SEDAR Interim Financial Statements

SHELFIE-TECH LTD CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 (Expressed in United States Dollars) 2 SHELFIE-TECH LTD CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 (Expressed in United States Dollars) TABLE OF CONTENTS Page Condensed Interim Statements of Financial Position 4 Condensed Interim Statements of Comprehensive Loss 5 Condensed Interim Statements of Changes in Shareholders' Equity (Deficit) 6 Condensed Interim Statements of Cash Flows 7 Notes to Condensed Interim Financial Statements 8-13 3 SHELFIE-TECH LTD NOTICE OF NO AUDITOR REVIEW OF THE CONDENSED INTERIM FINANCIAL STATEMENTS In accordance with National Instrument 51-102 - Continuous Disclosure Obligations, of the Canadian Securities Administrators, the Company (as defined herein) discloses that its auditors have not reviewed the accompanying unaudited condensed interim financial statements. The accompanying unaudited condensed interim financial statements of SHELFIE-TECH LTD (“Shelfie”, or the “Company”) for the three and nine months ended September 30, 2025, have been prepared by and are the responsibility of the Company’s management and have not been reviewed by the Company’s auditors. 4 SHELFIE-TECH LTD CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (Expressed in United States Dollars) (Unaudited) “Joseph Ben Tsur” “Alan Rootenberg” Director, Chief Executive officer Director, Chief Financial Officer Joseph Ben Tsur Alan Rootenberg Date of approval of condensed interim financial statements November 27, 2025. The accompanying notes are an integral part of the condensed interim financial statements. September December Note 2025 2024 ASSETS Current Assets Cash $ 931,532 $ 426,321 Short term deposit 9,074 - Restricted cash 1.c - 1,183,030 VAT receivable 18,677 5,615 Prepaid expenses 25,870 14,252 Related parties receivable 4 39,055 - Total Current Assets 1,024,208 1,629,218 Fixed assets 2,535 - Total non- current assets 2,535 - Total assets $ 1,026,743 $ 1,629,218 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Receipt on account of shares 1.c $ - $ 1,183,030 Accounts payable 200,846 256,048 Related parties payable 4 28,155 18,279 Accrued expenses 5,000 16,452 Total Current Liabilities 234,001 1,473,809 Total liabilities 234,001 1,473,809 Shareholders' Equity Share Capital 5 53 53 Additional paid in capital 5 3,890,711 2,660,063 Accumulated deficit (3,098,022) (2,504,707) Total Shareholders' Equity 792,742 155,409 Total Liabilities And Shareholders' Equity $ 1,026,743 $ 1,629,218 5 SHELFIE-TECH LTD CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (Expressed in United States Dollars) (Unaudited) The accompanying notes are an integral part of the condensed interim financial statements. Note 2025 2024 2025 2024 Operating Expenses Research and development costs 7 $ 34,760 $ - $ 119,851 $ 13,615 General and administration costs 180,046 17,860 504,500 67,249 Sales and marketing expenses - - - 2,000 Operating Loss (214,806) (17,860) (624,351) (82,864) Other income (expenses) Interest income - 659 - 1,976 Foreign exchange gain (loss) 28,957 (3) 31,036 353 Total other income (expenses) 28,957 656 31,036 2,329 Loss and comprehensive loss for the period $ (185,849) $ (17,204) $ (593,315) $ (80,535) Basic and fully diluted loss per share Weighted average number of shares outstanding 22,839,257 20,065,548 22,030,342 19,971,570 $ (0.004) Nine months ende --- d September 30, September 30, Three months ended $ (0.008) $ (0.001) $ (0.027) 6 SHELFIE-TECH LTD CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (Expressed in United States Dollars) (Unaudited) (*) Less than $1.00 The accompanying notes are an integral part of the condensed interim financial statements. Additional paid in capital Accumulated deficit Total Shareholders' Equity (Deficit) Number of shares Amount 19,855,378 $ 51 $ 2,158,439 $ (2,393,385) $ (234,895) 144,622 (*) - - - 65,548 (*) 42,351 - 42,351 - - - (80,535) (80,535) 20,065,548 $ 51 $ 2,200,790 $ (2,473,920) $ (273,079) 20,974,640 $ 53 $ 2,660,063 $ (2,504,707) $ 155,409 - - - (593,315) (593,315) 1,864,617 - 1,230,648 - 1,230,648 22,839,257 $ 53 $ 3,890,711 $ (3,098,022) $ 792,742 Loss and comprehensive loss for the period Balance -September 30, 2025 Ordinary share capital Ordinary shares Balance -December 31, 2023 Loss and comprehensive loss for the period Balance -December 31, 2024 Balance - September 30, 2024 Issuance of shares Issuance of shares Issuance of shares (note 5c(ii)) 7 SHELFIE-TECH LTD CONDENSED INTERIM STATEMENTS OF CASH FLOWS For the nine months ended September 30, 2025 and 2024 (Expressed in United States Dollars) (Unaudited) The accompanying notes are an integral part of the condensed interim financial statements. 