SEDAR Interim Financial Statements

Interim condensed consolidated financial statements of Blue Ant Media Corporation (Unaudited) For the three months ended November 30, 2025 and 2024 Three months ended November 30, 2025 2024 $ $ Revenues (Note 12) 80,464 48,707 Expenses Direct content, production and delivery expenses 59,428 29,627 Sales, general and administrative expenses 16,042 12,728 Share-based compensation (Note 11) 257 585 Depreciation and intangible amortization 2,711 1,362 Finance expenses, net (Note 14) 440 2,019 Loss on sale of assets (Note 6) 3,054 — Transaction and other related costs (Note 4) 2,540 68 Restructuring costs 788 — 85,260 46,389 Income (loss) before income taxes (4,796) 2,318 Income tax expense (Note 15) Current tax expense 1,536 2,534 Deferred tax expense (recovery) 418 (1,434) 1,954 1,100 Net (loss) income (6,750) 1,218 Net (loss) income attributable to: Shareholders (6,842) 1,099 Non-controlling interest 92 119 (6,750) 1,218 Income (loss) per share attributable to shareholders (Note 20): Basic (0.31) 0.07 Diluted (0.31) 0.06 Blue Ant Media Corporation Interim Consolidated Statements of Net (Loss) Income (Unaudited) (Expressed in thousands of Canadian dollars, except per share amounts) The accompanying notes are an integral part of these interim condensed consolidated financial statements. Three months ended November 30, 2025 2024 $ $ Net (loss) income (6,750) 1,218 Item that may be subsequently reclassified to income Cumulative translation adjustment 1,419 2,341 1,419 2,341 Comprehensive (loss) income (5,331) 3,559 Comprehensive (loss) income attributable to: Shareholders (5,423) 3,440 Non-controlling interest 92 119 (5,331) 3,559 Blue Ant Media Corporation Interim Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Expressed in thousands of Canadian dollars) The accompanying notes are an integral part of these interim condensed consolidated financial statements. November 30, 2025 August 31, 2025 $ $ Assets Current assets Cash 34,027 54,477 Restricted cash — 8 Trade and other receivables (Notes 6, 16) 109,890 120,214 Prepaids and other assets 9,872 7,520 Income taxes receivable 999 237 Total current assets 154,788 182,456 Property and equipment 5,802 5,118 Right-of-use assets 22,128 22,808 Investment in content rights (Note 5) 109,806 119,106 Intangible assets (Note 4) 72,628 61,359 Goodwill (Note 4) 42,403 38,658 Other long-term receivables (Note 6) 16,633 32,691 Deferred tax assets 7,889 9,210 Total non-current assets 277,289 288,950 Total assets 432,077 471,406 Liabilities Current liabilities Accounts payable and accrued liabilities (Note 7) 64,526 64,785 Deferred revenue (Note 9) 22,496 35,709 Current portion of lease liability 4,993 4,343 Current portion of bank indebtedness (Note 8) 540 14,587 Interim production financing (Note 8) 42,218 52,144 Current portion of promissory notes 4,600 4,536 Other current liabilities 6,197 2,757 Total current liabilities 145,570 178,861 Non-current liabilities Lease liability 20,753 21,066 Bank indebtedness (Note 8) — 4,755 Long-term deferred revenue (Note 9) 3,629 2,251 Other long-term liabilities 3,632 — Deferred tax liabilities 11,733 12,639 Total non-current liabilities 39,747 40,711 Shareholder's Equity Total equity attributable to shareholders 239,753 244,919 Non-controlling interests 7,007 6,915 Total equity 246,760 251,834 Total liabilities and equity 432,077 471,406 Commitments (Note 18) Blue Ant Media Corporation Interim Consolidated Statements of Financial Position (Unaudited) --- (Expressed in thousands of Canadian dollars) On Behalf of the Board of Directors (signed) “Michael MacMillan” (signed) “Robb Chase” ___________________________________ Director _______________________________Director The accompanying notes are an integral part of these interim condensed consolidated financial statements. Share capital (Note 10) Share capital Other capital Accumulated other comprehensive income / (loss) Deficit Accumulated paid in capital Total equity attributable to shareholders Non- controlling interest Total equity # $ $ $ $ $ $ $ $ Opening Balance - August 31, 2024 125,848.895 156,150 39,198 1,646 (14,360) (11,070) 171,564 6,537 178,101 Share-based compensation expense — — 585 — — — 585 — 585 Net income and comprehensive income — — — 2,341 1,099 — 3,440 119 3,559 Total as of November 30, 2024 125,848.895 156,150 39,783 3,987 (13,261) (11,070) 175,589 6,656 182,245 Share capital (Note 10) Share capital Other capital Accumulated other comprehensive income / (loss) Deficit Accumulated paid in capital Total equity attributable to shareholders Non- controlling interest Total equity # $ $ $ $ $ $ $ $ Opening Balance - August 31, 2025 21,892.483 210,787 43,147 2,949 (894) (11,070) 244,919 6,915 251,834 Share-based compensation expense — — 257 — — — 257 — 257 Issuance of subordinate voting shares 7,383 58 (58) — — — — — — Net income (loss) and comprehensive income (loss) — — — 1,419 (6,842) — (5,423) 92 (5,331) Total as of November 30, 2025 21,899.866 210,845 43,346 4,368 (7,736) (11,070) 239,753 7,007 246,760 Blue Ant Media Corporation Interim Consolidated Statements of Changes in Equity (Unaudited) (Expressed in thousands of Canadian dollars, except shares) The accompanying notes are an integral part of these interim condensed consolidated financial statements. Three months ended November 30, 2025 2024 $ $ Operating activities Net (loss) income (6,750) 1,218 Adjustments to reconcile net (loss) income to cash flow from operations: Depreciation of property and equipment 453 251 Depreciation of right-of-use assets 1,207 367 Amortization of content rights (Note 5) 22,433 14,440 Amortization of intangible assets 1,051 744 Loss on sale of Vendor take-back note (Note 6) 3,139 — Finance expenses, net (Note 14) 440 2,019 Share-based compensation (Note 11) 257 585 Deferred tax expense (Note 15) 418 (1,434) Income tax expense (Note 15) 1,536 2,534 Cash income taxes paid (2,329) (2,823) Additions to content rights (Note 5) (12,652) (14,279) Cash flows from operations 9,203 3,622 Net changes in non-cash working capital balances related to operations (Note 19) (4,040) 10,042 Net cash provided by operating activities 5,163 13,664 Financing activities Bank indebtedness, draws (Note 8) 281 1,135 Bank indebtedness, repayment (Note 8) (19,100) (3,139) Production financing, draws (Note 8) 6,047 250 Production financing, repayment (Note 8) (15,617) (3,323) Cash interest paid (891) (1,112) Costs associated with financing transactions — (41) Repayment of lease liability (1,326) (500) Cash flows used in financing activities (30,606) (6,730) Investing activities Additions to property and equipment (897) (825) Additions to intangible assets (880) (1,375) Acquisition of MagellanTV, net of cash acquired (Note 4) (7,607) — Proceeds from sale of VTB Note (Note 6) 13,562 — Cash flows provided by investing activities 4,178 (2,200) Effect of foreign exchange rate changes on cash 815 229 Net (decrease) increase in cash (20,450) 4,963 Cash, beginning of pe --- riod 54,477 12,020 Cash, end of period 34,027 16,983 Blue Ant Media Corporation Interim Consolidated Statements of Cash Flows (Unaudited) (Expressed in thousands of Canadian dollars) The accompanying notes are an integral part of these interim condensed consolidated financial statements. 