SEDAR Interim Financial Statements

Condensed Interim Consolidated Financial Statements of MOUNTAIN VALLEY MD HOLDINGS INC. For the three and nine months ended December 31, 2025 and 2024 (Unaudited - Expressed in thousands of Canadian Dollars) NOTICE TO READER Under National Instrument 51-102, Part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, 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 condensed interim consolidated financial statements have been prepared by and are the responsibility of the Company’s management. The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor. MOUNTAIN VALLEY MD HOLDINGS INC. Interim Condensed Consolidated Statements of Financial Position As at December 31, 2025 and March 31, 2025 (Expressed in thousands of Canadian Dollars) (Unaudited) 3 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Note December 31, 2025 $ March 31, 2025 $ Assets Current assets: Cash and cash equivalents 316 1,723 HST recoverable 26 47 Purchase consideration receivable 4 44 53 Prepaids, deposits and other 5 43 112 429 1,935 Non-current assets: Intangible assets 6 92 100 Investments in equity instruments 7 - 305 Capital assets 8 73 403 165 808 Total assets 594 2,743 Liabilities Current liabilities: Accounts payable and accrued liabilities 27 169 Deferred revenue 9 14 40 41 209 Non-current liabilities: Promissory note 10 89 - Total liabilities 130 209 Equity Share capital 11 53,338 53,338 Contributed surplus 11 8,458 8,457 Accumulated other comprehensive loss (2) - Deficit (61,330) (59,261) 464 2,534 Total liabilities and equity 594 2,743 Nature of operations and going concern – Note 1 Subsequent event – Note 17 Approved on behalf of the Board: “Dennis Hancock” “Paul Lockhard” Director Director MOUNTAIN VALLEY MD HOLDINGS INC. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars, except for per share amounts) (Unaudited) 4 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Three months ended December 31, Nine months ended December 31, Note 2025 $ 2024 $ 2025 $ 2024 $ Revenue 13 3 39 31 Expenses: Amortization of intangible assets 6 3 31 8 74 Depreciation of capital assets and right-of- use assets 10 31 53 92 General and administrative 437 710 1,592 2,645 Research and development 30 31 83 50 Gain on receipt of inventory at zero cost - - - (406) Stock-based compensation 11 - 21 1 142 Loss before other items 467 821 1,698 2,566 Other items Loss (gain) on investments in equity instruments 7 305 306 305 (113) Loss on disposal of equipment 8 76 - 76 - Interest income (1) (20) (10) (97) Net loss for the period 847 1,107 2,069 2,356 Other comprehensive loss Foreign currency translation 2 - 2 - Total comprehensive loss for the period 849 1,107 2,071 2,356 Basic and diluted loss per share (0.00) (0.00) (0.01) (0.01) Weighted average number of shares outstanding – basic and diluted 352,354,962 352,354,962 352,354,962 347,15 --- 4,246 MOUNTAIN VALLEY MD HOLDINGS INC. Interim Condensed Consolidated Statements of Changes in Equity For the nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars, except for per share amounts) (Unaudited) 5 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Common Shares Number of Shares Common Shares Share Capital $ Contributed surplus $ AOCI1 $ Deficit $ Total Shareholders’ Equity $ Balance at March 31, 2024 329,653,424 52,203 8,294 - (51,789) 8,708 Shares issued per license agreement 22,701,538 1,135 - - - 1,135 Vesting of stock options - - 142 - - 142 Net loss for the period - - - - (2,356) (2,356) Balance at December 31, 2024 352,354,962 53,338 8,436 - (54,145) 7,629 Vesting of stock options - - 21 - - 21 Net loss for the period - - - - (5,116) (5,116) Balance at March 31, 2025 352,354,962 53,338 8,457 - (59,261) 2,534 Vesting of stock options - - 1 - - 1 Net loss for the period - - - - (2,069) (2,069) Foreign currency translation - - - (2) - (2) Balance at December 31, 2025 352,354,962 53,338 8,458 (2) (61,330) 464 1 Accumulated other comprehensive loss MOUNTAIN VALLEY MD HOLDINGS INC. Interim Condensed Consolidated Statements of Cash Flows For the nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 6 The accompanying notes form an integral part of these interim condensed consolidated financial statements. 