SEDAR Interim Financial Statements

GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 AND NOVEMBER 30, 2024 EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS UNLESS OTHERWISE NOTED UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS In accordance with National Instrument 51-102, the Company discloses that its external auditors have not reviewed the accompanying condensed consolidated interim financial statements, notes to the condensed consolidated interim financial statements and the related Management’s Discussion and Analysis. GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS (UNAUDITED) November 30, 2025 August 31, 2025 ASSETS CURRENT Cash and cash equivalents $ 1,715 $ 3,299 Restricted cash 717 1,388 Trade and other receivables 11,638 9,437 Secured loan receivable 7,866 7,951 Current development assets (Note 5) 3,300 3,300 Income taxes receivable 72 72 Prepayments 740 1,077 Inventory 4 97 TOTAL CURRENT ASSETS 26,052 26,621 Investment properties (Note 3) 307,275 306,494 Property and equipment 209 203 Right-of-use assets 2,837 2,965 Note receivable (Note 4(b)) 7,750 7,750 Development assets (Note 5) 869 869 Investment in joint venture (Note 4) 28,069 28,157 Intangible assets and goodwill 20 24 Deferred income tax assets 3,516 3,225 Other 1,069 1,048 TOTAL ASSETS $ 377,666 $ 377,356 LIABILITIES CURRENT Trade and other payables $ 14,422 $ 14,745 Income taxes payable 197 184 Deferred revenue 2,194 3,120 Current portion of borrowings (Note 6) 36,495 52,589 Current lease liabilities 4,839 4,708 TOTAL CURRENT LIABILITIES 58,147 75,346 Borrowings (Note 6) 147,523 130,621 Lease liabilities 16,462 17,729 Deferred income tax liabilities 8,998 8,916 TOTAL LIABILITIES 231,130 232,612 EQUITY Share capital (Note 7) 45,371 45,371 Reserves (Note 7) 7,534 7,579 Deficit (5,324) (5,270) Accumulated other comprehensive income 246 278 Shareholders’ Equity 47,827 47,958 Non-controlling interests (Note 8) 98,709 96,786 TOTAL EQUITY 146,536 144,744 TOTAL LIABILITIES AND EQUITY $ 377,666 $ 377,356 Approved on behalf of the Board: “Toby Chu” “Troy Rice” Toby Chu, Chief Executive Officer & Director Troy Rice, Director The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS) AND COMPREHENSIVE LOSS EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS EXCEPT PER SHARE DATA (UNAUDITED) Three Months Ended November 30, 2025 November 30, 2024 (Note 2d) REVENUES Educational $ 1,774 $ 2,492 Rental 5,138 4,507 Development fees 386 - Design and advertising 24 186 Commissions and referral fees 294 310 7,616 7,495 DIRECT COSTS Educational 1,290 1,584 Rental 1,233 1,207 Design and advertising 6 54 Commissions and referral fees 271 119 2,800 2,964 OTHER OPERATING COSTS General and administrative (Note 10) 2,383 4,173 Provision for (recovery of) expected credit loss on trade receivables (55) 78 Depreciation and amortization 147 168 Share-based payment 38 41 2,513 4,460 OPERATING INCOME 2,303 71 Finance costs (Note 11) (2,7 --- 46) (3,211) Net loss on fair value changes in investment properties (Note 3) (1,052) (2,646) Share of net loss related to investment in joint venture (Note 4) (35) - Other income (expense), net (Note 12) 2,079 (132) INCOME (LOSS) BEFORE INCOME TAXES 549 (5,918) Income tax recovery 196 774 Net income (loss) for the year from continuing operations 745 (5,144) Net income for the year from discontinued operations (Note 15) - 204 NET INCOME (LOSS) $ 745 $ (4,940) OTHER COMPREHENSIVE LOSS: Items that are or may be reclassified subsequent to profit or loss Exchange differences on translating foreign operations (32) (6) Other comprehensive loss, net of tax $ (32) $ (6) TOTAL COMPREHENSIVE INCOME (LOSS) 713 (4,946) The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS EXCEPT PER SHARE DATA (UNAUDITED) Three Months Ended November 30, 2025 November 30, 2024 (Note 2d) Net income (loss) from continuing operations attributable to: Global Education Communities Corp. shareholders (54) $ (2,363) Non-controlling interests (Note 8) 799 (2,781) $ 745 $ (5,144) Net income from discontinued operations attributable to: Global Education Communities Corp. shareholders - 204 Non-controlling interests (Note 8) - - $ - $ 204 Net income (loss) attributable to: Global Education Communities Corp. shareholders (54) (2,159) Non-controlling interests (Note 8) 799 (2,781) $ 745 $ (4,940) Total comprehensive income (loss) attributable to: Global Education Communities Corp. shareholders (86) (2,165) Non-controlling interests (Note 8) 799 (2,781) $ 713 $ (4,946) Net loss per share attributable to shareholders of Global Education Communities Corp. Basic and Diluted $ (0.00) $ (0.03) Net loss from continued operations per share attributable to shareholders of Global Education Communities Corp. Basic and Diluted $ (0.00) $ (0.03) Net income from discontinued operations per share attributable to shareholders of Global Education Communities Corp. Basic and Diluted $ - $ 0.00 Weighted average number of common shares outstanding Basic and Diluted 68,539,606 67,440,040 The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS EXCEPT SHARE DATA (UNAUDITED) Share Capital Note Number of Common Shares Dollar Amount Reserves AOCI Deficit Total Shareholders’ Equity Non- Controlling Interests Total Equity August 31, 2024 67,440,040 $ 44,969 $ 7,372 $ 278 $ (27,411) $ 25,208 $ 116,724 $ 141,932 Net income for the period - - - - (2,159) (2,159) (2,781) (4,940) Unrealized translation adjustments - - - (6) - (6) - (6) Total comprehensive income (loss) (6) (2,159) (2,165) (2,781) (4,946) Share-based payments 7(b) - - 41 - - 41 - 41 Distributions to non-controlling interests 8 - - - - - - (5,333) (5,333) Ownership changes resulting in loss of control 8 - - - - - - (19,200) (19,200) Ownership changes resulting in gain of control 8 - - - - - - 23,707 23,707 Convertible debenture - equity component 6 - - 126 - - 126 - 126 November 30, 2024 67,440,040 $ 44,969 $ 7,539 $ 272 $ (29,570) $ 23,210 $ 113,117 $ 136,327 August 31, 2025 68,740,040 $ 45,371 $ 7,579 $ 278 $ (5,270) $ 47,958 $ 96,786 $ 144,74 --- 4 Net loss for the period - - - - (54) (54) 799 745 Unrealized translation adjustments - - - (32) - (32) - (32) Total comprehensive loss (32) (54) (86) 799 713 Share-based payments 7(b) - - 38 - - 38 - 38 Distributions to non-controlling interests 8 - - - - - - (314) (314) Contributions from non-controlling interests 8 - - - - - - 