1. Corporate information and nature of operations Blue Ant Media Corporation (the “Company”) (formerly Boat Rocker Media Inc. “BRMI”) was incorporated in Ontario and is domiciled in Canada. The address of the Company’s registered office and principal place of business is 99 Atlantic Ave, 4th Floor, Toronto, Ontario. On August 1, 2025, the Company acquired Blue Ant Media Inc. (“BAMI”), a corporation incorporated under the Canada Business Corporations Act on December 7, 2010 and domiciled in Canada, through a reverse takeover transaction which was implemented by way of a statutory plan of arrangement under the Canada Business Corporations Act (the “RTO“ or the “Transaction”). Former shareholders of BAMI exchanged their shares for shares of the Company, which resulted in the reverse takeover of the Company by BAMI. On closing of the RTO (the “Closing”), the Company’s fiscal year end, previously December 31, was changed to August 31. As BAMI has been identified for accounting purposes as the acquirer, the Company is considered to be a continuation of BAMI. The Company’s subordinate voting shares resumed trading on the Toronto Stock Exchange on August 7, 2025 under the trading symbol “BAMI”. The Company’s controlling shareholder is the Company’s chief executive officer, Michael MacMillan, who holds approximately 77.3% of the voting rights of the Company as of the date of these consolidated financial statements. The Company’s principal business activities include the creation and exploitation of video content across a range of traditional and digital media platforms. The Company has three reportable segments, as follows: Reportable segment Nature of operations and location Production and Distribution International content production and distribution with operations in London, Los Angeles, Toronto, Halifax, Ottawa, New York and Washington. Global Channels and Streaming International channel operations in London, Singapore, Sydney, Los Angeles, Miami, Washington and Toronto. Also includes Smart TV advertising operations, based in Toronto. Canadian Media Channel operations in Toronto and media placement across multiple platforms including television, print and consumer shows in Canada. 2. Basis of preparation and statement of compliance a) Basis of presentation These interim condensed consolidated financial statements are presented in Canadian dollars, which is also the Company’s functional currency. All amounts are expressed in thousands of Canadian dollars, with the exception of per share amounts, which are presented in dollars. Blue Ant Media Corporation Notes to the Interim Condensed Consolidated Financial Statements Three months ended November 30, 2025 and 2025 (Expressed in thousands of Canadian dollars, except per share amounts) (1) The Company has significant subsidiaries in the following locations that have the following functional currencies: Office location Functional currency Canada Canadian dollar United Kingdom US dollar United States US dollar b) Basis of consolidation The interim condensed consolidated financial statements incorporate the financial statements of the Company and its subsidiaries, which are the entities over which the Company has c --- ontrol. All intra-company transactions, balances, income, and expenses are eliminated in full on consolidation. Consistent with film and television industry practice, the Company utilizes single-purpose entities to manage the costs and funding for its content production projects. For accounting purposes, control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at the date of the acquisition. Changes in the Company’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. c) Statement of compliance These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), applicable to the preparation of condensed interim financial statements, including International Accounting Standard (“IAS”) 34, Interim Financial Reporting, and do not include all of the information required for annual financial statements. These interim condensed consolidated financial statements should be read in conjunction with the Company’s annual consolidated financial statements for the year ended August 31, 2025, which have been prepared in accordance with IFRS Accounting Standards. The Company’s material accounting policy information was presented in Note 3 of the annual consolidated financial statements, and have been consistently applied in the preparation of these interim financial statements. These consolidated financial statements were authorized for issuance by the Board of Directors on January 13, 2026. 3. Summary of material accounting policies and critical accounting estimates and judgments a) Use of estimates and judgments The preparation of these interim condensed financial statements requires management to make estimates, judgments and assumptions that affect the application of policies and reported amounts. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future estimates. The significant estimates and judgments made by management in the application of the Company’s accounting policies and key sources of estimation uncertainty are consistent with those described in the Company’s consolidated financial statements for the year ended August 31, 2025. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (2) b) Accounting standards and amendments issued but not yet effective IFRS 18, Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements (“IFRS 18”), which will replace IAS 1 as the primary standard for financial statement presentation. The standard aims to enh --- ance the comparability of financial performance by introducing new requirements for categorizing and presenting items in the statement of profit or loss, such as mandatory sub-totals like operating profit. It also updates the statement of cash flows and includes provisions for presenting management-defined performance measures with reconciliations to IFRS compliant figures. Effective from January 1, 2027, IFRS 18 requires restatement of comparative periods and allows earlier adoption. Management is still assessing the impact of this new accounting standard. Amendments to IFRS 7 and 9, Classification and Measurement of Financial Instruments In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 aimed at improving the classification and measurement of financial instruments. The recent amendments simplify financial reporting by allowing earlier recognition of liabilities settled via electronic payments, clarifying the assessment of cash flows for basic lending arrangements and refining definitions for non-recourse features and linked instruments. The amendments also introduce more detailed disclosure requirements for fair value changes in equity instruments and mandate reporting of terms that could affect cash flow timings or amounts. The amendment will be effective from January 1, 2026, and entities must apply these amendments retrospectively, with earlier adoption permitted. Management is still assessing the impact of this change in the accounting standards, which will be mandatorily effective for the Company’s first quarter reporting for its fiscal year ending August 31, 2027. 4. Business combinations (a) Reverse Take-over of BRMI On August 1, 2025, the Company completed the Transaction. In connection with the Transaction, the shares of BAMI were exchanged for shares of the Company on the basis of an exchange ratio of 1.25 shares (prior to the share consolidation noted below) of the Company for each share of BAMI. Furthermore, any equity incentive plan (“EIP”) awards and warrants of BAMI issued and outstanding immediately prior to the Closing were subject to the same exchange ratio. Immediately prior to the Closing, the Company completed a share capital reorganization (the “Share Capital Reorganization“), which included a consolidation of its shares and EIP awards issued and outstanding on the basis of one (1) post-consolidation share for 10 pre-consolidation shares. The Share Capital Reorganization also included the exercise of certain fully vested restricted share units (“RSUs”), as well as the assumption of EIP awards issued and outstanding of the Company, which included options, performance-based share units (“PSUs”), deferred share units (“DSUs”) and RSUs. Each non-voting common share of BAMI was exchanged for subordinate voting shares (“SVS”) of the Company, and each special voting share of BAMI was exchanged for multiple voting shares (“MVS”) of the Company, both on a one-for-one basis. Further to the above, 75,000,000 restricted voting shares were issued at Closing to BAMI’s chief executive officer (“CEO”), Michael MacMillan, for a price of $0.0001 per share. As part of the Transaction, one of the Company’s significant shareholders committed to provide the Company with the following: (a) a commitment for a capital contribution of up to $34,700 dependent on certain performance targets of the Retained Business in the year ending December 31, 2025 and to be paid by March 30, 2026; (b) guarantees for a vendor take-back promiss --- ory note receivable of $18,000 for the sale of certain production assets to a group of shareholders immediately prior to the Closing of the RTO (the “VTB Note”), and US$2,655 of notes receivable from a former BRMI executive in relation to a prior transaction; and (c) commitment for a period of one year from the Closing, to subscribe for up to $20,000 in any new equity offering of the Company up to a maximum of $60,000. The VTB Note was sold in November 2025 (refer to Note 6). Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (3) (b) Acquisition of MagellanTV On October 2, 2025, the Company acquired MagellanTV, LLC and Alliant Content, LLC (together, “MagellanTV”), a digital streaming company that delivers factual content to consumers across the globe. The assets and business of MagellanTV have been included in the Company’s Global Channels and Streaming reporting segment as of the acquisition date. The MagellanTV acquisition expands the Company’s Channels and Streaming business, as MagellanTV brings an established Subscription Video on Demand (“SVOD”) platform, as well as Advertising-based Video on Demand (“AVOD”) and Free Ad-Supported Streaming Television (“FAST”) channels, broadening the Company’s reach and monetization across multiple distribution windows. The Company has made a preliminary assessment of the fair value of the assets acquired and liabilities assumed as follows, excluding identified intangible assets acquired: Net assets acquired (liabilities assumed) $ Cash 93 Trade and other receivables 1,687 Total current assets 1,780 Right-of-use assets 249 Intangible assets - library 81 Total long-term assets 330 Total assets 2,110 Accounts payable and accrued liabilities 1,967 Current portion of lease liability 104 Deferred revenue 375 Total current liabilities 2,446 Lease liability 143 Total liabilities 2,589 Net liabilities assumed, excluding identified intangibles acquired (479) Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (4) The following table shows the financial results of MagellanTV included in the Company’s consolidated statement of net income for three months ended November 30, 2025: Oct. 2 - Nov. 30, 2025 $ Revenue 1,720 Net loss (724) The consideration provided led to goodwill on acquisition. Refer to the following table for the breakdown of consideration paid and preliminary calculation of goodwill: Consideration $ Cash paid 7,352 Consideration deficit (receivable) (237) Deferred cash consideration 5,001 Financial liability 2,501 Total consideration 14,617 Fair value of net liabilities assumed, excluding identified intangibles acquired (479) Identified intangible assets acquired: Customer lists 6,922 Trademarks 3,621 Software 836 Total identified intangible assets acquired 11,379 Total identifiable net assets acquired 10,900 Goodwill 3,717 Cash paid on closing of $7,352 to former MagellanTV shareholders was determined as US$6,000 net of certain of MagellanTV’s liabilities assumed by the Company on closing, as well