SEDAR Interim Financial Statements

FAB-FORM INDUSTRIES LTD. CONDENSED INTERIM FINANCIAL STATEMENTS QUARTER ENDED 31 DECEMBER 2025 (In Canadian Dollars rounded to nearest dollar) 1 FAB-FORM INDUSTRIES LTD. CONDENSED INTERIM FINANCIAL STATEMENTS For the quarter ended 31 December 2025 (Canadian Dollars rounded to nearest dollar) Table of Contents Management's Report to Shareholders 3 Condensed Statements of Comprehensive Income 4 Condensed Statements of Financial Position 5 Condensed Statements of Changes in Equity 6 Condensed Statements of Cashflows 7 Selected notes to the Condensed Interim Financial Statements 8-14 2 FAB-FORM INDUSTRIES LTD. MANAGEMENT'S REPORT TO SHAREHOLDERS For the quarter ended 31 December 2025 ........................... ........................... Director (President and CEO) Director Joseph Fearn Don Russell 27 February 2026 27 February 2026 The accompanying Condensed Interim Financial Statements for the quarter ended 31 December 2025 are the responsibility of the management of Fab-Form Industries Ltd. The Condensed Interim Financial Statements have been prepared in accordance with IFRS Accounting Standards ("IFRS") and, where appropriate, include management’s best estimates and judgements. The Company maintains an accounting system and related controls to provide management with reasonable assurance that transactions are executed and recorded in accordance with its authorizations, that assets are properly safeguarded, and accounted for, and that financial records are reliable for preparation of Condensed Interim Financial Statements. The Board of Directors oversees management’s responsibilities for the Condensed Interim Financial Statements primarily through the activities of its Audit Committee. The Audit Committee meets with management of the Company to review the Company’s Condensed Interim Financial Statements and Management Discussion and Analysis (MD&A).The Audit Committee also reviews internal accounting controls, risk management and accounting principles and practices. The Audit Committee reports its findings to the Board of Directors, and recommends approval of the Condensed Interim Financial Statements. The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the financial statements. The Company’s external auditor has not performed a review of the Condensed Interim Financial Statements for the quarter ended 31 December 2025. 3 FAB-FORM INDUSTRIES LTD. CONDENSED STATEMENTS OF COMPREHENSIVE INCOME For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 31-Dec-25 31-Dec-24 31-Dec-25 31-Dec-24 $ $ $ $ $ (unaudited) (unaudited) (unaudited) (unaudited) (audited) Revenue 859,728 1,030,927 2,338,915 2,464,747 4,733,123 Cost of sales (572,722) (686,193) (1,529,576) (1,590,668) (3,137,866) Gross profit 287,006 344,734 809,339 874,079 1,595,257 Gross profit margin % 33% 33% 35% 35% 34% Expenses General and administration (179,301) (192,190) (360,496) (358,582) (709,196) Selling and marketing (81,614) (70,324) (152,199) (117,071) (252,773) Total expenses (260,915) (262,514) (512,695) (475,653) (961,969) Earnings from operations 26,091 82,220 296,644 398,426 633,288 Finance cost (629) (1,367) (1,444) (2,916) (5,100) Other income/(expense) (1,301) 76,428 45,539 118,939 159,798 Earnings before income taxes 24,161 157,281 340,739 514,449 787,986 Income taxes --- 11,001 (39,888) (68,143) (118,233) (241,222) Net earnings for the period/year ended and total comprehensive income 35,162 117,393 272,596 396,216 546,764 Weighted average number of shares outstanding 9,174,507 9,174,507 9,174,507 9,174,507 9,174,507 Basic and diluted earnings per share 0.004 0.013 0.030 0.043 0.060 The accompanying notes are an integral part of these financial statements Quarter ended Year ended 30-Jun-25 Period ended 4 FAB-FORM INDUSTRIES LTD. CONDENSED STATEMENTS OF FINANCIAL POSITION As at 31 December 2025,31 December 2024, and 30 June 2025 (Canadian Dollars rounded to nearest dollar) 31-Dec-25 31-Dec-24 30-Jun-25 $ $ $' (unaudited) (unaudited) (audited) ASSETS Current Cash and cash equivalents 2,743,518 1,733,822 1,089,925 Short-term investments 1,530,691 2,537,624 3,041,324 Trade and other receivables 532,168 691,398 689,262 Inventories 857,850 701,384 852,054 5,664,227 5,664,228 5,672,565 Non current assets Property and equipment 607,571 294,714 470,598 Right-of-use assets 66,512 180,535 123,523 Deferred development costs 213,171 115,565 167,066 Intangible assets 339,888 233,870 281,383 1,227,142 824,684 1,042,570 Total Assets 6,891,369 6,488,912 6,715,135 LIABILITIES Current Trade and other payables 506,241 455,963 567,622 Lease liabilities 70,662 118,808 120,297 Corporate tax payable 95,085 33,600 66,990 671,988 608,371 754,909 Non current liabilities Lease liabilities - 70,663 10,139 Deferred tax liability 45,758 59,399 49,060 45,758 130,062 59,199 Total liabilities 717,746 738,433 814,108 EQUITY Share capital 1,388,006 1,388,006 1,388,006 Retained