SEDAR Interim Financial Statements

Reko International Group Inc. Interim Condensed Consolidated Financial Statements (unaudited) For the six months ended January 31, 2026 and 2025 Notice of No Auditor Review of Interim Condensed Consolidated Financial Statements The accompanying unaudited condensed interim consolidated financial statements of Reko International Group Inc. for the six months ended January 31, 2026 have been prepared by Management and approved by the Board of Directors on March 5, 2026. The Company’s independent auditor has not performed a review of these interim condensed 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. REKO INTERNATIONAL GROUP INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 2 January 31, 2026 July 31, 2025 ASSETS Current Cash $ 13,005 $ 17,996 Accounts receivable 8,501 9,619 Work-in-progress 4,038 3,670 Non-hedging financial derivatives (Note 4) 37 - Income tax receivable 137 - Prepaid expenses and other current assets 1,035 825 26,753 32,110 Capital assets (Note 5) 25,082 24,024 Deferred income tax 1,231 790 $ 53,066 $ 56,924 LIABILITIES Current Accounts payable and accrued liabilities $ 4,915 $ 4,701 Unearned revenue on work-in-progress 224 35 Non-hedging financial derivatives (Note 4) - 18 Income taxes payable 230 553 Current portion of long-term debt and lease liabilities (Note 6) 1,370 4,139 6,739 9,446 Long-term debt and lease liabilities (Note 6) 4,544 5,264 11,283 14,710 SHAREHOLDERS’ EQUITY Share capital (Note 7) 15,958 16,014 Contributed surplus (Note 8) 809 848 Retained earnings 25,016 25,352 41,783 42,214 $ 53,066 $ 56,924 REKO INTERNATIONAL GROUP INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 3 SHARE CAPITAL CONTRIBUTED SURPLUS RETAINED EARNINGS TOTAL EQUITY Balance at July 31, 2024 $ 16,235 $ 839 $ 24,307 $ 41,381 Share based compensation (Notes 7 and 8) 19 11 - 30 Share repurchases (Note 7) (170) - - (170) Net income - - 400 400 Balance at January 31, 2025 $ 16,084 $ 850 $ 24,707 $ 41,641 Balance at July 31, 2025 $ 16,014 $ 848 $ 25,352 $ 42,214 Share based compensation (Notes 7 and 8) 43 (39) - 4 Share repurchases (Note 7) (99) - - (99) Dividends (1,097) (1,097) Net income - - 761 761 Balance at January 31, 2026 $ 15,958 $ 809 $ 25,016 $ 41,783 REKO INTERNATIONAL GROUP INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 4 For the three months ended For the six months ended January 31, 2026 January 31, 2025 January 31, 2026 January 31, 2025 Sales $ 10,165 $ 10,786 $ 19,216 $ 21,025 Costs and expenses Cost of sales 7,696 8,142 14,297 15,388 Depreciation 886 990 1,806 1,986 8,582 9,132 16,103 17,374 Gross profit 1,583 1,654 3,113 3,651 Selling and administrative 1,181 1,552 2,400 3,046 Income before the following items 402 102 713 605 Foreign exchange loss 362 338 396 731 Other income (98) (79) (194) (105) Proceed --- s of insurance, net (16) - (16) - Gain on sale of capital assets - (1) (56) (1) Interest on long-term debt and lease liabilities 72 122 145 244 Interest income, net (59) (128) (174) (243) 261 252 101 626 Income (loss) before income taxes 141 (150) 612 (21) Current taxes 380 - 380 - Deferred income tax recovery (616) (463) (529) (421) Income tax recovery (236) (463) (149) (421) Net income and comprehensive income $ 377 $ 313 $ 761 $ 400 Earnings per common share (Note 9) Basic $ 0.07 $ 0.05 $ 0.14 $ 0.07 Diluted 0.07 0.05 0.14 0.07 REKO INTERNATIONAL GROUP INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 5 For the six months ended For the six months ended January 31, 2026 January 31, 2025 OPERATING ACTIVITIES Net income for the period $ 761 $ 400 Adjustments for: Depreciation 1,806 1,986 Income tax provision (149) (421) Interest (income) expense, net (29) 1 Change in non-hedging financial derivatives (55) 992 Unrealized foreign exchange loss (77) 293 Stock-based compensation 4 30 Gain on sale of capital assets (56) (1) 2,205 3,280 Net change in non-cash working capital (Note 14) 175 4,686 Interest received (paid) 29 (1) CASH PROVIDED BY OPERATING ACTIVITIES 2,409 