SEDAR Interim Financial Statements

QUIZAM MEDIA CORPORATION CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 Unaudited Notice of No Auditor Review of Condensed Interim Financial Statements The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by management and approved by the Audit Committee and Board of Directors of the Company. The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity’s auditor. QUIZAM MEDIA CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars) As at As at November 30, May 31, 2025 2025 $ $ ASSETS Current Cash and cash equivalents 104,265 50,056 Accounts receivable 30,546 56,668 Due from related parties (Note 10) 983,548 725,995 Sales taxes recoverable 11,093 - Prepaid expenses 79,552 49,461 Inventory (Note 3) 200,005 217,554 Total current assets 1,409,009 1,099,734 Security deposit 35,000 35,000 Investment in sublease (Note 15) 29,220 57,960 Property and equipment (Note 4) 789,626 1,007,447 Total assets 2,262,855 2,200,141 LIABILITIES Current Accounts payable and accrued liabilities 917,207 494,066 Sales taxes Payable - 34,513 Deferred revenue 11,137 29,942 Due to related parties (Note 10) 1,152,479 1,147,284 Lease liabilities – (Note 14) 463,040 838,109 Total current liabilities 2,543,863 2,543,914 Lease liabilities – Long-term (Note 14) 455,984 327,701 Total liabilities 2,999,847 2,871,615 DEFICIENCY Share capital (Note 5) 26,801,042 26,801,042 Reserves 3,420,463 3,420,463 Deficit (30,958,496) (30,892,979) Total deficiency (736,991) (671,474) Total liabilities and deficiency 2,262,855 2,200,141 Contingencies (Note 16) APPROVED ON BEHALF OF THE BOARD ON JANUARY 29, 2026 /s/ “Russ Rossi” /s/ “Jim Rosevear” Russ Rossi, Director Jim Rosevear, Director 1 QUIZAM MEDIA CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Expressed in Canadian dollars) Three Months ending November 30,2025 Three Months ending November 30,2024 Six Months ending November 30,2025 Six Months ending November 30, 2024 $ $ REVENUES Retail sales 1,432,102 1,644,821 3,060,930 3,340,036 Consulting fees - - 210,000 - Training services and software sales 423,517 81,520 840,756 150,299 1,855,619 1,726,341 4,111,686 3,490,335 EXPENSES Accounting and legal (Note 10) 91,562 98,692 105,959 130,544 Automobile 7,968 7,676 14,024 16,752 Bank charges and finance fees 33,782 101,700 104,151 170,083 Depreciation 110,712 104,418 223,056 224,018 Investor and finance development (Note 10) - - - 1,425 Management fees (Note 10) 66,240 32,537 140,840 137,222 Office and miscellaneous (Note 10) 650,330 28,056 1,187,049 77,065 On-Track TV development costs (Note 8 and 9) 18,200 3,150 28,390 6,900 Regulatory fees 6,424 7,321 10,358 11,954 Research and development (Note 10) 59,457 17,200 96,252 39,015 Retail inventory (Note 3) 962,127 1,079,843 2,049,814 2,185,415 Subcontractors (Note 10) 56,884 36,199 126,474 72,833 Telephone and internet 7,717 9,751 13,717 18,067 Travel and business development (Note 10) 149,502 81,246 256,615 172,171 Wages and benefits 339,769 206,607 659,481 410,114 2,560,674 1,814,396 5,016,180 3,673,577 LOSS BEFORE OTHER ITEMS (705,055) (88,055) (904,494) (183,242) OTHER ITEMS Interest income 682 3,509 1,577 3,509 Other income 476,201 41,488 837,400 97,77 --- 2 NET PROFIT/ (LOSS) AND COMPREHENSIVE PROFIT/ (LOSS) (228,172) (43,059) (65,517) (81,961) LOSS PER SHARE BASIC AND DILUTED (0.00) (0.00) (0.00) (0.00) WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 63,906,845 56,260,270 63,906,845 56,260,270 The Accompanying Notes are an Integral Part of the Consolidated Financial Statements 2 QUIZAM MEDIA CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars) Six Months November 30, Six Months November 30, 2025 2024 $ $ (65,517) (81,961) Depreciation 223,058 224,018 Interest income on sublease (1,631) (3,509) Lease interest expense 43,535 61,205 199,445 199,753 Accounts receivable 26,121 (9,764) Prepaid expenses and deposits (30,091) - Sales taxes recoverable (45,606) 20,085 Inventory 17,549 2,354 Accounts payable and accrued liabilities 423,141 101,409 Due to (due from) related parties (252,358) (347,884) Deferred revenue (18,805) (21,754) 319,396 (55,800) Loans payable to related parties - (272,453) Lease payments (259,950) (254,212) (259,950) (526,666) Disposal (purchase) of property and equipment (5,237) (4,478) (5,237) (4,478) DECREASE IN CASH AND