SEDAR Interim Financial Statements

GREENRISE GLOBAL BRANDS INC. CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Unaudited – Prepared by Management) NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS In accordance with National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that an auditor has not reviewed the financial statements. The accompanying unaudited condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditor. 2 GREENRISE GLOBAL BRANDS INC. CONDENSED STATEMENTS OF FINANCIAL POSITION SEPTEMBER 30, 2025, AND DECEMBER 31, 2024 (Expressed in Euros) The accompanying notes are an integral part of these condensed financial statements. As at As at September 30, December 31, 2025 2024 Assets Current assets Cash € 1,306 € 13,532 Loans receivable (Note 4) - 80,000 1,306 93,532 Total assets € 1,306 € 93,532 Liabilities and shareholders' equity Current liabilities Trade and other payables (Note 8) € 149,583 € 169,524 Loans payable (Note 5) 2,735,127 2,624,288 2,884,710 2,793,812 Total liabilities 2,884,710 2,793,812 Share capital (Note 7) 6,318,789 5,678,306 Share-based payment reserve (Note 7) 2,648,925 2,648,925 87,246 727,729 Foreign currency translation reserve 22,787 22,787 Deficit (11,961,151) (11,778,027) Total shareholders' deficiency (2,883,404) (2,700,280) Total liabilities and shareholders’ equity (deficiency) € 1,306 € 93,532 Nature and Continuance of Operations (Note 1) Shareholders' equity Obligations to issue shares (Note 6) 3 GREENRISE GLOBAL BRANDS INC. CONDENSED STATEMENT OF COMPREHENSIVE LOSS THREE AND NINE MONTHS ENDED SEPTEMBER 30, (Expressed in Euros) The accompanying notes are an integral part of these condensed financial statements. 2025 2024 2025 2024 Expenses General and administrative € (10,104) € (22,284) € (68,487) € (42,905) Interest expense (Note 5) (46,104) (47,432) (137,539) (135,630) Transfer agent, filing fees and shareholder communication (2,567) (4,730) (17,716) (11,720) (58,775) (74,446) (223,742) (190,255) Other income (expense) Interest income and accretion (Note 4) - 22,607 - 66,170 Gain on assignment of loan receivable (Note 4) 20,000 - 20,000 - Foreign exchange gain (loss) 4,708 - 20,618 - Unrealized gain on derivative liability - - - 1,886 Net and comprehensive loss for the period € (34,067) € (51,839) € (183,124) € (122,199) Basic and diluted loss per share € (0.00) € (0.00) € (0.00) € (0.00) Weighted average number of common shares outstanding - basic and diluted 51,315,421 47,236,039 49,965,625 47,236,039 Three months ended September 30, Nine months ended September 30, GREENRISE GLOBAL BRANDS INC. CONDENSED STATEMENT OF CHANGES IN EQUITY (DEFICIT) NINE MONTHS ENDED SEPTEMBER 30, (Expressed in Euros) 4 The accompanying notes are an integral part of these condensed financial statements. Share-based Obligations to Foreign currency payment issue translation Total Shares Amount reserve shares reserve Deficit equity At December 31, 2023 47,236,039 € 5,678,306 € 2,648,925 € 87,246 € 22,787 € (11,052,177) € (2,614,913) Loss for the year - - - - - (122,199) (122,199) At Mar --- ch 31, 2024 47,236,039 5,678,306 2,648,925 87,246 22,787 (11,174,376) (2,737,112) Exercise of convertible debentures - - - 640,483 - - 640,483 Loss for the period - - - - - (603,651) (603,651) At December 31, 2024 47,236,039 5,678,306 2,648,925 727,729 22,787 (11,778,027) (2,700,280) Issuance of shares 4,419,330 640,483 - (640,483) - - - Loss for the year - - - - - (183,124) (183,124) At September 30, 2025 51,655,369 6,318,789 2,648,925 87,246 22,787 (11,961,151) (2,883,404) Capital Stock GREENRISE GLOBAL BRANDS INC. STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, (Expressed in Euros) 5 The accompanying notes are an integral part of these condensed financial statements. 2025 2024 Operating activities Loss for the period from continuing operations (183,124) € (122,199) € Items not affecting cash: Non-cash loan interest 137,539 106,556 Non-cash foreign exchange (11,153) - Gain on derivative liability - (1,886) Accretion of loans receivable - (37,096) (56,738) - (54,625) Changes in non-cash working capital items: Trade and other payables (19,939) (109,420) Net cash provided by / (used in) operating activities (76,677) (164,045) Investing activities Assignment of loan receivable 80,000 50,400 Net cash provided by investing activities 80,000 50,400 Financing activities Net increase / (decrease) in loans (15,549) 99,306 Net cash provided by / (used in) financing activities (15,549) 99,306 Change in cash during the period (12,226) (14,339) Cash (overdraft), beginning of period 13,532 31,527 Cash, end of period € 1,306 € 17,188 No cash was paid for interest or income taxes during the periods presented. GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 6 1. NATURE OF OPERATIONS AND GOING CONCERN Nature of Operations Greenrise Global Brands Inc. (“the Company” or “Greenrise”) is an investment holding company which holds investments in Germany. Greenrise is incorporated in the Province of British Columbia in Canada, with its registered office located at 224 West 5th Avenue, Vancouver, British Columbia, Canada V5Y 1J4. The Company’s common shares trade on the Canadian Securities Exchange (“CSE”) under the trading symbol “XCX” and on the Frankfurt Stock Exchange under the trading symbol “C4T”. The reporting currency of Greenrise’s condensed interim financial statements is the