SEDAR Interim Financial Statements

October 12, 2022 Condensed Interim Consolidated Financial Statements (Audited - Expressed in Canadian dollars) Q3 w w w .avantbrands.ca | tsx: avnt | Three and Nine Months Ending August 31, 2022 April 14, 2026 Condensed Interim Consolidated Financial Statements Three Months Ended February 28, 2026 Q1 w w w .avantbrands.ca | tsx: avnt | (Unaudited - Expressed in Canadian Dollars) 0 MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORTING The accompanying condensed consolidated interim financial statements of Avant Brands Inc. (the “Company”) have been prepared by management in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). Management acknowledges responsibility for the preparation and presentation of the condensed consolidated interim financial statements, including responsibility for significant accounting estimates and the choice of accounting principles and methods that are appropriate to the Company’s circumstances. NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS The Company’s independent auditor has not performed a review of these condensed consolidated interim financial statements in accordance with standards established by the Canadian Institute of Chartered Professional Accountants for a review of interim financial statements by a company’s auditor. AVANT BRANDS INC. Condensed Interim Consolidated Statements of Financial Position As at February 28, 2026 and November 30, 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 3 Nature and continuance of operations (Note 1) Commitments and contingencies (Note 18) Approved on behalf of the Board on April 13, 2026. /s/ Derek Sanders, Director /s/ Tyson Macdonald, Director The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements Note February 28, 2026 November 30, 2025 Assets Current assets Cash $763 $1,485 Trade and other receivables 4 5,185 6,579 Due from related party 16 162 139 Prepaid expenses and deposits 5 342 412 Biological assets 6 4,756 5,635 Inventory 7 6,001 6,590 17,209 20,840 Property, plant and equipment 8 28,129 27,363 Intangible assets 9 940 1,037 Total assets $46,278 $49,240 Liabilities Current liabilities Accounts payable and accrued liabilities $8,548 $8,002 Legal provision 18 100 100 Lease liabilities 10 1,308 1,299 Secured credit facility 11 861 1,182 Convertible debenture B 12 637 1,231 Due to related party 16 1,521 1,032 $12,975 $12,846 Lease liabilities 10 10,032 10,106 Secured credit facility 11 - - Convertible debenture B 12 1,872 1,489 Total liabilities $24,879 $24,441 Shareholders’ equity Share capital 13 110,910 110,910 Contributed surplus 13 11,813 11,779 Accumulated deficit (101,324) (97,890) Total shareholders’ equity 21,399 24,799 Total liabilities and shareholders’ equity $46,278 $49,240 AVANT BRANDS INC. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 4 The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements Note February 28, 2026 February 28, 2025 Revenue $8,361 $9,680 Excise taxes (1,298) (1,077) Net revenue 15 7,063 8,603 Cost of sales (5,724) (5,680) Gross profit before fair value changes 1,339 2,923 Unrealized gai --- n on changes in fair value of biological assets 821 2,873 Change in fair value of biological assets realized through inventory sold (2,058) (4,212) Gross profit 102 1,584 Operating expenses Administration and general 257 253 Business fees and licenses 221 215 Consulting fees 179 219 Brokerage and commission fees 558 168 Depreciation and amortization 8,9 130 154 Marketing and advertising 19 82 Professional fees 228 409 Salaries and wages 1,334 726 Share based payments 14 34 36 Travel 79 91 3,039 2,353 Net loss from operations (2,937) (769) Other income (expense) Financing costs 10 (273) (2) Interest and accretion 10,11,12 (151) (149) Foreign exchange loss (2) (1) Provision for legal expenses (74) - Interest on related party loan 3 - Net loss before income tax $(3,434) $(921) Net loss and comprehensive loss $(3,434) $(921) Loss per common share Basic and diluted $(0.30) $(0.09) Weighted average shares outstanding Basic and diluted 11,407,934 10,684,446 AVANT BRANDS INC. Condensed Interim Consolidated Statements of Changes in Equity For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 5 Shares Share capital Contributed Surplus Deficit Total Balance at November 30, 2024 10,630,698 $109,804 $11,061 $(88,010) $32,855 Net loss for