SEDAR Interim Financial Statements

GROUNDED PEOPLE APPAREL INC. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 6 | P a g e See accompanying notes to the condensed interim consolidated financial statements. Notice to Readers The accompanying unaudited condensed interim consolidated financial statements of Grounded People Apparel Inc. (the "Company") have been prepared by and are the responsibility of the Company's management. The financial statements do not include all the information and notes required by IFRS Accounting Standards ("IFRS'') for annual financial statements and should be read in conjunction with the Company’s annual financial statements and notes for the year ended February 28, 2025, which are available on SEDAR+ at www.sedarplus.ca. The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Professional Accountants for a review of interim financial statements by an entity’s auditor. 7 | P a g e See accompanying notes to the condensed interim consolidated financial statements. GROUNDED PEOPLE APPAREL INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at November 30, 2025 and February 28, 2025 (Unaudited - Expressed in Canadian Dollars) November 30, February 28, Notes 2025 2025 ASSETS Current assets Cash $ 6,793 $ 116,603 Accounts receivable 10,500 10,500 Taxes receivable 22,059 76,688 Prepaid expense 2,389 25,828 Inventory 5 23,724 31,852 TOTAL ASSETS $ 65,465 $ 261,471 LIABILITIES Current liabilities Accounts payable and accrued liabilities 6, 10 $ 765,343 $ 574,062 Loans payable 7 120,000 120,000 TOTAL LIABILITIES $ 885,343 $ 694,062 DEFICIENCY Share capital 9 6,701,200 6,690,200 Reserves 9, 10 2,353,129 2,321,851 Deficit (9,874,207) (9,444,642) TOTAL DEFICIENCY (819,878) (432,591) TOTAL LIABILITIES AND DEFICIENCY $ 65,465 $ 261,471 Going concern (Note 1) Subsequent event (Note 11) APPROVED ON BEHALF OF THE BOARD ON JANUARY 28 2026: “Maximilian Justus” Director “Joel Shacker” Director Maximilian Justus Joel Shacker 8 | P a g e See accompanying notes to the condensed interim consolidated financial statements. GROUNDED PEOPLE APPAREL INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS For the three and nine months ended November 30, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) Three months ended November 30, Nine months ended November 30, Notes 2025 2024 2025 2024 Sales $ 9,951 $ 24,429 $ 20,748 $ 174,468 Cost of goods sold 5 7,796 7,253 8,128 93,669 Gross profit 2,155 17,176 12,620 80,799 EXPENSES Advertising and marketing (recovery) 5 588 191,936 (84,700) 842,067 Consulting fees 10 60,100 70,455 180,681 216,077 Office and miscellaneous 4,190 34,012 16,674 140,137 Professional fees 69,636 47,726 177,888 162,405 Selling expense 19,590 41,813 57,232 152,356 Share-based compensation 9, 10 - 107,725 42,278 1,912,725 Transfer agent and filing fees 5,224 10,016 23,916 43,939 Wages and salaries 10 2,079 30,000 28,216 93,904 (161,407) (533,683) (442,185) (3,563,610) Net loss before other income (159,252) (516,507) (429,565) (3,482,811) Other Income - 4,366 - 4,366 Net and comprehensive loss for the period $ (159,252) $ (512,141) $ (429,565) $(3,478,445) Basic and diluted loss per share $ (0.01) $ (0.02) $ (0.02) $ (0.14) Weighted average number of common shares outstanding 27,468,004 26,434,141 --- 27,468,004 25,604,941 9 | P a g e See accompanying notes to the condensed interim consolidated financial statements. GROUNDED PEOPLE APPAREL INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIENCY) For the nine months ended November 30, 2025 and the year ended February 28, 2025 (Unaudited - Expressed in Canadian Dollars) Number of Share Total Shares # Capital $ Reserves $ Deficit $ Equity (Deficiency) $ Balance, February 29, 2024 24,558,406 4,878,200 444,128 (5,209,422) 112,906 Private placement, net of share issue costs 2,825,834 1,765,500 - - 1,765,500 Exercise of warrants 71,000 35,500 - - 35,500 Share-based compensation - - 1,888,723 - 1,888,723 Net and comprehensive loss for the period - - - (3,478,445) (3,478,445) Balance, November 30, 2024 27,455,240 6,679,200 2,332,851 (8,687,867) 324,184 Exercise of restricted share units 10,000 11,000 (11,000) - - Net and comprehensive loss for the period - - - (756,775) (756,775) Balance, February 28, 2025 27,465,240 6,690,200 2,321,851 (9,444,642) (432,591) Exercise of restricted share units 10,000 11,000 (11,000) - - Share-based compensation - - 42,278 - 42,278 Net and comprehensive loss for the period - - - (429,565) (429,565) Balance, November 30, 2025 27,475,240 6,701,200 2,353,129 (9,874,207) (819,878) 10 | P a g e See accompanying notes to the condensed