SEDAR Interim Financial Statements

VITALITY PRODUCTS INC. CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited) (Expressed in Canadian Dollars) FOR THE NINE MONTHS ENDED OCTOBER 31, 2025 AND 2024 VITALITY PRODUCTS INC. NOTICE TO READER The condensed interim statements of financial position of Vitality Products Inc. as at October 31, 2025 and 2024 and the condensed interim statements of loss and comprehensive loss, changes in equity and cash flows for the nine months then ended have not been reviewed by an auditor. These condensed interim financial statements are the responsibility of the Company’s management. These condensed interim financial statements have been prepared by management of the Company in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) using accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). VITALITY PRODUCTS INC. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited) (Expressed in Canadian Dollars) Assets October 31, 2025 January 31, 2025 Current: Cash $ 144,175 $ 110,847 Short-term investment (Note 4) - 51,676 Accounts and other receivables (Notes 5 and 9) 153,431 182,964 Inventories (Note 6) 88,894 82,328 Prepaid expenses 24,082 12,312 410,582 440,127 Property and equipment (Notes 7 and 16) 6,482 7,767 Investment property (Notes 8, 12 and 16) 238,619 238,689 $ 655,683 $ 686,583 Liabilities Current: Accounts payable and accrued liabilities (Note 12) $ 152,083 $ 153,188 Amounts owing to related parties (Note 12) 1,284,863 1,290,318 Redeemable preference shares (Notes 10 and 12) 727,404 714,201 2,164,350 2,157,707 Shareholders’ Deficiency Common shares, net of share issuance cost (Note 11) 12,505,409 12,505,409 Reserves - warrants (Note 11) 881,931 881,931 Reserves - equity settled employee benefits (Note 11) 834,974 834,974 Deficit (15,730,981) (15,693,438) (1,508,667) (1,471,124) $ 655,683 $ 686,583 Nature of Operations and Going Concern (Note 1) Other Commitments and Contingencies (Notes 9 and 16) Approved and authorized by the Board on December 30, 2025 “Cheryl A. Grant” (signed) , Director “W. Douglas Grant” (signed) , Director - See accompanying Notes to the condensed interim financial statements - VITALITY PRODUCTS INC. CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited) (Expressed in Canadian Dollars) Three Months Ended Oct. 31, 2025 Nine Months Ended Oct. 31, 2025 Three Months Ended Oct. 31, 2024 Nine Months Ended Oct. 31, 2024 Sales $ 202,360 $ 635,087 $ 194,455 $ 557,495 Cost of sales (Notes 6 and 9) 52,339 178,017 58,790 156,100 Gross margin 150,021 457,070 135,665 401,395 General selling expenses: Promotion (Note 9) 15,610 55,801 20,267 71,709 Selling fees (Note 9) 6,955 20,332 6,749 16,891 22,565 76,133 27,016 88,600 General and administrative expenses: Consulting fees (Note 9) 9,156 33,884 12,714 21,369 Depreciation 452 1,355 583 5,716 Directors’ fees (Note 12) - 1,050 - 1,400 Filing and transfer agent fees 4,518 18,795 4,602 19,675 Foreign exchange (gain) loss 78 (101) (44) (138) Office 5,906 17,187 6,812 15,584 Professional fees 8,174 25,290 10,532 40,788 Rent and administration (Note 12) 9,390 27,945 8,296 23,625 Share-based compensation (Note 12) - - - 19,000 Telephone 605 1,800 409 2,322 Travel (Note 9) 3,248 8,347 4,236 9,077 Wages and salary (Notes 9 and 12) 88,214 2 --- 70,183 89,378 278,092 129,741 405,735 137,518 436,510 Other revenues and expenses: Interest income - (489) (1,093) (3,233) Interest expense (Note 16) 3 31 - 990 Accrued dividends on redeemable preference shares (Notes 10 and 12) 4,449 13,203 4,449 13,203 156,758 494,613 167,890 536,070 Net loss and comprehensive loss $ 6,737 $ 37,543 $ 32,225 $ 134,675 Loss per share Basic and diluted (Note 17) $ 0.00 $ 0.00 $ 0.00 $ 0.00 Weighted average number of common shares outstanding Basic and diluted 41,411,285 41,411,285 41,411,285 41,411,285 - See accompanying Notes to the condensed interim financial statements - VITALITY PRODUCTS INC. