) - (7,645) Total other expenses (income) (4,834) - (4,834) Profit (loss) before income taxes 14,260 (3,640) 17,900 Current income tax (expense) recovery (25,486) 740 (26,226) Deferred income tax (expense) recovery 4,361 211 4,150 Net loss from continuing operations 2,109 490 1,619 Profit (loss) from discontinued operations 32 (19,016) 1,441 (20,457) Net loss for the period (610) (1,442) 832 <<< Remainder of page intentionally left blank >>> RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 44 34. SUBSEQUENT EVENTS A. RESTRUCTURING On October 15, 2025, following a default by RWB Michigan, LLC (“RWB Michigan”), a wholly owned subsidiary of RWB, under the terms of a senior secured loan agreement with Royal Group Resources Ltd. (“RGR”), RGR , jointly with RWB, submitted a Receivership Order to the Circuit Court in Pontiac, Michigan, requesting the appointment of an arm’s length receiver to oversee the sale of RWB Michigan’s assets. RWB Michigan carries out licensed distribution and retail operations in the state of Michigan. The court approved the Receivership Order on October 22, 2025, authorizing the appointed Receiver to manage the orderly divestiture of RWB Michigan’s assets for the benefit of the senior secured lender and all other unsecured creditors. The senior secured lender retains its senior lien position during the receivership proceedings in addition to its primary entitlement to proceeds from any sale of the RWB Michigan assets. All offers to purchase the RWB Michigan assets are required to be vetted by the arm’s length Receiver, for ultimate approval by the Circuit Court. The receiver’s fiduciary duty requires it to maximize the returns to both secured and unsecured creditors. RWB Michigan is required to cooperate with the receiver to ensure the continuity of orderly operations during the receivership proceedings. Select RWB and RWB Michigan ma --- nagement personnel may provide operational support as directed by the receiver. The senior secured lender will fund the costs of the receiver, including its legal counsel, enabling the receiver to maximize the returns on the divestiture of the assets. On November 19, 2025, the Circuit Court, on the recommendation of the appointed receiver, approved the sale of RWB Michigan’s inventory and the assumption of select operating leases associated with facilities currently housing the RWB Michigan distribution and logistic operations. The transaction is contingent on the state licensure of the approved purchaser; MPV Wellness Inc. (“MPV Wellness”), a wholly owned subsidiary of RWB. MPV Wellness is intending on purchasing substantially all of the operating assets of RWB Michigan for the purpose of carrying on a licensed distribution operation in the state of Michigan. Its ultimate purchase of the assets remains subject to approval by both the Receiver and the Circuit Court. Effective for 2025-Q4, the initiation of the receivership proceedings will lead to the classification of RWB Michigan’s assets and liabilities as a disposal group under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Revenue and expenses for the fiscal period ended December 31, 2025, and the 2024 comparative period, related to the RWB Michigan operations, will be eliminated from the Company’s continuing operations and will be shown as discontinued operations in the consolidated statement of profit or loss. B. SALE OF REAL PROPERTY On October 21, 2025, the Company completed the sale of a non-core, commercial real estate properties located in the state of Michigan. for net proceeds of $792. On November 7, 2025, the Company completed the sale of a non-core, commercial real estate property located in the state of Michigan. The Company received a promissory note for the full purchase price of $1,250, with the note bearing interest at 5.00% per annum. The promissory note requires monthly principal and interest payments of $24 commencing January 1, 2026, with full repayment due on December 1, 2030. The note is secured by a personal guaranty from the buyer. C. FINANCING ACTIVITIES Advances on existing notes: Subsequent to the nine months ended September 30, 2025, and up to the date of this filing, the Company was advanced USD $1,000 and CAD $2,500, under the RGR USD Grid Note and the RGR CAD Grid Note, respectively. Proceeds of the advances were used to fund working capital requirements and general corporate costs. RED WHITE & BLOOM BRANDS, INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (In thousands of Canadian Dollars, except number of shares per share amounts) Page | 45 D. STATUS AS AN US EXCHANGE ACT REGISTRANT AND US TRADING IN OUR COMMON STOCK In September 2023, the SEC commenced proceedings to de-register the Company's common stock under Section 12(j) due to historical filing deficiencies, resulting in a settlement and trading suspension order effective November 7, 2023, which prohibits U.S. resident shareholders from trading on OTCQX. Following a March 2024 settlement with the Company's former auditors and their subsequent alleged non-compliance with settlement terms, the Company engaged a new audit services provider to complete outstanding audit engagements. As of the report date, audit work is underway with targeted completion, including SEC consent requirements nec --- essary to lift the Section 12(j) order, in early to mid-2026. The Company is concurrently working to reactivate its OTC marketplace listing and, upon resolution of compliance issues, intends to seek cancellation of its SEC registration as the Company does not require it to trade on the OTC given what will be its foreign private issuer status. Mediation proceedings with the Company’s former auditors are scheduled for December 15, 2025. The Company is seeking restitution for costs incurred as a result of the Company’s former auditor violating terms of an executed settlement agreement which, if respected, could have accelerated the resolution of the aforementioned filing deficiencies. The Company is not able to quantify potential recoveries associated with the mediation proceedings at this time.