SEDAR Interim Financial Statements

GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FEBRUARY 28, 2026 AND FEBRUARY 28, 2025 EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS UNLESS OTHERWISE NOTED UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS In accordance with National Instrument 51-102, the Company discloses that its external auditors have not reviewed the accompanying condensed consolidated interim financial statements, notes to the condensed consolidated interim financial statements and the related Management’s Discussion and Analysis. GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS (UNAUDITED) February 28, 2026 August 31, 2025 ASSETS CURRENT Cash and cash equivalents $ 1,384 $ 3,299 Restricted cash 475 1,388 Trade and other receivables 10,092 9,437 Secured loan receivable 7,780 7,951 Current development assets (Note 5) 3,300 3,300 Prepayments 756 1,077 Income taxes receivable 55 72 Inventory - 97 TOTAL CURRENT ASSETS 23,842 26,621 Investment properties (Note 3) 309,763 306,494 Property and equipment 59 203 Right-of-use assets 354 2,965 Note receivable (Note 4(b)) 7,750 7,750 Development assets (Note 5) 869 869 Investment in joint venture (Note 4) 27,973 28,157 Long-term receivable (Note 16) 1,157 - Deferred income tax assets 3,335 3,225 Other 1,051 1,072 TOTAL ASSETS $ 376,153 $ 377,356 LIABILITIES CURRENT Trade and other payables $ 13,516 $ 14,745 Income taxes payable 197 184 Deferred revenue 1,435 3,120 Current portion of borrowings (Note 6) 60,020 52,589 Current lease liabilities 4,683 4,708 TOTAL CURRENT LIABILITIES 79,851 75,346 Borrowings (Note 6) 125,545 130,621 Lease liabilities 12,868 17,729 Deferred income tax liabilities 9,095 8,916 TOTAL LIABILITIES 227,359 232,612 EQUITY Share capital (Note 7) 45,350 45,371 Reserves (Note 7) 7,656 7,579 Deficit (3,932) (5,270) Accumulated other comprehensive income 237 278 Shareholders’ Equity 49,311 47,958 Non-controlling interests (Note 8) 99,483 96,786 TOTAL EQUITY 148,794 144,744 TOTAL LIABILITIES AND EQUITY $ 376,153 $ 377,356 EVENTS AFTER THE REPORTING PERIOD (Note 18) Approved on behalf of the Board: “Toby Chu” “Troy Rice” Toby Chu, Chief Executive Officer & Director Troy Rice, Director The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS EXCEPT PER SHARE DATA (UNAUDITED) Three Months Ended Six Months Ended February 28, 2026 (Note 2d) February 28, 2025 (Note 2d) February 28, 2026 (Note 2d) February 28, 2025 (Note 2d) REVENUES Rental $ 4,514 $ 4,101 $ 9,652 $ 8,608 Educational 471 462 896 970 Development fees - - 386 - Design and advertising 50 90 74 276 Commissions and referral fees 1 345 295 655 5,036 4,998 11,303 10,509 DIRECT COSTS Rental 1,305 1,292 2,538 2,499 Educational 280 264 529 528 Design and advertising 11 22 17 76 Commissions and referral fees - 143 271 262 1,596 1,721 3,355 3,365 OTHER OPERATING COSTS Genera --- l and administrative (Note 10) 2,421 1,737 4,180 4,757 Provision for expected credit loss on trade receivables 53 98 104 185 Depreciation and amortization 38 43 76 84 Share-based payment 21 21 59 62 2,533 1,899 4,419 5,088 OPERATING INCOME 907 1,378 3,529 2,056 Finance costs (Note 11) (2,552) (3,225) (5,238) (6,367) Net gain (loss) on fair value changes in investment properties (Note 3) 1,378 398 326 (2,248) Share of net loss related to investment in joint venture (Note 4) (44) (316) (79) (316) Other income, net (Note 12) 713 292 2,792 164 INCOME (LOSS) BEFORE INCOME TAXES 402 (1,473) 1,330 (6,711) Income tax expense (recovery) 26 (9) 108 599 Net income (loss) for the period from continuing operations 428 (1,482) 1,438 (6,112) Net income (loss) for the period from discontinued operations (Notes 15 and 16) 2,244 205 1,979 (105) NET INCOME (LOSS) 2,672 (1,277) 3,417 (6,217) OTHER COMPREHENSIVE INCOME (LOSS): Items that are or may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations (9) (11) (41) (17) Other comprehensive income (loss), net of tax (9) (11) (41) (17) TOTAL COMPREHENSIVE INCOME (LOSS) $ 2,663 $ (1,288) $ 3,376 $ (6,234) Net income (loss) from continuing operations attributable to: Global Education Communities Corp. shareholders $ (852) $ 307 $ (641) $ (1,542) Non-controlling interests (Note 8) 1,280 (1,789) 2,079 (4,570) Net income (loss) from continuing operations $ 428 $ (1,482) $ 1,438 $ (6,112) Net income (loss) from discontinued operations attributable to: Global Education Communities Corp. shareholders $ 2,244 $ 205 $ 1,979 $ (105) Non-controlling interests (Note 8) - - - - Net income (loss) from discontinued operations $ 2,244 $ 205 $ 1,979 $ (105) Net income (loss) attributable to: Global Education Communities Corp. shareholders $ 1,392 $ (2,579) $ 1,338 $ (1,647) Non-controlling interests (Note 8) 1,280 (1,789) 2,079 (4,570) Net income (loss) $ 2,672 $ (1,277) $ 3,417 $ (6,217) Total comprehensive income (loss) attributable to: Global Education Communities Corp. shareholders $ 1,383 $ 503 $ 1,297 $ (1,662) Non-controlling interests (Note 8) 1,280 (1,791) 2,079 (4,572) Total comprehensive income (loss) $ 2,663 $ (1,288) $ 3,376 $ (6,234) Net income (loss) per share attributable to shareholders of Global Education Communities Corp. Basic $ 0.02 $ (0.04) $ 0.02 $ (0.02) Diluted $ 0.02 $ (0.04) $ 0.02 $ (0.02) Net income (loss) from continued operations per share attributable to shareholders of Global Education Communities Corp. Basic $ (0.01) $ (0.01) $ (0.01) $ (0.02) Diluted $ (0.01) $ (0.01) $ (0.01) $ (0.02) Net income (loss) from discontinued operations per share attributable to shareholders of Global Education Communities Corp. Basic $ 0.03 $ (0.00) $ 0.03 $ (0.00) Diluted $ 0.03 $ (0.00) $ 0.03 $ (0.00) Weighted average number of common shares outstanding Basic 68,475,632 67,440,040 68,507,796 67,440,040 Diluted 72,158,558 67,440,040 69,227,796 67,440,040 The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS EXCEPT SHARE DATA (UNAUDITED) Share Capital Note Number of Common Shares Dollar Amount Reserves AOCI Deficit Total Shareholders’ Equity Non- Controlling Interests Total Equity August 31, 2024 67,440,040 $ 44,969 $ 7,372 $ 278 $ (27,411) $ 25,208 $ 116,724 $ 141,932 Net inc --- ome for the period - - - - (1,647) (1,647) (4,570) (6,217) Unrealized translation adjustments - - - (17) - (17) (2) (19) Total comprehensive income (loss) (17) (1,647) (1,664) (4,572) (6,236) Share-based payments 7(b) - - 62 - - 62 - 62 Distributions to non-controlling interests 8 - - - - - - (617) (617) Ownership changes resulting in loss of control 8 - - - - - - (24,046) (24,046) Ownership changes resulting in gain of control 8 - - - - - - 23,460 23,460 Convertible debenture - equity component 6(b) - - 126 - - 126 - 126 February 28, 2025 67,440,040 $ 44,969 $ 7,560 $ 261 $ (29,058) $ 23,732 $ 110,949 $ 134,681 August 31, 2025 68,740,040 $ 45,371 $ 7,579 $ 278 $ (5,270) $ 47,958 $ 96,786 $ 144,744 Net loss for the period - - - - 1,338 1,338 2,079 3,417 Unrealized translation adjustments - - - (41) - (41) (1) (42) Total comprehensive income (loss) (41) 1,338 1,297 2,078 3,375 Share-based payments 7(b) - - 59 - - 59 - 59 Distributions to non-controlling interests 8 - - - - - - (819) (819) Contributions from non-controlling interests 8 - - - - - - 1,438 1,438 Purchase of treasury shares 7(a) - - (100) - - (100) - (100) Treasury shares cancellation 7(a) (319,500) (126) 126 - - - - - Convertible debenture - conversion 6(b) 277,777 105 (8) - - 97 - 97 February 28, 2026 68,698,317 $ 45,350 $ 7,656 $ 237 $ (3,932) $ 49,311 $ 99,483 $ 148,794 The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS (UNAUDITED) Three Months Ended Six Months Ended February 28, 2026 (Note 2d) February 28, 2025 (Note 2d) February 28, 2026 (Note 2d) February 28, 2025 (Note 2d) OPERATING ACTIVITIES Net income (loss) from continuing operations $ 428 $ (1,482) $ 1,438 $ (6,112) Items not affecting cash: Net (gain) loss on fair value changes in investment properties (Note 3) (1,378) (398) (326) 2,248 Provision for expected credit losses on trade receivables 265 98 104 185 Finance cost (Note 11) 2,552 3,277 5,238 6,468 Income tax (recovery) expense, net (26) 9 (108) (599) Other 38 392 371 671 Net changes in non-cash working capital (Note 13(a)) 1,868 1,000 (713) 292 Cash generated from operations 3,747 2,896 6,004 3,153 Interest paid (1,794) (1,908) (3,610) (4,181) Income taxes paid (11) - (11) - Net cash provided by (used in) operating activities from continuing operations 1,942 988 2,383 (1,028) Net cash provided by (used in) operating activities from discontinued operations (Notes 15 and 16) (554) 599 (958) 1,126 Net cash provided by operating activities 1,388 1,587 1,425 98 INVESTING ACTIVITIES Return of capital from equity investment (Note 4) - - - 4,971 Development of investment properties (Note 3) (188) (314) (908) (1,367) Capitalized borrowing costs (724) (1,950) (1,679) (4,759) Other 115 728 839 2,000 Net cash provided by (used in) investing activities from continuing operations (797) (1,536) (1,748) 845 Net cash used in investing activities from discontinued operations (Notes 15 and 16) (205) (138) (226) (208) Net cash provided by (used in) investing activities (1,002) (1,674) (1,974) 637 FINANCING ACTIVITIES Repayments of borrowings (Note 13(b)) (358) (4,346) (24,218) (4,623) Advances from borrowings (Note 13(b)) 2,000 4,500 26,663 4,775 Payments of lease liabilities (1,497) (1,328) (2,969) (2,225) Repurchase of common shares (Note 7(a)) (17) - (100) - Distributions to non-controll --- ing interest (400) (15) (729) (23) Contributions from non-controlling interest - - 1,438 - Payment of financing costs (87) (475) (929) (529) Other (192) 705 (161) 713 Net cash used in financing activities from continuing operations (551) (959) (1,005) (1,912) Net cash provided by (used in) financing activities from discontinued operations (Notes 15 and 16) (155) (270) (316) 200 Net cash used in financing activities (706) (1,229) (1,321) (1,712) Effects of exchange rate changes on cash and cash equivalents (12) (13) (45) (20) Decrease in cash and cash equivalents (332) (1,329) (1,915) (997) Cash and cash equivalents, beginning of period 1,716 2,464 3,299 2,132 Cash and cash equivalents, end of period $ 1,384 $ 1,135 $ 1,384 $ 1,135 Supplement cash flow information (Note 13) The accompanying notes are an integral part of these condensed consolidated interim financial statements GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 1 – NATURE OF OPERATIONS Global Education Communities Corp. (the “Company” or “GECC”) is a student-housing rental and property development and construction company headquartered in Vancouver, British Columbia, Canada. The Company’s current business operations include education, student-housing rental, and property development for student-housing rental. The Company’s education business is conducted through CIBT and its subsidiaries in Asia. GECH is an investment holding and management company with a focus on education related real estate projects and student-housing rental in Vancouver, Canada. During the year ended August 31, 2025, the Company divested its equity interest in and discontinued the Sprott Shaw Community Collect (“SSCC”) business segment. During the period ended February 28, 2026, the Company also divested its equity interest and discontinued the SSLC Language College (“SSLC”), which includes SSLC Business College (formerly Vancouver International College or “VIC”) business segment. The head office and principal address of the Company are located at Suite 1200, 777 West Broadway, Vancouver, British Columbia, Canada and its registered and records offices are located at 733 Seymour Street, Suite 2900, Vancouver BC V6B 0S6. NOTE 2 – BASIS OF PREPARATION (a) Statement of Compliance These unaudited condensed consolidated interim financial statements include the accounts of GECC, the ultimate parent company of its consolidated group, and its subsidiaries and are prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”). Certain disclosures included in annual financial statements prepared in accordance with IFRS® Accounting Standards as issued by the IASB have been condensed or omitted. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended August 31, 2025. The accounting policies applied in the preparation of these unaudited condensed consolidated interim financial statements are consistent with those applied and disclosed in Note 28 of the Company’s audited consolidated financial statements for the year ended August 31, 2025. These unaudited condensed consolidated interim financial statements of the Com --- pany were approved by the Company’s Board of Directors and authorized for issue on April 13, 2026. (b) Use of Estimates, Assumptions and Judgements In the preparation of the unaudited condensed consolidated interim financial statements and the application of the Company’s accounting policies, management is required to make judgements, estimates and assumptions that affect the carrying amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the unaudited condensed consolidated interim financial statements and the reported amounts of revenues and expenses during each reporting period. The estimates and associated assumptions are limited by the relevance of historical data and uncertainty of future events, and are reviewed on an ongoing basis. Revisions to estimates are recognized in the period in which the estimates are revised and in any future periods. Actual results could differ from those estimates. Critical judgements and estimates made by management in applying the Company’s accounting policies including significant areas of estimation uncertainty were the same as those applied and disclosed in Note 3 to the audited consolidated financial statements for the year ended August 31, 2025. (c) New accounting standards, interpretations and amendments not yet effective Certain new accounting standards, amendments to standards, and interpretations have been issued by the IASB that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company in the year of adoption as described in Note 4(b) to the audited consolidated financial statements for the year ended August 31, 2025. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 2 – BASIS OF PREPARATION (continued) (d) Discontinued operations Discontinued operations are reported when a component of the Company, representing a separate major line of business or geographical area of operations with clearly distinguishable cash flows, has been disposed of or is held for sale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. Discontinued operations are reported as a separate element on the consolidated statements of income (loss) and comprehensive income (loss) for both the current and comparative periods. For the period ended February 28, 2026, the Company classified and reported SSLC and SSCC as discontinued operations. NOTE 3 – INVESTMENT PROPERTIES The following table is a reconciliation of investment properties balances, including both revenue producing properties and properties under development, which are owned by the real estate limited partnerships which the Company controls. The Company selected the fair value model to apply to its investment properties. February 28, 2026 August 31, 2025 Balance, beginning of period $ 306,494 $ 419,002 Development costs 909 1,771 Capitalized borrowing costs(2) 2,034 8,503 Derecognized investment properties (Note 4) - (105,500) Net gain (loss) on change in fair value 326 (17,282) Balance, end of period $ 309,763 $ 306,494 (1) Two right-of-use assets are classified as investment properties. The fair value of the right-of-use assets are determined based on present value of the estim --- ated future net cash flows of the right-of-use assets. (2) Borrowing costs are capitalized on properties under development which are considered qualifying assets. Borrowings are directly associated with the specific project. NOTE 4 – INVESTMENT IN JOINT VENTURE (a) GEC Oakridge On November 20, 2024, the Company executed several agreements relating to the investment in the GEC® Oakridge investment property by an affiliate of Pomerleau Capital Inc. (“PCAP”). A series of reorganization transactions were completed which resulted in the Company and PCAP jointly controlling the limited partnership which owns the GEC® Oakridge investment property (“LP11”). PCAP's gross investment amount was $10,000, of which $5,000 was invested into the LP11 and $5,000 was repatriated by the existing unit holders, which are controlled limited partnerships of the Company. Upon completion of these transactions, PCAP and the Company own 34.5% and 13.1% equity interest in LP11, respectively. The remaining 52.4% of LP11 is owned by a limited partnership of which the Company gained control during the reorganization (“Oakridge LP”). Upon closing of the transaction, net assets of LP11 were derecognized and net assets of Oakridge LP were recognized. Net assets of LP11 include $53,000 of investment property, $28,722 of secured loans, and $471 of other assets. Net assets of Oakridge LP include $19,046 of equity accounted investment in LP11, $4,518 of receivables from a controlled subsidiary of GECC that is fully eliminated on consolidation, and $12 of other liabilities. The Company also derecognized $19,046 of non-controlling interest in LP11 and recognized $23,460 of non-controlling interest in Oakridge LP, resulting in $nil in gains associated with the loss of control of LP11. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 4 – INVESTMENT IN JOINT VENTURE (a) GEC Oakridge (continued) The following table summarizes the financial information of LP11 and reconciles the carrying amount of the Company's interest in LP11: February 28, 2026 August 31, 2025 GECC ownership interest 65.5% 65.5% Assets Cash $ 2,047 $ 901 Other current assets 1,130 783 Other long-term assets 2,652 2,632 Investment property 83,214 61,300 Total assets $ 89,043 $ 65,616 Liabilities Current liabilities $ 6,762 $ 2,709 Non-current portion of secured loans(1) 59,100 39,649 Total liabilities $ 65,862 $ 42,358 Net assets $ 23,181 $ 23,258 GECC's share of net assets (65.5%) 15,188 15,238 Opening adjustments: Additional loss allocation to GECC(3) $ (1,913) $ - Elimination of downstream revenue(2) (159) (159) Other (67) (67) $ (2,139) $ (226) Current period adjustments: Additional loss allocation to GECC(3) $ (26) $ (1,913) Elimination of downstream revenue(2) (106) - $ (132) $ (1,913) Carrying value of investment in joint venture $ 12,917 $ 13,099 Loss and comprehensive loss (100%) $ 76 $ 5,549 Loss and comprehensive loss (65.5%) 50 3,636 Additional allocation of loss to GECC(3) 26 1,913 GECC's share of loss and comprehensive loss $ 76 $ 5,549 (1) In August 2025, the Company acquired the beneficial interest in a secured loan payable by LP11. LP11 secured loans are guaranteed by the Company. (2) The Company charged $530 of development management fees to LP11 during the period ended February 28, 2026 (February 28, 2025 - $Nil). These fees are capita --- lized to investment properties in the accounts of LP11 and recognized as revenue in the Company's income (loss) and comprehensive income (loss). The downstream revenue is eliminated to the extent of the Company's economic interest in the investee. (3) Under the terms of the LP11 partnership agreement, net losses for each fiscal period are allocated first to GECC and Oakridge LP (proportionate to each investor's ownership interest in LP11) until each of its capital accounts reach $Nil, then to PCAP until its capital account reaches $Nil, and any remaining losses to the general partner. Net income is allocated in the reverse order, first to recoup prior year loss allocations of each investor, and any remaining profits proportionate to each investors' ownership interest in LP11. In accordance with these terms, 100% of LP11's net loss during the periods ended February 28, 2026 and February 28, 2025 was allocated to the Company. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 4 – INVESTMENT IN JOINT VENTURE (a) GEC Oakridge (continued) As at February 28, 2026, LP11 had $31,995 (August 31, 2025 - $54,401) in capital expenditures contracted for but not recognized as liabilities. In accordance with the LP11 partnership agreement, partnerships controlled by the Company are responsible for 50% of capital contributions required for the development and construction of the GEC® Oakridge property. (b) GEC Education Mega Center On May 1, 2025, the Company executed several agreements with Pure Group of Companies (the "Pure Group") relating to the investment in the GEC EMC investment property. A series of reorganization transactions were completed which resulted in the Company and the Pure Group jointly controlling the newly formed limited partnership (the "Pure GECC LP") which became the beneficial owner of the GEC EMC investment property. The Pure Group contributed $4,000 in cash in exchange for 20% of equity interest in Pure GECC LP, and the Company contributed the GEC EMC investment property in exchange for 80% of equity interest in, and $7,750 in non-interest bearing receivables from, the Pure GECC LP. Pure GECC LP also assumed all secured loans associated with the GEC EMC investment property as part of the transaction. Upon closing of the transaction, the contractual value of the investment property was determined to be a reasonable estimate for the fair value of the investment property. Accordingly, the Company derecognized $52,500 of investment property and $28,750 of secured loans associated with GEC EMC. The Company recognized $413 of capitalized losses associated with the derecognition of secured loans in Investment properties, and recognized $1,045 of fair value losses associated with the derecognition of the GEC EMC investment property in the consolidated statements of comprehensive income. The following table reconciles the carrying amount of the Company's interest in Pure GECC LP to the summarized financial information of Pure GECC LP: February 28, 2026 August 31, 2025 GECC ownership interest 80% 80% Assets Cash $ - $ 137 Other current assets 316 434 Other long-term assets 803 434 Investment property 57,183 54,500 Total assets $ 58,302 $ 55,505 Liabilities Current liabilities $ 11,731 $ 8,932 Current portion of secured loans (1) 27,750 27,750 Total liabilities $ 39,481 $ 36,682 --- Net assets (100%) $ 18,821 $ 18,823 Carrying value of investment in joint venture (80.0%) $ 15,056 $ 15,058 Loss and comprehensive loss (100%) 3 1177 GECC's share of loss and comprehensive loss (80.0%) $ 2 $ 942 (1) Pure GECC LP secured loans are guaranteed by the Company. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 4 – INVESTMENT IN JOINT VENTURE (continued) (c) Changes in Investment in joint venture Changes in Investment in joint venture during the period are summarized below. February 28, 2026 August 31, 2025 Balance, beginning of period $ 28,157 $ - Recognition of Investment in GEC Oakridge joint venture - 23,807 Recognition of Investment in GEC EMC joint venture - 16,000 Return of capital from GEC Oakridge joint venture - (5,000) Share of net loss in Investment in GEC Oakridge joint venture (76) (5,549) Elimination of downstream revenue with GEC Oakrdige joint venture (106) (159) Share of net loss in Investment in GEC EMC joint venture (2) (942) Balance, end of period $ 27,973 $ 28,157 NOTE 5 – DEVELOPMENT ASSETS At February 28, 2026, real estate properties under development included $3,300 of receivable from developer (August 31, 2025 - $3,300) and $869 deferred costs and other (August 31, 2025 - $869). Receivable from developer relates to GEC Project 9 described below, and the amount before provision for expected credit losses includes $6,000 of outstanding interest receivable (August 31, 2025 - $6,000). GEC Project 9 Pursuant to a Purchase and Development Agreement (“LP9 PDA”) with a Vancouver developer for the construction of a number of buildings, a controlled limited partnership of the Company, GEC Limited Partnership 9 (“GEC LP9”) had paid a total of $60,000 in deposits associated with the right to purchase a portion of the completed project. The LP9 PDA was subsequently amended with $20,000 of the deposits already paid to be returned to GEC LP9 with the remainder $40,000 deposit to be applied to the purchase price. The $20,000 receivable is subject to interest of 15% per annum and the Company has recognized accrued interest of $6,000 as at February 28, 2026 (August 31, 2025 - $6,000). Numerous project milestones were missed and on April 1, 2022, the developer and its partners (collectively, the “Developer”) applied for and were granted an initial order to commence proceedings under the Canadian Companies’ Creditor Arrangement Act (the “CCAA”) to restructure its business. Under the CCAA proceedings, the Developer under the supervision of the Supreme Court of British Columbia (the “Court), was to determine whether the project would be restructured or sold. At February 28, 2026 , it was not known whether there would be a successful bid for the purchase of the property or restructuring of the project; however, based on activity there is the possibility that GEC LP9 may not be repaid any portion of the amount receivable from the Developer, despite this balance being secured by a third mortgage. GEC LP9 has recognized an expected credit loss provision related to the $20,000 receivable (plus $6,000 of accrued interest) due from the developer of $22,700, and an impairment loss of $40,000 related to the $40,000 deposit during the year ended August 31, 2022. At February 28, 2026, net development assets associated with GEC Project 9 was $3,300 (August 31, 2025 - $3,300). --- On October 6, 2022, GEC LP9 and its general partner filed a notice of civil claim with the Supreme Court commencing legal action against the mortgage lender for the project. In December 2022, GEC LP9 and its general partner responded to a counterclaim filed. The liability portion of the trial completed in May 2024. On August 7, 2024, the Supreme Court dismissed the claims of GEC LP9 and its general partner, and allowed the mortgage lender’s counterclaim against them with damages to be assessed (the “Trial Decision”). GEC LP9 and its general partner have appealed the Trial Decision to the BC Court of Appeal. By means of a decision dated September 22, 2025, the BC Court of Appeal allowed the appeal in part and remitted certain questions back to the BC Supreme Court. Also, on or about November 21, 2025, the mortgage lender applied for leave to the Supreme Court of Canada, seeking to overturn portions of the BC Court of Appeal decision. Proceedings in both the BC Court of Appeal and Supreme Court of Canada Appeal remain on-going at this time. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 6 – BORROWINGS The carrying value of borrowings by entities controlled by the Company are as follows: February 28, 2026 August 31, 2025 Current liabilities Current portion of secured loans (a) $ 50,773 $ 44,513 Current portion of convertible debentures (b) 1,284 5,746 Current portion of government loans (1) 27 83 Current portion of loans payable (2) 7,935 2,247 60,019 52,589 Non-current liabilities Secured loans (a) 120,076 123,579 Convertible debentures (b) 5,292 1,051 Loans payable (2) 41 5,495 Government loans (1) 137 496 125,546 130,621 Total borrowings $ 185,565 $ 183,210 (1) Loans payable to the Government of Canada or designated lender under COVID-19 related programs with monthly payments up to March 2032. (2) In January 2024, the Company issued a loan with total principal of $5,000. The loan bears interest at 12% per annum with a portion of interest deferred until maturity in December 2026. Loans payable have maturity dates ranging from March 2026 to December 2026. Total interest expense and finance fees associated with borrowings, including amounts capitalized to investment properties, were $6,483 for the period