SEDAR Interim Financial Statements

- 1 - AVANTE CORP. Condensed Interim Consolidated Financial Statements Unaudited for the three and nine-month periods ended December 31, 2025 and 2024 NOTICE TO READER OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS The condensed interim consolidated financial statements of Avante Corp. for the three and nine-month periods ended December 31, 2025 are the responsibility of the Company’s Management. These financial statements have not been reviewed on behalf of the shareholders by the independent external auditors of the Company. The condensed interim consolidated financial statements have been prepared by Management and include the selection of appropriate accounting principles, judgments and estimates necessary to prepare these financial statements in accordance with International Financial Reporting Standards. AVANTE CORP. - 2 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2025 AND MARCH 31, 2025 Dec 31, 2025 Mar 31, 2025 ASSETS Unaudited CURRENT Cash and cash equivalents 4,963,056 $ 4,723,488 $ Accounts receivable (note 7) 7,504,159 7,426,444 Inventories (note 8) 1,047,283 1,031,149 Contract assets (note 6b) 299,679 227,657 Prepaid expenses 719,019 425,800 14,533,196 13,834,538 NON-CURRENT ASSETS Property, plant & equipment (note 9) 2,592,179 2,250,909 Deferred tax assets (note 18) 292,569 292,569 Intangible assets (note 10) 1,964,977 2,227,892 Goodwill (note 10) 4,440,144 4,440,144 9,289,869 9,211,514 23,823,065 $ 23,046,052 $ LIABILITIES CURRENT Accounts payable and accrued liabilities 3,046,823 3,639,669 Loan from officer 109,624 102,498 Corporate tax payable 3,005 253,888 Obligations under lease (note 13) 761,421 665,628 Contract liabilities (note 6b) 4,038,804 2,855,198 7,959,677 7,516,881 NON-CURRENT LIABILITIES Obligations under lease (note 13) 549,617 591,146 Dividend payable to non-controlling shareholder of NSSG 227,044 596,921 Cash settled share-based payment liabilities (note 19) 1,958,032 1,442,875 Deferred tax liability (note 16) 141,689 141,689 2,876,382 2,772,631 TOTAL LIABILITIES 10,836,059 10,289,512 SHAREHOLDERS' EQUITY Share capital (note 14) 30,239,034 30,239,034 Contributed surplus 2,596,660 2,531,453 Accumulated other comprehensive deficit (132,804) (111,381) Accumulated deficit (19,889,208) (20,104,023) TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 12,813,682 12,555,083 Non-controlling interest (note 15) 173,324 201,457 TOTAL EQUITY 12,987,006 12,756,540 TOTAL EQUITY & LIABILITIES 23,823,065 $ 23,046,052 $ Contingencies (note 22) AUTHORIZED FOR ISSUE ON BEHALF OF THE BOARD: Signed "Emmanuel Mounouchos" Director Signed "Daniel Argiros" Director See accompanying notes to the condensed interim consolidated financial statements AVANTE CORP. - 3 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE AND NINE-MONTH PERIODS ENDED DECEMBER 31, 2025 AND DECEMBER 31, 2024 Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Unaudited Unaudited Revenues from continuing operations (note 6a) 9,097,661 $ 8,411,628 $ 26,723,960 $ 24,415,219 $ Cost of sales 5,298,390 4,970,212 15,892,305 14,491,694 Gross profit 3,799,271 3,441,416 10,831,655 9,923,525 Operating expenses Salaries, benefits and commissions 1,831,419 1,489,008 5,070,033 4,578,960 Administration 1,265,737 1,470,575 3,740,679 4,212,301 Depreciation on capital assets (note 9) 254,854 266,746 732,477 758,366 Amortization on intangible assets (note 10) 164, --- 973 161,272 499,014 483,816 Merchant transaction fees and bank charges 130,842 158,391 369,037 427,914 Share based payments (note 14) 32,712 50,008 65,207 95,219 3,680,537 3,596,000 10,476,447 10,556,576 Income (loss) before other income and expenses and reorganization and acquisition costs 118,734 (154,584) 355,208 (633,051) Other (income) expenses Miscellaneous income (31,641) (65,521) (149,935) (409,194) Interest expense 60,947 63,756 216,053 219,114 Foreign exchange loss (10,318) 3,441 77,557 30,068 18,988 1,676 143,675 (160,012) Income (loss) before reorganization and acquisition costs 99,746 (156,260) 211,533 (473,039) Reorganization, development and acquisition costs (note 20) - - - 720,451 Income (loss) before income taxes 99,746 (156,260) 211,533 (1,193,490) Provision for income taxes Current income tax expense (recovery) (note 16) 7,378 (1,508) 24,851 (1,508) Net income (loss) from continuing operations for the period 92,368 (154,752) 186,682 (1,191,982) Net income (loss) for the period 92,368 $ (154,752) $ 186,682 $ (1,191,982) $ Net income (loss) for the period attributable to: Equity holders of the parent 102,041 (144,967) 214,815 (1,165,137) Non-controlling interests (9,673) (9,785) (28,133) (26,845) 92,368 $ (154,752) $ 186,682 $ (1,191,982) $ Other comprehensive