VITALITY ANNOUNCES FIRST QUARTER RESULTS

• Vitality Products Inc. reported Q1 2026 results (ended April 30, 2026) showing a net loss of $46,818, a significant widening from the $3,219 loss in Q1 2025.
• Sales declined 2% year-over-year to $230,240.
• Gross margin expanded to 75% of sales, up from 71% in the prior year period.
• Operating expenses rose sharply: General and Administrative expenses increased to $173,091 (from $138,438), and Wages/Salary expenses jumped to $121,606 (from $95,007), attributed to key sales and marketing hires.
• Operational highlights include Amazon subscriber growth from 293 to 724 and attendance at Natural Products Expo West.

• The widening net loss and declining top-line revenue represent a clear miss on profitability expectations.
• The 75% gross margin expansion and Amazon subscriber growth are positive operational indicators, but they are currently being offset by a disproportionate increase in operating expenses.
• For a company with a sub-$1M market cap, a 10x increase in quarterly net loss is notable, but the trend aligns with prior quarters where management invested in sales infrastructure. The market has likely already priced in the cost of these hires, making the immediate stock impact limited.

• Vitality Products Inc. develops and distributes premium natural health products, primarily through Canadian natural health retailers and Amazon.
• The company holds 101 Natural Health Product Numbers (NPNs) licensed by Health Canada.
• Strategic focus includes expanding distribution in Canada and the United States, direct-to-consumer sales at trade shows, and exploring AI/digital health applications or potential M&A.