7,965 FINANCING ACTIVITIES Payment of dividends (1,097) - Cost of repurchase of capital stock (99) (170) Repayments of long-term debt and lease liabilities (3,412) (800) CASH USED IN FINANCING ACTIVITIES (4,608) (970) INVESTING ACTIVITIES Investment in capital assets (2,920) (270) Proceeds from insurance, net 16 - Proceeds on sale of capital assets 112 1 CASH USED IN INVESTING ACTIVITIES (2,792) (269) Net change in cash (4,991) 6,726 Cash, beginning of period 17,996 11,434 Cash, end of period $ 13,005 $ 18,160 REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 6 1. SIGNIFICANT ACCOUNTING POLICIES Nature of operations Reko International Group Inc. (the “Company” or “Reko”) is a diversified, technology-driven manufacturing organization located in Southwestern Ontario with areas of expertise including robotic factory automation solutions and precision machining of large, critical parts. The Company, incorporated under the laws of Ontario, has several subsidiaries, which operate or exist in the Province of Ontario in Canada and the State of Michigan in the United States. Reko is listed on the TSX Venture Exchange under the symbol REKO. The Company’s shares are traded in Canadian dollars. The registered head office is located at 469 Silver Creek Industrial Drive, Lakeshore, Ontario, Canada. All amounts are in thousands and in Canadian dollars, unless otherwise noted. Statement of compliance The unaudited interim condensed consolidated financial statements were authorized for issue by the Board of Directors on March 5, 2026. These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting. These unaudited interim conden --- sed consolidated financial statements should be read in conjunction with the Company’s annual financial statements for the year ended July 31, 2025, which have been prepared in accordance with IFRS as issued by the IASB. The accounting policies adopted are consistent with the accounting policies and methods as those used in the Company’s audited consolidated annual financial statements for the year ended July 31, 2025 except as noted below. Basis of measurement These unaudited interim consolidated financial statements were prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value. Basis of consolidation These unaudited interim consolidated financial statements represent the accounts of Reko and its subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when Reko has the power, directly or indirectly, to govern the financial and operating policies of an entity and be exposed to the variable returns from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. All significant intercompany balances and transactions have been eliminated. Intragroup balances, and any unrealized gains and losses or income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. Reko’s subsidiaries are as follows: Subsidiary Location Percentage ownership Consolidation Concorde Precision Machining Inc. Ontario 100% Full Reko Automation Group Inc. Ontario 100% Full Reko International Holdings Inc. Michigan 100% Full REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 7 Reko International Services Inc. Michigan 100% Full Concorde USA, LLC Michigan 100% Full 2. GEOGRAPHIC INFORMATION The following information reflects the geographic breakdown of revenues and capital assets based on the physical location of the Company’s operations. The Company does not track revenues based on ship to locations. Six months ended January 31, 2026 REVENUES CAPITAL ASSETS Canada $ 19,212 $ 25,082 United States 4 - $ 19,216 $ 25,082 Six months ended January 31, 2025 REVENUES CAPITAL ASSETS Canada $ 20,938 $ 24,139 United States 87 - $ 21,025 $ 24,139 3. FINANCIAL INSTRUMENTS The Company’s financial instruments consist of cash, accounts receivable, non-hedging financial derivatives, accounts payable and accrued liabilities and long-term debt. Fair Value The Company has determined the estimated fair value of its financial instruments based on appropriate valuation methodologies; however, considerable