SEDAR Interim Financial Statements

Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Condensed Consolidated Interim Financial Statements For the Three and Six Months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor Crowe Mackay LLP has not performed a review of these condensed consolidated interim financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim consolidated financial statements by an entity’s auditor. March 2, 2026 Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian dollars) 2 | P a g e Notes December 31, 2025 June 30, 2025 (Unaudited) (Audited) $ $ ASSETS Current Assets Cash and cash equivalents 169,893 953,837 GST Receivable 58,913 25,532 Prepaid expense 5 188,220 3,220 417,026 982,589 Non-Current Assets Intangible asset 6 1,367,187 - 1,367,187 - TOTAL ASSETS 1,784,213 982,589 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIENCY) Current Liabilities Accounts payable and accrued liabilities 9 100,959 180,297 TOTAL LIABILITIES 100,959 180,297 Shareholders’ equity (deficiency) Share capital 7 10,809,870 9,237,508 Subscription received in advance 7 7,000 7,000 Contributed surplus 7,8 1,126,391 480,759 Deficit (10,260,007) (8,922,975) TOTAL SHAREHOLDERS’ EQUITY (DEFICIENCY) 1,683,254 802,292 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIENCY) 1,784,213 982,589 Nature and continuance of operations (Note 1) Approved by the Board of Directors: “Rob Goehring” “Trumbull Fisher” Director Director The accompanying notes are an integral part of these condensed consolidated interim financial statements. Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Condensed Consolidated Interim Statements of Comprehensive Profit or Loss For the three and six months ended December 31 (Unaudited - Expressed in Canadian dollars) 3 | P a g e Three Months Ended Six Months Ended Notes December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ EXPENSES Amortization 130,208 - 195,313 - Consulting fees 6 159,050 19,500 283,750 26,500 Marketing and investor relations expenses 412 1,784 5,754 4,993 Office expenses 27,450 12,588 51,080 29,713 Professional fees 3,034 28,000 15,034 61,486 Research and development expenses 74,070 34,690 145,674 34,690 Stock-based compensation 286,836 - 645,632 - Software expense 2,206 808 2,719 1,652 Listing fee 4 - 545,737 - 545,737 683,266 643,107 1,344,956 704,771 Interest income (expense) 4,304 21,179 7,924 21,179 Net loss and comprehensive loss (678,962) (621,928) (1,337,032) (683,592) Basic and diluted loss per share $ (0.01) $ (0.02) $ (0.02) $ (0.02) Weighted average number of common shares outstanding - basic and diluted 57,286,818 38,395,466 55,548,764 37,573,324 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Condensed Consolidate --- d Interim Statements of Changes in Shareholders’ Equity (Deficiency) (Unaudited - Expressed in Canadian Dollars) 4 | P a g e Share Capital Number of shares Share capital Contributed Surplus Subscription received in advance Deficit Total $ $ $ $ $ Balance as at June 30, 2024 34,687,830 7,033,700 12,000 157,923 (7,419,729) (216,106) Private placement 11,476,574 1,721,486 - (150,923) - 1,570,563 Share issue costs – cash - (156,248) - - - (156,248) Share issue costs – broker warrants - (82,430) 82,430 - - - Eliminate shares of Wisr upon reverse takeover (“RTO”) (46,164,404) - - - - - Shares issued to shareholders of Wisr upon RTO 46,164,404 - - - - - Shares issued to shareholders of 132BC upon RTO 3,666,664 550,000 - - - 550,000 Net loss - - - - (683,592) (683,592) Balance as at December 31, 2024 49,831,068 9,066,508 94,430 7,000 (8,103,321) 1,064,617 Balance as at June 30, 2025 50,971,068 9,237,508 7,000 480,759 (8,922,975) 802,292 Warrant exercises 65,750 9,862 - - - 9,862 Shares issued for intangible assets 6,250,000 1,562,500 - - - 1,562,500 Stock-based compensation - - - 645,632 - 645,632 Net loss - - - - (1,337,032) (1,337,032) Balance as at December 31 2025 57,286,818 10,809,870 7,000 1,126,391 (10,260,007) 1,683,254 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Condensed Consolidated Interim Statements of Cash Flows For the six months ended December 31 (Unaudited - Expressed in Canadian Dollars) 5 | P a g e 2025 2024 $ $ Operating activities Net income (loss) for the period (1,337,032) (683,592) Items not involving cash: Amortization 195,313 - Listing fee - 545,737 Stock-based compensation 645,632 - Changes in non-cash operating working capital items: Receivables (33,381) (647) Prepaids (185,000) - Accounts payable and accrued liabilities (79,339) (75,654) Net cash used in operating activities (793,807) (214,156) Financing activities Private placement proceeds - 1,570,563 Share issue costs – cash - (156,248) Warrant exercises 9,862 - Net cash provided by financing activities 9,862 1,414,315 Change in cash (783,945) 1,202,086 Cash, beginning of period 953,837 164,927 Cash, end of period 169,892 1,367,013 Non-cash financing and investing activities Issuance of broker warrants - $ 82,430 Subscription receipts applied to private placement - $ 150,923 Shares issued for intangible asset acquisition $ 1,562,500 $ - The accompanying notes are an integral part of these condensed consolidated interim financial statements. Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 6 | P a g e 1. NATURE AND CONTINUANCE OF OPERATIONS Wisr AI Systems Inc. (the “Company” or “132BC”) was incorporated on October 20, 2021 under the Business Corporations Act (British Columbia) (the “BCBCA”). On December 20, 2024, the Company completed a reverse takeover transaction (the “Transaction”) with Wisr AI Solutions Inc. (“WisrAI”) pursuant to which 1514910 B.C. Ltd. (“Subco”), a former wholly-owned subsidiary of the Company, amalgamated with WisrAI to form a new entity, Wisr AI Solutions Inc. (“Amalco”), under the BCBCA. The Company began trading on the Canadian Securities Exchange (“CSE”) on May 13, 2025 under the ticker WISR. The Company’s objective is to generate income and achieve long --- term profitable growth through the utilization of artificial intelligence to predict enterprise risk. The head office and principal address of the Company is located at 800–333 Seymour Street, Vancouver, BC. These condensed consolidated interim financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has not yet achieved profitable operations, has a deficit of $10,260,007 as at December 31, 2025 (June 30, 2025 - $8,922,975) and expects to incur further losses in the development of its business. The continuing operations of the Company are dependent upon its ability to attain profitable operations and generate funds therefrom. This indicates the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. Management intends to finance operating costs with equity financings and/or loans from directors and companies controlled by directors. If the Company is unable to continue as a going concern, the net realizable value of its assets may be materially less than the amounts on its statement of financial position. 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION Statement of compliance These condensed consolidated interim financial statements have been prepared in accordance with the IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on March 2, 2026. Basis of preparation These condensed consolidated interim financial statements have been prepared on an accrual basis and are based on historical costs, modified where applicable, by the measurement at fair value of selected financial assets and financial liabilities. The condensed consolidated interim financial statements are presented in Canadian dollars unless otherwise noted. The Canadian dollar is the functional and presentation currency of the Company and its subsidiaries. 3. MATERIAL ACCOUNTING POLICIES These condensed consolidated interim financial statements have been prepared, for all periods presented, following the same accounting policies and methods of computation as described in Note 3 to the audited financial statements of the Company for the year ended June 30, 2025. 4. REVERSE TAKE-OVER On December 20, 2024, the Company completed the Transaction with WisrAI and Subco. Under the terms of the Transaction, the Company consolidated its common shares on a 9.1584 to one basis and subsequently issued an aggregate of 46,164,404 common shares to the former shareholders of WisrAI. In addition, each holder of warrants to purchase common shares of WisrAI received warrants to purchase post-consolidation common shares of the Company on substantially the same terms. The Transaction was completed pursuant to the terms of an amalgamation agreement between the Company, Subco and WisrAI dated effective December 6, 2024. Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 7 | P a g e 4. REVERSE TAKE-OVER (continued) As a result of the Transaction, the Company became the parent company of Amalco and Amalco assumed all --- of the assets and liabilities of WisrAI and Subco. In connection with the completion of the Transaction, the Company changed its name from “1329310 B.C. Ltd.” to “Wisr AI Systems Inc.” The business of the Company is now carried on by Amalco, which is the accounting parent and wholly owned legal subsidiary of the Company. Although the Company is regarded as the legal parent, WisrAI is the acquirer for accounting purposes. Consequently, WisrAI is deemed to be a continuation of the reporting entity, and control of the assets and operations of the Company is deemed to have been acquired by WisrAI in consideration for the issuance of the Company’s common shares to the former shareholders of WisrAI. At the time of the Transaction, the Company did not constitute a business as defined under IFRS 3 Business Combinations; therefore, the Transaction was accounted for under IFRS 2 Share-Based Payment, where the difference between the consideration given to acquire the Company and the net assets of the Company acquired is recorded as listing expense. The following summarizes the reverse takeover and the assets acquired and the liabilities assumed 5. PREPAID EXPENSES December 31, 2025 June 30, 2025 $ $ Rental deposit 3,220 3,220 Consulting fees 185,000 - 188,220 3,220 2024 Net assets acquired: Cash 1,927 Non-trade receivables 3,246 Accounts payables (910) 4,263 Consideration paid: Share capital 550,000 Listing cost (545,737) 4,263 Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 8 | P a g e 6. INTANGIBLE ASSETS On August 20, 2025, the Company completed the acquisition of certain software technology and related assets collectively known as RiskAssure (the “Assets”) from a series of arm’s length vendors (the “Vendors”) pursuant to an asset purchase agreement between the Company and the Vendors dated August 5, 2025 (the “Asset Purchase Agreement”). Pursuant to the Asset Purchase Agreement, the Company acquired the Assets from the Vendors in exchange for an aggregate of 6,250,000 common shares of the Company at a deemed price of $0.25 per share. 