SEDAR Interim Financial Statements

SWISS WATER DECAFFEINATED COFFEE INC. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (unaudited) For the Three and Nine Months Ended September 30, 2025 and 2024 SWISS WATER DECAFFEINATED COFFEE INC. – The accompanying notes form an integral part of these condensed consolidated interim financial statements. – 1 | P a g e Condensed Consolidated Interim Statements of Financial Position as at (Tabular amounts are in thousands of Canadian dollars) (Unaudited) Assets Note Current assets Cash 4 $ 3,939 $ 8,514 Accounts receivable 5 29,654 23,332 Inventories 6 51,353 44,494 Prepaid expenses and other receivables 1,114 753 Derivative assets and hedged firm commitments 7, 20 3,185 10,236 Total current assets 89,245 87,329 Non-current assets Deposits and other receivables 146 157 Property, plant and equipment 8 125,111 129,323 Deferred tax assets 98 109 Total non-current assets 125,355 129,589 Total assets $ 214,600 $ 216,918 Liabilities and shareholders' equity Current liabilities Accounts payable and accrued liabilities 9 $ 32,152 $ 29,044 Borrowings 10 12,324 47,316 Other liabilities 1,681 1,289 Lease liabilities 11 1,880 1,781 Derivative liabilities and hedged firm commitments 7, 20 2,396 3,941 Total current liabilities 50,433 83,371 Non-current liabilities Other liabilities 326 186 Borrowings 10 83,872 51,225 Borrowings embedded option 10.2 - 2,332 Lease liabilities 11 13,534 14,948 Asset retirement obligation 12 3,644 3,587 Deferred tax liabilities 5,525 5,177 Derivative liabilities 7, 20 185 1,225 Total non-current liabilities 107,086 78,680 Total liabilities 157,519 162,051 Shareholders' equity Share capital 13 $ 45,259 $ 45,189 Share-based compensation reserve 267 190 Accumulated other comprehensive loss (577) (2,287) Retained earnings 12,132 11,775 Total equity 57,081 54,867 Total liabilities and shareholders' equity $ 214,600 $ 216,918 Commitments and contingencies (Note 21) Approved on behalf of the Board: (signed) "Alan Wallace", Director (signed) "Frank Dennis", Director September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. – The accompanying notes form an integral part of these condensed consolidated interim financial statements. – 2 | P a g e Condensed Consolidated Interim Statements of Income (Loss) (Tabular amounts are in thousands of Canadian dollars, except for per share amounts) (Unaudited) 3 months ended 3 months ended 9 months ended 9 months ended Note Revenue 14, 18 $ 62,747 $ 41,778 $ 192,714 $ 123,880 Cost of sales (56,307) (35,342) (173,739) (104,664) Gross profit 6,440 6,436 18,975 19,216 Operating expenses Administration expenses (3,341) (2,747) (8,738) (8,531) Sales and marketing expenses (885) (909) (2,741) (2,793) Total operating expenses (4,226) (3,656) (11,479) (11,324) Operating income 2,214 2,780 7,496 7,892 Non-operating or other Loss on risk management activities (728) (1,970) (4,668) (2,638) Gain (loss) on fair value of embedded option 10.2 - 144 1,657 (664) Finance income 407 509 1,147 1,415 Finance expense (1,635) (2,294) (5,055) (6,875) Gain (loss) on foreign exchange 144 (269) (125) 317 Total non-operating or other (1,812) (3,880) (7,044) (8,445) Income (loss) before tax 402 (1,100) 452 (553) Income tax recovery (expense) (186) 309 (95) (191) Net income (loss) $ 216 $ (791) $ 357 $ (744) Earnings per share Basic income (loss) per share 17 $ 0.02 $ (0.08) $ 0.04 $ (0.08) Diluted income (loss) per share 17 $ 0.02 $ (0.08) $ (0.13) $ (0.08) September 30, 2025 September 30, 2024 Sept --- ember 30, 2025 September 30, 2024 SWISS WATER DECAFFEINATED COFFEE INC. – The accompanying notes form an integral part of these condensed consolidated interim financial statements. – 3 | P a g e Condensed Consolidated Interim Statements Of Comprehensive Income (Loss) and Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (Tabular amounts are in thousands of Canadian dollars except for amounts of shares) (Unaudited) Condensed Consolidated Interim Statements Of Comprehensive Income (Loss) Net income (loss) $ 216 $ (791) $ 357 $ (744) Other comprehensive income (loss) net of tax Items that may be subsequently reclassified to income: Unrealized gain (loss) Derivatives designated as cash flow hedges - currency risk hedges on US$ future revenue (1,022) 528 1,292 (1,372) Items reclassified to income: Realized gain recognized in income Derivatives designated as cash flow hedges - currency risk hedges on US$ future revenue, recognized in revenue 195 175 1,067 645 Other comprehensive income (loss) related to hedging activities (827) 703 2,359 (727) Tax recovery (expense) on other comprehensive income (loss) related to hedging activities 223 (190) (637) 196 Cumulative translation adjustment (19) (14) (12) (27) Other comprehensive income (loss) net of tax (623) 499 1,710 (558) Net income (loss) and other comprehensive income (loss) $ (407) $ (292) $ 2,067 $ (1,302) Condensed Consolidated Interim Statements of Changes in Shareholders' Equity Share capital Share-based Accumulated other compensation comprehensive Note Shares Amount reserve income (loss) Balance at December 31, 2023 9,212,955 $ 44,318 $ 586 $ 449 $ 10,506 $ 55,859 Shares issued for restricted share units 304,597 871 (871) - - - Share-based compensation - - 414 - - 414 Net loss and other comprehensive loss - - - (558) (744) (1,302) Balance at September 30, 2024 9,517,552 $ 45,189 $ 129 $ (109) $ 9,762 $ 54,971 Balance at December 31, 2024 9,517,552 $ 45,189 $ 190 $ (2,287) $ 11,775 $ 54,867 Shares issued for restricted share units 13.4 27,000 70 (70) - - - Share-based compensation - - 147 - - 147 Net income and other comprehensive income - - - 1,710 357 2,067 Balance at September 30, 2025 13.1 9,544,552 $ 45,259 $ 267 $ (577) $ 12,132 $ 57,081 Retained earnings Total equity 9 months ended September 30, 2025 9 months ended September 30, 2024 3 months ended 3 months ended September 30, 2025 September 30, 2024 SWISS WATER DECAFFEINATED COFFEE INC. – The accompanying notes form an integral part of these condensed consolidated interim financial statements. – 4 | P a g e Condensed Consolidated Interim Statements of Cash Flows For the (Tabular amounts are in thousands of Canadian dollars) (Unaudited) Note Operating activities Net income (loss) $ 216 $ (791) $ 357 $ (744) Items not affecting cash: Depreciation and amortization 1,729 1,765 5,357 5,160 Share-based compensation expense 875 252 942 976 Unrealized loss on risk management activities (147) (25) (76) (37) 10.2 - (144) (1,657) 664 Finance income (407) (509) (1,147) (1,415) Finance expense 1,635 2,294 5,055 6,875 Income tax expense (recovery) 186 (309) 95 191 Other 38 (67) 92 (736) 4,125 2,466 9,018 10,934 Change in non-cash working capital relating to operating activities 19 8,909 (7,251) (4,154) (1,358) Net cash (used in) generated from operations 13,034 (4,785) 4,864 9,576 Interest received 390 525 1,174 1,461 Interest paid 19 (868) (1,441) (2,858) (4,295) Income tax (paid) recovered 2 161 (55) 161 Net cash ( --- used in) generated from operating activities 12,558 (5,540) 3,125 6,903 Investing activities Additions to plant and equipment 19 (289) (188) (1,122) (760) Net cash used in investing activities (289) (188) (1,122) (760) Financing activities Payment of lease liabilities (454) (421) (1,315) (1,251) Repayment of construction loan 10.1 (1,351) - (4,024) - Proceeds from credit facility 10.3 - 2,500 11,075 2,500 Repayments of credit facility 10.3 (10,500) - (11,500) (3,750) Proceeds from EDC credit facility 10.4 - 250 - 250 Repurchase of Company's warrants 10.2 (675) - (675) - Transaction costs: debt financing activites 10.3 (139) - (139) - Net cash (used in) generated from financing activities (13,119) 2,329 (6,578) (2,251) (Decrease) increase in cash and cash equivalents (850) (3,399) (4,575) 3,892 Cash, beginning of the period 4,789 18,382 8,514 11,091 Cash, end of the period $ 3,939 $ 14,983 $ 3,939 $ 14,983 Supplemental cash flow information (Note 19) Unrealized loss (gain) on fair value of embedded option 3 months ended September 30, 2025 9 months ended September 30, 2025 9 months ended September 30, 2024 3 months ended September 30, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 5 | P a g e 1. THE COMPANY AND ITS OPERATIONS Swiss Water Decaffeinated Coffee Inc. (“Swiss Water” or the “Company”) is an entity incorporated under the Canada Business Corporations Act (“CBCA”). The common shares of the Company are listed on the Toronto Stock Exchange under the symbol ‘SWP’. The Company’s head office is located at 7750 Beedie Way, Delta, British Columbia, V4G 0A5, Canada. Swiss Water is primarily involved in the decaffeination of green coffee without the use of chemicals by employing the proprietary SWISS WATER® Process. The Company leverages science-based systems and quality controls to produce coffee that is 99.9% caffeine free. Swiss Water owns all of the interests of Seaforth Supply Chain Solutions Inc. (“Seaforth”), which is incorporated under CBCA and operates in Delta, British Columbia, Canada; Swiss Water Decaffeinated Coffee Company USA, Inc. (“SWUS”), an entity registered in Washington State, USA, and; Swiss Water Decaffeinated Coffee Europe SARL (“SWEU”), an entity registered in Bordeaux, France. Seaforth provides a complete range of green coffee handling and storage services, while SWUS and SWEU act as marketing and sales companies and do not have significant assets. 