1,438 1,438 Purchase of treasury shares (319,500) - (83) - - (83) - (83) November 30, 2025 68,420,540 $ 45,371 $ 7,534 $ 246 $ (5,324) $ 47,827 $ 98,709 $ 146,536 The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS (UNAUDITED) Three months ended November 30, 2025 November 30, 2024 (Note 2d) OPERATING ACTIVITIES Net income (loss) $ 745 $ (5,452) Items not affecting cash: Depreciation and amortization 147 168 Share-based compensation (Note 7(b)) 38 41 Net loss on fair value changes in investment properties (Note 3) 1,052 2,646 Provision for (recovery of) expected credit losses on trade receivables (55) 78 Finance cost (Note 11) 2,746 3,261 Current Income tax expense 13 (68) Deferred income tax (recovery) expense (209) (706) Net loss related to investment in joint venture (Note 4) 35 - Other 222 196 Net changes in non-cash working capital (Note 13(a)) (2,205) 486 Cash generated from operations 2,529 650 Interest paid (1,822) (2,279) Net cash provided by (used) in operating activities from continuing operations 707 (1,629) Net cash provided by operating activities from discontinued operations 1,413 Net cash provided by (used in) operating activities 707 (216) INVESTING ACTIVITIES Purchases of property and equipment (21) (9) Return of capital from equity investment (Note 4) - 5,000 Acquisition and development of investment properties (Note 3) (720) (1,053) Capitalized borrowing costs (955) (2,809) Other 53 (29) Net cash provided by (used in) investing activities from continuing operations (1,643) 1,100 Net cash used in investing activities from discontinued operations - (62) Net cash provided by (used in) investing activities (1,643) 1,038 FINANCING ACTIVITIES Repayments of borrowings (Note 13(b)) (23,881) (298) Advances from borrowings (Note 13(b)) 24,663 275 Payments of lease liabilities (1,612) (1,023) Repurchase of common shares (83) - Distributions to non-controlling interest (329) (8) Contributions from non-controlling interest 1,438 - Payment of financing costs (842) (54) Other 31 7 Net cash used in financing activities from continuing operations (615) (1,101) Net cash provided by financing activities from discontinued operations - 617 Net cash used in financing activities (615) (484) Effects of exchange rate changes on cash and cash equivalents (33) (8) Increase (decrease) in cash and cash equivalents (1,584) 330 Cash and cash equivalents, beginning of period 3,299 2,132 Cash and cash equivalents, end of period $ 1,715 $ 2,462 SUPPLEMENT CASH FLOW INFORMATION (Note 13) The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 1 – NATURE OF OPERATIONS Global Education Communities Corp. (the “Company” or “GECC”) is an educational and student-housing real estate company hea --- dquartered in Vancouver, British Columbia, Canada. The Company’s current business operations include education, media communications, revenue producing properties and real estate development. The Company currently has four principal business units/segments, being SSLC Language College (“SSLC”), which includes SSLC Business College (formerly Vancouver International College or “VIC”), CIBT School of Business & Technology Corp. (“CIBT”), IRIX Design Group Inc. (“IRIX”), and Global Education City Holdings Inc. (“GECH”). The Company’s education business is conducted through SSLC in Canada and through CIBT and its subsidiaries in Asia. The Company operates its media communications business through IRIX. GECH is an investment holding and management company with a focus on education related real estate projects in Vancouver, Canada. During the year ended August 31, 2025, the Company divested its equity interest in and discontinued the Sprott Shaw Community College (“SSCC”) business segment. The head office and principal address of the Company are located at Suite 1200, 777 West Broadway, Vancouver, British Columbia, Canada and its registered and records offices are located at 733 Seymour Street, Suite 2900, Vancouver BC V6B 0S6. NOTE 2 – BASIS OF PREPARATION (a) Statement of Compliance These unaudited condensed consolidated interim financial statements include the accounts of GECC, the ultimate parent company of its consolidated group, and its subsidiaries and are prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”). Certain disclosures included in annual financial statements prepared in accordance with IFRS® Accounting Standards as issued by the IASB have been condensed or omitted. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended August 31, 2025. The accounting policies applied in the preparation of these unaudited condensed consolidated interim financial statements are consistent with those applied and disclosed in Note 28 of the Company’s audited consolidated financial statements for the year ended August 31, 2025. These unaudited condensed consolidated interim financial statements of the Company were approved by the Company’s Board of Directors and authorized for issue on January 13, 2026. (b) Use of Estimates, Assumptions and Judgements In the preparation of the unaudited condensed consolidated interim financial statements and the application of the Company’s accounting policies, management is required to make judgements, estimates and assumptions that affect the carrying amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the unaudited condensed consolidated interim financial statements and the reported amounts of revenues and expenses during each reporting period. The estimates and associated assumptions are limited by the relevance of historical data and uncertainty of future events, and are reviewed on an ongoing basis. Revisions to estimates are recognized in the period in which the estimates are revised and in any future periods. Actual results could differ from those estimates. Critical judgements and estimates made by management in applying the Company’s accounting policies including significant areas of estimation uncertainty were the --- same as those applied and disclosed in Note 3 to the audited consolidated financial statements for the year ended August 31, 2025. (c) New accounting standards, interpretations and amendments not yet effective Certain new accounting standards, amendments to standards, and interpretations have been issued by the IASB that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company in the year of adoption as described in Note 4(b) to the audited