income (loss) from continuing operations: Items that may be reclassified subsequently to net loss Unrealized gain (loss) on translating financial statements of foreign operations 23,562 6,768 (21,423) 2,626 23,562 $ 6,768 $ (21,423) $ 2,626 $ Total comprehensive income (loss) for the period 115,930 $ (147,984) $ 165,259 $ (1,189,356) $ Equity holders of the parent 125,603 (138,199) 193,392 (1,162,510) Non-controlling interests (9,673) (9,785) (28,133) (26,845) Total comprehensive income (loss) for the period 115,930 $ (147,984) $ 165,259 $ (1,189,356) $ Net income (loss) per share attributable to equity holders of the parent (note 5) Basic and diluted income per share from continuing operations (note 5) $0.004 ($0.005) $0.008 ($0.044) Basic and diluted income per share from discontinued operations $0.000 $0.000 $0.000 $0.000 Basic and diluted income per share $0.004 ($0.005) $0.008 ($0.044) Weighted average number of shares outstanding for basic and diluted calculation 26,648,739 26,643,739 26,648,739 26,643,739 See accompanying notes to the condensed interim consolidated financial statements For the three-month period ended For the nine-month period ended AVANTE CORP. - 4 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIOD ENDED DECEMBER 31, 2025 AND DECEMBER 31, 2024 Share Capital Contributed Surplus Equity component of put option Deficit Accumulated Other Comprehensive Income Subtotal Non-controlling Interest Total Equity Balance at April 1, 2024 30,233,361 $ 2,395,960 $ (370,752) $ (18,726,858) $ (2,019) $ 13,529,692 $ 20,605 - 13,509,087 $ Loss for the period (1,165,137) (1,165,137) (26,845) (1,191,982) Unrealized gain on translating financial statements of foreign operations - - - - 2,626 2,626 2,626 Share based payments - 95,219 - - - 95,219 - 95,219 Issuance of common shares - - - - - - Balance at December 31, 2024 (Unaudited) 30,233,361 $ 2,491,179 $ (370,752) $ (19,891,995) $ 607 $ 12,462,400 $ (47,450) $ 12,414,950 $ Balance at April 1, 2025 30,239,034 $ 2,531,453 $ (20,104,023) $ (111,381) $ 12,555,083 $ 201,457 12,756,540 $ Income for the period 214,815 214,815 28,133 - 186,682 Unrealized gain on translating fin --- ancial statements of foreign operations - - - - (21,423) (21,423) (21,423) Share based payments - 65,207 - - - 65,207 65,207 Balance at December 31, 2025 (Unaudited) 30,239,034 $ 2,596,660 $ - $ (19,889,208) $ (132,804) $ 12,813,682 $ 173,324 $ 12,987,006 $ See accompanying notes to the condensed interim consolidated financial statements AVANTE CORP. - 5 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIODS ENDED DECEMBER 31, 2025 AND DECEMBER 31, 2024 Dec 31, 2025 Dec 31, 2024 Operating activities Comprehensive income (loss) for the period 186,682 $ (1,191,982) $ Loss on disposal of capital assets 149,536 (4,752) Share based payments 65,207 95,219 Interest on bank loans and leases 171,820 Depreciation on capital assets (note 9) 732,477 758,366 Amortization on intangible assets (note 10) 499,014 483,816 Amortization on capitalized commission (note 10) 4,132 1,632,916 316,619 Net change in non-cash working capital: Accounts receivable (77,715) 1,273,691 Inventories (16,134) (461,644) Contract assets (72,022) (326,175) Prepaid expenses (293,218) (319,840) Current income tax (250,883) (1,466) Accounts payable and accrued liabilities (962,722) (274,922) Contract liabilities 1,698,763 138,949 26,069 28,593 Net cash from (used in) operating activities 1,658,985 345,212 Financing activities Loan from officer 7,124 Obligations under lease 54,264 (352,262) Interest on bank loans, and leases (165,282) Net cash from (used in) financing activities 61,388 (517,544) Investing activities Capitalized development costs (note 10) (236,099) Purchase of capital assets (447,804) (739,825) Disposal of capital assets 147,564 Additions to leases (775,479) (227,001) Net cash from (used in) investing activities (1,459,382) (819,262) Increase (decrease) in cash during the period 260,991 (991,594) Cash and cash equivalents, beginning of period 4,723,488 6,030,907 Unrealized foreign exchange gain on cash and cash equivalents held in foreign currencies (21,423) (438) Cash and cash equivalents, end of period 4,963,056 $ 5,038,875 $ See accompanying notes to the condensed interim consolidated financial statements For the nine-month period ended AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 6 - 1. NATURE OF BUSINESS Avante Corp. (the “Company”) develops security technologies, products and solutions for personal, residential and condominium protective services, monitoring and control applications, secure transportation and private investigations. All of these activities are conducted through the following subsidiaries: Avante Security Inc. (“Avante