SEDAR Interim Financial Statements

Interim condensed consolidated financial statements of Blue Ant Media Corporation (Unaudited) For the three and six months ended February 28, 2026 and 2025 Three months ended February 28, Six months ended February 28, 2026 2025 2026 2025 (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Revenues (Note 12) 69,961 38,377 150,425 87,084 Expenses Direct content, production and delivery expenses 47,665 21,422 107,093 51,049 Sales, general and administrative expenses 18,472 12,834 34,514 25,562 Share-based compensation (Note 11) 1,441 466 1,698 1,051 Depreciation and intangible amortization 3,668 1,446 6,379 2,808 Finance expenses, net (Note 14) 1,131 1,972 1,571 3,991 Loss (gain) on contingent consideration — 152 — 152 (Gain) loss on sale of assets (Notes 4 (a) and 6 (a)) (2,988) — 66 — Transaction and other related costs (Note 4) 4,902 2,065 7,442 2,133 Restructuring costs 1,070 (3) 1,858 (3) 75,361 40,354 160,621 86,743 Income (loss) before income taxes (5,400) (1,977) (10,196) 341 Income tax expense (Note 15) Current tax expense 1,170 437 2,706 2,971 Deferred tax expense (recovery) (389) 2,546 29 1,112 781 2,983 2,735 4,083 Net (loss) income (6,181) (4,960) (12,931) (3,742) Net (loss) income attributable to: Shareholders (6,030) (4,822) (12,872) (3,723) Non-controlling interest (151) (138) (59) (19) (6,181) (4,960) (12,931) (3,742) Income (loss) per share attributable to shareholders (Note 20): Basic (0.23) (0.30) (0.53) (0.23) Diluted (0.23) (0.30) (0.53) (0.23) Blue Ant Media Corporation Interim Consolidated Statements of Net (Loss) Income (Unaudited) (Expressed in thousands of Canadian dollars, except per share amounts) The accompanying notes are an integral part of these interim condensed consolidated financial statements. Three months ended February 28, Six months ended February 28, 2026 2025 2026 2025 (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Net (loss) income (6,181) (4,960) (12,931) (3,742) Item that may be subsequently reclassified to income Cumulative translation adjustment (1,694) 2,389 (275) 4,730 (1,694) 2,389 (275) 4,730 Comprehensive (loss) income (7,875) (2,571) (13,206) 988 Comprehensive (loss) income attributable to: Shareholders (7,724) (2,433) (13,147) 1,007 Non-controlling interest (151) (138) (59) (19) (7,875) (2,571) (13,206) 988 Blue Ant Media Corporation Interim Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Expressed in thousands of Canadian dollars) The accompanying notes are an integral part of these interim condensed consolidated financial statements. February 28, 2026 August 31, 2025 $ $ Assets Current assets Cash and cash equivalents 50,747 54,477 Restricted cash — 8 Trade and other receivables (Notes 6, 16) 186,092 120,214 Prepaids and other assets 18,757 7,520 Income taxes receivable 9,462 237 Total current assets 265,058 182,456 Property and equipment 10,549 5,118 Right-of-use assets 36,616 22,808 Investment in content rights (Note 5) 139,348 119,106 Intangible assets (Note 4) 75,130 61,359 Goodwill (Note 4) 75,236 38,658 Other long-term receivables (Note 6) 11,212 32,691 Deferred tax assets 14,981 9,210 Total non-current assets 363,072 288,950 Total assets 628,130 471,406 Liabilities Current liabilities Accounts payable and accrued liabilities (Note 7) 104,116 64,785 Deferred revenue (Note 9) 68,550 35,709 Current portion of lease liability 8,262 4,343 Current portion of bank indebtedness (Note 8) 8,441 14,587 Interim production financing (Note 8) 55,126 52,144 Curren --- t portion of promissory notes 4,660 4,536 Other current liabilities 5,851 2,757 Total current liabilities 255,006 178,861 Non-current liabilities Lease liability 32,123 21,066 Bank indebtedness (Note 8) 33,224 4,755 Long-term deferred revenue (Note 9) 3,829 2,251 Other long-term liabilities 3,618 — Deferred tax liabilities 12,190 12,639 Total non-current liabilities 84,984 40,711 Shareholder's Equity Total equity attributable to shareholders 281,284 244,919 Non-controlling interests 6,856 6,915 Total equity 288,140 251,834 Total liabilities and equity 628,130 471,406 Commitments (Note 18) Blue Ant Media Corporation Interim Consolidated Statements of Financial Position (Unaudited) (Expressed in thousands of Canadian dollars) On Behalf of the Board of Directors (signed) “Michael MacMillan” (signed) “Robb Chase” ___________________________________ Director _______________________________Director The accompanying notes are an integral part of these interim condensed consolidated financial statements. Share capital (Note 10) Share capital Other capital Accumulated other comprehensive income / (loss) Deficit Accumulated paid in capital Total equity attributable to shareholders Non- controlling interest Total equity (Revised - Note 2 (c)) (Revised - Note 2 (c)) (Revised - Note 2 (c)) # $ $ $ $ $ $ $ $ Opening Balance - August 31, 2024 125,848,895 156,150 39,198 1,646 (14,360) (11,070) 171,564 6,537 178,101 Issuance of non-voting common shares 22,222 236 — — — — 236 — 236 Share-based compensation expense — — 951 — — — 951 — 951 Net income (loss) and comprehensive income — — — 4,730 (3,723) — 1,007 (19) 988 Total as of February 28, 2025 125,871,117 156,386 40,149 6,376 (18,083) (11,070) 173,758 6,518 180,276 Share capital (Note 10) Share capital Other capital Accumulated other comprehensive income / (loss) Deficit Accumulated paid in capital Total equity attributable to shareholders Non- controlling interest Total equity # $ $ $ $ $ $ $ $ Opening Balance - August 31, 2025 21,892,483 210,787 43,147 2,949 (894) (11,070) 244,919 6,915 251,834 Share-based compensation expense — — 1,698 — — — 1,698 — 1,698 Acquisition of Thunderbird (Note 4 (b)) 5,857,979 47,743 307 — — — 48,050 — 48,050 Issuance of subordinate voting shares 21,768 213 (213) — — — — — — Repurchase of subordinate voting shares (31,300) (236) — — — — (236) — (236) Net income (loss) and comprehensive income (loss) — — — (275) (12,872) — (13,147) (59) (13,206) Total as of February 28, 2026 27,740,930 258,507 44,939 2,674 (13,766) (11,070) 281,284 6,856 288,140 Blue Ant Media Corporation Interim Consolidated Statements of Changes in Equity (Unaudited) (Expressed in thousands of Canadian dollars, except shares) The accompanying notes are an integral part of these interim condensed consolidated financial statements. Six months ended February 28, 2026 2025 (Revised - Note 2 (c)) $ $ Operating activities Net (loss) income (12,931) (3,742) Adjustments to reconcile net (loss) income to cash flow from operations: Depreciation of property and equipment 968 522 Depreciation of right-of-use assets 2,834 735 Amortization of content rights (Note 5) 36,718 23,891 Amortization of intangible assets 2,577 1,551 Loss on sale of Vendor take-back note (Note 6) 3,139 — Finance expenses, net (Note 14) 1,571 3,991 Share-based compensation (Note 11) 1,698 1,051 Deferred tax expense (Note 15) 29 1,112 Income tax expense (Note 15) 2,706 2,971 Cash income taxes paid (8,401) (4,165) Additions to content rights (Not --- e 5) (29,574) (27,910) Cash flows from operations 1,334 7 Net changes in non-cash working capital balances related to operations (Note 19) (196) 14,881 Net cash (used in) / provided by operating activities 1,138 14,888 Financing activities Bank indebtedness, draws (Note 8) 40,838 3,329 Bank indebtedness, repayment (Note 8) (19,401) (4,355) Production financing, draws (Note 8) 26,174 6,150 Production financing, repayment (Note 8) (40,855) (8,844) Repayment of promissory notes — 115 Cash interest paid (2,103) (2,083) Costs associated with financing transactions — (41) Repayment of lease liability (2,432) (1,000) Cash flows (used in) / provided by financing activities 2,221 (6,729) Investing activities Additions to property and equipment (3,578) (1,263) Additions to intangible assets (1,160) (1,479) Acquisitions of Thunderbird and MagellanTV, net of cash acquired (Note 4) (16,091) — Proceeds from sale of VTB Note (Note 6) 13,562 — Cash flows used in investing activities (7,267) (2,742) Effect of foreign exchange rate changes on cash 178 194 Net (decrease) increase in cash (3,730) 5,611 Cash and cash equivalents, beginning of period 54,477 12,020 Cash and cash equivalents, end of period 50,747 17,631 Blue Ant Media Corporation Interim Consolidated Statements of Cash Flows (Unaudited) (Expressed in thousands of Canadian dollars) The accompanying notes are an integral part of these interim condensed consolidated financial statements. 