CASH EQUIVALENTS 54,209 (177,608) 50,056 196,362 104,265 18,754 The Accompanying Notes are an Integral Part of the Consolidated Financial Statements OPERATING ACTIVITIES Add back non-cash items: Net loss CASH PROVIDED BY (USED IN ) OPERATING ACTIVITIES FINANCING ACTIVITIES CASH PROVIDED BY (USED IN ) FINANCING ACTIVITIES INVESTING ACTIVITIES CASH PROVIDED BY (USED IN ) INVESTING ACTIVITIES CASH AND CASH EQUIVALENTS – BEGINNING CASH AND CASH EQUIVALENTS – ENDING Changes in non-cash working capital items: 3 QUIZAM MEDIA CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN DEFICIENCY FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) $ $ $ $ $ As at May 31, 2024 58,906,845 26,651,042 3,320,463 - (30,604,914) (633,409) Comprehensive loss for the year - - - - 81,961 81,961 As at November 30, 2024 58,906,845 26,651,042 3,320,463 - (30,522,953) (551,448) As at May 31, 2025 63,906,845 26,801,042 3,420,463 - (30,892,979) (671,474) Comprehensive loss for the year - - - - (65,517) (65,517) As at November 30, 2025 63,906,845 26,801,042 3,420,463 - (30,958,496) (736,991) 0 The Accompanying Notes are an Integral Part of the Consolidated Financial Statements Total Number of Common Shares Amount Reserves Share Subscriptions Received Deficit 4 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 1 CORPORATE INFORMATION, NATURE AND CONTINUANCE OF OPERATIONS 2 STATEMENT OF COMPLIANCE AND BASIS OF PRESENTATION Quizam Media Corporation (the “Company”) was incorporated on September 15, 2000 under the provisions of the Company Act of British Columbia. The Company’s shares are listed on the Canadian Securities Exchange (“CSE”) under the symbol “QQ”. The Company’s shares are also listed on OTC Markets Group (OTCQB) under the symbol “QQQFF”. The Company’s principal business activities consist of providing computer training and consulting services, marketing of a computer based educational program, film production, consulting services and cannabis retail sales. The Company has operated retail cannabis dispensaries since November 2019. The address of the Company’s corporate office and its principal place of business is Suite 650 – 609 Granville Street, Vancouver, BC, V7Y 1G6. These condensed consolidated interim financial statements have been prepared on t --- he basis of accounting principles applicable to a going concern. This assumes the Company will operate for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation. The Company has a history of significant losses, sizeable, accumulated deficits and negative cash flows from operations. These factors form a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on completing equity financings, obtaining support from related parties or generating consistent profitable operations in the future. These condensed consolidated interim financial do not include any adjustments related to the recoverability of assets and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. The unaudited condensed consolidated interim financial statements of the Company for the six months ended November 30, 2025 and 2024 have been prepared in accordance IAS 34 - Interim Financial Reporting and do not include all disclosures required for annual financial statements. These condensed consolidated interim financial statements should be read in conjunction with the Company's annual financial statements for the year ended May 31, 2025 and 2024. These unaudited condensed consolidated interim financial statements for the six months ended November 30, 2025 and 2024 were approved and authorized for issue by the Board of Directors of the Company on January 29, 2026. These unaudited condensed consolidated interim financial statements have been prepared on the going concern basis, under the historical cost convention, except for certain financial instruments that are measured at fair value as described herein. The interim consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. These condensed consolidated interim financial statements include the accounts of the Company and its wholly owned subsidiaries, On-Track Computer Training Ltd., Quizam Entertainment LLC and Quantum 1 Cannabis Corp. All inter-company balances and transactions, including unrealized income and expenses arising from inter- company transactions, have been eliminated on consolidation. 