SEDAR Interim Financial Statements

LUXXFOLIO HOLDINGS INC. Interim Condensed Consolidated Financial Statements For the three months ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) NOTICE OF NO AUDITOR REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3)(a) continuous disclosure requirement, if any auditor has not performed a review of the interim condensed consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited interim condensed consolidated financial statements have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these interim condensed consolidated financial statements. The accompanying notes are an integral part of these interim condensed consolidated financial statements. 3 LUXXFOLIO HOLDINGS INC. Interim Condensed Consolidated Statements of Financial Position (Expressed in Canadian Dollars) (Unaudited Going Concern - Note 1 Subsequent Events - Note 10 Approved on behalf of the Board: Signed: “Tomek Antoniak” ____________________________ Tomek Antoniak, Director Signed: “Zayn Kalyan” ______________________________ Zayn Kalyan, Director As at November 30, 2025 August 31, 2025 Assets Current assets Cash and cash equivalents $ 4,631 $ 31,361 Accounts and GST receivables 45,261 81,205 Prepaid expenses 11,934 3,634 61,826 116,200 Non-current assets Intangible - Digital Assets (note 5) 2,297,177 3,147,093 Total assets $ 2,359,003 $ 3,263,293 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 172,820 $ 151,373 172,820 151,373 Shareholders’ equity Common shares (note 7) 28,146,354 28,092,105 Contributed surplus (note 7) 1,084,706 802,723 Accumulated other comprehensive income (492,675) 353,352 Accumulated deficit (26,552,202) (26,136,260) 2,186,183 3,111,920 Total liabilities and shareholders’ equity $ 2,359,003 $ 3,263,293 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 4 LUXXFOLIO HOLDINGS INC. Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Expressed in Canadian Dollars) (Unaudited) For the three months ended November 30, 2025 For the three months ended November 30, 2024 Operating expenses Advertising $ 24,410 $ - Consulting (note 6) 45,424 - General and administration 2,568 6,816 Professional fees 28,101 - Share-based compensation (note 6, 7) 308,782 - Transfer agent and regulatory 5,655 - Travel 1,050 - Total operating expenses (415,990) 6,816 Other income and expenses Other income 48 - Total other income and expenses 48 - Net loss (415,942) (6,816) Other comprehensive income (loss) Revaluation loss on digital assets (846,027) - (846,027) - Comprehensive loss $ (1,261,969) $ (6,816) Basic and diluted net loss per share $ (0.02) $ (0.00) Weighted average number of shares outstanding: Basic and diluted 27,031,011 8,671,794 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 5 LUXXFOLIO HOLDINGS INC. Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity For the three months ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) Notes Number of common shares Common shares Contributed surplus AOCI Deficit Total Balance, August 31, 2024 8, --- 671,794 $ 25,008,109 $ 236,455 $ - $ (25,455,297) $ (210,733) Comprehensive loss - - - - (6,816) (6,816) Balance, November 30, 2024 8,671,794 25,008,109 236,455 - (25,462,113) (217,549) Balance, August 31, 2025 26,930,164 28,092,105 802,723 353,352 (26,136,260) 3,111,920 Exercise of stock options 183,000 27,450 - - - 27,450 Share-based compensation - - 308,782 - - 308,782 Transfer of fair value of stock options upon exercise - 26,799 (26,799) - - - Comprehensive loss - - - (846,027) (415,942) (1,261,969) Balance, November 30, 2025 27,113,164 $ 28,146,354 $ 1,084,706 $ (492,675) $ (26,552,202) $ 2,186,183 On March 21, 2025, the Company completed a share consolidation on a 10:1 basis. All outstanding common shares, stock options, warrants and finders’ warrants were adjusted on the same 10- for-1 basis, including a corresponding adjustment to their exercise prices. All references to common shares, options, and warrants and per common share amounts have been retroactively restated to reflect this share consolidation. The accompanying notes are an integral part of these interim condensed consolidated financial statements. 6 LUXXFOLIO HOLDINGS INC. Interim Condensed Consolidated Statements of Cash Flows (Expressed in Canadian Dollars) (Unaudited) For the three months ended November 30, 2025 For the three months ended November 30, 2024 Operating Activities Net income (loss) $ (415,942) $ (6,816) Changes in non-cash operating items: Share-based compensation 308,782 - Changes in non-cash working capital: Accounts receivable 35,944 (180) Prepaid expense (8,300) - Accounts payable and accrued liabilities 21,447 (2,143) Cash provided by (used in) operating activities (58,069) (9,139) Investing Activities Purchase of intangible assets 3,889 - Cash provided by (used in) investing activities 3,889 - Financing Activities Exercise of stock options (note 7) 27,450 - Cash provided by (used in) financing activities 27,450 - Inflow (Outflow) of Cash (26,730) (9,139) Cash, Beginning of the period 31,361 15,592 Cash, End of the period $ 4,631 $ 6,453 SUPPLEMENTAL CASH FLOW INFORMATION Interest paid - - Income tax paid - - Non-cash financing and investing activities Transfer of fair value of stock options exercise 26,799 - LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 7 1. NATURE OF OPERATIONS AND GOING CONCERN Luxxfolio Holdings Inc. (the “Company”) was incorporated under the Business Corporations Act (British Columbia) on October 10, 2017. The Company is listed on the Canadian Securities Exchange under the symbol “LUXX” and the OTCQB