2. BASIS OF PREPARATION The Company’s condensed consolidated interim financial statements for the three and nine months ended September 30, 2025, have been prepared in accordance with International Accounting Standards 34 – Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”). Accordingly, certain disclosures included in the annual consolidated financial statements prepared in accordance with IFRS® Accounting Standards (“IFRS”) as issued by the IASB have been condensed or omitted. These condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024. These condensed consolidated interim financial statements for the three and nine months ended September 30, 2025, were approved for --- issuance by the Company’s Directors on November 3, 2025. There were no significant events that occurred between the reporting date and the date of authorization. 2.1 Currency of presentation These condensed consolidated interim financial statements are presented in Canadian dollars. Except for per share amounts, all amounts are expressed in thousands of Canadian dollars, unless otherwise stated. References to US$ are to the United States dollar. 2.2 Basis of consolidation These condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. Subsidiaries are all entities over which the Company has the power to control the financial and operating policies generally accompanying a shareholding of more than half of the voting rights. The existence and effect of potential voting rights that are currently exercisable, or convertible, SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 6 | P a g e are considered when assessing whether the Company controls another entity. All intercompany transactions, balances, income, and expenses are eliminated on consolidation. 2.3 Material accounting policies The accounting policies applied in the preparation of these condensed consolidated interim financial statements are consistent with those applied and disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2024. 2.4 New and amended standards The following amendments to accounting standards became effective for annual periods beginning on or after January 1, 2025. The adoption of these revised standards by the Company did not have a material impact on its condensed consolidated interim financial statements. • IFRS 16 Leases has amended guidance on accounting for lease liability in a sale and leaseback transaction. • IAS 1 Presentation of financial statements was amended to clarify the classification of non-current liabilities with covenants, depending on the rights that exist at the end of the reporting period. Liabilities should be classified as non-current if a company has a substantive right to defer settlement for at least 12 months at the end of the reporting period. • IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures contain amendments that require disclosures of the effects of supplier finance arrangements on an entity’s liabilities and cash flows, as well as liquidity risk and risk management. • IAS 21 The effects of changes in foreign exchange rates was amended to specify how to determine whether a currency is exchangeable into another currency and how to determine the spot exchange rate when a currency lacks exchangeability. 2.5 New and amended standards not yet effective These standards are effective for periods beginning on or after January 1, 2026, and the Company does not anticipate a material impact on its financial statements: • IFRS 7 Financial instruments disclosure, in tandem with IFRS 9 Financial instruments, provides amendments to the classification and measurements of financial instruments, gains and losses on derecognition of financial instruments (including derecognition of lease liabilities and transaction price). The standards also clarify the dates of the initial re --- cognition and derecognition of financial assets, and they clarify the initial measurement of financial instruments when the fair value at initial recognition differs from the transaction price. IFRS 7 further provides guidance on implementing disclosure of deferred differences between fair value and transaction price and credit risk disclosure. In addition, these standards address contracts that reference nature-dependent electricity. The effective date for these amendments is for annual reporting periods beginning on or after January 1, 2026; however, earlier application is permitted. • IFRS 10 Consolidated financial statements and IAS 28 Investments in associates and joint ventures relate to the sale or contribution of assets between an investor and its associate or joint venture, and SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 7 | P a g e the amendments clarify accounting for a subsidiary when a parent company loses control of the subsidiary. The standards also clarify the determination of a ‘De Facto Agent’ when assessing control and provide other annual improvements to the standard. IAS 28 amended equity method procedures. The amendments’ effective date is January 1, 2026, early adoption is permitted. • IAS 7 Statement of cash flows amended paragraph 37 to clarify investments in subsidiaries, associates, and joint ventures. Amendments are applicable for annual reporting periods beginning on or after January 1, 2026. An earlier application is permitted. • IFRS 18 Presentation and disclosure in the financial statements is a new standard issued by IASB in April 2024. The new Standard is applicable for annual reporting periods beginning on or after January 1, 2027. An earlier application is permitted. • IFRS 19 Subsidiaries without public accountability: disclosures is a new standard issued by IASB in May 2024. The new Standard is applicable for annual reporting periods beginning on or after January 1, 2027. An earlier application is permitted. 3. CAPITAL MANAGEMENT The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain the future development of the business. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company considers its capital structure to include shareholders’ equity and indebtedness. In order to maintain or adjust the capital structure, the Company may, from time to time, issue common shares, issue preferred shares, issue additional debt, adjust its capital spending, modify its dividend policy, and/or dispose of certain assets to manage current and projected debt levels. The Company manages its capital in order to meet its growth objectives and payments of dividends to its shareholders. The dividend policy of Swiss Water is subject to the discretion of the Board of Directors, which reviews the level of dividends periodically on the basis of a number of factors, including Swiss Water’s financial performance, future prospects, and the capital requirements of the business. 4. CASH Cash includes cash held with banks and financial institutions. 5. ACCOUNTS RECEIVABLE Accounts receivable are amounts due from cu --- stomers for goods sold or services performed in the ordinary course of business. Information about the Company’s exposure to foreign currency risk, interest rate risk, and credit risk can be found in the note ‘Financial risk management’. The Company monitors lifetime expected credit losses using the simplified approach, which is determined based on historic and adjusted relevant forward- looking information. The Company’s customers have a negligible default rate, and the Company’s experience in both frequency and amount of losses are not significant. As a result, the expected credit losses provision as at September 30, 2025 is $0.3 million (December 31, 2024: $0.2 million). For further details on contract balances with customers, refer to Note 14.2. SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 8 | P a g e 6. INVENTORIES During the three and nine months ended September 30, 2025, the cost of inventories recognized in the cost of sales was $47.4 million and $154.3 million (2024: $33.6 million and $100.7 million). The hedge accounting component represents the derivative adjustment related to designated hedges for inventory on hand as at each reporting period. As at September 30, 2025, the inventory provision was $0.1 million (December 31, 2024: $0.1 million). Inventories consist of the following: 7. DERIVATIVE ASSETS AND LIABILITIES The Company’s derivative assets and (liabilities) are as follows: These derivative assets and liabilities are disaggregated between: derivative financial instruments, carried at fair value through profit or loss (“FVPL”); derivative financial instruments, carried at fair value through other comprehensive income (“FVOCI”); and other hedged items. 7.1 Derivative financial instruments carried at FVPL The Company’s derivative financial instruments, carried at fair value through profit or loss, are as follows: Raw materials $ 27,701 $ 14,227 Finished goods 18,785 21,380 Carbon 345 439 Packaging 378 549 Hedge accounting component 4,144 7,899 $ 51,353 $ 44,494 September 30, 2025 December 31, 2024 Derivative assets and hedged firm commitments, current $ 3,185 $ 10,236 Derivative liabilities and hedged firm commitments, current (2,396) (3,941) Derivative liabilities, non-current (185) (1,225) Borrowings embedded option Note 10.2 - (2,332) $ 604 $ 2,738 September 30, 2025 December 31, 2024 Net coffee futures contracts $ 2,512 $ 4,508 Net US dollar forward contracts, current 168 290 Borrowings embedded option Note 10.2 - (2,332) $ 2,680 $ 2,466 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 9 | P a g e 7.2 Derivative financial instruments carried at FVOCI The Company’s derivative financial instruments, carried at fair value through other comprehensive income, are as follows: 7.3 Other hedged items The other hedged items consist of hedges related to coffee purchase commitments and hedges on coffee sales commitments: 8. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment comprise owned and leased right-of-use assets. 8.1 Right-of-use asset --- s For the three and nine months ended September 30, 2025, the total depreciation expense related to the right- of-use assets was $0.5 million and $1.4 million respectively (2024: $0.5 million and $1.4 million), of which $0.4 million and $1.2 million was charged to cost of sales (2024: $0.4 million and $1.2 million) and $0.1 million and $0.2 million was included in administrative expense (2024: $0.1 million and $0.2 million). Net US dollar forward contracts, current $ (664) $ (1,983) Net US dollar forward contracts, long-term (185) (1,225) $ (849) $ (3,208) September 30, 2025 December 31, 2024 Hedged firm commitments on coffee purchases, current $ 493 $ 5,434 Hedged firm commitments on coffee sales, current (1,720) (1,954) $ (1,227) $ 3,480 December 31, 2024 September 30, 2025 Property, plant and equipment $ 112,655 $ 115,512 Right-of-use assets 12,456 13,811 $ 125,111 $ 129,323 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 10 | P a g e 8.2 Property, plant and equipment The carrying value of property, plant and equipment is as follows: For the three and nine months ended September 30, 2025, the total depreciation expense related to property, plant and equipment was $1.3 million and $3.9 million respectively (2024: $1.3 million and $4.0 million), of which, $1.2 million and $3.7 million was depreciation charged to cost of sales (2024: $1.2 million and $3.8 million), while $0.1 million and $0.2 million of depreciation charges were included in administrative expenses (2024: $0.1 million and $0.2 million). From the expensed depreciation, during the three and nine months ended September 30, 2025, a total of nil and $0.2 million was allocated from inventory to cost of sales (2024: nil and $0.2 million from cost of sales to inventory). Building Cost January 1, 2025 $ 109,138 $ 18,159 $ 6,879 $ 732 $ 178 $ 193 $ 135,279 Additions 43 - - 23 17 945 1,028 ARO remeasurement - - (35) - - - (35) Transfers 572 - 17 30 - (619) - September 30, 2025 $ 109,753 $ 18,159 $ 6,861 $ 785 $ 195 $ 519 $ 136,272 Accumulated depreciation January 1, 2025 $ (14,298) $ (3,806) $ (1,023) $ (499) $ (141) $ - $ (19,767) Depreciation (2,652) (790) (333) (62) (13) - (3,850) September 30, 2025 $ (16,950) $ (4,596) $ (1,356) $ (561) $ (154) $ - $ (23,617) September 30, 2025 $ 92,803 $ 13,563 $ 5,505 $ 224 $ 41 $ 519 $ 112,655 Building Cost January 1, 2024 $ 108,311 $ 18,159 $ 7,235 $ 677 $ 171 $ 80 $ 134,633 Additions 96 - - - - 906 1,002 ARO remeasurement - - (356) - - - (356) Transfers 731 - - 55 7 (793) - December 31, 2024 $ 109,138 $ 18,159 $ 6,879 $ 732 $ 178 $ 193 $ 135,279 Accumulated depreciation January 1, 2024 $ (10,735) $ (2,699) $ (575) $ (392) $ (116) $ - $ (14,517) Depreciation (3,563) (1,107) (448) (107) (25) - (5,250) December 31, 2024 $ (14,298) $ (3,806) $ (1,023) $ (499) $ (141) $ - $ (19,767) December 31, 2024 $ 94,840 $ 14,353 $ 5,856 $ 233 $ 37 $ 193 $ 115,512 Machinery and Leasehold Computer Furniture and equipment improvement equipment fixtures in progress Total Construction Total Machinery and Leasehold Computer Furniture and Construction equipment improvement equipment fixtures in progress SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements Fo --- r the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 11 | P a g e 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are as follows: 10. BORROWINGS As at and during the three and nine months ended September 30, 2025, the Company was in compliance with all banks’ and creditors’ covenants. The Company’s borrowings are as follows: Accounts payable $ 27,811 $ 24,838 Accrued liabilities 3,969 4,152 Income tax payable 372 54 $ 32,152 $ 29,044 September 30, 2025 December 31, 2024 Construction loans with BDC and FCC Note 10.1 $ 52,812 $ 56,839 Credit facility Note 10.3 36,775 35,398 Borrowings with EDC Note 10.4 6,609 6,304 Borrowings, total $ 96,196 $ 98,541 Less current portion Construction loans with BDC and FCC Note 10.1 (5,715) (5,614) Credit facility Note 10.3 - (35,398) Borrowings with EDC Note 10.4 (6,609) (6,304) Borrowings, current $ (12,324) $ (47,316) Borrowings, non-current $ 83,872 $ 51,225 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 12 | P a g e 10.1 Construction loans with BDC and FCC As at September 30, 2025 and December 31, 2024, the construction loans’ balances due to BDC and FCC are as follows: 10.1 (i) BDC/FCC – Agreements and transaction costs In 2018, the Company completed a transaction with the Business Development Bank of Canada (“BDC”) for a term loan facility (“Term Loan”) of up to $20.0 million. The purpose of the Term Loan is to assist in the financing of new equipment for the first production line built in Delta, BC. The interest rate for the Term Loan was 4.95% per annum over 12 years. Principal repayments were to commence on July 1, 2021, until the Term Loan maturity date of June 1, 2033. In 2021, the Company completed a financing transaction by increasing the existing term loan to $45.0 million to fund the planned construction of a second production line at the Delta location. The financing was provided by BDC and Farm Credit Canada (“FCC”) in a pari passu structure. Each lender would fund 50% of the $45.0 million total loan value. The existing borrowing capacity with BDC increased from $20.0 million to $22.5 million (“BDC Amended Term Loan”), and FCC would also fund $22.5 million (“FCC Term Loan”). Upon closing of the transaction, the Company’s outstanding debt to each party, FCC and BDC, was $10.0 million each, where the fixed interest rates were 4.38% and 4.45%, respectively. FCC paid $10.0 million to BDC on the Company’s behalf to ensure that existing borrowings were restructured on a pari passu basis. In 2022, as the Company continued constructing its second production line in Delta, BC, the Company entered into an amendment (the “Amended Senior Facility”) to the existing senior debt facilities with BDC and FCC. Both lenders agreed to provide the Company with up to an additional $12.0 million, in total, of senior debt financing, at variable rates, funded equally between lenders. Current portion Construction loans interest, current $ 206 $ 250 Construction loan with BDC, current, variable 5.69% (2024: 7.36%) 632 632 Construction loan with BDC, current, fixed 4.45% 2,368 2,369 Construction loan with FCC, c --- urrent, variable 5.51% (2024: 7.22%) 1,611 1,494 Construction loan with FCC, current, fixed 4.38% 898 869 $ 5,715 $ 5,614 Long term portion Construction loan with BDC, non-current, variable 5.69% (2024: 7.36%) 4,895 5,368 Construction loan with BDC, non-current, fixed 4.45% 18,354 20,131 Construction loan with FCC, non-current, variable 5.51% (2024: 7.22%) 15,764 17,006 Construction loan with FCC, non-current, fixed 4.38% 8,455 9,131 Financing transaction costs (371) (411) $ 52,812 $ 56,839 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 13 | P a g e Only interest was to be paid on the outstanding balances monthly prior to July 1, 2024, for both the BDC Amended Term Loan and the FCC Term Loan. Monthly principal repayments for both loans were to commence on July 1, 2024 and were to continue until both loans mature on June 1, 2034. Effective June 2024, pursuant to an amendment, interest-only payments continued until December 31, 2024. Monthly installments covering both principal and interest began on January 1, 2025. The loans will be repaid in monthly installments until their maturity on June 1, 2034. An early repayment of the principal remains an option, subject to certain conditions. The change in the agreement terms was treated as modification accounting under IFRS 9. There was no gain or loss recognized related to this change in the agreement terms. The FCC Term Loans consist of a fixed term and a variable loan, where, until maturity, the fixed term loan bears an interest rate of 4.38% and the variable loan bears an interest rate of the variable personal property rate minus 0.75%. The BDC Term Loans consist of a fixed term and a variable loan, where, until maturity, the fixed term loan bears an interest rate of 4.45%, while the variable loan bears an interest rate of the variable BDC floating rate minus 1.5%. The Company incurred deferred financing costs associated with the above loans. These costs are recorded in non-current borrowings and amortized until the loan maturity date. As at September 30, 2025, deferred financing costs were $0.4 million (December 31, 2024: $0.4 million). 10.1 (ii) BDC/FCC – Borrowing capacity In 2022, the Company’s borrowing capacity with BDC and FCC increased from $45.0 million to $57.0 million with the purpose of funding the construction of the second production line in Delta, BC. The construction loans were fully utilized, at their capacity of $57.0 million, upon completion of the project in September 2023. 