2025 $ 2024 $ Cash (used in) provided by: Operating activities: Net loss for the period (2,069) (2,356) Adjustments for: Amortization of intangible assets 8 74 Depreciation of capital asset and right-of-use assets 53 92 Gain on receipt of inventory at zero cost - (406) Stock-based compensation 1 142 Write-down of inventory - 55 Loss on disposal of equipment 76 - Loss (gain) from investments in equity instruments 305 (113) (1,626) (2,512) Changes in non-cash working capital: HST recoverable 21 3 Inventory - (283) Purchase consideration receivable 9 7 Prepaids, deposits and other 69 (342) Accounts payable and accrued liabilities (142) (122) Deferred revenue (26) (28) Cash used in operating activities (1,695) (3,277) Investing activities: Proceeds on disposal of equipment 201 - Purchase of capital assets - (4) Loan receivable - (272) Cash provided by (used in) investing activities 201 (276) Financing activities: Promissory note received 89 - Cash provided by financing activities 89 - Effect of exchange rate changes (2) - Decrease in cash and cash equivalents (1,407) (3,553) Cash and cash equivalents, beginning 1,723 5,915 Cash and cash equivalents, ending 316 2,362 Non-cash transactions – Note 16 MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 7 1. NATURE OF OPERATIONS AND GOING CONCERN Mountain Valley MD Holdings Inc. (“MVMDH” or the “Company”), was incorporated under the provisions of the British Columbia Business Corporations Act on March 8, 2005. The Company is a biotech company focused on advancing solutions to optimize human, animal, and plant health. The Company’s common shares trade on the Canadian Securities Exchange under the ticker symbol “MVMD.” The address of the Company’s registered and records office is 1100 – 1111 Melville Street, Vancouver, BC V6E 3V6 and the principal place of business is 260 Edgeley Boulev --- ard, Unit 4, Vaughan, Ontario, Canada, L4K 3Y4. These condensed interim consolidated financial statements have been prepared on the assumption that the Company and its subsidiaries will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities for at least twelve months from December 31, 2025. As at December 31, 2025, the Company has cash and cash equivalents of $316 (March 31, 2025 - $1,723) and working capital of $388 (March 31, 2025 - $1,726). For the nine months ended December 31, 2025, the Company incurred a net loss of $2,069 (2024 - $2,356) and used cash in operating activities of $1,695 (2024 - $3,277). These factors indicate a material uncertainty that casts significant doubt on the ability of the Company to continue as a going concern. The Company’s ability to continue its operations and to realize its assets at their carrying values and meet its obligations is dependent upon generating revenues or obtaining additional financing sufficient to cover its operating costs. There is no assurance that the steps management take will be successful. The Company has also implemented measures to conserve cash in order to extend available resources while pursuing financing opportunities. These unaudited condensed interim consolidated financial statements do not reflect any adjustments in the carrying values of the assets and liabilities, the reported expenses, and the balance sheet classifications used, that may be necessary if the Company were to be unable to continue as a going concern. Such adjustments could be material. 2. BASIS OF PRESENTATION a) Statement of compliance These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). Therefore, these interim condensed consolidated financial statements do not include all the information and note disclosures required by IFRS for annual financial statements and should be read in conjunction with the annual consolidated financial statements for the year ended March 31, 2025, which have been prepared in accordance with IFRS. The Company’s board of directors approved the release of these interim condensed consolidated financial statements on February 27, 2026. b) Basis of measurement In preparing the interim condensed consolidated financial statements, the Company makes judgments in applying its accounting policies. The judgments that have the most significant effect on the amounts recognized in the consolidated financial statements are outlined below in section c). In addition, the preparation of consolidated financial statements in conformity with IFRS requires the use of estimates that affect the amounts reported and disclosed in the consolidated financial statements and related notes. These estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ materially from the amounts included in the consolidated financial statements. Information about assumptions and other sources of estimation uncertainty as at December 31, 2025 that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within t --- he next year are outlined below in section c). MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 8 c) Areas of significant judgment and estimation uncertainty In preparation of the interim condensed consolidated financial statements, the significant estimates and judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended March 31, 2025. 