1. Corporate information and nature of operations Blue Ant Media Corporation (the “Company”) (formerly Boat Rocker Media Inc. “BRMI”) was incorporated in Ontario and is domiciled in Canada. The address of the Company’s registered office and principal place of business is 99 Atlantic Ave, 4th Floor, Toronto, Ontario. On August 1, 2025, the Company acquired Blue Ant Media Inc. (“BAMI”), a corporation incorporated under the Canada Business Corporations Act on December 7, 2010 and domiciled in Canada, through a reverse takeover transaction which was implemented by way of a statutory plan of arrangement under the Canada Business Corporations Act (the “RTO“ or the “Transaction”). Former shareholders of BAMI exchanged their shares for shares of the Company, which resulted in the reverse takeover of the Company by BAMI. On closing of the RTO (the “Closing”), the Company’s fiscal year end, previously December 31, was changed to August 31. As BAMI has been identified for accounting purposes as the acquirer, the Company is considered to be a continuation of BAMI. The Company’s subordinate voting shares resumed trading on the Toronto Stock Exchange on August 7, 2025 under the trading symbol “BAMI”. The Company’s controlling shareholder is the Company’s chief executive officer, Michael MacMillan, who holds approximately 77.3% of the voting rights of the Company as of the date of these consolidated financial statements. The Company’s principal business activities include the creation and exploitation of video content across a range of traditional and digital media platforms. The Company has three reportable segments, as follows: Reportable segment Nature of operations and location Production and Distribution International content production and distribution with operations in London, Los Angeles, Toronto, Vancouver, Halifax, Ottawa, New York, Washington, Singapore and Sydney. Global Channels and Streaming International channel operations in London, Singapore, Sydney, Los Angeles, Miami, Washington and Toronto. Also includes Sm --- art TV advertising operations, based in Toronto. Canadian Media Channel operations in Toronto and media placement across multiple platforms including television, print and consumer shows in Canada. 2. Basis of preparation and statement of compliance (a) Basis of presentation These interim condensed consolidated financial statements are presented in Canadian dollars, which is also the Company’s functional currency. All amounts are expressed in thousands of Canadian dollars, with the exception of per share amounts, which are presented in dollars. Blue Ant Media Corporation Notes to the Interim Condensed Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except per share amounts) (1) The Company has significant subsidiaries in the following locations that have the following functional currencies: Office location Functional currency Canada Canadian dollar United Kingdom US dollar United States US dollar (b) Basis of consolidation The interim condensed consolidated financial statements incorporate the financial statements of the Company and its subsidiaries, which are the entities over which the Company has control. All intra-company transactions, balances, income, and expenses are eliminated in full on consolidation. Consistent with film and television industry practice, the Company utilizes single-purpose entities to manage the costs and funding for its content production projects. For accounting purposes, control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at the date of the acquisition. Changes in the Company’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. (c) Revision of comparative information The Company had a production license agreement in the prior fiscal year that had initially been treated as a sale of owned content with revenue to recorded on acceptance of delivery. In the fourth quarter of fiscal 2025, a review of the license agreement led management to conclude that the production was in fact service in nature. Accordingly, revenue and direct content, production and delivery expenses have been revised in the three and six months ended February 28, 2025 from the amounts previously presented. For the three months ended February 28, 2025, the revision had an impact of increasing revenue by $692 and increasing direct content, production and delivery expenses by $661, for a decrease of $31 to net loss and comprehensive loss attributable to shareholders. For the six months ended February 28, 2025, the revision had an impact of increasing revenue by $2,543 and increasing direct content, production and delivery expenses by $2,430, for a decrease of $113 to net loss attributable to shareholders and an increase of $113 to comprehensive loss attributable to shareholders. In addition to the above, the Company made changes in the classification of certain costs and expenses in the comparative periods of these interim condensed consolidated financial statements. These changes include the reclassification of amounts between: i) direct content, production and delivery expenses, ii) sales, general and administrative expenses, iii) finance expenses --- , iv) transaction and other related costs, and v) current income tax expense. (d) Statement of compliance These interim condensed consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), applicable to the preparation of condensed interim financial statements, including International Accounting Standard (“IAS”) 34, Interim Financial Reporting, and do not include all of the information required for annual financial statements. These interim condensed consolidated financial statements should be read in conjunction with the Company’s annual consolidated financial statements for the year ended August 31, 2025, which have been prepared in accordance with IFRS Accounting Standards (the “annual consolidated financial statements”). These consolidated financial statements were authorized for issuance by the Board of Directors on April 13, 2026. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (2) 3. Summary of material accounting policies and critical accounting estimates and judgments (a) Material accounting policies The Company’s material accounting policy information was presented in Note 3 of the annual consolidated financial statements, and have been consistently applied in the preparation of these interim financial statements. (b) Use of estimates and judgments The preparation of these interim condensed financial statements requires management to make estimates, judgments and assumptions that affect the application of policies and reported amounts. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future estimates. The significant estimates and judgments made by management in the application of the Company’s accounting policies and key sources of estimation uncertainty are consistent with those described in the Company’s consolidated financial statements for the year ended August 31, 2025. (c) Accounting standards and amendments issued but not yet effective IFRS 18, Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements (“IFRS 18”), which will replace IAS 1 as the primary standard for financial statement presentation. The standard aims to enhance the comparability of financial performance by introducing new requirements for categorizing and presenting items in the statement of profit or loss, such as mandatory sub-totals like operating profit. It also updates the statement of cash flows and includes provisions for presenting management-defined performance measures with reconciliations to IFRS compliant figures. Effective from January 1, 2027, IFRS 18 requires restatement of comparative periods and allows earlier adoption. Management is assessing the impact of this new accounting standard. Amendments to IFRS 7 and 9, Class --- ification and Measurement of Financial Instruments In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 aimed at improving the classification and measurement of financial instruments. The recent amendments simplify financial reporting by allowing earlier recognition of liabilities settled via electronic payments, clarifying the assessment of cash flows for basic lending arrangements and refining definitions for non-recourse features and linked instruments. The amendments also introduce more detailed disclosure requirements for fair value changes in equity instruments and mandate reporting of terms that could affect cash flow timings or amounts. The amendment will be effective from January 1, 2026, and entities must apply these amendments retrospectively, with earlier adoption permitted. Management is assessing the impact of this change in the accounting standards, which will be mandatorily effective for the Company’s first quarter reporting for its fiscal year ending August 31, 2027. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (3) 4. Business combinations (a) Reverse Take-over of BRMI On August 1, 2025, the Company completed the Transaction. In connection with the Transaction, the shares of BAMI were exchanged for shares of the Company on the basis of an exchange ratio of 1.25 shares (prior to the share consolidation noted below) of the Company for each share of BAMI. Furthermore, any equity incentive plan (“EIP”) awards and warrants of BAMI issued and outstanding immediately prior to the Closing were subject to the same exchange ratio. Immediately prior to the Closing, the Company completed a share capital reorganization (the “Share Capital Reorganization“), which included a consolidation of its shares and EIP awards issued and outstanding on the basis of one (1) post-consolidation share for 10 pre-consolidation shares. The Share Capital Reorganization also included the exercise of certain fully vested restricted share units (“RSUs”), as well as the assumption of EIP awards issued and outstanding of the Company, which included options, performance-based share units (“PSUs”), deferred share units (“DSUs”) and RSUs. Each non-voting common share of BAMI was exchanged for subordinate voting shares (“SVS”) of the Company, and each special voting share of BAMI was exchanged for multiple voting shares (“MVS”) of the Company, both on a one-for-one basis. Further to the above, 75,000,000 restricted voting shares (“RVS”) were issued at Closing to BAMI’s chief executive officer (“CEO”), Michael MacMillan, for a price of $0.0001 per share which are redeemable at the option of the Company for $8 (the sum total amount for all the RVS shares) and which, because of their nominal economic value, are not included in the basic or fully diluted share count. The RVS and MVS (which each hold the equivalent value of a single SVS, save their vote entitlement) were issued in order to comply with Canadian regulatory rules on Canadian control/ownership. As part of the Transaction, one of the Company’s significant shareholders committed to provide the Company with the following: (a) a commitment for a capital contribution of up to $34,700 dependent on certain performance targets of the Retained Business in the year ending December 31, 2025 and to be paid by March 30, 2026; (b) guarantees for --- a vendor take-back promissory note receivable of $18,000 for the sale of certain production assets to a group of shareholders immediately prior to the Closing of the RTO (the “VTB Note”), and US$2,655 of notes receivable from a former BRMI executive in relation to a prior transaction; and (c) commitment for a period of one year from the Closing, to subscribe for up to $20,000 in any new equity offering of the Company up to a maximum of $60,000. The VTB Note was sold in November 2025 (refer to Note 6) and the committed capital contribution of $34,700 was received in full subsequent to the quarter end. Some IT equipment of BRMI had been damaged as a result of flooding which occurred prior to the Closing. An insurance claim was pursued and settled during the three months ended February 28, 2026 The proceeds received covered the new equipment at replacement cost, which exceeded the carrying value of the damaged equipment, and as a result a gain of $2,988 on settlement was recorded. (b) Acquisition of Thunderbird Entertainment Group Inc. On November 25, 2025, the Company entered into a definitive agreement to acquire 100% of the issued and outstanding common shares of Thunderbird Entertainment Group Inc. ("Thunderbird"). Under the terms of the definitive agreement, Thunderbird shareholders had the option to elect to receive either subordinate voting shares of the Company, cash or a combination of both, subject to proration based on a maximum aggregate cash consideration of $40,000. For each Thunderbird common share, the holder would receive: (i) 0.2165 subordinate voting shares of the Company, (ii) $1.77 in cash, or (iii) a combination thereof. The Company announced the closing of the acquisition of Thunderbird on January 28, 2026 (the “Thunderbird acquisition”) in exchange for an aggregate 5,857,979 subordinate voting shares of Blue Ant and $40,000 in cash. The consideration provided led to goodwill on acquisition. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (4) The acquisition is both strategic and accretive, broadening the Company’s Production and Distribution business. It expands Blue Ant’s financial and operational scale and adds complementary capabilities, enhancing the Company’s ability to develop, package, and monetize content across multiple platforms, as well as adding a library of over 1,000 hours of content, along with established relationships with leading global brands. The following table summarizes the preliminary allocations of the consideration paid and the amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date: Consideration $ Cash paid 40,000 Blue Ant subordinate voting shares issued 47,743 Surviving equity instruments 307 Total consideration 88,050 Fair value of net assets acquired, excluding intangibles 51,599 Identified intangible assets acquired: Content library 4,218 Total identified intangible assets acquired 4,218 Total identifiable net assets acquired 55,817 Goodwill 32,233 Of total transaction costs and other related costs of $7,442 recorded in the Company’s statement of net income (loss) for the six months ended February 28, 2026, $5,007 relates to professional fees, severance, one-time transition and other advisory costs associated with the Thunderbird acquisition. Blue Ant Media Corporation Notes to --- the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (5) The Company has made a preliminary assessment of the fair value of the assets acquired and liabilities assumed as follows, excluding identified intangible assets acquired other than investment in content rights: Net assets acquired Cash and cash equivalents 31,517 Trade and other receivables 73,476 Prepaids and other assets 8,174 Income taxes receivable 4,732 Total current assets 117,899 Property and equipment 2,895 Right-of-use assets 15,364 Investment in content rights 28,013 Other long-term assets 2,080 Deferred tax assets 8,793 Total long-term assets 57,145 Total assets 175,044 Accounts payable and accrued liabilities 47,522 Deferred revenue 38,975 Current portion of lease liability 2,734 Interim production financing 17,795 Income taxes payable 1,208 Total current liabilities 108,234 Lease liability 12,630 Deferred tax liabilities 2,581 Total liabilities 123,445 Net Assets 51,599 The numbers reported above are provisional and are subject to change, as management will be in the process of finalizing the allocation of the purchase price, which includes an assessment of all acquired intangible assets, for a period of up to one year from the acquisition date. Management expects there will be identified intangible assets relating to trademarks and customer relationships that would result in a reduction of goodwill, and that such reduction could be material. The following table reflects the Company’s proforma revenue and net income (loss) as if the acquisition of Thunderbird had occurred on September 1, 2025: Combined entity Revenue 206,335 Net income / (loss) (22,506) Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (6) The following table shows the