the period - - - (921) (921) Share units released 8,333 18 (18) - - Shares issued for services 106,842 405 (405) - - Share based compensation - - 38 - 38 Balance at February 28, 2025 10,745,873 $110,227 $10,676 $(88,931) $31,972 Balance at November 30, 2025 11,407,934 $110,910 $11,779 $(97,890) $24,799 Net loss for the period - - - (3,434) (3,434) Share based compensation - - 34 - 34 Balance at February 28, 2026 11,407,934 $110,910 $11,813 $(101,324) $21,399 The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements AVANT BRANDS INC. Condensed Interim Consolidated Statements of Cash Flows For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 6 February 28, 2026 February 28, 2025 Net loss $(3,434) $(921) Adjustments for non-cash items: Unrealized gain on changes in fair value of biological assets (821) (2,873) Change in fair value of biological assets realized through inventory sold 2,058 4,212 Depreciation and amortization 130 1122 Interest and accretion 151 297 Interest on related party loan (3) - Financing costs 273 2 Share-based payments 34 38 Provision for legal expenses 74 - (1,538) 1,877 Changes in working capital Trade and other receivables 1,394 1,495 Prepaid expenses and deposits 70 (449) Biological assets (358) (715) Inventory 1,511 (116) Accounts payable and accrued liabilities (1,250) (1,002) Due to related party 489 - Net cash flows generated from operating activities $318 $1,090 Cash flows from investing activities Purchase of property, plant and equipment (16) (2) Proceeds from legal settlement - - Disposal of property and equipment - - Proceeds from sale of marketable securities - - Net cash flows used in investing activities $(16) $(2) Cash flows from financing activities Lease liability payments (322) (354) Repayment of secured credit facility (365) (365) Repayment of convertible debenture A - (599) Repayment of convertible debenture B (317) (413) Loan issued to related party (20) (100) Net cash flows used in financing activities $(1,024) $(1,831) Decrease in cash (722) (743) Cash – begin --- ning of period 1,485 1,740 Cash – end of period $763 $997 The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements AVANT BRANDS INC. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 7 1 Nature and continuance of operations Avant Brands Inc. (the “Company”) is a corporation where the Company’s principal business activity is cultivation, production, marketing and sales of cannabis products and pursuing opportunities in the cannabis industry. The Company was incorporated on September 24, 2012, under the Canada Business Corporations Act and continued under the Business Corporations British Columbia Act effective on July 28, 2017. The Company is a publicly traded company listed on the Toronto Stock Exchange (“TSX”) (TSX: AVNT), and trades on the OTCQX Best Markets (OTCQX: AVTBF) and Frankfurt Stock Exchange (FRA: 1BU0). The Company’s head office is located at Suite 910 – 1700 Dickson Avenue, Kelowna, British Columbia, V1Y 0L5. These condensed interim consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern which assumes that the Company will be able to continue for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. The Company has incurred losses since inception and has an accumulated deficit of $101,324 as at February 28, 2026, and continues to be funded primarily by the issuance of equity, convertible debentures, and a secured credit facility. The Company’s ability to continue as a going concern depends upon its ability to generate profitable operations or continue to raise adequate financing in the future. There is no assurance that the Company will be able to obtain adequate financing in the future or that such financing will be obtained on terms acceptable to the Company. With no assurance that additional financing will be obtained there is a material uncertainty related to the financial conditions that may cast significant doubt on the Company’s ability to continue as a going concern and therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business. The condensed interim consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classifications of assets and liabilities should the Company be unable to continue as a going concern. 