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Expressed in Canadian Dollars) Common Common Shares Shares Reserves Deficit Total Number $ $ $ $ Balance at January 31, 2024 41,411,285 12,505,409 1,697,905 (15,547,375) (1,344,061) Share-based compensation - - 19,000 - 19,000 Net loss - - - (134,675) (134,675) Balance at October 31, 2024 41,411,285 12,505,409 1,716,905 (15,682,050) (1,459,736) Net loss - - - (11,388) (11,388) Balance at January 31, 2025 41,411,285 12,505,409 1,716,905 (15,693,438) (1,471,124) Net loss - - - (37,543) (37,543) Balance at October 31, 2025 41,411,285 12,505,409 1,716,905 (15,730,981) (1,508,667) - See accompanying Notes to the condensed interim financial statements - VITALITY PRODUCTS INC. CONDENSED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) (Expressed in Canadian Dollars) Three Months Ended Oct. 31, 2025 Nine Months Ended Oct. 31, 2025 Three Months Ended Oct. 31, 2024 Nine Months Ended Oct. 31, 2024 Operating Activities: Net loss $ (6,737) $ (37,543) $ (32,225) $ (134,675) Adjustments for non-cash items: Depreciation of property and equipment 429 1,285 556 5,637 Depreciation of improvement on investment property 23 70 27 79 Share-based compensation - - - 19,000 Accrual of dividends on redeemable preference shares 4,449 13,203 4,449 13,203 Accrual of interest on short-term investment - 1,676 (1,093) 969 Changes in non-cash receivables, payables and inventories: (Increase) Decrease in accounts receivable (11,760) 29,533 1,117 21,383 (Increase) Decrease in inventories 46,686 (6,566) 35,909 78,008 (Increase) Decrease in prepaid expenses and security deposit (2,715) (11,770) 4,023 21,848 Increase (Decrease) in accounts payable and accrued liabilities 3,027 (1,105) 19,316 13,911 Increase (Decrease) in the amounts owing to related parties 1,933 (5,455) (728) (4,606) Cash (used) provided by operating activities 35,335 (16,672) 31,351 34,757 Investing Activities: Purchase of short-term investment - - - (100,000) Redemption of short-term investment - 50,000 - 100,000 Cash provided by investing activities - 50,000 - - Financing Activities: Repayment of principal portion of lease liabilities - - - (4,169) Cash used by financing activities - - - (4,169) Net increase in cash 35,335 33,328 31,351 30,588 Cash, beginning 108,840 110,847 64,667 65,430 Cash, ending $ 144,175 $ 144,175 $ 96,018 $ 96,018 - See accompanying Notes to the condensed interim financial statements - VITALITY PRODUCTS INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED OCTOBER 31, 2025 AND 2024 (Unaudited) (Expressed in Canadian Dollars) 1. Nature of Operations and Going Concern: Vitality Products Inc. (the “Company”) is a publicly traded company that was incorporated under the Province of British Columbia on February 29, 1984. The head office of the Company is located at #304 - 83 --- 7 West Hastings Street, Vancouver, BC, Canada, V6C 3N6. The Company is listed on the TSX Venture Exchange (TSX-V) and trades under the symbol "VPI". The Company is in the business of manufacturing, marketing, and distributing natural health products, including vitamins, minerals and nutritional supplements. These financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. During the periods ended October 31, 2025 and 2024, the Company experienced operating losses and had a significant working capital deficiency for the Company’s current liabilities exceeded current assets. The operations of the Company have been primarily funded by the issuance of share capital and through advances by related parties. Continued operations are dependent on the Company’s ability to generate profitable operations in the future, raise financing through the issue of additional equity and the continued financial support from related parties, none of which is certain. These circumstances indicate the existence of material uncertainties that cast significant doubt as to the Company’s ability to continue as a going concern. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to twelve months from the end of the reporting period. These financial statements do not include any adjustments relating to the realization of assets and liquidation of liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. As at October 31, 2025 As at January 31, 2025 Deficit $ 15,730,981 $ 15,693,438 Working capital (deficit) (1,753,768) (1,717,580) 2. Basis of Presentation: a) Statement of Compliance – These condensed interim financial statements are unaudited and have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) using accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). Accordingly, certain information and disclosure normally included in annual financial statements prepared using accounting policies consistent with IFRS