financial results of Thunderbird included in the Company’s consolidated statement of net (loss) income for the three and six months ended February 28, 2026: Jan 28 - Feb 28, 2026 $ Revenue 10,060 Net loss (614) (c) Acquisition of MagellanTV On October 2, 2025, the Company acquired MagellanTV, LLC and Alliant Content, LLC (together, “MagellanTV”), a digital streaming company that delivers factual content to consumers across the globe. The assets and business of MagellanTV have been included in the Company’s Global Channels and Streaming reporting segment as of the acquisition date. The MagellanTV acquisition expands the Company’s Channels and Streaming business, as MagellanTV brings an established Subscription Video on Demand (“SVOD”) platform, as well as Advertising-based Video on Demand (“AVOD”) and Free Ad-Supported Streaming Television (“FAST”) channels, broadening the Company’s reach and monetization across multiple distribution windows. The Company has made a preliminary assessment of the fair value of the assets acquired and liabilities assumed as follows, excluding identified intangible assets acquired: Net assets acquired (liabilities assumed) $ Cash 93 Trade and other receivables 1,719 Total current assets 1,812 Right-of-use assets 249 Intangible assets - library 81 Total long-term assets 330 Total assets 2,142 Accounts payable and accrued liabilities 2,169 Current portion of lease liability 104 Deferred revenue 748 Total current liabilities 3,021 Lea --- se liability 143 Total liabilities 3,164 Net liabilities assumed, excluding identified intangibles acquired (1,022) Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (7) The following table shows the financial results of MagellanTV included in the Company’s consolidated statement of net loss for the six months ended February 28, 2026: Oct. 2, 2025 - Feb 28, 2026 $ Revenue 5,047 Net income 272 The consideration provided led to goodwill on acquisition. Refer to the following table for the breakdown of consideration paid and preliminary calculation of goodwill: Consideration $ Cash paid 7,352 Consideration deficit (receivable) (237) Deferred cash consideration 5,001 Financial liability 2,501 Total consideration 14,617 Fair value of net liabilities assumed, excluding identified intangibles acquired (1,022) Identified intangible assets acquired: Customer lists 6,393 Trademarks 3,900 Software 905 Total identified intangible assets acquired 11,198 Total identifiable net assets acquired 10,176 Goodwill 4,441 Cash paid on closing of $7,352 to former MagellanTV shareholders was determined as US$6,000 net of certain of MagellanTV’s liabilities assumed by the Company on closing, as well as net of transaction costs paid by the Company on behalf of the former shareholders of MagellanTV. A consideration deficit of $237 was also recorded, as the initial closing cash paid exceeded the final calculated closing cash to be paid by the Company. After the closing of the transaction, the remaining consideration is a total of US$6,000, of which US$2,000 million is to be paid in cash on each of the first two anniversary dates of the transaction’s closing, and US$1,000 is to be paid in either cash or its equivalent value in the Company’s subordinate voting shares on each of the first two anniversary dates of the transaction’s closing. These amounts have been respectively recorded as deferred cash consideration and a financial liability, and discounted to net present value using a US borrowing rate of 7.25%. Of the identified intangible assets acquired, customer lists relate to MagellanTV’s FAST and SVOD revenue streams, and have an expected life of 10 years. Trademarks are considered an indefinite-life intangible asset and software has an expected life of 3 years. Goodwill acquired reflects the expected growth of the Company’s AVOD, SVOD and FAST channels, including MagellanTV, as a result of the acquisition, along with synergies to be realized in its Global Channels and Streaming reporting segment and the value of the assembled workforce acquired. Goodwill from the acquisition is Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (8) included in the Company’s Global Channels and Streaming group of cash generating units (“CGUs”) for reporting and impairment testing purposes. Of total transaction costs and other related costs of $7,442 recorded in the Company’s statement of net loss for six months ended February 28, 2026, $501 relates to legal and advisory costs for the MagellanTV acquisition. 5. Investment in content rights Acquired program rights Owned content Total $ $ $ For the six months ended February 28, 2025 Opening net book value 32,563 64,1 --- 80 96,743 Additions, net 8,948 18,962 27,910 Amortization (9,142) (14,749) (23,891) Expense of development costs — (53) (53) Foreign exchange 1,126 1,011 2,137 Net book value 33,495 69,351 102,846 At February 28 2025 Cost 96,782 100,263 197,045 Accumulated amortization (63,287) (30,912) (94,199) Net book value 33,495 69,351 102,846 Acquired program rights Owned content Total $ $ $ For the six months ended February 28, 2026 Opening net book value 35,086 84,020 119,106 Additions, net 10,716 18,858 29,574 Additions - acquisition (Note 4) 672 27,341 28,013 Amortization (8,732) (27,986) (36,718) Expense of development costs — (343) (343) Foreign exchange (205) (79) (284) Net book value 37,537 101,811 139,348 At February 28, 2026 Cost 116,928 146,595 263,523 Accumulated amortization (79,410) (44,765) (124,175) Net book value 37,518 101,830 139,348 During the six months ended February 28, 2026, included in additions is $700 of interest capitalized to investment in content - owned content (six months ended February 28, 2025 - $772). Additions to investment in content during the six months ended February 28, 2026, have been reduced by $5,024 (six months ended February 28, 2025 - $5,370) in respect of production tax credits. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (9) 6. Other long-term receivables February 28, 2026 August 31, 2025 $ $ VTB Note from business combination (a) — 16,600 Other notes receivable from business combination (b) 8,321 8,321 Total notes receivable 8,321 24,921 Less: Current portion of notes receivable included in Trade and other receivables (3,646) (6,646) Long-term notes receivable 4,675 18,275 Long-term tax credit receivables 4,086 13,971 Lease deposits and other 2,451 445 Total other long-term amounts receivable 11,212 32,691 (a) The VTB Note for $18,000 for the sale of certain production assets to a group of shareholders immediately prior to the Closing of the RTO was included in the assets acquired resulting from the Transaction. The VTB Note is repayable in amounts of $3,000 annually from the Closing of the RTO, with an additional $1,000 in deemed interest payable included with the final payment. The VTB Note was recorded at fair value, which was its calculated net present value using a discount rate of 2.99%, reflecting the guarantee of one of the Company’s significant shareholders, with interest income being accreted over the 6-year term. In November 2025, the VTB Note was sold to a third party for net proceeds of $13,562. The VTB Note was recorded at an amount of $16,701 at the time of disposal, resulting in a loss of $3,139 at the time of sale and recorded in the Company’s statement of net (loss) income as a loss on sale of assets. A gain on settlement of an insurance claim was also recorded in (gain) loss on sale of assets in the six months ended February 28, 2026 (see Note 4 (a)). (b) Notes receivable of $8,321 including accrued interest, from a former BRMI executive in relation to a prior transaction, were included in the assets acquired resulting from the Transaction. The $3,646 (US$2,655) current portion of these notes receivable, is guaranteed by one of the Company’s shareholders (also a former BRMI shareholder - see Note 4 (a)). The long-term notes receivable are interest-bearing and guaranteed by the former executive’s shareholdings in The --- Initial Group Global, LLC. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (10) 7. Accounts payable and accrued liabilities February 28, 2026 August 31, 2025 $ $ Accounts payable 24,936 20,799 Accrued liabilities 69,308 33,518 Royalty accruals 4,078 4,536 Content acquisition accruals 2,948 3,837 Other payables 2,846 2,095 Total accounts payable and accrued liabilities 104,116 64,785 8. Bank indebtedness and interim production financing Interim production financing February 28, 2026 August 31, 2025 $ $ Outstanding 54,347 50,889 Accrued interest 779 1,255 Balance 55,126 52,144 Prior period amounts in the table above have been restated to conform to current period presentation. Bank indebtedness February 28, 2026 August 31, 2025 $ $ Outstanding 42,311 20,573 Accrued interest 416 132 Unamortized financing costs (1,062) (1,363) Balance 41,665 19,342 Less: Current portion (8,441) (14,587) Non-current 33,224 4,755 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (11) Bank indebtedness On August 1, 2025, the Company entered into the second amended and restated credit agreement (“2025 Credit Agreement”) with its existing syndicated lenders. The 2025 Credit Facility is summarized below. • General purpose credit facility (“Facility A”) The Company’s revolving credit facility is $30,000, where advances under this facility are for working capital and general corporate purposes. • Acquisition credit facility (“Facility C”) The Company’s acquisition revolving credit facility is $55,000. Advances under Facilities A and C may be drawn in Canadian dollars as a either prime rate loan or Canadian Overnight Repo Rate Average (“CORRA”) loan, or in U.S. dollars as either a base rate loan or Secured Overnight Financing Rate (“SOFR”) loan. Amounts drawn under each respective facility will bear interest at the applicable reference rate plus an applicable margin ranging from 1.00% to 2.25% per annum for prime rate or base rate loans, and 2.00% to 3.25% per annum for CORRA or SOFR rate loans dependent on the Company’s leverage ratio. A standby fee is payable on the unutilized amount of this facility. Principal repayments on Facilities C are as follows: 3.55% of the principal amount of each advance, payable in quarterly installments and the remainder payable on the 2025 Credit Facility’s maturity date of December 6, 2027. The facility permits voluntary repayments without payment of any penalty or fee. Under the terms of the 2025 Credit Agreement, the Company is required to maintain the following ratios at all times: • Funded debt to EBITDA shall not be greater than 3.00 to 1.00 • Fixed charge coverage ratio shall not be less than 1.15 to 1.00 • Liquidity ratio shall not be less than 1.10 to 1.00 The Company was in compliance with all financial covenants as described at each date presented above and in both the six months ended February 28, 2026 and the year ended August 31, 2025. The indebtedness is secured by a guarantee executed by the Company and each of its subsidiaries. Interim production financing As at February 28, 2026, interim production financing includes the following facilities: • Production revolving loan under 2025 Credit Agreement Th --- is is a revolving credit facility with a total limit of $70,000 under which advances may be used to provide interim production financing for eligible productions (“Facility B”). This facility is secured by a guarantee from the Company up to a maximum principal amount of $5,000, as well as being secured by specific production financing, licensing contracts and film tax credits receivables. • Production revolving loan with respect to interim financing for service productions As part of the 2025 Credit Agreement, the Company entered into a revolving credit agreement specifically for interim financing on future service productions with a limit of up to $20,000. No amounts were drawn from this facility as of November 30, 2025. This facility is secured by specific production financing, licensing contracts and film tax credits receivables. • Former BRMI revolving credit facility Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (12) On August 1, 2025, on the Closing of the Transaction, the Company assumed a $20,000 revolving credit facility (the “Borrowing Base Facility”) secured by receivables such as production service tax credits. The Borrowing Base Facility is repayable on demand. Interest on amounts drawn is calculated at prime plus 0.50%, payable monthly in arrears. • Single purpose loans with respect to Proper Television and Insight Productions On the Closing of the RTO, the Company assumed a number of single-purpose production-specific interim financing loans and a general security agreement in respect to Proper Television and Insight Productions in the Retained Business. These loans are secured by production tax credits. 9. Deferred revenue February 28, 2026 August 31, 2025 $ $ Production contract revenue 57,161 29,065 Distribution license revenue 5,736 2,560 Consumer shows revenue 7,094 2,376 Other deferred revenue 2,388 3,959 Total 72,379 37,960 Less: Current portion (68,550) (35,709) Long-term deferred revenue 3,829 2,251 Movements in deferred revenue balances in the six months ended February 28, 2026 and year ended August 31, 2025 were as follows: Six months ended February 28, 2026 Year ended August 31, 2025 $ $ Opening balance 37,960 20,685 Additions through business acquisition (Note 4) 39,723 22,284 Cash collections 105,218 128,612 Revenue recognized (110,528) (133,747) Reclassification 25 (12) Foreign exchange (19) 138 Closing balance 72,379 37,960 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (13) 10. Equity Authorized Outstanding Share capital February 28, 2026 $ Subordinate voting shares Unlimited 27,740,930 258,499 Special voting shares 12.5 12.5 — Restricted voting shares 75,000,000 75,000,000 8 Total 102,740,942.5 258,507 Authorized Outstanding Share capital August 31, 2025 $ Subordinate voting shares Unlimited 21,892,483 210,779 Special voting shares 12.5 12.5 — Restricted voting shares 75,000,000 75,000,000 8 Total 96,892,496 210,787 In the three months ended February 28, 2026, the Company issued 5,857,979 subordinate voting shares as partial consideration for the acquisition of Thunderbird (refer to Note 4 (b)). Additionally, in the six months ended February 28, 2026, the Company issued 21,768 subord --- inate voting shares on the exercise of restricted share units (refer to Note 11). Normal Course Issuer Bid On October 16, 2025, the Company announced that the Toronto Stock Exchange (“TSX”) approved the Company's intention to proceed with a Normal Course Issuer Bid (the “NCIB”) for its subordinate voting shares as appropriate opportunities arise from time to time. The NCIB commenced on October 20, 2025 and will expire October 19, 2026, allowing the Company to purchase up to 1,094,714 of its subordinate voting shares for cancellation. Under the NCIB, the Company commenced an Automatic Securities Purchase Plan (“ASPP”) with a third party broker to repurchase an aggregate maximum of $500 in the Company’s subordinate voting shares between December 2, 2025 and April 15, 2026, with a daily automatic purchase restriction of 1,000 subordinate voting shares, the maximum permitted by the TSX. During the three and six months ended February 28, 2026, the Company repurchased and cancelled an aggregate 31,300 subordinate voting shares at a cost of $236 under the NCIB through the ASPP. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (14) 11. Share-based payments On Closing of the RTO (note 4), the Company assumed awards granted under the equity incentive plan of the acquired company (the “Acquired EIP”) in the form of stock options, restricted share units (“RSUs”), and performance share units (“PSUs”) granted to employees and deferred share units (“DSUs”) granted to independent directors. The fair value of stock options was determined using a Black-Scholes pricing model and is recognized as share-based compensation expense on a graded vesting basis over the vesting periods of the options. The fair value of RSUs granted was determined to be the share price on the grant date and is recognized as share-based compensation expense on a graded vesting basis over the vesting periods of the units. The fair value of DSUs granted was determined to be the share price on the grant date and was recognized as share-based compensation expense on the grant date, as the awards were fully vested on such date. The fair value of the PSUs granted was recognized as share-based compensation expense on a straight-line basis over the vesting periods of the PSUs. All awards issued and outstanding under the Acquired EIP are exercisable for subordinate voting shares of the Company on a one-for-one basis. Further to the above, all awards issued under the BAMI Equity Incentive Plan (“BAMI EIP”) were subject to a 25% pre-Closing premium and then a 10:1 share consolidation on Closing, exercisable for subordinate voting shares of the Company on a one-for-one basis. The Acquired EIP and BAMI EIP were combined into the Company Equity Incentive Plan (“Company EIP”) on the Closing of the RTO. Employee stock option plan The following summarizes the movements in stock options of the Company EIP for the six months ended February 28, 2026: Options Weighted average exercise price # $ Options outstanding – August 31, 2025 1,489,896 12.68 Granted 260,419 14.16 Expired (115,961) 14.37 Options outstanding - February 28, 2026 1,634,354 12.79 Stock options granted in the six months ended February 28, 2026 included 212,600 awards, replacing options previously issued by Thunderbird prior to the acquisition by the Company. These number and st --- rike price of the replacement awards were subject to the Closing exchange ratio of 21.65%, with the average strike price of the awards granted being $15.46. The other 47,819 stock options granted under the Company EIP in the six months ended February 28, 2026 used the Black-Scholes option pricing model with the assumptions to determine the calculation of share-based compensation expense: Fair value of options at grant date $3.39 to $4.47 Share price at grant date $8.23 to $8.23 Exercise price $8.39 to $8.39 Risk-free interest rate 2.79% to 3.14% Volatility factor of the expected market price of the Company’s shares 55.17% to 59.32% Expected option life 3 years to 6 years Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (15) The following summarizes information about stock options outstanding under the Company EIP as at February 28, 2026: Exercise price Number outstanding Weighted average remaining life Number exercisable $ # years # 2.31 2,164 0.03 2,164 8.00 726,875 3.63 779,000 8.39 47,819 9.76 — 8.83 4,330 0.16 4,330 9.20 750 8.08 250 9.24 7,577 0.02 7,577 12.00 251,750 5.53 215,500 13.86 6,495 0.19 6,495 14.19 113,662 1.03 113,662 14.79 6,494 2.04 6,494 15.71 6,495 0.16 6,495 16.17 28,145 0.18 28,145 18.00 373,375 6.61 202,500 19.73 8,660 0.05 8,660 22.64 28,578 2.14 28,578 57.60 2,402 0.84 2,402 68.50 384 5.89 384 74.90 11,206 2.29 11,206 90.00 7,193 4.84 7,193 1,634,354 4.63 1,431,035 Restricted Share Units The following summarizes the movements in RSUs of the Company EIP for the six months ended February 28, 2026: RSUs Weighted average grant date fair value # $ RSUs outstanding - August 31, 2025 377,338 19.65 Granted 203,881 8.15 Exercised (21,768) 24.23 Forfeited (10,922) 8.23 RSUs outstanding - February 28, 2026 548,529 16.21 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (16) Deferred Share Units The following summarizes the movements in DSUs of the Company EIP for the six months ended February 28, 2026: DSUs Weighted average grant date fair value # $ Deferred Share Units DSUs outstanding - August 31, 2025 36,443 11.78 Granted 55,509 8.12 DSUs outstanding - February 28, 2026 91,952 9.57 Performance Share Units There were no Equity Incentive Plan PSU transactions during the six months ended February 28, 2026. As at February 28, 2026 and August 31, 2025, there were 10,110 PSUs outstanding with a weighted average grant date fair value of $15.60. The following summarizes the share-based compensation expense for the periods presented: Three months ended February 28, Six months ended February 28, 2026 2025 2025 2024 $ $ $ $ DSUs and other director's compensation 394 50 444 100 Options 177 161 346 440 RSUs 870 255 908 511 1,441 466 1,698 1,051 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (17) 12. Revenue The following is disaggregated revenues by segment and type: Three months ended February 28, 2026 Production and Distribution Global Channels and Streaming Canadian Media Total $ $ $ $ Subscriber — 6,029 5,790 11,819 Promotion and advertising — 15,260 3, --- 368 18,628 Production services 23,209 — — 23,209 Proprietary production and distribution 14,197 781 280 15,258 Consumer shows, publishing and other — — 1,047 1,047 37,406 22,070 10,485 69,961 Three months ended February 28, 2025 Production and Distribution Global Channels and Streaming Canadian Media Total (Revised - Note 2 (c)) $ $ $ $ Subscriber — 4,726 6,494 11,220 Promotion and advertising — 11,968 4,417 16,385 Production services 742 — — 742 Proprietary production and distribution 8,085 662 161 8,908 Consumer shows, publishing and other — 11 1,111 1,122 8,827 17,367 12,183 38,377 Six months ended February 28, 2026 Production and Distribution Global Channels and Streaming Canadian Media Total $ $ $ $ Subscriber — 11,484 12,005 23,489 Promotion and advertising — 32,129 7,690 39,819 Production services 45,949 — — 45,949 Production licensing and distribution 34,835 1,168 974 36,977 Consumer shows, publishing and other — — 4,191 4,191 80,784 44,781 24,860 150,425 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (18) Six months ended February 28, 2025 Production and Distribution Global Channels and Streaming Canadian Media Total (Revised - Note 2 (c)) $ $ $ $ Subscriber — 9,474 13,259 22,733 Promotion and advertising — 28,064 10,100 38,164 Production services 2,592 — — 2,592 Production licensing and distribution 18,334 918 193 19,445 Consumer shows, publishing and other — 11 4,139 4,150 20,926 38,467 27,691 87,084 The following is the Company’s disaggregated revenue attributable to each geographic region, based on the location of the transacting subsidiary (for clarity, not based on the location of the customer or business): Three months ended February 28, Six months ended February 28, 2026 2025 2026 2025 (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Canada 50,641 23,339 115,789 56,253 United States 1,298 3,828 11,978 10,992 United Kingdom 18,022 11,210 22,658 19,839 69,961 38,377 150,425 87,084 In the three and six months ended February 28, 2026, the Company's top five customers accounted for approximately 33% and 32% (2025 - 35% and 30%) of total revenue, respectively. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (19) 13. Expenses by nature The following sets out the expenses by nature for the three and six months ended February 28, 2026 and 2025: Three months ended February 28, Six months ended February 28, 2026 2025 2026 2025 (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Production service and other production costs 21,687 5,024 44,286 7,699 Amortization of content rights 14,285 7,682 36,718 23,891 Salaries and benefits 13,156 10,191 24,852 20,494 Smart TV publishing costs 6,671 5,432 15,543 11,109 Transaction and other related costs 4,902 2,065 7,442 2,133 Producer royalties and versioning 3,291 1,840 6,293 4,168 Depreciation and intangible amortization 3,668 1,446 6,379 2,808 Share-based compensation (Note 11) 1,441 466 1,698 1,051 Events and merchandise costs 537 569 2,056 2,170 Office expenses 2,720 1,566 4,727 2,797 Other finance expenses, net (Note 14) 1,131 1,972 1,571 3,991 Professional fees 1,432 755 2,862 1,498 Marketing expenses 1,053 510 2,005 1,415 Restructuring costs 1,070 (3) 1,858 ( --- 3) Facilities expenses 741 334 1,162 620 Travel expense 310 224 621 492 Insurance expense 254 129 482 258 Loss on warrants — 152 — 152 (Gain)/loss on sale of other assets (Notes 4 (a) and 6 (a)) (2,988) — 66 — 75,361 40,354 160,621 86,743 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (20) 14. Finance expenses, net The following finance income and expenses were incurred: Three months ended February 28, Six months ended February 28, 2026 2025 2026 2025 (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Interest expense and standby fees: Interest expense, lease liability 739 140 1,074 284 Interest on bank indebtedness (Note 8) 358 571 563 1,218 Interest on promissory note 59 115 124 247 Interest on interim financing (Note 8) 817 