consolidated financial statements for the year ended August 31, 2025. (D) Discontinued operations Discontinued operations are reported when a component of the Company, representing a separate major line of business or geographical area of operations with clearly distinguishable cash flows, has been disposed of or is held for sale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. Discontinued operations are reported as a separate element on the consolidated statements of income (loss) and comprehensive income GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 (loss) for both the current and comparative periods. For the period ended November 30, 2025, the Company has classified and reported SSCC as a discontinued operation. NOTE 3 – INVESTMENT PROPERTIES The following table is a reconciliation of investment properties balances, including both revenue producing properties and properties under development, which are owned by the real estate limited partnerships which the Company controls. The Company selected the fair value model to apply to its investment properties. November 30, 2025 August 31, 2025 Balance, beginning of year $ 306,494 $ 419,002 Development costs 722 1,771 Capitalized borrowing costs (2) 1,111 8,503 Derecognized investment properties (Note 4) - (105,500) Net loss on change in fair value (1,052) (17,282) Balance, end of period $ 307,275 $ 306,494 (1) Two right-of-use assets are classified as investment properties. The fair value of the right-of-use assets are determined based on present value of the estimated future net cash flows of the right-of-use assets. (2) Borrowing costs are capitalized on properties under development which are considered qualifying assets. Borrowings are directly associated with the specific project. NOTE 4 – INVESTMENT IN JOINT VENTURE (a) GEC Oakridge On November 20, 2024, the Company executed several agreements relating to the investment in the GEC® Oakridge investment property by an affiliate of Pomerleau Capital Inc. (“PCAP”). A series of reorganization transactions were completed which resulted in the Company and PCAP jointly controlling the limited partnership which owns the GEC® Oakridge investment property (“LP11”). PCAP's gross investment amount was $10,000, of which $5,000 was invested into the LP11 and $5,000 was repatriated by the existing unit holders, which are controlled limited partnerships of the Company. Upon completion of these transactions, PCAP and the Company own 34.5% and 13.1% equity interest in LP11, respectively. The remaining 52.4% of LP11 is owned by a limited partnership of which the Company gained control during the reorganization (“Oakridge LP”). Upon closing of the transaction, net asset --- s of LP11 were derecognized and net assets of Oakridge LP were recognized. Net assets of LP11 include $53,000 of investment property, $28,722 of secured loans, and $471 of other assets. Net assets of Oakridge LP include $19,046 of equity accounted investment in LP11, $4,518 of receivables from a controlled subsidiary of GECC that is fully eliminated on consolidation, and $12 of other liabilities. The Company also derecognized $19,046 of non-controlling interest in LP11 and recognized $23,460 of non-controlling interest in Oakridge LP, resulting in $nil in gains associated with the loss of control of LP11. The following table summarizes the financial information of LP11 and reconciles the carrying amount of the Company's interest in LP11: November 30, 2025 August 31, 2025 GECC ownership interest 65.5% 65.5% Assets Cash $ 1,659 $ 901 Other current assets 761 783 Other long-term assets 2,617 2,632 Investment property 69,894 61,300 Total assets $ 74,931 $ 65,616 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 4 – INVESTMENT IN JOINT VENTURE (continued) (a) GEC Oakridge (continued) November 30, 2025 August 31, 2025 GECC ownership interest 65.5% 65.5% Liabilities Current liabilities $ 4,259 $ 2,709 Non-current portion of secured loans 47,450 39,649 Total liabilities 51,709 42,358 Net assets $ 23,222 $ 23,258 GECC's share of net assets (65.5%) 15,215 15,238 Opening adjustments: Additional loss allocation to GECC (2) (1,913) - Elimination of downstream revenue (1) (159) (159) Other (67) (67) (2,139) (226) Current period adjustments: Additional loss allocation to GECC (2) (12) (1,913) Elimination of downstream revenue (1) (53) - (65) (1,913) Carrying value of investment in joint venture 13,011 13,099 Loss and comprehensive loss (100%) 35 5,549 Loss and comprehensive loss (65.5%) 23 3,636 Additional allocation of loss to GECC (3) 12 1,913 GECC's share of loss and comprehensive loss 35 5,549 (1) (1) The Company charged $265 of development management fees to LP11 during the period ended November 30, 2025 (November 30, 2024 - $Nil). These fees are capitalized to investment properties in the accounts of LP11 and recognized as revenue in the Company's income (loss) and comprehensive income (loss). The downstream revenue is eliminated to the extent of the Company's economic interest in the investee. (2) Under the terms of the LP11 partnership agreement, net losses for each fiscal period are allocated first to GECC and Oakridge LP (proportionate to each investor's ownership interest in LP11) until each of its capital accounts reach $Nil, then to PCAP until its capital account reaches $Nil, and any remaining losses to the general partner. Net income is allocated in the reverse order, first to recoup prior year loss allocations of each investor, and any remaining profits proportionate to each investors' ownership interest in LP11. In accordance with these terms, 100% of LP11's net loss during the periods ended November 30, 2025 and November 30, 2024 was allocated to the Company. As at November 30, 2025, LP11 had $43,972 (August 31, 2025 - $54,401) in capital expenditures contracted for but not recognized as liabilities. In accordance with the LP11 partnership agreement, partnerships controlled by the Company are responsible for 50% of capital contributions required for the development and constr --- uction of the GEC® Oakridge property. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 4 – INVESTMENT IN JOINT VENTURE (continued) (b) GEC Education Mega Center On May 1, 2025, the Company executed several agreements with Pure Group of Companies (the "Pure Group") relating to the investment in the GEC EMC investment property. A series of reorganization transactions were completed which resulted in the Company and the Pure Group jointly controlling the newly formed limited partnership (the "Pure GECC LP") which became the beneficial owner of the GEC EMC investment property. The Pure Group contributed $4,000 in cash in exchange for 20% of equity interest in Pure GECC LP, and the Company contributed the GEC EMC investment property in exchange for 80% of equity interest in, and $7,750 in non-interest bearing receivables from, the Pure GECC LP. Pure GECC LP also assumed all secured loans associated with the GEC EMC investment property as part of the transaction. Upon closing of the transaction, the contractual value of the investment property was determined to be a reasonable estimate for the fair value of the investment property. Accordingly, the Company derecognized $52,500 of investment property and $28,750 of secured loans associated with GEC EMC. The Company recognized $413 of capitalized losses associated with the derecognition of secured loans in Investment properties, and recognized $1,045 of fair value losses associated with the derecognition of the GEC EMC investment property in the consolidated statements of comprehensive income. The following table reconciles the carrying amount of the Company's interest in Pure GECC LP to the summarized financial information of Pure GECC LP: November 30, 2025 August 31, 2025 GECC ownership interest 80% 80% Assets Cash $ 88 $ 137 Other current assets 254 434 Other long-term assets 235 434 Investment property 55,955 54,500 Total assets $ 56,532 $ 55,505 Liabilities Current liabilities $ 9,959 $ 8,932 Current portion of secured loans (1) 27,750 27,750 Total liabilities $ 37,709 $ 36,682 Net assets (100%) $ 18,823 $ 18,823 Carrying value of investment in joint venture (80.0%) $ 15,058 $ 15,058 Loss and comprehensive loss (100%) - 1177 GECC's share of loss and comprehensive loss (80.0%) $ - $ 942 (1) Pure GECC LP secured loans are guaranteed by the Company. In August 2025, the Company acquired the beneficial interest in a secured loan payable held by the Pure GECC LP. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 4 – INVESTMENT IN JOINT VENTURE (continued) (c) Changes in Investment in joint venture Changes in Investment in joint venture during the period are summarized below. November 30, 2025 August 31, 2025 Balance, beginning of period $ 28,157 $ - Recognition of Investment in GEC Oakridge joint venture - 23,807 Recognition of Investment in GEC EMC joint venture - 16,000 Return of capital from GEC Oakridge joint venture - (5,000) Share of net loss in Investment in GEC Oakridge joint venture (35) (5,549) Elimination of downstream revenue with GEC Oakrdige joint venture (53) (159) Share of net loss in Investment in GEC EMC joint venture - (942) Balance, end of period $ 28,069 $ 2 --- 8,157 NOTE 5 – DEVELOPMENT ASSETS At November 30, 2025, real estate properties under development included $3,300 of receivable from developer (August 31, 2025 - $3,300) and $869 Deferred costs and other (August 31, 2025 - $869). Receivable from developer relates to GEC Project 9 described below, and the amount before provision for expected credit losses includes $6,000 of outstanding interest receivable (August 31, 2025 - $6,000). GEC Project 9 Pursuant to a Purchase and Development Agreement (“LP9 PDA”) with a Vancouver developer for the construction of a number of buildings, the limited partnership that holds Project 9 (“GEC LP9”), in which the Company holds an ownership interest, paid a total of $60,000 in deposits associated with the right to purchase a portion of the completed project. The LP9 PDA was subsequently amended, with $20,000 of the deposits already paid to be returned to GEC LP9 with the remainder $40,000 deposit to be applied to the purchase price. The $20,000 receivable is subject to interest of 15% per annum and the Company has recognized accrued interest of $6,000 as at November 30, 2025 (August 31, 2025 - $6,000). Numerous project milestones were missed and on April 1, 2022, the developer and its partners (collectively, the “Developer”) applied for and were granted an initial order to commence proceedings under the Canadian Companies’ Creditor Arrangement Act (the “CCAA”) to restructure its business. Under the CCAA proceedings, the Developer under the supervision of the Supreme Court of British Columbia (the “Court), was to determine whether the project would be restructured or sold. At November 30, 2025, it was not known whether there would be a successful bid for the purchase of the property or restructuring of the project; however, based on activity there is the possibility that GEC LP9 may not be repaid any portion of the amount receivable from the Developer, despite this balance being secured by a third mortgage. GEC LP9 has recognized an expected credit loss provision related to the $20,000 receivable (plus $6,000 of accrued interest) due from the developer of $22,700, and an impairment loss of $40,000 related to the $40,000 deposit during the year ended August 31, 2022. At November 30, 2025 , net development assets associated with GEC Project 9 was $3,300 (August 31, 2025 - $3,300). On October 6, 2022, GEC LP9 and its general partner filed a notice of civil claim with the Supreme Court commencing legal action against the mortgage lender for the project. In December 2022, GEC LP9 and its general partner responded to a counterclaim filed. The liability portion of the trial completed in May 2024. On August 7, 2024, the Supreme Court dismissed the claims of GEC LP9 and its general partner, and allowed the mortgage lender’s counterclaim against them with damages to be assessed (the “Trial Decision”). GEC LP9 and its general partner have appealed the Trial Decision to the BC Court of Appeal. By means of a decision dated September 22, 2025, the BC Court of Appeal allowed the appeal in part and remitted certain questions back to the BC Supreme Court. Also, on or about November 21, 2025, the mortgage lender applied for leave to the Supreme Court of Canada, seeking to overturn portions of the BC Court of Appeal decision. Proceedings in both the BC Court of Appeal and Supreme Court of Canada Appeal remain on-going at this time. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMEN --- TS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 6 – BORROWINGS The carrying value of borrowings by entities controlled by the Company are as follows: November 30, 2025 August 31, 2025 Current liabilities Current portion of secured loans (a) $ 32,799 $ 44,513 Current portion of convertible debentures (b) 1,365 5,746 Current portion of government loans (1) 84 83 Current portion of loans payable (2) 2,247 2,247 $ 36,495 $ 52,589 Non-current liabilities Secured loans (a) 136,047 123,579 Convertible debentures (b) 5,410 1,051 Loans payable (2) 5,631 5,495 Government loans (1) 435 496 $ 147,523 $ 130,621 Total borrowings $ 184,018 $ 183,210 (1) Loans payable to the Government of Canada or designated lender under COVID-19 related programs with monthly payments up to March 2032. (2) In January 2024, the Company issued a loan with total principal of $5,000. The loan bears interest at 12% per annum with a portion of interest deferred until maturity in December 2026. Loans payable have maturity dates ranging from December 2025 to December 2026. Total interest expense and finance fees associated with borrowings, including amounts capitalized to investment properties, was $3,412 for the period ended November 30, 2025 (November 30, 2024 - $5,741), of which $2,301 was recognized in net income (November 30, 2024 - $2,834). Approximately 25% of the outstanding borrowings at November 30, 2025 have variable interest rates linked to the Canadian prime rate (August 31, 2025 – 49%). Certain interest rates are subject to minimum rates with certain loans including escalation clauses. (a) Secured loans payable The following table is a continuity of the activity of the loans secured by mortgages associated with the real estate business. Loan payments are interest only or blended payments of principal and interest. Secured loans have maturity dates ranging from September 2024 to March 2031. Full repayment of loans before maturity is permitted subject to specific criteria and satisfaction of minimum interest payment requirements. See Note 9(b) for cash flow commitments related to these loans. November 30, 2025 (1) August 31, 2025 Balance, beginning of period $ 168,092 $ 231,450 Advances 24,663 58,827 Repayments (23,860) (61,486) Derecognition of liability (Note 4) - - Finance costs incurred (586) (6,041) Accretion of finance costs 454 2,802 Loss on derecognition of liability 83 1,144 Modification (gains) losses on non-substantial modification (2) - (1,132) Derecognized on loss of control - (57,472) Total current and non-current secured loans, end of period (3) $ 168,846 $ 168,092 (1) At November 30, 2025, interest rates range from 1.88% to 11.82% per annum (August 31, 2025 – 1.88% to 12.00%) (2) During the years ended August 31, 2025 and August 31, 2024, certain terms for several secured mortgages, including maturity dates, interest rates and principal amounts, were changed resulting in non-substantial modifications gains and losses, net. (3) Secured loans are secured by investment properties with an aggregate carrying value of $287,020. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 6 – BORROWINGS (continued) (b) Convertible debentures In May 2019, the Company issued Hong Kong dollar (“HKD”) denominated and Canadian dollar denominate --- d convertible debentures (the “2019 Debentures”) and received proceeds of $8,642. In February 2020, the Company issued Canadian dollar denominated convertible debentures (the “2020 Debentures”) and received proceeds of $860. For the 2019 Debentures and 2020 Debentures, each debenture holder may elect to convert all or part of its outstanding principal into common shares of the Company at the conversion prices set at issuance. For the 2019 Debentures, the conversion prices were set in the currency of funding and ranged between HKD 4.80 and HKD 5.00 for HKD denominated debentures, and $0.78 for Canadian dollar denominated debentures. The 2020 Debenture conversion price was set at $0.81. Interest payments are made either quarterly or semi-annually at a rate ranging between 8% to 10% per annum as specified in the individual debenture. During period ended November 30, 2025, the maturity date of the 2019 Debenture was amended and the convertible feature cancelled. At November 30, 2025, the 2019 Debentures mature in May 2027 and the 2020 Debentures are due on demand. In September 2024, the Company issued convertible debentures for proceeds of $1,505 (“2024 Debentures”). The 2024 Debentures have a maturity of one year, extendable for one additional year at the option of the Company, and are convertible into common shares of the Company at a price of $0.30 in the first of year and $0.36 in the second year. Interest is payable quarterly at a 10% per annum interest rate. At initial recognition, the convertible debentures are considered a compound financial instrument that included a host liability classified as amortized cost and a conversion option classified as equity. At initial recognition, the fair value of the host liability was determined first ($1,346) with the residual amount ($126) allocated as equity component to the compound financial instrument. In August 2025, $390 out of the $1,505 outstanding 2024 Debentures principal balance was converted into 1,300,000 common shares of the Company. As a result, the Company transferred $33 of the equity component of convertible debt and $370 of the host liability for a total of $403 to share capital during the year ended August 31, 2025. The balances associated with the 2019, 2020 and 2024 Debentures are presented as follows: November 30, 2025 August 31, 2025 Carrying value of host liabilities at beginning of period $ 6,765 $ 4,951 Issuances - 1,505 Equity portion allocated - (126) Less: transaction costs (256) (33) Accretion of carrying value of host liabilities 179 743 Converted to equity - (370) Foreign exchange adjustments 87 95 Carrying value of host liabilities at end of period $ 6,775 $ 6,765 Carrying value of embedded derivatives at beginning of period $ 32 $ 83 Fair value (decrease) increases in liability (32) (53) Foreign exchange adjustments - 2 Carrying value of embedded derivatives at end of period $ - $ 32 Total convertible debentures at end of period $ 6,775 $ 6,797 Current portion of debentures $ 1,365 $ 5,746 Non-current portion of debentures 5,410 1,051 Total convertible debentures $ 6,775 $ 6,797 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 7 – CAPITAL AND RESERVES (a) Treasury