as net of transaction costs paid by the Company on behalf of the former shareholders of MagellanTV. A consideration deficit of $237 was also recorded, as the initial closing cash paid exceeded the final calculated closing cash to be paid by --- the Company. After the closing of the transaction, the remaining consideration is a total of US$6,000, of which US$2,000 million is to be paid in cash on each of the first two anniversary dates of the transaction’s closing, and US$1,000 is to be paid in either cash or its equivalent value in the Company’s subordinate voting shares on each of the first two anniversary dates of the transaction’s closing. These amounts have been respectively recorded as deferred cash consideration and a financial liability, and discounted to net present value using a US borrowing rate of 7.25%. Of the identified intangible assets acquired, customer lists relate to MagellanTV’s FAST and SVOD revenue streams, and have an expected life of 10 years. Trademarks are considered an indefinite-life intangible asset and software has an expected life of 3 years. Goodwill acquired reflects the expected growth of the Company’s AVOD, SVOD and FAST channels, including MagellanTV, as a result of the acquisition, along with synergies to be realized in its Global Channels and Streaming reporting segment and the value of the assembled workforce acquired. Goodwill from the acquisition is Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (5) included in the Company’s Global Channels and Streaming group of cash generating units (“CGUs”) for reporting and impairment testing purposes. Of total transaction costs and other related costs of $2,540 recorded in the Company’s statement of net income for three months ended November 30, 2025, $792 relates to advisory costs for the MagellanTV acquisition. (c) Proposed acquisition of Thunderbird Entertainment Group Inc. On November 25, 2025, the Company entered into a definitive agreement to acquire 100% of the issued and outstanding common shares of Thunderbird Entertainment Group Inc. ("Thunderbird"). Under the terms of the definitive agreement, Thunderbird shareholders have the option to elect to receive either subordinate voting shares of the Company, cash or a combination of both, subject to proration based on a maximum aggregate cash consideration of $40,000. For each Thunderbird common share, the holder may receive: (i) 0.2165 subordinate voting shares of the Company, (ii) $1.77 in cash, or (iii) a combination thereof. Assuming Thunderbird shareholders elect to receive the maximum cash amount, the total consideration to be paid by the Company consists of $40,000 in cash and the issuance of subordinate voting shares representing approximately 21% of the pro forma subordinate voting shares of the Company following the closing, based on the treasury stock method. If no cash elections are made, existing Thunderbird shareholders would own approximately 33% of the pro forma subordinate voting shares of the Company. The transaction is subject to customary closing conditions, including the receipt of all necessary shareholder and regulatory approvals. Of total transaction costs and other related costs of $2,540 recorded in the Company’s statement of net income for three months ended November 30, 2025, $1,623 relates to professional fees and other advisory costs associated with the Thunderbird proposed acquisition. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (6) 5. Investmen --- t in content rights Acquired program rights Owned content Total $ $ $ For the three months ended November 30, 2024 Opening net book value 32,563 64,180 96,743 Additions, net 3,325 10,954 14,279 Amortization (4,583) (9,857) (14,440) Expense of development costs — (73) (73) Foreign exchange 564 627 1,191 Net book value 31,869 65,831 97,700 At November 30, 2024 Cost 89,790 92,579 182,369 Accumulated amortization (57,921) (26,748) (84,669) Net book value 31,869 65,831 97,700 Acquired program rights Owned content Total $ $ $ For the three months ended November 30, 2025 Opening net book value 35,086 84,020 119,106 Additions, net 4,806 7,846 12,652 Amortization (4,408) (18,025) (22,433) Expense of development costs — (167) (167) Foreign exchange 326 322 648 Net book value 35,810 73,996 109,806 At November 30, 2025 Cost 111,690 115,267 226,957 Accumulated amortization (75,880) (41,271) (117,151) Net book value 35,810 73,996 109,806 During the three months ended November 30, 2025, included in additions is $213 of interest capitalized to investment in content - owned content (2025 - $424). Additions to investment in content during the three months ended November 30, 2025, have been reduced by $3,953 (2025 - $2,166) in respect of production tax credits. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (7) 6. Other long-term receivables November 30, 2025 August 31, 2025 $ $ VTB Note from business combination (a) — 16,600 Other notes receivable from business combination (b) 8,321 8,321 Total notes receivable 8,321 24,921 Less: Current portion of notes receivable included in Trade and other receivables (3,646) (6,646) Long-term notes receivable 4,675 18,275 Long-term tax credit receivables 11,037 13,971 Lease deposits and other 921 445 Total other long-term amounts receivable 16,633 32,691 (a) The VTB Note for $18,000 for the sale of certain production assets to a group of shareholders immediately prior to the Closing of the RTO was included in the assets acquired resulting from the Transaction. The VTB Note is repayable in amounts of $3,000 annually from the Closing of the RTO, with an additional $1,000 in deemed interest payable included with the final payment. The VTB Note was recorded at fair value, which was its calculated net present value using a discount rate of 2.99%, reflecting the guarantee of one of the Company’s significant shareholders, with interest income being accreted over the 6-year term. In November 2025, the VTB Note was sold to a third party for net proceeds of $13,562. The VTB Note was recorded at an amount of $16,701 at the time of disposal, resulting in a loss of $3,139 at the time of sale and recorded in the Company’s statement of net (loss) income. (b) Notes receivable of $8,321 including accrued interest, from a former BRMI executive in relation to a prior transaction, were included in the assets acquired resulting from the Transaction. The $3,646 (US$2,655) current portion of these notes receivable, is guaranteed by one of the Company’s shareholders (also a former BRMI shareholder - see Note 4). The long-term notes receivable are interest-bearing and guaranteed by the former executive’s shareholdings in The Initial Group Global, LLC. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares --- and per share amounts) (8) 7. Accounts payable and accrued liabilities November 30, 2025 August 31, 2025 $ $ Accounts payable 18,671 20,799 Accrued liabilities 34,547 33,518 Royalty accruals 5,487 4,536 Content acquisition accruals 4,291 3,837 Other payables 1,530 2,095 Total accounts payable and accrued liabilities 64,526 64,785 8. Bank indebtedness and interim production financing Interim production financing November 30, 2025 August 31, 2025 $ $ Outstanding 41,319 50,889 Accrued interest 899 1,255 Balance 42,218 52,144 Prior period amounts in the table above have been restated to conform to current period presentation. Bank indebtedness November 30, 2025 August 31, 2025 $ $ Outstanding 1,754 20,573 Accrued interest — 132 Unamortized financing costs (1,214) (1,363) Balance 540 19,342 Less: Current portion (540) (14,587) Non-current — 4,755 Bank indebtedness On August 1, 2025, the Company entered into the second amended and restated credit agreement (“2025 Credit Agreement”) with its existing syndicated lenders. The 2025 Credit Facility is summarized below. • General purpose credit facility (“Facility A”) The Company’s revolving credit facility is $30,000, where advances under this facility are for working capital and general corporate purposes. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (9) • Acquisition credit facility (“Facility C”) The Company’s acquisition revolving credit facility is $35,000. Advances under Facilities A and C may be drawn in Canadian dollars as a either prime rate loan or Canadian Overnight Repo Rate Average (“CORRA”) loan, or in U.S. dollars as either a base rate loan or Secured Overnight Financing Rate (“SOFR”) loan. Amounts drawn under each respective facility will bear interest at the applicable reference rate plus an applicable margin ranging from 1.00% to 2.25% per annum for prime rate or base rate loans, and 2.00% to 3.25% per annum for CORRA or SOFR rate loans dependent on the Company’s leverage ratio. A standby fee is payable on the unutilized amount of this facility. Principal repayments on Facilities C are as follows: 3.55% of the principal amount of each advance, payable in quarterly installments and the remainder payable on the 2025 Credit Facility’s maturity date of December 6, 2027. The facility permits voluntary repayments without payment of any penalty or fee. Under the terms of the 2025 Credit Agreement, the Company is required to maintain the following ratios at all times: • Funded debt to EBITDA shall not be greater than 3.00 to 1.00 • Fixed charge coverage ratio shall not be less than 1.15 to 1.00 • Liquidity ratio shall not be less than 1.10 to 1.00 The Company was in compliance with all financial covenants as described at each date presented above and in both the three months ended November 30, 2025 and the year ended August 31, 2025. The indebtedness is secured by a guarantee executed by the Company and each of its subsidiaries. Interim production financing As at November 30, 2025, interim production financing includes the following facilities: • Production revolving loan under 2025 Credit Agreement This is a revolving credit facility with a total limit of $70,000 under which advances may be used to provide interim production financing for eligible productions (“Facility B”). This facility is secured by a guarantee from the Company up to a maximum pri --- ncipal amount of $5,000, as well as being secured by specific production financing, licensing contracts and film tax credits receivables. • Production revolving loan with respect to interim financing for service productions As part of the 2025 Credit Agreement, the Company entered into a revolving credit agreement specifically for interim financing on future service productions with a limit of up to $20,000. No amounts were drawn from this facility as of November 30, 2025. This facility is secured by specific production financing, licensing contracts and film tax credits receivables. • Former BRMI revolving credit facility On August 1, 2025, on the Closing of the Transaction, the Company assumed a $20,000 revolving credit facility (the “Borrowing Base Facility”) secured by receivables such as production service tax credits. The Borrowing Base Facility is repayable on demand. Interest on amounts drawn is calculated at prime plus 0.50%, payable monthly in arrears. • Single purpose loans with respect to Proper Television and Insight Productions On the Closing of the RTO, the Company assumed a number of single-purpose production-specific interim financing loans and a general security agreement in respect to Proper Television and Insight Productions in the Retained Business. These loans are secured by production tax credits. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (10) 9. Deferred revenue November 30, 2025 August 31, 2025 $ $ Production contract revenue 16,152 29,065 Distribution license revenue 5,050 2,560 Consumer shows revenue 2,483 2,376 Other deferred revenue 2,440 3,959 Total 26,125 37,960 Less: Current portion (22,496) (35,709) Long-term deferred revenue 3,629 2,251 Movements in deferred revenue balances in the three months ended November 30, 2025 and year ended August 31, 2025 were as follows: Three months ended November 30, 2025 Year ended August 31, 2025 $ $ Opening balance 37,960 20,685 Additions through business acquisition (Note 4) 375 22,284 Cash collections 35,347 128,612 Revenue recognized (47,541) (133,747) Reclassification (23) (12) Foreign exchange 7 138 Closing balance 26,125 37,960 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (11) 10. Equity Authorized Outstanding Share capital November 30, 2025 $ Subordinate voting shares Unlimited 21,899,866 210,837 Special voting shares 12.5 12.5 — Restricted voting shares 75,000,000 75,000,000 8 Total 96,899,878.5 210,845 Authorized Outstanding Share capital August 31, 2025 $ Subordinate voting shares Unlimited 21,892,483 210,779 Special voting shares 12.5 12.5 — Restricted voting shares 75,000,000 75,000,000 8 Total 96,892,496 210,787 Normal Course Issuer Bid On October 16, 2025, the Company announced that the Toronto Stock Exchange (“TSX”) approved the Company's intention to proceed with a Normal Course Issuer Bid (the “NCIB”) for its subordinate voting shares as appropriate opportunities arise from time to time. The NCIB commenced on October 20, 2025 and will expire October 19, 2026, allowing the Company to purchase up to 1,094,714 of its subordinate voting shares for cancellation. No share repurchases under the NCIB occurred during the three months ended November 30, 2025. 