7. SHARE CAPITAL Authorized share capital Unlimited number of common shares without par value. Issued share capital for the three months ended December 31, 2025 On July 16, 2025, the Company issued 65,750 common shares valued at $9,862 pursuant to warrant exercises at a price of $0.15 per share. On August 20, 2025, the Company issued 6,250,000 common shares at a deemed price of $0.25 per share pursuant to the Asset Purchase Agreement (note 6). Issued share capital for the year ended June 30, 2025 On July 4, 2024, the Company closed a non-brokered private placement financing of 1,698,809 units at a price of $0.15 per unit for gross proceeds of $254,821. Each unit consists of one common share of the Company and one-half of one non-transferable share purchase warrant, with each whole warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $0.25 per share for a period of 24 months. In connection with the private placement, the Company paid cash share issuance costs of $9,240 and issued 77,000 broker warrants, fair valued using the Black-Scholes Option Pricing Model at $8,971, with each broker warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $ --- 0.15 per share for a period of 24 months. Total Cost Balance at June 30, 2025 $ - Additions 1,562,500 Balance at December 31, 2025 $ 1,562,500 Accumulated depreciation Balance at June 30, 2025 $ - Amortization 195,313 Balance at December 31, 2025 $ 195,313 Carrying amount as at June 30, 2025 $ - Carrying amount as at December 31, 2025 $ 1,367,187 Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 9 | P a g e 7. SHARE CAPITAL (continued) Also on July 4, 2024, the Company closed a non-brokered private placement financing of 7,411,099 subscription receipts at a price of $0.15 per subscription receipt for gross proceeds of $1,111,665. Each subscription receipt will automatically convert into one unit of the Company upon the satisfaction of certain conditions, with each unit consisting of one common share of the Company and one-half of one non-transferable share purchase warrant, with each whole warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $0.25 per share for a period of 24 months. Upon completion of the Transaction on December 20, 2024, the subscription receipts converted into units of the Company (Note 4). In connection with the private placement, the Company paid cash share issuance costs of $122,743 and issued 466,733 broker warrants, fair valued using the Black- Scholes Option Pricing Model at $54,379, with each broker warrant entitling the holder thereof to purchase one common share of the Company at a price of $0.15 per share for a period of 24 months. On August 2, 2024, the Company closed a non-brokered private placement financing of 570,000 subscription receipts at a price of $0.15 per subscription receipt for gross proceeds of $85,500. Each subscription receipt will automatically convert into one unit of the Company upon the satisfaction of certain conditions, with each unit consisting of one common share of the Company and one-half of one non-transferable share purchase warrant, with each whole warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $0.25 per share for a period of 24 months. Upon completion of the Transaction on December 20, 2024, the subscription receipts converted into units of the Company (Note 4). In connection with the private placement, the Company paid cash share issuance costs of $6,840 and issued 57,000 broker warrants, fair valued using the Black-Scholes Option Pricing Model at $6,641, with each broker warrant entitling the holder thereof to purchase one common share of the Company at a price of $0.15 per share for a period of 24 months. On November 8, 2024, the Company closed a non-brokered private placement financing of 1,796,666 units at a price of $0.15 per unit for gross proceeds of $269,500. Each unit consists of one common share of the Company and one- half of one non-transferable share purchase warrant, with each whole warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $0.25 per share for a period of 24 months. In connection with the private placement, the Company paid cash share issuance costs of $17,425 and issued 115,500 broker warrants, fair valued using the Black-Scholes Option Pricing Model at $12,439, with each broker warrant entitling the holder thereof to p --- urchase one common share of the Company at a price of $0.15 per share for a period of 24 months. Upon completion of the Transaction