interim consolidated financial statements. GROUNDED PEOPLE APPAREL INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS For the nine months ended November 30, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) Nine months ended November 30, Nine months ended November 30, 2025 2024 Operating Activities Net and comprehensive loss for the period $ (429,565) $ (3,478,445) Items not involving cash: Share-based compensation 42,278 1,912,725 Changes in non-cash working capital items related to operations: Taxes receivable 54,629 43,867 Prepaid expense 23,439 (20,012) Inventory 8,128 110,463 Accounts payable and accrued liabilities 191,281 (86,369) Cash used in operating activities (109,810) (1,517,771) Financing Activities Proceeds from private placement - 1,765,500 Proceeds from exercise of warrants - 35,500 Cash provided by financing activities - 1,801,000 Change in cash during the period (109,810) 283,229 Cash, beginning of period 116,603 222,973 Cash, end of period $ 6,793 $ 506,202 Supplemental Disclosure of Cash Flow Information: Cash paid during the period: Interest $ - $ - Income taxes $ - $ - Non-cash Financing Items: Fair value of administrative fee shares issued $ - $ 27,782 GROUNDED PEOPLE APPAREL INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 (Unaudited - Expressed in Canadian Dollars) 11 | P a g e 1. NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS Grounded People Apparel Inc. (the “Company”) was incorporated on April 20, 2020 in British Columbia under the Business Corporations Act. The head office of the Company is located at 800 – 1199 West Hastings Street, Vancouver, BC, Canada, V6E 3T5. The registered and records office of the Company is located at 2200 – 885 West Georgia Street, Vancouver, BC, Canada, V6C 3E8. On October 5, 2022, the Company commenced trading under the trading symbol “SHOE” on the Canadian Securities Exchange (“CSE”). The Company was previously engaged in the business of fair trade, sustainable and earth-conscious fashion, with a focus on the design and production of high-top and low-cut canvassed sneak --- ers. On October 27, 2025, the Board of Directors approved a plan to terminate all retail operations and commence the liquidation of remaining inventory. Accordingly, the Company shifted its focus to the investigation of new opportunities or projects for acquisition or investment with the goal of increasing shareholder value. These condensed interim consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the ordinary course of operations. As at November 30, 2025, the Company has not achieved profitable operations, has a working capital deficiency of $819,878, has an accumulated deficit of $9,874,207 since inception and expects to incur further losses in the development of its business. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period. The Company’s continuation as a going concern is dependent upon successful results from its ability to raise equity capital or borrowings sufficient to meet its current and future obligations. Although the Company has been successful in the past in raising funds to continue operations, there is no assurance it will be able to do so in the future. These factors indicate the existence of a material uncertainty that may cast significant doubt upon the Company’s ability to continue as a going concern and the impact of these adjustments could be material. These condensed interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue operations. 2. BASIS OF PREPARATION (a) Statement of Compliance These condensed interim consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”), and in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting. These condensed interim consolidated financial statements were approved and authorized for issue by the Board of Directors on January 28, 2026. (b) Basis of Measurement The condensed interim consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. GROUNDED PEOPLE APPAREL INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 (Unaudited - Expressed in Canadian Dollars) 12 | P a g e (c) Basis of Consolidation These condensed interim consolidated financial statements include the accounts of the Company and its wholly- owned subsidiary at the end of the reporting period: Incorporated Nature Ownership November 30, 2025 Ownership February 28, 2025 Grounded People Apparel (US) SPC Washington, USA Social Purpose Apparel 100% 100% The results of the wholly-owned subsidiary will continue to be included in the condensed interim consolidated financial statements of --- the Company until the date that the Company’s control over the subsidiary ceases. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity to obtain benefits from its activities. Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated upon consolidation. (d) Functional and presentation currency The functional currency of a company is the currency of the primary economic environment in which the Company operates. The presentation currency for a company is the currency in which that company chooses to present its financial statements. These condensed interim consolidated financial statements are presented in Canadian dollars, which is the parent company’s functional currency. The functional currency of Grounded People Apparel (US) SPC is the US dollar. 3. MATERIAL ACCOUNTING POLICIES The preparation of financial data is based on accounting principles and practices consistent with those used in the preparation of the audited consolidated financial statements for the year ended February 28, 2025. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended February 28, 2025. 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of these condensed interim consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These condensed interim consolidated financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the condensed interim consolidated financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions, and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgments Management has made critical judgments in the process of applying accounting policies. The one that has the most significant effect on the amounts recognized in the condensed interim consolidated financial statements includes: GROUNDED PEOPLE APPAREL INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 (Unaudited - Expressed in Canadian Dollars) 13 | P a g e i. The assessment of the Company’s ability to continue as a going concern and its ability to execute its strategy by funding future working capital requirements requires judgment. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, such as expectations of future events that are believed to be reasonable under the circumstances. The factors considered by management are disclosed in Note 1. Significant estimates The following are key assumptions concerning the future and other key sources of estimation uncertainty that ha --- ve a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the current and next fiscal financial years: i. The Company determines its allowance for inventory obsolescence based upon expected inventory turnover, inventory aging, and current and future expectations with respect to product sales. Assumptions underlying the allowance for inventory obsolescence include future sales trends, marketing strategy and others. These estimates could materially change from period to period due to changes in various factors. ii. The Company determines the volatility assumption used in the Black-Scholes option pricing model based on assessment of the Company’s historical volatility. The Black-Scholes option pricing model requires management to make estimates which are subjective and may not be representative of actual results. Changes in assumptions including volatility can materially affect estimates of fair values. 5. INVENTORY Inventory is comprised of finished goods held on hand. During the nine months ended November 30, 2025, the Company recognized $8,128 (2024 – $93,669) of inventory as cost of goods sold. During the period, there was $Nil (2024 – $21,910) of inventory given out for promotion, which is recognized as advertising and marketing expenditures. On October 27, 2025, the Board made the decision to terminate all retail operations and to commence the liquidation of remaining inventory. As of November 30, 2025, $7,728 (2024 - $Nil) of inventory has been liquidated. The balance remaining in inventory to be liquidated is $23,724. 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES November 30, 2025 February 28, 2025 Accounts payable $ 722,987 $ 515,989 Accrued liabilities 42,356 58,073 $ 765,343 $ 574,062 7. LOANS PAYABLE On January 14, 2025, the Company entered into a short-term unsecured loan agreement with an unrelated third party lender for $120,000. The loan accrues interest at a rate of 15% per annum and is payable on demand. As at November 30, 2025, the balance of the loan payable was $120,000 (February 28, 2025 – $120,000). During the nine months ended November 30, 2025, the Company received advances of $23,264 from the CEO of the Company. The advances were unsecured, non-interest bearing and payable on demand. The Company repaid these