10.1 (iii) BDC/FCC – Finance expense and interest paid For both lenders, interest is based on the outstanding loan balance and is paid monthly. For the nine months ended September 30, 2025, the BDC and FCC variable rate loan effective interest rates were 5.69% and 5.51% respectively (2024: 7.64% and 7.46%). The finance costs and the effective interest rates are based on the average balance drawn on each loan. For the three and nine months ended September 30, 2025 and 2024, loan repayments, interest charged, and interest paid were as follows: Balance, open $ 54,163 $ 56,828 $ 56,839 $ 56,824 Principal repayments (1,351) - (4,024) - Interest and fees charged 652 802 2,015 2,458 Interest paid (666) (819) (2,058) (2,496) Amortized financing costs 14 --- 14 40 39 Balance, end $ 52,812 $ 56,825 $ 52,812 $ 56,825 September 30, 2025 September 30, 2024 9 months ended 9 months ended 3 months ended September 30, 2025 3 months ended September 30, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 14 | P a g e 10.1 (iv) BDC/FCC – Security The construction loans are secured by a general security agreement and a first security interest on all existing equipment and machinery, plus new equipment and machinery financed with the construction loans for both BDC and FCC. Seaforth provided a guarantee for construction loans to both BDC and FCC. 10.2 Debenture with warrants with MRC The debenture with warrants consisted of the principal amount due to Mill Road Capital II, L.P. (“MRC”), a related party, and accrued interest, net of an unamortized bond discount. The debenture with warrants was repaid in full on October 31, 2024, where the total repayment of $15.9 million consisted of $15.0 million of principal and $0.9 million of accrued interest. Following this payment, all obligations, duties and responsibilities of the parties to the debenture were terminated. The maturity of the debenture did not affect the obligations of the Company or the rights of MRC under their existing warrant agreement. As at September 30, 2025 and December 31, 2024, there were no balances owing on the debenture. The finance expense and interest paid for the three and nine months ended September 30, 2025 and 2024, are noted below. 10.2 (i) MRC – Agreements and transaction costs In 2016, the Company issued an unsecured subordinated convertible debenture to MRC for gross proceeds of $15.0 million. The convertible debenture maturity date was October 11, 2023. The Company paid financing transaction costs in the amount of $0.5 million in respect of issuing the convertible debenture. Until the debt extinguishment on July 20, 2021, the Company used the residual value method to allocate the fair value of the convertible debenture between the liability component and the derivative liability. In 2021, Swiss Water amended the convertible debenture agreement with MRC to a debenture with warrants. Under the new terms of the agreement, the maturity date was extended by one year from October 11, 2023, to October 31, 2024. The other amended terms were: (i) the interest rate increased from a maximum of 7.85% to 9%, (ii) a 1.5% additional interest in kind was added, and (iii) the debt to shares conversion feature was amended. The debt to shares conversion was amended by (a) cancelling the existing conversion feature and (b) replacing the existing conversion feature with warrants to allow MRC to purchase up to 2.25 million common shares at a price of $3.33 per share. The warrants expire on October 31, 2024. This amendment was accounted for as an extinguishment of debt, and a new debenture with warrants was established. The Company incurred a financing transaction cost of $0.2 million associated with the amendment in 2021. In 2022, Swiss Water amended the debenture with warrants agreement to (i) expand on the Senior Debt restricted covenant, where select liabilities are considered; (ii) allow Swiss Water a right to prepay the principal, and (iii) add security on the debenture. The original principal of $15.0 million and the m --- aturity date of October 31, 2024, remained the same. Also, the interest on the debenture remained unchanged at 9% paid quarterly, plus 1.5% interest in kind accrued quarterly. Meanwhile, the warrant agreement to issue 2.25 million warrants, with an exercise price of $3.33 was amended (i) to extend the maturity date from October 31, 2024, to April 30, 2026; and (ii) to add a cashless exercise option whereby MRC may elect to receive, upon exercise, such number of shares that is equal to the difference between the $3.33 exercise price and the fair market value of the shares at the time of exercise. This amendment was accounted for as an extinguishment of debt, and a new debenture with warrants was established. SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 15 | P a g e On July 3, 2025, the Company completed an agreement with MRC to purchase from MRC the outstanding share purchase warrants entitling MRC to acquire up to 2.25 million common shares of the Company. The share purchase warrants had an exercise price of $3.33 per share and were to expire on April 30, 2026. The purchase price for the share purchase warrants was $0.7 million. The payment was executed on July 3, 2025, and the outstanding warrants were cancelled. 10.2 (ii) MRC – Finance expense and interest paid During the period ended September 30, 2024, the debenture interest rate was 9% per annum, paid quarterly in arrears. The 9% was subject to reaching a specific covenant threshold. In excess of this, the interest rate would have increased to 12.5 % per annum. The Company also incurred an additional 1.5% interest in kind, which accrued quarterly and was due at the maturity date. As the debenture was repaid during the year 2024, no further interest was incurred or paid on the debenture during the nine month period ended September 30, 2025. Interest expensed and paid, and the principal on debt due to MRC was as follows: 10.2 (iii) MRC – Embedded option within the debenture with warrants Since 2022, the amended debenture with warrants contained an embedded option, where if MRC were to elect, it would result in fewer than the maximum of 2.25 million of common shares being issued upon the exercise of the warrants. The embedded option is classified as a financial liability and is revalued at each reporting date. As at December 31, 2024, the fair value of the embedded option was determined using the Black-Scholes Option Pricing Model. The variables and assumptions used in computing the fair value are based on management’s best estimate. On July 3, 2025, the Company purchased the warrants, as disclosed in Note 10.2(i). The Company determined the fair value of the embedded option to be $0.7 million based on the fair value of the consideration paid to purchase the warrants from MRC (December 31, 2024: $2.3 million). For the three and nine months ended September 30, 2025, this revaluation resulted in a gain of nil and $1.7 million (2024: gain of $0.1 million and a loss of $0.7 million). Balance, open $ - $ 15,283 $ - $ 14,631 Interest charged - 704 - 2,054 Interest paid - (354) - (1,052) Balance, end $ - $ 15,633 $ - $ 15,633 3 months ended 3 months ended September 30, 2025 September 30, 2024 9 months ended September 30, 2024 September 30, 2025 9 months ended SWISS WATE --- R DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 16 | P a g e The fair value of the embedded option and inputs to the Black-Scholes option pricing model are as follows: 10.2 (iv) MRC – Security In 2022, the debenture with warrants was secured by a secondary general security agreement, after primary lenders ranking senior to MRC for the construction loans and credit facility, over all Swiss Water present and newly acquired personal property and proceeds. Prior to this, the debenture with warrants was unsecured. Following the repayment on October 31, 2024, all obligations, duties and responsibilities of the parties to the debenture were terminated. 10.3 Operating Credit Facility As at September 30, 2025 and December 31, 2024, the Operating Credit Facility comprises: 10.3 (i) Credit Facility – Agreements and financing transaction costs In 2019, Swiss Water entered into a revolving credit facility agreement (“Credit Facility” or “Operating Credit Facility”), with a Canadian Bank, for borrowings up to the lower of the Borrowing Base (defined below) and $30.0 million. To support growth, in 2022, the available credit was increased from $30.0 million to $45.0 million. In tandem, this Credit Facility lending provided additional lending of up to $6.25 million credit facility through Export Development Canada (“EDC”), as discussed below. The maturity date of October 18, 2022, was extended to the earlier of October 19, 2025, or an event triggering default. On June 23, 2025, Swiss Water amended and renewed its Credit Facility, increasing the total available funding by $35.0 million, from $45.0 million to a maximum of $80.0 million, with the purpose of supporting ongoing operations and growth. The expanded facility includes an additional $10.0 million in revolving credit from a Canadian bank and $25.0 million in new revolving credit from Rabobank (“Rabo”). Repayment of any outstanding amounts is not required before maturity, provided the borrowings remain within the defined Borrowing Base. Share price N/A $ 3.92 Exercise price N/A $ 3.33 Option life N/A 1.33 years Volatility N/A 38% Risk-free interest rate N/A 2.92% Dividend yield N/A 0.00% Fair value of embedded option - $ 2,332 $ September 30, 2025 December 31, 2024 Credit facility, effective interest rate 5.37% ( 2024: 6.9%) $ 36,914 $ 35,407 Less unamortized financing transaction costs (139) (9) $ 36,775 $ 35,398 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 17 | P a g e The Credit Facility is set to mature on the earlier of June 23, 2027, or upon the occurrence of a default event. There is also an option, subject to lender approval, to extend the maturity date by one year to June 23, 2028. For the three and nine months ended September 30, 2025, the Company incurred deferred financing costs of nil and $0.2 million related to the amended Credit Facility. These costs have been recorded under non-current borrowings and will be amortized over the remaining term of the facility. As of September 30, 2025, the balance of deferred financin --- g costs was $0.1 million (compared to $0.01 million as at December 31, 2024, which related to the 2022 renewal). 