shares Pursuant to the provisions of a normal course issuer bid approved by the Toronto Stock Exchange, the Company from time to time acquir --- es its own common shares for cancellation. The following table details changes in the treasury shares balance: Three Months Ended November 30, 2025 November 30, 2024 Beginning of fiscal year – common shares held in treasury 97,500 - Common shares purchased 222,000 - End of period – common shares held in treasury 319,500 - (b) Stock options Three Months Ended November 30, 2025 August 31, 2025 Beginning of fiscal year – stock options 4,050,000 3,010,000 Granted - 2,100,000 Expired/forfeited - (1,060,000) End of period – stock options 4,050,000 4,050,000 There were no options granted during the period ended November 30, 2025. During the period ended November 30, 2024, the weighted average fair value of stock options granted of $0.16 per option was calculated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and inputs: expected life of 5 years; risk-free interest rate of 4.25%; expected volatility of 39.7%; weighted average forfeiture rate of 8.3%; and weighted average share price of $0.38. The expected volatility assumption is based on historical volatility of the Company’s common share price on the TSX. The risk-free interest rate assumption is based on yield curves on Canadian government zero coupon bonds with the remaining term equal to the stock options expected life. The options outstanding at November 30, 2025 had an exercise price range of $0.22 to $0.53 (August 31, 2025 - $0.22 to $0.53) and a weighted average contractual life of 3.19 years (August 31, 2025 - 2.47 years). At November 30, 2025, if all exercisable options were exercised total cash received would be $1,013 (August 31, 2025 - $857). NOTE 8 – INTERESTS IN OTHER ENTITIES The following continuity reflects the movement in the equity attributable to non-controlling interests in the Company. Additional information about each subsidiary which has a non-controlling interest is presented in Note 16 to the audited consolidated financial statements for the year ended August 31, 2025. November 30, 2025 August 31, 2025 GECH at beginning of period $ 97,112 $ 117,040 Contributions from sale of limited partnership units 1,438 - Distribution declared (314) (6,209) Ownership changes not resulting in loss of control (Note 4a) - 23,460 Derecognition of NCI (Note 4a) - (19,046) Allocation of net comprehensive income for period ended 811 (18,133) GECH at end of period 99,047 97,112 CIBT (55) (54) IRIX (283) (272) Total non-controlling interests $ 98,709 $ 96,786 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 9 – FINANCIAL INSTRUMENTS (a) Classification and measurement of financial assets and liabilities by category The following represents the carrying values of the financial assets and liabilities of the Company and the associated classifications and measurement basis for each balance after initial recognition. November 30, 2025 August 31, 2025 Financial assets Measurement basis Cash and cash equivalents Amortized cost $ 1,715 $ 3,299 Restricted cash Amortized cost 717 1,388 Secured loan receivable Amortized cost 7,866 7,951 Note receivable (Note 4(b)) Amortized cost 7,750 7,750 Trade and other receivables Amortized cost 11,638 9,437 Current development assets Amortized cost 3,300 3,300 $ 32,986 $ 33,125 November 30, 2025 August 31, 2025 Financial liabilities Me --- asurement basis Trade and other payables Amortized cost $ 14,422 $ 14,745 Secured loans (Note 6) Amortized cost 168,846 168,092 Lease liabilities Amortized cost 21,301 22,437 Convertible debentures – liability (Note 6(b)) Amortized cost 6,775 6,765 Convertible debentures – derivatives (Note 6(b)) FVTPL - 32 Loans payable (Note 6) Amortized cost 7,878 7,742 Government loans (Note 6) Amortized cost 519 579 $ 219,741 $ 220,392 Financial instruments not measured at fair value The carrying amounts of Cash and cash equivalents, Restricted cash, Trade and other receivables, and Trade and other payables are considered reasonable approximations of their fair values due to the short-term nature of these instruments. The carrying value for Secured loan receivable, Note receivable and Current development assets is considered a reasonable approximation of its fair value taking into consideration the expected credit loss provision that has been recognized (Note 5). With the exception of one secured loan, the fair value of Secured loans payable, Lease liabilities, liabilities portion of Convertible debentures, Loans payable and Government loans approximate their carrying value as current market interest rates are not significantly different than stated interest rates for these instruments. At November 30, 2025, the fair value of one secured loan was $3,277 lower than the carrying amount due to below market interest rate on the loan. The fair value of secured loans has been determined by discounting the contractual cash flows using implied yields of obligations bearing similar credit risk and maturities. All financial instruments not measured at fair value are considered level 2 financial assets or liabilities under the fair value hierarchy, except for the receivable from developer of $3,300 and loans receivable of $3,740 which are considered level 3 financial assets. Measurement of fair value As described in Note 28(J) to the Company’s audited consolidated financial statements for the year ended August 31, 2025 the fair value hierarchy establishes three levels to classify the significance of inputs to valuation techniques used in making fair value measurements of financial assets and liabilities. At November 30, 2025 and August 31, 2025 there were no financial assets and financial liabilities measured and recognized at fair value on a non-recurring basis. There were no transfers between any of the levels during the three months ended November 30, 2025. The valuation methodologies for level 2 and level 3 financial liabilities are described in Note 22(b) to the audited consolidated financial statements for the year ended August 31, 2025. There were no changes to the valuation methodology used in the measurement of fair value for level 2 or level 3 financial assets and liabilities during the three months ended November 30, 2025. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 9 – FINANCIAL INSTRUMENTS (continued) (b) Financial instruments risk A description of the Company’s financial instruments and financial risks that the Company is exposed to and management of these risks is included in Note 22 and Note 23 to the audited consolidated financial statements for the year ended August 31, 2025. There were no significant changes in the Company’s exposures to those risks during the three months end --- ed November 30, 2025. The Canadian prime rate decreased from 4.95% to 4.45% during the three months ended November 30, 2025. Lower interest rates result in reduced required cash flows to finance debt which will impact the Company’s results and future cash flows. The total proportion of principal subject to variable interest was 25% at November 30, 2025 (August 31, 2025 - 49%). The weighted average interest rate paid by the Company at November 30, 2025 was 5.4% on its secured loans (August 31, 2025 – 5.7%). Maturities of financial liabilities The table below presents the Company’s contractual undiscounted cash flows associated with financial liabilities broken into relevant maturity groupings based on their contractual maturities. November 30, 2025 Less than one year 2-3 years 4-5 years Over 5 years Total Trade and other payables $ 14,422 $ - $ - $ - $ 14,422 Secured loans (1) 52,777 17,849 48,182 88,403 207,211 Lease payments (2) 7,039 14,117 5,202 2,542 28,900 2019, 2020 and 2024 Debentures 2,522 6,197 - - 8,719 Other loans 3,308 6,334 248 177 10,067 Total $80,068 $44,497 $53,632 $91,122 $269,319 (1) Interest reserves of $10 exist to offset future interest payments on certain borrowings. (2) Includes lease payments recognized as lease liabilities, estimated variable lease payments and short term lease payments. August 31, 2025 Less than one year 2-3 years 4-5 years Over 5 years Total Trade and other payables $ 14,745 $ - $ - $ - $ 14,745 Secured loans (1) 52,216 17,810 48,685 89,320 208,031 Lease payments (2) 7,011 14,078 6,765 2,754 30,608 2019, 2020 and 2024 Debentures 6,261 1,142 - - 7,403 Other loans 3,581 6,363 183 127 10,254 Total $ 83,814 $ 39,393 $ 55,633 $ 92,201 $ 271,041 (1) Interest reserves of $198 exist to offset future interest payments on certain borrowings. (2) Includes lease payments recognized as lease liabilities, estimated variable lease payments and short term lease payments. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 10 – GENERAL AND ADMINISTRATIVE EXPENSES Three Months Ended November 30, 2025 November 30, 2024 Salaries and benefits $ 904 $ 1,190 Office and general 287 428 Advertising 33 148 Professional fees 630 1,808 Consulting and management fees 235 226 Investor relations 40 43 Bank charges and interest 53 25 Rent 169 294 Travel and promotion 32 11 General and administrative expenses 2,383 4,173 NOTE 11 – FINANCE COSTS Three Months Ended November 30, 2025 November 30, 2024 Interest expense comprised of: Interest expense on borrowing $ 2,683 $ 4,931 Accretion of finance fee and other 729 810 Accretion of lease liabilities 477 754 3,889 6,495 Less: capitalized interest and finance fees (1,111) (3,152) Total interest expense 2,778 3,343 Gain on embedded derivatives, net (Note 6(b)) (32) (49) Debt modification gains, net - (82) Other - (1) Total finance costs $ 2,746 $ 3,211 NOTE 12 – OTHER INCOME (EXPENSE), NET Three Months Ended November 30, 2025 November 30, 2024 Interest and other income, net $ 245 $ 12 Foreign exchange gain (45) (144) Gain on derecognition of financial liabilities (83) - Downstream revenue from equity investee 212 - Gain on settlement of legal claim (1) 1,750 - Total other income, net $ 2,079 $ (132) (1) In October 2025, the Company resolved a legal matter related to a construction deficiency at a property acquired by the Comp --- any. Under the terms of the settlement agreement, the counterparty agreed to pay the Company $1,750. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 13 – SUPPLEMENTAL CASH FLOW INFORMATION (a) Changes in working capital Three Months Ended November 30, 2025 November 30, 2024 Changes in: Accounts receivable $ (2,114) $ (773) Prepayments 338 1,489 Inventory 93 - Accounts payable and accrued liabilities (267) (108) Deferred revenue (926) (122) Restricted cash 671 - Changes in working capital $ (2,205) $ 486 (b) Changes in liabilities arising from financing activities Three Months Ended November 30, 2025 November 30, 2024 Total borrowings, beginning of period $ 183,210 $ 250,956 Cash flows, comprised of: 782 1,044 Repayments of secured loans (Note 6(a)) (23,860) (277) Advances of secured loans 24,663 - Advances of credit facility - 1,067 Issuance of convertible debt (Note 6(b)) - 275 Repayment of other loans (21) (21) Liability related items: Finance fees (842) (54) Non-cash related items: Finance cost accretion (1) 729 922 Equity component of convertible debt (Note 6(b)) - (126) Derecognition of liabilities - (28,722) Derivative fair value changes (32) (49) Loss on derecognition of liability 83 - Foreign exchange and other 88 198 Total borrowings, end of period $ 184,018 $ 224,169 (1) Includes increase in carrying value of secured debt resulting from net debt modification gain. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 14 – RELATED PARTY TRANSACTIONS The Company’s related parties include its subsidiaries, associates over which it exercises significant influence, and key management personnel. During its normal course of operation, the Company enters into transactions with its related parties for goods and services. Transactions with related parties are in the normal course of operations and are measured at the amount exchanged. (a) Key management personnel compensation: Three Months Ended November 30, 2025 November 30, 2024 Management salaries and director’s fees $ 208 $ 184 Share-based payments 32 32 Total key management personnel compensation $ 240 $ 216 (b) Other related party balances: November 30, 2025 August 31, 2025 Due to officers and directors of the Company (1) $ 1,800 $ 1,913 Due to the president of IRIX (2) 165 170 Due to related parties $ 1,965 $ 2,083 (1) Amounts due are non-interest bearing and have no fixed terms of repayment. (2) No fixed terms of repayment, bearing interest at a rate of 6% per annum. At November 30, 2025, $140 (August 31, 2025 - $140) of the 2024 Debentures are held by officers and directors of the Company. At November 30, 2025, the Company recorded a $7,750 non-interest bearing, due