2 Basis of presentation Statement of compliance and basis of measurement The condensed interim consolidated financial statements of the Company have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). The condensed interim consolidated financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended November 30, 2025, and any public announcements made by the Company during the interim reporting period. Selected explanatory notes are included to explain events and transaction that are significant to an understanding of the changes in the Company’s financial position and performance since the last annual financial statements. The accounting polici --- es adopted are consistent with those of the previous financial year, except for the adoption of new and amended standards as set out in Note 3. These condensed interim consolidated financial statements of the Company were approved and authorized for issue by the Board of Directors of the Company (the “Board”) on April 13, 2026. AVANT BRANDS INC. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 8 Basis of consolidation These condensed interim consolidated financial statements include the accounts of the Company and the following Canadian subsidiaries: Subsidiaries are entities that the Company controls. Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights and the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a company’s share capital. All inter-company balances and transactions, including unrealized profits and losses arising from intra-group transactions, have been eliminated upon consolidation. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Company operates as a single reportable segment as the chief operating decision maker monitors the business as a whole and makes decisions based on consolidated financial information. Accordingly, no separate segment information is presented in these financial statements. 3 Adoption of new accounting pronouncements a) New standards and interpretations not yet adopted: Certain amendments to accounting standards have been published that are not mandatory for the current reporting period and have not been early adopted by the group. These amendments are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.  Presentation and Disclosure in Financial Statements – IFRS 18  Classification and Measurement of Financial Instruments – IFRS 9 and IFRS 7 b) New and amended standards adopted by the Company: The Company has applied the following standards and amendments for the first time for its annual reporting period commencing December 1, 2025. The amendments listed below did not have any impact on the amounts, presentation, classification or disclosure of amounts recognized in prior periods and are not expected to significantly affect the current or future periods. Amendments to Lack of Exchangeability – Amendments to IAS 21 The Company doesn’t collect foreign currency and has no foreign vendors with a lack of exchangeable currencies. Subsidiaries Geographical Region Ownership percentage 3PL Ventures Inc. (“3PL”) Vernon, British Columbia 100% Avant Craft Cannabis Inc. (“ACC”) Edmonton, Alberta 100% Avant K1 Brands Inc. (“Avant K1”) Kelowna, British Columbia 100% GreenTec Bio-Pharmaceuticals Corp. (“GBP”) Kelowna, British Columbia 100% GreenTec Holdings Ltd. (“GreenTec”) Kelowna, British Columbia 100% Grey Bruce Farms Incorporated (“Grey Bruce”) Tiverton, Ontario 100% The Flowr Group (Okanagan) Inc. (“Flowr Okan --- agan”) Kelowna, British Columbia 100% Tumbleweed Farms Corp. (“Tumbleweed”) Chase, British Columbia 100% AVANT BRANDS INC. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 9 4 Trade and other receivables As of February 28, 2026, and November 30, 2025, trade receivables consisted of: As of February 28, 2026, and November 30, 2025 the Company performed an analysis over its aged receivables balance by customer. The balance by customer review showed a history of collections from trade and other receivables being reasonably assured. From the review, the Company noted that no further allowance is required, and the Company recognized a $nil provision for AFDA as at February 28, 2026 (November 30, 2025: $nil). 