10.3 (ii) Credit Facility – Finance expense and interest paid The Credit Facility has multiple interest rate options that are based on the Canadian Prime Rate, Base Rate, Secured Overnight Financing Rate (“SOFR Rate”), Canadian Overnight Repo Rate Average (“CORRA”), in addition to an applicable margin for each of these rates. Fees apply to outstanding letters of credit and the unused portion of the Credit Facility. For the nine months ended September 30, 2025, the Credit Facility variable rate loan effective interest rate was 5.37% (2024: 7.19%). For the three and nine months ended September 30, 2025 and 2024, loan advances, repayments, and fees and interest charged were as follows: 10.3 (iii) Credit Facility – Security The Company has pledged substantially all of its assets, except for assets pledged to BDC and FCC, as collateral for the Credit Facility, including a first priority security interest over all inventory, accounts receivable, excess margin and gains on the commodity hedging account, gains in the foreign exchange contract facility and other assets of the Company. 10.3 (iv) Credit Facility – Borrowing base The Credit Facility’s Borrowing Base margins the Company’s eligible inventories and accounts receivable, commodity hedging account equity margin plus its mark-to-market gains, which are netted against any losses in the commodity hedging account and foreign exchange contract facility. Amounts can be drawn in either Canadian or US dollars and can be borrowed, repaid, and re-borrowed to fund operations, capital expansions, letters of credit, and for general corporate purposes. Balance, open $ 46,640 $ 23,990 $ 35,398 $ 26,728 Principal advances - 2,500 11,075 2,500 Principal repayments (10,500) - (11,500) (3,750) Interest and fees charged 608 432 1,932 1,392 Financing costs addition - - (177) - Financing costs amortization 27 46 47 98 Balance, end $ 36,775 $ 26,968 $ 36,775 $ 26,968 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 3 months ended 3 months ended 9 months ended 9 months ended SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 18 | P a g e As at September 30, 2025 and December 31, 2024, the Company’s borrowing availability was as follows: 10.3 (v) Credit Facility – Foreign exchange and commodity futures contract facilities As part of the Credit Facility, the Company has a US$8.0 million foreign exchange and commodity futures contract facility, which allows the Company to enter into spot, forward, and other foreign exchange rate transactions and commodity futures transactions with the Canadian Bank with a maximum term of up to 60 months. 10.4 Credit Facility with EDC (“EDC Credit”) As at September 30, 2025, $6.3 million was drawn on the EDC Credit and the Company accrued interest of $0.3 million (December 31, 2024: $6.3 million and accrued interest of $0.1). 10.4 (i) EDC Credit – Agreements In 2022, the Company entered into a revolving credit facility agreement with EDC (the “EDC Credit”) for borrowings of up to $6.25 million. The EDC Credit is to be used for the purpose of providing additional liquidity to finance the Company’s operations, should it be needed. --- The lender of the above-mentioned Credit Facility with a Canadian Bank is the administrative agent for the EDC Credit, and all security and guarantees held by the lender of the Credit Facility as security for the Credit Facility are also held as security for the EDC Credit. The EDC Credit facility will terminate on the earliest of: (i) demand by the lender of the Credit Facility for repayment, (ii) the third anniversary of the effective date of November 22, 2025, and (iii) the maturity date under the Credit Facility. The lender of the Credit Facility may, in its sole discretion, renew the EDC Credit for a maximum of five successive one-year periods after the first anniversary of the effective date. On June 23, 2025, as part of the amended and renewed Credit Facility with a Canadian Bank, as disclosed in Note 10.3, the Company is required to maintain maximum principal amounts on a quarterly basis and full repayment by June 30, 2029. 10.4 (ii) EDC Credit – Finance expense and interest paid Amounts drawn on the EDC Credit bear interest at the Canadian Prime Rate plus 1.5% per annum. The EDC Credit is subject to certain fees. For the nine months ended September 30, 2025, the EDC Credit variable rate loan effective interest rate was 6.33% (2024: not applicable). Gross borrowing base availability $ 39,071 $ 39,619 Advances, repayments, fees and interest from inception (36,914) (35,407) Outstanding letter of credit and security lien bond (537) (537) Interests and fees accrued (143) 163 $ 1,477 $ 3,838 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 19 | P a g e For the nine months ended September 30, 2025 and 2024, loan advances, repayments, and fees and interest charged were as follows: 10.5 Foreign exchange facility guarantee with EDC On June 1, 2020, the Company entered into a foreign exchange facility guarantee with EDC to cover margin requirements in relation to the foreign exchange contract facility. On August 4, 2020, the Company’s Credit Facility lender amended the Credit Facility to recognize the foreign exchange facility guarantee provided by EDC. The facility guarantees a maximum aggregate liability of up to $6.0 million, and it is valid until September 30, 2026. This guarantee provides additional borrowing capacity within the above mentioned Credit Facility with a Canadian Bank. 11. LEASE LIABILITIES 11.1 Lease liabilities Lease liabilities are as follows: 11.2 Lease finance expense and lease payments From the total of lease cash payments, the portion relating to finance expense is recognized in the operating activities, while the principal portion of lease payments is recognized in the financing component on the condensed consolidated interim statement of cash flows. For the three and nine months ended September 30, 2025 and 2024, the amounts recognized in the condensed consolidated interim statement of income (loss) and condensed consolidated interim statement of cash flows are as follows. Lease cash payments reflect cash paid for principal of lease liabilities and related interest. Balance, open $ 6,508 $ - $ 6,304 $ - Advances - 250 - 250 Interest and fees charged 101 - 305 - Balance, end $ 6,609 $ 250 $ 6,609 $ 250 September 30, 2025 September 30, 2024 9 months ended 9 m --- onths ended 3 months ended 3 months ended September 30, 2025 September 30, 2024 Lease liabilities, current $ 1,880 $ 1,781 Lease liabilities, non-current 13,534 14,948 $ 15,414 $ 16,729 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 20 | P a g e 12. ASSET RETIREMENT OBLIGATION (“ARO”) The Company estimates that the total undiscounted amount of cash flows required to settle its ARO is approximately $5.8 million, all of which is allocated to the Delta location. As at September 30, 2025, the Company recorded a total of $3.6 million (December 31, 2024: $3.6 million), reflecting the present value of the ARO using a risk free rate of 3.54% (December 31, 2024: 3.35%). ARO transactions were as follows: 13. SHARE CAPITAL 13.1 Common shares Swiss Water is authorized to issue an unlimited number of common shares without par value. Each share is equally eligible to receive dividends when declared and represents one vote at meetings of shareholders. As at September 30, 2025, there were 9,544,552 common shares issued and outstanding (December 31, 2024: 9,517,552). 13.2 Preferred shares On May 9, 2022, at the Annual and Special Meeting of Shareholders, the Shareholders approved the amendment to the Articles of Amalgamation of the Company to create two new classes of shares, Class A Preferred Shares and Class B Preferred Shares. As at September 30, 2025, there were nil preferred shares issued and outstanding (December 31, 2024: nil). 13.3 Warrants In 2021, the Company issued 2.25 million warrants to MRC. Each warrant was exercisable for one common share at a price of $3.33, expiring on October 31, 2024. The warrant's initial value was recorded as a component of equity and subsequently was not remeasured. Balance, open $ 15,869 $ 17,563 $ 16,729 $ 18,393 Finance expense 196 217 603 666 Lease cash payments (651) (640) (1,923) (1,919) Foreign exchange - 2 5 2 Balance, end $ 15,414 $ 17,142 $ 15,414 $ 17,142 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 3 months ended 3 months ended 9 months ended 9 months ended Balance, open $ 3,587 $ 3,839 Remeasurement recognized in property, plant and equipment (35) (356) Accretion 92 104 Balance, end $ 3,644 $ 3,587 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 21 | P a g e In 2022, the warrants agreement was amended to (i) extend the maturity date of the warrants from October 31, 2024, to April 30, 2026, and (ii) provide for a cashless exercise whereby MRC may elect to receive, upon exercise, such number of shares that is equal to the difference between the $3.33 exercise price and the fair market value of the shares. There was no change to the number of shares issuable under the agreement or the exercise price of the warrants. As the agreement allowed for a cashless option for a variable number of shares, the warrants were reclassified from equity to financial liability. Refer to Note 10.2 for further details. As disclosed in Note 10.2(i), the Company purchased the warrants --- from MRC on July 3, 2025, and all of the outstanding warrants were immediately cancelled. 