3. MATERIAL ACCOUNTING POLICIES These interim condensed consolidated financial statements have been prepared on a basis consistent with the significant accounting policies disclosed in the annual financial statements for the year ended March 31, 2025. Accordingly, they should be read in conjunction with the annual consolidated financial statements for the year ended March 31, 2025. a) New and revised standards issued but not yet effective In April 2024, the IASB issued IFRS 18 – Presentation and Disclosure in Financial Statements that will replace IAS 1 – Presentation of Financial Statements. The new standard aims to improve the quality of financial reporting by: (i) requiring defined subtotals in the statement of profit or loss; (ii) requiring disclosure about management defined performance measures; and (iii) adding new principles for aggregation and disaggregation of information. The new standard will be effective for annual periods beginning on or after January 1, 2027. Early adoption is permitted. The Company is in the process of assessing the impact of the standard on the consolidated financial statements. In May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7. These amendments aim to enhance the clarity and consistency of financial reporting for various types of financial instruments and their related disclosures by (i) clarifying the date of recognition and derecognition for certain financial assets and liabilities, including a new exception for financial liabilities settled through an electronic cash transfer system, (ii) providing held to determine whether a financial asset meets the Solely Payments of Principal and Interest (SPPI) criterion, (iii) introducing new disclosures for instruments with contractual terms that may alter cash flows, such as financial instruments linked to the achievement of environmental, social, and governance (ESG) targets, and (iv) updating the disclosure requirements for equity instruments designated at fair value through other comprehensive income (FVOCI). The new standard will be effective for annual periods beginning on or after January 1, 2026. The Company is in the process of assessing the impact of the standard on the consolidated financial statements. 4. PURCHASE CONSIDERATION RECEIVABLE On April 4, 2019, the Company entered into a subscription and share purchase agreement with Sativa Nativa SAS (“Sativa Nativa”). Sativa Nativa is a company incorporated in the Republic of Columbia and is a cultivator of cannabis. On May 31, 2022, the Company signed a share purchase agreement to dispose of its shareholdings in Sativa Nativa for $426. The Company received $366 on July 5, 2022, $10 on April 29, 2024, and $7 on June 11, 2025. During the nine months ended December 31, 2025, a foreign exchange gain of $1 was recognized. As at December --- 31, 2025, the remaining receivable of $44 is recorded as purchase consideration receivable (March 31, 2025 - $53). 5. PREPAID, DEPOSITS AND OTHERS December 31, 2025 $ March 31, 2025 $ Prepaid insurance, listing fees and other 30 99 Lease deposits 13 13 43 112 MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 9 6. INTANGIBLE ASSETS The Company’s intellectual property and technology-based intangible assets consist of the following: Intellectual Property Agrarius License Total $ $ $ Cost: As at March 31, 2024 1,456 - 1,456 Additions - 1,135 1,135 Impairment - (1,135) (1,135) As at March 31, 2025 and December 31, 2025 1,456 - 1,456 Accumulated amortization: As at March 31, 2024 1,346 - 1,346 Depreciation 10 95 105 Impairment - (95) (95) As at March 31, 2025 1,356 - 1,356 Depreciation 8 - 8 As at December 31, 2025 1,364 - 1,364 Carrying amounts: As at March 31, 2025 100 - 100 As at December 31, 2025 92 - 92 a) On December 20, 2019, the Company entered into an intellectual property asset purchase agreement with a private Delaware corporation in the business of developing, manufacturing and licensing desiccated liposomes. The Company acquired a portfolio of patents and trademarks. Management determined all the value is attributable to the patents. During the nine months ended December 31, 2025, the Company did not identify any additional impairment indicators, and the carrying amount was $92 (March 31, 2025 - $100). b) On April 24, 2024, the Company entered into an Amended and Restated Supply and License Agreement (the “April 2024 Agreement”) with Agrarius Corp. (“Agrarius”), a private US corporation, whereby , among other things, the Company acquired an exclusive license to sell product using Agrarius’ agricultural plant signaling technology (the “Technology”) in North America, Mexico, South America, Central America and the Caribbean, while retaining its global non-exclusive rights outside of the exclusive territories. The April 2024 Agreement also implements a performance guarantee program (“PGP”) for farm operations in the United States, whereby the prospective client will be required to pay for the Agrarius product only after it has achieved a minimum agreed performance enhancement on the targeted crop. Under the terms of the April 2024 Agreement, the Company: • Issued 22,701,538 common shares at the fair value of $1,135 for the exclusive license in certain territories; • Paid US$240 ($328) for the