under the symbol “LUXFF”. The head office of the Company is located at 417 - 1080 Mainland Street, Vancouver, British Columbia. The Company is focused on developing and operating infrastructure for the Litecoin blockchain ecosystem including cleaning energy crypto mining, on- chain Litecoin treasury, and infrastructure for native stablecoins and smart contracts. Through these initiatives, the Company aims to position itself as an infrastructure leader in the Litecoin economy, leveraging low-fee, high-throughput blockchain technology to support scalable financial applications and decentralized systems. These interim condensed consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate for the foreseeable future and b --- e able to realize a return on its assets and discharge its liabilities and commitments in the ordinary course of business. For the three months ended November 30, 2025, the Company realized a comprehensive loss of $1,261,969 (2024 - $6,816). As at November 30, 2025 the Company had a working capital deficit of $110,994 (August 31, 2025 - $35,173) and an accumulated deficit of $26,552,202 (August 31, 2025 - $26,136,260). The continuing operations of the Company are dependent upon its ability to attain profitable operations and generate funds there from. This indicates the existence of material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. Management intends to finance operating costs with equity financings, loans from directors and companies controlled by directors and/or private placement of common shares. If the Company is unable to continue as a going concern, the net realizable value of its assets may be materially less than the amounts on its consolidated statement of financial position. Although the Company has been successful in the past in raising funds to continue operations, there is no assurance it will be able to do so in the future. The Company’s business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, changes in laws, and national and international circumstances. Recent geopolitical events and potential economic global challenges such as the risk of higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company’s business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. 2. BASIS OF PRESENTATION (a) Statement of compliance These consolidated financial statements, have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), and interpretations issued by the International Financial Reporting Standards Interpretation Committee (“IFRIC”). These consolidated financial statements were reviewed by the Audit Committee and approved and authorized for issuance by the Board of Directors on January 29, 2026. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 8 2. BASIS OF PRESENTATION (continued) (a) Statement of compliance (continued) The Company is currently engaged in developing and operating infrastructure for the Litecoin blockchain ecosystem, including clean energy mining, a digital asset treasury strategy, and support for Litecoin-native smart contracts and stablecoins. As aspects of the Company’s operations— particularly those involving digital assets, decentralized technologies, and blockchain infrastructure—are not specifically addressed by existing IFRS guidance, management is required to exercise judgment in applying IFRS and in selecting appropriate accounting policies. This includes determining the classification, recognition, derecognition, and measurement of digital assets, as well as the recognition of related revenues and expenses. The Company has disclosed its approach to the presentation, recognition --- and derecognition, and measurement of digital assets and related revenue recognition, along with the significant assumptions and judgments applied. However, should the IASB issue specific guidance in the future that applies to the Company’s activities, the resulting changes in accounting policies may have a material impact on the Company’s financial position and results of operations. (b) Basis of presentation These consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments and digital currencies that have been measured at fair value, on the reporting date. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. (c) Principals of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned inactive subsidiaries at the end of the reporting period: Incorporated Nature Ownership November 30, 2025 Ownership August 31, 2025 Luxxfolio Networks Inc. British Columbia Blockchain 100% 100% The results of the wholly owned subsidiaries will continue to be included in the consolidated financial statements of the Company until the date that the Company’s control over the subsidiary ceases. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity to obtain benefits from its activities. Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated on consolidation. (e) Functional and presentation currency Transactions and balances in the consolidated financial statements are measured using the currency of the primary economic environment in which the entity operates. These consolidated financial statements have been presented in Canadian dollars (“CAD”). The functional currency of all entities is CAD as at November 30, 2025. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 9 3. MATERIAL ACCOUNTING POLICIES The preparation of financial data is based on accounting principles and practices consistent with those used in the preparation of the audited consolidated financial statements as at August 31, 2025. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended August 31, 2025. 