11. Share-based payments On Clo --- sing of the RTO (note 4), the Company assumed awards granted under the equity incentive plan of the acquired company (the “Acquired EIP”) in the form of stock options, restricted share units (“RSUs”), and performance share units (“PSUs”) granted to employees and deferred share units (“DSUs”) granted to independent directors. The fair value of stock options was determined using a Black-Scholes pricing model and is recognized as share-based compensation expense on a graded vesting basis over the vesting periods of the options. The fair value of RSUs granted was determined to be the share price on the grant date and is recognized as share-based compensation expense on a graded vesting basis over the vesting periods of the units. The fair value of DSUs granted was determined to be the share price on the grant date and was recognized as share-based compensation expense on the grant date, as the awards were fully vested on such date. The fair value of the PSUs granted was recognized as share-based compensation expense on a straight-line basis over the vesting periods of the PSUs. All awards issued and outstanding under the Acquired EIP are exercisable for subordinate voting shares of the Company on a one-for-one basis. Further to the above, all awards issued under the BAMI Equity Incentive Plan (“BAMI EIP”) were subject to a 25% pre-Closing premium and then a 10:1 share consolidation on Closing, exercisable for subordinate voting shares Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (12) of the Company on a one-for-one basis. The Acquired EIP and BAMI EIP were combined into the Company Equity Incentive Plan (“Company EIP”) on the Closing of the RTO. Employee stock option plan The following summarizes the movements in stock options of the Company EIP for the three months ended November 30, 2025: Options Weighted average exercise price # $ Options outstanding – August 31, 2025 1,489,896 12.68 Expired (6,250) 12.56 Options outstanding - November 30, 2025 1,483,646 12.68 The following summarizes information about stock options outstanding under the Company EIP as at November 30, 2025: Exercise price Number outstanding Weighted average remaining life Number exercisable $ # years # 8.00 782,750 5.14 779,000 9.20 750 8.33 250 12.00 278,625 5.76 201,625 18.00 393,250 5.75 148,875 57.60 7,206 1.09 7,206 68.50 384 6.14 384 74.90 12,006 2.54 12,006 90.00 8,675 5.09 8,675 1,483,646 5.38 1,158,021 Additionally, included in share-based compensation expense is $50 for compensation to some of the Company’s directors, to be issued in DSUs (2025 – $50 of non-voting common share awards). Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (13) Restricted Share Units The following summarizes the movements in RSUs of the Company EIP for the three months ended November 30, 2025: RSUs Weighted average grant date fair value # $ RSUs outstanding - August 31, 2025 377,338 19.65 Exercised (7,383) 34.14 RSUs outstanding - November 30, 2025 369,955 19.82 Deferred Share Units There were no Equity Incentive Plan DSU transactions during the three months ended November 30, 2025. As at November 30, 2025 and August 31, 2025, there were 36,443 DSUs outstanding with a weighted average grant date fair value of $11.78. --- Performance Share Units There were no Equity Incentive Plan PSU transactions during the three months ended November 30, 2025. As at November 30, 2025 and August 31, 2025, there were 10,110 PSUs outstanding with a weighted average grant date fair value of $15.60. The following summarizes the share-based compensation expense for the periods presented: Three months ended November 30, 2025 2024 $ $ Director's compensation 50 50 Options 169 279 RSUs 38 256 257 585 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (14) 12. Revenue The following is disaggregated revenues by segment and type: Three months ended November 30, 2025 Production and Distribution Global Channels and Streaming Canadian Media Total $ $ $ $ Subscriber — 5,455 6,215 11,670 Promotion and advertising — 16,869 4,322 21,191 Production services 22,740 — — 22,740 Production licensing and distribution 20,638 387 694 21,719 Consumer shows, publishing, service and digital — — 3,144 3,144 43,378 22,711 14,375 80,464 Three months ended November 30, 2024 Production and Distribution Global Channels and Streaming Canadian Media Total $ $ $ $ Subscriber — 4,748 6,765 11,513 Promotion and advertising — 16,096 5,683 21,779 Production services 1,850 — — 1,850 Production licensing and distribution 10,249 256 32 10,537 Consumer shows, publishing, service and digital — — 3,028 3,028 12,099 21,100 15,508 48,707 The following is the Company’s disaggregated revenue attributable to each geographic region, based on the location of the transacting subsidiary (for clarity, not based on the location of the customer or business): Three months ended November 30, 2025 2024 $ $ Canada 65,148 32,914 United States 10,680 7,164 United Kingdom 4,636 8,629 80,464 48,707 In the three months ended November 30, 2025, the Company's top five customers accounted for approximately 37% (2024 - 28%) of total revenue. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (15) 13. Expenses by nature The following sets out the expenses by nature for the three months ended November 30, 2025 and 2024: Three months ended November 30, 2025 2024 $ $ Amortization of content rights 22,433 16,209 Salaries and benefits 11,696 10,303 Smart TV publishing costs 8,872 5,677 Production service and other production costs 22,599 2,675 Producer royalties and versioning 3,002 2,328 Transaction and other related costs 2,540 68 Share-based compensation (Note 11) 257 585 Events and merchandise costs 1,519 1,601 Depreciation and intangible amortization 2,711 1,362 Office expenses 2,007 1,231 Other finance expenses, net (Note 14) 440 2,019 Professional fees 1,430 743 Marketing expenses 952 905 Restructuring costs 788 — Facilities expenses 421 286 Travel expense 311 268 Insurance expense 228 129 Loss on sale of other assets (Note 6) 3,054 — 85,260 46,389 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (16) 14. Finance expenses, net The following finance income and expenses were incurred: Three months ended November 30, 2025 2024 $ $ Interest expense and standby fees: Interest expense, lease liability 335 144 Interest on bank indebtedness (Note 8) 205 647 --- Interest on promissory note 65 132 Interest on interim financing (Note 8) 382 441 Interest capitalized (Note 5) (213) (424) Standby fee on bank loan 16 56 790 996 Amortization on deferred financing cost related to: Bank indebtedness (Note 8) 150 148 Other Other charges 180 105 330 253 Total finance expense 1,120 1,249 Interest Income Bank deposits (766) (48) Other interest income (157) — Total finance income (923) (48) Currency loss / (gain) Unrealized 335 964 Realized (92) (146) 243 818 Finance expense, net 440 2,019 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (17) 15. Income tax Three months ended November 30, 2025 2024 $ $ Current income tax expense 1,536 2,534 Deferred income tax expense (recovery) 418 (1,434) Income tax expense 1,954 1,100 The provision for income tax differs from the amount that would have resulted by applying the combined Canadian federal and Ontario statutory income tax rate of 26.5%. The income tax in each period reflects the mix of taxing jurisdictions in which pre-tax income and losses were recognized. For the three months ended November 30, 2025 the effective tax rate was (41)% (2024 - 47%). Items impacting the effective rate include non-deductible items such as share-based compensation expense, the different statutory rates in the taxing jurisdictions, and the continued derecognition of certain deferred tax assets as discussed below. In assessing the value of deferred tax assets, the Company's management considers if it is probable that taxable profit will be available against which the deductible temporary differences and unused tax losses can be utilized. Available evidence considered by the Company includes, but is not limited to, the Company's historic operating results and projected future operating results which take into account changing business and market circumstances. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (18) 16. Financial instruments, capital management and financial risks Fair value The fair values of cash, trade and other receivables and accounts payable and accrued liabilities, and promissory notes payable approximate their carrying values due to the short-term nature of the expected cash flows. The fair value of the bank indebtedness approximates its carrying value as the interest rates on the debt are at variable market rate. Contingent consideration was valued based on achievement of historical adjusted EBITDA targets and achievement of projected EBITDA targets for the period-ended November 30, 2025 and August 31, 2025, respectively. The 2022 Put Option was valued with reference to the expected payout should it be exercised, based on a methodology agreed on in the original agreement in which the option arose. Changes to the underlying assumptions and observable inputs did not result in significant changes in fair value. November 30, 2025 August 31, 2025 Fair value hierarchy Carrying value Fair value Carrying value Fair value $ $ $ $ Financial assets not measured at fair value VTB Note receivable (Note 6) Level 3 — — 16,600 16,600 Other notes receivable (Note 6) Level 3 8,321 8,321 8,321 8,321 Financial liabilities measured at fair value Contingent consideration Level 3 220 220 276 276 2022 Put Option Level 3 --- 1,300 1,300 1,300 1,300 Financial liabilities not measured at fair value Promissory note Level 2 4,600 4,600 4,536 4,536 Insight note payable Level 2 727 727 1,181 1,181 MagellanTV deferred cash consideration and financial liability (Note 4) Level 2 7,621 7,621 — — Credit risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to trade and other receivables and cash. The Company mitigates this risk by monitoring the creditworthiness of its customers and dealing with reputable financial institutions. Management has assessed these amounts and the entities from which the funds are held and has determined that the risk of loss is remote. The top five customers represented approximately 26% (as at August 31, 2025 - 32%) of the Company’s trade receivables as at November 30, 2025. The amounts disclosed in the consolidated statement of financial position are net of an allowance for doubtful accounts of $138 (as at August 31, 2025 - $87), estimated by management of the Company based on previous experience and the current economic environment using the expected credit loss model. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (19) As at November 30, 2025 and August 31, 2025, the aging of trade receivables was: November 30, 2025 August 31, 2025 $ $ Trade receivables Current 22,688 26,146 Aged 31-60 days 2,741 2,390 Aged 61-90 days 6,172 3,177 Aged greater than 90 days 770 5,884 Total trade receivables 32,371 37,597 Note receivables 4,246 7,246 Unbilled receivables 9,448 6,658 Accrued receivables 14,158 9,779 Tax credits and funding receivable 49,805 58,971 Other receivables — 50 110,028 120,301 Allowance for doubtful accounts (138) (87) Trade and other receivables, end of the period 109,890 120,214 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (20) 17. Related party transactions During the three months ended November 30, 2025 and 2024, the Company entered into transactions with related parties. Transactions entered into during the three months ended November 30, 2025, and trading balances outstanding at November 30, 2025 are as follows: Three months ended November 30, 2025 As at November 30, 2025 Sales Purchase Due from $ $ $ Advertising services provided to entities of which a director is a member of key management 1,060 — 716 Rent paid to a company owned by the controlling shareholder — 28 — Note receivable from a director — — 600 1,060 28 1,316 Transactions entered into during the three months ended November 30, 2024, and trading balances outstanding at November 30, 2024 are as follows: Three months ended November 30, 2024 As at November 30, 2024 Sales Purchase Due from $ $ $ Advertising services provided to entities of which a director is a member of key management 1,356 — 766 Rent paid to a company owned by the controlling shareholder — 28 — Note receivable from a director — — 600 1,356 28 1,366 18. Commitments The Company has entered into agreements