13.4 Equity-based restricted share units (“E-RSUs”) The movement in E-RSUs was as follows: 13.5 Cash-based restricted share units (“C-RSUs”) C-RSUs accounting policy During the three and nine month period ended September 30, 2025, Swiss Water established a new, cash-based restricted share unit plan for certain employees of the Company. Its purpose is to align employee incentives with that of the Company’s Shareholders. The C-RSUs granted are expected to be settled using cash. No common shares will be issued. Volume based Average remaining Number of weighted average vesting period Performance E-RSUs share price in years based Balance at January 1, 2024 716,900 $ 2.19 0.54 E-RSUs granted 149,277 $ 3.43 2.24 No E-RSUs granted - performance 59,777 $ 3.43 2.24 Yes E-RSUs cash-settled (47,000) $ 3.53 - No E-RSUs cash-settled - performance (108,578) $ 2.95 - Yes E-RSUs equity-settled (57,000) $ 3.05 - No E-RSUs equity-settled - performance (247,597) $ 2.88 - Yes E-RSUs forfeited (3,500) $ 2.68 - No E-RSUs forfeited - performance (118,725) $ 2.88 - Yes Balance at December 31, 2024 343,554 $ 3.30 1.65 Balance at January 1, 2025 343,554 $ 3.30 1.65 E-RSUs granted 61,891 $ 3.30 2.51 No E-RSUs granted - performance 25,491 $ 3.30 2.51 Yes E-RSUs cash-settled (25,000) $ 3.44 - No E-RSUs equity-settled (27,000) $ 2.58 - No E-RSUs forfeited (7,500) $ 3.19 - No Balance at September 30, 2025 371,436 $ 3.80 1.49 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 22 | P a g e For C-RSUs, a liability is recognized, measured initially at the fair value of the liability using a volume weighted average share price. The amount of the liability is charged to net income (loss) on a straight-line basis over the vesting period, based on the estimate of the number of C-RSUs that will eventually vest and be settled in cash. As necessary, the Company revises its estimate if subsequent information indicates that the number of C-RSUs expected to vest differs from previous estimates. On the vesting date, the Company revises the estimate to equal the number of C-RSUs that are ultimately vested and are settled in cash. The impact of the revision of estimates, if any, is recognized in the statement of income (loss) such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the long-term liability or current liability, depending on the timing when the liability becomes due. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured using a volume weighted average share price, with any change in fair value recognized in the statement of income (loss). C-RSUs transactions Periodically, the Company grants C-RSUs, some of which are performance C-RSUs, and others are non- performance C-RSUs. Both non-performance and performance C-RSUs vest over time on the third anniversary of their grant. Performance based C-RSUs are subject to meeting additional performance objectives specified by the Board of Directors. Each award is increased by the value of dividends paid to shareholders during the vesting period, using a formula that uses the number of C-RSUs ou --- tstanding under the award at the dividend payment date, multiplied by the number determined by dividing the dividend amount per common share by the market price as at the dividend payment date. The Company values the C-RSUs using VWAP. VWAP is based on the Canadian dollar trading price of the Company’s common shares on the Toronto Stock Exchange for the five trading days immediately preceding that relevant date, calculated by dividing the total value by the total volume of common shares traded, according to the C-RSU plan. The movement in C-RSUs was as follows: Volume based Average remaining Number of weighted average vesting period Performance C-RSUs share price in years based Balance at January 1, 2025 - $ - - C-RSUs granted 92,837 $ 3.30 2.51 No C-RSUs granted - performance 38,236 $ 3.30 2.51 Yes Balance at September 30, 2025 131,073 $ 4.50 2.51 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 23 | P a g e 13.6 Deferred share units (“DSUs”) The movement in DSUs was as follows: 14. REVENUE The following are disaggregation of revenue and contract balances related to contracts with customers. Related credit risk and customer concentration are discussed in the note on ‘Financial risk management’, under ‘Credit risk’. 14.1 Disaggregation of revenue Revenue disaggregated by geographical markets is disclosed in Note 18, under Segment Reporting. The Company also disaggregates revenue by major products and services: decaffeinated coffee sales, decaffeination services, and distribution services, with the following results for the three and nine months ended September 30, 2025 and 2024 as follows: 14.2 Contract balances As at September 30, 2025, the accounts receivable balance of $29.7 million (December 31, 2024: $23.3 million) consists of amounts due from customer contracts and reflects the Company’s right to a consideration that is unconditional. Provision for expected credit loss included in the accounts receivable balance as at September 30, 2025, was $0.3 million (December 31, 2024: $0.2 million). Number of Weighted average Performance DSUs share price based Balance at January 1, 2024 234,661 2.78 $ DSUs issued 72,048 3.29 $ No Balance at December 31, 2024 306,709 3.91 $ Balance at January 1, 2025 306,709 3.91 $ DSUs issued 56,602 3.29 $ No DSUs redeemed (18,487) 3.29 $ No Balance at September 30, 2025 344,824 4.47 $ Decaffeinated coffee sales $ 54,385 $ 36,072 $ 172,608 $ 107,903 Decaffeination services 2,560 2,749 6,289 7,483 Distribution services 5,802 2,957 13,817 8,494 $ 62,747 $ 41,778 $ 192,714 $ 123,880 3 months ended 3 months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 9 months ended 9 months ended SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 24 | P a g e As at September 30, 2025, $0.2 million of deferred revenue, related to cash received in advance of deliveries, was included in accrued liabilities (December 31, 2024: $0.4 million). During both periods ended September 30, 2025 and December 31, 2024, there were no significant changes in the contract asse --- ts and contract liabilities balances. The Company did not have other contract assets or liabilities from contracts with customers. 15. EMPLOYEE BENEFITS EXPENSES Expenses recognized for employee benefits are as follows: Short-term benefits comprise salaries, accrued bonuses, benefits, and director fees. Long-term benefits comprise share-based compensation under the E-RSU, C-RSU, and DSU plans. Post-employment benefits are contributions to employee retirement accounts, as well as statutory remittances related to post-employment benefits. These are recognized as an expense when employees have rendered service entitling them to the contributions. 16. RELATED PARTY TRANSACTIONS The Company’s related parties include its subsidiaries, key management personnel, and a company related to a director. Details of transactions between the Company and related parties (other than its subsidiaries identified in Note 1) are discussed below. All intercompany transactions, balances, income, and expenses are eliminated on consolidation. 16.1 Compensation of key management personnel The remuneration of directors and key management personnel included in the condensed consolidated interim statement of income (loss) for the three and nine months ended September 30, 2025 and 2024 was as follows: 3 months ended 3 months ended 9 months ended 9 months ended Short-term benefits $ 3,440 $ 3,471 $ 10,441 $ 9,952 Long-term benefits 875 252 942 976 Post-employment benefits 283 277 1,052 1,066 $ 4,598 $ 4,000 $ 12,435 $ 11,994 September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 3 months ended 3 months ended 9 months ended 9 months ended Short-term benefits $ 603 $ 581 $ 1,802 $ 1,929 Long-term benefits 765 175 750 771 Post-employment benefits 65 51 238 220 $ 1,433 $ 807 $ 2,790 $ 2,920 September 30, 2025 September 30, 2024 September 30, 2024 September 30, 2025 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 25 | P a g e 16.2 Trading transactions During the three and nine months ended September 30, 2025 and 2024, the Company entered into the following transactions with a company that is related to a director of the Company: As at September 30, 2025 and December 31, 2024, the Company had the following balances receivable from and payable to a company that is related to a director: These transactions were in the normal course of operations and were initially measured at the fair value of the consideration paid or receivable, which was established and agreed to by both parties. 16.3 Employee loan On October 26, 2021, the Company and a member of key management entered into a promissory note in the amount of $0.07 million. For as long as the borrower remains an employee, the obligation to repay the principal is forgiven against current and future awards under the RSU plan, by forfeiture of awards. The loan is interest free other than in the event of default, in which case the promissory note would bear simple interest at a rate of 10% per annum. As at September 30, 2025, the loan balance of $0.01 million was included in prepaid expenses and other receivables (December 31, 2024: $0.01 million). 16.4 Debenture with warrants MRC is a shareholder of Swiss Water, and under the terms of the warrants agreement, MRC added their designate to --- Swiss Water’s Board of Directors. While the Company’s warrants were outstanding, as a holder of the warrants, MRC had the right to exercise the warrants and obtain an additional 2.25 million shares of Swiss Water. As disclosed in Note 10.2(i), the Company completed an agreement to purchase the warrants from MRC on July 3, 2025, and the outstanding warrants were cancelled. 