SEDAR Interim Financial Statements

Currency Exchange International, Corp. Condensed Interim Consolidated Financial Statements For the Three-Month Periods Ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) TABLE OF CONTENTS Management’s Responsibility for the Condensed Interim Consolidated Financial Statements 1 Condensed Interim Consolidated Statements of Financial Position 2 Condensed Interim Consolidated Statements of Income and Comprehensive Income 3 Condensed Interim Consolidated Statements of Changes in Equity 4 Condensed Interim Consolidated Statements of Cash Flows 5 Notes to the Condensed Interim Consolidated Financial Statements 6 – 33 Management's Responsibility for the Condensed Interim Consolidated Financial Statements The accompanying unaudited condensed interim consolidated financial statements of Currency Exchange International, Corp. (the Company) are the responsibility of management and the Board of Directors. The unaudited condensed interim consolidated financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the unaudited condensed interim consolidated financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the statement of financial position date. In the opinion of management, the unaudited condensed interim consolidated financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34 - Interim Financial Reporting using accounting policies consistent with IFRS Accounting Standards appropriate in the circumstances. Management has established processes, which are in place to provide it with sufficient knowledge to support management’s representations that it has exercised reasonable diligence that (i) the unaudited condensed interim consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the unaudited condensed interim consolidated financial statements and (ii) the unaudited condensed interim consolidated financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of, and for the periods presented by, the unaudited condensed interim consolidated financial statements. The Board of Directors is responsible for reviewing and approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited condensed interim consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company for issuance to the shareholders. Management recognizes its responsibility for --- conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities. (signed) "Randolph Pinna" (signed) “Gerhard Barnard” Randolph Pinna Gerhard Barnard President and Chief Executive Officer Group Chief Financial Officer Orlando, Florida March 11, 2026 Condensed Interim Consolidated Statements of Financial Position As of January 31, 2026 and October 31, 2025 (Expressed in U.S Dollars) (Unaudited) Q1 2026 Report | 2 January 31, 2026 October 31, 2025 ASSETS Current assets $ $ Cash (Note 5) 96,079,426 95,503,795 Accounts receivable (Note 13) 3,767,411 3,387,120 Forward and option contract assets (Notes 12 and 14) 457,887 280,989 Other current assets (Note 19) 2,680,072 2,283,755 Total current assets 102,984,796 101,455,659 Property and equipment (Note 6) 1,683,443 1,820,789 Right-of-use assets (Note 8) 5,482,767 5,396,040 Intangible assets (Note 7) 2,318,734 2,349,970 Goodwill (Note 7) 1,309,701 1,309,701 Deferred tax asset, net 440,542 1,027,197 Other assets 177,130 182,347 114,397,113 113,541,703 Assets held for distribution to shareholder (Note 11) 4,985,750 7,438,712 Total assets 119,382,863 120,980,415 LIABILITIES AND EQUITY Current liabilities Accounts payable 24,223,686 21,148,274 Accrued expenses 2,396,589 4,719,224 Holding accounts 193,645 188,676 Deferred revenues 671,192 384,136 Income taxes payable 79,388 65,776 Lease liabilities (Note 8) 1,403,381 1,574,780 Total current liabilities 28,967,881 28,080,866 Long term liabilities Lease liabilities (Note 8) 4,604,955 4,319,240 Other long term liabilities (Note 15) 1,558,119 1,465,044 Total long term liabilities 6,163,074 5,784,284 Liabilities directly associated with the assets held for distribution to shareholder (Note 11) 292,124 2,416,622 Total liabilities 35,423,079 36,281,772 Equity Share capital 5,984,120 6,135,120 Equity reserves 27,365,610 29,622,216 Retained earnings 57,027,367 55,501,604 Amounts recognized in AOCL associated with assets held for distribution to shareholder (Note 11) (6,417,313) (6,560,297) Total equity 83,959,784 84,698,643 Total liabilities and equity 119,382,863 120,980,415 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Nature of operations (Note 1) Contingencies (Note 20) Subsequent events (Note 21) Condensed Interim Consolidated Statements of Income and Comprehensive Income For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 3 Three-month period ended Three-month period ended January 31, 2026 January 31, 2025 Revenues $ $ Commissions revenue 14,153,116 14,596,886 Fee revenue 1,266,895 853,975 Total revenues (Note 4) 15,420,011 15,450,861 Operating expenses (Note 17) 12,209,893 11,627,855 Net operating income 3,210,118 3,823,006 Other income Interest revenue 240,114 30,743 Restructuring charges (139,850) - Total other income 100,264 30,743 Earnings before interest, taxes, depreciation and amortization 3,310,382 3,853,749 Interest expense (Note 10) 26,396 50,288 Interest on lease liabilities (Note 8) 88,070 93,535 Depreciation and amortization 384,079 395,141 Depreciation of right-of-use assets (Note 8) 479,255 476,522 Income before income taxes from continuing operations 2,332,582 2,838,263 Income tax expense 580,474 1,143,591 Net income from continuing operations 1,752,108 1,694,672 Loss after tax from disconti --- nued operations (Note 11) (226,345) (882,142) Other comprehensive income, after tax Net income for the period ended 1,525,763 812,530 Items that may subsequently be reclassified to profit or loss Exchange differences on translating foreign operations 142,984 (289,591) Total other comprehensive income 1,668,747 522,939 Earnings per share (Note 16) - Basic 0.25 0.13 - Diluted 0.25 0.12 Earnings per share from continuing operations - Basic 0.29 0.27 - Diluted 0.29 0.26 Weighted average number of common shares outstanding (Note 16) - Basic 5,984,120 6,299,013 - Diluted 6,052,790 6,539,817 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Condensed Interim Consolidated Statements of Changes in Equity For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 4 Share Capital Equity Reserves Retained Earnings Reserve held for distribution to shareholder Total Equity Shares Amount Share Premium Stock Options Amount Accumulated Other Comprehensive Loss (AOCL) Amount # $ $ # $ $ $ $ Balance at November 1, 2025 6,135,120 6,135,120 26,138,920 379,521 3,483,296 55,501,604 (6,560,297) 84,698,643 Stock based compensation (Note 15) - - - 81,196 96,724 - - 96,724 Shares purchased for cancellation (Note 15) (151,000) (151,000) (2,353,330) - - - - (2,504,330) Gain on foreign currency translation - - - - - - 142,984 142,984 Net income - - - - - 1,525,763 - 1,525,763 Balance at January 31, 2026 5,984,120 5,984,120 23,785,590 460,717 3,580,020 57,027,367 (6,417,313) 83,959,784 Balance at November 1, 2024 6,333,931 6,333,931 30,422,893 799,040 3,976,506 45,182,810 (6,523,785) 79,392,355 Stock based compensation (Note 15) - - - - 101,000 - - 101,000 Issue of share capital and share premium on exercise of stock options 2,373 2,373 20,048 (10,385) (29,404) - - (6,983) Shares purchased for cancellation (35,100) (35,100) (527,334) - - - - (562,434) Loss on foreign currency translation - - - - - - (289,591) (289,591) Net income - - - - - 812,530 - 812,530 Balance at January 31, 2025 6,301,204 6,301,204 29,915,607 788,655 4,048,102 45,995,340 (6,813,376) 79,446,877 The accompanying notes are an integral part of these condensed interim consolidated financial statements Condensed Interim Consolidated Statements of Cash Flows For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 5 January 31, 2026 January 31, 2025 Cash flows from operating activities $ $ Profit after tax from continued operations 1,752,108 1,694,672 Loss after tax from discontinued operations (226,345) (882,142) Net income 1,525,763 812,530 Adjustments to reconcile net income to net cash flows from operating activities Depreciation and amortization 384,079 395,141 Depreciation of right-of-use assets 479,255 476,522 Interest on leasing liabilities 88,070 100,207 Stock based compensation 356,401 (74,202) Loss on lease terminations, net 73,355 - Increase (decrease) in cash due to change in: Accounts receivable (373,908) 2,534,648 Restricted cash held in escrow - (2,637,945) Change in forward and option contract positions (176,898) (126,327) Other assets (410,899) (509,254) Net deferred tax assets 586,655 717,427 Deferred revenues 287,056 (199,770) Payments related to stock based compensation (166,602) (364,269) Accounts payable, accrued expenses, holding accounts and other liabilities (1,418,822) (8,112,807) Net cash flows from ope --- rating activities 1,233,505 (6,988,099) Cash flows from investing activities Purchase of property and equipment (70,593) (232,130) Purchase of intangible assets (144,904) (183,498) Net cash outflow from investing activities (215,497) (415,628) Cash flows from financing activities Payments related to stock based compensation, net - (6,983) Repayment of leasing liabilities (613,093) (564,080) Net borrowing on lines of credit - 401,518 Payment for common shares purchased for cancellation (Note 15) (2,504,330) (562,434) Net cash outflows from financing activities (3,117,423) (731,979) Net change in cash (2,099,415) (8,135,706) Cash, beginning of period 102,936,283 101,877,263 Exchange difference on foreign operations 206,323 (851,792) Cash, end of period 101,043,191 92,889,765 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the period for interest 26,396 56,361 Cash received during the period for interest 278,123 118,932 The accompanying notes are an integral part of these condensed interim consolidated financial statements Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 6 1. Nature of Operations and Basis of Presentation Nature of Operations Currency Exchange International, Corp. (the Company) was originally incorporated under the name Currency Exchange International, Inc. under the Florida Business Corporation Act on April 7, 1998. The Company changed its name to Currency Exchange International, Corp. on October 19, 2007 and commenced its current business operations at that time. The Company is a public corporation whose shares are listed and posted for trading on the Toronto Stock Exchange (TSX) under the symbol “CXI“ and, as of May 20, 2025, the over-the-counter market (OTCQX) in the United States under the symbol “CURN.” The Company operates as a money service and payments business that provides currency exchange, wire transfer, and check cashing services from its locations in the United States. The Company maintains a head office and 2 main vaults as well as 38 branch locations and 315 employees. The Company’s registered head office is located at 6649 Westwood Boulevard, Suite 250, Orlando, Florida, 32821, United States of America. The Company’s wholly owned Canadian subsidiary, Exchange Bank of Canada (EBC) – which has been classified as a ‘discontinued operation’ effective the second quarter of 2025 - is a non-deposit-taking, non-lending Schedule 1 bank previously engaged in foreign exchange services. As of October 31, EBC ceased operations and has formally applied for approval from the Minister of Finance to discontinue from the Bank Act. Once final regulatory approval has been obtained, management and the directors plan to liquidate the remaining assets and liabilities of EBC and distribute those net assets to its shareholder. As a result, management has classified EBC as a discontinued operation and presented the assets and liabilities of this subsidiary as held for distribution to shareholder (Note 11). Basis of Presentation The presentation currency of the Company’s condensed interim consolidated financial statements is the United States Dollar. The accounting policies set out in Note 2 of the condensed interim consolidated financial statements have been applied consistently to all periods presented in these condensed interim consolidated financial statements. These condensed in --- terim consolidated financial statements have been prepared on a historical cost basis, except for the following assets and liabilities, which are stated at their fair value: financial instruments classified as Fair Value Through Profit or Loss (FVTPL), foreign currency forward and option contracts, and share based payment plans. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as income or loss after tax from discontinued operations in the condensed interim consolidated statements of income and comprehensive income. Additional disclosures are provided in Note 11. All other notes to the condensed interim consolidated financial statements include amounts from continuing operations, unless indicated otherwise. Statement of Compliance The condensed interim consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), specifically, the provision under IAS 34 – Interim Financial Reporting (IAS 34). These unaudited condensed interim consolidated financial statements do not include all disclosures required by IFRS Accounting Standards for annual consolidated financial statements and, accordingly, should be read in conjunction with the Company’s audited consolidated financial statements for the year ended October 31, 2025. These condensed interim consolidated financial statements were authorized for issue and approved by the board of directors on March 11, 2026. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 7 Comparative Figures Certain comparative figures have been reclassified to conform to the presentation in the current period. 2. Summary of Material Accounting Policies Future Accounting Pronouncements Certain pronouncements were issued by the IASB or the IFRIC. Many are not applicable or do not have a significant impact to the Company and have been excluded. The following new and amended standards and interpretations have not yet been adopted and except for IFRS 18, are not expected to have a significant impact on the Company’s condensed interim consolidated financial statements: - Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and 7); - IFRS 19, Subsidiaries without Public Accountability: Disclosure; - Amendments to IFRS 19, Subsidiaries without Public Accountability Disclosures; and - IFRS 18, Presentation and Disclosure in Financial Statements. Management is currently in the process of evaluating the potential impact of IFRS 18, Presentation and Disclosure in Financial Statements. Management expects to adopt this standard for the October 31, 2028, fiscal period. It has not yet been determined whether this will have a significant impact on the Company’s condensed interim consolidated financial statements. Principles of Consolidation The condensed interim consolidated financial statements comprise the financial statements of the Company and its wholly owned subsidiaries, EBC, a Schedule 1 bank in Canada and eZforex.com, Inc. (eZforex) - a Texas-based money service business. Subsidiaries are entities over which --- the Company has control, where control is defined as the power to govern financial and operating policies of an entity to obtain benefit from its activities. Subsidiaries are fully consolidated from the date control is transferred to the Company and are de-consolidated from the date control ceases. All material intercompany transactions are eliminated on consolidation. Segment Reporting The Company has determined it has three operating segments in its continuing operations: CXI wholesale banknotes, CXI payments, and CXI direct-to-consumer. In identifying these operating segments, management generally follows the Company’s service lines representing its main products and services as well as the ultimate end customer. All inter-segment transfers are carried out at arm’s length prices based on prices charged to unrelated customers in stand-alone sales of identical goods or services. As outlined in Note 11, the previously reported operating segments relating to EBC have been classified as a discontinued operation and have been presented as such in these condensed interim consolidated financial statements. For management purposes, the Company uses the same measurement policies as those used in its condensed interim consolidated financial statements. In addition, corporate assets which are not directly attributable to the business activities of any operating segment are allocated to a segment based on the appropriate allocation basis. This primarily applies to the Company’s corporate headquarters. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 8 Cash Cash includes, but is not limited to, local and foreign currencies: • held in tills and vaults; • in transit; • at customer locations on consignment; • in branches or distribution centers; and • in bank accounts. Foreign cash is recorded at fair value based on foreign exchange rates as at January 31, 2026 and October 31, 2025, respectively. Accounts Receivable Trade accounts receivable are stated net of an allowance for doubtful accounts. Accounts receivable balances consist primarily of bulk currency trades with a settlement cycle of 24 to 48 hours. The amount of accounts receivable varies widely from period to period due to the volume of activity and timing differences. The Company applies a simplified approach in accounting for the allowance for doubtful accounts based on lifetime expected credit losses in accordance with IFRS 9, Financial Instruments (IFRS 9). These consider the potential for default during the life of the financial instrument and are the expected shortfalls in contractual cash flows. To estimate the expected shortfall, the Company considers specific customers, historical information, external indicators, and forward-looking information. There is minimal counterparty risk as the majority of the Company's receivables reside with banks, money service business customers, and other financial institutions. The Company has longstanding relationships with most of its customers and has a strong repayment history. The Company does not accrue interest on past due receivables. Management determined that the allowance for doubtful accounts was $Nil as of January 31, 2026 (October 31, 2025, $Nil). Revenue Recognition IFRS 15, Revenue from Contracts with Customers (IFRS 15) provides a comprehensive framework for the recognition, measurement, and disclosure --- of revenue from contracts with customers. To determine whether to recognize revenue, the Company follows a five-step process whereby the Company: (i) identifies the contract with the customer; (ii) identifies the performance obligations; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations; and (v) recognizes revenue when or as performance obligations are satisfied. Commission revenues are the difference (spread) between the cost and the selling price of foreign currency products, including banknotes, wire payments, check collections and draft issuances (foreign currency margin), together with the net (realized or unrealized) gain or loss from foreign currency forward contracts with customers, and commissions paid on the sale and purchase of currencies. The amount of this spread is based on competitive conditions and the convenience and value-added services offered. These revenue contracts are short term in nature and generally have a single performance obligation. Revenue is recognized when each transaction occurs, the performance obligation is satisfied, the currency is delivered, or at the end of each reporting period when revaluations of foreign exchange positions take place. For contracts whose performance obligations are not satisfied (or partially not satisfied) at the end of the reporting period, amounts as such are not recognized in the condensed interim consolidated statements of income and comprehensive income and are recorded in the condensed interim consolidated statements of financial position as deferred revenues until the performance obligation is satisfied. Fee income includes fees collected on wire transfers, check collections, and currency exchange transactions. These revenue contracts are short term in nature and generally have a single performance obligation with revenue being recognized when the transaction occurs, the performance obligation is satisfied, and when the currency is delivered to the customer. Foreign Currency Translation Transactions denominated in foreign currencies are translated to the functional currency at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the condensed interim consolidated Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 9 statements of financial position date are translated at rates as at that date. The functional currency of EBC is the Canadian Dollar and the functional currency of the Company and eZforex is the United States Dollar. In situations where the functional currency is not the same as the presentation currency, foreign currency-denominated assets and liabilities are translated to their presentation currency equivalents using foreign exchange rates in effect at the condensed interim consolidated statements of financial position date. Revenues and expenses are translated at average rates of exchange during the period. Exchange gains or losses arising from the consolidation of the Canadian subsidiary are included in accumulated other comprehensive loss. On disposal of a foreign operation, the related cumulative translation differences recognized in equity reserves are reclassified to profit or loss and are recognized as part of the gain or loss on disposal. Foreign Currency Forward and Option Contracts The Company en --- ters into foreign currency forward and option contracts with non-client counterparties, to mitigate the risk of fluctuations in exchange rates of its exposure to certain major currencies related to its Banknotes product line. Forward contracts are entered into daily, with maturities up to 30 days. Option contracts are entered into selectively once per quarter, with a maturity up to 90 days. Foreign currency forward and option contracts are recognized on the Company's condensed interim consolidated statements of financial position when the Company becomes a party to the contractual provisions of the instrument. The instrument is derecognized from the condensed interim consolidated statements of financial position when the contractual rights or obligations expire or are extinguished. These non-client counterparty foreign currency forward and option contracts, as referred to above, are recognized at fair value and changes in fair value are included in operating expenses in the condensed interim consolidated statements of income and comprehensive income and are recorded as either contract assets or contract liabilities at the end of the reporting period. Non-current assets held for distribution to shareholder and discontinued operations The Company classifies non-current assets and disposal groups as held for sale or distribution to shareholder if their carrying amounts will be recovered principally through a sale transaction or distribution to the shareholder rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense. The criteria for the classification as held for sale or distribution to shareholder is regarded as met only when the sale or distribution is highly probable, and the asset or disposal group is available for immediate sale or distribution in its present condition. Actions required to complete the sale or distribution should indicate that it is unlikely that significant changes to the sale or distribution will be made or that the decision to sell or distribute will be withdrawn. The Company must be committed to the plan to sell or distribute the asset, and the sale or distribution is expected to be completed within one year from the date of the classification. Property and equipment and intangible assets, where applicable, are not depreciated or amortized once classified as held for sale or distribution. Assets and liabilities classified as held for sale or distribution are presented separately as non-current items in the condensed interim consolidated statements of financial position. As noted above, discontinued operations are excluded from the results of continuing operations and are presented as a single amount as income or loss after tax from discontinued operations in the condensed interim consolidated statements of income and comprehensive income. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 10 Property and Equipment Property and equipment are initially recorded at their cost and depreciated over their estimated useful lives. Cost includes expenditures which are directly attributable to bringing the asset i --- nto working condition for its intended use. Depreciation is calculated on a straight-line basis, as follows: • Vehicles 3 years • Computer equipment 3 years • Furniture and equipment 3-5 years • Leasehold improvements the lesser of the lease term or useful life When parts of an asset have different useful lives, depreciation is calculated on each separate part. In determining the useful lives of the component parts, the Company considers both the physical condition of the parts as well as technological life limitations. Estimates of remaining useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively. Goodwill and Intangible Assets Goodwill, representing the excess of the purchase price over the fair value of the net assets acquired in a business combination, is carried at its original value based on the acquisition, less impairment losses determined subsequent to the acquisition. Intangible assets are comprised of the Company's internally developed software (CXIFX) and its related modules, as well as software and customer trading relationships acquired through business combinations or asset purchase transactions. Costs that are directly attributable to a project’s development phase are recognized as intangible assets, provided they have met the following recognition requirements: • the development costs can be measured reliably; • the project is technically and commercially feasible; • the Company intends to and has sufficient resources to complete the project; • the Company has the ability to use or sell the software; and • the software will generate probable future economic benefits. Development costs not meeting these criteria for capitalization are expensed as incurred. Amortization for intangibles is computed on an individual basis over the estimated economic life using the straight-line method as follows: • Internally developed software 5 years • Acquired software 2 years • Customer trading relationships 5-10 years • Trade name, non-competition agreements 5 years Residual values and useful lives are reviewed at each reporting date. Business Combinations Business combinations are accounted for by applying the acquisition method. The acquisition method involves the recognition of the acquiree’s identifiable assets and liabilities, including contingent liabilities, regardless of whether they were recorded in the financial statements prior to acquisition. The acquiree’s identifiable assets and liabilities that meet the conditions for recognition under IFRS 3, Business Combinations (IFRS 3) are recognized at their fair value at the acquisition date. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value. Transaction costs related to the acquisition are expensed as they are incurred. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 11 Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is determined to be a financial asset, or liability will be recognized in accordance with IFRS 9, at FVTPL. Contingent consideration that is classified as equity is not re‐ measured, and its subsequent settlement is accounted for within equity. Goodwil --- l arising on acquisition is recognized as an asset that represents the excess of acquisition cost over the fair value of the Company’s share of the identifiable net assets of the acquiree on the date of the acquisition. Any excess of identifiable net assets over the acquisition cost is recognized in net income immediately after acquisition. Where goodwill forms part of a cash-generating unit (CGU), and part of the operation within that unit is disposed of, it is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative fair value of the operation disposed of and the portion of the CGU retained. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that time. The measurement period may be up to one year from the acquisition date. Upon conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever occurs first, any subsequent adjustments are recorded to income within the condensed interim consolidated statements of income and comprehensive income. For a given acquisition, the Company may identify certain pre‐acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre‐acquisition contingencies throughout the measurement period to obtain sufficient information to assess these contingencies as part of acquisition accounting, as applicable. Impairment Testing of Goodwill; Other Intangible Assets; and Property and Equipment For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows, referred to as CGU’s. As a result, some assets are tested individually for impairment, and some are tested at the CGU level. Except for goodwill arising from business acquisitions, IAS 36, Impairment of Assets (IAS 36) requires that an entity performs an assessment for impairment of assets if, at the end of the year, there is an objective indication of impairment for the individual assets or the identified CGU. Goodwill is allocated to those CGUs that are expected to benefit from synergies of a related business combination and represent the lowest level within the Company at which management monitors goodwill. CGUs to which goodwill has been allocated are tested for impairment at least annually. All other individual assets or CGUs are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s (or CGU’s) carrying amount exceeds its recoverable amount, which is the higher of fair value, less costs of disposal and value-in-use. To determine the value-in-use, management estimates expected future cash flows from each CGU and determines a suitable discount rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directl --- y linked to the Company’s latest approved budget and are adjusted as necessary to exclude the effects of future reorganizations and asset enhancements. Discount factors are determined individually for each CGU and reflect current market assessments of the Time Value of Money (TVM) and asset-specific risk factors. Impairment losses for CGUs first reduce the carrying amount of any goodwill allocated to that CGU. Any remaining impairment loss is charged pro rata to the other assets in the CGU. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognized may no longer exist. An impairment loss is reversed if the asset’s or CGU’s recoverable amount exceeds it carrying amount. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 12 Provisions Provisions are recognized when, (i) the Company has a present obligation (legal or constructive) as a result of a past event, and (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the condensed interim consolidated statements of income and comprehensive income, net of any reimbursement. This net expense is recorded in operating expenses, typically with losses and shortages, in the period in which the obligation is recognized. If the effect of the TVM is material, provisions are discounted using a current pretax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. No liability is recognized if an outflow of economic resources as a result of present obligations is not probable. Such situations are disclosed as contingent liabilities unless the outflow of resources is remote. Provisions for legal disputes, onerous contracts, regulatory compliance matters, or other claims are recognized when the Company has a present legal or constructive obligation as a result of a past event, or it is probable that an outflow of economic resources will be required from the Company and amounts can be estimated reliably. The timing or amount of the outflow may still be uncertain. Restructuring provisions are recognized only if a detailed formal plan for the restructuring exists and management has either communicated the plan’s main features to those affected or started implementation. Provisions are not recognized for future operating losses. Holding Accounts Holding accounts represent funds received from customers that are held by the Company in the customer’s transactional currency on behalf of the customer, who has the unilateral right to transfer out or convert the funds at any time. Amounts are initially measured at fair value, net of any transaction costs directly attributable to the issuance of the financial instrument. Holding accounts are subsequently measured at amortized cost, using the effective interest rate method. Share Based Payments The Company's Deferred Share Unit (DS --- U) Plan and Restricted Share Unit (RSU) Plan (collectively the Plans) allow certain employees and directors to receive RSU awards and DSU awards of the Company. These units are cash-settled only and are, therefore, classified as a financial liability. The units are measured at the fair value of the Company’s equity instruments at the grant date as a financial liability in the condensed interim consolidated statements of financial position. The fair value determined at the grant date of the cash-settled, share based payments is expensed on a straight-line basis over the period during which the employees and directors become unconditionally entitled to the instrument. At the end of each reporting period, the Company revises its estimate of the units liability based on the fair value of the Company’s equity instruments. The impact of the revision of the original estimates, if any, is recognized in profit or loss, such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the liability. Financial Instruments Financial assets and financial liabilities are recognized on the condensed interim consolidated statements of financial position when the Company becomes a party to the contractual provisions of the financial instrument. The Company is required to initially recognize all of its financial assets and liabilities, including derivatives and embedded derivatives in certain contracts, at fair value. Subsequent measurement of financial assets and financial liabilities is described below. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognized when it is extinguished, discharged, canceled, or expired. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 13 Classification and Measurement of Financial Assets IFRS 9 provides guidance on the classification and measurement of financial assets and prescribes an Expected Credit Loss (ECL) model for the impairment of financial assets. IFRS 9 also contains requirements on the application of a hedging model to align hedge accounting more closely with entities’ risk management activities. IFRS 9 includes a classification and measurement approach for financial assets that considers the business model in which the assets are managed and their cash flow characteristics. Subsequent to initial recognition, financial assets are not reclassified unless the Company adopts changes in its business model for managing those assets. Financial assets, other than those designated and effective as hedging instruments, are classified into the following categories: amortized cost; Fair Value Through Profit or Loss (FVTPL); or Fair Value Through Other Comprehensive Income (FVTOCI). Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method, except for derivatives and financial liabilities designated at FVTPL, which are carried subsequently at fair value with gains or losses recorded in the condensed interim consolidated statements of income and comprehensive income. The Company’s financial assets and liabilities are classified and measured as follows: • Cash Fair value through profit or loss • Accounts receivable --- Amortized cost • Forward and option contract assets Fair value through profit or loss • Lines of credit Amortized cost • Accounts payable Amortized cost • Holding accounts Amortized cost • Restricted and deferred share units Fair value through profit or loss Transaction costs, other than those related to financial instruments classified as FVTPL or FVTOCI, which are expensed as incurred are added to, or deducted from, the fair value of the financial asset or financial liability, as appropriate, on initial recognition and amortized using the effective interest method. Financial Instruments Recorded at Fair Value Financial instruments recorded at fair value in the condensed interim consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: • Level 1- quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and • Level 3 - unobservable inputs for the asset or liability. Derivative Financial Instruments and Hedge Accounting Derivative financial instruments are accounted for at FVTPL, except for derivatives designated as hedging instruments in cash flow hedge relationships, of which the Company has none. Impairment of Financial Assets IFRS 9’s impairment requirements incorporates the Expected Credit Loss (ECL) model which uses forward-looking information to recognize expected credit losses. Instruments within the scope of IFRS 9 include loans and other debt-type financial assets measured at amortized cost and FVTOCI, trade receivables, contract assets recognized and measured under IFRS 15, as well as loan commitments and some financial guarantee contracts that are not measured at FVTPL. Under IFRS 9, the Company considers a wider range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable projections that impact the collectability of the future cash flows of the instrument. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 14 Leases At the inception of a lease contract, the Company assesses whether the contract is or contains a lease. A contract is or contains a lease if the contract conveys that right of control of the use of an identified asset for a period of time in exchange for consideration. In assessing whether a contract conveys the right to control the use of an identified asset, the Company assess whether: (i) the contract involves the use of an identified asset; (ii) the Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period, and/or; (iii) the Company has the right to direct the use of the asset. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site --- in which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term plus expected renewal options which are available to the Company. In addition, the right-of-use asset is reduced by impairment losses, if any identified, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that have not been paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability may be comprised of: (i) fixed payments; (ii) variable lease payments that depend on an index rate, initially measured using the index as the commencement date; (iii) amounts expected to be payable under a residual value guarantee; (iv) the exercise price under purchase option that the Company is reasonably certain to exercise; (v) lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and (vi) penalties for early termination of a lease unless the Company is reasonably certain not to terminate early. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension, or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use has been reduced to zero. The Company recognizes a depreciation charge for the right-of-use assets and interest expense on lease liabilities in the condensed interim consolidated statements of income and comprehensive income. Lease payments for short-term leases and for leases of low-value assets that are not included in the measurement of the lease liability are classified as cash flows from operating activities. The remeasurement of the lease liability is dealt with by a reduction in the carrying amount of the right-of-use asset to reflect the full or partial termination of the lease for lease modifications that reduce the scope of the lease. Any gain or loss relating to the partial or full termination of the lease is recognized in the condensed interim consolidated statements of income and comprehensive income. The right-of-use asset is adjusted for all other lease modifications. Earnings per Share The Company presents basic and diluted earnings per share data for its common shares, calculated by dividing the earnings attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive warrants and options outstanding that may add to the total number of common shares. Notes to the Condensed I --- nterim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 15 Income Taxes Current income tax assets and liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting period, that are unpaid at the condensed interim consolidated statements of financial position date. Deferred income taxes are calculated using the liability method on temporary differences. Tax losses available to be carried forward as well as other income tax credits are assessed for recognition as deferred tax assets. Deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted at the condensed interim consolidated statements of financial position date. This provision is not discounted. Deferred tax liabilities are generally recognized in full, although Income Taxes (IAS 12) specifies limited exemptions. Deferred tax assets are recognized to the extent that it is probable that they will be able to be offset against future taxable income. Management bases its assessment of the probability of future taxable income on the Company's latest approved forecasts, which are adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax loss or credit. The specific tax rules in the numerous jurisdictions in which the Company operates are also carefully taken into consideration. If a positive forecast of taxable income indicates the probable use of a deferred tax asset, that deferred tax asset is recognized in full. The recognition of deferred tax assets that are subject to certain legal or economic limits or uncertainties is assessed individually by management based on specific facts and circumstances. Changes in deferred tax assets and liabilities are recognized as a component of tax expense in the condensed interim consolidated statements of income and comprehensive income, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity. Income tax is charged at 25% for the three-months period ended January 31, 2026 representing the best estimate of the average annual effective tax rate expected to apply for the full year, applied to the pre-tax income of the three-month period. 3. Significant Management Judgment in Applying Accounting Policies and Estimation Uncertainty When preparing the condensed interim consolidated financial statements, management undertakes several judgments, estimates, and assumptions about the recognition and measurement of assets, liabilities, income, and expenses. The actual results may differ from judgments, estimates, and assumptions made by management, and will seldom equal the estimated results. The judgments, estimates, and assumptions applied in the condensed interim consolidated financial statements, including the key sources of estimation uncertainty, have been updated based on information at January 31, 2026 and with particular respect to the analysis of income taxes and recoverability of potential deferred tax assets as well as the analysis of potential impairment of the Company’s assets, including goodwill. Significant Management Judgment The following are significant management judgments in applying the accounting poli --- cies of the Company and have the most significant effect on the condensed interim consolidated financial statements: Carrying Value of Internally Developed Software The Company makes significant judgments about the value of its proprietary software, CXIFX. Once the scope of a project is deemed technologically feasible, the Company capitalizes costs incurred for the planning, development, and testing phases of modules developed within its software. Subsequent to the completion of the software development cycle, each module is amortized over its estimated useful economic life, which has been assessed as a period of five years. Costs relating to software maintenance, regular software updates, and minor software customizations are expensed as incurred. The Company reviews completed software modules within CXIFX for impairment on an ongoing basis. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 16 Income Taxes and Recoverability of Potential Deferred Tax Assets In assessing the probability of realizing income tax assets recognized, management makes estimates related to expectations of future taxable income, applicable tax planning opportunities, intercompany allocations in accordance with its transfer pricing policy, expected timing of reversals of existing temporary differences, and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. The Company considers whether relevant tax planning opportunities are (1) within the Company’s control, (2) feasible, and (3) within management’s ability to implement. Examination by applicable tax authorities is supported based on individual facts and circumstances of the relevant tax position examined in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that materially affect the amounts of income tax assets recognized. Also, future changes in tax laws could limit the Company from realizing the tax benefits from the deferred tax assets. The Company reassesses unrecognized income tax assets at each reporting period. Impairment of Financial Assets All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or group of financial assets is impaired. Impairment of Non-financial Assets In the determination of carrying values and impairment charges, management looks at the recoverable amount, which is the higher of the value-in-use or fair value less costs of disposal and at objective evidence for a significant or prolonged decline of fair value on financial assets indicating impairment. These determinations and their individual assumptions require that management make a decision based on the best available information at each reporting period. The Company reviews property and equipment and intangible assets for impairment whenever events or changes in circumstances indicate that th --- e carrying value may not be recoverable. Goodwill is tested for impairment at least annually, in the 4th quarter, and at other times when such indicators exist. Estimation Uncertainty Estimates and underlying assumptions are reviewed on an ongoing basis. Information about estimates and assumptions that have the most significant effect on recognition and measurements of assets, liabilities, income, and expenses is provided below. Actual results may be substantially different. Share Based Payments Management determines the overall expense for share based payments using market-based valuation techniques. The fair value of the market-based and performance-based share awards are determined at the date of grant using generally accepted valuation techniques. The determination of the most appropriate valuation model is dependent on the terms and conditions of the grant. Assumptions are made and judgments are used in applying valuation techniques. These assumptions and judgments include estimating the future volatility of the stock price, expected dividend yield, future employee turnover rates, future employee stock option exercise behaviors, and corporate performance. The assumptions and models used for estimating fair value for share based payment transactions are disclosed in Note 15. Such judgments and assumptions are inherently uncertain. Changes in these assumptions affect the fair value estimates. Depreciation and Amortization Expenses The Company's property and equipment and intangible assets are depreciated and amortized over their estimated useful economic lives. Useful lives are based upon management's best estimates of the length of time that the assets will generate revenue, which is reviewed at least annually for appropriateness. Changes to these estimates can result in variations in the amounts charged for depreciation or amortization and in the assets' carrying amounts. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 17 Fair Value Measurement Management uses valuation techniques to determine the fair value of certain financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as much as possible, but this data is not always available. In that case, management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date. Contingencies The Company is subject to contingencies that are not recognized as liabilities because they are either: • possible obligations that have yet to be confirmed whether the Company has a present obligation that could lead to an outflow of resources embodying economic benefits; or • present obligations that do not meet recognition criteria because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a sufficiently reliable estimate of the amount of the obligation cannot be made. The Company is also subject to contingent assets, whose existence will be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the Company. Contingent assets are not recognized, but --- they are disclosed when it is more likely than not that an inflow of benefits will occur. However, when the inflow of benefits is virtually certain an asset is recognized in the condensed interim consolidated statement of financial position, as that asset is no longer considered to be contingent. 4. Segments The Company operates in the United States. The Company’s revenue from external customers and information about its non- current assets by operating segment and product line are detailed below: Revenues by Product Line Banknotes Payments Total Three-months ended January 31, 2026 11,280,904 4,139,107 15,420,011 Three-months ended January 31, 2025 12,664,634 2,786,227 15,450,861 Effective November 1, 2024, the Company fully implemented its modified operating structure under a new service line delivery model, as a result of continued growth in the business. Management currently identifies the Company’s three service lines as its continuing operating segments (see Note 2). The Company’s Chief Operating Decision Makers (CODMs) are the two Managing Directors: the Managing Director of US Direct to Consumer operations, and the Managing Director of US Wholesale Banknotes and Payments operations. They are responsible for monitoring the performance of their respective operating segments, making resource allocation decisions pertaining to those segments, and reporting directly to the Chief Executive Officer. Segmental performance is monitored using adjusted segment operating results. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 18 Segment information and reconciliation to the Company’s condensed interim consolidated financial statements for the reporting period are as follows: Three-month period ended January 31, 2026 CXI Wholesale banknotes Payments DTC Total Revenues $ $ $ $ From external customers 6,280,082 4,139,107 5,000,822 15,420,011 Total revenues 6,280,082 4,139,107 5,000,822 15,420,011 Operating expenses 4,011,093 3,635,081 4,563,719 12,209,893 Net operating income 2,268,989 504,026 437,103 3,210,118 Other (loss) income Interest revenue 95,479 65,450 79,185 240,114 Restructuring charges (125,716) (6,468) (7,666) (139,850) Total other (loss) income (30,237) 58,982 71,519 100,264 Earnings before interest, taxes, depreciation, and amortization 2,238,752 563,008 508,622 3,310,382 Interest expense 10,542 7,574 8,280 26,396 Interest on lease liabilities 30,658 13,701 43,711 88,070 Depreciation and amortization 197,208 79,093 107,778 384,079 Depreciation of right-of-use assets 117,679 17,113 344,463 479,255 Income before income taxes 1,882,665 445,527 4,390 2,332,582 Income tax expense 468,510 110,872 1,092 580,474 Net income for the period 1,414,155 334,655 3,298 1,752,108 Total assets 69,895,519 16,416,205 28,085,389 114,397,113 Total liabilities 4,536,167 20,412,893 10,181,895 35,130,955 Three-month period ended January 31, 2025 CXI Wholesale banknotes Payments DTC Total Revenues $ $ $ $ From external customers 7,287,857 2,786,227 5,376,777 15,450,861 Total revenues 7,287,857 2,786,227 5,376,777 15,450,861 Operating expenses 5,142,161 2,005,241 4,480,453 11,627,855 Net operating income 2,145,696 780,986 896,324 3,823,006 Other income Interest revenue 725 29,421 597 30,743 Total other income 725 29,421 597 30,743 Earnings before interest, taxes, depreciation, and amortization 2,146,421 810,407 896,921 3,8 --- 53,749 Interest expense 23,596 9,120 17,572 50,288 Interest on lease liabilities 36,713 9,842 46,980 93,535 Depreciation and amortization 192,357 35,853 166,931 395,141 Depreciation of right-of-use assets 122,278 11,998 342,246 476,522 Income before income taxes 1,771,477 743,594 323,192 2,838,263 Income tax expense 713,763 299,608 130,220 1,143,591 Net income for the period 1,057,714 443,986 192,972 1,694,672 Total assets 61,434,323 6,689,207 14,414,272 82,537,802 Total liabilities 9,868,767 8,083,914 9,254,967 27,207,648 Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 19 5. Cash Included within cash associated with continuing operations of $96,079,426 at January 31, 2026 (October 31, 2025, $95,503,795) are the following cash balances: January 31, 2026 October 31, 2025 $ $ Cash held in transit, vaults, tills and consignment locations 49,217,471 53,219,609 Cash deposited in bank accounts 46,861,955 42,284,186 Total 96,079,426 95,503,795 Cash included in assets held for distribution to shareholder (Note 11) 4,963,765 7,432,488 Total 101,043,191 102,936,283 6. Property and Equipment Property and equipment for the period consist of the following: Vehicles Computer equipment Furniture and equipment Leasehold improvements Total Cost $ $ $ $ $ Balance, October 31, 2024 66,641 504,552 1,979,265 3,120,871 5,671,329 Additions - 100,910 113,395 358,316 572,621 Disposals - (18,388) (102,875) (716,567) (837,830) Balance, October 31, 2025 66,641 587,074 1,989,785 2,762,620 5,406,120 Additions - 14,256 35,349 20,988 70,593 Disposals - (5,433) (265,259) (493,731) (764,423) Balance, January 31, 2026 66,641 595,897 1,759,875 2,289,877 4,712,290 Vehicles Computer equipment Furniture and equipment Leasehold improvements Total Depreciation $ $ $ $ $ Balance, October 31, 2024 48,758 226,293 839,395 2,190,101 3,304,547 Additions 16,765 126,894 405,855 390,410 939,924 Disposals - (18,388) (96,474) (706,435) (821,297) Impairment charges 27 5,823 16,010 140,297 162,157 Balance, October 31, 2025 65,550 340,622 1,164,786 2,014,373 3,585,331 Additions 1,091 34,840 98,298 73,710 207,939 Disposals - (5,433) (265,259) (493,731) (764,423) Balance, January 31, 2026 66,641 370,029 997,825 1,594,352 3,028,847 Vehicles Computer equipment Furniture and equipment Leasehold improvements Total Carrying amounts $ $ $ $ $ Balance, October 31, 2025 1,091 246,452 824,999 748,247 1,820,789 Balance, January 31, 2026 - 225,868 762,050 695,525 1,683,443 Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 20 7. Goodwill and Intangible Assets Intangible assets comprise the Company's internally developed software (CXIFX) and its related modules, as well as software and customer trading relationships acquired through various business combinations. Goodwill and intangible assets for the period consist of the following: Internally developed software Acquired software Customer trading relationships Trade name, non- compete & unpatented tech cost Goodwill Total Cost $ $ $ $ $ $ Balance, October 31, 2024 4,817,314 783,217 4,104,326 670,000 1,309,701 11,684,558 Additions 914,053 - - - - 914,053 Balance, October 31, 2025 5,731,367 783,217 4,104,326 670,000 1,309,701 12,598,611 Additions 144,904 - - - - 144,904 Balance, January 31, 2026 --- 5,876,271 783,217 4,104,326 670,000 1,309,701 12,743,515 Internally developed software Acquired software Customer trading relationships Trade name, non- compete & unpatented tech cost Goodwill Total Amortization $ $ $ $ $ $ Balance, October 31, 2024 3,407,881 779,615 3,395,176 670,000 - 8,252,672 Amortization 498,327 3,602 146,000 - - 647,929 Impairment charges 38,339 - - - - 38,339 Balance, October 31, 2025 3,944,547 783,217 3,541,176 670,000 - 8,938,940 Additions 139,640 - 36,500 - - 176,140 Balance, January 31, 2026 4,084,187 783,217 3,577,676 670,000 - 9,115,080 Internally developed software Acquired software Customer trading relationships Trade name, non- compete & unpatented tech cost Goodwill Total Carrying amounts $ $ $ $ $ $ Balance, October 31, 2025 1,786,820 - 563,150 - 1,309,701 3,659,671 Balance, January 31, 2026 1,792,084 - 526,650 - 1,309,701 3,628,435 Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 21 8. Right-of-use Assets and Lease Liabilities Lease liabilities are presented in the condensed interim consolidated statements of financial position as follows: January 31, 2026 October 31, 2025 $ $ Current lease liabilities 1,403,381 1,574,780 Non-current lease liabilities 4,604,955 4,319,240 Total 6,008,336 5,894,020 The Company has leases for corporate offices as well as its retail store locations. With the exception of short-term leases and leases of low-value underlying assets, each lease, meeting the definition under IFRS 16, is reflected on the condensed interim consolidated statements of financial position as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate, such as lease payments based on a percentage of Company sales, are excluded from the initial measurement of the lease liability and asset. During the year certain leases for corporate offices were modified based on their amended lease agreements, with any gains or losses being recognized in profit or loss. The Company classifies its right-of-use assets in a consistent manner to its property and equipment (see Note 6). Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be canceled by incurring a substantial termination fee. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over corporate offices and retail store locations, the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease. The table below describes the nature of the Company’s leasing activities by the type of right-of-use asset recognized on the condensed interim consolidated statements of financial position: Right-of-use asset No. of right- of-use assets leased Range of remaining term Average remaining lease term No. of leases with extension options No. of lease with options to purchase No. of leases with variable payments linked to an index No. of leases with termination options Corporate offices 4 1-11 years 4 1 - - - Retail store locations 23 0-5 years 1 1 - - - Total 27 0-11 years 2 2 - - - The lease liabilities are s --- ecured by the related underlying assets. Future minimum lease payments at January 31, 2026 were as follows: Within 1 Year 1-2 years 2-3 years 3-4 years 4-5 years After 5 years Total Lease payments 1,705,952 1,219,617 908,404 665,788 544,086 2,436,130 7,479,977 Finance charges 302,571 251,649 205,410 170,064 144,699 397,248 1,471,641 Net present values 1,403,381 967,968 702,994 495,724 399,387 2,038,882 6,008,336 The Company has elected not to recognize a lease liability for short-term leases (leases with an expected term of 12 months or less) or for leases of low-value assets. In addition, the Company has not recognized a right-of-use asset or lease liability with respect to leases identified where the lessor was determined to have substantive substitution rights. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are not permitted to be recognized as lease liabilities and are expensed as incurred. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 22 The expense relating to payments not included in the measurement of the lease liability is as follows: Three-month period ended Three-month period ended January 31, 2026 January 31, 2025 $ $ Leases with substantial substitution rights 178,717 177,642 Short-term leases 67,976 61,813 Variable lease payments 98,371 107,506 Total 345,064 346,961 At January 31, 2026, the Company was committed to short-term leases and the total commitment at that date was $26,000 (2025, $83,826). The total cash outflow for leases related to continuing operations for the three-month period ended January 31, 2026, was $539,738 (2025, $564,080). For the three-month period ended January 31, 2026, the Company incurred interest expense on lease liabilities in the amount of $88,070 (2025, $93,535) and recognized as interest expense on lease liabilities in the condensed interim consolidated statements of income and comprehensive income. Additional information on the right-of-use assets by class of assets is as follows: Three-month period ended January 31, 2026 Carrying amount Additions Depreciation expense Impairment $ $ $ Corporate offices 3,487,516 - 163,381 - Retail store locations 1,995,251 614,969 315,874 - Total right-of-use assets 5,482,767 614,969 479,255 - Three-month period ended January 31, 2025 Carrying amount Additions Depreciation expense Impairment $ $ $ Corporate offices 4,323,126 - 166,455 - Retail store locations 2,308,459 339,558 310,067 - Total right-of-use assets 6,631,585 339,558 476,522 - 9. Seasonality of Operations While seasonality is generally not a consideration for the Payments product line, seasonality of the Banknotes product line is reflected in the timing of when foreign currencies are in greater or lower demand. In a normal operating year, there is some seasonality to the Company’s operations with higher commissions generally from March until September and lower commissions from October to February. This coincides with peak tourism seasons in North America when there are generally more travelers entering and leaving the United States and Canada. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 23 10. Lines of Credit The Company maintains lines of credit to meet bo --- rrowing needs during peak business periods. On June 15, 2022, the Company entered into an Amended and Restated Credit Agreement with BMO Harris Bank, N.A. The Amended and Restated Credit Agreement increased the revolving line of credit limit from $20,000,000 to $30,000,000 and provided an accordion feature for up to an additional $10,000,000 with the lender’s approval. The Amended and Restated Credit Agreement provided a term of two years (maturity date on June 15, 2024). The Amended and Restated Credit Agreement was updated on July 18, 2022, in the form of a Second Amended and Restated Credit Agreement, to reflect the exercised accordion feature, which increased the line of credit to $40,000,000, and a reduced margin spread in the borrowing rate by 25 bps. The form of Second Amended and Restated Credit Agreement was further amended on July 12, 2023, to provide a seasonal increase in the borrowing capacity by $10,000,000 to $50,000,000, effective through August 31, 2023, and extended the maturity on the facility to June 15, 2025. The Company updated the agreement on June 27, 2024, in the form of a Third Amended and Restated Credit Agreement to accommodate share repurchases under a Normal Course Issuer Bid (NCIB) up to $4 million annually. The updated agreement eliminates the resting period on the intercompany loan and extends the maturity on the facility to June 15, 2026. The company executed a first amendment to this agreement on September 30, 2025 to increase the share repurchases permitted under an NCIB up to $5.5 million annually. The credit line is secured against the Company’s cash and other assets, and bears interest at the one month Secured Overnight Financing Rate (SOFR) plus 2.25% (3.67% at January 31, 2026 and 4.13% at October 31, 2025). At January 31, 2026, the balance outstanding was $Nil (October 31, 2025, $Nil). Interest expense primarily relates to interest payments on lines of credit. Interest expense for the three-month period ended January 31, 2026 was $26,396 (2025, $50,288). 11. Discontinued Operations On February 18, 2025, the Company announced its decision to cease the operations of its wholly-owned subsidiary, Exchange Bank of Canada (EBC). This strategic decision and operational plan for restructuring were communicated to all staff of EBC on February 19, 2025. EBC ceased operations as of October 31, 2025, and has formally applied for approval from the Minister of Finance to discontinue from the Bank Act. Once final regulatory approval has been obtained, management and the directors plan to liquidate the remaining assets and liabilities of EBC and distribute those net assets to its shareholder. As EBC has been classified as a discontinued operation, the operating segments associated with EBC are no longer presented in the segment information (Note 4). Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 24 The results of EBC’s discontinued operations for the periods are presented below: Three-month period ended Three-month period ended January 31, 2026 January 31, 2025 $ $ Revenues (11) 4,440,578 Operating expenses 228,757 5,287,524 Net operating loss (228,768) (846,946) Other income (loss) Interest revenue 38,008 88,189 Restructuring charges (35,585) - Loss before interest, taxes, depreciation and amortization (226,345) (758,757) Interest expense - 116,713 Interest on lease liabilities --- - 6,672 Loss before income taxes from discontinued operations (226,345) (882,142) Income tax expense - - Net loss from discontinued operations (226,345) (882,142) Earnings Per Share Basic loss per share from discontinued operations (0.04) (0.14) Diluted loss per share from discontinued operations (0.04) (0.14) The major classes of assets and liabilities of EBC that are classified as assets held for distribution to shareholder as at January 31, 2026 and October 31, 2025 are, as follows: January 31, 2026 October 31, 2025 ASSETS Current assets $ $ Cash (Note 5) 4,963,765 7,432,488 Accounts receivable - 6,224 Other current assets 21,985 - Assets held for distribution to shareholder 4,985,750 7,438,712 LIABILITIES AND EQUITY Accounts payable 82,902 66,852 Accrued expenses 209,222 2,349,770 Liabilities directly associated with the assets held for distribution to shareholder 292,124 2,416,622 Net assets directly associated with disposal group 4,693,626 5,022,090 Reserve of a disposal group (amounts recognized in AOCL related to discontinued operations) (6,417,313) (6,560,297) The net cash flows incurred by EBC are as follows: January 31, 2026 January 31, 2025 Operating (2,429,941) (9,977,513) Financing - (34,837) Net cash outflow (2,429,941) (10,012,350) Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 25 12. Fair Value Measurement of Financial Instruments The fair value determination is the estimated amount that the Company would receive to sell a financial asset or pay to transfer a financial liability in an orderly transaction between market participants at the measurement date. There were no transfers between Level 1 and Level 2 during the three-month period ended January 31, 2026. The following table shows the levels within the hierarchy of financial assets and liabilities measured at fair value. January 31, 2026 Level 1 Level 2 Level 3 Total $ $ $ $ Financial assets Cash 96,079,426 - - 96,079,426 Forward and option contract assets - 457,887 - 457,887 Total assets 96,079,426 457,887 - 96,537,313 Financial liabilities Restricted and deferred share units - 1,558,119 - 1,558,119 Total liabilities - 1,558,119 - 1,558,119 October 31, 2025 Level 1 Level 2 Level 3 Total $ $ $ $ Financial assets Cash 95,503,795 - - 95,503,795 Forward and option contract assets - 280,989 - 280,989 Total assets 95,503,795 280,989 - 95,784,784 Financial liabilities Restricted and deferred share units - 1,465,044 - 1,465,044 Total liabilities - 1,465,044 - 1,465,044 Cash (Level 1) The Company’s cash balances consisting of local and foreign currency notes held in tills, vaults, bank accounts, and in transit are based upon foreign exchange rates quoted in active markets as of January 31, 2026 and October 31, 2025. Forward and Option Contract Positions, and Long-term Liability from Restricted and Deferred Share Units (Level 2) The Company’s forward contract positions are traded in active markets. The fair value of these instruments has been determined using observable forward exchange rates on similar contract positions. Changes in fair value from these positions are recognized in foreign exchange gains or losses within operating expenses. The effects of non-observable inputs are not significant for foreign contract positions (see Note 14). Other long-term liabilities include the Company’s liability for RSU and DSU awards and are valued u --- sing a volume-weighted average price based on the five days preceding the date of grant. The cost of the awards is recorded on a straight-line basis over the vesting period. At each reporting date, the vested portion of the awards is remeasured using the Company’s share price prevailing at the reporting date. Changes in the remeasurement of liabilities from RSU and DSU awards are recognized in stock based compensation within operating expenses. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 26 Due to their short-term nature, the carrying value of the following financial instruments approximates their fair value at the dates of the condensed interim consolidated statements of financial position: • Accounts receivable; • Lines of credit; • Accounts payable; and • Holding accounts. 13. Risk Management The Company's activities expose it to a variety of financial risks: credit risk, foreign currency risk, interest rate risk, and liquidity risk. The Company's risk management policies are designed to minimize the potential adverse effects on the Company's financial performance. Financial risk management is carried out by the Chief Financial Officer (CFO) under policies approved by senior management and the board of directors. Policies are in place to evaluate and monitor risk and in some cases, prescribe that the Company hedge its financial risks. The analysis below presents information about the Company's exposure to each of these financial risks arising from financial instruments and the Company's objectives, policies, and processes for measuring and managing these risks. Credit Risk Credit risk is the risk of financial loss associated with the counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash in bank accounts, accounts receivable, and forward contracts from hedging counterparties. All banking relationships are negotiated by senior management. The Company maintains accounts in high-quality financial institutions. At various times, the Company's bank balances exceed insured limits. The credit risk associated with accounts receivable is limited, as the Company's receivables consist primarily of bulk currency trades with a settlement cycle of 24 to 48 hours. The majority of the Company's receivables reside with banks, money service business customers, and other financial institutions. For the purpose of risk control, the Company’s customers are grouped as follows: domestic and international banks, money service businesses, and other customers. Credit limits are established for each customer, whereby the credit limit represents the maximum open amount without requiring payments in advance. These limits are reviewed regularly by senior management. A breakdown of accounts receivable by category is below: January 31, 2026 October 31, 2025 Customer type $ $ Domestic and international financial institutions 2,558,273 1,800,488 Money-service businesses 877,660 1,131,388 Other 331,478 455,244 Total 3,767,411 3,387,120 The maximum exposure to credit risk is represented by the carrying amount of each financial asset on the condensed interim consolidated statements of financial position. There are no commitments that could increase this exposure to more than the carrying amount. Notes to the Condensed Interim Consolidated Financial Statements For the th --- ree-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 27 Foreign Currency Risk The volatility of the Company's foreign currency holdings may increase as a result of the political and financial environment of the corresponding issuing country. Several currencies have a limited exchange rate exposure as they are pegged to the U.S. Dollar, the reporting currency of the Company. Management mitigates its exposure to foreign currency fluctuations through a layered risk management strategy that includes forward hedges and selective use of purchased options. Due to their nature, some minor and exotic foreign currencies cannot be hedged or are too cost prohibitive to hedge. These exposures are managed to acceptable risk appetite levels using a historical Value-at-Risk (VaR) methodology. Foreign currency exposure, in the form of exchange gains and losses arising from normal trading activities and business operations, are included in operating expenses for the period. In order to further mitigate the risks associated with holding these foreign currencies, the Company assigns wider bid/ask spreads and maintains specific inventory targets to minimize the impact of exchange rate fluctuations. These targets are reviewed regularly and are increased or decreased to accommodate demand within acceptable risk tolerances. The amount of unhedged inventory held in tills, vaults, on consignment, and in transit on January 31, 2026, was $8,229,481 (October 31, 2025, $8,109,585). The amount of currency that is unhedged and that is not pegged to the U.S. Dollar is $7,088,764 (October 31, 2025, $7,061,575). A 2% increase/reduction in the market price for the aggregate of the Company's unhedged/un-pegged foreign currencies would result in an exchange gain/loss of approximately +$142,000/-$142,000 (October 31, 2025, gain/loss of approximately +$141,000/-$141,000). On a consolidated basis, the Company is also exposed to foreign currency fluctuations between the U.S. Dollar and the Canadian Dollar, being the functional currency of its Canadian subsidiary. The Company does not hedge its net investment in its Canadian subsidiary and the related foreign currency translation of its earnings. Interest Rate Risk At January 31, 2026, the Company had access to interest-bearing financial instruments in cash and lines of credit. A significant amount of the Company's cash is held as foreign currency banknotes in tills, on consignment, and its own vaults. These amounts are not subject to interest rate risk. Cash held in some of the Company’s accounts are interest-bearing. The Company is subject to a small amount of cash flow interest rate risk from the borrowings on its lines of credit; however, as borrowings have declined and remained within policy limits, this risk is low. Borrowings bear interest at variable rates. Currently, the interest rate exposure is unhedged as management has determined the exposure to be immaterial. For the interest rate profile of the Company's interest-bearing financial liabilities, refer to Note 10. If interest rates had been 50 basis points higher/lower with all other variables held constant, after-tax profit for the three- month period ended January 31, 2026 would have been approximately +$40,000/-$40,000 higher/lower as a result of credit lines held at variable interest rates. Liquidity Risk Liquidity risk is the risk of the Company incurring losses resulting from the inability to meet payment ob --- ligations in a timely manner when they become due or from being unable to do so at a sustainable cost. To effectively manage liquidity risk, the Company has implemented preventative risk monitoring measures, including setting a minimum for undrawn lines of credit to be greater than $2,600,000 notional daily. As required, the Treasurer and CFO report any liquidity issues to the Chief Executive Officer (CEO), SVP, Risk and Corporate Governance, and the Audit Committee in accordance with established policies and guidelines. Management has assessed the Company’s cash position at January 31, 2026 and determined that it is sufficient to meet its financial obligations. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 28 The following are non-derivative contractual financial liabilities: January 31, 2026 Non-derivative financial liabilities Carrying amount Estimated contractual amount Next fiscal year Future fiscal years $ $ $ $ Accounts payable 24,223,686 24,223,686 24,223,686 Nil Holding accounts 193,645 193,645 193,645 Nil October 31, 2025 Non-derivative financial liabilities Carrying amount Estimated contractual amount Next fiscal year Future fiscal years $ $ $ $ Accounts payable 21,148,274 21,148,274 21,148,274 Nil Holding accounts 188,676 188,676 188,676 Nil The Company had available unused lines of credit amounting to $40,000,000 at January 31, 2026 (October 31, 2025, $40,000,000). Capital Management The Company manages capital through its financial and operational forecasting processes. The Company defines its capital as working capital, which is total current assets less current liabilities. Due to the nature of the Company’s operations, working capital comprises a significant portion of the overall equity of the entity. The Company reviews its working capital and forecasts its cash flows based on operating expenditures, and other investing and financing activities related to its daily operations. January 31, 2026 October 31, 2025 $ $ Current assets 102,984,796 101,455,659 Current liabilities (28,967,881) (28,080,866) Working capital 74,016,915 73,374,793 The Company monitors its capital structure and makes adjustments according to market conditions in an effort to meet its objectives, given the current outlook of the business and industry in general. The Company may manage its capital structure by issuing new shares, obtaining loan financing, adjusting capital spending, repurchasing shares, or disposing of assets. The capital structure is reviewed by management and the board of directors on an ongoing basis. 14. Foreign Currency Forward and Option Contracts The Company enters into foreign currency forward contracts and purchased put option contracts with non-client counterparties to mitigate the risk of fluctuations in the exchange rates of exposures in certain major currencies. Changes in fair value of these contracts and the corresponding gains or losses are included in operating expenses in the condensed interim consolidated statements of income and comprehensive income. The Company’s management strategy is to mitigate the inherent risks in the Company’s exposure to foreign exchange, thereby minimizing volatility in earnings. The foreign currency forward contracts can be closed immediately resulting in any collateral being liquidated. The foreign currency option contracts are held to maturity and are --- either exercised for a net gain or expire at no obligation to the Company. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 29 The fair value of forward and option contracts, which represents the amount that would be received by the Company if the contracts were terminated at January 31, 2026 was $457,887 (October 31, 2025, $280,989). 