as issued by the IASB and interpretations of the IFRIC have been omitted or condensed. The notes presented in these condensed interim financial statements include only significant events and transactions occurring since the Company’s last fiscal year end and they do not include all of the information required in the Company’s most recent annual financial statements. These condensed interim financial statements have been prepared using the same accounting policies and methods as those used in the Company’s most recent annual financial statements and should be read in conjunction with the financial statements of the Company for the years ended January 31, 2025 and 2024, which were prepared in accordance with IFRS as issued by the IASB and interpretations of the IFRIC. There have been no significant changes in judgments or sources of estimation uncertainty from those disclosed in the Company’s financial statements for the years ended January 31, 2025 and 20 --- 24. The condensed interim financial statements of the Company for the nine months ended October 31, 2025 and 2024 have been prepared by management, reviewed by the Audit Committee and approved and authorized for issue by the Board of Directors on December 30, 2025. Shortly thereafter, the financial statements are made available to shareholders. b) New and Amended Standards and Interpretations – At the date of authorization of the financial statements, the IASB and IFRIC have not issued any new and revised standards and interpretations which could be applicable to the Company and are not yet effective for the relevant reporting period. The Company generally does not early adopt any new standards or amendments and interpretations. 3. Significant Accounting Policies: These condensed interim financial statements have been prepared using the same accounting policies and methods as those used in the Company’s most recent annual financial statements and should be read in conjunction with the financial statements of the Company for the years ended January 31, 2025 and 2024, which were prepared in accordance with IFRS as issued by the IASB and interpretations of the IFRIC. There have been no significant changes in judgments or sources of estimation uncertainty from those disclosed in the Company’s financial statements for the years ended January 31, 2025 and 2024. 4. Short-term Investment: Short-term investment, measured at amortized cost, consisted of one guaranteed investment certificate (“GIC”) with a balance of $Nil at period-end that earned interest at the annual interest rate of 4.35%. The maturity date of the GIC was April 23, 2025. 5. Accounts and Other Receivables: The balance of accounts receivable at period-end is as follows: October 31, 2025 $ January 31, 2025 $ Current Trade receivables 119,286 156,762 Less: Allowance for doubtful accounts (1,363) (1,865) Total trade receivables 117,923 154,897 Government assistance program receivable (Note 9) 35,508 28,067 Total receivables 153,431 182,964 The allowance for doubtful accounts balance at period-end is as follows: October 31, 2025 $ January 31, 2025 $ Allowance for doubtful accounts, opening 1,865 1,535 (Decrease) Increase to prior year allowance (502) 330 Allowance for doubtful accounts, closing 1,363 1,865 6. Inventories: The total carrying value of inventories by classification: October 31, 2025 $ January 31, 2025 $ Finished goods 65,327 74,338 Work in process 23,567 7,990 Total inventories 88,894 82,328 Inventories amounting to $178,010 (2024 - $155,591) were recognized as an expense in the period (included in cost of sales). 7. Property and Equipment: Computer Equipment $ Office Furniture and Equipment $ Right-of-Use Asset Office (Note 16) $ Total $ Cost As at January 31, 2024 5,643 18,302 87,827 111,772 Additions - - - - Disposals - - (87,827) (87,827) As at January 31, 2025 5,643 18,302 - 23,945 Additions - - - - Disposals - - - - As at October 31, 2025 5,643 18,302 - 23,945 Accumulated Depreciation As at January 31, 2024 3,362 10,590 83,859 97,811 Depreciation 684 1,542 3,968 6,194 Disposals - - (87,827) (87,827) As at January 31, 2025 4,046 12,132 - 16,178 Depreciation 359 926 - 1,285 Disposals - - - - As at October 31, 2025 4,405 13,058 - 17,463 Net Book Value As at January 31, 2024 2,281 7,712 3,968 13,961 As at January 31, 2025 1,597 6,170 - 7,767 As