ended February 28, 2026 (February 28, 2025 - $10,769), of which $4,449 were recognized in net income (February 28, 2025 - $2,992). Approximately 26% (August 31, 2025 – 49%) of the outstanding borrowings at February 28, 2026 have variable interest rates linked to the Canadian prime rate of. Certain interest rates are subject to minimum rates with certain loans including escalation clauses. (a) Secured loans payable The following table is a continuity of the activity of the loans secured by mortgages associated with the real estate business. Loan payments are interest only or blended payments of principal and interest. Secured loans have maturity dates ranging from April 2026 to September 2035. Full repayment of loans before maturity is permitted subject to specific criteria and satisfaction of minimum interest payment requirements. See Note 9(b) for cash flow commitments related to these loans. February 28, 2026(1) August 31, 2025 Balance, beginning of period $ 168,092 $ 231,450 Advances 26,663 58,827 Repayments (24,218) (61,486) Finance costs incurred (673) (6,041) Accretion of --- finance costs 902 2,802 Loss on derecognition of liability 83 1,144 Modification (gains) losses on non-substantial modification (2) - (1,132) Derecognized on loss of control - (57,472) Total current and non-current secured loans, end of period(3) $ 170,849 $ 168,092 (1) At February 28, 2026, interest rates range from 1.88% to 11.95% per annum (August 31, 2025 – 1.88% to 12.00%) (2) During the period ended February 2026 and the year ended August 31, 2025, certain terms for several secured mortgages, including maturity dates, interest rates and principal amounts, were changed resulting in non-substantial modifications gains and losses, net. (3) Secured loans are secured by investment properties with an aggregate carrying value of $290,540. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 6 – BORROWINGS (continued) (b) Convertible debentures In May 2019, the Company issued Hong Kong dollar (“HKD”) denominated and Canadian dollar denominated convertible debentures (the “2019 Debentures”) and received proceeds of $8,642. In February 2020, the Company issued Canadian dollar denominated convertible debentures (the “2020 Debentures”) and received proceeds of $860. For the 2019 Debentures and 2020 Debentures, each debenture holder may elect to convert all or part of its outstanding principal into common shares of the Company at the conversion prices set at issuance. For the 2019 Debentures, the conversion prices were set in the currency of funding and ranged between HKD 4.80 and HKD 5.00 for HKD denominated debentures, and $0.78 for Canadian dollar denominated debentures. The 2020 Debenture conversion price was set at $0.81. Interest payments are made either quarterly or semi-annually at a rate ranging between 8% to 10% per annum as specified in the individual debenture. During period ended February 28, 2026, the maturity date of the 2019 Debentures were amended and the convertible feature cancelled. At February 28, 2026, the 2019 Debentures mature in May 2027 and the 2020 Debentures are due on demand. In September 2024, the Company issued convertible debentures for proceeds of $1,505 (“2024 Debentures”). The 2024 Debentures have a maturity of one year, extendable for one additional year at the option of the Company, and are convertible into common shares of the Company at a price of $0.30 in the first of year and $0.36 in the second year. Interest is payable quarterly at a 10% per annum interest rate. At initial recognition, the convertible debentures are considered a compound financial instrument that included a host liability classified as amortized cost and a conversion option classified as equity. At initial recognition, the fair value of the host liability was determined first ($1,346) with the residual amount ($126) allocated as equity component to the compound financial instrument. During the period ended February 28, 2026, $97 of the outstanding 2024 Debentures were converted into 277,777 common shares of the Company (August 31, 2025 - $390 and 1,300,000 common shares). As a result, the Company transferred $8 of the equity component of convertible debt (August 31, 2025 - $33) and $97 of the host liability (August 31, 2025 - $370) to share capital during the year ended February 28, 2026. The balances associated with the 2019, 2020 and 2024 Debentures are presented as follows: F --- ebruary 28, 2026 August 31, 2025 Carrying value of host liabilities at beginning of period $ 6,765 $ 4,951 Issuances - 1,505 Equity portion allocated - (126) Less: transaction costs (256) (33) Accretion of carrying value of host liabilities 233 743 Converted to equity (97) (370) Foreign exchange adjustments (69) 95 Carrying value of host liabilities at end of period $ 6,576 $ 6,765 Carrying value of embedded derivatives at beginning of period $ 32 $ 83 Fair decrease increases in liability (32) (53) Foreign exchange adjustments - 2 Carrying value of embedded derivatives at end of period - 32 Total convertible debentures at end of period $ 6,576 $ 6,797 Current portion of debentures $ 1,284 $ 5,746 Non-current portion of debentures 5,292 1,051 Total convertible debentures $ 6,576 $ 6,797 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 7 – CAPITAL AND RESERVES (a) Treasury shares Pursuant to the provisions of a normal course issuer bid approved by the Toronto Stock Exchange, the Company from time to time acquires its own common shares for cancellation. The following table details changes in the treasury shares balance: February 28, 2026 August 31, 2025 Beginning of fiscal year – common shares held in treasury 97,500 - Common shares purchased 267,000 97,500 Common shares cancelled (319,500) - End of period – common shares held in treasury 45,000 97,500 (b) Stock options February 28, 2026 August 31, 2025 Beginning of fiscal year – stock options 4,050,000 3,010,000 Granted - 2,100,000 Expired/forfeited - (1,060,000) End of period – stock options 4,050,000 4,050,000 There were no options granted during the period ended February 28, 2026. During the year ended August 31, 2025, the weighted average fair value of stock options granted of per option was calculated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and inputs: expected life of 5.00 years; risk-free interest rate of 2.90% ; expected volatility of 45.41%; weighted average forfeiture rate of 8.61% ; and weighted average share price of $ 0.25. The expected volatility assumption is based on historical volatility of the Company’s common share price on the TSX. The risk-free interest rate assumption is based on yield curves on Canadian government zero coupon bonds with the remaining term equal to the stock options expected life. The options outstanding at February 28, 2026 had an exercise price range of $0.22 to $0.53 (August 31, 2025 - $0.22 to $0.53) and a weighted average contractual life of 2.94 years (August 31, 2025 – 3.44 years). At February 28, 