advances during the nine months ended November 30, 2025. As at November 30, 2025, the balance of the advances was $Nil (February 28, 2025 – $Nil). GROUNDED PEOPLE APPAREL INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 (Unaudited - Expressed in Canadian Dollars) 14 | P a g e 8. OPERATING SEGMENTS As at November 30, 2025, the Company is operating its business in one reportable segment: the sale of shoes. During the nine months ended November 30, 2025 and year ended February 28, 2025, the Company did not have any customers who accounted for more than 10% of revenues from operations. The Company’s revenues allocated by geography for the nine months ended November 30, 2025 and 2024 are as follows: November 30, 2025 November 30, 2024 United States of America $ 7,306 $ 104,021 Canada 13,236 70,146 Other 206 301 Total $ 20,748 $ 174,468 9. SHARE CAPITAL (a) Authorized Unlimited number of common shares without par value. (b) Issued During the nine months ended November 30, 2025: During the nine months ended November 30, 2025, the Company issued 10,000 common shares pursuant to the exercise of restr --- icted share units, which had a total fair value of $11,000. During the year ended February 28, 2025; On April 17, 2024, the Company closed a non-brokered private placement of 625,000 units of the Company at a price of $0.80 per unit for gross proceeds of $500,000. Each unit is comprised of one common share and one warrant with each warrant entitling the holder to purchase an additional share at a price of $1.00 with an expiry date of April 17, 2029. All of the proceeds were allocated to the common shares. In connection with the private placement, the Company issued 12,500 common shares with a fair value of $12,500 for administrative services, recognized as share issuance costs. On August 12, 2024, the Company closed a non-brokered private placement of 1,016,667 units of the Company at a price of $0.60 per unit for gross proceeds of $610,000. Each unit is comprised of one common share and one warrant with each warrant entitling the holder to purchase an additional share at a price of $0.75 with an expiry date of August 12, 2029. All of the proceeds were allocated to the common shares. In connection with the private placement, the Company issued 10,167 common shares with a fair value of $7,117 for administrative services, recognized as share issuance costs. On November 20, 2024, the Company closed a non-brokered private placement of 1,150,000 units of the Company at a price of $0.57 per unit for gross proceeds of $655,500. Each unit is comprised of one common share and one warrant with each warrant entitling the holder to purchase an additional share at a price of $0.71 with an expiry date of November 20, 2029. All of the proceeds were allocated to the common shares. In connection with the private placement, the Company issued 11,500 common shares with a fair value of $8,165 for administrative services, recognized as share issuance costs. During the year ended February 28, 2025, the Company issued 71,000 common shares pursuant to the exercise of warrants for gross proceeds of $35,500. GROUNDED PEOPLE APPAREL INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 (Unaudited - Expressed in Canadian Dollars) 15 | P a g e During the year ended February 28, 2025, the Company issued 10,000 common shares pursuant to the exercise of restricted share units, which had a total fair value of $11,000. (c) Warrants Warrant transactions and the number of warrants outstanding are summarized as follows: Nine months ended November 30, 2025 Year ended February 28, 2025 Number of Warrants Weighted Average Exercise Price Number of Warrants Weighted Average Exercise Price Outstanding, beginning 4,458,889 $ 0.71 8,988,651 $ 0.61 Issued - - 2,791,667 0.79 Exercised - - (71,000) 0.50 Expired (347,222) 0.90 (7,250,429) 0.62 Outstanding, ending 4,111,667 $ 0.70 4,458,889 $ 0.71 The following warrants were outstanding and exercisable at November 30, 2025: Expiry Date Weighted Average Remaining Contractual Life in Years Exercise Price Outstanding Exercisable December 27, 2028 3.08 $ 0.50 1,320,000 1,320,000 April 17, 2029 3.38 $ 1.00 625,000 625,000 August 12, 2029 3.70 $ 0.75 1,016,667 1,016,667 November 20, 2029 3.98 $ 0.71 1,150,000 1,150,000 3.53 4,111,667 4,111,667 (d) Stock Options The Company has a stock option plan (the “Plan”) to grant incentive stock options to directors, officers, employees, and consultants. Under the Plan, the aggregate number of common shares that may be subject to option at any --- one time may not exceed 20% of the issued common