on December 20, 2024, the shareholders of 132BC retained 3,666,664 common shares of the Company, valued at $550,000, and the Company issued 46,164,404 common shares to the former shareholders of WisrAI (Note 4). On April 24, 2025, the Company issued 1,140,000 common shares at a price of $0.15 per share to settle $171,000 in debt owed to a creditor pursuant to debt settlement agreement dated January 17, 2025. Escrowed Shares As at December 31, 2025, the Company had 5,633,035 common shares that were held in escrow. Below is a schedule of when the remaining escrowed shares will be released: Escrow Release Date Number of Shares May 13, 2026 1,126,607 November 13, 2026 1,126,607 May 13, 2027 1,126,607 November 13, 2027 1,126,607 May 13, 2028 1,126,607 5,633,035 Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 10 | P a g e 7. SHARE CAPITAL (continued) Warrants The changes in warrants during the six months ended December 31, 2025 and the year ended June 30, 2025 are summarized as follows: December 31, 2025 June 30, 2025 Number of Warrants Weighted Average Exercise Price Number of Warrants Weighted Average Exercise Price Outstanding, beginning of year 5,738,284 $ 0.25 - $ - Issued - - 5,738,284 0.25 Outstanding, end of year 5,738,284 $ 0.25 5,738,284 $ 0.25 A summary of warrants outstanding at December 31, 2025 is as follows: Broker Warrants The changes in broker warrants during the six months ended December 31, 2025 and the year ended June 30, 2025 are summarized as follows: December 31, 2025 June 30, 2025 Number of Broker Warrants Weighted Average Exercise Price Number of Broker Warrants Weighted Average Exercise Price Outstanding, beginning of year 826,233 $ 0.16 110,000 $ 0.20 Issued - - 716,233 0.15 Exercised (65,750) 0.15 - - Expired (110,000) 0.20 - - Outstanding, end of period 650,483 $ 0.15 826,233 $ 0.16 Expiry Date Weighted Average Remaining Contractual Life in Years Exercise Price Warrants Outstanding July 4, 2026 0.76 $ 0.25 4,554,951 August 2, 2026 0.84 $ 0.25 285,000 November 8, 2026 1.11 $ 0.25 898,333 5,738,284 Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 11 | P a g e 7. SHARE CAPITAL (continued) A summary of broker warrants outstanding at December 31, 2025 is as follows: The fair values of all broker warrants issued were measured based on the Black-Scholes option pricing model and were recorded in contributed surplus. Expected volatility was calculated based on the peer companies’ historical stock price. The weighted average assumptions used in the measurement of the fair values at issuance dates of warrants as at December 31, 2025 and December 31, 2024 were as follows: December 31, December 31, 2025 2024 Expected volatility (based on peer companies’ volatilities) - 150-169% Expected life of broker warrants - 2 years Dividend yield - 0.0% Risk free interest rate - 3.0-3.9% Forfeiture rate - 0.0% 8. STOCK-BASED COMPENSATION Effective June 20, 2025, the Company adopted an Omnibus Equity Incentive Plan (the “Incentive Plan”). The purpose of the Incentive Pl --- an is to retain the services of valued key officers, directors, employees and consultants of the Company. Under the Incentive Plan, the Company is authorized to award stock options, restricted share units (“RSUs”), performance share units, and deferred share units to acquire up to a total of 20% of the total number of issued common shares of the Company (calculated on a non-diluted basis) at the time an equity award is granted. The exercise price for stock options shall be determined in accordance with applicable stock exchange policies. No RSUs may vest before the date that is six months from the grant date. The Company may permit applicable participants to elect to receive the compensation in cash or shares. Stock Options Stock option activities for the six months ended December 31, 2025 and for the year ended June 30, 2025 were as follows: Expiry Date Weighted Average Remaining Contractual Life in Years Exercise Price Warrants Outstanding July 4, 2026 0.76 $ 0.15 524,983 August 2, 2026 0.84 $ 0.15 10,000 November 8, 2026 1.11 $ 0.15 115,500 650,483 Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 12 | P a g e 8. STOCK-BASED COMPENSATION (continued) Number of Weighted average Stock Options exercise price Outstanding, June 30, 2024 - $ - Granted 4,550,000 0.15 Outstanding, June 30, 2025 and December 31, 2025 4,550,000 $ 0.15 At December 31, 2025, 3,562,500 (2024 - nil) options were exercisable. The weighted average remaining contractual life of the options outstanding is 4.47 years (2024 - nil years). Valuation of share options: The fair values of all stock-based compensation were measured based on the Black-Scholes option pricing model. Expected volatility was calculated based on the historical share prices of a group of comparable listed companies within the same industry. During the six months ended December 31, 2025 and December 31 2024, the Company did not grant any stock options. Restricted Share Units During the six months ended December 31, 2025 and December 31, 2024, the Company did not grant any RSUs. As at the period ended December 31, 2025 the Company had 3,900,000 RSUs outstanding to directors, officers and consultants of the Company with a fair value of $0.15 per unit. Of the RSUs, 50% vest on the date that is six months from the grant date of June 20, 2025 and the remainder vest in quarterly installments at the rate of 25% per quarter over the following two quarters. Total stock-based compensation expense: Total stock-based compensation expense for the six months ended December 31, 2025 was $645,632 (2024 - $nil). 