SEDAR Interim Financial Statements

The accompanying notes are an integral part of these financial statements. 3 Kua Investments Inc. FINANCIAL STATEMENTS (Expressed in Canadian Dollars) For the three and nine months ended August 31, 2025 NOTICE TO READER These condensed interim unaudited financial statements of Kua Investments Inc. (the “Company”) as at and for the three and nine months ended August 31, 2025 prepared by management and approved by the Board of Directors of the Company. These condensed interim unaudited financial statements have not been reviewed by the Company’s external auditors. The accompanying notes are an integral part of these financial statements. 3 Kua Investments Inc Statements of Financial Position (Stated in Canadian Dollars) (Unaudited) 31-Aug 30-Nov Notes 2025 2024 ASSETS Current assets Cash and cash equivalents 38,674 $ 88,196 $ Prepaids - - TOTAL ASSETS 38,674 $ 88,196 $ LIABILITIES AND EQUITY Current liabilities Accounts payable and accrued liabilities 17,929 15,848 Total current liabilities 17,929 15,848 Shareholders' equity Common shares 3 365,699 365,699 Contributed surplus 30,648 30,648 Retained earnings (deficit) (375,602) (323,999) Total equity 20,745 72,348 TOTAL LIABILITIES AND EQUITY 38,674 $ 88,196 $ Nature and continuance of operations 1 Approved on behalf of the Board of Directors: "Olivia Edwards" "Derek Lew" Olivia Edwards, Director Derek Lew, Director The accompanying notes are an integral part of these financial statements. 4 Kua Investments Inc Statements of Loss and Comprehensive Loss (Stated in Canadian Dollars) (Unaudited) Three months ended August 31, 2025 Three months ended August 31, 2024 Nine months ended August 31, 2025 Nine months ended August 31, 2024 Operating Expenses Legal fees 473 $ - $ 1,988 $ 9,096 $ General and administrative 9,021 8,676 42,679 44,615 Filing fees and bank charges 14 12 6,936 11,572 Loss and comprehensive loss loss for the period (9,508) $ (8,688) $ (51,603) $ (65,283) $ Weighted average number of common shares outstanding Basic and diluted 6,250,001 6,250,001 6,250,001 6,250,001 Basic and diluted earnings (loss) per common share (0.00) $ (0.00) $ (0.01) $ (0.01) $ The accompanying notes are an integral part of these financial statements. 5 Statements of Cash Flows (Stated in Canadian Dollars) (Unaduited) Nine months ended August 31, 2025 Nine months ended August 31, 2024 Operating activities Loss for the period (51,603) $ (65,283) $ Changes in non-cash working capital items: Accounts payable and accrued liabilities 2,081 8,821 Net cash used in operating activities (49,522) (56,462) Change in cash during the period (49,522) (56,462) Cash, beginning of period 88,196 149,800 Cash, end of period 38,674 $ 93,338 $ Kua Investments Inc. Statements of Shareholders’ Equity (Expressed in Canadian dollars) The accompanying notes are an integral part of these financial statements. 6 Kua Investments Inc. Statements of Changes in Equity (Stated in Canadian Dollars) (Unaudited) Retained earnings Number Amount Reserves (deficit) Total Balance at November 30, 2023 6,250,001 365,699 $ 30,648 $ (253,097) $ 143,250 $ Net loss - - - (70,902) (70,902) Balance at November 30, 2024 6,250,001 365,699 $ 30,648 $ (323,999) $ 72,348 $ Retained earnings Number Amount Reserves (deficit) Total Balance at November 30, 2024 6,250,001 365,699 $ 30,648 $ (323,999) $ 72,348 $ Net loss - - - (51,603) (51,603) Balance at August 31, 2025 6,250,001 365,699 $ 30,648 $ (375,602) $ 20,745 $ Common Shares Common Shares Kua Investmen --- ts Inc. Notes to the Financial Statements For the nine months ended August 31, 2025 (Expressed in Canadian dollars) (Unaudited) 16 1. NATURE OF OPERATIONS AND GOING CONCERN Kua Investments Inc. (the “Company”) is a company domiciled in Canada. The Company was incorporated on January 11, 2021 under the laws of the Province of British Columbia. The address of the Company’s registered and head office is 700 - 401 West Georgia Street, Vancouver, BC. The Company was formed for the primary purpose of completing an Initial Public Offering (“IPO”) on the TSX Venture Exchange (“Exchange”) as a Capital Pool Corporation (“CPC”) as defined in Policy 2.4 of the Exchange. The principal business of the Company will be the identification and evaluation of assets or businesses with a view to completing a Qualifying Transaction (“QT”). The Company has not commenced operations and has no assets other than cash and due from related party. The Company’s continuing operations as intended are dependent upon its ability to identify, evaluate and negotiate an acquisition, or business, or an interest therein. Such an acquisition will be subject to the approval of the regulatory authorities concerned and in the case of a non-arms’ length transaction, of the majority of the minority shareholders. As a Capital