15. Equity Share Capital The authorized share capital consists of 100,000,000 common shares. The common shares have a par value of $1.00. As of January 31, 2026, the Company had 5,984,120 common shares outstanding (6,135,120 at October 31, 2025). On November 28, 2024, TSX accepted the Company’s Notice of Intention to make another NCIB and Automatic Securities Purchase Plan to purchase for cancellation a maximum amount of 316,646 common shares representing 5% of the Company’s issued and outstanding common shares. Purchases under the Company’s second consecutive NCIB commenced on December 2, 2024 and terminated on December 1, 2025. On August 20, 2025, TSX accepted the Company’s Notice of Intention to amend its normal course issuer bid (NCIB) and Automatic Securities Purchase Plan (ASPP) that were approved on November 28, 2024. The amendment increased the number of annual share repurchases from 316,646 common shares, representing 5% of common shares outstanding as of November 18, 2024 to 377,000 common shares, representing 8.09% of public float as of November 18, 2024 and 10% of public float as of August 20, 2025. The Company received approval from its primary lender to increase its NCIB commensurate with the amendment. This amendment retroactively increased the number of share repurchases allowed under the Company’s current NCIB, which commenced on December 2, 2024 and terminated on December 1, 2025. On November 26, 2025, the TSX accepted the Company’s Notice of Intention to make another NCIB and Automatic Securities Purchase Plan to purchase for cancellation a maximum amount of 359,617 common shares representing 10% of the Company’s public float as of November 18, 2025. Purchases may commence on December 2, 2025 and will terminate on December 1, 2026, or such earlier date in the event that the maximum number of shares sought in this NCIB has been repurchased. During the three-month period ended January 31, 2026, the Company purchased for cancellation 151,000 common shares at the normal market prices trading on TSX for $2,504,330. These shares were immediately cancelled and removed from treasury stock by the Company. Stock Options The Company offers an incentive stock option plan (the Plan) which was established April 28, 2011 and was amended most recently March 23, 2023. The Plan is a rolling stock option plan, under which 15% of the outstanding shares at any given time are available for issuance thereunder. The purpose of the Plan is to promote the profitability and growth of the Company by facilitating the efforts of the Company to attract and retain directors, senior officers, employees, and management. Under the terms of the Plan, vesting for the Company’s management will occur 1/3 upon the first anniversary, 1/3 upon the second anniversary, and 1/3 upon the third anniversary of the grant. All the options have a five-year term, unless otherwise specified by the Board of Directors. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods --- ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 30 The outstanding options at January 31, 2026 and the respective changes during the periods are summarized as follows: Number of options Weighted average price # CDN$ Outstanding at November 1, 2025 379,521 19.38 Granted 84,276 24.52 Exercised - - Expired - - Forfeited/cancelled (3,080) 23.78 Outstanding at January 31, 2025 460,717 20.29 The following options are outstanding and exercisable at January 31, 2026: Grant date Exercise price (CAD$) Number outstanding Average remaining contractual life (years) Number exercisable Oct 28, 2021 $14.35 88,464 0.74 88,464 Apr 28, 2022 $18.10 20,000 1.24 20,000 Sep 21, 2022 $18.93 5,748 1.64 5,748 Oct 31, 2022 $18.37 103,314 1.75 103,314 Oct 30, 2023 $20.07 80,726 2.75 54,566 Oct 30, 2024 $25.89 78,189 3.75 26,722 Nov 1, 2025 $24.52 84,276 4.75 - Total 460,717 298,814 On November 1, 2025, the Company granted 84,276 stock options awards at an exercise price of CAD$24.52. During the three-month period ended January 31, 2026, 3,080 stock options had forfeited in relation to an employee who had left the Company. During the three-month period January 31, 2026, the Company recognized $96,724 of stock based compensation expense in relation to employees’ stock option awards that have vested during the period (January 31, 2025, $101,000). Restricted Share Unit and Deferred Share Unit Plans On November 1, 2025, the Company made an annual RSU award under the RSU Plan. The Company granted 25,876 RSU awards in the amount of $449,774. In the three-month period ended January 31, 2026, the Company recognized stock based compensation expense in the amount of $259,677 related to DSU and RSU awards, out of which an expense of $105,580 was related to DSU awards and an expense of $154,097 was related to RSU awards. This compares to a net expense reversal of $175,202 in the prior year, out of which $229,273 was an expense reversal related to DSU awards and $54,071 was an expense related to RSU awards. The liability amounts related to the vested portions of granted RSU and DSU awards are recorded within other long-term liabilities in the condensed interim consolidated statements of financial position. The liability from these awards as of January 31, 2026 amounted to $1,558,119 (October 31, 2025, $1,465,044). The awards that may be granted under each of the Plans can be realized in cash only and may not be converted into common shares of the Company. The units awarded are issued based upon the market value equal to the price of the Company’s stock price as at the date of the grant and vest over one-year or three-year periods. The purpose of these Plans is to promote the profitability and growth of the Company by facilitating the efforts of the Company to attract and retain directors, senior officers, employees, and management. Under the terms of the plans, vesting of the awards that may be granted under the Plans for management will occur 1/3 upon the first anniversary, 1/3 upon the second anniversary, and 1/3 upon the third anniversary of the grant, while awards that may be granted under the plans for Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 31 directors will vest on a quarterly basis in the first year after the grant. All the management awards have a three-year term, unless otherwise specifie --- d by the board of directors. The directors’ awards cannot be redeemed until the director retires from the board. 16. Earnings per Share The calculation of basic and diluted earnings per share is presented below. Stock option awards that are anti-dilutive equity instruments are not included in the calculation of the diluted weighted average number of shares outstanding. Three-month period ended Three-month period ended January 31, 2026 January 31, 2025 Basic Net earnings $1,525,763 $812,530 Weighted average number of shares outstanding 5,984,120 6,299,013 Basic earnings per share $0.25 $0.13 Diluted Net earnings $1,525,763 $812,530 Weighted average number of shares outstanding 6,052,790 6,539,817 Diluted earnings per share $0.25 $0.12 17. Operating expenses The table below identifies the composition of the nature and amounts included within the operating expenses presented in the condensed interim consolidated statements of income and comprehensive income for the three-month periods ended on January 31, 2026 and 2025. Three-month period ended Three-month period ended January 31, 2026 January 31, 2025 $ $ Salaries and benefits 7,614,041 7,071,453 Postage and shipping 1,404,177 1,407,261 Information technology 844,714 669,259 Bank service charges 826,127 184,147 Rent 444,988 455,020 Marketing and publicity 440,917 315,180 Legal and professional 370,905 621,250 Stock based compensation 356,401 (74,202) Insurance, taxes and licensing 300,229 257,131 Losses and shortages 127,987 161,463 Travel and entertainment 125,165 136,113 Foreign exchange (gains) losses (818,382) 278,863 Other general and administrative 172,624 144,917 Operating expenses 12,209,893 11,627,855 Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 32 18. Compensation of Key Management Personnel and Related Party Transactions In accordance with Related Party Disclosures (IAS 24), key management personnel are those persons having authority and responsibility for planning, directing, and controlling activities of the Company directly or indirectly, including any directors (executive and non-executive) of the Company. The remuneration of directors and other members of key management personnel during the three-month periods ended on January 31, 2026 and 2025 was as follows: Three-month period ended Three-month period ended January 31, 2026 January 31, 2025 $ $ Short-term benefits 1,218,311 1,199,732 Post-employment benefits 75,203 47,675 Stock based compensation 95,474 97,365 Restricted and Deferred Share Units 259,677 (175,201) Total 1,648,665 1,169,571 The Company incurred legal and professional fees in the aggregate of $22,494 for the three-month period ended January 31, 2026 (2025, $31,125) charged by entities controlled by directors or officers of the Company. The Company has clients that are considered related parties through one of its directors. The Company generated $140,262 in revenue from these clients’ activities for the three-month period ended January 31, 2026 (2025, $117,490). As at January 31, 2026, accounts receivable included $Nil from related parties (October 31, 2025, $Nil). On October 1, 2011, the Company entered into an employment agreement with the President and CEO of the Company. Such agreement contains clauses requiring additional payments of a minimum of $450,000 to be made upon the occurrence of certain events, such as a cha --- nge of control of the Company or termination for reasons other than cause. As the likelihood of a change of control of the Company is not determinable, the contingent payments have not been reflected in the condensed interim consolidated financial statements. Key management personnel and directors occasionally conduct transactions with the Company as individuals. Such transactions are immaterial individually and in total including for the three-month periods ended January 31, 2026 and 2025 and are conducted pursuant to the Company’s policies. All transactions with related parties as noted above are carried out in the normal course of business and at prevailing market rates. 19. Other Current Assets January 31, 2026 October 31, 2025 $ $ Prepaid software as a service 976,518 753,914 Prepaid insurance 584,048 653,325 Other current assets 1,119,506 876,516 Total 2,680,072 2,283,755 Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended January 31, 2026 and 2025 (Expressed in U.S. Dollars) (Unaudited) Q1 2026 Report | 33 20. Contingencies EBC is involved in ongoing litigation in which a third party has filed a counterclaim against EBC in connection with a past shipping incident. The third party is seeking monetary damages of up to CAD $750,000 and other relief under several alleged causes of action, including breach of contract and defamation. Management considers the claims to be without merit and EBC intends to rigorously defend its position with assistance from legal counsel. The outcome and timing of resolution of the matter remain uncertain. EBC maintains insurance coverage that is expected to reimburse a significant portion of potential damages and related defense costs, subject to policy exclusions and a reservation of rights by the insurers. As at the reporting date, no provision has been recognized, as the existence and extent of any obligation will be confirmed only by the outcome of future events and the amount of any potential outflow cannot be reliably measured. 21. Subsequent Events The Company evaluated subsequent events through March 11, 2026, the date these condensed interim consolidated financial statements were issued. There were no material subsequent events that required recognition or additional disclosure in the condensed interim consolidated financial statements.