judgment is required to develop these estimates. Accordingly, these estimated fair values are not necessarily indicative of the amounts the Company could realize in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of financial instruments are described below: Accounts receivable, accounts payable and accrued liabilities Due to the short period of maturity of the instruments, the carryi --- ng values as presented in the consolidated balance sheets are reasonable estimates of fair value. Fair value hierarchy The following table provides an analysis of cash, non-hedging financial derivatives and long-term debt that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. − Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; − Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and, − Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 8 LEVEL 1 LEVEL 2 LEVEL 3 January 31, 2026 Cash $ 13,005 $ - $ - $ 13,005 Non-hedging financial derivatives - 37 - 37 $ 13,005 $ 37 $ - $ 13,042 LEVEL 1 LEVEL 2 LEVEL 3 July 31, 2025 Cash $ 17,996 $ - $ - $ 17,996 Non-hedging financial derivatives - (18) - (18) $ 17,996 $ (18) $ - $ 17,978 Non-hedging financial derivatives The Company’s non-hedging financial derivatives are the Company’s future forward exchange contracts and are subject to fluctuations in foreign exchange rates between the Canadian and US dollar. The Company’s non-hedging financial derivatives are valued based on discounting the future cash outflows associated with the contract based on the closing foreign exchange rate between the Canadian and US dollar. Long-term debt The Company’s long-term debt of CDN $2,741 is subject to fixed interest rates. The Company’s long-term debt is valued based on discounting the future cash outflows associated with the long-term debt. The discount rate is based on the incremental premium above market rates for Government of Canada securities of similar duration. In each period thereafter, the incremental premium is held constant while the Government of Canada security is based on the then current market value to derive the discount rate. 4. NON-HEDGING FINANCIAL DERIVATIVES The Company’s non-hedging financial derivatives are the Company’s future forward exchange contracts and are subject to fluctuations in foreign exchange rates between the Canadian and US dollar. The Company’s non-hedging financial derivatives are valued based on discounting the future cash outflows associated with the contract based on the closing foreign exchange rate between the Canadian and US dollar. The mark-to-market value on these financial instruments as at January 31, 2026 was an unrealized gain of $37 (July 31, 2025- unrealized loss $18), which has been recorded in net income for the period. As at January 31, 2026 CURRENCY NOTIONAL USD EQUIVALENT FLOOR RATE CEILING RATE FORWARD RATE CONTINGENT NOTIONAL USD FAIR VALUE ASSET (LIABILITY) MATURITY FORWARDS Sell USD / Buy CAD $1,050 NA NA 1.3895 NA $33 0 – 3 months OPTIONS Sell USD / Buy CAD $200 1.3870 1.3870 NA $400 $4 0 – 4 months As at July 31, 2025 CURRENCY NOTIONAL USD EQUIVALENT FLOOR RATE CEILING RATE FORWARD RATE CO --- NTINGENT NOTIONAL USD FAIR VALUE ASSET (LIABILITY) MATURITY OPTIONS Sell USD / Buy CAD $1,625 1.3700 1.4000 NA $2,500 ($18) 0 – 5 months REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 9 5. CAPITAL ASSETS Capital assets are comprised of: LAND BUILDINGS MACHINERY AND EQUIPMENT LEASEHOLD IMPROVEMENTS EQUIPMENT UNDER CONSTRUCTION TOTAL Cost Balance at July 31, 2024 $ 661 $ 14,922 $ 61,218 $ 869 $ 234 $ 77,904 Additions - - 487 - 2,396 2,883 Transfers - - 388 53 (441) - Disposals - - (3,604) - - (3,604) Balance at July 31, 2025 $ 661 $ 14,922 $ 58,489 $ 922 $ 2,189 $ 77,183 Additions - - - - 2,920 2,920 Transfers - - 898 - (898) - Disposals - - (238) - - (238) Balance at January 31, 2026 $ 661 $ 14,922 $ 59,149 $ 922 $ 4,211 $ 79,865 LAND BUILDINGS MACHINERY AND EQUIPMENT LEASEHOLD IMPROVEMENTS EQUIPMENT UNDER CONSTRUCTION TOTAL Depreciation Balance at July 31, 2024 $ - $ 6,772 $ 44,716 $ 561 $ - $ 52,049 Depreciation for the year - 443 3,373 50 - 3,866 Disposals - - (3,006) - - (3,006) Impairment - - 250 - - 250 Balance at July 31, 2025 $ - $ 7,215 $ 45,333 $ 611 $ - $ 53,159 Depreciation for the period - 214 1,563 29 - 1,806 Disposals - - (182) - - (182) Balance at January 31, 2026 $ - $ 7,429 $ 46,714 $ 640 $ - $ 54,783 Carrying value Balance at July 31, 2025 $ 661 $ 7,707 $ 13,156 $ 311 $ 2,189 $ 24,024 Balance at January 31, 2026 $ 661 $ 7,493 $ 12,435 $ 282 $ 4,211 $ 25,082 Included in the net book value of machinery and equipment are right of use assets of $3,502 (July 31, 2025- $3,954). 6. LONG-TERM DEBT AND LEASE LIABILITES The long-term debt and lease liabilities are comprised of: January 31, 2026 July 31, 2025 Mortgage payable – 5.63% (July 31, 2025 – 5.63%), repayable $26 monthly including interest, matures April 2038 with an interest rate reset date of April 2026, secured by certain land and building and an assignment of rents on the subject property $ 2,741 $ 2,817 Mortgage payable – 3.06% plus a credit spread (July 31, 2025 – 3.06%), paid in full August 10, 2025 - 2,721 Equipment lease – 2.78%, repayable $23 USD monthly including interest, due in full January 2027, and secured by the equipment 326 522 Equipment lease – 3.99%, repayable $19 USD monthly including interest, due in full April 2027, and secured by the equipment 363 526 REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 10 Equipment lease – 5.23%, repayable $18 USD monthly including interest, due in full June 2029, and secured by the equipment 837 966 Equipment lease – 5.82%, repayable $30 USD monthly including interest, due in full June 2030, and secured by the equipment 1,647 1,851 5,914 9,403 Deduct - unamortized finance fees - - - principal portion included in current liabilities 1,370 4,139 Long-term portion $ 4,544 $ 5,264 Repayments on committed facilities are scheduled as follows: YEAR Next 12 months $ 1,370 2 years 811 3 years 797 4 years 2,805 5 years 131 Thereafter - Balance of obligation $ 5,914 7. SHARE CAPITAL Share capital is comprised of: Authorized Issued Shares Amount Class A preference shares Unlimited Nil $ - Class B prefere --- nce shares Unlimited Nil - Common shares – no par value Unlimited 5,485,013 $ 15,958 Share capital transactions during the period were as follows: January 31, 2026 July 31, 2025 SHARES AMOUNT SHARES AMOUNT Outstanding, beginning of period 5,499,113 $ 16,014 5,563,413 $ 16,235 Transactions during period (14,100) (56) (64,300) (221) Outstanding, end of period 5,485,013 $ 15,958 5,499,113 $ 16,014 During the six-month period, the Company repurchased and cancelled 25,600 common shares under the normal course issuer bid for a net cost of $99. The following table presents the maximum number of shares that would be outstanding if all the dilutive “in the money” instruments outstanding, as at January 31, 2026 were exercised: Common shares outstanding at January 31, 2026 5,485,013 Stock options 34,000 5,519,013 REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 11 8. CONTRIBUTED SURPLUS Contributed surplus is comprised of: January 31, 2026 July 31, 2025 Balance, beginning of period $ 848 $ 839 Amounts in respect of exercised stock options (49) (4) Amounts in respect of the share-based compensation 10 13 Balance, end of period $ 809 $ 848 9. EARNINGS PER SHARE The calculation of basic earnings per share at January 31, 2026 was based on the net loss attributable to common shareholders and a weighted average number of common shares outstanding as follows: January 31, 2026 January 31, 2025 Basic earnings per share: Net income for the three-month period $ 377 $ 313 Average number of common shares outstanding during the period 5,489,663 5,546,446 Basic earnings per share $ 0.07 $ 0.05 Diluted earnings per share: Net income for the three-month period $ 377 $ 313 Average number of common shares outstanding during the period 5,489,663 5,546,446 ‘In the money’ stock options outstanding during the period 34,000 