2026, if all exercisable options were exercised total cash received would be $1,013 (August 31, 2025 - $857). GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 8 – INTERESTS IN OTHER ENTITIES The following continuity reflects the movement in the equity attributable to non-controlling interests in the Company. Additional information about each subsidiary which has a non-controlling interest is presented in Note 16 to the audited consolidated financial statements for the year ended August 31, 2025. February 28, 2026 August 31, 2025 GECH at beginning of period --- $ 97,112 $ 117,040 Contributions from sale of limited partnership units 1,438 - Distribution declared (819) (6,209) Ownership changes not resulting in loss of control (Note 4(a)) - 23,460 Derecognition of NCI (Note 4(a)) - (19,046) Allocation of net comprehensive income for period ended 2,090 (18,133) GECH at end of period 99,821 97,112 CIBT (56) (54) IRIX (282) (272) Total non-controlling interests $ 99,483 $ 96,786 NOTE 9 – FINANCIAL INSTRUMENTS (a) Classification and measurement of financial assets and liabilities by category The following represents the carrying values of the financial assets and liabilities of the Company and the associated classifications and measurement basis for each balance after initial recognition. February 28, 2026 August 31, 2025 Financial assets Measurement basis Cash and cash equivalents Amortized cost $ 1,384 $ 3,299 Restricted cash Amortized cost 475 1,388 Secured loan receivable Amortized cost 7,780 7,951 Note receivable (Note 4(b)) Amortized cost 7,750 7,750 Trade and other receivables Amortized cost 10,092 9,437 Long-term receivables Amortized cost 1,157 - Current development assets Amortized cost 3,300 3,300 $ 31,938 $ 33,125 February 28, 2026 August 31, 2025 Financial liabilities Measurement basis Trade and other payables Amortized cost 13,516 14,745 Secured loans (Note 6) Amortized cost 170,849 168,092 Lease liabilities Amortized cost 17,551 22,437 Convertible debentures – liability (Note 6(b)) Amortized cost 6,576 6,765 Convertible debentures – derivatives (Note 6(b)) FVTPL - 32 Loans payable (Note 6) Amortized cost 7,976 7,742 Government loans (Note 6) Amortized cost 164 579 $ 216,632 $ 220,392 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 9 – FINANCIAL INSTRUMENTS (continued) (a) Classification and measurement of financial assets and liabilities by category (continued) Financial instruments not measured at fair value The carrying amounts of Cash and cash equivalents, Restricted cash, Trade and other receivables, and Trade and other payables are considered reasonable approximations of their fair values due to the short-term nature of these instruments. The carrying value for Secured loan receivable, Long-term receivable, Note receivable and Current development assets is considered a reasonable approximation of its fair value taking into consideration the expected credit loss provision that has been recognized (Note 5). With the exception of one secured loan, the fair value of Secured loans payable, Lease liabilities, liabilities portion of Convertible debentures, Loans payable and Government loans approximate their carrying value as current market interest rates are not significantly different than stated interest rates for these instruments. At February 28, 2026, the fair value of one secured loan was $3,287 lower than the carrying amount due to below market interest rate on the loan. The fair value of secured loans has been determined by discounting the contractual cash flows using implied yields of obligations bearing similar credit risk and maturities. All financial instruments not measured at fair value are considered level 2 financial assets or liabilities under the fair value hierarchy, except for the receivable from developer of $3,300 and loans receivable of $3,740 which are considered level 3 financial assets. Measurement o --- f fair value As described in Note 28(J) to the Company’s audited consolidated financial statements for the year ended August 31, 2025 the fair value hierarchy establishes three levels to classify the significance of inputs to valuation techniques used in making fair value measurements of financial assets and liabilities. At February 28, 2026 and August 31, 2025, other than Long term receivables, there were no financial assets and financial liabilities measured and recognized at fair value on a non-recurring basis. There were no transfers between any of the levels during the six months ended February 28, 2026. The valuation methodologies for level 2 and level 3 financial liabilities are described in Note 22(b) to the audited consolidated financial statements for the year ended August 31, 2025. There were no changes to the valuation methodology used in the measurement of fair value for level 2 or level 3 financial assets and liabilities during the six months ended February 28, 2026. (b) Financial instruments risk A description of the Company’s financial instruments and financial risks that the Company is exposed to and management of these risks is included in Note 22 and Note 23 to the audited consolidated financial statements for the year ended August 31, 2025. There were no significant changes in the Company’s exposures to those risks during the six months ended February 28, 2026. The Canadian prime rate decreased from 4.95% to 4.45% during the six months ended February 28, 2026. Lower interest rates result in reduced required cash flows to finance debt which will impact the Company’s results and future cash flows. The total proportion of principal subject to variable interest was 26% at February 28, 2026 (August 31, 2025 - 49%). The weighted average interest rate paid by the Company at February 28, 2026 was 5.5% on its secured loans (August 31, 2025 – 5.7%). GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 9 – FINANCIAL INSTRUMENTS (continued) (b) Financial instruments risk (continued) Maturities of financial liabilities The table below presents the Company’s contractual undiscounted cash flows associated with financial liabilities broken into relevant maturity groupings based on their contractual maturities. February 28, 2026 Less than one year 2-3 years 4-5 years Over 5 years Total Trade and other payables $ 13,516 $ - $ - $ - $ 13,516 Secured loans (1) 55,526 27,809 48,120 87,828 219,283 Lease payments (2) 6,030 11,877 2,449 - 20,356 2019, 2020 and 2024 Debentures 2,355 6,482 - - 8,837 Other loans 7,995 1,043 - - 9,038 Total $ 85,422 $ 47,211 $ 50,569 $ 87,828 $ 271,030 (1) Interest reserves of $10 exist to offset future interest payments on certain borrowings. (2) Includes lease payments recognized as lease liabilities, estimated variable lease payments and short term lease payments. August 31, 2025 Less than one year 2-3 years 4-5 years Over 5 years Total Trade and other payables $ 14,745 $ - $ - $ - $ 14,745 Secured loans (1) 52,216 17,810 48,685 89,320 208,031 Lease payments (2) 7,011 14,078 6,765 2,754 