5 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 3. INVENTORY Inventory is comprised of the following November 30, 2025 May 31, 2025 $ $ Finished goods 224,744 236,384 Less: Inventory write-down (24,739) (18,830) Total Inventory (lower of cost and NRV) 200,005 217,554 4. PROPERTY AND EQUIPMENT a) Continuity tables: Cost Computer Hardware Furniture and Fixtures Leasehold Improvements Library Right-of-use Assets Total (Note 14) As at May 31, 2024 453,685 $ 221,031 $ 170,378 $ 6,751 $ 2,792,447 $ 3,644,292 $ Additions 975 926 2,771 - 6,331 11,003 Lease terminations - - - - - - As at May 31, 2025 454,660 $ 221,957 $ 173,149 $ 6,751 $ 2,798,778 $ 3,655,295 $ Additions 642 4,595 - - - 5,237 Lease terminations - - - - - - As at November 30, 2025 455,302 $ 226,552 $ 173,149 $ 6,751 $ 2,798,778 $ 3,660,532 $ Accumulated Depreciation As at May 31, 2024 440,979 $ 164,448 $ 135,686 $ 6,751 $ 1,453,899 $ 2,201,763 $ Additions 6,207 23,393 16,574 - 404,002 450,176 Lease terminati --- ons - - - - (4,091) (4,091) As at May 31, 2025 447,186 $ 187,841 $ 152,260 $ 6,751 $ 1,853,810 $ 2,647,848 $ Additions 2,930 10,547 6,942 - 202,639 223,058 Lease terminations - - - - - - As at November 30, 2025 450,116 $ 198,388 $ 159,202 $ 6,751 $ 2,056,449 $ 2,870,906 $ Carrying Amounts As at May 31, 2025 7,474 $ 34,115 $ 20,890 $ - $ 944,968 $ 1,007,447 $ As at November 30, 2025 5,186 $ 28,164 $ 13,947 $ - $ 742,329 $ 789,626 $ The retail inventory expense for the period ended November 30, 2025 amounted to $1,994,327 (2024 – $1,105,572) which represents the purchased cost of retail goods sold and an inventory provision. Management records a reserve for impaired inventory based on estimates, past experience, condition of the inventory and regulatory changes. During the period ended November 30, 2025, the company recorded an inventory write-down in the amount of $ 24,739 (Year ended May 31, 2025 - $18,830) in relation to slow-moving accessories inventory. 6 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 4. PROPERTY AND EQUIPMENT (continued) a) Total depreciation expense 5. Transactions during the year ended May 31, 2025: Total depreciation expense for the period relating to right-of-use assets was $ 202,639 (2024 - $200,864) which is presented in depreciation expense of $ 223,058 (2024 - $224,071) in the consolidated statement of operations and comprehensive loss. SHARE CAPITAL The Company has authorized share capital of an unlimited number of common voting shares without par On May 14, 2025, the Company issued 5,000,000 units at a price of $0.03 per unit for proceeds of $250,000. Each unit consisted of one common share and one-half share purchase warrant. Each whole warrant is exercisable for twenty-four months at a price of $0.15 per share. The Company's CEO subscribed for 1,400,000 units. Gross proceeds from this private placement of $250,000 were allocated to share capital and $Nil to warrants using the residual method. On May 10, 2024, the Company issued 6,000,000 units at a price of $0.03 per unit for proceeds of $180,000. Each unit consisted of one common share and one-half share purchase warrant. Each whole warrant is exercisable for twenty-four months at a price of $0.15 per share. The Company’s CEO subscribed for 1,000,000 units. Gross proceeds from this private placement of $180,000 were allocated to share capital and $Nil to warrants using the residual method. Transactions during the year ended May 31, 2024: On December 12, 2023, the Company issued 7,410,100 units at a price of $0.03 per unit for proceeds of $222,303. Each unit consisted of one common share and one-half share purchase warrant. Each whole warrant is exercisable for twenty-four months at a price of $0.15 per share. The Company's CEO subscribed for 1,600,000 units. Gross proceeds from this private placement of $222,303 were allocated to share capital and $Nil to warrants using the residual method. On December 12, 2023, the Company issued 2,589,900 units at $0.03 per unit to settle $75,000 of debt with an arm's length creditor. Each unit included one common share and one-half of a share purchase warrant, with each whole warrant exercisable at $0.15 per share for 24 months. At issuance, the market value of the shares was $77,697, with a $2,697 bonus paid to the creditor upon loan conversion. 