Euro (“€”). Going Concern These condensed interim financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning that it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. As at September 30, 2025, the Company had an accumulated deficit of €11,961,151 and current liabilities in excess of current assets of €2,883,404. To date, the Company has not generated sufficient revenues to meet its operating and administrative expenses or its other obligations. The Company’s continuation as a going concern is dependent upon its ability to raise equity capital or borrowings sufficient to meet current and future obligations and ultimately attain profitable operations. These factors indicate a material uncertainty exists that may cast significant doubt on the ability of the Company to continue operations as a going concern. Management inte --- nds to finance operating costs over the next twelve months with private placements of the Company’s common shares and loans from related parties. 2. BASIS OF PRESENTATION These condensed interim financial statements have been prepared on an accrual basis in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The financial statements were authorized for issue by the Board of Directors on December 1, 2025. These financial statements have been prepared on the historical cost basis except for certain financial instruments and investments which are measured at fair value. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information. Use of estimates and assumptions The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and contingent assets and liabilities. Significant estimates include the fair value measurements and assumptions relating to financial instruments, changes in equity accounted investments, deferred income taxes and the recoverability of loans receivable. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 7 2. BASIS OF PRESENTATION (cont’d) on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted prospectively in the period in which the estimates are revised. Actual results could significantly differ from those estimates. Significant judgments The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments applied in the Company’s financial statements include the Company’s ability to continue as a going concern and the determination of functional currency. 3. MATERIAL ACCOUNTING POLICY INFORMATION Foreign currency translation Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of the Company is the Euro. These financial statements are presented in Euros. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the period-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined. Exchange differences arising in the translation of monetary items or on settlement of monetary items are recognized in profit or loss in the statement of comprehensive loss in the period in which they arise. Exchange differences arising from the translation of non-monetary items are recognized in other comprehensive income in the statement of comprehensive loss to the extent that gains and losses arising --- on those non-monetary items are also recognized in other comprehensive income. Where the non-monetary gain or loss is recognized in profit or loss, the exchange component is also recognized in profit or loss. Financial instruments Convertible debentures Convertible debentures are classified as financial liabilities at fair value through profit or loss (FVTPL) in accordance with IFRS 9. On initial recognition, the debenture is measured at fair value, and any directly attributable transaction costs are expensed as incurred. Subsequent to initial recognition, the instrument is remeasured at fair value at each reporting date, with changes in fair value recognized in profit or loss. The fair value is determined using a valuation model that considers relevant market inputs, including risk-free interest rates, share price volatility, time to maturity, and the specific terms of the conversion feature. No portion of the instrument is classified as equity, as the Company applied the FVTPL classification due to the presence of embedded features that would otherwise require separation under IAS 32. Classification The Company classifies its financial instruments in the following categories: at fair value through profit and GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 8 3. MATERIAL ACCOUNTING POLICY INFORMATION (cont’d) loss (“FVTPL”), at fair value through other comprehensive income (“FVOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as FVOCI. Financial liabilities are measured at amortized cost unless they are required to be measured at FVTPL or if the Company has opted to measure them at FVTPL. The following table shows the classification of the Company’s financial instruments under IFRS 9: Financial assets / liabilities Cash FVTPL Loans receivable Amortized cost Derivative liability FVTPL Trade and other payables Amortized cost Loans payable Amortized cost Convertible debenture FVTPL Impairment of financial assets at amortized cost The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the credit risk on the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve-month expected credit losses. The Company shall recognize in the statements of comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized. Derecognition Financial assets: The Company derecognizes financial assets only