earnings 4,785,617 4,362,473 4,513,021 Total equity 6,173,623 5,750,479 5,901,027 Total equity and liabilities 6,891,369 6,488,912 6,715,135 Approved and authorized by the Board 27 February 2026 …..........................., Director …..........................., CFO The accompanying notes are an integral part of these financial statements “Joseph Fearn” “Vishwanath Kumar” 5 FAB-FORM INDUSTRIES LTD. CONDENSED STATEMENTS OF CHANGES IN EQUITY For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) No of shares Amount' $' $' $ (audited) Balance, 1 July 2024 9,174,507 1,388,006 3,966,257 5,354,263 Total net earnings and total comprehensive income - 546,764 546,764 Balance, 30 June 2025 9,174,507 1,388,006 4,513,021 5,901,027 (unaudited) Balance, 1 July 2025 9,174,507 1,388,006 4,513,021 5,901,027 Total net earnings and total comprehensive income - 272,596 272,596 Balance, 31 December 2025 9,174,507 1,388,006 4,785,617 6,173,623 Issued Capital Retained earnings Total equity 6 FAB-FORM INDUSTRIES LTD. CONDENSED STATEMENTS OF CASH FLOWS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 31-Dec-25 31-Dec-24 31-Dec-25 31-Dec-24 $' $ $' $ $' (unaudited) (unaudited) (unaudited) (unaudited) (audited) Cash flows from operating activities Net earnings for the period/year 35,162 117,393 272,596 396,216 546,764 Items not involving use of cash Amortization and depreciation 30,916 17,082 67,245 30,852 70,895 Impairment of assets - - - - 7,900 (Profit) / loss on disposal of assets - - - - (4,414) Depreciation - right-of-use assets 28,506 28,506 57,011 57,012 114,024 Exchange gains 5,062 (29,197) 5,062 (26,732) (8,129) Income taxes (11,001) 39,888 68,143 118,233 241,222 Finance cost - lease liabilities 629 1,367 1,444 2,916 5,100 89,2 --- 74 175,039 471,501 578,497 973,362 Changes in working capital items Trade and other receivables 260,996 (46,156) 157,094 (163,743) (161,607) Inventories (154,327) (47,931) (5,796) (1,084) (151,754) Trade and other payables (14,027) (25,444) (61,381) 94,717 206,374 Cash generated from operating activities 181,916 55,509 561,418 508,387 866,375 Income taxes paid (43,000) - (43,350) (119,484) (219,422) Net cash generated from operating activities 138,916 55,509 518,068 388,903 646,953 Cash flows from investing activities Short-term investments 1,533,345 53,358 1,510,633 19,893 (483,807) Purchase of property and equipment (140,937) (41,456) (168,636) (71,077) (276,105) Proceeds from sale of asset - - - - 12,500 Deferred development costs (38,537) (26,928) (48,477) (35,729) (90,537) Intangible assets (50,308) (13,299) (91,715) (80,791) (151,883) Net cash used in investing activities 1,303,564 (28,325) 1,201,805 (167,704) (989,832) Cash flows from financing activities Lease payments (30,609) (30,609) (61,218) (61,218) (122,437) Net cash used in financing activities (30,609) (30,609) (61,218) (61,218) (122,437) Net increase in cash and cash equivalents 1,411,871 (3,425) 1,658,655 159,981 (465,316) Cash and cash equivalents at beginning of the period/year 1,336,709 1,708,050 1,089,925 1,547,109 1,547,112 Effects of exchange rate changes on cash and cash equivalents (5,062) 29,197 (5,062) 26,732 8,129 Cash and cash equivalents at end of the period/year 2,743,518 1,733,822 2,743,518 1 ,733,822 1,089,925 The accompanying notes are an integral part of these financial statements Quarter ended Year ended 30-June-25 Period ended 7 FAB-FORM INDUSTRIES LTD. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 1 Reporting Entity 2 Basis of presentation a) Basis of preparation b) Basis of measurement c) Functional and presentation currency d) New and revised standards and interpretations issued but not yet effective e) Use of significant estimates and judgements Estimates  Credit losses The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. Significant management judgement is required in developing segments and determining level of stratification. The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. Management uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history and existing market conditions, as well as forward-looking estimates at the end of each reporting period. The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In the process of applying the Company’s accounting policies, management has made the following estimates and judgements, which have the most significant effect on the amounts recognized in the financial statements: Fab-Form --- Industries Ltd. (the "Company" or "Fab-Form") is a company domiciled in Canada and incorporated under the Business Corporations Act of British Columbia. The address of the Company’s head office is Unit 19, 1610 Derwent Way, Delta BC V3M 6W1. The Company develops, manufactures and distributes proprietary technology to form concrete footings, columns, foundations and walls for building structures. The Company also distributes Helix® micro rebar into the BC market and Nudura® insulating concrete