7 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL S --- TATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 6. STOCK OPTIONS 7. SHARE PURCHASE WARRANTS Balance, May 31, 2024 16,150,000 0.14 $ Expired (8,150,000) 0.12 $ Issued 2,500,000 0.15 $ Balance, May 31, 2025 10,500,000 0.15 $ Expired - - $ Issued - - $ Balance, November 30, 2025 10,500,000 0.15 $ Exercise Price Expiry Date $0.15 $0.15 $0.15 The weighted average remaining contractual life of the warrants outstanding as at November 30, 2025, was 0.48 years. On November 30, 2025, the following share purchase warrants were outstanding: 10,500,000 Number of Warrants May 10, 2026 May 15, 2027 3,000,000 2,500,000 5,000,000 December 3, 2025 The Company grants stock options to directors, officers, employees, and consultants as compensation for services, pursuant to its Incentive Share Option Plan (the “Plan”). Under the Plan, the option exercise price must not be lower than the greater of the closing market prices of the common shares of the Company on the CSE on (a) the trading day prior to the date of grant of the stock options; and (b) the date of the grant of the stock options. The number of options that may be issued under the plan is limited to no more than 10% of the Company's issued and outstanding shares on the grant date. Options vest immediately. Vesting restrictions may also be applied to certain other options grants, at the discretion of the directors. The company does not have any outstanding stock option as of November 30, 2025. Weighted Average Exercise Price Number of Underlying Shares The following table summarizes the continuity of the Company’s share purchase warrants: 8 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 8. SEGMENTED INFORMATION (a) 2025 2024 $ $ Revenue 1,883,769 240,298 Expenses (1,948,447) (495,999) (b) 2025 2024 $ $ Retail sales 3,060,930 3,343,545 Retail inventory (1,994,327) (2,148,973) Other expenses (548,320) (617,738) 9. PRODUCT DEVELOPMENT COSTS (a) On-Track TV 2025 2024 $ $ Salary, wages and fees - 10,340 Production costs - - - 10,340 (b) Quizam software 2025 2024 $ $ Software development costs 112,526 54,578 112,526 54,578 The Company derives revenue from two primary industries, Software and Cannabis. Software includes revenue from training services, software sales and licensing sales. Cannabis includes retail product sales and consulting fee revenue. Training Services and Fulfilment sales and expenses for the period ended November 30, 2025 and 2024, respectively: Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operation decision maker, or decision- making group, in deciding how to allocate resources and in assessing performance. The costs associated with development of the On-Track TV, which are included in expenses for the period ended November 30, 2025 and 2024,are as follows: The costs associated with development of the Quizam educational software, which are included in the consolidated statement of operations and comprehensive loss for the period ended November 30, 2025 and 2024, are as follows: Quantum 1 Cannabis’s retail sales and consulting services sales and expenses for the period ended November 30, 2025 and 2024, respectively: The Company's operations are centralized whereby the Company's head office is responsible for the operation --- al results. All of the Company’s assets and revenues are in Canada. 9 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 10. RELATED PARTY TRANSACTIONS (a) 2025 2024 $ $ Management fees 78,030 67,222 78,030 67,222 (b) (c) Amounts due to related parties During the year ended May 31, 2023, the Company obtained a loan in the amount of $135,729 (US$100,000) from a director of the Company, which bears a simple annual interest rate of 6%, is guaranteed by the President of the Company, and repayable upon demand. As at November 30, 2025, total loan principal and accrued interest was $136,500 (May 31, 2025 - $ 136,500). The amount due from related parties as of November 30, 2025 $983,548 (May 31, 2025 - $725,995) is comprised of the following: Key management compensation The Company has identified its Directors, President and Chief Executive Officer, and Chief Financial Officer as its key management personnel and the compensation costs and fees related to them were recorded at their exchange amounts as agreed upon by transacting