2025 2024 Cash flows from operating activities Net loss for the period $ (593,315) $ (80,535) Adjustments for: Interest income - (1,976) Depreciation 337 - Changes in non-cash working capital: Decrease (increase) in VAT receivable (13,062) 5,291 Increase in amounts owed by related parties (29,179) (4,708) Decrease in accounts payable (55,202) (10,162) Increase in prepaid expenses (11,618) - Decrease in accrued expenses (11,452) (7,047) (713,491) (99,137) Cash flows from investing activities Purchase of fixed assets (2,872) - Amounts received from related parties - 52,249 Proceeds from issuance of shares - 42,351 Short term deposit (9,074) - (11,946) 94,600 Cash flows from financing activities Proceeds from issuance of shares 1,230,648 - 1,230,648 - Increase (decrease) in cash 505,211 (4,537) Cash, beginning of period 426,321 9,616 Cash, end of period $ 931,532 $ 5,079 Nine months ended September 30, SHELFIE-TECH LTD NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 (Expressed in United States Dollars) (Unaudited) 8 NOTE 1 - GENERAL a) SHELFIE- TECH LTD ("Shelfie" or the "Company") was incorporated on November 18, 2021 in Israel. The Company’s robotic retail shelf monitoring system uses advanced machine learning and image processing algorithms to automatically optimize inventory management and retail store shelf filling while ensuring an enhanced customer experience. The Company's head office is located at 4 Ariel Sharon, Givatayim, Israel. b) Since its inception, the Company has invested the majority of its funds in the development of its robotic retail shelf monitoring system, resulting in accumulated losses amounting to $3,098,022 Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company’s liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. Management's plans in this regard include continued development, marketing and selling of its products and services as well as seek --- ing additional financing arrangements. Although management continues to pursue these plans, these circumstances raise substantial doubt about the Company's ability to continue as a going concern. In the event that the Company is unable to achieve profitability or obtain additional financing, operations will need to be scaled back or discontinued. The financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. On November 6, 2025, the Company announced a non-brokered private placement for up to $2,000,000 at $1.00 per share. The private placement is expected to close in December 2025. c) Financing and listing on the Canadian Securities Exchange During November and December 2024, the Company received $1,183,030 (“Restricted Funds”) from investors to be held by the Company pending release as noted below. The Restricted Funds are in respect of subscription receipts to issue 1,792,469 Shares at $0.66 per share (“Underlying Shares”). The Restricted Funds will be released by the Company upon (a) the receipt by the Company of a final receipt from the Ontario Securities Commission (or such other securities regulator as the Company selects as its principal regulator) for a final long form prospectus qualifying the underlying shares; and (b) the Company being conditionally approved for listing on the CSE. During December 2024, the Company received $600,000 in respect of a private placement and issued 909,092 shares, representing a price per share of $0.66. Net proceeds from the private placement were $459,273. During January 2025, the Company received an additional $47,618 in Restricted Funds. The Restricted Funds are in respect of subscription receipts to issue 72,148 Shares at $0.66 per share. On April 28, 2025, the Company received conditional approval from the Canadian Securities Exchange (the "CSE") to list its common shares for trading on the CSE. The conditional approval follows receipt for its Final Long Form Prospectus dated April 22, 2025 relating to the securities of the Company. On April 29, 2025, the Restricted Funds in the amount of $1,230,648 were released to the Company and the Company issued the 1,864,617 Underlying Shares. The Company's shares commenced trading on the CSE on May 26, 2025. SHELFIE-TECH LTD NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 (Expressed in United States Dollars) (Unaudited) 9 NOTE 1 – GENERAL (continued) d) On October 7, 2023, an unprecedented attack was launched against Israel by terrorists from the Hamas terrorist organization that infiltrated Israel’s southern border from the Gaza Strip and in other areas within the state of Israel attacking civilians and military targets while simultaneously launching extensive rocket attacks on the Israeli population. These attacks resulted in extensive deaths, injuries and kidnapping of civilians and soldiers. In response, the Security Cabinet of the State of Israel declared war against Hamas and a military campaign against these terrorist organizations commenced in parallel to their continued rocket and terror attacks. To date, the State of Israel continues to be at war with Hamas. Since the war broke out on October 7, 2023, the Company’s operations have not been adversely affected by this situation, and have not experienced disruptions to its activities. However, at this --- time, it is not possible to predict the intensity or duration of the war, nor can the Company predict how this war will ultimately affect Israel’s economy in general and it continues to monitor the situation closely and examine the potential disruptions that could adversely affect operations. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance The Company prepares its unaudited condensed interim financial statements in accordance with International Financial Reporting Standards (“IFRS”) using the accounting policies described herein as issued by International Accounting Standards Board (“IASB”) and International Financial Reporting Interpretations Committee (“IFRIC”) interpretations. These unaudited condensed interim financial statements have been prepared in accordance with International Accounting Standards (“IAS”) 34 Interim Financial Reporting. The unaudited condensed interim financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2024. The policies applied in these condensed interim financial statements are based on IFRS effective as of September 30, 2025. Basis of Presentation These condensed interim financial statements are prepared on a going concern basis and have been presented in United States dollars which is the Company’s functional and reporting currency. Basis of Measurement These condensed interim financial statements have been prepared on a historical cost basis, except for certain financial instruments which have been measured at fair value. Significant Accounting Judgments and Estimates The significant accounting policies used in the preparation of these interim financial statements are consistent with those described in the notes to the Company’s audited annual financial statements for the prior year end. SHELFIE-TECH LTD NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 (Expressed in United States Dollars) (Unaudited) 10 NOTE 3 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT Financial risk factors The Company is exposed to a variety of financial risks such as: market risks (mainly currency risks), credit risks and liquidity risks. The Company’s overall risk management plan focuses on the unpredictability of financial markets and seeks to minimize the potential adverse effects on the Company’s financial performance. Risk management is performed by the Company’s finance department according to the policies authorized by the board of directors. a) Market risk - Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Company is exposed to financial risk related to the fluctuation of foreign exchange rates. The Company operates in Israel and most of the Company’s expenditures are currently incurred in USD. However, the Company also has expenditures in NIS. The Company has not hedged its exposure to currency fluctuations. As of September 30, 2025, if the Company’s functional currency (USD) had strengthened/ weakened by 5% against the ILS, with all other variables held constant, the loss for the period would decrease /increase by approximately $8,000. b) Credit risk Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financ --- ial assets on hand at the end of the reporting period. Credit risks are treated at the Company level. Credit risks arise typically from cash and cash equivalents and other current assets. No credit limits were exceeded during the reported periods and Company’s management does not expect any losses from non-performance of these parties. c) Liquidity risk Liquidity risk exists where the Company might encounter difficulties in meeting its financial obligations as they become due. The Company monitors its liquidity in order to ensure that sufficient liquid resources are available to allow it to meet its obligations. Cash flow forecasting is performed by the Company’s finance department. The finance department monitors rolling forecasts of the Company’s liquidity requirements to ensure that it has sufficient cash to meet operational needs. The table below presents the Company’s financial liabilities based on contractual undiscounted payments, the maturities of which are within one year. SHELFIE-TECH LTD NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 (Expressed in United States Dollars) (Unaudited) 11 NOTE 4 – TRANSACTIONS AND BALANCES WITH RELATED PARTIES Compensation to key management personnel and related parties a) On January 1, 2024, a CEO services consulting agreement (the “CEO Agreement”) was signed between the Company and Mida Consulting and Investments Ltd (“Mida”), a company controlled by the CEO of the Company, pursuant to which the Company shall pay the CEO $5,000 per month. On June 3, 2024 the Company and Mida signed an amendment to the CEO Agreement, pursuant to which the CEO would not receive any compensation until such time as the Company was publicly listed company and has raised additional financing of at least $1,000,000, following such public listing. b) On