Reeflex Solutions Inc. Announces Filing of Q2 2026 Financial Results

• Event: Reeflex Solutions Inc. filed its Q2 2026 Financial Results (unaudited interim statements and MD&A) for the six months ended February 28, 2026.
• Financial Performance:
  • Revenue (Six Months): $6,008,435.
  • Net Loss (Six Months): ($930,596).
  • EBITDA (non-IFRS) (Six Months): ($607,197).
  • Operating Cash Flow (Six Months): Positive $1,174,075.
• Key Drivers:
  • First full six-month operating period following the May 2025 acquisition of Coil Solutions Inc.
  • Net losses driven by timing of revenue recognition and $420,153 in one-off professional fees related to financial restatement and audit compliance.
  • Deferred Revenue increased by $1,493,719 from fiscal year-end, indicating significant cash collected but not yet recognized.
• Regulatory Context: This filing resolves the delay announced on December 17, 2025, regarding annual financial statements and the associated Management Cease Trade Order (MCTO) application.

• Positive Resolution of Regulatory Risk: The primary materiality lies in the completion of the filing process that was delayed since December 2025. This removes the uncertainty surrounding the MCTO and default reporting status, which likely contributed to the stock price decline from $0.16 (Dec 2025) to lows of $0.08 (March 2026).
• Operational Cash Flow vs. Net Loss: While the headline net loss is negative, the positive operating cash flow ($1.17M) indicates that core business operations are generating liquidity. The loss is largely attributable to non-cash or one-off accounting adjustments (restatement fees), which masks underlying operational health.
• Revenue Visibility Confirmed: The $6.0M revenue aligns with the backlog announced in December 2025 ($2.6M Saudi Arabia orders + $3.4M Iron Horse contract). This confirms execution of previously announced contracts rather than revealing new growth catalysts.
• Deferred Revenue Growth: A nearly $1.5M increase in deferred revenue suggests a strong order book for future quarters, providing a buffer against potential market downturns in the short term.

• Company Profile: Reeflex Solutions Inc. provides coiled tubing equipment and services, primarily to the oil and gas sector, with recent expansion into mining and geothermal applications via its subsidiary Coil Solutions Inc. (CSI).
• Flagship Project/Technology: The core business revolves around CSI's hydraulic injector heads and custom coiled tubing rigs. Key projects include:
  • AC-Driven Electric Injector: Delivered to XtremeX Mining Technology in Feb 2026, marking entry into electrified mining drilling platforms.
  • Custom Mast-Style Rig: $3.4M contract for Iron Horse Energy Services (delivery Q3 2026).
  • Saudi Arabia Injectors: Six 160k-lb injectors for enhanced gas recovery projects (deliveries starting Q1 2026).