SEDAR Interim Financial Statements

Unaudited interim condensed consolidated financial statements of Haivision Systems Inc. For the three-month periods ended January 31, 2026 and October 31, 2025 (Unaudited) The accompanying unaudited interim condensed consolidated financial statements for the three-month periods ended January 31, 2026 and October 31, 2025 have been prepared by management in accordance with International Financial Reporting Standards and approved by the Board of Directors of Haivision System Inc. (the “Company”). These unaudited interim condensed consolidated financial statements have not been reviewed by the Company’s independent auditor. Unaudited interim condensed consolidated statements of loss and comprehensive income (loss) ................................................................... 1 Unaudited interim condensed consolidated statements of changes in equity ... 2 Unaudited interim condensed consolidated statements of financial position .... 3 Unaudited interim condensed consolidated statements of cash flows ............. 4 Notes to the unaudited interim condensed consolidated financial statements ........................................................................... 5–15 Haivision Systems Inc. Unaudited interim condensed consolidated statements of loss and comprehensive (loss) income Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 1 Notes January 31, 2026 January 31, 2025 $ $ Revenue 9 35,230,549 28,161,307 Cost of sales 10,396,120 7,877,868 Gross profit 24,834,429 20,283,439 Expenses 10 Sales and marketing 6,714,798 6,515,965 Operations and support 4,658,000 4,631,116 Research and development 7,957,680 7,121,982 General and administrative 5,030,794 3,647,406 Share-based compensation 671,107 384,053 Legal settlement and related fees — 167,011 25,032,379 22,467,533 Operating loss (197,950 ) (2,184,094 ) Financial expenses 11 150,341 167,612 Loss before income taxes (348,291 ) (2,351,706 ) Income taxes (recovery) Current (241,760 ) (1,669,395 ) Deferred 72,774 396,198 (168,986 ) (1,273,197 ) Net loss (179,305 ) (1,078,509 ) Other comprehensive (loss) income Items that may be reclassified to net income Foreign currency translation adjustment (2,185,729 ) 2,481,244 Comprehensive (loss) income (2,365,034 ) 1,402,735 Net loss per share 8 Net loss per share (basic) (0.01 ) (0.04 ) Net loss per share (diluted) (0.01 ) (0.04 ) Weighted average number of common shares outstanding (basic) 27,532,722 28,358,732 Weighted average number of common shares outstanding (diluted) 27,532,722 28,358,732 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. Haivision Systems Inc. Unaudited interim condensed consolidated statements of changes in equity Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 2 Notes Shares outstanding Share capital Share-based compensation reserve Foreign currency translation reserve Deficit Total equity # $ $ $ $ $ Balance, October 31, 2024 28,184,965 88,742,469 5,399,091 8,764,066 (6,110,036) 96,795,590 Other comprehensive income — — — 2,481,244 — 2,481,244 Net loss — — — (1,078,509) (1,078,509 ) Share-based compensation — — 384,053 — — 384,053 Repurchase of common shares (116,800 ) (367,920 ) — — (158,206 ) (526,126 ) Common shares subject to repurchase — — (500,000 ) — — (500,000 ) Exercise of RSUs 101,147 307,740 (778,397 ) — — (470,657 ) Balance, January 31, 2025 28,169,312 88,682,289 4 --- ,504,747 11,245,310 (7,346,751 ) 97,085,595 Balance, October 31, 2025 27,296,080 85,931,609 7,573,706 11,314,091 (7,239,021 ) 97,580,385 Other comprehensive loss — — — (2,185,729 ) — (2,185,729 ) Net loss — — — — (179,305 ) (179,305 ) Share-based compensation 8 — — 671,107 — — 671,107 Repurchase of common shares 8 (103,500 ) (326,025 ) — — (195,730 ) (521,755 ) Forfeited stock options 8 — — (27,715 ) — 27,715 — Exercise of stock options 8 13,333 68,426 (21,033 ) — — 47,393 Exercise of RSUs 8 271,826 925,648 (1,971,127 ) — — (1,045,479 ) Balance, January 31, 2026 27,477,739 86,599,658 6,224,938 9,128,362 (7,586,341 ) 94,366,617 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. Haivision Systems Inc. Unaudited interim condensed consolidated statements of financial position As at January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 3 Notes January 31, 2026 October 31, 2025 $ $ Assets Current assets Cash 16,991,365 17,198,767 Trade and other receivables 4 25,785,707 27,261,590 Investment tax credits receivable 2,535,001 2,047,031 Income taxes receivable 399,808 91,358 Inventories 3 11,941,294 13,278,225 Prepaid expenses and deposits 3,508,192 4,147,236 61,161,367 