120,200 5,523,663 5,666,646 Diluted earnings per share $ 0.07 $ 0.05 January 31, 2026 January 31, 2025 Basic earnings per share: Net income for the six-month period $ 761 $ 400 Average number of common shares outstanding during the period 5,489,663 5,554,430 Basic earnings per share $ 0.14 $ 0.07 Diluted earnings per share: Net income for the six-month period $ 761 $ 400 Average number of common shares outstanding during the period 5,489,663 5,554,430 ‘In the money’ stock options outstanding during the period 34,000 120,200 5,523,663 5,674,630 Diluted earnings per share $ 0.14 $ 0.07 REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 12 10. STOCK-BASED COMPENSATION The Company has established a stock option plan for directors, officers, and key employees. The terms of the plan state that the aggregate number of shares which may be issued and sold will not exceed 10% of the issued and outstanding common shares of the Company on a non-diluted basis. The issue price of the shares shall be determined at the time of grant based on the closing market price of the shares on the specified date of issue. Options shall be granted for a period of five years. At the directors’ discretion, the vesting progression is 30% in the year of grant, 30 --- % in the second year after grant and 40% in the third year after the grant. Options given to outside directors vest immediately and can be exercised immediately. As at January 31, 2026, the following options were outstanding: NUMBER OF OPTIONS EXERCISE PRICE EXPIRY 10,000 $ 4.90 2027 45,000 $ 4.65 2028 45,000 $ 4.80 2029 25,000 $ 4.70 2029 15,000 $ 4.55 2029 50,000 $ 3.20 2030 90,000 $ 3.70 2031 The weighted average of the options is as follows: January 31, 2026 January 31, 2025 NUMBER OF OPTIONS WEIGHTED AVERAGE EXERCISE PRICE NUMBER OF OPTIONS WEIGHTED AVERAGE EXERCISE PRICE Outstanding at beginning of period 295,500 $ 3.91 295,500 $ 4.03 Expired during the period (92,000) 3.21 - - Issued during the period 90,000 3.20 69,000 3.20 Exercised during the period (11,500) 2.85 (5,000) 3.20 Cancelled during the period (2,000) 3.20 (35,000) 3.97 Outstanding at end of period 280,000 $ 4.11 324,500 $ 3.87 Exercisable at the end of the period 213,000 $ 3.20 120,200 $ 3.80 The description of the method and significant assumptions used during the year to estimate the fair values of options, including the weighted average information, is as follows: January 31, 2026 January 31, 2025 Expected life 5 years 5 years Expected dividends $ Nil $ Nil Expected volatility – based on a 60-month historical average 39.16% 35.39% Risk free rate of return 1.84% 1.35% Expected forfeiture rate 0% 0% Total compensation cost recognized in income for stock-based employee compensation awards $ 10 $ 13 REKO INTERNATIONAL GROUP INC. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in 000’s, except for per share amounts) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements Page | 13 11. RELATED PARTY TRANSACTIONS Transactions with key management personnel In addition to their salaries, the Company also provides non-cash benefits to its executive officers and contributes to a post- employment defined contribution benefit plan on their behalf. In accordance with the terms of the plan, executive officers are entitled to receive up to a maximum of 4.0% of base salary. Company contributions under the plan will match 100% of the employee contributions. During the period, the Company expensed contributions of $90 to the defined contribution plan in Canada for all employees, including key management personnel. Key management personnel and directors compensation comprised of: January 31, 2026 January 31, 2025 Salaries and cash bonuses $ 497 $ 496 Short-term employment benefits 16 23 Post-employment benefits 13 15 $ 526 $ 534 Key management personnel and director transactions Directors of the Company control 3.7% of the voting shares of the Company. Individuals related to a director own, directly or indirectly, 70.30% of the voting shares of the Company.