Security”), which is 100% owned, Avante International Inc., which is 100% owned, Avante Holding Corp., which is 100% owned, The Reserve, which is 51% owned and North Star Support Group S.R.L. (“NSSG”), in which the Company acquired a 55% majority interest on October 1, 2023. The Company’s common shares are listed on the TSX Venture Exchange under the symbol XX.V (OTC: ALXXF). Avante Security provides premium security services for residential and condominium customers in Toronto and Muskoka, Ontario, through the use of advanced technology and a focus on client service. Avante Security’s business provides a complete offering ranging from system design, sales, installations, and monitoring to services such as alarm response and patrols, personal protection, house staff training, and secu --- re transportation. Avante Security has a specialized skillset in high-rise security integration, monitoring and electronic building management. It also provides consulting and installation of automation and security solutions for the high-end residential market. Avante Security’s signature offerings are its Rapid Alarm Response services, and its Intelligent Perimeter Protection Video Analytics. Avante Security also provides extensive offerings, which include Closed Circuit Television (“CCTV”), access controls and security services for travelling executives. Avante Security uses its proprietary two-way wireless communication technology for security and in other market segments for various remote control and monitoring functions. Avante Black, a division of Avante Security, offers highly specialized services that are bespoke to specific needs of the client for a specific purpose. Services offered include specialized security services providing 24 hour, 7 days a week, 365 days security, cyber monitoring, investigations and international secured transportation. On October 1, 2023, Avante Corp., via its subsidiary Avante International Inc., acquired a 55% interest in North Star Support Group S.R.L. (“NSSG”), which is a risk management and security company. It primarily specializes in offering international secured transportation, investigation services, medical services, emergency SOS services and sophisticated cyber sentiment monitoring and sensitive investigations tailored for executive customers on a global scale. In September 2023, Avante Corp., operating through its subsidiary Avante Holding Corp., formally established The Reserve, which commenced its auto storage services in December 2023. The service offers security for high-value vehicle owners in Toronto, Ontario. The address of the Company’s corporate office is 1959 Leslie Street, Toronto, Ontario, Canada. The Company is domiciled in Canada and was incorporated in Canada. 2. BASIS OF PRESENTATION 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”) (collectively, “IFRS Accounting Standards”) and using the accounting policies described herein. The condensed interim consolidated financial statements were authorized for issue by the Board of Directors on February 26, 2026. AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 7 - 2. BASIS OF PRESENTATION (CONTINUED) b) Basis of measurement The condensed interim consolidated financial statements of the Company are presented in Canadian dollars. The functional currency of NSSG is the euro and the functional currency for the Company and all other subsidiaries is the Canadian dollar. Transactions in foreign currencies are translated into the respective functional currencies at the exchange rates on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. Assets and liabilities of foreign operations are translated into the presentation currency at the spot exchange rate in effect as of the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rates for the rep --- orting period. Any resulting translation differences from the above translation methods are recognized in other comprehensive income (loss). The preparation of these condensed interim consolidated financial statements requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the condensed interim consolidated financial statements, are disclosed in Note 4. 