to acquire programs or program rights. The total amount committed to acquiring programs or program rights to be delivered in future periods is approximately $19,422 (August 31, 2025 - $18,908). The period in which thes --- e commitments will become payable will depend in part on the timing of the delivery to the Company of the acquired programs or program rights. Management estimates the commitments will become payable as follows: Total $ Remainder of fiscal 2026 16,582 2027 2,840 2028 and thereafter — 19,422 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (21) 19. Supplemental cash flow information Operating activities The net change in non-cash working capital balances related to operations consists of the following: Three months ended November 30, 2025 2024 $ $ Decrease in trade and other receivables 13,400 12,629 (Increase) decrease in prepaid and other assets (2,302) 738 Decrease in income taxes receivable — — Decrease in accounts payable and accrued liabilities (2,317) (397) Decrease in deferred revenue (12,004) (1,556) Decrease in other liabilities (817) (1,372) (4,040) 10,042 Supplemental cash flow information Interest received 247 335 Interest paid 891 1,100 Income taxes paid, net of refunds 2,326 2,823 Financing activities The net change in cash and non-cash liabilities arising from financing activities consists of the following, for the three months ended November 30, 2025: Bank indebtedness Interim production financing Promissory note Total $ $ $ $ Balance, August 31, 2025 19,342 52,144 4,536 76,022 Net cash (payments) / draws (18,819) (9,570) — (28,389) Total financing cash flow / (outflow) (18,819) (9,570) — (28,389) Amortization of deferred financing costs 150 — — 150 Net change in accrued interest (133) (356) 64 (425) Total financing non-cash inflow / (outflow) 17 (356) 64 (275) Balance, November 30, 2025 540 42,218 4,600 47,358 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (22) 20. Earnings (loss) per share The following table reconciles the denominator used to calculate earnings per share (share numbers shown in thousands): Three months ended November 30, 2025 2024 $ $ Net (loss) income attributable to shareholders (6,842) 1,099 Weighted average number of shares - Basic 22,270 16,059 Effect of dilutive securities — 1,465 Weighted average number of common shares - Diluted 22,270 17,524 Net income per share - Basic (0.31) 0.07 Net income per share - Diluted (0.31) 0.06 Shares in the table above include subordinate voting shares in the current year period and non-common voting shares in the comparative period. The comparative period share numbers including the effect of dilutive securities have been adjusted to reflect the share exchange ratio and Share Capital Reorganization described in Note 4 (a). For the three months ended November 30, 2025, the diluted loss per share equals the basic loss per share, as the effect would be anti-dilutive. Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (23) 21. Segment reporting The chief operating decision maker (CODM) evaluates segment performance at the segment profit level, which excludes depreciation, intangible asset amortization and impairment, share-based compensation, finance expenses and restructuring and acquisition related expenses. The CODM is the Chief Executive Officer. In the third quarter --- of the year ended August 31, 2025, the Company underwent a reorganization of its senior management structure. As a result, the Company's internal reporting and monitoring of performance have been revised to align with the new management responsibilities, in line with the reporting structure under the CODM. Consequently, in accordance with IFRS 8, Operating Segments, the Company has redefined composition of its reportable segments. Under the revised reportable segments, the Smart TV advertising operations and the Canadian FAST channels business have been moved from Canadian Media to Global Channels and Streaming. The following summarizes segment performance for the three months ended November 30, 2025: Production and Distribution Global Channels and Streaming Canadian Media Total of Segments $ $ $ $ Revenues 43,378 22,711 14,375 80,464 Direct content, production and delivery expenses 38,413 15,289 5,424 59,126 Sales, general and administrative expenses 5,148 4,105 4,167 13,420 Segment profit (loss) (183) 3,317 4,784 7,918 Corporate general and administrative costs 2,924 Share-based compensation 257 Depreciation and amortization 2,711 Finance expenses, net 440 Loss on sale of assets 3,054 Acquisition related expenses 2,540 Restructuring costs 788 Loss before income taxes (4,796) Current income tax expense 1,536 Deferred income tax expense 418 Net loss for the period (6,750) Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (24) The following summarizes segment performance for the three months ended November 30, 2024: Production and Distribution Global Channels and Streaming Canadian Media Total of Segments $ $ $ $ Revenues 12,099 21,100 15,508 48,707 Direct content, production and delivery expenses 12,117 11,340 5,915 29,372 Sales, general and administrative expenses 3,532 3,447 4,760 11,739 Segment profit (loss) (3,550) 6,313 4,833 7,596 Corporate general and administrative costs 1,244 Share based compensation 585 Depreciation and amortization 1,362 Finance expenses, net 2,019 Acquisition related expenses 68 Income before taxes 2,318 Current income tax expense 2,534 Deferred income tax recovery (1,434) Net income for the period 1,218 The following summarizes segment non-current assets as at November 30, 2025 and August 31, 2025: As at November 30, 2025 Production and Distribution Global Channels and Streaming Canadian Media Total Investment in content rights 38,346 38,864 32,596 109,806 Intangible assets 6,527 13,850 52,251 72,628 Goodwill 31,897 10,506 — 42,403 As at August 31, 2025 Production and Distribution Global Channels and Streaming Canadian Media Total Investment in content rights 47,325 39,221 32,560 119,106 Intangible assets 7,059 1,970 52,330 61,359 Goodwill 31,898 6,760 — 38,658 Non-current assets by geographic region are as follows: As at November 30, 2025 As at August 31, 2025 $ $ Non-current assets by geographic region: Canada 265,453 288,577 United States 11,729 263 Untied Kingdom 107 110 277,289 288,950 Blue Ant Media Corporation Notes to the Consolidated Financial Statements November 30, 2025 and 2024 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (25)