64,024,207 Property and equipment 3,396,044 3,893,013 Right-of-use assets 3,852,426 4,328,058 Intangible assets 5,246,308 6,513,240 Goodwill 46,806,092 47,925,730 Non-refundable investment tax credits receivable 8,781,805 8,522,516 Deferred income taxes 9,492,982 9,829,010 77,575,657 81,011,567 138,737,024 145,035,774 Liabilities Current liabilities Line of credit 5 5,528,845 2,731,115 Trade and other payables 6 14,699,575 20,250,395 Current portion of lease liabilities 1,551,456 1,629,209 Deferred revenue 13,687,211 13,368,537 Current portion of term loans 7 871,785 1,029,631 36,338,872 39,008,887 Lease liabilities 2,862,657 3,296,045 Deferred revenue 3,985,332 3,854,906 Term loans 7 1,183,546 1,295,551 44,370,407 47,455,389 Commitment and contingencies 15 Equity Share capital 8 86,599,658 85,931,609 Deficit (7,586,341 ) (7,239,021 ) Share-based compensation reserve 6,224,938 7,573,706 Foreign currency translation reserve 9,128,362 11,314,091 94,366,617 97,580,385 138,737,024 145,035,774 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. Haivision Systems Inc. Unaudited interim condensed consolidated statements of cash flows Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 4 Notes January 31, 2026 January 31, 2025 $ $ Operating activities Net loss (179,305 ) (1,078,509 ) Items not affecting cash Depreciation of property and equipment 598,731 520,268 Amortization of right-of-use assets 367,595 371,078 Amortization of intangible assets 1,176,349 1,298,609 Share-based compensation 8 671,107 384,053 Unrealized foreign exchange gain (226,120 ) (652,207 ) Current income taxes (241,760 ) (1,669,395 ) Financial expenses 11 150,341 167,612 Non-refundable investment tax credits receivable (259,289 ) (128,093 ) Deferred income taxes recovery 72,774 396,198 2,130,423 (390,386 ) Changes in non-cash operating working capital items 12 (2,137,831 ) (306,556 ) Interest paid (76,418 ) (74,224 ) Income taxes paid (66,690 ) 126,750 (150,515 ) (644,416 ) Investing activities Additions to property and equipment (185,049 ) (516,580 ) Financing activities Payment of lease liabilities (506,373 ) (487,088 ) Repayment of term loa --- ns 7 (269,951 ) (323,323 ) Exercise of RSUs (1,045,479 ) (470,657 ) Exercise of stock options 47,393 — Repurchase of common shares (521,755 ) (526,126 ) Line of credit 2,797,730 2,705,027 501,565 897,833 Effect of foreign exchange on cash (373,402 ) 432,265 Net (decrease) increase in cash (207,402 ) 169,102 Cash, beginning of year 17,198,767 16,471,364 Cash, end of period 16,991,365 16,640,466 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 5 1. Statute of incorporation and nature of activities Haivision Systems Inc. (the “Company”) was incorporated under the Canada Business Corporations Act on April 26, 2004. Its registered head office is located at 2600 Boulevard Alfred Nobel, Montréal, Québec, Canada, H4S 0A9. The Company produces and provides mission-critical, real-time video networking and visual collaboration solutions. The Board of Directors approved the unaudited interim condensed consolidated financial statements for the three-month periods ended January 31, 2026 and October 31, 2025, and authorized their publication on March 4, 2026. The unaudited interim condensed consolidated financial statements are presented in Canadian dollars, which is the Company’s presentation currency, and are rounded to the nearest dollar. 2. Material accounting policies Statement of compliance The unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board. Basis of presentation These unaudited interim condensed consolidated financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (“IFRS”) and in accordance with IAS 34, Interim Financial Reporting. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the years ended October 31, 2025 and 2024. The same accounting policies and methods of computation were followed in the preparation of these unaudited condensed interim consolidated financial statements as were followed in the preparation of the most recent annual audited consolidated financial statements. These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries Haivision Network Video Inc., Haivision Network Video GmbH, Haivision Media Technologies S.L., Haivision MCS, LLC and Aviwest S.A.S. Inter-group balances and transactions, and any revenue and expenses arising from inter-group transactions are eliminated in preparing these unaudited interim condensed consolidated financial statements. 