forms (ICF), especially into the Lower Mainland of BC market. The Company has traded on the TSX Venture Exchange (“TSX-V” under the symbol FBF) since 2000. These condensed interim financial statements were prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the IFRS Interpretations Committee (“IFRIC”), collectively IFRS Accounting Standards ("IFRS"). These financial statements were prepared on the historical cost basis, except for financial instruments measured at fair value through profit or loss. The accounting policies set out in Note 3 have been applied consistently to all periods and years presented in these financial statements. These financial statements are presented in Canadian dollars, the Company’s functional currency, and rounded to nearest dollar, except when otherwise indicated. The Company has performed an assessment of new and revised standards issued by the IASB that are not yet effective: In April 2024, the IASB issued IFRS 18 which sets out requirements for the presentation and disclosure of information in the financial statements. IFRS 18 will replace IAS 1 Presentation of Financial Statements but carries forward many of the requirements from IAS 1. The standard introduces new defined subtotals to be presented in the separate statements of operations, disclosure of management-defined performance measures related to the income statement and requirements for grouping of information. IFRS 18 is effective for annual periods beginning on or after January 1, 2027, with earlier adoption permitted. The Company is currently in the process of assessing the impact of the amendments on the financial statements and notes to the financial statements. In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to clarify that a financial liability is derecognized on the “settlement date” and introduce an accounting policy choice to derecognize a financial liability settled using an electronic payment system before the settlement date. Other clarifications include guidance on the classification of financial assets with ESG linked features, non recourse loans and contractually linked instruments. The amendments are effective for annual periods beginning on or after January 1, 2026. Early adoption is permitted, with an option to early adopt the amendments for contingent features only. The Company is currently in the process of assessing the impact of the amendments on the financial statements and notes to the financial statements. 8 FAB-FORM INDUSTRIES LTD. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 2 Basis of presentation (continued) e) Use of significant estimates and judgements (continued) Significant judgements  Capitalization of Intangible (including Development costs)  Right-of-use as --- sets and lease liability 3 Material accounting policies a) Financial Instruments The Company's accounting policy for each of the categories is as follows:         As at 31 December 2025, the Company does not have any derivative financial liabilities. Financial liabilities at amortized cost - This category includes trade and other payables, which are recognized at amortized cost using the effective interest rate (EIR) method, which calculates the amortized cost of a financial liability and of allocating interest expense over the relevant period. Transaction costs in respect of financial instruments at FVTPL are recognized in profit or loss immediately, while transaction costs associated with all other financial instruments are included in the initial measurement of the financial instrument Financial assets at amortized cost: A financial asset is measured at amortized cost if the objective of the business model is to hold the financial asset for the collection of contractual cash flows, and the asset's contractual cash flows are comprised solely of payments of principal and interest. They are classified as current assets or non-current assets based on their maturity date, and are initially recognized at fair value and subsequently carried at amortized cost less any impairment. Impairment of financial assets at amortized cost: The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. The Company has designated its cash and cash equivalents and short-term investments as FVTPL. Trade receivables are classified at amortized cost. Financial liabilities The Company classifies its financial liabilities into one of two categories, at FVTPL or at amortized cost, depending on the purpose for which the liability was incurred. The Company's accounting policy for each category is as follows: Financial liabilities at FVTPL — This category comprises derivatives or liabilities acquired or incurred principally for the purpose of selling or repurchasing in the near term. They are carried in the statement of financial position at fair value with changes in fair value recognized in profit or loss. Financial assets at FVTOCI: Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income