30,608 2019, 2020 and 2024 Debentures 6,261 1,142 - - 7,403 Other loans 3,581 6,363 183 127 10,254 Total $ 83,814 $ 39,393 $ 55,633 $ 92,201 $ 271,041 (1) Interest reserves of $198 exist to offset future interest payments on certain borrowings. (2) Includes lease payment --- s recognized as lease liabilities, estimated variable lease payments and short term lease payments. NOTE 10 – GENERAL AND ADMINISTRATIVE EXPENSES Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Salaries and benefits $ 657 $ 691 $ 1,196 $ 1,355 Office and general 444 384 675 744 Advertising 11 8 11 5 Professional fees 912 283 1,542 2,086 Consulting and management fees 242 218 453 376 Investor relations 41 31 81 74 Bank charges and interest 32 14 80 28 Rent 21 71 49 41 Travel and promotion 61 37 93 48 General and administrative expenses - continuing operations $ 2,421 $ 1,737 $ 4,180 $ 4,757 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 11 – FINANCE COSTS Three Months Ended Six months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Interest expense comprised of: Interest expense on borrowing $ 2,477 $ 4,237 $ 5,155 $ 9,162 Accretion of finance fee and other 599 602 1,328 1,607 Accretion of lease liabilities 399 485 821 981 3,475 5,324 7,304 11,750 Less: capitalized interest and finance fees (923) (1,847) (2,034) (4,999) Total interest expense 2,552 3,477 5,270 6,751 Gain on embedded derivatives, net (Note 6(b)) - (33) (32) (82) Debt modification gains, net - (220) - (302) Other - 1 - - Total finance costs - continuing operations $ 2,552 $ 3,225 $ 5,238 $ 6,367 NOTE 12 – OTHER INCOME (EXPENSE), NET Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Interest and other income (loss), net $ 238 $ (185) $ 483 $ (173) Foreign exchange gain 172 430 127 290 Gain on derecognition of financial liabilities - - (83) - Downstream revenue from equity investee 280 - 492 - Gain on settlement of legal claim(1) - - 1,750 - Gain on sale of property and equipment - 47 - 47 Other 23 - 23 - Total other income, net $ 713 $ 292 $ 2,792 $ 164 (1) In October 2025, the Company resolved a legal matter related to a construction deficiency at a property acquired by the Company. Under the terms of the settlement agreement, the counterparty agreed to pay the Company $1,750. NOTE 13 – SUPPLEMENTAL CASH FLOW INFORMATION (a) Changes in working capital Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Changes in: Accounts receivable $ 1,108 $ (310) $ (922) $ (804) Prepayments (110) (70) 194 (212) Accounts payable and accrued liabilities 585 1,307 185 1,268 Deferred revenue 285 73 (170) 40 Changes in working capital $ 1,868 $ 1,000 $ (713) $ 292 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 13 – SUPPLEMENTAL CASH FLOW INFORMATION (continued) (b) Changes in liabilities arising from financing activities Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Total borrowings, beginning of period $ 184,018 $ 224,169 $ 183,210 $ 250,956 Cash flows, comprised of: 1,621 838 2,403 1,882 Repayments of secured loans (Note 6(a)) (358) (4,350) (24,218) (4,627) Advances of secured loans 2,000 4,500 26,663 4,500 Advances of credit facility - 706 - 1,773 Issuance of convertible debt (Note 6(b)) - - - 275 Repaymen --- t of other loans 21 (18) (42) (39) Liability related items: Finance fees (87) (475) (929) (529) Non-cash related items: Finance cost accretion(1) 599 383 1,328 1,305 Equity component of convertible debt (Note 6(b)) - - - (126) Derecognition of liabilities - - - (28,722) Derivative fair value changes - (33) (32) (82) Loss on derecognition of liability - - 83 - Conversion of debt (Note 6(b)) (96) - (96) - Foreign exchange and other (157) 152 (69) 350 Discontinued operations (333) - (333) - Total borrowings, end of period $ 185,565 $ 225,034 $ 185,565 $ 225,034 (1) Includes increase in carrying value of secured debt resulting from net debt modification gain. NOTE 14 – RELATED PARTY TRANSACTIONS The Company’s related parties include its subsidiaries, associates over which it exercises significant influence, and key management personnel. During its normal course of operation, the Company enters into transactions with its related parties for goods and services. Transactions with related parties are in the normal course of operations and are measured at the amount exchanged. (a) Key management personnel compensation: Three Months Ended Six Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Management salaries and director’s fees $ 137 $ 264 $ 345 $ 513 Share-based payments 17 20 49 59 Total key management personnel compensation $ 154 $ 284 $ 394 $ 572 (b) Other related party balances: February 28, 2026 August 31, 2025 Due to officers and directors of the Company(1) $ 1,614 $ 1,913 Due to the president of IRIX(2) 165 170 Due to related parties $ 1,779 $ 2,083 (1) As at February 28, 2026, $632 of amounts due to officers and directors of the Company bear interest at 12% per annum and has no fixed payment terms (August 31, 2025 - $755). Other amounts due are non-interest bearing and have no fixed terms of repayment. (2) No fixed terms of repayment, bearing interest at a rate of 6% per annum. GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 14 – RELATED PARTY TRANSACTIONS (continued) (b) Other related party balances: At February 28, 2026, $140 (August 31, 2025 - $140) of the 2024 Debentures are held by officers and directors of the Company. At February 28, 2026, the Company reported a $7,750 non-interest bearing, due on demand note receivable (Note 4(b)) and a $7,780 secured loan receivable from Pure GECC LP. The secured loan receivable was acquired by the Company in August 2025 from an arms-length third party for cash proceeds of $7,750. The secured loan matures in March 2026 and bears a prime-linked interest rate of 15.5% as at November 30, 2025. During the period ended February 28, 2026, the Company recognized $425 of interest income associated with the secured loan receivable in the consolidated statement of income (loss) and comprehensive income (loss). Subsequent to February 28, 2026, the Company and Pure GECC LP agreed to extend the maturity of the secured loan receivable on a month-to-month basis. All other terms and conditions of the loan, including the applicable interest rate and security, remain unchanged. NOTE 15 – DIVESTMENT OF SSCC On July 4, 2025, the Company entered into a definitive agreement to sell 100% of the issued and outstanding shares of SSCC (the “SSCC Divestment”). The SSCC Divestment was completed on August 7, 2025. The consider --- ation consisted of initial cash proceeds of $32,224 and $3,240 of closing receivable for final working capital adjustments. At February 28, 2026, the closing receivable is recorded as Trade and other receivables. The results of operations for SSCC are presented as discontinued operations for the period ended February 28, 2025 as shown below. Six Months Ended February 28, 2025 Revenue $ 20,176 Direct costs (8,443) Gross Profit 11,733 Operating costs 10,748 Other