at October 31, 2025 1,238 5,244 - 6,482 8. Investment Property: Cost $ Accumulated Amortization $ Carrying Value $ Cost As a --- t January 31, 2024 244,660 5,866 238,794 Amortization - 105 (105) As at January 31, 2025 244,660 5,971 238,689 Amortization - 70 (70) As at October 31, 2025 244,660 6,041 238,619 The Company holds one investment property which is raw land located in Whatcom County, Washington State that was purchased on September 12, 2002 with a historical cost of $237,750 (US$150,000). Included in the balance is the cost of improvements to the land net of amortization. Management has estimated the fair value of the investment property to be in the range of $1,076,936 to $1,191,255 (2024 - $948,429 to $1,049,384) based on comparable market prices for undeveloped land in Whatcom County. This is a level 2 fair value determination which uses valuation techniques based on inputs that are other than quoted prices that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices). 9. Government Assistance: The Company applies for government assistance and has been successful in receiving funding, subject to certain conditions, for the following programs: • Digital and consumer marketing programs • Youth employment and intern programs Total government assistance has been recorded against expenses recorded on the statement of loss and comprehensive loss as follows: October 31, 2025 $ October 31, 2024 $ Sales discounts 145 - Cost of sales - 2,284 Promotion 9,438 11,298 Selling fees 1,805 530 Consulting fees 3,827 3,040 Travel (49) 1,966 Wages and salary 37,182 28,989 Total government assistance 52,348 48,107 Included in accounts and other receivables as at October 31, 2025 is $35,508 (2024 - $14,589) for a government assistance receivable. 10. Redeemable Preference Shares: a) Authorized – No maximum number of Class "A" Preferred shares with a par value of $10 each. b) Issued – October 31, 2025 October 31, 2024 Shares Amount Shares Amount $ $ Class A, Series 1 (a) 2,500 74,627 2,500 73,127 Class A, Series 3 (b) 26,920 652,777 26,920 636,625 727,404 709,752 (a) Class A, Series 1 The Class A, Series 1 preference shares have a 6% per annum cumulative dividend payable annually commencing January 31, 1992, are redeemable by the Company and retractable by the holder. The redemption price is $10 per share plus any cumulative dividends. Included in the balance as at October 31, 2025 are aggregate cumulative preference share dividends in arrears of $49,627 (2024 - $48,127). 10. Redeemable Preference Shares: (Continued) b) Issued – (Continued) (b) Class A, Series 3 The Class A, Series 3 preference shares have a 6% per annum cumulative dividend payable annually commencing January 31, 2002, are redeemable by the Company and retractable by the holder. The redemption price is $10 per share plus any cumulative dividends. The Company may force conversion of these shares and accumulated dividends into the Company’s common shares at a forced conversion price. The number of shares that the Company will issue under forced conversion is determined by using a price equal to the lesser of: - the then-current market price of the Company’s common share and - $0.25 per preference share plus all unpaid dividends accrued on the preference shares thereon to the date of conversion. Included in the balance as at October 31, 2025 are aggregate cumulative preference share dividends in arrears of $383,577 (2024 - $367,425). 11. Capital Stock and Reserves: a) Authorized – No maximum number of voting Common shares without par value. No maximum number of Cla --- ss "B" Preference shares with a par value of $50 each. b) Issued and Fully Paid – Common shares: Number of Shares Share Capital Reserves - Warrants Reserves - Equity Settled Employee Benefits Balance, January 31, 2024 41,411,285 $ 12,505,409 $ 881,931 $ 815,974 Share-based compensation - - - 19,000 Balance, January 31, 2025 41,411,285 $ 12,505,409 $ 881,931 $ 834,974 - - - - Balance, October 31, 2025 41,411,285 $ 12,505,409 $ 881,931 $ 834,974 c) Options – On June 8, 2023, the Board approved the adoption of a 20% fixed share option plan, subject to shareholder and regulatory approval (the “Fixed Option Plan”), to align with the current TSX Venture Exchange policies on equity compensation plans. The Fixed Option Plan was approved by the Shareholders on