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS Use of estimates and judgments The preparation of these consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Accounting estimates and assumptions made by management that may result in a material adjustment to the carrying amounts of assets and liabilities include, but are not limited to the following: (i) Valuation of digital assets The Company has adopted Litecoin as an integral component of its treasury strategy. Litecoin is c --- onsidered an identifiable non-monetary asset without physical substance and is treated as intangible assets not subject to amortization under IAS 38 Intangible Assets. Litecoin is measured at fair value using the quoted prices provided by Yahoo Finance and are valued at the closing price on the last trading day of the reporting period. (ii) Fair value of options and warrants The fair value of equity instruments is subject to the limitations of the Black-Scholes option pricing model, as well as other pricing models that incorporate market data and involve uncertainty in estimates used by management in the assumptions. Because option pricing models require inputs of highly subjective assumptions, including the volatility of share prices, changes in subjective input assumptions can materially affect the fair value estimate. (iii) Business combinations In business combinations transacted by the Company, identifiable assets acquired, and liabilities assumed are recorded at their fair values. In determining the allocation of the purchase price in a business combination requires management to make certain judgements and estimates about future events, including but not limited to future revenues, future digital asset prices and future operating costs. Management determines whether assets acquired, and liabilities assumed constitute a business. A business consists of inputs and processes applied to those inputs to create outputs of measurable value. (iv) Going concern assumption The assessment of whether the going concern assumption is appropriate requires management to consider all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 10 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (continued) (v) Income taxes The measurement of income taxes payable and deferred income tax assets and liabilities requires management to make judgements in the interpretation and application of the relevant tax laws. The actual amount of income taxes only becomes final upon filing and acceptance of the tax return by the relevant tax authorities, which occurs subsequent to the issuance of the consolidated financial statements. (vi) Research and development expenditures Costs to develop the Company’s platform are capitalized to the extent that the criteria for recognition as intangible assets in IAS 38 Intangible Assets are met. Those criteria require that the platform is technically and economically feasible, which management assesses based on the attributes of the development project, perceived user needs, industry trends and expected future economic conditions. Management considers those factors in aggregate and applies significant judgement to determine whether the platform is feasible. The Company has not capitalized any research and development costs as at November 30 , 2025. (vii) Impairment of non-financial assets and goodwill Impairment exists when the carrying value of an asset exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. These calculations are based on available data, other observable inputs, and projections of cash flows, all of which are subject to estimates and assumptions. Recoverable amounts are also sensitive to assumptions --- about the future usefulness of in-process development and contractual rights to use inputs for these assets. 5. INTANGIBLE - DIGITAL ASSETS At November 30, 2025, the Company held Litecoin and USDC as its digital assets. The digital assets are recorded at their fair value on the date they are acquired and are remeasured to current market value at each reporting date. Fair value is determined by taking the closing price listed on Yahoo Finance at the reporting date. The continuity of digital assets is as follows: (At fair value) Litecoin USDC Units Amount Units Amount Balance, August 31, 2025 20,226 $3,026,112 87,976 $120,981 Purchases - - - - Expenses - - (14,000) (19,310) Revaluation - (831,807) - - Balance, November 30, 2025 20,226 $2,194,305 73,976 $ 102,872 LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 11 6. RELATED PARTY TRANSACTIONS Related party transactions are in the normal course of operations and measured at the exchange amount, which is the amount of consideration established and agreed by the related parties. Key Management Compensation Key management includes directors (executive and non-executive) and officers of the Company. The amounts due to related parties are for amounts due to directors and officers. The balances are unsecured, non-interest bearing and have no specific terms for repayment. During the three months ended November 30, 2025 and 2024, the Company entered into following transactions with related parties: For the three months ended November 30, 2025 For the three months ended November 30, 2025 Consulting fees $ 28,949 $ - Professional fees 9,000 - Share-based compensation 48,268 - $ 86,217 $ - As at November 30, 2025 the Company had outstanding amounts payable to officers and directors of the Company in the amount of $2,362 (November 30, 2024 - $Nil) for outstanding consulting fees. The balances are unsecured, non-interest bearing, and have no specific terms of repayment. 