parties. Expenses incurred for key management compensation are summarized as follows: For the period ended November 30, 2025 and 2024, key management personnel were not paid any post-employment benefits, termination benefits or any other long-term benefits. Amounts due from related parties As of November 30, 2025, $774,522 was due from (May 31, 2025 – $nil) a significant shareholder and companies owned by the shareholder, who is also a director and officer, and from a company owned by his relative. The amounts are non- interest bearing and due on demand. As of November 30, 2025, $270,174(May 31, 2025 - $1,692) was due from a company owned by a significant shareholder's close family member, and $23,631 (May 31, 2025 - $23,631) was due from the significant shareholder's close family members. The amounts are non- interest bearing and due on demand. In Summary, The balance owing to related parties as of November 30, 2025 amounted to $1,152,479 (May 31, 2025: $1,147,284), as detailed below: During the year ended May 31, 2023, the Company obtained a loan of $49,675 from a company owned by a close family member of a significant shareholder, bearing simple interest at an annual rate of 10%, unsecured, guaranteed by the President of the Company, and repayable on demand. As at May 31, 2025, outstanding loan balances of $308,551 and $676,600 (USD 492,072) were transferred to a company owned by a close family member of a significant shareholder, after which interest ceased to accrue. During the six months ended November 30, 2025, the Company secured an additional loan of $187,000 from a company owned by a close family member of a significant shareholder at an interest rate of 10% and paid interest of $4,313, while expenses totaling $111,067 incurred on behalf of the Company for rent, accounting services, parking, travel, and cellphone costs were applied to offset the loan balance. As at November 30, 2025, the total loan amount outstanding was $80,246 (May 31, 2025 – $Nil). 10 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 10. RELATED PARTY TRANSACTIONS (continued) (d) 2025 2024 $ $ Total Income: Rent and parking (105,407) - Fulfilment Services (727,289) - Training services (748,404) - Management fees (210,000) - (1,791,101 --- ) - Total Expenses: Accounting and legal 3,230 - Investor and finance development - 1,425 Management fees 78,030 67,222 Lease payments 12,000 12,000 Office and miscellaneous 5,459 2,959 Research and development 92,490 38,440 Software development costs 28,390 6,900 Subcontractors - 64,259 Business development 50,115 14,295 269,714 207,500 11. CAPITAL MANAGEMENT Related party transactions During the period ended November 30, 2025, the Company incurred expenses of $ 269,714 (2024 - $207,500) from companies owned by the president and CEO and earned net of income of $1,791,101 (2024 - $Nil) from a company controlled by a close family member of the president and CEO. The breakdown of expenses included in the consolidated statement of operations and comprehensive loss for the period ended November 30, 2025 and 2024 is as follows: As at November 30, 2025, the Company’s capital currently consists of common shares, options and warrants for a total amount of ($736,991) (May 31, 2025 – (671,474)). The Company’s principal source of capital is from the issuance of common shares. The Company’s capital management objectives are to safeguard its ability to continue as going concern and to have sufficient capital funding to be able to meet the Company’s educational software development, internet training development and film production, retain cannabis operation and to ensure the growth of activities. The Company is not subject to external capital requirements. During the three months ended November 30, 2025, the Company did not obtain any additional loans from a shareholder’s close family member. The loan bears a simple annual interest rate of 10%, is unsecured, guaranteed by the President of the Company, and is repayable on demand. No payments were made by the Company during the six months ended November 30, 2025. The close family member ceased charging interest effective June 1, 2026. As at November 30, 2025, the total outstanding loan balance was USD $492,080 (May 31, 2025 – USD $492,080), converted to CAD $687,878 (May 31, 2025 – CAD $679,562) using the