when the contractual rights to cash flows from the --- financial assets expire or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the statements of comprehensive loss. Financial liabilities: The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expired. Generally, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in the statements of comprehensive loss. GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 9 3. MATERIAL ACCOUNTING POLICY INFORMATION (cont’d) Income taxes Income tax expense comprises current and deferred tax. Current and deferred tax is recognized in profit and loss except to the extent that it relates to items recognized directly in equity or in reserves as part of shareholders’ equity. Current tax is the expected tax payable or receivable on the taxable income or loss for the period using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable income will be available against which the asset can be realized. Deferred income tax assets and deferred income tax liabilities are offset only if a legally enforceable right exists to offset current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to the equity owners of the Company by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is determined by dividing the net income (loss) attributable to the equity owners of the Company by the weighted average number of common shares outstanding, adjusted for the dilutive effect of all potential common share issuances upon exercise of options, warrants and similar instruments. For the periods presented, the Company had no dilutive instruments. Reserves Share-based payments The Company’s share option plan allows employees, directors, officers and consultants to acquire shares of the Company. The fair value of options granted is recognized as share-based compensation expense with a corresponding increase in share-based payment reserve in equity. Fair value is measured at grant date, and each tranche is recognized using the graded vesting method over the period during which the options vest. The fair value of the options granted is measured using the Black- Scholes Option Pricing Model, taking into account the terms and conditions upon which the options were granted. At each financial position reporting date, the amount recognized as an --- expense is adjusted to reflect the actual number of share options that are expected to vest. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at the fair value of the share-based payment. Otherwise, share- based payments are measured at the fair value of goods or services received. When options are exercised, the proceeds received, together with any related amount in share-based payments reserve, are credited to share capital. GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 10 3. MATERIAL ACCOUNTING POLICY INFORMATION (cont’d) Foreign currency translation reserve The foreign currency translation reserve records exchange differences arising on translation of the financial statements of subsidiaries and equity accounted investments of the Company that have a functional currency other than the Euro. New accounting standards The Company did not adopt any new accounting standard changes or amendments in the current year. In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements ("IFRS 18") which replaces IAS 1, Presentation of Financial Statements. This standard aims to improve how companies communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss, in particular additional defined subtotals, disclosures about management-defined performance measures and new principles for aggregation and disaggregation of information. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7, Statement of Cash Flows. IFRS 18 is effective for years beginning on or after January 1, 2027. Companies are permitted to apply IFRS 18 before that date. The Company is currently assessing the impact the new standard will have on its financial statements. 4. LOANS RECEIVABLE The Company holds two unsecured loans receivable from CannaCare Health GmbH (“CannaCare”) with a total principal amount of €1,131,000 (December 31, 2024 – €1,131,000) and accrued interest of €37,559 (December 31, 2024 – €37,559) and due on December 31, 2024, and bore interest at 2% and 4% per annum (“CannaCare Loan Receivables”). The CannaCare Loan Receivables are in default for non-repayment. At initial recognition, the fair value of the loans was determined to be €1,026,384, based on a discount rate of 10% per annum. As of December 31, 2024, the recoverable amount of the loans, including accrued interest, was estimated at €80,000. A Company director who is also the controlling shareholder of CannaCare (“Joint Director”) purchased from the Company assignments of claim in the amounts of €80,000 on April 10, 2025, and €20,000 on July 24, 2025, respectively, of the CannaCare Loan Receivables at face value. Refer to Note 8. Nine months ended Year ended September 30, December 31, 2025 2024 Balance, beginning of the period € 80,000 € 410,296 Interest - 33,240 Accretion - (31,782) Payment of interest - (60,400) Impairment - (271,354) Assignment (80,000) - Balance, end of period € - € 80,000 GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 11 5. LOANS PAYABLE As of September 30, 2025, the Company’s loan payables included: a) A secured credit facility for up to €150,000, bearing an interest rate of 