July 18, 2023, and received regulatory approval on November 24, 2023. A copy of the Fixed Option Plan was included in the Company’s Management Information Circular dated June 8, 2023, and is available on Sedar+ at www.sedarplus.com. 11. Capital Stock and Reserves: (Continued) c) Options – (Continued) The purpose of the Fixed Option Plan is to promote the interests of the Company and its shareholders by aiding the Company in attracting and retaining employees, officers, consultants, advisors and non- employee directors capable of assuring the future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of the Company’s business and to compensate such persons through stock option arrangements and provide them with opportunities for stock ownership in the Company, thereby aligning the interests of such persons with the Company’s shareholders. The Fixed Option Plan superseded and replaced the Company’s former rolling stock option plan (the “Rolling Option Plan”). All outstanding Options under the Company’s Rolling Plan are deemed Options under the Fixed Option Plan, and all future stock option grants will be made pursuant to, or as otherwise permitted by, the Fixed Option Plan. No further stock option grants will be made pursuant to the Company’s Rolling Option Plan. In accordance with the terms of the Fixed Option Plan, the exercise price of an option is set by the Board at the time such option is allocated. The maximum number of Shares that may be reserved for issuance under the Fixed Option Plan, together with all other security based compensation plans, is 8,282,257, which represents 20% of the outstanding Shares of the Company upon the date of approval of the Fixed Option Plan by the Board. For stock options granted to directors, officers, employees and consultants, the Company recognizes share-based compensation expense based on the estimated fair value of stock options granted as calculated using the Black-Scholes option-pricing model. During the period ended October 31, 2025, the Company granted no stock options. During the year ended January 31, 2025, the Company granted 500,000 stock options with a weighted average fair value of $0.038 per option to directors, officers, employees and consultants of the Company. These options are not subject to any vesting schedule. Share-based compensation totaling $19,000 was expensed during the year ended January 31, 2025. The following assumptions were used for the Black-Scholes valuation of stock options granted: January 31, 2025 Risk-free interest rate 3.26% Expected life of options 5 years Fair value per option granted $ 0.038 Annualized volatility 185% Dividend rate 0.00% A summary of changes in --- outstanding stock options is as follows: Number Weighted Average Exercise Price Balance, January 31, 2024 1,095,000 $ 0.14 Granted 500,000 $ 0.05 Expired - - Balance, January 31, 2025 1,595,000 $ 0.11 Granted - - Expired (150,000) $ 0.17 Balance, October 31, 2025 1,445,000 $ 0.11 11. Capital Stock and Reserves: (Continued) c) Options – (Continued) As at October 31, 2025, the following stock options were outstanding and exercisable: Stock Options Outstanding and Exercisable Exercise Price Weighted Average Remaining Life (in years) Expiry Date 375,000 $ 0.19 0.72 July 20, 2026 570,000 $ 0.10 1.71 July 19, 2027 500,000 $ 0.05 3.73 July 23, 2029 1,445,000 2.15 d) Reserves - Warrants – During the period ended October 31, 2025, the Company issued no warrants. During the year ended January 31, 2025, the Company issued no warrants. As at October 31, 2025, no warrants were outstanding. 12. Related Party Transactions: The Company is ultimately under the control of the Estate of William Neil Grant and has transactions with other companies under such common control. The Company is also subject to significant influence by Consolidated Firstfund Capital Corp., a company also under the control of the Estate of William Neil Grant. Amounts due to related parties are as follows: October 31, 2025 October 31, 2024 Due to Consolidated Firstfund Capital Corp. $ 6,363 $ 4,787 Due to a company under control of the Estate of W.N. Grant 1,200,000 1,200,000 Due to the Estate of W.N. Grant 72,500 72,500 Due to company directors 6,000 18,000 Amounts owing to related parties $ 1,284,863 $ 1,295,287 Redeemable preference shares, Series 3 held by Consolidated Firstfund Capital Corp. (Note 10) $ 652,777 $ 636,625 Other amounts owed to directors included in accounts payable: $ 22,082 $ 24,448 With the exception of the redeemable preference shares, the terms of amounts due to and from related parties listed above are unsecured, non-interest bearing and have no specific terms of repayment. 