February 1, 2022, the Company entered into an occupancy rental agreement with A2Z Cust2Mate Solutions Corp, (“A2Z”), a company controlled by the CEO of the Company (the “Rental Agreement”). The Rental Agreement expired on January 31, 2023 and was renewed several times and most recently, on June 3, 2025, through to December 31, 2025. The Company’s base rent is ILS2,000 per month ($590). The Company has elected to not recognize right-of-use assets and lease liabilities for leases that have a lease term of 12 months or less and for leases of low-value assets. c) On April 1, 2022, the Company and the CFO of the Company entered into a CFO services agreement pursuant to which the CFO would receive an amount of $2,000 per month. Following the Company’s listing on the CSE as noted in Note 1c, the amount increased to $3,000 per month. d) The compensation to key management personnel for consulting services they have provided to the Company is as follows: e) Balances with related parties: 2025 2024 2025 2024 Directors $ 7,389 $ - $ 12,316 $ - CEO - - - - CFO 9,000 6,000 23,000 18,000 $ 16,389 $ 6,000 $ 35,316 $ 18,000 Three months ended September 30, Nine months ended September 30, September 30, December 31, 2025 2024 Amounts owed to the CFO (9,000) $ (36,000) $ Amounts owed to the Company by a company controlled by the CEO (19,155) $ (11,964) $ Amounts owed by a company controlled by the CEO 39,055 $ 29,685 $ SHELFIE-TECH LTD NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 (Expressed in United States Dollars) (Unaudited) 12 NOTE 5 - SHARE CAPITAL a) Com --- position of share capital: September 30, 2025 December 31, 2024 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares Number of shares Ordinary shares of NIS 0.0000075 par value each ("Shares") 000 , 00 0, 600 1, 22,839,257 000 , 00 0, 600 1, 20,974,640 b) Rights attached to shares Voting rights at the general meeting, right to dividend, rights upon liquidation and right to nominate the directors in the Company. c) Transactions during the period: (i) During January 2025, the Company received an additional $47,618 in Restricted Funds. The Restricted Funds are in respect of subscription receipts to issue 72,148 Shares at $0.66 per share. (ii) On April 29, 2025, all the Restricted Funds were released to the Company and the Company issued 1,864,617 shares as detailed in Note 1c. NOTE 6 – STOCK OPTIONS On January 6, 2025, the shareholders of the Company approved the Omnibus Equity Incentive Plan, the “Omnibus Plan”. Pursuant to the Omnibus Plan, the Company is authorized to grant options or RSUs to officers, directors, employees and consultants enabling them to acquire, together with” Options”, “Awards” or “Stock Options” as defined, up to 20% of the Company’s issued and outstanding Common Shares (after taking into account existing awards from the Company’s 2021 stock option plan). The Awards can be granted for a maximum of 10 years and vest as determined by the Board. The maximum number of common shares reserved for issuance in any 12-month period to a related party consultant may not exceed 5% of the issued and outstanding common shares at the date of the grant (and may not exceed 15% in total, to all related parties). The maximum number of common shares reserved for issuance in any 12-month period to any investor relations service provider may not exceed 2% of the issued and outstanding common shares at the date of the grant. No options have been granted under the Omnibus Plan. SHELFIE-TECH LTD NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 (Expressed in United States Dollars) (Unaudited) 13 NOTE 7 – CAPITAL MANAGEMENT The Company considers the items included in shareholders’ equity as capital. The Company manages its capital structure, and makes adjustments to it, based on the funds available to the Company in order to support the Company’s business activities. The Board of Directors does not establish quantitative return on capital criteria for management; it relies on the expertise of the Company's management to sustain future development of the business. The intellectual property in which the Company currently has an interest is in the development stage; as such, the Company is dependent on external financing to fund its activities. In order to carry out the planned research and development and pay for administrative costs, the Company intends to raise additional amounts as needed (Note 1). Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. NOTE 8 – COMMITMENTS On October 30, 2022, the Company entered into an agreement with Buchwalter Presentation and Storage Ltd. (“Buchwalter”) under which Buchwalter, a leading supplier of products, fixtures and technologies to supermarkets in Israel will serve as exclusive representatives of the Company in Israel. Buchwalter will have exclusive distribution rights for the Company’s products in Israe --- l until March 31, 2026 based on Buchwalter achieving specified sales targets.