rights in the PGP; • Paid US$275 ($376) for prepaid inventory of the product and, • Received 40,000 additional units of inventory of the product for no consideration. • Agreed to invest a minimum of US$1,000 per calendar year, including but not limited to labour, inventory and logistics. The Company recorded the exclusive license as a definite life intangible asset in the consolidated statement of financial position measured at the fair value of common shares issued of $1,135. As at March 31, 2025, the Company determined that the intangible asset related to the Agrarius license was fully impaired due to significant uncertainties around the timing and volume of future sales. As a result, the Company recognized an impairment loss for the full carrying amount of $1,040. MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and --- nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 10 7. INVESTMENTS IN EQUITY INSTRUMENTS The following summarizes the Company’s investments at December 31, 2025 and for the nine months ended December 31, 2025: March 31, 2025 $ Additions $ Change in fair value $ Disposals $ December 31, 2025 $ Circadian Wellness Corp. (a) 305 - (305) - - The following summarizes the Company’s investments at March 31, 2025 and during the year ended March 31, 2025: March 31, 2024 $ Additions $ Change in fair value $ Disposals $ March 31, 2025 $ Circadian Wellness Corp. (a) 611 - (306) - 305 Agrarius Corp. 203 - 329 (532) - Agroresults Inc. 115 - 90 (205) - 929 - 113 (737) 305 a) Circadian Wellness Corp. The Company owns 1,222,222 shares (post 3:1 share split on May 27, 2021) of Circadian Wellness Corp. (“Circadian”), a licensee of the Company (Note 9) and a private Ontario corporation focusing on mushroom farming, extraction, clinical research and development, and end-user consumer health and wellness products and retreats. As at March 31, 2024, management fair valued Circadian using Level 3 inputs under the IFRS 13 fair value hierarchy. During the year ended March 31, 2024, the Company recorded a change in value of investment of $611 based on the most recent private financing in progress by Circadian. During the year ended March 31, 2025, management determined that the value had decreased to an estimated value of $305. During the nine months ended December 31, 2025, management assessed the fair value of the investment and determined that its estimated fair value was negligible. MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 11 8. CAPITAL ASSETS Lab Equipment $ Leasehold Improvements $ Total $ Cost: At March 31, 2024 717 109 826 Additions - 4 4 At March 31, 2025 717 113 830 Disposal (490) - (490) At December 31, 2025 227 113 340 Accumulated amortization: At March 31, 2024 216 88 304 Depreciation 100 23 123 At March 31, 2025 316 111 427 Depreciation 51 2 53 Disposal (213) - (213) At December 31, 2025 154 113 267 Carrying amounts: At March 31, 2025 401 2 403 At December 31, 2025 73 - 73 On November 11, 2025, the Company entered into an asset purchase agreement with JAG Alliance, LLC for the sale and transfer of lab equipment for a total purchase price of US$365, of which $201 (US$150) was received and the balance to be made in installments related to future manufacturing production. Due to the variable nature of the consideration, amounts are recognized only when receipt becomes unconditional. As a result of the sale and transfer, the Company recognized a loss on disposal of equipment of $76 during the nine months ended December 31, 2025. 9. DEFERRED REVENUE On February 25, 2021, the Company entered into a commercial license agreement with Circadian. The license agreement provides for, among other things, the use and application of the Company’s Quicksome™ technology to mushroom nutraceutical products in consideration of ongoing product royalties and an initial advance payment in the amount of $250, made up of $200 cash and $50 of equity shares of the privately held corporation. During the three and nine months ended December 31, 2025, the Company applied $nil and $nil (2024 - $nil and $28) of formulation work and $nil and $26 of product --- royalties (2024 - $nil and $nil) to revenue. 10. PROMISSORY NOTE PAYABLE On December 23, 2025, the Company entered into an unsecured promissory note agreement for gross proceeds of $89 (US$65) maturing on June 23, 2027. The promissory note bears interest at 8% per annum and the accrued interest is payable on the maturity date. Subsequent to December 31, 2025, the Company entered into an additional promissory note for an additional US$65. 