15% per --- annum and with an amended maturity date of December 31, 2025. The loan is secured by the CannaCare Loan Receivables (Refer to Note 4). As at September 30, 2025, €127,579 (December 31, 2024 - €110,530), which includes accrued interest, had been drawn down against the credit facility. The director of the lender is also an executive officer of the Company. Refer to Note 8 (a); b) An unsecured drawdown loan facility of €1,587,208 (2024 - €1,607,854), bearing interest at a rate of 10% per annum and with an amended maturity date of December 31, 2025. Accrued interest on the loan totalled €827,299 (December 31, 2024 - €707,544). A director of the lender is an executive officer of the Company. Refer to Note 8 (a); c) A drawdown loan of €193,041 which includes accrued interest (December 31, 2024 - €187,432), bearing an interest rate of 5% per annum, and with an amended maturity date of December 31, 2025, from December 31, 2024. 6. CONVERTIBLE DEBENTURE On June 14, 2022, the Company issued an unsecured convertible debenture in the principal amount of €608,920, bearing interest at a rate of 2% per annum. The debenture is convertible into 4,419,330 common shares of the Company and matured on December 31, 2024. On December 31, 2024, the holder of the convertible debenture, who is also a director of the Company, submitted a formal Notice of Conversion in accordance with the terms of the debenture. The Company completed the conversion of the debenture into common shares on April 15, 2025. The Company has elected to account for the entire convertible debenture at FVTPL under IFRS 9. The fair value at inception was determined by using a 10% discount rate, a risk-free rate of 3.46%-4.06%, a conversion option price of CAD$0.20 and volatility of 100%. The Company determined the fair value of the convertible debenture to be €541,778 on grant, and €453,805 at December 31, 2023. This resulted in a loss on the change in fair value of €29,710 which was recognized in the statement of comprehensive loss for the year ended December 31, 2023. On the date of the Notice of Conversion, the fair value of the liability was determined to be equal to the face value of €640,483 and as a result the Company recognized a loss on the change in fair value of €186,678 during the year ended December 31, 2024. GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 12 7. CAPITAL AND OTHER COMPONENTS OF EQUITY Authorized and issued shares The authorized share capital of the Company is an unlimited number of Class A Voting Common Shares (the “common shares”). As at September 30, 2025, there were 51,655,369 common shares issued and outstanding. On the date of this report, there are 51,655,369 common shares issued and outstanding. Stock options and warrants The Option Plan adopted by the Board of Directors (the "Board") is a "rolling" stock option plan, pursuant to which the Board may, from time to time, in its discretion, and in accordance with CSE and regulatory requirements, grant to directors, officers, employees and consultants, non-assignable and non-transferable options to purchase common shares of the Company, provided that the number of common shares reserved for issuance will not exceed 10% of the then issued and outstanding common shares of the Company. The Company uses a fair value method of accounting for all stock-based payments, with a corresponding credit to reserves. During the nine months ended September 30, 20 --- 25 and the year ended December 31, 2024, the Company granted no options. A continuity of incentive stock options issued outstanding is as follows: Stock options Number Weighted Average Exercise Price (CAD$) Balance, December 31, 2023 150,000 0.18 Expired (150,000) 0.18 Balance, December 31, 2024 and September 30, 2025 - $ - GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 13 7. CAPITAL AND OTHER COMPONENTS OF EQUITY (cont’d) A continuity of warrants issued and outstanding is as follows: Warrants Number Weighted Average Exercise Price (CAD$) Balance, December 31, 2023 5,317,000 0.50 Expired (5,317,000) 0.50 Balance, December 31, 2024 and September 30, 2025 - $ - Derivative liability The Black-Scholes valuation model is used to estimate the fair value of the derivative liability when warrants are issued in Canadian dollars. The warrants are fair valued again at each period end and the difference in fair value between the fair value at the period end and the previous valuation is recognized as an unrealized gain or loss on derivative liability. During the nine months ended September 30, 2025 the Company recognized an unrealized gain on derivative liability of €nil (year ended December 31, 2024 - €1,886). 8. RELATED PARTY TRANSACTIONS A summary of the Company’s related party transactions is as follows: a) The Company has a secured credit facility for up to €150,000 (2024 – €150,000) and an unsecured drawdown loan facility of €1,587,208 (2024 - €1,607,854). An executive officer of the Company is a director of the lending companies. Refer to Note 5 (a) and (b) and Note 11. b) During the nine months ended September 30, 2025, the Company incurred €6,195 (2024 – €22,923) for expenses that are owing to an executive officer of the Company. Refer to Note 11. c) The Joint Director purchased an assignment of claim in the amount of €80,000 and €20,000 on April 10, 2025, and July 24, 2025, respectively, of the CannaCare Loan Receivables, at face value, from the Company. Refer to Note 4. 