401 1,199 842 Interest capitalized (Note 5) (487) (348) (700) (772) Standby fee on bank loan 172 57 188 113 1,658 936 2,448 1,932 Amortization on deferred financing cost related to: Bank indebtedness (Note 8) 151 151 301 299 Other Other charges 280 165 460 270 431 316 761 569 Total finance expense 2,089 1,252 3,209 2,501 Interest Income Bank deposits (216) (35) (982) (83) Other interest income (149) (37) (306) (37) Total finance income (365) (72) (1,288) (120) Currency loss / (gain) Unrealized (341) 479 (6) 1,443 Realized (252) 313 (344) 167 (593) 792 (350) 1,610 Finance expense, net 1,131 1,972 1,571 3,991 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (21) 15. Income tax Three months ended February 28, Six months ended February 28, 2026 2025 2026 2025 (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Current income tax expense 1,170 437 2,706 2,971 Deferred income tax expense (recovery) (389) 2,546 29 1,112 Income tax expense 781 2,983 2,735 4,083 The provision for income tax differs from the amount that would have resulted by applying the combined Canadian federal and Ontario statutory income tax rate of 26.5%. The income tax in each period reflects the mix of taxing jurisdictions in which pre-tax income and losses were recognized. For the three and six months ended February 28, 2026, the effective tax rate was (14)% and (27)% (2025 - (151)% and 1197%), respectively. Items impacting the effective rate include non-deductible items such as share-based compensation expense, the different statutory rates in the taxing jurisdictions, and the continued derecognition of certain deferred tax assets as discussed below. In assessing the value of deferred tax assets, the Company's management considers if it is probable that taxable profit will be available against which the deductible temporary differences and unused tax losses can be utilized. Available evidence considered by the Company includes, but is not limited to, the Company's historic operating results and projected future operating results which take into account changing business and market circumstances. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (22) 16. Financial instruments, capital management and financial risks Fair value The fair values of cash, trade and other re --- ceivables and accounts payable and accrued liabilities, and promissory notes payable approximate their carrying values due to the short-term nature of the expected cash flows. The fair value of the bank indebtedness approximates its carrying value as the interest rates on the debt are at variable market rate. Contingent consideration was valued based on achievement of historical adjusted EBITDA targets and achievement of projected EBITDA targets for the period-ended February 28, 2026 and August 31, 2025, respectively. The 2022 Put Option was valued with reference to the expected payout should it be exercised, based on a methodology agreed on in the original agreement in which the option arose. Changes to the underlying assumptions and observable inputs did not result in significant changes in fair value. February 28, 2026 August 31, 2025 Fair value hierarchy Carrying value Fair value Carrying value Fair value $ $ $ $ Financial assets not measured at fair value VTB Note receivable (Note 6) Level 3 — — 16,600 16,600 Other notes receivable (Note 6) Level 3 8,321 8,321 8,321 8,321 Financial liabilities measured at fair value Contingent consideration Level 3 220 220 276 276 2022 Put Option Level 3 1,300 1,300 1,300 1,300 Financial liabilities not measured at fair value Promissory note Level 2 4,660 4,660 4,536 4,536 Insight note payable Level 2 404 404 1,181 1,181 MagellanTV deferred cash consideration and financial liability (Note 4) Level 2 7,587 7,587 — — Credit risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to trade and other receivables and cash. The Company mitigates this risk by monitoring the creditworthiness of its customers and dealing with reputable financial institutions. Management has assessed these amounts and the entities from which the funds are held and has determined that the risk of loss is remote. The top five customers represented approximately 20% (as at August 31, 2025 - 32%) of the Company’s trade receivables as at February 28, 2026. The amounts disclosed in the consolidated statement of financial position are net of an allowance for doubtful accounts of $125 (as at August 31, 2025 - $87), estimated by management of the Company based on previous experience and the current economic environment using the expected credit loss model. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (23) As at February 28, 2026 and August 31, 2025, the aging of trade receivables was: February 28, 2026 August 31, 2025 $ $ Trade receivables Current 10,163 26,146 Aged 31-60 days 12,614 2,390 Aged 61-90 days 1,883 3,177 Aged greater than 90 days 8,717 5,884 Total trade receivables 33,377 37,597 Note receivables 4,246 7,246 Unbilled receivables 6,947 6,658 Accrued receivables 17,642 9,779 Tax credits and funding receivable 124,005 58,971 Other receivables — 50 186,217 120,301 Allowance for doubtful accounts (125) (87) Trade and other receivables, end of the period 186,092 120,214 Federal and provincial film and television tax credits receivable (“tax credits”) from government agencies are subject to audit by the applicable government agency. Management believes that the net amounts recorded are fully collectible. The Company adjusts amounts receivable from government --- agencies quarterly for any known differences arising from internal or external audits of these balances. As at February 28, 2026, a portion of tax credits and funding receivable balance, amounting to $37,598 (August 31, 2025 - $4,984) is repayable to customers and corresponds with an equivalent balance within accounts payable and accrued liabilities. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (24) 17. Related party transactions During the three and six months ended February 28, 2026 and 2025, the Company entered into transactions with related parties. Transactions entered into during the three and six months ended February 28, 2026, and trading balances outstanding at February 28, 2026 are as follows: Three months ended February 28, 2026 Six months ended February 28, 2026 As at February 28, 2026 Sales Purchase Sales Purchase Due from $ $ $ Advertising services provided to entities of which a director is a member of key management 739 — 1,799 — 613 Rent paid to a company owned by the controlling shareholder — 27 — 55 — Note receivable from a director — — — — 600 739 27 1,799 55 1,213 Transactions entered into during the three and six months ended February 28, 2025, and trading balances outstanding at February 28, 2025 are as follows: Three months ended February 28, 2025 Six months ended February 28, 2025 As at February 28, 2025 Sales Purchase Sales Purchase Due from $ $ $ Advertising services provided to entities of which a director is a member of key management 927 — 2,283 — 743 Rent paid to a company owned by the controlling shareholder — 27 — 55 — Note receivable from a director — — — — 600 927 27 2,283 55 1,343 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (25) 18. Commitments The Company has entered into agreements to acquire programs or program rights. The total amount committed to acquiring programs or program rights to be delivered in future periods is approximately $19,044 (August 31, 2025 - $18,908). The period in which these commitments will become payable will depend in part on the timing of the delivery to the Company of the acquired programs or program rights. Management estimates the commitments will become payable as follows: Total $ Remainder of fiscal 2026 14,379 2027 4,665 2028 and thereafter — 19,044 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (26) 19. Supplemental cash flow information Operating activities The net change in non-cash working capital balances related to operations consists of the following: Six months ended February 28, 2025 2024 $ $ Decrease in trade and other receivables 1,743 19,910 Increase in prepaid and other assets (2,942) (1,986) Decrease in income taxes receivable 9,951 — Decrease in accounts payable