5 Prepaid expenses and deposits As of February 28, 2026, and November 30, 2025, prepaid expenses and deposits consisted of: 6 Biological assets The changes in the carrying value of biological assets for the three-month period ended February 28, 2026, and twelve-month period ended November 30, 2025 are as follows: As at February 28, 2026, it is estimated that the Company’s biological assets will yield approximately 1,814 kilograms of flower (November 30, 2025: 2,047 kilograms) and 507 kilograms of trim when harvested (November 30, 2025: 421 kilograms). The Company’s biological assets yielded 3,006 kilograms of cannabis for the three-month period ended February 28, 2026 (February 28, 2025: 3,326 kilograms). As at February 28, 2026, the Company has determined the average fair value less cost to sell to be $2.62 per gram of flower (November 30, 2025: $2.75) and $nil per gram of trim (November 30, 2025: $nil). February 28, 2026 November 30, 2025 Packaging material prepayments $- $- Deposits and other 342 412 Total $342 $412 February 28, 2026 November 30, 2025 Carrying amount, opening $5,635 $6,655 Production costs 4,666 19,801 Changes in fair value less costs to sell due to biological transformation 821 8,116 Transferred to inventory upon harvest (6,366) (28,937) Total $4,756 $5,635 February 28, 2026 November 30, 2025 Trade accounts receivable $5,185 $6,155 Other receivables - 424 Total $5,185 $6,579 AVANT BRANDS INC. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 10 As of February 28, 2026, a change of 10% in the estimated yield per plant, growth cycle, and fair value less cost to sell of dry cannabis would result in the variances noted below to the fair value of biological assets: 7 Inventory The Company’s inventories are comprised of the following balances as at February 28, 2026 and November 30, 2025: As at February 28, 2026, the Company holds 3,659,575 grams of harvested cannabis (November 30, 2025: 3,066,854 grams), which is comprised of 2,283,281 grams of harvested flower and 1,376,294 grams of harvested trim (November 30, 2025: 2,494,656 grams of harvested flower and 572,198 grams of harvested trim). The Company recognized $5,724 as inventory expense relating to cannabis sold during the three-month period ended February 28, 2026 (February 28, 2025: $5,680). During the three-month period ended February 28, 2026, the Company capitalized $5,418 of costs (February 28, 2025: $10,296) to inventory. February 28, 2026 November 30, 2025 Dry --- cannabis Available for packaging $5,308 $5,990 Packaged inventory 693 600 Packaging materials - - Total $6,001 $6,590 Assumption February 28, 2026 +/- 10% Yield per plant 58 - 96 grams of flower and 19 - 22 grams of trim per plant $476 FV less cost to sell $2.62 per gram of flower and $nil per gram of trim 485 Estimated stage of growth 0% - 100% of life cycle per stage 476 AVANT BRANDS INC. Notes to the Condensed Interim Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 11 8 Property, plant and equipment During the three-month period ended February 28, 2026, the Company allocated $785 (February 28, 2025: $971) of depreciation expense to cost of inventory. On December 5, 2025, the Company entered into an agreement with a government agency to receive $2 million to improve lighting efficiency at Flowr Okanagan. Recognition of the government grant is contingent upon completion of the lighting improvement project. Land Buildings Construction in process Growing and processing equipment Right-of-use assets Leasehold improvements Other Total Cost Balance – November 30, 2024 $1,348 $9,300 $3,212 $13,342 $11,952 $7,962 $377 $47,493 Additions - - - 14 616 - 19 649 Disposals - - (4) (1,651) (18) (1,141) - (2,814) Impairment - - (1,700) 27 - - (27) (1,700) Lease modification - - - - 986 - - 986 Balance – November 30, 2025 $1,348 $9,300 $1,508 $11,732 $13,536 $6,821 $369 $44,614 Additions - - 1,722 16 - - - 1,738 Disposals - - - - - - - - Transfer - - - - - - - - Lease modification - - - - - - - - Impairment - - - - - - - - Balance – February 28, 2026 $1,348 $9,300 $3,230 $11,748 $13,536 $6,821 $369 $46,352 Accumulated depreciation Balance – November 30, 2024 $- $(2,909) $- $(5,051) $(2,778) $(4,591) $(342) $(15,671) Additions - (462) - (1,472) (866) (1,347) (10) (4,157) Disposals - - - 1,436 - 1,141 - 2,577 Balance – November 30, 2025 $- $(3,371) $- $(5,087) $(3,644) $(4,797) $(352) $(17,251) Additions - (115) - (332) (184) (337) (4) (972) Disposals - - - - - - - - Balance – February 28, 2026 $- $(3,486) $- $(5,419) $(3,828) $(5,134) $(356) $(18,223) Net book value Balance - November 30, 2025 $1,348 $5,929 $1,508 $6,645 $9,892 $2,024 $17 $27,363 Balance – February 28, 2026 $1,348 $5,814 $3,230 $6,329 $9,708 $1,687 $13 $28,129 AVANT BRANDS INC. Notes to the Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 12 9 Intangible assets and goodwill The Company’s intangible assets consist of licenses to sell cannabis and have definite lives. The Company completes an annual assessment of the recoverable amount of the goodwill. 