items 451 Loss before income taxes 534 Income tax expense 202 Net income and comprehensive income for the period from discontinued operation $ 332 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 16 – DIVESTMENT OF SSLC On February 28, 2026, the Company completed the sale of the issued and outstanding shares of SSLC (the “SSLC Divestment”) for deferred considerations of $2,000. As part of the SSLC Divestment, the Company agreed to advance a secured loan of $1,500 to the purchaser, bearing interest at 20% and maturing on August 31, 2028. The deferred consideration are due upon the occurrence of a future sale of SSLC by the acquirer. Proceeds from any such future sale will first be applied to settle the outstanding secured loan, followed by the settlement of the $2,000 deferred consideration. The Company will also be entitled to a portion of any residual proceeds that exceed an agreed threshold. The deferred consideration has been recognized as a long-term receivable and measured at its fair value based on the discounted cash flows associated with the deferred consideration. Management has made assumptions on the estimated value of the future sale of SSLC, the timing of settlement of the deferred consideration, and a risk adjusted discount rate associated with the cash flows. As at February 28, 2026, the $300 of the secured loan was advanced to the purchaser. The remaining $1,200 of secured loan was advanced subsequent to the end of the period. The following tables outline the net assets disposed of the consideration received and the gain on divestment. Total consideration received $ 1,157 Allocated to net assets disposed: Cash and cash equivalents 385 Other current assets 219 Property and equipment 122 Right-of-use assets 2,356 Intangible assets and goodwill 17 Other current liabilities (1,203) Deferred revenue (911) Borrowings (333) Lease liabilities (2,571) Deferred income tax liabilities (197) Total net liabilities disposed (2,116) Gain on divestment of SSLC 3,273 Tax expense (156) Net gain on divestment of SSLC $ 3,117 The results of operations for SSLC are presented as discontinued operations for the periods ended February 28, 2026 and 2025 as shown below. Six months ended February 28, 2026 February 28, 2025 Revenue $ 2,094 $ 3,833 Direct costs (1,564) (2,292) Gross Profit 530 1,541 Operating costs 1,307 2,815 Other items (2,733) (584) Loss before income taxes (896) (690) Income tax expense (recovery) 242 (253) Net loss and comprehensive loss for the period from discontinued operations $ (1,138) $ (437) GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 17 – SEGMENTED INFORMATION The Company’s primary industry and geographic segments are in Canada where IRIX c --- onducts web design and advertising services, and GECH invests in and manages education related real estate projects, and in China where CIBT operates technical and career training schools. The Company’s corporate operations are also in Canada. Transactions between IRIX, GECH, CIBT and the Company (Corporate) are reported as inter-segment transactions and are eliminated on consolidation. Six Months Ended February 28, 2026 CIBT IRIX GECH Corporate Total from Continuing Operations Revenues Revenues from contracts with customers Educational $ 896 $ - $ - $ - $ 896 Rental - - 1,089 - 1,089 Design and advertising - 74 - - 74 Commissions and referral fees 295 - - - 295 Total revenues from customers 1,191 74 1,089 - 2,354 Revenue from leases - - 8,563 - 8,563 Revenue from development fees - - - 386 386 Total revenues $ 1,191 $ 74 $ 9,652 $ 386 $ 11,303 Revenues, net of direct costs $ 392 $ 57 $ 7,113 $ 386 $ 7,948 Other income (expenses): General and administrative 524 90 1,646 1,920 4,180 Provision for (recovery of) expected credit loss on trade receivables 104 - - - 104 Depreciation and amortization 4 12 3 57 76 Share-based payment expense - - - 59 59 Finance costs - 1 4,698 539 5,238 Loss on fair value changes in investment properties - - (326) - (326) Share of net loss related to joint venture - - 79 - 79 Other income, net (58) - (2,147) (587) (2,792) Inter-segment transactions - (18) 20 (2) - Income (loss) before taxes (182) (28) 3,140 (1,600) 1,330 Income tax provision (recovery), net (49) (7) 203 (255) (108) Net income (loss) $ (133) $ (21) $ 2,937 $ (1,345) $ 1,438 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 17 – SEGMENTED INFORMATION (continued) Six Months Ended February 28, 2025 CIBT IRIX GECH Corporate Total from Continuing Operations Revenues Revenues from contracts with customers Educational $ 970 $ - $ - $ - $ 970 Rental - - 880 - 880 Design and advertising - 276 - - 276 Commissions and referral fees 655 - - - 655 Total revenues from customers 1,625 276 880 - 2,781 Revenue from leases - - 7,728 - 7,728 Revenue from development fees - - - - - Total revenues $ 1,625 $ 276 $ 8,608 $ - $ 10,509 Revenues, net of direct costs $ 835 $ 200 $ 6,109 $ - $ 7,144 Other income (expenses): General and administrative 662 214 2,305 1,867 5,048 Depreciation and amortization 5 13 8 58 84 Share-based payment expense - - - 62 62 Finance costs - 1 5,678 688 6,367 Loss on fair value changes in investment properties - - 2,248 - 2,248 Share of net loss related to joint venture - - 316 - 316 Other income, net (146) (48) (439) 363 (270) Inter-segment transactions (5) (13) 157 (139) - Income (loss) before taxes 319 33 (4,164) (2,899) (6,711) Income tax provision (recovery), net 86 9 52 (746) (599) Net income (loss) $ 233 $ 24 $ (4,216) $ (2,153) $ (6,112) GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 17 – SEGMENTED INFORMATION (continued) As at February 28, 2026 CIBT IRIX GECH Corporate Consolidated Total assets $ 1,904 $ 116 $ 358,945 $ 15,188 $ 376,153 Investment properties $ - $ - $ 309,763 $ - $ 309,763 Total liabilities $ 1,025 $ 314 $ 216,953 $ 9,067 $ 227,359 Non-controlling interests $ (56) $ (282) $ 99,821 $ - $ 99,483 As --- at February 28, 2025 CIBT IRIX GECH Corporate Discontinued Operations Consolidated Total assets $ 2,261 $ 163 $ 399,614 $ 5,330 $ 36,692 $ 444,060 Investment properties $ - $ - $ 370,119 $ - $ - $ 370,119 Total liabilities $ 753 $ 338 $ 253,830 $ 3,160 $ 51,298 $ 309,379 Non-controlling interests $ (52) $ (255) $ 111,256 $ - $ - $ 110,949 GLOBAL EDUCATION COMMUNITIES CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) All amounts in thousands of Canadian Dollars except share and per share amounts February 28, 2026 NOTE 18 – EVENTS AFTER THE REPORTING PERIOD On April 1, 2026, following the conclusion of an ongoing arbitration, a jointly controlled entity of the Company was awarded the settlement of RMB 10,000 of accounts receivable that was fully provided for as a bad debt as at the reporting date. The Company’s proportionate share of the recovered amount is RMB 6,000. This event arose after the reporting period and, accordingly, no adjustment has been made to the financial statements as at the reporting date. --- END OF CONSOLIDATED FINANCIAL STATEMENTS ---