Pool Company, the proceeds raised by the Company from the issuance of share capital may only be used to identify and evaluate assets or businesses for future investment, with the exception that not more than $3,000 per month may be used to cover administrative and general expenditures of the Company. These restrictions apply until the completion of a QT by the Company as defined under the policies of the Exchange. On March 31, 2022, the Company completed its Initial Public Offering (“IPO”) of its common shares on the Exchange (see Note 3). Going Concern As at August 31, 2025 the Company had an accumulated deficit. The Company’s solvency, ability to meet its liabilities as they become due, and to continue its operations, is dependent on funding provided by investors. There is no assurance that the Company will be able to raise any funding, or that the funding will be on terms favourable to the Company. These conditions may cast significant doubt upon the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. These adjustments could be material. 2. BASIS OF PREPARATION 2.1 Basis of presentation These financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value, as outlined in Note 5. In addition, these financial statements have been prepared using the accrual basis for accounting, except for cash flow information. These financial statements are presented in Canadian dollars, which is also the functional currency of the Company. Kua Investments Inc. Notes to the Financial Statements For the nine months ended August 31, 2025 (Expressed in Canadian dollars) (Unaudited) 16 2. BASIS OF PREPARATION (continued…) 2.2 Statement of compliance The financial statements of the Company, have been prepared in accordance with and using accounting policies in compliance with International Financial Reporting Standards (“IFRS”) and International Accounting Standards (“IAS”) issued by the International Accounting Standards Board (“IASB”) and interpretations of the --- International Financial Reporting Interpretations Committee (“IFRIC”). These financial statements were authorized for issue by the board of directors. 2.3 Significant accounting judgments, estimates and assumptions The preparation of the Company’s financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. Critical Judgements The preparation of these financial statements requires management to make judgements regarding the going concern of the Company, as discussed in Note 1, as well as the determination of functional currency. The functional currency is the currency of the primary economic environment in which an entity operates. The functional currency for the Company has been determined to be the Canadian dollar. Key Sources of Estimation Uncertainty Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates and such differences could be significant. Significant estimates made by management affecting the financial statements include: Deferred Tax Assets & Liabilities The estimation of income taxes includes evaluating the recoverability of deferred tax assets and liabilities based on an assessment of the Company’s ability to utilize the underlying future tax deductions against future taxable income prior to expiry of those deductions. Management assesses whether it is probable that some or all of the deferred income tax assets and liabilities will not be realized. The ultimate realization of deferred tax assets and liabilities is dependent upon the generation of future taxable income, which in turn is dependent upon successful operations. To the extent that management’s assessment of the Company’s ability to utilize future tax deductions changes, the Company would be required to recognize more or fewer deferred tax assets or liabilities, and deferred income tax provisions or recoveries could be affected. Kua Investments Inc. Notes to the Financial Statements For the nine months ended August 31, 2025 (Expressed in Canadian dollars) (Unaudited) 16 3. SHARE CAPITAL Authorized Unlimited common shares without par value Issued and outstanding During the year ended November 30, 2022, the Company completed its IPO of 2,250,000 common shares in the capital of the Company at a price of $0.10 per share, for aggregate gross proceeds of $225,000. Pursuant to an Agency Agreement with Haywood Securities Inc. (“Haywood”), Haywood was paid a cash commission equal to 8% of the gross proceeds of the offering and agent’s warrants equal to 8% of the number of shares sold in the offering, exercisable at $0.10 per common share for a period of --- 24 months following the closing date of the offering. A corporate finance fee of $12,500 was also paid upon closing of the offering. The Company incurred share issue costs of $59,241 in connection with the offering, which included the fair value of agent’s warrants of $10,985 calculated