3. Inventories January 31, 2026 October 31, 2025 $ $ Finished goods 12,945,662 14,214,260 Raw materials 1,453,066 1,531,133 Provision for obsolescence (2,457,434 ) (2,467,168 ) 11,941,294 13,278,225 The amount of inventory recognized in cost of sales during the three-month period ended January 31, 2026, was $8,121,475 ($5,997,244 in 2025). Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) --- Page 6 4. Trade and other receivables The components of trade and other receivables are as follows: January 31, 2026 October 31, 2025 $ $ Current 15,849,478 17,671,393 Past due less than 30 days 4,101,088 4,844,373 Past due less than 60 days 1,734,898 1,190,791 Past due less than 90 days 1,492,435 1,599,025 Past due over 90 days 3,942,496 3,413,900 Trade receivables (before allowance for expected credit losses) 27,120,395 28,719,482 Less: Allowance for expected credit losses (1,334,688 ) (1,457,892 ) Trade and other receivables (net of allowance for expected credit losses) 25,785,707 27,261,590 Allowance for expected credit losses Balance, beginning of period 1,457,892 1,251,082 Bad debt expense (recovery) (123,204 ) 206,810 Balance, end of period 1,334,688 1,457,892 5. Line of credit The Company has a credit agreement, maturing on August 20, 2026, providing for a revolving line of credit facility in the maximum principal amount of $35,000,000. The revolving facility also provides access to additional financing of $25,000,000 on an uncommitted basis through an accordion provision under the same terms, bringing the total financing capacity of the facilities to $60,000,000. The revolving facility bears interest at Canadian prime rate plus between 0.00% and 1.50% depending on the Company’s leverage. As at January 31, 2026, the current rate based on current level of leverage is 4.45%. The facility is collateralized by a first-ranking pledge on all of the Company’s present and future tangible and intangible assets. The credit facility is subject to the maintenance of the following financial covenants: (a) Maximum funded debt to Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) ratio at the end of each fiscal quarter of 3.75:1.00 (b) Minimum EBITDA to interest ratio at the end of each fiscal quarter of 5.00:1.00. As at January 31, 2026, the Company was in compliance with its covenants. The referenced Canadian prime rate as at January 31, 2026, was 4.45%. Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 7 6. Trade and other payables January 31, 2026 October 31, 2025 $ $ Trade 6,706,906 9,623,857 Payroll-related accruals 6,385,610 8,918,954 Other accrued liabilities 1,607,059 1,707,584 14,699,575 20,250,395 7. Term loans January 31, 2026 October 31, 2025 $ $ Term loans, non-interest bearing and interest bearing between 0.75% and 5.11%, instalments of principal and principal and interest payable, monthly or quarterly, in amounts ranging from $13,761 and $80,600 maturing between June 2026 and September 2029 2,055,331 2,325,182 Current portion 871,785 1,029,631 1,183,546 1,295,551 Principal payments required in each of the forthcoming fiscal years are as follows: $ 2026 692,243 2027 330,598 2028 — 2029 and thereafter 1,032,490 8. Share capital January 31, 2026 – Authorized, unlimited number Common shares, voting and participating Preferred shares, non-voting and participating Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 8 8. Share capital (continued) Issued January 31, 2026 October 31, 2025 $ $ 27,477,739 Common shares (27,296,080 as at October 31, 2025) 89,724,220 89,068,591 Share issuance costs, net of deferred income taxes of $1,200,000 (3,12 --- 4,562 ) (3,136,982 ) 86,599,658 85,931,609 Stock Option Plan The Stock Option Plan (the “Option Plan”) is administered by the Company’s Board of Directors, under which the recipients are awarded stock options to acquire common shares. Unless otherwise determined by the Board at the time of the grant, each stock option shall be exercisable until the tenth anniversary of the date on which it was granted. One third of the options granted shall vest on the first anniversary of the date of grant and the remaining two thirds shall vest annually over two years, totalling a three-year vesting period. A summary of the Option Plan’s position for the three-month period ended January 31, 2026, is presented below: January 31, 2026 October 31, 2025 Options Options Number of options Weighted average exercise price per share Number of options Weighted average exercise price per share # $ # $ Outstanding, beginning of year 2,607,173 5.45 2,613,673 5.47 Granted — — 20,000 4.37 Forfeited (9,000 ) 8.98 (26,500 ) 6.19 Exercised (13,333 ) 3.56 — — Outstanding, end of year 2,584,840 5.41 2,607,173 5.45 As at January 31, 2026, the range of the exercise price of all outstanding options was $3.13 to $9.93 ($3.13 to $9.93 in 2025) and the weighted average remaining life was 6.23 years (6.51 years in 2025). As at January 31, 2026, 2,240,537 options that had an exercise price below the January 31, 2026 closing share price were vested. The share-based compensation expense recorded for the options during the three-month period ended January 31, 2026, amounted to $58,330 ($142,211 in 2025). Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 9 8. Share capital (continued) Restricted Share Units Plan The Restricted Share Units Plan (the “RSU Plan”) is administered by the Company’s Board of Directors, under which the recipients are awarded restricted share units (“RSUs”) to acquire common shares. During the three-month period ended January 31, 2026, the Company granted a total of 633,936 RSUs to employees, executive officers, and eligible participants, of which 260,287 were granted to executive officers. The Company applies the fair value method of accounting for share-based compensation awards granted. Fair value is determined at the grant date and is valued at the share price on that date. The share-based compensation expense recorded for the RSUs during the three-month period ended January 31, 2026, amounted to $502,777 ($155,339 in 2025). A summary of the RSU Plan’s position for the three-month period ended January 31, 2026, is presented below: January 31, 2026 October 31, 2025 Number of RSUs Number of RSUs Outstanding, beginning of year 1,079,580 478,269 Granted 633,936 804,205 Forfeited — (7,500 ) Exercised (434,420 ) (195,394 ) Outstanding, end of year 1,279,096 1,079,580 Deferred Share Units Plan The Deferred Share Unit Plan (the “DSU Plan”) is administered by the Company’s Board of Directors, under which the recipients are awarded deferred share units (“DSUs”) to acquire common shares. A Deferred Share Unit is a notional unit credited by the Company to an eligible director, to be exchanged for a fully paid common share six months after the eligible director ceases to be a director of the Company. The Company applies the fair value method of accounting for share-based compensation awards granted. Fair value is determined at the --- grant date and is valued at the share price on that date. The share-based compensation expense recorded for the DSUs during the three-month period ended January 31, 2026, amounted to $110,000 ($86,503 in 2025). A summary of the DSU Plan’s position for the three-month period ended January 31, 2026, is presented below: January 31, 2026 October 31, 2025 Number of DSUs Number of DSUs Outstanding, beginning of year 256,739 168,563 Granted — 88,176 Forfeited — — Exercised — — Outstanding, end of year 256,739 256,739 Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 10 8. Share capital (continued) Cash-Settled Deferred Share Units Plan The Cash-Settled Deferred Share Units Plan (the “Cash-Settled DSU Plan”) is administered by the Company’s Board of Directors, under which the recipients are awarded cash-settled deferred share units (“Cash-settled DSUs”), each of which represents a right to receive a cash payment equal to the market value of one common share of the Company at the settlement date. Cash-settled DSUs do not entitle the holder to receive common shares of the Company. The Cash-settled DSUs vest in accordance with the terms established by the Board of Directors and are settled in cash six months after the eligible director ceases to be a director of the Company. The Company applies the fair value method of accounting for cash-settled share-based payment arrangements, under which the fair value of the Cash DSUs is measured based on the market price of the Company’s common shares at each reporting date and is recognized as a liability, with changes in fair value recognized in share-based compensation expense. During the three-month period ended January 31, 2026, the Company granted a total of 68,426 Cash-settled DSUs to directors. Share repurchases The Company renewed its Normal Course Issuer Bid (“NCIB”) on January 30, 2026, to purchase, commencing on February 4, 2026, for cancellation up to 1,833,212 of its common shares (representing approximately 10% of the public float of common shares outstanding as at January 26, 2026) before February 3, 2027. As at January 31, 2026, a $1.5 million financial liability, with a corresponding amount in equity, was recorded in Trade and other payables on the consolidated statements of financial position in relation with the NCIB. This liability