year-end exchange rate. 11 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 12. LINE OF CREDIT 13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT $ $ FVTPL (i) 104,265 50,056 Financial assets at amortized cost (ii) 1,014,094 782,663 Financial liabilities at amortized cost (iii) (919,024) (1,641,350) (i) Cash and cash equivalents (ii) Accounts receivable and amounts due from related parties (iii) Accounts payable, amounts due to related parties and loans due to related parties Level $ $ Cash and cash equivalents 1 104,265 50,056 As at November 30, 2025, the Company has a line of credit of $5,000 bearing interest at the bank’s prime rate plus five percent. The line of credit is guaranteed by the assets of the Company. There was no outstanding balance as of November 30, 2025. The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy: November 30, 2025 May 31, 2025 At November 30, 2025, cash of $ 104,265 (May 31, 2025 - $ 50,056) is classified as Level 1. There were no transfers into or out of Level 2 or Level 3 during the year., Level 1–Unadjusted quoted prices in active markets for identical assets or liabilities; Level 3–Inputs that are not based on observable market data. Level 2–Inputs other than quoted prices t --- hat are observable for the asset or liability either directly (i.e.as prices) or indirectly (i.e. Derived from prices);and The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, due to related parties and loans payable. The carrying amounts of these financial instruments area reasonable estimate of their fair values because of their current nature. The following table summarizes information regarding the carrying values of the Company’s financial instruments: November 30, 2025 May 31, 2025 The Company classifies its fair value measurements in accordance with an established hierarchy that prioritizes the inputs in valuation techniques used to measure fair value as follows: 12 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) 31-60 days 61-90 days $ 26,016 2,730 - 1,800 30,546 Credit Risk The risk management function within the Company is carried out in respect of financial risks, operational risks and legal risks. Financial risk comprises market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The primary objectives of the financial risk management function are to establish risk limits, and then ensure that exposure to risks stays within these limits. The operational and legal risk management functions are intended to ensure proper functioning of internal policies and procedures, to minimize operational and legal risks. Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. As at November 30, 2025, the Company had a cash balance of $ 101,265 to settle current liabilities of $2,543,863. The Company manages its ability to meet its short-term obligations through the capital management described in Note 11. The Company intends to meet its current obligations through funds to be raised via the private placement of shares and through related party loans. There can be no assurance of continued access to adequate equity funding. Financial instruments that potentially subject the Company to concentrations of credit risk consist of accounts receivable. Credit risk from accounts receivable encompasses the default risk of its customers. The Company manages its exposure to credit risk by only working with reputable companies and by performing on-going credit evaluations of its customers’ financial condition and requires letters of creditor other guarantees whenever deemed appropriate. The maximum exposure to loss arising from accounts receivable is equal to their carrying amounts. The following table provides information regarding the aging of financial assets that are past due but which are not impaired as at November 30, 2025: Neither past due nor impaired 91 days and over Trade accounts receivable (excluding GST recoverable) Liquidity Risk Carrying value 13 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) <1 Year 2-5 Years Total $ $ $ Accounts payable and accrued liabilities 917,207 - 917,207 Due to related parties 1,152,479 - 1,152,479 Lease liabilities 463,040 455,984 919,024 2,532,726 455,984 2,988,710 In management’s opinion, the Company is not exposed to --- significant price risk. Contractual undiscounted cash flow requirements