3. SUMMARY OF MATERIAL ACCOUNTING POLICIES Basis of Consolidation The condensed interim consolidated financial statements include the accounts of the Company and other entities that the Company controls (subsidiaries). Control exists when the Company is exposed or has the existing rights to variable returns and the current ability to direct activities that significantly affect the entities’ returns. Consolidation of the subsidiaries begins on the date on which control is obtained and ends when control of the entity ceases to exist. The Company assesses control on an ongoing basis. Non-controlling interests in subsidiaries are identified separately from the Company's equity therein. The non-controlling shareholders ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the non- controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The financial statements of the Company and subsidiaries are prepared as of the same dates and periods. The condensed interim consolidated financial statements are prepared using uniform accounting policies by all subsidiaries of the Company. Transactions and balances between the Company and its consolidated entities have been eliminated on consolidation. The Company’s composition is made of the subsidiaries listed below. Name of entity Mar 31, 2025 Mar 31, 2024 Avante Security Inc. 100% 100% Avante International Inc. 100% 100% Avante Holding Corp. 100% 100% North Star Support Group S.R.L. 55% 55% The Reserve Inc. 51% 51% Ownership interest held at AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 8 - 3. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) On October 1, 2023 Avante Corp., set up a wholly owned subsidiary, Avante International Inc., to acquire a 55% stake in NSSG, a risk management and security company (note 11). The comprehensive purchase cost amounted to $1,834,561, with payment structured as a blend of $1,728,000 in cash and the issuance of 154,301 common shares in the Company. NSSG is consolidated with effect from October 1, 2023. In October 2023, Avante Corp., set up a wholly owned subsidiary, Avante Holding Corp and invested 51% in The Reserve. The Reserve is consolidated with effect from September 14, 2023 (note 15). Impairment of Non-Financial Assets Non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount, which is the higher of value in use and fair value less costs to sell, the asset is written down accordingly. In measuring value in use, the expected future cash flows are discounted using a pre- tax --- discount rate that reflects the risks specific to the asset. Impairment testing of goodwill and indefinite life intangible assets is done at least annually at the March 31 year end or when there are indicators of impairment. Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the CGU. Any impairment loss is charged to profit or loss, except to the extent they reverse gains previously recognized in other comprehensive loss/income. As of December 31, 2025, the Company has two CGUs, Avante Security and NSSG. The Company had the same CGU’s as of March 31, 2025. An impairment loss of an asset is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss is limited to the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years, and its recoverable amount. The reversal of impairment loss of an asset is recognized in profit and loss. Impairment losses on goodwill are not reversed. Accounting standards effective in the year IAS 1: Presentation of Financial Statements In January 2020 and in October 2022, the IASB issued Classification of Liabilities as Current or Non-current, which amends IAS 1 - Presentation of Financial Statements. The narrow scope amendments affect only the presentation of liabilities in the statement of financial position and not the amount or timing of their recognition. It clarifies that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period and specifies that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability. It also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The amendments also specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date (and therefore must be considered in assessing the classification of the liability as current or non-current. AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 9 - 3. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) These amendments were effective for annual periods beginning on or after January 1, 2024. The adoption of these amendments by the Company on April 1, 2024 did not have a material impact on these condensed interim consolidated financial statements. IFRS Accounting Standards issued but not yet adopted Presentation and Disclosure in Financial Statements: In April 2024, the IASB issued the new standard IFRS 18 – Presentation and Disclosure in Financial Statements that will replace IAS 1 – Presentation of Financial Statements. The new standard introduces newly defined subtotals on the income statement, requirements for aggregation and disaggregation of information, and disclosure of Management Performance Measures (“MPMs”) in the financial statements. The new standard is effective for annual reporting periods beginning on or aft --- er January 1, 2027, with early adoption permitted. The Company is assessing the impacts to the condensed interim consolidated financial statements. Classification