using the Black Scholes Option Pricing Model using the following assumptions: i) exercise price per share of $0.10; ii) expected share price volatility of 119%; iii) risk free interest rate of 2.21%; iv) no dividend yield; v) expected life of 2 years and vi) share price on grant date of $0.10. There were no share issued during fiscal 2024 or year to date fiscal 2025. Escrow shares Upon completion of the IPO and pursuant to escrow agreements dated January 18, 2022 and March 18, 2022, 4,262,500 common shares issued to directors, officers and consultants of the Company prior to the IPO will be subject to escrow until the final exchange bulletin approving the Company QT is issued, after which under the escrow agreement, 25% of the escrowed common shares will be released over a period of eighteen months. Agent’s warrants In connection with the Company’s IPO, an aggregate of 180,000 non-transferable agent’s warrants were issued to the agent. The agent’s warrants are exercisable at a price of $0.10 per common share for a period of two years from the date that the common shares of the Company are listed on the Exchange. Pursuant to the Exchange Policy 2.4, the agent agrees that only 50% of the common shares obtained by the agent pursuant to the exercise of the agent’s warrants may be sold prior to the completion of a QT, and the remaining balance may only be sold after completion of the QT. The Agent’s warrants expired unexercised on March 31, 2024. The Company recorded $10,985 in reserves for the agent’s warrants issued. Stock Options 625,000 stock options are outstanding at August 31, 2025 with a weighted average exercise price of $0.10. Reserves Reserves represent the fair value of stock options or agent’s warrants until such time that the share-based instruments are exercised, at which time the corresponding amount will be transferred to share capital. Kua Investments Inc. Notes to the Financial Statements For the nine months ended August 31, 2025 (Expressed in Canadian dollars) (Unaudited) 16 4. CAPITAL MANAGEMENT The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. In the management of capital, the Company includes its components of equity. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue debt, acquire or dispose of assets. In order to maximize ongoing capital management efforts, the Company does not pay out dividends. Management reviews its capital management approach on an ongoing basis and believes that this approach is reasonable given the relative size of the Company. The Company is not subject to externally imposed capital requirements. 5. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Fair values The Company’s financial instruments are cash, due from related parties and accounts payable. The fair value of the Company’s accounts payable approximates its carrying value, due to i --- ts short term to maturity. The Company’s cash is measured at fair value under the fair value hierarchy based on level one quoted prices in active markets for identical assets or liabilities. The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk. Credit risk Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to credit risk consist of cash. The Company deposits cash with high credit quality financial institutions as determined by rating agencies or to the trust accounts of legal counsel. As a result, the Company is not subject to significant credit risk on its cash. Kua Investments Inc. Notes to the Financial Statements For the nine months ended August 31, 2025 (Expressed in Canadian dollars) (Unaudited) 16 5. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued…) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through its capital management as outlined in Note 4. The Company will need to raise additional financing to complete a Qualifying Transaction. Liquidity risk has been assessed as high. Market Risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, commodity and equity prices, and foreign exchange rates. (a) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The risk that the Company will realize a loss as a result of a change in interest rates is minimal, as the Company does not have any variable interest rate investments or financial liabilities. (b) Price risk The Company is exposed to price risk with respect to equity prices. Equity price risk is defined as the potentially adverse impact on the Company’s ability to obtain equity financing due to movements in individual equity prices or general movements in the level of the stock market. The Company closely monitors individual equity movements and the stock market to determine the appropriate course of action to be taken by the Company. (c) Currency risk The Company is not exposed to significant currency risk, as the majority of its transactions are in Canada, using the Canadian dollar.