3 months ended 3 months ended 9 months ended 9 months ended Sales $ 125 $ 28 $ 815 $ 445 Purchases of raw materials $ 4,889 $ 2,460 $ 15,332 $ 7,581 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Accounts receivable $ 3 $ 17 Accounts payable $ 3,180 $ 841 September 30, 2025 December 31, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 26 | P a g e 17. BASIC AND DILUTED EARNINGS PER SHARE (“EPS”) Basic and dilutive earnings per share are as follows: Potential common shares are anti-dilutive when their conversion to common shares increases earnings per share or decreases loss per share from continuing operations. Anti-dilutive potential common shares are excluded from the weighted average number of shares outstanding for the purposes of calculating the diluted earnings per share. The following potential common shares are anti-dilutive in one or more periods and are therefore excluded from the weighted average number of common shares outstanding for the purposes of calculating the diluted earnings per share: 18. SEGMENT REPORTING The Company’s sales are primarily generated by the decaffeination of the green coffee segment and in three geographic areas: Canada, the United States, and other international markets. The Company’s revenue from external customers and its non-current assets (excluding deferred tax assets), by location, are detailed below. 18.1 Revenue Revenue is primarily generated from a single business segment of decaffeination of green coffee beans. Management examines revenue from the sale of coffee and services provided to customers who are located in the following geographic regions: Basic income (loss) per share Net income (loss) attibutable to shareholders $ 216 $ (791) $ 357 $ (744) Weighted average number of shares 9,544,552 9,517,552 9,540,003 9,414,890 Basic income (loss) per share $ 0.02 $ (0.08) $ 0.04 $ (0.08) Diluted income (loss) per share Net income (loss) attibutable to shareholders $ 216 $ (791) $ 357 $ (744) Fair value of borrowings embedded option - - (1,657) - Net income (loss) after effect of diluted securities $ 216 $ (791) $ (1,300) $ (744) Weighted average number of shares - basic 9,544,552 9,517,552 9,540,003 9,414,890 Effect of dilution: Warrants 48,913 - 1,508,242 - Effect of dilution: Warrants deemed to be repurchased (37,741) - (1,375,071) - Weighted average number of shares - diluted 9,555,724 9,517,552 9,673,174 9,414,890 Diluted income (loss) per share $ 0.02 $ (0.08) $ (0.13) $ (0.08) 3 months ended 3 months ended 9 months ended 9 months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Weighted average number of RSUs outstanding 373,963 336,815 356,895 443,919 Weighted average number of Warrants outstanding - 2,250,000 - 2,250,000 3 months ended 3 months ended 9 months ended 9 months ended September 30, 2025 September 30, 2024 September 30, 202 --- 5 September 30, 2024 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 27 | P a g e 18.2 Non-current assets (excluding deferred tax assets) Non-current assets, excluding deferred taxes, are in the following geographic segments: 19. SUPPLEMENTAL CASH FLOW INFORMATION Changes in non-cash working capital are as follows: Cash and non-cash transactions recognized within operating activities are as follows: • During the three and nine months ended September 30, 2025, Swiss Water paid nil and $0.1 million in cash to settle equity-based RSUs (2024: nil million and $0.5 million). • During the three and nine months ended September 30, 2025, and 2024, lease payments for short- term leases and leases of low value, which are not included in the measurement of the lease liability, are classified as cash flows from operating activities. Canada $ 14,274 $ 10,169 $ 40,020 $ 32,416 United States 30,116 19,690 101,535 60,863 International 18,357 11,919 51,159 30,601 $ 62,747 $ 41,778 $ 192,714 $ 123,880 3 months ended 3 months ended 9 months ended 9 months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Canada $ 125,192 $ 129,401 United States 1 3 Europe 64 76 $ 125,257 $ 129,480 September 30, 2025 December 31, 2024 Accounts receivable $ 1,678 $ (20) $ (6,489) $ (192) Inventories (812) (7,194) (10,726) (3,953) Other assets and liabilities (244) (32) (251) (606) Prepaid expenses (249) (157) (361) (18) Accounts payable and accrued liabilities 13,267 4,092 3,017 8,823 Derivative assets, liabilities and hedged firm commitments (5,406) (3,940) 9,981 (5,412) Borrowings embedded option 675 - 675 - $ 8,909 $ (7,251) $ (4,154) $ (1,358) 3 months ended 3 months ended September 30, 2025 September 30, 2024 9 months ended September 30, 2024 9 months ended September 30, 2025 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 28 | P a g e Cash and non-cash transactions affecting operating and investing activities are as follows: • As at September 30, 2025, $0.2 million of depreciation on manufacturing equipment was allocated from inventory to cost of sales (December 31, 2024: $0.3 million from cost of sales to inventory). • As at September 30, 2025, nil additions to property, plant and equipment were recorded in accounts payable and accrued liabilities (December 31, 2024: $0.1 million). These transactions did not require the use of the Company’s cash. • As at September 30, 2025, $0.03 million of non-cash asset retirement obligation for the Delta leased property was removed from property, plant and equipment (December 31, 2024: removed $0.4 million). Cash and non-cash transactions affecting operating and financing activities are as follows: • During the three and nine months ended September 30, 2025, and 2024, the Company has classified the interest portion of lease payments within operating activities and the principal portion within financing activities. 20. FINANCIAL RISK MANAGEMENT The Company’s risk management program focuses on the unpredictability of commodity prices and foreign exchange rates and --- seeks to minimize potential adverse effects on the Company’s financial performance and cash flows. The Company uses derivative financial instruments to hedge these risk exposures. In addition, the Company monitors other financial risks on a regular basis. Risk management is carried out under policies approved by the Board of Directors. The Company’s exposure to and management of financial risks is discussed in more detail below. 20.1 Commodity price risk hedges on purchase commitments and inventory Commodity price risk is the risk that the fair value of inventory will fluctuate as a result of changes in commodity prices. The Company utilizes futures contracts to manage its commodity price exposure. The Company buys and sells futures contracts for coffee on the Intercontinental Exchange in order to offset its inventory position and fix the input cost of green coffee. As at September 30, 2025, the Company had futures contracts to buy 6.4 million pounds of green coffee with a notional value of US$23.0 million, and contracts to sell 12.1 million pounds of green coffee with a notional value of US$44.1 million. The furthest contract matures in May 2026 (December 31, 2024: buy 6.5 million pounds of green coffee with a notional value of US$20.4 million, and contracts to sell 17.0 million pounds of green coffee with a notional value of US$53.6 million). Based on the volumes of coffee hedged, a 1% decrease in the mark-to- market rate for coffee futures would have resulted in an estimated of $0.2 million reduction in net income, and vice versa (December 2024: $0.2 million). SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 29 | P a g e The following tables provide a summary of commodity hedges designated as hedging instruments: 20.2 Foreign exchange currency risk hedges The Company realizes a significant portion of its revenues in US$ and purchases green coffee in US$, which is, in some cases, sold to customers in Canadian dollars. The Company enters into forward foreign currency contracts to manage its exposure to currency rate fluctuations and to minimize the effect of exchange rate fluctuations on business decisions. These contracts relate to the Company’s future net cash flows in US$ from sales. In addition, the Company enters into forward contracts to buy US$ for coffee that it resells in Canadian dollars. As at September 30, 2025, the Company had forward currency contracts to buy US$14.8 million and sell US$27.1 million (December 31, 2024: buy US$5.1 million and sell US$44.5 million) from October 2025 through to August 2027 at various Canadian exchange rates ranging from $1.33 to $1.40. Based on the total U.S. dollar exposure hedged, a one cent decrease in the CAD/USD exchange rate would have resulted in an estimated $0.1 million increase in net income and other comprehensive income, and vice versa (2024: $0.3 million increase in net income). The following tables provide a summary of amounts related to foreign currency forward contracts designated as hedging instruments. Not included in the tables below are fair value changes for swap and other contracts, as these are not designated hedge instruments. Carrying amount of hedging instruments Fair value hedge Nominal amount of hedging instruments (in US$'000) $ 21,093 $ 33,197 --- hedging instrument is located Derivative Assets $ 2,500 $ 4,508 Changes in fair value used for calculating hedge ineffectiveness - - December 31, 2024 Commodity price risk Coffee futures