as they arise. Management applies its judgement in determining the capitalization of intangible assets (which includes product deferred development costs) that create economic benefits in the future from either sale of those products being developed or use of the asset. A significant judgement is required in assessing the future economic benefits expected to be derived from selling the development products and also economic benefits derived from use of assets being capitalized. The Company ensures it has control over the products through gaining patent rights that restrict others from accessing the same benefit. Management applies judgement in determining the lease term by considering all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option and whether it is reasonably likely that options will be exercised by considering factors such as how far in the future an option occurs, the entity’s business planning cycle and past history of terminating/n --- ot renewing leases. Extension options (or periods after termination options) are only included in the lease term applied if the lease is reasonably certain to be extended (or not terminated). The lease term for recognized leases is 5 years commencing from 1 Aug 2021. Financial Assets The Company classifies its financial assets in the following categories: at fair value through profit or loss ("FVTPL"), at fair value through other comprehensive income ("FVTOCI"), or at amortized cost. The determination of the classification of financial assets is made at initial recognition. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL; for other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument by instrument basis) to designate them as at FVTOCI. Financial assets at FVTPL: Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of financial assets held at FVTPL are included in profit or loss. 9 FAB-FORM INDUSTRIES LTD. NOTES TO THE FINANCIAL STATEMENTS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 31-Dec-25 31-Dec-24 $' (unaudited) (unaudited) (audited) 4 Related party transactions Related party payable 13,928 36,812 49,961 Management remuneration 123,576 85,641 371,415 Directors' fees 13,750 5,000 22,667 Shape Energy Inc. – Consultancy Fee / Expense reimbursement 340 428 3,952 5 Commitments 217,714 278,212 186,119 2,370,470 - 17,248 2,588,183 278,212 203,367 6 Financial instruments and financial risk management 6.1 Management of Capital 6.2 Fair value of financial instruments Fair value hierarchy The fair value hierarchy classifies inputs used in valuation techniques into three levels: 6.3 Financial risk management Exposure to counterparty credit risk and foreign currency risk arises in the normal course of the Company’s business. The Company currently does not enter into derivative financial instruments to reduce exposure to fluctuations in any of the risks impacting the Company’s operations. The Company’s financial instruments consist of cash and cash equivalents, short term investments, trade receivables, trade and other payables. The fair values of cash and cash equivalents (classified FVTPL - level 1), short-term investments (classified FVTPL - level 1), trade receivables, trade and other payables approximate their carrying values due to the short-term maturities of those instruments. Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Unobservable inputs for the asset or liability, relying on the entity's own assumptions about market participant pricing. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. Quarter ended Year ended 30-Jun-25 Related parties include Key management personnel. Key management personnel are --- those having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly. Key management personnel include Directors, the President, Vice-President and Chief Financial Officer and Chief Technology Officer. (Related party payables are payable on demand without interest). Commitments for purchase of raw material and finished goods in the ordinary course of business. Commitments for capital expenditure Commitments includes orders placed at the end of the reporting period/year but products not delivered. The Company considers its capital to consist of all components of its shareholders' equity of $6,173,623 (31 December 2024: $5,750,479, 30 June 2025: $5,901,027). The Company's objectives for managing capital are to safeguard its ability to continue as a going concern in order to pursue the design, development and marketing of new products to service the concrete forming industry. There were no changes in the Company's approach to capital management during the quarter ended 31 December 2025 and the Company does not have any externally imposed capital restrictions. 