and Measurement of Financial Instruments: In May 2024, the IASB issued amendments to IFRS 9 – Financial Instruments and IFRS 7 – Financial Instruments: Disclosures. The amendments relate to settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics of financial assets, including those with Environmental, Social, and Governance (“ESG”)-linked features. The IASB also amended disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income (“FVOCI”) and added disclosure requirements for financial instruments with contingent features. The amendments are effective for annual periods beginning on or after January 1, 2026, with early adoption permitted. The Company is assessing the impacts to the condensed interim consolidated financial statements. 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS a) Intangible assets and goodwill Management is required to use judgement in determining the economic useful lives of identifiable intangible assets. Judgement is also required in identifying indicators of impairment and in identifying the Company’s cash generating units (“CGUs”). The Company exercises judgement in the assessment of indefinite life for goodwill, considering its expected contribution to cash flows indefinitely and the insignificance of associated costs. The Company conducts annual impairment tests and assesses impairment if events or changes in circumstances indicate the asset may be impaired. Purchased intangibles are valued as at the acquisition date using established methodologies and amortized over their estimated useful economic lives. These valuations and lives are based on management's best estimates of future performance and periods over which value from the intangible assets will be derived. b) Revenue and contract assets There is judgement in determining the timing of revenue recognition pertaining to electronic installation services, where the entire contract is one performance obligation and is recognized over time using the percentage of completion basis. Timing of revenue recognition may differ from when customers are invoiced, which could result in contract assets or contract liabilities being recognized. AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 10 - 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) c) Segment Reporting The Company has exercised judgement in identifying its reportable segments based on the internal reporting structure and the information reviewed by the Chief Executive Officer (CEO), who is considered the Chief Operating Decision Maker (CODM), in accordance with IFRS 8 – Operating Segments. With the acquisition of NSSG on October 1, 2023, the Company has two reportable segments consisting of Avante Security and NSSG. Refer to Note 21. d) Assessment of Control The Company has exercised judgement in assessing control of its 55% acquisition of NSSG as required under IFRS 10 – Consolidated Financial statements (“IFRS 10”). To have control over an investee the investor must have all the following: 1) Power over the investee; 2) Exposure, or rights to variable returns and 3) the ability to use its power --- over the investee to affect the amount of the investor’s return. The Company assessed control by analyzing the substantive rights to direct the relevant activities of the investee. Management has concluded that it does control NSSG under IFRS 10. e) Estimates The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income (loss) in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year include accrued liabilities. These estimates are created based on management’s assumptions, based on current circumstances, and management believes represent a reasonable basis upon which to estimate the future liability. With respect to put option valuation, acquired through business combinations, the Company determines fair value using the formula as stated in the purchase and sale agreement. Refer to Note 11. 5. EARNINGS (LOSS) PER SHARE The following reflects the income (loss) and share data used in the basic and diluted earnings (loss) per share computations for the period ended: For the three-month period ended Dec 31, 2025 Dec 31, 2024 Basic and diluted income (loss) per share 0.004 (0.005) Total net income (loss) attributable to equity holders of the parent - basic and fully diluted 102,041 (144,967) Weighted average number of shares outstanding for basic and diluted calculation 26,648,739 26,643,739 For the nine-month period ended Dec 31, 2025 Dec 31, 2024 Basic and diluted income (loss) per share 0.008 (0.044) Total net income (loss) attributable to equity holders of the parent - basic and fully diluted 214,815 (1,165,137) Weighted average number of shares outstanding for basic and diluted calculation 