12. Related Party Transactions: (Continued) During the period ended October 31, 2025, the Company had the following transactions with related parties: a) The Company reimbursed $18,796 (2024 - $12,993) owing to Consolidated Firstfund Capital Corp. (“CFC”) for various general and administrative (“G&A”) expenses paid by CFC on behalf of the Company such as telephone, printing, courier and office expenses. In addition, the Company had the following transactions with Consolidated Firstfund Capital Corp.: • The Company rents office space from CFC on a monthly basis, for an aggregate rent expense of $13,500 (2024 - $13,500). • CFC paid for G&A expenses of $19,340 (2024 - $15,387) on behalf the Company. • The Company recorded additional accrued dividends payable to CFC on the redeemable preference shares Series 3 of $12,081 (2024 - $12,081). b) The Company leases its investment property to a company under common control on a month-to-month basis for no consideration. Under the terms of this arrangement, the related party is responsible for paying the property tax and maintaining the land for future development or sale. Property tax paid in the current fiscal year was $2,153 (2024 - $1,945). The related party is entitled to any incidental income generated by short-term subleasing to a farmer for farming activity. Under this arrangement, the related party also has an indefinite-lived right of first refusal to purchase the property. The purchase price will be determined based on the market value --- of the property at the time of the purchase. All of these transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Key management compensation is accrued and paid to the Chief Executive Officer, Chief Financial Officer and Directors as follows: October 31, 2025 October 31, 2024 Key management personnel compensation: Directors’ fees $ 1,050 $ 1,400 Share-based compensation recognized as the valuation of the stock options granted to officer and directors - 19,000 Wages and salary paid to officers and directors 112,500 142,500 $ 113,550 $ 162,900 13. Financial Instruments: a) Currency Risk – Currency risk is the risk that the value of financial assets and liabilities will fluctuate due to changes in foreign currency exchange rates. The Company is exposed to currency risk primarily arising from sales in the United States (See Note 15), accounts receivable balances and cash balances denominated in U.S. dollars. The Company does not use derivative instruments to hedge its exposure to this risk. The statements of financial position include the following amounts expressed in Canadian dollars with respect to financial assets and liabilities which are denominated in US dollars: October 31, 2025 October 31, 2024 Cash $ 17,525 $ 9,234 Accounts receivable 2,028 3,670 Net exposure $ 19,553 $ 12,904 A 10% strengthening (weakening) of the U.S. dollar against the Canadian currency would have decreased (increased) the Company’s net loss from these account balances by $1,955 (2024 - $1,290). b) Liquidity Risk – Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity by maintaining adequate cash balances and by raising equity or debt financing. The Company has no assurance that such financing will be available on favourable terms. As at October 31, 2025, the Company is exposed to liquidity risk as a result of its current liabilities exceeding its current assets and the amounts owing to related parties of $1,284,863 (2024 - $1,295,287) are due on demand. In general, the Company attempts to avoid exposure to liquidity risk by obtaining corporate financing through the issuance of common shares. All of the Company's financial liabilities have a maturity of less than one year. c) Credit Risk – Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause a financial loss. The financial instruments that subject the Company to credit risk consist primarily of cash, short-term investment, and accounts receivable. The maximum amount of credit risk exposure is limited to the carrying amount of