Commodity price risk Coffee futures September 30, 2025 Line item in the statement of financial position where Fair value hedge and coffee inventory and coffee inventory Nominal amount of hedged item (in '000 lbs) 5,685 10,566 Inventories & hedged Inventories & hedged hedged item is located firm commitments firm commitments Assets $ 4,630 $ 13,348 Liabilities 1,635 1,656 Changes in fair value used for calculating hedge ineffectiveness - - Line items in the statement of financial position where Purchase commitments Accumulated amount of fair value hedge adjustment on hedged item included in the carrying amount of the hedged items September 30, 2025 December 31, 2024 Purchase commitments SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 30 | P a g e Currency risk hedges related to US$ sales As at September 30, 2025, the Company designated as hedging instruments US$27.1 million in forward contracts to sell US dollars, which relate to highly probable forecasted sales revenue (December 31, 2024: US$44.5 million). Currency risk hedges related to US$ purchases As at September 30, 2025, the Company designated as hedging instruments US$9.9 million in forward contracts to buy US dollars, which relate to coffee purchases (December 31, 2024: US$5.1 million). Carrying amount of hedging instruments Cashflow hedge Nominal amount of hedging instruments (in US$'000) $ 27,050 $ 44,530 hedging instrument is located Derivative Assets $ - $ - Derivative Liabilities 849 3,208 - - September 30, 2025 December 31, 2024 Currency risk Foreign currency forwards Currency risk Foreign currency forwards Changes in fair value used for calculating hedge ineffectiveness Line items in the statement of financial position where Cashflow hedge Nominal amount of hedged item (in US$'000) $ 27,050 $ 44,530 Accumulated other Accumulated other hedged item is located comprehensive income comprehensive income Assets $ n/a $ n/a Liabilities n/a n/a Changes in fair value used for calculating hedge ineffectiveness - - Cashflow hedge reserve (849) (3,208) December 31, 2024 Currency risk Foreign currency forwards Currency risk Foreign currency forwards Line items in the statement of financial position where Accumulated amount of fair value hedge adjustment on hedged item included in the carrying amount of the hedged items September 30, 2025 Carrying amount of hedging instruments Fair value hedge Foreign currency Foreign currency purchase forwards purchase forwards Nominal amount of hedging instruments (in US$'000) $ 9,914 $ 5,124 Line item in the statement of financial position where hedging instrument is located Derivative Assets $ 132 $ 294 Derivative Liabilities 11 5 Changes in fair value used for calculating hedge ineffectiveness - - December 31, 2024 September 30, 2025 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 31 | P a g e 20.3 Interest rate risk Interest r --- ate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. Interest rate risk on cash is low as they are all made in fixed-rate instruments. The Company is exposed to interest rate risk on its variable rate credit facilities and construction loans. Based on the total variable borrowings outstanding, a 1% increase in the Canadian Prime Rate, assuming all other variables remain constant, would result in an estimated $0.5 million decrease in net income, and vice versa (December 31, 2024: $0.5 million). There is no interest rate risk associated with fixed rate construction loans, as their interest rates are fixed. 20.4 Credit risk The Company is exposed to credit risk with respect to its cash, accounts receivable, deposits and other receivables, and derivative financial instruments. The Company does not have significant credit risk related to cash as amounts are held with major financial institutions. The Company follows a program of credit evaluations of customers. A customer’s credit check is performed in advance of providing credit to a customer by reviewing their external credit ratings and interviewing customers’ reputable vendors, and then reviewed annually. For the nine months ended September 30, 2025, revenues from three major customers, in the amount of $69.1 million (2024: $44.5 million), represented 36% (2024: 36%) of total revenues for the period. Three customers represented 44% of total accounts receivable as at September 30, 2025 (December 31, 2024: 37%). The Company had 17% of its accounts receivable past due but not impaired as at September 30, 2025 (December 31, 2024: 15%). Of the accounts receivable that are past due, 89% are 1-30 days past due, while 11% are over 31 days past due (December 31, 2024: 97% and 3% respectively). The Company manages the credit risk related to its derivative financial instruments by entering into such contracts only with high credit quality institutions. Fair value hedge Firm purchase commitments Firm purchase commitments & inventories & inventories Nominal amount of hedged item (in US$'000) $ 9,914 $ 5,124 Line item in the statement of financial position where Inventories & hedged Inventories & hedged hedged item is located firm commitments firm commitments Assets $ 7 $ - Liabilities 85 313 Changes in fair value used for calculating hedge ineffectiveness - - December 31, 2024 Accumulated amount of fair value hedge adjustment on hedged item included in the carrying amount of the hedged items September 30, 2025 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 32 | P a g e 20.5 Liquidity risk Non-derivative financial liabilities carrying amounts and their related undiscounted contractual cash flows are as follows: The Company has in place a planning and budgeting process to assist in determining funds required to support the Company’s normal operating requirements on an ongoing basis and its future plans. The Company ensures that there are sufficient committed financing facilities to meet its short-term business requirements, taking into account its anticipated cash flows from operations, its existing bank indebtedness and additional borrowing capacity. The Company has maintained compliance with --- its banking covenants and remains able to satisfy its liabilities as they become due. 20.6 Fair value of financial instruments The Company classifies and discloses the fair value measurements of its financial instruments using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: a) Level 1 captures the Company’s cash and commodity futures. b) Level 2 captures the Company’s foreign exchange forward contracts, derivative financial liabilities, borrowings embedded option, construction loans, credit facilities, and other liabilities. c) Level 3, the Company does not have Level 3 financial instruments. The carrying value of cash, accounts receivable, accounts payable, and accrued liabilities approximate their fair value because of the short-term nature of these financial instruments. These financial instruments are classified as financial assets and liabilities at amortized costs. Financial instruments that are measured at fair value are categorized as follows. During the three and nine months ended September 30, 2025, there were no transfers between level 1 and 2 instruments. 2-3 Years Accounts payable $ 27,811 $ 27,811 $ - $ - $ - Other liabilities 2,007 1,681 326 - - Lease liabilities 15,414 2,604 3,379 - - Credit facility with banks 36,775 - 36,914 - - Credit facility with EDC and interest 6,609 6,609 - - - Construction loans and interest 52,812 5,715 12,000 12,000 23,468 Total $ 141,428 $ 44,420 $ 52,619 $ 12,000 $ 23,468 Carrying Amount Contractual Cash Flows Thereafter 4-5 Years < 1 Year September 30, 2025 SWISS WATER DECAFFEINATED COFFEE INC. Notes to the Condensed Consolidated Interim Financial Statements For the Three and Nine Months ended September 30, 2025 and 2024 (Tabular amounts are in thousands of Canadian dollars, except shares and per share amounts) (Unaudited) 33 | P a g e 21. COMMITMENTS AND CONTINGENCIES In addition to lease liabilities, the Company has the following commitments: The Company has provided a standby letter of credit in the amount of $0.5 million as security for a construction bond. This commitment restricts the available borrowing base draws as highlighted in Note 10.3(iv), ‘Credit Facility – Borrowing base’. The Company also has, in the normal course of business, entered into various contracts. As at September 30, 2025, these contracts related to the purchase of green coffee in the amount of $78.5 million (December 31, 2024: $82.8 million). Of these contracts, $78.2 million will become payable within twelve months from September 30, 2025. The Company is, from time to time, involved in various claims, legal proceedings, and complaints arising in the ordinary course of business. It does not believe that adverse decisions in any pending or threatened proceedings, or any amount it may be required to pay by reason thereof, will have a material adverse effect on the financial condition or future results of operations of the Company. Level 1 Financial assets Cash $ 3,939 $ 3,939 $ - $ - Derivative assets 2,692 2,511 181 - $ 6,631 $ 6,450 $ 181 $ - Financial liabilities Derivative liabilities $ 861 $ - $ 861 $ - Other liabilities 2,007 - 2,007 - $ 2,868 $ - $ 2,868 $ - Level 1 Financial assets Cash and cash equivalents $ 8,514 $ 8,514 $ - $ - Derivative assets 4,801 4,507 294 - $ 13,315 $ 13,021 $ 294 $ - Financial liabilities Derivative liabilities $ 3,213 $ - $ 3,213 $ - Borrowings embedded option 2,332 - 2,332 - --- Other liabilities 1,475 - 1,475 - $ 7,020 $ - $ 7,020 $ - December 31, 2024 Level 2 Level 3 Level 3 Level 2 September 30, 2025