10 Lease liabilities The following is a continuity schedule for lease liabilities: For a breakdown of future lease payments, refer to Note 17. Balance – November 30, 2024 $10,196 Lease modification 937 Lease additions 616 Lease termination (21) Lease payments (1,386) Interest expense on lease liability 1,063 Balance – November 30, 2025 $11,405 Lease payments (322) Interest expense on lease liability 257 Balance – February 28, 2026 $11,340 Current portion $1,308 Long-term portion $10,032 Intangible asset Goodwill Total Cost Balance – November 30, 2024 $5,589 $6,024 $11,613 Disposal (3,202) - (3,202) Balance – November 30, 2025 2,387 6,024 8,411 Disposal - - - Balance – February 28, 2026 $2,387 $6, --- 024 $8,411 Accumulated amortization and impairment Balance – November 30, 2024 $(4,166) $(6,024) $(10,190) Amortization (386) - (386) Impairment 3,202 - 3,202 Balance – November 30, 2025 (1,350) (6,024) (7,374) Amortization (97) - (97) Disposal - - - Balance – February 28, 2026 $(1,447) $(6,024) $(7,471) Net book value Balance – November 30, 2025 $1,037 - $1,037 Balance – February 28, 2026 $940 - $940 AVANT BRANDS INC. Notes to the Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 13 11 Secured credit facility The following is a continuity schedule for the secured credit facility: 12 Convertible debenture B The following is a continuity schedule for convertible debenture B: Secured facility financial liability, November 30, 2024 $2,325 Principal and interest payments (1,461) Interest and accretion 318 Secured facility financial liability, November 30, 2025 $1,182 Principal and interest payments (365) Interest and accretion 44 Secured facility financial liability, February 28, 2026 $861 Warrants - equity instrument, November 30, 2024 $84 Warrants - equity instrument, November 30, 2025 $84 Warrants - equity instrument, February 28, 2026 $84 Secured facility current portion $861 Secured facility long-term portion $- Liability component carrying value, November 30, 2024 $3,602 Principal and interest payments (1,399) Interest and accretion 517 Liability component carrying value, November 30, 2025 $2,720 Principal and interest payments (317) Interest and accretion 106 Liability component carrying value, February 28, 2026 $2,509 Equity conversion option, November 30, 2024 $226 Debt modification – Derecognition of equity conversion option (226) Reclassification to equity conversion option 472 Equity conversion option, November 30, 2025 $472 Debt modification – Derecognition of equity conversion option - Reclassification to equity conversion option - Equity conversion option, February 28, 2026 $472 Liability component current portion $637 Liability component long-term portion $1,872 AVANT BRANDS INC. Notes to the Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 14 13 Share capital The Company has an unlimited number of common shares without par value authorized for issuance. The Company also has an unlimited number of preference shares without par value authorized for issuance. (a) Issued shares During the three months ended February 28, 2026: (i) No movement. During the three-month period ended February 28, 2025: (ii) The Company issued 8,333 common shares in connection with employment compensation agreements and share units released, resulting in a decrease to contributed surplus of $18 and an increase in share capital of $18. (iii) The Company issued 106,842 common shares to service providers in connection with services received, resulting in a decrease to contributed surplus of $405 and an increase in share capital of $405. (b) Share purchase warrants Share purchase warrants (“warrants”) transactions are summarized as follows: The weighted average outstanding life of warrants outstanding as at February 28, 2026, is 2.08 years (November 30, 2025: 2.28 years). As at February 28, 2026 the following warrants were outstanding: 14 Stock-based compensation (a) Share-based payments During the three-month peri --- od ended February 28, 2026, the Company recorded share-based payment expense of $34 (February 28, 2025: $36). Number of warrants Weighted average exercise price Balance – November 30, 2024 2,045,446 $4.47 Granted 1,425,000 1.60 Expired (166,667) 15.00 Cancelled (1,300,000) 3.00 Balance – November 30, 2025 2,003,779 $2.51 Granted - - Expired (45,833) 7.50 Cancelled - - Balance – February 28, 2026 1,957,946 $2.39 Number of warrants Exercise price per share Expiry date 58,333 $9.00 July 14, 2026 474,613 $3.60 June 3, 2027 1,300,000 $1.75 July 26, 2028 125,000 $1.00 September 28, 2028 1,957,946 AVANT BRANDS INC. Notes to the Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 15 The share-based payments represent the fair value of restricted and deferred stock units vested during three-month period ended February 28, 2026, and are estimated on the grant date using the Black-Scholes option pricing model. The share- based payments also consist of common shares issued for services during the year. (b) Restricted Stock Unit (“RSU”) and Deferred Stock Unit (“DSU”) RSU and DSU transactions are summarized as follows: The weighted average outstanding life of RSUs outstanding as at February 28, 2026, is 0.98 years. Share-based payments included $34 of RSU and DSU expense. As at February 28, 2026, the following RSUs and DSUs were outstanding: Number of RSUs and DSUs Weighted average issue price Balance – November 30, 2024 222,853 $5.31 Granted 875,644 1.12 Vested and released (168,642) 0.80 Forfeited (24,167) 3.00 Balance – November 30, 2025 905,688 $2.16 Granted - - Vested and released - - Forfeited - - Balance – February 28, 2026 905,688 $2.16 Number of RSUs and DSUs Grant date Vesting Date 10,606 February 23, 2024 Mar. 1, 2026, Mar. 1, 2027 4,762 July 5, 2024 Jun. 22, 2026 13,333 August 6, 2024 Aug. 6, 2026, Aug. 6, 2027 193,750 March 10, 2025 Mar. 3, 2027 53,123 March 1, 2022 Mar. 1, 2022, Jun. 1, 2022, Sep. 1, 2022, Dec. 1, 2022, Mar. 1, 2023 19,444 January 9, 2023 Apr. 14, 2023, Jul. 15, 2023, Oct. 15, 2023, Feb. 28, 2024 24,242 July 29, 2024 Feb. 23, 2024, Apr. 23, 2024, Aug. 23, 2024, Sep. 23, 2024 571,428 March 3, 2025 Mar. 3, 2025 15,000 June 2, 2025 Jun. 2, 2026, Jun. 2, 2027, Jun. 2, 2028 905,688 AVANT BRANDS INC. Notes to the Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 16 15 Net revenue The Company’s total net revenues can be found below. 16 Related party transactions Key management compensation All transactions with related parties have occurred in the normal course of operations. Key management is comprised of directors and executive officers. Key management compensation for the three-month periods ended February 28, 2026, and February 28, 2025, consists of the following: Certain key management personnel services are provided by a third party. The Company incurred $45 for the three-month period ended February 28, 2026 (February 28, 2025: $45) for the provision of key management personnel services provided by the third party. Related party balances As at February 28, 2026, due to related party payable included $159 (November 30, 2025: $167) due to directors of the Company in connection with accrued directors’ fees and $1,362 (November 30, 2025: $865) due to officers of the company in connectio --- n with accrued compensation. Both of these balances are unsecured with no associated guarantees and no fixed repayment date. Related party transactions Due from related party receivable included a loan made to a related party where the Company issued $150 through various tranches as part of a short-term loan agreement to a related party. The balance includes a tranche extended on December 22, 2025 of $20. The loan bears interest at 8.5%. The loan has no associated guarantee nor fixed repayment date. The loan has incurred interest income of $3 for the three-month period ended February 28, 2026. February 28, 2026 February 28, 2025 Salaries and wages $119 $135 Director fees 34 45 Share-based payments 9 11 Total $162 $191 February 28, 2026 February 28, 2025 Recreational revenue $4,056 $3,018 Provision for sales returns and allowances (200) (200) Net recreational revenue $3,856 $2,818 Domestic wholesale revenue 1,605 921 Export wholesale revenue 1,567 4,690 Medical revenue - 22 Management fees and other revenue 35 152 Total $7,063 $8,603 AVANT BRANDS INC. Notes to the Consolidated Financial Statements For the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 17 17 Financial instruments (a) Maturity risk