shares of the Company as of that date. Options granted may not exceed a term of 10 years. All options vest when granted unless they are otherwise specified by the Board of Directors or if they are granted for investor relations activities. Stock option transactions and the number of stock options outstanding are summarized as follows: Nine months ended November 30, 2025 Year ended February 28, 2025 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Outstanding, beginning 5,011,000 $ 0.50 1,501,000 $ 0.31 Granted - - 3,510,000 0.58 Outstanding, end 5,011,000 $ 0.50 5,011,000 $ 0.50 GROUNDED PEOPLE APPAREL INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 (Unaudited - Expressed in Canadian Dollars) 16 | P a g e The following stock options were outstanding and exercisable at November 30, 2025: Expiry Date Weighted Average Remaining Contractual Life in Years Exercise Price Outstanding Exercisable June 28, 2026 0.58 $ 0.30 888,000 888,000 December 1, 2026 1.00 $ 0.30 200,000 200,000 May 19, 2027 1.47 $ 0.35 413,000 413,000 May 29, 2029 3.50 $ 0.56 3,410,000 3,410,000 October 29, 2029 3.92 $ 1.10 100,000 100,000 2.72 5,011,000 5,011,000 The Company applies the fair value method using the Black-Scholes option pricing model in accounting for its stock options granted. During the nine months ended November 30, 2025, Nil (year ended February 28, 2025 – 3,510,000) stock options were granted with a fair value of $Nil (year ended February 28, 2025 – $1,897,621). During the nine months ended November 30, 2025, $36,823 (2024 – $1,805,000) has been recognized based on the vesting of the options. The fair value of stock options issued was calculated using the following weighted average assumptions: Nine months ended November 30, 2025 Year ended February 28, 2025 Expected life (years) N/A 5 Risk-free interest rate N/A 3.70% Annualized volatility* N/A 166% Dividend yield N/A - Stock price at issue date N/A $0.58 Exercise price N/A $0.58 Weighted average issue date fair value N/A $0.54 (e) Restricted Share Units (“RSU”) On October 29, 2024, the Company issued 20,000 RSUs, under which the holder has the right to receive an aggregate of 20,000 common shares of the Company. The restricted share units vested 50% on February 28, 2025 and 50% on June 28, 2025. The fair value of RSUs is equal to $22,000, of which the full $22,000 has been recognized based on the vesting of the RSUs since the grant date. During the nine months ended November 30, 2025, $5,455 (2024 – $3,725) has been recognized based on the vesting of the RSUs. As at November 30, 2025, 20,000 RSUs had been exercised and the corresponding common shares were issued. 10. RELATED PARTY TRANSACTIONS Key management personnel are those having authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly, and include the Company’s executive officers and members of the Board of Directors. GROUNDED PEOPLE APPAREL INC. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the nine months ended November 30, 2025 (Unaudited - Expressed in Canadian Dollars) 17 | P a g e Nine months ended November 30, Nine months ended November 30, 2025 2024 Key Management Compensation Wages and salaries, to Maximilian Justus, Director, CEO $ 20,000 $ 90,000 Consulting fees, to a company partial --- ly controlled by Geoff Balderson, former Director, former CFO - 90,000 20,000 180,000 Revenue Royalties Revenue royalties, to Maximilian Justus, Director, CEO 104 - Share Issuance Costs Administrative fee shares issued to a company partially controlled by Geoff Balderson, former Director, former CFO - 27,782 Shared-Based Compensation Maximilian Justus, Director, CEO - 158,798 Geoff Balderson, former Director, former CFO - 10,587 Patrick Morris, former Director - 10,587 Nima Bahrami, Director - 10,587 Joel Shacker, Director - 10,587 Christopher Gulka, CFO 42,278 - 42,278 201,146 $ 62,382 $ 408,928 As at November 30, 2025, there are $3,651 (February 28, 2025 - $8,436) in balances owing to related parties, which are unsecured, non-interest bearing, and due on demand. As at November 30, 2025, amounts receivable from related parties totaled $10,500 (February 28, 2025 – $10,500). These balances are unsecured, non-interest bearing, and due on demand. For the nine months ended November 30, 2025, the Company recognized $104 (2024 - $Nil) of royalty payments due to Maximilian Justus, CEO. As at November 30, 2025, the balance of royalty payments due to Maximilian Justus was $2,223 (February 28, 2025 - $2,119). 11. SUBSEQUENT EVENT Subsequent to November 30, 2025, the Company cancelled 5,011,000 stock options and 4,111,667 warrants.