26,648,739 26,643,739 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 11 - 6. REVENUE RECOGNITION a) Disaggregation of Revenue Revenue is recognized in a manner that depicts the transfer of promised goods or services to the customer and at an amount that reflects the consideration expected to be received in exchange for transferring those goods and services. Standard 30-day payment terms apply to the majority of accounts receivable for the Company. Segment revenues by service type for the three months ended December 31, 2025 and 2024 were as follows: Segment revenues by type of service for the nine months ended December 31, 2025 and 2024 were as follows: (b) Contract Assets and Liabilities Dec 31, 2025 Mar 31, 2025 Work-in-progress - contracts in process $ 299,679 $ 227,657 Avante Security NSSG Elimination Total Avante Security NSSG Elimination Total Protective Services 2,959,590 $ 2,959,590 $ 2,529,669 $ 2,529,669 $ Monitoring and Managed Services 1,543,135 (1,080) 1,542,055 1,406,659 (1,080) 1,405,579 Electronic Services 2,193,451 2,193,451 2,443,385 2,443,385 Secured Transport 702,397 1,200,561 (146,694) 1,756,264 295,554 941,164 (8,637) 1,228,081 Investigations 146,019 167,072 313,091 322,460 58,422 380,882 Specialized Security 215,933 215,933 190,857 (367) 190,490 Consulting 112,918 112,918 232,754 232,754 Auto storage 4,359 4,359 790 790 Total Revenue 7,764,884 $ 1,480,551 $ (147,774) $ 9,097,661 $ 7,189,372 $ 1,232,340 $ (10 --- ,084) $ 8,411,628 $ For the three-month period ended Dec 31, 2025 Dec 31, 2024 Avante Security NSSG Elimination Total Avante Security NSSG Elimination Total Protective Services 8,569,255 $ 8,569,255 $ 7,948,456 $ 7,948,456 $ Monitoring and Managed Services 4,482,735 (2,880) 4,479,855 4,101,501 (3,713) 4,097,788 Electronic Services 6,316,679 6,316,679 6,319,309 6,319,309 Secured Transport 2,098,867 4,048,827 (731,805) 5,415,889 1,267,404 2,267,678 (110,661) 3,424,421 Investigations 778,972 320,921 1,099,893 1,540,750 140,639 (2,343) 1,679,046 Specialized Security 542,614 542,614 396,750 396,750 Consulting 291,406 291,406 540,817 540,817 Auto storage 8,369 8,369 8,632 8,632 Total Revenue 22,797,491 $ 4,661,154 $ (734,685) $ 26,723,960 $ 21,582,802 $ 2,949,134 $ (116,717) $ 24,415,219 $ For the nine-month period ended Dec 31, 2025 Dec 31, 2024 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 12 - 6. REVENUE RECOGNITION (CONTINUED) Timing differences between invoicing, cash collection, and revenue recognition results in accounts receivable and also results in unbilled work-in-progress (contract assets), and deferred revenue (contract liabilities) on the consolidated statements of financial position. Amounts are billed in accordance with the terms of each customer contract, generally subsequent to the performance of obligations and related revenue recognition, resulting in accounts receivable with standard payment terms of ‘Net 30 Days’ for these types of contracts. For certain contracts, the Company receives customer payment prior to satisfying contracted obligations and recognizing revenue, resulting in deferred revenue (contract liabilities). Contract liabilities balance at March 31, 2024 $ 2,388,521 Additions during the year 16,243,123 Recognized during the year (15,776,445) Contract liabilities balance at March 31, 2025 to be recognized in fiscal year 2026 2,855,198 Contract liabilities balance at March 31, 2025 $ 2,855,198 Additions during the year 8,792,139 Recognized during the year (7,608,533) Contract liabilities balance at December 31, 2025 to be recognized in fiscal year 2026 1,009,700 Contract liabilities balance at December 31, 2025 to be recognized after fiscal year 2026 3,029,104 Contract liabilities balance at December 31, 2025 $ 4,038,804 7. ACCOUNTS RECEIVABLE The accounts receivable on the financial statements are net of allowance for expected credit losses of $183,456 as at December 31, 2025 (March 31, 2025: $183,456). Changes in the allowance for expected credit losses during the period were as follows: Dec 31, 2025 Mar 31, 2025 Allowance for expected credit losses - opening balance $ 183,456 $ 232,050 Net increase (decrease) during the year - (48,594) Allowance for expected credit losses - closing balance $ 183,456 $ 183,456 As at December 31, 2025 and March 31, 2025, the aging of the Company’s accounts receivables was as follows: Balance Due 1 - 30 Days 31 - 60 Days 61 - 90 Days Over 90 Days Trade receivables 6,994,128 $3,600,477 $604,602 $481,459 $2,307,590 Unbilled trade receivables 28,831 - - - 28,831 Non-trade receivables 586,941 - - - 586,941 Allowance for doubtful accounts (183,456) - - - (183,456) Balance at March 31, 2025 $7,426,444 $3,600,477 $604,602 $481,459 $2,739,906 Trade receivables 7,015,578 $3,137,749 $464,530 $454,175 $2,959,123 Unbilled trade receivables 293,478 264,647 - - 28,831 Non-trade --- receivables 378,559 - - - 378,559 Allowance for doubtful accounts (183,456) - - - (183,456) Balance at Dec 31, 2025 $7,504,159 $3,402,396 $464,530 $454,175 $3,183,057 The consolidated entity has recognized a loss of $nil from continuing operations at December 31, 2025 in profit or loss in respect of the expected credit losses for the nine months then ended (December 31, 2024: a AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 13 - 7. ACCOUNTS RECEIVABLE (CONTINUED) recovery of $38,734). As at December 31, 2025, there was $2,987,954 (March 31, 2025: $2,336,421) of accounts receivable outstanding for over 90 days of which management did not consider $2,804,498 (March 31, 2025: $2,152,965) impaired. As of December 31, 2025, non-trade receivables include the estimated amount due from SSC in respect of the Company’s sale of Logixx Security and GIC interest unpaid. 8. INVENTORIES Dec 31, 2025 Mar 31, 2025 Inventory $ 1,047,283 $ 1,031,149 All inventory is considered finished goods. Inventory expensed to cost of sales during the three and nine months ended December 31, 2025, amounted to $769,856 and $1,989,522 respectively (December 31, 2024: $516,874 and $1,770,122 for the three and nine-month periods). 9. PROPERTY, PLANT AND EQUIPMENT Computer equipment Equipment, furniture and fixtures Equipment - MAST Leasehold improvements Right-of-use asset Vehicles Uniforms Buildings Total $ $ $ $ $ $ $ $ $ Cost Balance at March 31, 2025 576,679 $ 877,219 $ 855,363 $ 2,589,178 $ 92,876 $ 230,710 $ 473,300 $ 5,695,326 $ Additions 42,584 16,052 284,570 47,383 775,479 18,961 38,255 1,223,283 Disposals (624,001) 624,001 - Foreign exchange gain (loss) Balance at December 31, 2025 619,263 893,271 284,570 902,746 2,740,656 111,837 268,965 473,300 6,294,608 Accumulated depreciation Balance at March 31, 2025 448,779 586,284 755,657 1,378,158 51,395 102,663 121,481 3,444,417 Depreciation 43,507 37,962 7,114 24,037 562,036 12,415 31,207 14,199 732,477 Disposals (474,465) 474,465 - Foreign exchange gain (loss) Balance at December 31, 2025 492,286 624,246 7,114 779,694 1,465,729 63,810 133,870 135,680 3,702,429 Carrying Amounts Balance at March 31, 2025 127,900 290,935 - 99,707 1,211,020 41,481 128,047 351,819 2,250,909 Balance at December 31, 2025 126,977 $ 269,025 $ 277,456 $ 123,052 $ 1,274,927 $ 48,027 $ 135,095 $ 337,620 $ 2,592,179 $ AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 14 - 9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Computer equipment Equipment, furniture and fixtures Leasehold improvements Computer software Software under development Right-of-use asset Vehicles Uniforms Buildings Total $ $ $ $ $ $ $ $ $ Cost Balance at March 31, 2024 519,503 $ 798,159 $ 817,782 $ 345,418 $ - $ 2,066,128 $ 81,176 $ 143,143 $ 473,300 $ 5,244,609 $ Additions 55,500 57,546 - - 554,345 610,330 - 72,434 - 1,350,155 Disposals - - - - - (141,042) - - - (141,042) Foreign exchange gain (loss) - 1,479 - - - (6,407) - - - (4,928) Balance at December 31, 2024 575,003 857,184 817,782 345,418 554,345 2,529,009 81,176 215,577 473,300 6,448,794 Accumulated depreciation Balance at March 31, 2024 409,521 518,312 731,639 345,418 - 691,228 36,542 73,645 102,549 2,908,854 Depreciation 28,894 47,759 14,719 - - 621,391 10,043 21,361 14,199 758,366 Disposals - - - - - ( --- 123,069) - - - (123,069) Foreign exchange gain (loss) - 369 - - - (8,360) - - - (7,991) Balance at December 31, 2024 438,415 566,440 746,358 345,418 - 1,181,190 46,585 95,006 116,748 3,536,159 Carrying Amounts Balance at March 31, 2024 109,982 279,847 86,143 - - 1,374,900 44,634 69,498 370,751 2,335,755 Balance at December 31, 2024 136,588 $ 290,744 $ 71,424 $ - $ 554,345 $ 1,347,819 $ 34,591 $ 120,571 $ 356,552 $ 2,912,635 $ AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 15 - 9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Depreciation expense is $254,854 and $732,477 for the three months and nine months ended December 31, 2025 (three months and nine months ended December 31, 2024: $266,746 and $758,366). The Company carries two categories of right-of-use assets: vehicles and property. At December 31, 2025 the carrying amount of vehicles under lease was $831,193 (March 31, 2025: $641,610), with $108,629 and $342,343 of depreciation for the three months and nine months ended December 31, 2025 (three months and nine months ended December 31, 2024: $148,744 and $414,990). The right-of-use asset property had a carrying amount of $443,733 at December 31, 2025 (March 31, 2025: $569,410). Depreciation in the amount of $90,679 and $219,693 is included for the three and nine months ended December 31, 2025 (three months and nine months ended December 31, 2024: $69,372 and $206,401). All assets of the Company, including its Accounts Receivables, Inventories and Property, Plant and Equipment, have been pledged as general security against the senior secured credit facilities established with the Company’s bank (Note 12). Gains and losses on disposals are booked in the miscellaneous (income) expense line on the condensed interim consolidated statement of income and comprehensive income. 