Typically, the Company targets that it has sufficient cash on hand to meet expected operational expenses and commitments for a period of 90 days. To achieve this objective, the Company prepares annual operating and capital expenditure budgets, which are regularly monitored and updated as considered necessary. The following table summarizes the maturities of the Company’s financial liabilities as at February 28, 2026, based on the undiscounted contractual cash flows: (b) Fair value classification of financial instruments Below is a comparison, by class, of the carrying amounts and fair values of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values. 18 Commitments and contingencies From time to time, the Company is engaged in various legal proceedings and claims that have arisen in the normal course of business. The following table summarizes the legal provision outstanding as at February 28, 2026: During the three-month period ended February 28, 2026, the Company accrued $74 for legal provision. The Company recognized legal provisions of $74 in relation to lawsuits resolved. Additionally, the Company may enter into contracts for services in the normal course of operations. The Company’s current contractual commitments vary in terms and can be terminated upon sufficient notice. The Company has the following outstanding commitments based on achieving certain milestones. Amortized cost Fair Value Liabilities Convertible debenture B $2,509 $- Secured credit facility 861 - Carrying value Contractual cash flows < 1 year 1 - 5 years >5 years Accounts payable and accrued liabilities $8,548 $8,548 $8,548 $- $- Lease liabilities 11,340 21,539 1,299 5,459 14,781 Secured credit facility 861 904 904 - - Convertible debenture B 2,509 3,078 1,206 1,872 - Total $23,258 $34,069 $11,957 $7,331 $14,781 Legal provision balance, November 30, 2024 $1,000 Legal provision accrued 212 Legal settlement (1,112) Legal provision balance, November 30, 2025 $100 Legal provision accrued 74 Legal settlement (74) Legal provision balance, February 28, 2026 $100 AVANT BRANDS INC. Notes to the Consolidated Financial Statements Fo --- r the three-month periods ended February 28, 2026 and 2025 (Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts) 18 GBP commitment As at February 28, 2026, in connection with a previously completed asset acquisition, the Company has committed to issue common shares at a deemed subscription price equal to the greater of the ten day volume weighted average trading price or $30 per common share. The total contingency is valued at $2,500 based on the following events: Trigger event Completion of GBP construction of a Health Canada approved cannabis production facility in compliance with the CA&R $500 GBP obtaining a license to sell cannabis under the CA&R 500 GBP having sold an aggregate of 3,000 kg of dried cannabis 750 GBP completing construction of an expansion to its production facility to increase production by at least 8,500 kg per annum and receiving an amendment to its production and sales licences 750 $2,500 19 Comparative figures Change in presentation of expenses The Company reclassified a portion of expenses previously presented as Consulting fees into Brokerage and commission fees to more accurately reflect the nature of the expenses incurred. For the three-month period ended February 28, 2025, $168 was reclassified from Consulting fees to Brokerage and commission fees. This reclassification reflects changes in the Company’s business activities and cost structure, thereby improving comparability between periods. The reclassification has no impact on total operating expenses, profit or loss, cash flows, assets, or liabilities. 20 Subsequent events On March 4, 2026, the Company entered into an agreement to settle $495 due to related party balance in exchange for 605,493 shares at a deemed price of $0.817. The Company also settled $200 of additional due to related party balance in exchange for 287,998 shares at a deemed price of $0.694. On March 5, 2026, the Company entered into an agreement to settle $359 due to a vendor in exchange for 535,496 shares at a deemed price of $0.67. On March 9, 2026, the Company entered into an agreement to extinguish $1,777 of Convertible Debenture B in exchange for 1,900,000 units. Each unit consists of one share and half a share purchase warrant exercisable at $0.935.