9. RELATED PARTY TRANSACTIONS Related party transactions were in the normal course of operations and measured at the exchange amount, which is the amount established and agreed to by the related parties. Key management personnel are the persons responsible for planning, directing and controlling the activities of the Company, and include both executive and non-executive directors, and entities controlled by such persons. The Company considers all directors and officers of the Company to be key management personnel. The Company incurred and paid fees to directors and officers for management and professional services as follows: For the six months ended December 31, 2025 December 31, 2024 $ $ Consulting fees incurred to the CFO 23,750 2,000 Co --- nsulting fees incurred to the CEO 90,000 10,000 113,750 12,000 Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 13 | P a g e 9. RELATED PARTY TRANSACTIONS (continued) During the six months ended December 31, 2025, total related party compensation included $90,000 (2024 - $10,000) in consulting fees to an entity controlled by the CEO of the Company, and $23,750 (2024 - $2,000) in consulting fees to the CFO of the Company. In addition, $7,448 (2024 - $nil) related to stock-based compensation to officers and directors of the Company. As at December 31, 2025, $15,750 (June 30, 2025 - $21,423) was due to directors and officers or companies controlled by directors and officers, and was included in accounts payable and accrued liabilities. The amounts due to related parties are unsecured, non-interest bearing and due on demand. 10. FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT Fair value measurement Financial assets and liabilities that are recognized on the statement of financial position at fair value can be classified in a hierarchy that is based on the significance of the inputs used in making the measurements. The levels in the hierarchy are: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and Level 3 - inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). The Company’s cash is classified as Level 1. The Company believes that the carrying values of accounts payable and accrued liabilities approximate its fair value because of its nature and relatively short maturity dates or durations. Financial risk management The Company is exposed in varying degrees to a variety of financial instrument related risks. The sold director approves and monitors the risk management processes, inclusive of documented investment policies, counter party limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its bank account. Credit risk is managed by using major banks that are high credit quality financial institutions as determined by rating agencies. All of its cash is deposited in a bank account held with a major bank in Canada. The maximum exposure to credit risk is the carrying amount of the Company’s financial instruments. The credit risk is assessed as low. Foreign exchange risk Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company is not exposed to significant foreign exchange risk. Wisr AI Systems Inc. (formerly, 1329310 B.C. Ltd.) Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 14 | P a g e 10. FIN --- ANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT (continued) Liquidity risk Liquidity risk arises through the excess of financial obligations over available financial assets due at any point in time. The Company’s objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements at any point in time. The Company had working capital at December 31, 2025 of $316,067. The Company’s main source of funding has been the issuance of equity securities for cash, primarily through private placements. The Company’s access to financing is always uncertain. There can be no assurance of continued access to significant equity funding. Capital Management Management’s objective is to manage its capital to ensure that there are adequate capital resources to safeguard the Company’s ability to continue as a going concern through the optimization of its capital structure. The capital structure consists of share capital and working capital. In order to achieve this objective, management makes adjustments to it in light of changes in economic conditions and risk characteristics of the underlying assets. To maintain or adjust capital structure, management may invest its excess cash in interest bearing accounts of Canadian chartered banks and/or raise additional funds externally as needed. The Company is not subject to externally imposed capital requirements. The Company’s management of capital did not change during the six months ended December 31, 2024.