7. SHARE CAPITAL (a) Authorized Unlimited number of common shares without par value and an unlimited number of preferred shares without par value. On March 21, 2025, the Company completed a share consolidation on a 10:1 basis. All outstanding common shares, stock options, warrants and finders’ warrants were adjusted on the same 10-for- 1 basis, including a corresponding adjustment to their exercise prices. All references to common shares, options, and warrants and per common share amounts have been retroactively restated to reflect this share consolidation. (b) Issued and outstanding For the three months ended November 30, 2025: During the three months ended November 30, 2025 the Company did not issue any common shares. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 12 7. SHARE CAPITAL (continued) (b) Issued and outstanding For the year ended August 31, 2025: On July 14, 2025, the Company completed a non-brokered private placement for the issuance of 10,000,000 units for gross proceeds of $2,500,000. Each unit is comprised of 1 common share and one-half of a warrant, with each whole warrant exercisable at a price of $0.50 and an expiry date of July 14, 2027. In connection with the transaction, cash finders’ fees of $142,569 were paid and share purchase warrants --- (the “Finders’ Warrants”) totaling 570,276 were issued to certain arms-length parties. The Finders’ Warrants have an exercise price of $0.50 and an expiry date of July 14, 2027. The finders’ warrants have a fair value of $439,113 calculated using the Black-Scholes Option Pricing Model. On March 25, 2025, the Company completed a non-brokered private placement for the issuance of 7,758,367 common shares for gross proceeds of $1,163,755. In connection with the transaction, cash finders’ fees of $64,558 were paid and 406,119 finders’ warrants were issued to certain arms-length parties. The finders’ warrants have an exercise price of $0.15 and an expiry date of March 24 and March 25, 2027. The finders’ warrants have a fair value of $81,746 calculated using the Black-Scholes Option Pricing Model. The share consolidation was completed in accordance with the Company’s Articles and did not require shareholder approval. Approval from the Canadian Securities Exchange (“CSE”) was obtained. All references to common shares, stock options, warrants, and compensation options in these financial statements have been retrospectively adjusted to reflect the share consolidation. During the year ended August 31, 2025, the Company issued 500,0000 common shares upon the exercise of 500,000 common shares with an exercise price of $0.15 per share for gross proceeds of $75,000. Related to the exercise, the Company recognized a transfer of $73,226 from contributed surplus to share capital. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 13 7. SHARE CAPITAL (continued) (c) Warrants During the three months ended November 30, 2025 and 2024, the Company did not issue any share purchase warrants. Warrant transactions and the number of share purchase warrants outstanding are as follows: Number of Finders’ Warrants Weighted Average Exercise Price Outstanding, August 31, and November 30, 2024 - - Issued 5,000,000 $0.50 Outstanding, August 31, and November 30, 2025 5,000,000 $0.50 The weighted average contractual life of share purchase warrants outstanding as at November 30, 2025 is 1.62 (2024 - 0.00) years. (d) Finders’ warrants The finders’ warrants issued were accounted for at their fair value determined by the Black-Scholes option pricing model with the following weighted average assumptions: Exercise price per share $0.35 Risk-free interest rate 2.71% Expected life of warrants 2 years Annualized volatility 264.19% Weighted average fair value per warrant $0.53 The annualized volatility was based on historical weekly data of the Company. Finders’ warrant transactions and the number of finders’ warrants outstanding are as follows: Number of Finders’ Warrants Weighted Average Exercise Price Outstanding, August 31, and November 30, 2024 - - Issued 976,395 $0.35 Outstanding, August 31, and November 30, 2025 976,395 $0.35 The weighted average contractual life of share purchase warrants outstanding as at November 30, 2025 is 1.49 (2024 - 0.00) years. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 14 7. SHARE CAPITAL (continued) (e) Stock options On October 1, 2025, the Company granted 500,000 stock options to a director of the Company with an exercise price of $0.40 and expiry date of October 1, 203 --- 0, which vests 25% on April 1, 2026 and 25% every six months thereafter. On October 14, 2025, the Company granted 1,000,000 stock options to consultants of the Company with an exercise price of $0.40 and expiry date of October 14, 2030, which vests 100% on February 14, 2026. During the same period, the Company issued 183,000 common shares upon the exercise of stock options granted on August 4, 2023. The options were exercised at a price of $0.15 per share, for total proceeds of $27,450. During the year ended August 31, 2024, the Company did not grant any stock options. The following table summarizes information on the movement of the stock options: Number of Stock Options Weighted Average Exercise Price Outstanding, August 31, 2024 867,000 $0.28 Granted 1,500,000 $0.25 Exercised (500,000) $0.15 Cancelled (140,000) $0.15 Outstanding, August 31, 2025 1,727,000 $0.30 Granted 1,500,000 $0.40 Exercised (183,000) $0.15 Outstanding, November 30, 2025 3,044,000 $0.36 Exercisable, November 30, 2025 419,000 $0.36 The weighted average contractual life of stock options outstanding as at November 30, 2025 is 5.97 (2024 - 3.52) years. The stock options issued were accounted for at their fair value determined by the Black-Scholes option pricing model with the following weighted average assumptions: Exercise price per share $0.40 Risk-free interest rate 2.72% Expected life of warrants 5 – 10 years Annualized volatility 263.06% Weighted average fair value per stock option $0.38 The annualized volatility was based on historical weekly data of the Company. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 15 8. FINANCIAL INSTRUMENTS AND DIGITAL ASSETS (a) Fair value The Company provides information about its financial instruments measured at fair value at one of three levels according to the relative reliability of the inputs used to estimate the fair value: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Company determined that the carrying value of cash and accounts receivable approximate fair value due to relatively short period to maturity. Digital assets are revalued using quoted prices provided by Yahoo Finance and are valued at the closing price on the last trading day of the reporting period. The Company considers this to be Level 1 fair value. (b) Credit risk Credit risk refers to the potential that a counterparty to a financial instrument will fail to discharge its contractual obligations. The Company manages credit risk, in respect of its cash and funds held in trust by placing its cash balances at a recognized major Canadian and US financial institutions. Digital assets are held in a custody account at Netcoins Inc, a Canadian based, regulated cryptocurrency trading platform. The Company does not self-custody its Litecoin assets. (c) Liquidity risk and Working Capital deficiency Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The working capital deficiency November 30, 2025 and August 31 --- , 2024 is a measure of the liquidity risk that exists. The Company manages its liquidity risk on an ongoing basis in accordance with policies and procedures in place. Budgeting and Cash flow projections are completed and reviewed on a regular basis to ensure the Company has sufficient cash resources available to meet its financial obligations. The Company is exposed to liquidity risk in respect of its accounts payable and accrued liabilities., and long-term debt. As at November 30, 2025 the Company has the following contractual maturities: Carrying amount Contractual cash flows FY2025 FY2026 FY2027 Accounts Payable and accrued Liabilities $172,820 $172,820 $172,820 $nil $nil $172,820 $172,820 $172,820 $nil $nil LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 16 8. FINANCIAL INSTRUMENTS AND DIGITAL ASSETS (continued) (d) Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in the market interest rates. The Company’s exposure to interest rate risk is limited and relates only to its ability to earn interest income on cash balances held from time to time at variable rates. Changes in short term rates will not have a significant effect on the fair value of the Company’s cash positions. (e) Foreign currency risk Currency risk relates to the risk that the fair values and future cash flows of the Company’s financial instruments will fluctuate as a result of changes in foreign exchange rates. Exchange rate fluctuations will affect those parts of the Company’s operations managed in USD dollars and consequently may impact the Company’s financial results, and assets and liabilities denominated in USD. (f) Digital asset pricing risk Litecoin pricing is affected by numerous factors including international supply and demand, interest rates, inflation or deflation, and global political and economic conditions. The liquidity and profitability of the Company are directly related to the current and future pricing of Litecoin. A decline in the market price of Litecoin could have a negative impact on the Company’s future operations and financial results. In addition, a lack of market liquidity could limit the Company’s ability to sell Litecoin on a timely basis and at acceptable pricing levels. 9. CAPITAL MANAGEMENT The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern. As at November 30, 2025 the Company considers capital to consist of short-term debt and all components of shareholders’ equity. The Company manages its capital structure and adjusts it considering changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue common shares, promissory notes, dispose of assets or adjust the amount of cash on hand. At this stage of the Company’s development, and to maximize available capital, ongoing operational development efforts, the Company does not pay dividends. There were no changes to the Company’s capital management approach since the year ended August 31, 2025. LUXXFOLIO HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the three months ended November 30, 2025, and 2024 (Expressed in Canadian Dollars) 17 10. SUBSEQUENT EVENTS On --- December 9, 2025, the Company completed a non-brokered private placement for the issuance of 4,624,000 units at a price of $0.17 per unit for gross proceeds of $786,080. Each unit is comprised of 1 common share and 1 warrant, with each warrant exercisable at a price of $0.35 and an expiry date of December 9, 2027. In connection with the transaction, cash finders’ fees of $53,345 were paid and finders’ warrants totaling 313,796 were issued to finders’ who assisted with the financing. The finders’ warrants have an exercise price of $0.35 and an expiry date of December 9, 2027.