on demand note receivable (Note 6(b)) and a $7,866 secured loan receivable from Pure GECC LP. The secured loan receivable was acquired by the Company in August 2025 from an arms-length third party for cash proceeds of $7,750. The secured loan matures in March 2026 and bears a prime-linked interest rate of 15.5% as at November 30, 2025. During the period ended November 30, 2025, the Company recognized $215 of interest income associated with the secured loan receivable in the consolidated statement of in --- come (loss) and comprehensive income (loss). NOTE 15 – DIVESTMENT OF SSCC On July 4, 2025, the Company entered into a definitive agreement to sell 100% of the issued and outstanding shares of SSCC (the “SSCC Divestment”). The SSCC Divestment was completed on August 7, 2025. The consideration consisted of initial cash proceeds of $32,224 and $3,240 of closing receivable for final working capital adjustments. At November 30, 2025, the closing receivable is recorded as Trade and other receivables. The results of operations for SSCC are presented as discontinued operations for the period ended November 30, 2024 as shown below. Three Months Ended November 30, 2024 Revenue $ 10,257 Direct costs (4,367) Gross Profit 5,890 Operating costs 5,445 Other items 183 Income before income taxes 262 Income tax expense 58 Net income and comprehensive income for the year from discontinued operations $ 204 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 16 – SEGMENTED INFORMATION The Company’s primary industry and geographic segments are in Canada where SSCC operates technical and career training schools, SSLC and VIC operate English language schools, IRIX conducts web design and advertising services, and GECH invests in and manages education related real estate projects, and in China where CIBT operates technical and career training schools. The Company’s corporate operations are also in Canada. Transactions between SSCC, SSLC/VIC, IRIX, GECH, CIBT and the Company (Corporate) are reported as inter-segment transactions and are eliminated on consolidation. Three Months Ended November 30, 2025 CIBT SSLC/VIC IRIX GECH Corporate Total Revenues Revenues from contracts with customers Educational $ 426 $ 1,349 $ - $ - $ - $ 1,775 Rental - - - 554 - $ 554 Design and advertising - - 24 - - $ 24 Commissions and referral fees 294 - - - - $ 294 Total revenues from customers 720 1,349 24 554 - 2,647 Revenues from leases - - - 4,584 - 4,584 Revenues from development fees - - - - 385 385 Total revenues $ 720 $ 1,349 $ 24 $ 5,138 $ 385 $ 7,616 Revenues, net of direct costs $ 199 $ 308 $ 18 $ 3,905 $ 386 $ 4,816 Other expenses (income): General and administrative 157 625 50 770 781 2,383 Provision for (recovery of) expected credit loss on trade receivables 52 (107) - - - (55) Depreciation and amortization 2 108 6 2 29 147 Share-based payment expense - - - - 38 38 Interest expense - 61 - 2,370 347 2,778 Finance fees expense and other - - - - (32) (32) Loss on fair value changes in investment properties - - - 1,052 - 1,052 Interest and other income - - - (241) (216) (457) Foreign exchange loss (46) - - - 91 45 Gain on settlement of legal claim - - - (1,750) - (1,750) Share of net loss related to joint venture - - - 35 - 35 Loss on derecognition of financial liabilities - - - 83 - 83 Inter-segment transactions (1) 42 (8) (41) 8 - Income (loss) before taxes $ 35 $ (421) $ (30) $ 1,625 $ (660) $ 549 Income tax provision (recovery), net 9 (114) (8) 95 (178) (196) Net income (loss) $ 26 $ (307) $ (22) $ 1,530 $ (482) $ 745 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 16 – SEGMENTED INFORMATION (continued) November 30, 2025 CIBT SSLC/VIC IRIX GECH Corporate --- Consolidated Total assets $ 1,908 $ 3,546 $ 113 $ 357,032 $ 15,067 $ 377,666 Property and equipment $ 30 $ 146 $ 15 $ 9 $ 9 $ 209 Investment properties $ - $ - $ - $ 307,275 $ - $ 307,275 Intangible assets $ - $ 20 $ - $ - $ - $ 20 Goodwill $ - $ - $ - $ - $ - $ - Total liabilities $ 775 $ 5,728 $ 327 $ 215,414 $ 8,886 $ 231,130 Non-controlling interests $ (55) $ - $ (283) $ 99,047 $ - $ 98,709 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 16 – SEGMENTED INFORMATION (continued) Three Months Ended November 30, 2024 CIBT SSLC/VIC IRIX GECH Corporate Total continuing operations SSCC Total Revenues Revenues from contracts with customers Educational $ 508 $ 1,984 $ - $ - $ - $ 2,492 $ 10,257 $ 12,749 Rental - - - 556 - 556 - 556 Design and advertising - - 186 - - 186 - 186 Commissions and referral fees 310 - - - - 310 - 310 Total revenues from customers 818 1,984 186 556 - 3,544 10,257 13,801 Revenue from leases - - - 3,951 - 3,951 - 3,951 Total revenues $ 818 $ 1,984 $ 186 $ 4,507 $ - $ 7,495 $ 10,257 $ 17,752 Revenues, net of direct costs $ 435 $ 663 $ 131 $ 3,302 $ - $ 4,531 $ 5,890 $ 10,421 Other income (expenses): General and administrative 229 1,066 104 1,677 1,061 4,137 4,551 8,688 Provision for (recovery of) expected credit loss on trade receivables 86 (8) - - - 78 321 399 Depreciation and amortization 3 126 6 4 29 168 609 777 Share-based payment expense - - - - 41 41 - 41 Interest expense - 69 1 2,811 379 3,260 245 3,505 Finance fees expense and other - - - - (49) (49) - (49) Loss on fair value changes in investment properties - - - 2,646 - 2,646 - 2,646 Interest and other income 4 (8) (1) (69) - (74) - (74) Foreign exchange loss (gain) (64) - - - 208 144 - 144 Inter-segment transactions (4) 29 (7) 314 (283) 49 (49) - Income (loss) before taxes $ 181 $ (611) $ 28 $ (4,081) $ (1,386) $ (5,869) $ 213 $ (5,656) Income tax provision (recovery), net $ 49 $ (165) $ 8 $ (291) $ (375) $ (774) $ 58 $ (716) Net income (loss) $ 132 $ (446) $ 20 $ (3,790) $ (1,011) $ (5,095) $ 155 $ (4,940) GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts November 30, 2025 NOTE 16 – SEGMENTED INFORMATION (continued) November 30, 2024 CIBT SSLC/VIC IRIX GECH Corporate SSCC Consolidated Total assets $ 2,344 $ 2,844 $ 151 $ 398,752 $ 5,142 $ 33,724 $ 442,957 Property and equipment $ 37 $ 159 $ 20 $ 17 $ 11 $ 1,733 $ 1,977 Investment properties $ - $ - $ - $ 367,561 $ - $ - $ 367,561 Intangible assets $ - $ 36 $ 36 $ - $ - $ 6,244 $ 6,316 Goodwill $ - $ - $ - $ - $ - $ 5,218 $ 5,218 Total liabilities $ 707 $ 7,584 $ 329 $ 252,090 $ 2,575 $ 43,345 $ 306,630 Non-controlling interests $ (49) $ - $ (256) $ 113,422 $ - $ - $ 113,117 --- END OF FINANCIAL STATEMENTS ---