9. CAPITAL MANAGEMENT The Company’s capital structure consists of shareholders’ equity and loans payable. Cash and loans receivable are managed for liquidity and operational requirements in conjunction with budgeted or expected capital needs. The Company’s objective when managing capital is to maintain its ability to retain sufficient liquidity to make investments as opportunities arise and to continue to meet ongoing expenditure and operational needs. The Company manages the capital structure and makes adjustments to its capital management strategies when economic conditions or risk characteristics of its capital change. GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 14 9. CAPITAL MANAGEMENT (cont’d) To maintain or adjust the capital structure, the Company may consider the issuance of shares, acquire or dispose of assets or adjust the amount of cash held. Currently, the Company’s strategy is to monitor economic conditions and capital markets and allocate operating capital for investment opportunities arising from market conditions. The Company is not subject to externally imposed capital requirements. The Company’s overall capital management strategy remains unchanged from the prior year. 10. FINANCIAL INSTRUMENTS The Company's financial instruments consist of cash, loans receivable, trade payables, derivative liability, and loans payable. N --- o derivative liabilities or convertible debentures were outstanding at September 30, 2025 or December 31, 2024. Fair value Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are: a. Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; b. Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and c. Level 3 - Inputs that are not based on observable market data. Cash has been measured at fair value using Level 1 inputs. The carrying value of loans receivable, trade payables and loans payable approximate their fair value. The derivative liability and convertible debenture are measured using level 3 inputs. The Company is exposed in varying degrees to financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of investment policies, counterparty credit limits and liquidity concerns. The more significant risk exposure and the way in which such exposure is managed is described below. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s exposure to credit risk is on its cash held in bank accounts and on its accounts receivable and its loans receivable. The majority of cash is deposited in bank accounts held with major banks in Canada. As most of the Company’s cash is held by one bank, there is a concentration of credit risk. This risk is managed by using major banks that are high credit quality financial institutions as determined by rating agencies. Loan receivables are owed from one borrower and as a result a high concentration of credit risk exists. The Company manages its credit risk on loans receivable by closely monitoring amounts loaned and by maintaining regular communication with the note holder to keep appraised of the lender’s operational and financial situation and to ensure a repayment plan is in place. Currency risk Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will GREENRISE GLOBAL BRANDS INC. NOTES TO THE CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Expressed in EUROS) 15 10. FINANCIAL INSTRUMENTS (cont’d) fluctuate because they are denominated in currencies that differ from the Company’s functional currency. The Company’s reporting currency is the Euro, and major purchases are transacted in the Euro and Canadian dollars. The Company maintains Euros and Canadian dollar in bank accounts in Canada. The Company is subject to gains and losses from fluctuations in the Canadian dollar against the Euro. The Company held a net monetary liability position of CAD$460,000 as of September 30, 2025, with the effect on profit or loss before tax of a 10% fluctuation to the CAD dollar being approximately €29,000. The Company’s investments are subject to foreign currency risk, which may adversely affect the Company’s financial position, results of operations and cash flows. The following table summarizes the geographical distribution of the Company’s financial instruments in Euros at September 30, 2025 and December 31, 2024: Euro CAD Dollar Total Cash 100% 0% 100% Loans receivable 100% 0% 100% Trade and oth --- er payables 6% 94% 100% Loans payable 100% 0% 100% Convertible debenture 100% 0% 100% Interest rate risk Interest rate risk is the risk that the fair value of future cash flows from a financial instrument will fluctuate because of changes in market interest rates. The risk that the Company will realize a loss as a result of a decline in the fair value of its investment in money market funds included in cash is limited as the money market funds may be redeemed at any time without penalty. The Company’s loan receivable and loans payable have fixed interest rates and are not affected by changes in interest rates. Liquidity risk Liquidity risk is the risk that the Company will not have sufficient cash resources to meet financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure as outlined in Note 9. Liquidity risk is assessed as high. 11. SUBSEQUENT EVENTS a) An executive officer of the Company was appointed to the Board of Directors on October 1, 2025. [end of document]