for financial liabilities as at November 30, 2025 are as follows: Foreign Exchange Risk Price Risk Foreign currency exchange rate risk is the risk that the fair value or future cash flows will fluctuate as a result of changes in foreign exchange rates. The Company is exposed to exchange risk as some of its cash and related party loans are denominated in US dollars. These factors expose the Company to foreign currency exchange rate risk, which could have an adverse effect on the profitability of the Company. As at November 30, 2025, the Company had net monetary liabilities of approximately $824,378 denominated in US dollars of US $592,080. A 10% increase in the US dollar to Canadian dollar exchange rate would impact the Company's net loss by approximately $86,000 and a 10% decrease by $79,000. At this time, the Company currently does not have plans to enter into foreign currency future contracts to mitigate this risk. 14 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 14. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES 1,610,059 $ Additions - Additions for sublease - Adjustments 10,527 Interest expense 114,204 (568,980) Balance at May 31, 2025 1,165,810 $ Adjustments - Interest expense 43,535 (290,321) Balance at November 30, 2025 919,024 $ Less: current portion (463,040) 455,984 $ The continuity of right-of-use assets is as follows Balance at May 31, 2024 1,338,548 $ Additions 6,331 Adjustments 4,091 Depreciation (404,002) Balance at May 31, 2025 944,968 Depreciation (202,639) Balance at November 30, 2025 742,329 $ Lease payments Right-of use assets and lease liabilities consists of leases for office space and storefront locations. The lease liabilities have been discounted using a 7% interest rate. Balance at May 31, 2024 Lease payments 15 QUIZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 15. NET INVESTMENT IN SUBLEASE Balance, May 31, 2024 111,034 $ Interest income 6,091 Lease payments received (59,165) As at May 31, 2025 57,960 Interest income 1,631 Lease payments received (30,371) As at November 30, 2025 29,220 $ 16. CONTINGENCIES On April 20, 2023, the Company entered into a three-year sublease agreement with a third-party leasee for a store premise located in North Vancouver. The leasee pays fixed and variable lease costs estimated to be $5,015 per month for the next year. At commencement of the sublease, the Company recognized an investment in sublease of $162,506 and derecognized ROU assets by $148,595. The reconciliation of the Company’s net investment in store sublease for the year ended November 30, 2025 is as follows: The future aggregate sublease payments to be received under the sublease as at November 30, 2025 is estimated to be $ 30,371 (May 31, 2025 - $60,743). From time to time, the Company is engaged in various legal proceedings and claims that have arisen in the normal course of business. The outcome of all the proceedings and claims against the Company is subject to future resolution, including the uncertainties of litigation. Management believes that the probable ultimate resolution of any such proceedings and claims, individually or in the aggregate, will not have a material adverse effect on the financial condition of the Company. 16 QUI --- ZAM MEDIA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) 17. INCOME TAXES (continued) Year Amount $ 2026 570,061 2027 802,219 2028 864,794 2029 1,011,140 2030 980,292 2031 1,069,816 2032 1,039,129 2033 680,374 2034 885,536 2035 955,181 2036 1,278,023 2037 1,672,765 2038 1,023,436 2039 1,914,639 2040 1,403,281 2041 1,852,305 2042 3,592,255 2043 1,572,059 2044 1,152,846 2045 756,756 Total 25,076,907 18. CONTINGENCIES The Company has approximately $25,076,907 in Canadian non-capital losses for tax purposes which may be used to reduce income taxes in future years and will expire as follows: From time to time, the Company is engaged in various legal proceedings and claims that have arisen in the normal course of business. The outcome of all the proceedings and claims against the Company is subject to future resolution, including the uncertainties of litigation. Management believes that the probable ultimate resolution of any such proceedings and claims, individually or in the aggregate, will not have a material adverse effect on the financial condition of the Company. 17