represents the value of common shares authorized to be repurchased by a designated broker under an automatic share purchase plan from February 1, 2026, to March 13, 2026. This automatic share purchase plan allows for the purchase of the Company’s common shares under preset conditions at times when the Company would ordinarily not be permitted due to regulatory restrictions or self-imposed blackout periods. During the period ended January 31, 2026, the Company purchased under its NCIB program that ended on January 28, 2026, 103,500 common shares for cash of $521,755. In total, from the inception of these programs until their expiry, the Company purchased 1,923,132 common shares for aggregate cash consideration of $8,575,519. Under the renewed NCIB program, which expires on February 3, 2027, the Company has not yet purchased any common shares. Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) --- Page 11 9. Revenue January 31, 2026 January 31, 2025 $ $ Product 25,617,171 19,649,719 Maintenance and support 7,271,996 6,969,306 Cloud solutions 49,792 37,440 Services and other 2,291,590 1,504,842 35,230,549 28,161,307 During the three-month period ended January 31, 2026, the Company invoiced customers for services to be rendered in the future for an amount of $4,417,358 ($4,401,528 in 2025). These invoices have not been accounted for in these unaudited interim condensed consolidated financial statements. The Company expects to recognize the majority of these deferred revenues within the next twelve months. 10. Expenses Below are select expenses, presented by nature, which are included in cost of sales and operating expenses, presented by function, in profit and loss January 31, 2026 January 31, 2025 $ $ Salaries, commissions and benefits 16,279,410 15,357,053 Rent 287,154 253,079 Depreciation of property and equipment 598,731 520,268 Amortization of right-of-use assets 367,595 371,078 Amortization of intangible assets 1,176,349 1,298,609 Depreciation included in cost of sales during the three-month period ended January 31, 2026, was $243,408 ($230,452 in 2025). 11. Financial expenses (income) January 31, 2026 January 31, 2025 $ $ Interest on term loans 57,272 54,883 Interest on credit facility 70,190 80,551 Interest on lease liabilities 73,923 93,388 Interest income (51,044 ) (61,210 ) 150,341 167,612 Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 12 12. Additional information relating to the unaudited interim condensed consolidated statements of cash flows January 31, 2026 January 31, 2025 $ $ Net changes in non-cash operating working capital items Trade and other receivables 1,475,883 2,029,802 Investment tax credits receivable (487,970 ) (523,533 ) Inventories 1,336,932 (1,448,410 ) Prepaid expenses and deposits 639,044 (53,870 ) Trade and other payables (5,550,820 ) (498,124 ) Deferred revenue 449,100 187,579 (2,137,831 ) (306,556 ) 13. Financial instruments Fair value hierarchy The fair value is the amount at which a financial instrument could be exchanged between willing parties based on current markets for instruments with the same risk, principal and remaining maturity. Fair value estimates are based on present value and other valuation techniques using rates that reflect those that the Company could currently obtain, on the market, for loans with similar terms, conditions and maturities. The entity’s own credit risk and the credit risk of the counterparty were taken into account when determining the fair value of financial assets and financial liabilities, including derivative instruments. The fair value of cash, trade and other receivables, trade and other payables and the line of credit is approximately equal to their carrying value due to their short-term maturity. Fair value of debt is determined based on market rates prevailing at the unaudited interim condensed consolidated statements of financial position date and compared to those provided by financial institutions for similar financial instruments. These estimates are significantly affected by assumptions, including the amount and timing of estimated future cash flows and discount rates, all of which reflect varying degrees of risk. The following schedule represents the carrying values and the fair values of other financial i --- nstruments: January 31, 2026 Carrying value Fair value $ $ Term loans (Level 2) 2,055,331 1,914,003 Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 13 13. Financial instruments (continued) Fair value hierarchy (continued) October 31, 2025 Carrying value Fair value $ $ Term loans (Level 2) 2,325,182 2,182,454 Determination of fair value and the resulting hierarchy require the use of observable market data whenever available. The classification of a financial instrument in the hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. Fair value of financial instruments In estimating the fair value of an asset or liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurement are observable and the significance of the inputs to the fair value measurement in their entirety, which are described as follows: 1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; 2. Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and 3. Level 3 inputs are unobservable inputs for the asset or liability. Credit risk Credit risk results from the possibility that a loss may occur from the failure of another party to perform according to the terms of the contract. The Company carries out, on a continuing basis, credit checks on its customers and regularly monitors the credit risk exposure and takes steps to mitigate the likelihood of exposure resulting in actual loss. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. The Company has recognized a loss allowance of 100% against all receivables that have indicated that they are generally not recoverable. The Company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g., when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over two years past due, whichever occurs earlier. None of the trade receivables that have been written off are subject to enforcement activities. Liquidity risk The Company’s objective is to have sufficient liquidity to meet its liabilities when due. The Company monitors its cash balances and cash flows generated from operations to meet its requirements. As at January 31, 2026, the most significant financial liabilities are line of credit, trade and other payables, lease liabilities and term loans Haivision Systems Inc. --- Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 14 14. Related party disclosures Compensation of five (five in 2025) key management personnel: January 31, 2026 January 31, 2025 $ $ Salaries, bonuses and benefits 2,414,379 1,426,109 Compensation of non-employee directors For the three-month periods ended January 31, 2026 and 2025, independent directors were entitled to cash compensation totalling $56,250 ($55,831 in 2025), which has been accrued for within trade and other payables. The Company reimburses reasonable costs to attend board and committee meetings. 15. Commitment and contingencies On March 9, 2017, an entity filed proceedings against the Company alleging that the Company was not entitled to terminate the supply agreement entered into between the parties and breached an exclusivity undertaking. The entity was claiming an amount of $132,660,117 in damages, plus interest and indemnity. The trial was completed in February 2025 and the decision was rendered on May 6, 2025, awarding the entity an amount of $631,000 plus interest and fees. Accordingly, the Company has recorded a provision of $1,000,000 as at January 31, 2026. On May 28, 2025, the entity filed an appeal against the decision rendered. The Company believes that the likelihood of an unfavourable outcome, beyond the decision rendered, is not probable. Accordingly, no additional provision has been recorded. The Company is not aware of any other proceedings outstanding or threatened by or against it or relating to its business which may have, or have had in the recent past, significant effects on the Company’s financial position, profitability or cash flows and believes that the likelihood of an unfavourable outcome in any dispute is not probable. Accordingly, no provision has been recorded. 16. Reportable segments The Company has one reportable segment, the provision of mission-critical, real-time video networking and visual collaboration solutions. Geographical information Revenue by geographical area, based on the location of customers, is as follows: January 31, 2026 January 31, 2025 $ $ Canada 453,472 450,891 International 9,842,192 7,486,443 United States 24,934,885 20,223,973 35,230,549 28,161,307 Haivision Systems Inc. Notes to the unaudited interim condensed consolidated financial statements Three-month periods ended January 31, 2026 and October 31, 2025 (In Canadian dollars) Page 15 16. Reportable segments (continued) Geographical information (continued) Non-current assets by geographical area is as follows: January 31, 2026 October 31, 2025 $ $ Canada 37,801,136 40,216,621 International 23,539,907 23,755,213 United States 16,234,614 17,039,733 77,575,657 81,011,567