SEDAR Interim Financial Statements

WESTBOND ENTERPRISES CORPORATION INTERIM CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 and 2024 (Unaudited – See Notice to Reader) WestBond Enterprises Corporation 101 – 7403 Progress Way, Delta, BC Canada V4G 1E7 Tel: 604-940-3939 Fax: 604-940-9161 www.WestBond.ca [email protected] WestBond Enterprises Corporation Notice to Reader The accompanying interim consolidated financial statements of WestBond Enterprises Corporation for the three and six month periods ended September 30, 2025 and 2024 have been prepared by and are the responsibility of the company’s management. They are unaudited and have not been reviewed by independent auditors. September 30 March 31 2025 2025 $ $ ASSETS Non-Current Assets Plant and equipment 6,592,675 6,908,218 Right-of-use assets 1,132,326 1,271,210 Deferred tax asset 95,780 83,280 7,820,781 8,262,708 Current Assets Inventory 2,171,505 2,117,447 Trade and other receivables 1,848,009 1,677,686 Prepaid expenses 282,590 219,250 Cash and cash equivalents 277,434 143,266 4,579,538 4,157,649 Total Assets 12,400,319 12,420,357 EQUITY AND LIABILITIES Equity Common shares issued and outstanding 4,206,910 4,206,910 Stock options 158,550 158,550 Contributed surplus 326,989 326,989 Retained earnings 3,240,914 2,968,574 Equity attributable to common shareholders 7,933,363 7,661,023 Liabilities Non-Current Liabilities Lease liability 1,053,904 1,210,023 Deferred tax liability 1,614,239 1,696,300 2,668,143 2,906,323 Current Liabilities Revolving bank loans - 145,000 Lease liability 309,232 302,390 Income tax payable 145,723 134,223 Trade and other payables 1,343,857 1,271,398 1,798,812 1,853,011 Total Liabilities 4,466,955 4,759,334 Total Equity and Liabilities 12,400,319 12,420,357 WestBond Enterprises Corporation Consolidated Statements of Financial Position Canadian Dollars (Unaudited) The accompanying notes are an integral part of these interim consolidated financial statements. 2025 2024 2025 2024 Notes $ $ $ $ Sales 5 3,030,669 2,577,348 5,758,083 4,844,724 Cost of sales 6 2,485,058 2,178,877 4,842,427 4,191,475 Gross Profit 545,611 398,471 915,656 653,249 Selling and distribution expenses 7 48,465 48,053 101,219 89,226 General and administrative expenses 8 234,763 222,441 404,296 383,906 Operating Profit (Loss) 262,383 127,977 410,141 180,117 Foreign exchange (gain) loss 6,447 5,711 1,896 9,541 Interest expense-bank loans 254 5,099 1,789 16,179 Interest expense on lease liability 15,563 18,842 31,783 38,234 Profit (Loss) Before Tax 240,119 98,325 374,673 116,163 Income tax expense (recovery) 65,489 27,265 102,333 32,537 Profit (Loss) and Comprehensive Income 174,630 71,060 272,340 83,626 Weighted average shares outstanding 35,625,800 35,625,800 35,625,800 35,625,800 Earnings per share, basic 0.005 0.002 0.008 0.002 Fully diluted weighted average shares outstanding 35,682,092 35,625,800 35,665,352 35,625,800 Earnings per share, fully diluted 0.005 0.002 0.008 0.002 Three months ended September 30 Six months ended September 30 Consolidated Statements of Profit and Comprehensive Income Canadian Dollars (Unaudited) WestBond Enterprises Corporation The accompanying notes are an integral part of these interim consolidated financial statements. Common Shares Stock Options Contributed Surplus Retained Earnings Total $ $ $ $ $ Balance as at March 31, 2024 4,206,910 65,800 326,989 3,020,954 7,620,653 Grant of stock options - 92,750 - - 92,750 Profit for the period - - - (52,380) (52,380) Balance as at March 31, 2025 4, --- 206,910 158,550 326,989 2,968,574 7,661,023 Balance as at March 31, 2025 4,206,910 158,550 326,989 2,968,574 7,661,023 Profit (Loss) for the period - - - 272,340 272,340 Balance as at September 30, 2025 4,206,910 158,550 326,989 3,240,914 7,933,363 WestBond Enterprises Corporation Consolidated Statements of Changes in Equity (Unaudited) Canadian Dollars The accompanying notes are an integral part of these interim consolidated financial statements. Notes 2025 2024 2025 2024 $ $ $ $ 174,630 71,060 272,340 12,566 216,082 239,085 432,815 240,345 69,822 69,822 138,884 69,062 - Expected credit loss on trade receivables - - (30,000) (20,000) 254 5,099 1,789 11,080 - interest expense on lease liabilities 15,563 18,842 31,783 19,392 65,489 27,265 102,333 5,272 (40,934) 12,957 (185,394) - 500,906 444,130 764,550 337,717 Decrease (increase) in - inventory 21,231 295,904 (54,058) 35,545 (312,554) (67,947) (140,323) (284,051) - prepaid expenses (119,631) 97,088 (63,340) (93,977) 110,086 (131,928) 82,821 200,615 200,038 637,246 589,650 195,848 9 (58,896) (89,763) (132,615) (24,793) (58,896) (89,763) (132,615) (24,793) (254) (5,099) (1,789) (11,080) Increase (decrease) in revolving bank loans - (430,000) (145,000) (145,000) (15,838) (19,092) (26,801) (13,082) Principal portion of lease payments (75,058) (68,577) (149,277) (67,809) (91,150) (522,768) (322,867) (236,971) 49,992 24,715 134,168 (65,916) 227,442 45,085 143,266 111,001 277,434 69,800 277,434 45,085 September 30 Net Cash Flow from Operating Activities - trade and other payables Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Period Cash and Cash Equivalents at the End of the Period Net Cash Flow from Financing Activities Net Cash Flow from Investing Activities Financing Activities Interest paid on bank loans Interest portion of lease payments September 30 (Unaudited) Six months ended Three months ended