the balances in the financial statements. The Company mitigates the risk associated with cash and short-term investment by dealing only with large Canadian financial institutions with good credit ratings. The Company views the credit risk associated with accounts receivable as minimal as the balance consists of government assistance program claims due from the Government of Canada and accounts receivable due from customers, primarily distributors, with no history of defaults. An allowance for doubtful accounts under the expected credit loss model has been accrued as disclosed in Note 5. As at October 31, 2025, the Company has a concentration of credit risk in its accounts receivable from three of its major customers representing approximately 51%, 33% a --- nd 4% of trade receivables (2024 - 52%, 31% and 4%). 14. Capital Management: The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and to maintain a flexible capital structure which will allow it to pursue its operation. Therefore, the Company monitors the level of risk incurred in its operation relative to its capital structure. The Company considers its capital structure to include shareholders’ equity and its redeemable preference shares. The Company monitors its capital structure and makes adjustments in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue new equity if available on favourable terms. The Company’s investment policy is to hold cash in interest-bearing bank accounts. The Company is not subject to externally imposed capital requirements. There has been no change in the Company’s approach to capital management during the period ended October 31, 2025. 15. Segmented Information and Economic Dependence: The Company operates in a single segment in Canada which is business of manufacturing, marketing, and distributing natural health products, including vitamins, minerals and nutritional supplements. All of the Company’s employees are located in Canada. The following table illustrates revenue earned from external customers located in Canada and the United States for the periods ended October 31, 2025 and 2024: 2025 $ % of revenue 2024 $ % of revenue Canada 620,480 97.7% 544,115 97.6% United States 14,607 2.3% 13,380 2.4% 635,087 557,495 For the periods ended October 31, 2025 and 2024, the Company recorded the following revenue from its major customers: 2025 $ % of revenue 2024 $ % of revenue Customer 1 191,796 30.2% 181,186 32.5% Customer 2 152,421 24.0% 133,799 24.0% Customer 3 45,091 7.1% 62,997 11.3% For the periods ended October 31, 2025 and 2024, the Company recorded the following revenue from its main products: 2025 $ % of revenue 2024 $ % of revenue Product 1 361,999 57.0% 312,197 56.0% Product 2 40,646 6.4% 40,697 7.3% Product 3 36,200 5.7% 37,910 6.8% The Company has two suppliers for the manufacture of its products located in Canada. 16. Leases: a) As a Lessor – The Company leases out its investment property to a related party under common control. The Company has classified this lease as an operating lease because it does not transfer substantially all the risks and rewards incidental to the ownership of the assets. See Note 12 for details of this lease. b) As a Lessee – The Company has certain leases with lease terms of 12 months or less. The Company applied the short- term lease recognition exemptions for these leases. Expense relating to short-term leases for the period ended October 31, 2025 is $27,945 (2024 - $23,625). The Company entered into a lease contract for an office on May 1, 2022 with a term of 36 months. During the year ended January 31, 2024, the Company exercised its right to terminate the lease after the initial year of the term by giving the landlord no less than three months written notice. The Company’s modification of the office lease agreement to now end on February 29, 2024 shortened the lease term by 14 months. The modification led to a decrease in the right-of-use assets as remeasured based on the revised lease term. Correspondingly, lease liabilities decrease due to the reduced number of future lease payments. The modi --- fication impacted depreciation and interest expenses. 17. Earnings Per Share: Options and warrants disclosed in Note 11 were not included in the calculation of diluted earnings per share because they are antidilutive for the periods presented.