10 FAB-FORM INDUSTRIES LTD. NOTES TO THE FINANCIAL STATEMENTS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 6 Financial instruments and financial risk management (continued) 6.3 Financial risk management (continued) Credit risk 31-Dec-25 31-Dec-24 $' $' $' (unaudited) (unaudited) (audited) Cash and Cash Equivalents 2,743,518 1,733,822 1,089,925 Short-Term investments 1,530,691 2,537,624 3,041,324 Trade receivables and supplier rebates 425,533 450,306 590,934 Total 4,699,742 4,721,752 4,722,183 As at 31 December 2025 (unaudited) 0-30 Days 31-60 Days 61-90 Days Over 90 Days Total $ $ $ $ $ Trade receivables (CAD customers) 120,705 176,424 24,460 117,444 439,034 Trade receivables (USD customers) 4,532 1,102 1,464 969 8,067 Supplier rebates 1,143 - - - 1,143 Total 126,381 177,527 25,925 118,413 448,245 Loss allowance % 0.5% 0.6% 2.9% 17.1% 5.1% Expected credit losses (604) (1,112) (743) (20,254) (22,713) Net receivables 125,778 176,415 25,183 98,158 425,533 As at 31 December 2024 (unaudited) 0-30 Days 31-60 Days 61-90 Days Over 90 Days Total $ $ $ $ $ Trade receivables (CAD customers) 186,427 53,228 58,031 98,147 395,833 Trade receivables (USD customers) 52,815 5,662 1,961 1,244 61,682 Supplier rebates 6,629 - - - 6,629 Total 245,871 58,890 59,992 99,391 464,144 Loss allowance % 0.3% 2.6% 0.9% 11.0% 3.0% Expected credit losses (807) (1,510) (543) (10,978) (13,838) Net receivables 245,064 57,380 59,449 88,413 450,306 As at 30 June 2025 (audited) 0-30 Days 31-60 Days 61-90 Days Over 90 Days Total $ $ $ $ $ Trade receivables (CAD customers) 33,461 57,710 62,352 81,713 535,236 Trade receivables (USD customers) 45,187 17,238 505 2,141 65,071 Supplier rebates 13,379 - - - 13,379 Total 392,027 74,948 62,857 83,854 613,686 Loss allowance % 0.2% 1.5% 1.2% 24.2% 3.9% Expected credit losses (604) (1,112) (743) (20,293) (22,752) Net receivables 391,423 73,836 62,114 63,561 590,934 The following table presents an analysis of the age of customer trade and rebate receivables. Credit risk refers to the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s maximum exposure to credit risk, which is a worst case scenario and does not reflect results expected by the Co --- mpany, is as follows: Quarter ended Year ended 30-Jun-25 The credit risk on cash and short-term investments are limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The Company has credit risk as a result of its trade receivables and supplier rebates. trade receivables and supplier rebates consists of a large number of customers, spread across diverse industries. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated. As such, the Company does not anticipate any significant credit losses. Of the trade receivables and supplier rebates balance at 31 December 2025, no customers represented greater than 10% of the total receivable balance. There were no significant changes to the credit risk management during the year. 11 FAB-FORM INDUSTRIES LTD. NOTES TO THE FINANCIAL STATEMENTS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 6 Financial instruments and financial risk management (continued) 6.3 Financial risk management (continued) Credit risk (continued) 31-Dec-25 31-Dec-24 $' $' $' (unaudited) (unaudited) (audited) Balance at beginning of the quarter/year 22,713 13,242 13,242 Increase in loss allowance recognized in profit or loss 217 647 16,656 Write offs (217) (51) (7,146) Balance at end of quarter/year 22,713 13,838 22,752 Liquidity risk (unaudited) Total Less than 6 months 6-12 months Between 1-2 years Between 3-4 years More than 5 years As at 31 December 2025 $ $ $ $ $ $ Trade and other payables 463,424 463,424 - - - 463,424 463,424 - - - - (unaudited) Total Less than 6 months 6-12 months Between 1-2 years Between 3-4 years More than 5 years As at 31 December 2024 $ $ $ $ $ $ Trade and other payables 434,535 434,535 - - - - 434,535 434,535 - - - - (audited) Total Less than 6 months 6-12 months Between 1-2 years Between 3-4 years More than 5 years As at 30 June 2025 $ $ $ $ $ $ Trade and other payables 550,021 550,021 - - - - 550,021 550,021 - - - - The tables below analyze the Company’s non-derivative financial liabilities into relevant maturity groupings based on their contractual maturities. Quarter ended Year ended 30-Jun-25 The loss allowances for trade receivables reconciled to the opening loss allowances as follows: Trade receivables are non-interest bearing and are generally on 30 day terms. In determining the expected credit loss amount, the Company considers the client’s financial position, service and payment history and economic conditions. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents or short term investments and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. The Company’s objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements at any point in time. The Company achieves this by maintaining sufficient cash, as well as through the availability of funding from committed credit facilities. As at 30 September 2025, the Company had cash and cash equivalents of $2,743,518 (31 December 2024: $1,733,822, 30 June 2025: $1,089,925). The Company’s financial liabilities, based on contractual undiscounted payments at 30 September 2025, were $436,122 (31 December 2024: $434,535, 30 June 2025 : $550,021). Management --- believes that future cash flows from operations will be adequate to support the financial liabilities. Trade payables are non-interest bearing and are normally settled on 30 day term. 12 FAB-FORM INDUSTRIES LTD. NOTES TO THE FINANCIAL STATEMENTS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 6 Financial instruments and financial risk management (continued) 6.3 Financial risk management (continued) Market risk (a) Currency risk 31-Dec-25 31-Dec-24 $' $' $' (unaudited) (unaudited) (audited) Accounts receivable 8,067 61,682 65,071 Cash and cash equivalents 314,261 371,920 423,352 322,328 433,602 488,423 Accounts payable (20,595) (81,712) (121,358) Net Exposure 301,733 351,890 367,065 Impact on net earnings from a change in USD/CAD exchange rate by 10% 30,173 35,189 36,707 (b) Other price risk (c) Interest rate risk The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any short or long term borrowings or deposits that are directly exposed to interest rate risk. The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and is exposed to currency risk, primarily the USD. Currency risk arises from future commercial transactions, and recognized assets and liabilities denominated in a currency that is not the functional currency of the relevant group entity. The Company's exposure to USD at the end of the year, expressed in CAD , was as follows. Quarter ended Year ended 30-Jun-25 The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.The Company is exposed to other price risk on their cash and cash equivalents and short term investments classified as FVTPL. However, the risk is not significant due to the short term maturities of these instruments. 13 FAB-FORM INDUSTRIES LTD. NOTES TO THE FINANCIAL STATEMENTS For the quarter ended 31 December 2025, 31 December 2024, and year ended 30 June 2025 (Canadian Dollars rounded to nearest dollar) 7 Segmented information $' $' $' $' Gross Sales North America Canada 669,765 77.90% 1,885,586 80.62% 584,715 56.7% 3,468,527 73.3% United States 188,852 21.97% 435,647 18.63% 446,212 43.3% 1,264,596 26.7% Bermuda - - 3,555 0.15% - - - - Jamaica 311 0.04% 311 0.01% - - - - Saint Kitts and Nevis - - 1,410 0.06% - - - - Europe Ireland - - 10,793 0.46% - - - - Norway 405 0.05% 405 0.02% - - - - Oceania Australia 395 0.05% 395 0.02% - - - - Asia Philippines - - 813 0.03% - - - - Total 859,728 100.00% 2,338,915 100.00% 1,030,927 100.0% 4,733,123 100.0% Total assets Canada 6,891,369 100.00% 6,891,369 100.00% 6,306,958 97.20% 6,331,862 94.29% USA - - - - 181,954 2.80% 383,276 5.71% Total 6,891,369 100.0% 6,891,369 100.0% 6,488,912 100.0% 6,715,138 100.0% Capital expenditure C --- anada 229,781 100.00% 229,781 100.00% 81,683 100.00% 518,526 213.09% USA - - - - - - - - Total 229,781 100.0% 229,781 100.0% 81,683 100.0% 243,334 100.0% 8 Subsequent Events 8.1 Acquisition of a Land 8.2 Commencement of US operations 8.3 Renew of lease On 20 Feberuary 2026 the Board has approved the renewal of existing lease of the warehouses located in Delta BC. Lease terms yet to be agreed. This is identified as a non-adjusting event. Capital expenditure refers to purchases of property and equipment, deferred development costs and intangible assets. All non-current assets are located in Canada. Period ended 31 December 2025 (unaudited) On 15 January 2026 Fab-Form has entered into a third-party logistics and fulfillment agreement (the "Agreement") with All 3 Pools LLC ("A3P"), a U.S.-based dealership and logistics hub located in Springfield, Missouri. Pursuant to the Agreement, A3P will provide warehousing, storage and related logistics services to support Fab-Form's growing U.S. operations. The arrangement establishes Springfield, Missouri as Fab-Form's U.S. fulfillment branch, enabling faster delivery times, and enhanced customer service for American customers. Fab-Form's new branch will be located at 1861 E. St Louis Street, Springfield, MO 65802. The Company expects to commence the distribution in mid March 2026, with availability of all product categories. This is identified as a non-adjusting event. On 14 January 2026, the Company acquired a strategic residential property at 15643 Buena Vista Avenue in White Rock, British Columbia. The purchase, completed on January 14, 2026, for $2,451,645 (inclusive of taxes and fees), marks a significant step in the company's expansion into smart, low-cost housing development and the rollout of cutting-edge technologies. This is identified as a non-adjusting event. The Company operates in one reportable segment being the manufacture and distribution of concrete forming products. The enterprise-wide disclosures are as follows: Quarter ended 31 December 2025 Quarter ended 31 December 2024 Year ended 30 June 2025 (unaudited) (unaudited) (audited) 14