WestBond Enterprises Corporation Consolidated Statements of Cash Flows Operating Activities Profit (Loss) Canadian Dollars Purchase of plant and equipment - income tax expense - depreciation of plant and office equipment - depreciation of right-of-use assets Adjustments to reconcile profit to cash flows from operating activities - interest expense on bank loans - income tax recovered (paid) Investing Activities - trade and other receivables Cash flows from operating activities before changes in non-cash working capital The accompanying notes are an integral part of these interim consolidated financial statements. WESTBOND ENTERPRISES CORPORATION Notes to the Interim Consolidated Financial Statements September 30, 2025 and 2024 (Canadian Dollars) (unaudited) 1. GENERAL INFORMATION WestBond Enterprises Corporation and its wholly owned subsidiary, WestBond Industries Inc., (together, the company) are a paper manufacturer and converter that manufactures disposable products for the medical, personal hygiene and food service/hospitality markets. The company’s manufacturing facilities are in Canada and its sales are primarily to Canada and the United States of America. The company is incorporated in British Columbia, Canada, and has its principal place of business at 101 – 7403 Progress Way, Delta, British Columbia. The interim consolidated financial statements of the company for the three and six month periods ended September 30, 2025 were approved and authorized for issue by resolution of the directors on November 4, 2025. 2. BASIS OF PREPARATI --- ON AND INTERIM PERIOD REPORTING The interim consolidated financial statements of the company have been prepared in compliance with International Accounting Standard 34, Interim Financial Reporting, (“IAS 34”). The policies applied in these interim consolidated financial statements are based on International Financial Reporting Standards (“IFRS”) issued and outstanding as of the date the Board of Directors approved the statements. Any subsequent changes to IFRS that are given effect in the company’s annual consolidated financial statements for the year ending March 31, 2026 could result in restatement of these interim consolidated financial statements. The interim consolidated financial statements have been prepared under the historical cost convention. The same accounting policies and methods of computation were followed in the preparation of these interim consolidated financial statements as in the consolidated financial statements for the year ended March 31, 2025. The disclosure contained in these interim consolidated financial statements is condensed and includes only selected explanatory notes and does not duplicate or repeat disclosure reported in the consolidated financial statements for the year ended March 31, 2025 that has not changed materially since their date of issue. Accordingly, these interim consolidated financial statements should only be read in conjunction with the consolidated financial statements of the company for the year ended March 31, 2025. 3. RELATED PARTY TRANSACTIONS During the three months ended September 30, 2025 the company incurred total compensation, comprising short-term employee benefits, of $112,724 (2024 – $113,168), to the directors and officers of the company. Subsequent to March 2025, Mr. J. Douglas Seppala is not associated with DuMoulin Black LLP (a law firm with which Mr. Seppala, a director of the company, was associated) and does not provide legal services to the Company. Any remuneration paid to Mr. Seppala is for acting in his capacity as a member of the board of directors of the Company or committees thereof. WESTBOND ENTERPRISES CORPORATION Notes to the Interim Consolidated Financial Statements September 30, 2025 and 2024 Canadian Dollars (unaudited) 2025 2024 2025 2024 $ $ 5. SALES Personal hygiene products 743,033 548,236 1,329,617 1,123,547 Clinical products 411,142 269,434 836,561 603,098 Wipes 561,137 499,265 1,113,509 1,061,147 Napkins & Parent Rolls (Air laid) 1,313,507 1,243,323 2,472,908 2,037,707 Other products 1,850 17,090 5,488 19,225 3,030,669 2,577,348 5,758,083 4,844,724 6. COST OF SALES Materials 1,329,335 1,121,802 2,553,033 2,137,560 Production labour 309,926 240,144 581,619 451,687 Factory overhead labour 122,962 124,434 255,653 244,587 Variable overhead 124,097 108,324 255,694 205,839 Fixed overhead 96,844 84,656 193,369 176,519 Shipping 223,374 198,464 446,048 372,650 Depreciation of plant equipment 213,446 235,979 427,571 473,193 Depreciation of right-of-use assets 65,074 65,074 129,440 129,440 2,485,058 2,178,877 4,842,427 4,191,475 7. SELLING AND DISTRIBUTION EXPENSES Wages, commissions and other employee benefits 42,248 43,286 83,852 76,956 Other 6,217 4,767 17,367 12,270 48,465 48,053 101,219 89,226 8. GENERAL AND ADMINISTRATIVE EXPENSES Administration and office 40,432 42,430 74,461 72,673 Corporate promotion 2,731 2,528 3,129 2,926 Depreciation of right-of-use assets 4,748 4,748 9,444 9,444 Impairment (gain) loss on trade receivables - - (30,000) (19,374) Pro --- fessional fees 19,664 22,329 43,060 39,879 Salaries and other employee benefits 167,188 150,406 304,202 278,358 234,763 222,441 404,296 383,906 9. NON-CASH INVESTING ACTIVITIES Increase (decrease) in accounts payable related to purchase of plant and equipment (6,545) (20,357) (15,343) 28,033 Six months ended September 30 Three months ended September 30