11. SHARE CAPITAL a) Share Capital Authorized The authorized share capital of the Company consists of an unlimited number of Common Shares without par value. MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 12 Issued and outstanding The Company has issued share capital of 352,354,962 Common Shares at December 31, 2025 (March 31, 2025 - 352,354,962). Share issuances During the nine months ended December 31, 2025, no shares were issued. During the year ended March 31, 2025, the Company issued 22,701,538 common shares at the fair value of $1,135 for the exclusive license and rights acquired from Agrarius under the April 2024 Agreement (Note 6). b) Stock Options The Company has a stock option plan, under which the Board of Directors is authorized to grant options to employees, directors, officers and consultants, enabling them to acquire up to 10% of the issued and outstanding share capital of the Company. The exercise price of each option is based on the market price of the Company’s share as calculated on the date of grant or the date preceding the date of grant, whichever is higher. The options can be granted for a maximum term of ten years, as determined by the Company’s Board of Directors. Options granted to investor relations consultants are subject to vesting provisions, with no more than ¼ vesting during any three-month period. Vesting provisions for other options are determined by the Company’s Board of Directors. The activity of the stock options during the nine months ended December 31, 2025 and the year ended March 31, 2025 is as follows: Stock Options # Weighted Average Exercise price $ Outstanding, March 31, 2024 17,768,500 0.14 Granted 3,000,000 0.06 Expired (3,585,000) 0.07 Forfeited (2,450,000) 0.30 Outstanding, March 31, 2025 14,733,500 0.11 Expired (4,423,500) 0.05 Forfeited (825,000) 0.17 Outstanding, December 31, 2025 9,485,000 0.13 Exercisable, December 31, 2025 9,485,000 0.13 The summary of the Company’s stock options outstanding and exercisable as at December 31, 2025, is as follows: Expiry date Stock Options Outstanding # Stock Options Exercisable # Exercise price $ Remaining contractual life (Years) July 14, 2026 2,040,000 2,040,000 0.27 0.53 January 25, 2027 1,775,000 1,775,000 0.22 1.07 April 7, 2027 50,000 50,000 0.13 1.27 March 31, 2028 2,295,000 2,295,000 0.05 2.18 September 11, 2028 500,000 500,000 0.05 2.70 April 4, 2029 2,825,000 2,825,000 0.06 3.26 9,485,000 9,485,000 0.13 1.96 MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 13 12. RELATED PARTY TRANSACTIONS a) Key management compensation Key management consists of personnel having the authority and responsibility for planning, directing and controlling the activities of the Company, which --- are the directors and executive officers of the Company. The following transactions were incurred with key management during the three and nine months ended December 31, 2025 and 2024: Three months ended December 31, Nine months ended December 31, 2025 $ 2024 $ 2025 $ 2024 $ Consulting fees CEO 44 44 131 131 CFO 26 26 77 85 Director fees 13 24 53 73 Stock-based compensation CEO - 7 - 47 CFO - 2 - 15 Directors - 2 - 12 83 105 261 363 b) Transactions with other related parties A related party exists when one party has the ability to directly or indirectly exercise control, joint control or significant influence over the other, or is a member, or close family member, of a member of the key management personnel of the Company. Related party transactions are in the normal course of operations and are measured at exchange amounts established and agreed upon by the parties. Included in accounts payable and accrued liabilities at December 31, 2025 is an amount of $10 (March 31, 2025 - $23) due to related parties. These amounts are non-interest bearing and have no specific terms of repayment. During the three and nine months ended December 31, 2025, the Company incurred $25 and $75 (2024 - $25 and $74) of consulting fees (IT and branded communications management) with a close family member of a member of the key management personnel of the Company. The business purpose of the transactions was for ongoing management of all digital assets of the Company including websites, emails, social platforms and file share databases as well as branded elements including marketing materials. During the three and nine months ended December 31, 2025, the Company incurred $4 and $12 (2024 - $4 and $12) of office fees with a close family member of a member of the key management personnel of the Company. The business purpose of the transactions was for general office administration and maintenance. 13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Company’s financial instruments include cash and cash equivalents, purchase consideration receivable, accounts payable and accrued liabilities and promissory note. The carrying amounts of these financial instruments are a reasonable estimate of their fair values based on their current nature and current market rates for similar financial instruments. Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of inputs used to estimate the fair values. The three levels of the fair value hierarchy are: MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 14 Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and Level 3 – Inputs that are not based on observable market data. As at December 31, 2025, the Company did not have any financial assets and liabilities which are measured at fair value, other than equity investments. There were no transfers between Level 1, 2 or 3 during the nine months ended December 31, 2025. a) Credit risk Credit risk is the risk that the financial benefits of contracts with a specific counterparty will be lost if a counterparty defaults on its obligations under the contract. Credit risk --- arises from cash and cash equivalents, loan receivable and purchase consideration receivable. The amount of credit risk related to cash and cash equivalents is considered insignificant as the Company’s funds are held with a large Canadian bank. The credit risk for the cash and cash equivalent, loan receivable and purchase consideration receivable is monitored quarterly, and any change is reflected as an adjustment through expected credit loss. b) 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 the management of its capital structure. The Company monitors and reviews current and future cash requirements and matches the maturity profile of financial assets and liabilities. As at December 31, 2025, the Company has cash and cash equivalents of $316 (March 31, 2025 - $1,723) and working capital of $388 (March 31, 2025 - $1,726). For the nine months ended December 31, 2025, the Company incurred a net loss of $2,069 (2024 - $2,356) and used cash in operating activities of $1,695 (2024 - $3,277). Refer to Note 1 for going concern risk. The Company does not have sufficient cash and cash equivalents to continue operations for the next 12 months. The Company will be required to complete a debt or equity financing, or dispose of assets, in order to continue operations. As at December 31, 2025, the Company’s financial liabilities have contractual maturities as summarized below: 0-12 months $ Due within 1-2 years $ 2-3 years $ Accounts payable and accrued liabilities 27 - - Promissory note - 89 - c) Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices and is comprised of currency risk, interest rate risk, and other price risk. Sensitivity analysis The Company has completed a sensitivity analysis to estimate the impact on comprehensive earnings which a change in the equity investments would have on the Company during the nine months ended December 31, 2025. As a result, a 10% change in the equity investments will translate to a $nil (March 31, 2025 - $31) gain or loss from equity investments. MOUNTAIN VALLEY MD HOLDINGS INC. Notes to the Interim Condensed Consolidated Financial Statements For the three and nine months ended December 31, 2025 and 2024 (Expressed in thousands of Canadian Dollars) (Unaudited) 15 14. SEGMENT INFORMATION a) Description of segments Management has determined that the Company has one reportable operating segment, being research and development of its delivery, solubility, and adjuvant technologies. This segment accounts for all of the Company’s operating expenses. Determination of the operating segment was based on the level of financial reporting to the Company’s chief decision makers. The Company’s revenue during the nine months ended December 31, 2025 was derived from Canada. b) Entity-wide disclosure The total non-current assets other than financial instruments, broken down by location of the assets, is shown below: December 31, 2025 $ March 31, 2025 $ Canada 92 111 United States 73 392 165 503 15. CAPITAL MANAGEMENT The Company manages its cash, common shares, warrants and share purchase options as capital. The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern and to maintain a flexible capital structure which optimizes the costs of capital at an ac --- ceptable risk. 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, acquire or dispose of assets or adjust the amount of cash held. 16. NON-CASH TRANSACTIONS Investing and financing activities that do not have a direct impact on current cash flows are excluded from the consolidated statements of cash flows. During the nine months ended December 31, 2025, there were no investing and financing transactions excluded from the condensed interim consolidated statement of cash flows. During the nine months ended December 31, 2024, the following transactions were excluded from the statement of cash flows: a) Issuance of 22,701,538 common shares at the fair value of $1,135 pursuant to the April 2024 Purchase Agreement with Agrarius (Note 6); and b) Equity investments exchanged for $737 of prepaid inventory. 17. SUBSEQUENT EVENT On January 13, 2026, the Company entered into an unsecured promissory note agreement for gross proceeds of US$65 maturing on July 13, 2027. The promissory note bears interest at 8% per annum and the accrued interest is payable on the maturity date.