and accrued liabilities (10,567) (6,730) (Decrease) increase in deferred revenue (5,117) 7,439 Increase (decrease) in other liabilities 6,736 (3,752) (196) 14,881 Supplemental cash flow information Interest received 1,205 335 Interest paid 2,103 2,071 Income taxes paid, net of refunds 8,794 4,164 Financing ac --- tivities The net change in cash and non-cash liabilities arising from financing activities consists of the following, for the six months ended February 28, 2026: Bank indebtedness Interim production financing Promissory note Total $ $ $ $ Balance, August 31, 2025 19,342 52,144 4,536 76,022 Net cash (payments) / draws 21,437 (14,681) — 6,756 Total financing cash flow / (outflow) 21,437 (14,681) — 6,756 Amortization of deferred financing costs 301 — — 301 Net change in accrued interest 585 (132) 124 577 Total financing non-cash inflow / (outflow) 886 (132) 124 878 Non-cash additions through acquisition (Note 4) — 17,795 — 17,795 Balance, February 28, 2026 41,665 55,126 4,660 101,451 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (27) 20. Earnings (loss) per share The following table reconciles the denominator used to calculate earnings per share (share numbers shown in thousands): Three months ended February 28, Six months ended February 28, 2026 2025 2025 2024 (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Net (loss) income attributable to shareholders (6,030) (4,822) (12,872) (3,723) Weighted average number of shares - Basic 26,175 16,069 24,228 16,064 Effect of dilutive securities — — — — Weighted average number of common shares - Diluted 26,175 16,069 24,228 16,064 Net income per share - Basic (0.23) (0.30) (0.53) (0.23) Net income per share - Diluted (0.23) (0.30) (0.53) (0.23) Shares in the table above include subordinate voting shares in the current year period and non-common voting shares in the comparative period. The comparative period share numbers including the effect of dilutive securities have been adjusted to reflect the share exchange ratio and Share Capital Reorganization described in Note 4 (a). For the three and six months ended February 28, 2026 and 2025, the diluted loss per share equals the basic loss per share, as the effect would be anti-dilutive. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (28) 21. Segment reporting The chief operating decision maker (CODM) evaluates segment performance at the segment profit level, which excludes depreciation, intangible asset amortization and impairment, share-based compensation, finance expenses and restructuring and acquisition related expenses. The CODM is the Chief Executive Officer. In the third quarter of the year ended August 31, 2025, the Company underwent a reorganization of its senior management structure. As a result, the Company's internal reporting and monitoring of performance have been revised to align with the new management responsibilities, in line with the reporting structure under the CODM. Consequently, in accordance with IFRS 8, Operating Segments, the Company has redefined composition of its reportable segments. Under the revised reportable segments, the Smart TV advertising operations and the Canadian FAST channels business have been moved from Canadian Media to Global Channels and Streaming. The following summarizes segment performance for the three months ended February 28, 2026: Production and Distribution Global Channels and Streaming Canadian Media Total of Segments $ $ $ $ Revenues 37,406 22,070 10,485 69,961 Direct cont --- ent, production and delivery expenses 30,029 13,215 4,240 47,484 Sales, general and administrative expenses 7,507 3,964 4,029 15,500 Segment profit (loss) (130) 4,891 2,216 6,977 Corporate general and administrative costs 3,153 Share-based compensation 1,441 Depreciation and amortization 3,668 Finance expenses, net 1,131 Gain on sale of assets (2,988) Acquisition related expenses 4,902 Restructuring costs 1,070 Loss before income taxes (5,400) Current income tax expense 1,170 Deferred income tax expense (389) Net loss for the period (6,181) Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (29) The following summarizes segment performance for the three months ended February 28, 2025: Production and Distribution Global Channels and Streaming Canadian Media Total of Segments (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Revenues 8,827 17,367 12,183 38,377 Direct content, production and delivery expenses 5,562 10,523 5,288 21,373 Sales, general and administrative expenses 3,786 3,598 4,524 11,908 Segment profit (loss) (521) 3,246 2,371 5,096 Corporate general and administrative costs 975 Share-based compensation 466 Depreciation and amortization 1,446 Finance expenses, net 1,972 Loss on contingent considerations 152 Acquisition related expenses 2,065 Restructuring costs (3) Loss before income taxes (1,977) Current income tax expense 437 Deferred income tax expense 2,546 Net loss for the period (4,960) Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (30) The following summarizes segment performance for the six months ended February 28, 2026: Production and Distribution Global Channels and Streaming Canadian Media Total of Segments $ $ $ $ Revenues 80,784 44,781 24,860 150,425 Direct content, production and delivery expenses 68,442 28,504 9,664 106,610 Sales, general and administrative expenses 12,655 8,069 8,196 28,920 Segment profit (loss) (313) 8,208 7,000 14,895 Corporate general and administrative costs 6,077 Share-based compensation 1,698 Depreciation and amortization 6,379 Finance expenses, net 1,571 Loss on sale of assets 66 Acquisition related expenses 7,442 Restructuring costs 1,858 Loss before income taxes (10,196) Current income tax expense 2,706 Deferred income tax recovery 29 Net loss for the period (12,931) Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (31) The following summarizes segment performance for the six months ended February 28, 2025: Production and Distribution Global Channels and Streaming Canadian Media Total of Segments (Revised - Note 2 (c)) (Revised - Note 2 (c)) $ $ $ $ Revenues 20,926 38,467 27,691 87,084 Direct content, production and delivery expenses 17,679 21,863 11,203 50,745 Sales, general and administrative expenses 7,318 7,045 9,284 23,647 Segment profit (loss) (4,071) 9,559 7,204 12,692 Corporate general and administrative costs 2,219 Share based compensation 1,051 Depreciation and amortization 2,808 Finance expenses, net 3,991 Loss on warrants 152 Acquisition related expenses 2,133 Restructuring costs (3) Income be --- fore taxes 341 Current income tax expense 2,971 Deferred income tax expense 1,112 Net loss for the period (3,742) The following summarizes segment non-current assets as at February 28, 2026 and August 31, 2025: As at February 28, 2026 Production and Distribution Global Channels and Streaming Canadian Media Total Investment in content rights 69,938 36,754 32,656 139,348 Intangible assets 9,991 13,234 51,905 75,130 Goodwill 64,842 10,394 — 75,236 As at August 31, 2025 Production and Distribution Global Channels and Streaming Canadian Media Total Investment in content rights 47,325 39,221 32,560 119,106 Intangible assets 7,059 1,970 52,330 61,359 Goodwill 31,898 6,760 — 38,658 Non-current assets by geographic region are as follows: As at February 28, 2026 As at August 31, 2025 $ $ Non-current assets by geographic region: Canada 351,310 288,577 United States 11,126 263 Untied Kingdom 636 110 363,072 288,950 Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (32) 22. Comparative information In addition to those amounts noted in Note 2 (c), certain comparative financial information within these financial statements has been changed to conform to current presentation. Inter-segment revenue was previously separately disclosed in the revenue note, and inter-segment revenue and related operating expenses were previously separately disclosed in segment reporting, with the eliminations broken out. Current presentation eliminates such amounts within the respective disclosures. Blue Ant Media Corporation Notes to the Consolidated Financial Statements Three and six months ended February 28, 2026 and 2025 (Expressed in thousands of Canadian dollars, except shares and per share amounts) (33)