10. GOODWILL AND INTANGIBLE ASSETS A. INTANGIBLE ASSETS Consolidated Trade Name and Other Customer relationships Software Total $ $ $ $ Cost Balance at March 31, 2025 $663,111 $5,218,330 $870,367 $6,751,808 Additions $236,099 $236,099 Disposal Balance at Dec. 31, 2025 $663,111 $5,218,330 $1,106,466 $6,987,907 Amortization Balance at March 31, 2025 $246,344 $3,932,154 $345,418 $4,523,916 Amortization for the period $83,907 $394,702 $20,405 $499,014 Disposal Balance at Dec. 31, 2025 $330,251 $4,326,856 $365,823 $5,022,930 Carrying amounts Balance at March 31, 2025 $416,767 $1,286,176 $524,949 $2,227,892 Balance at Dec. 31, 2025 $332,860 $891,474 $740,643 $1,964,977 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 16 - 10. GOODWILL AND INTANGIBLE ASSETS (CONTINUED) On December 1, 2022 the Company acquired the customer list of C & B Alarms Ltd (“C&B Alarms”) pursuant to an Asset Purchase Agreement between the Company and C & B Alarms Ltd. (“C&B”) in the Muskoka region. The total purchase price was $575,000, $431,250 was paid in cash, the Company held back $143,750 of the purchase price against certain representations and warranties. The full amount of the acquisition was allocated to the intangible asset Customer Relationships on the consolidated statements of financial position as of March 31, 2023. During the year ended March 31, 2025, as the criteria for release of the holdback were not met, the amount of $143,750 was not paid to the seller and was dere --- cognized from the purchase consideration. On October 1, 2023, Avante Corp., acquired a controlling interest of 55% in NSSG, an international risk management and security company. The comprehensive purchase cost amounted to $1,834,561, with payment structured as a blend of $1,728,000 in cash and the issuance of 154,301 common shares in the Company. NSSG is consolidated with effect from October 1, 2023. As a result of the acquisition of NSSG, the Company recorded $1,185,560 of identifiable intangible assets. These intangible assets are primarily related to customer relationships and trade name, with useful lives ranging from 5.25 to 9.25 years. Intangible amortization expense for the three months and nine months ended December 31, 2025 is $164,973 and $499,014 (three months and nine months ended December 31, 2024: $161,272 and $483,816). B. GOODWILL Balance at March 31, 2024 $ 4,501,317 Revaluation of foreign subsidiary goodwill $(61,173) Balance at March 31, 2025 $ 4,440,144 Balance at December 31, 2025 $ 4,440,144 The above intangible assets and goodwill were acquired upon the acquisitions of the businesses of INTO Electronics Inc. at August 22, 2014, LVS Inc. at April 1, 2015, Architronics Limited (“Architronics”) at March 1, 2017 and Watermark Security Inc. at August 1, 2018 as well as the acquisition of the business of NSSG at October 1, 2023. The goodwill recognized on NSSG acquisition is primarily attributed to the anticipated synergy in services, global expansion through leveraging respective networks, innovation and expertise in technology, and enhanced operational efficiency. The key assumptions used to calculate the fair value of these intangible assets include discount rates, growth rates and margins. The cost of goodwill is calculated as the excess of purchase price of the acquired business over the estimated fair value of the tangible and intangible assets acquired and liabilities assumed at the date of acquisition and is allocated to the cash generating unit (“CGU”) expected to benefit from the acquisition. A CGU is the smallest group of assets for which there are separate identifiable cash flows. The Company has determined that it has two CGUs as at both December 31, 2025 and March 31, 2025: Avante Security and NSSG. Trade Name Customer relationships Order backlog Total $ $ $ $ Cost Balance at March 31, 2024 $660,026 $5,362,080 $262,000 $6,284,106 Additions - - - - Disposals (143,750) (143,750) Balance at December 31, 2024 660,026 5,218,330 262,000 6,140,356 Amortization Balance at March 31, 2024 $136,030 $3,397,379 $262,000 $3,795,409 Amortization 82,736 401,081 - 483,816 Balance at December 31, 2024 218,765 3,798,460 262,000 4,279,226 Carrying amounts Balance at March 31, 2024 523,996 $ 1,964,701 $ - $ 2,488,697 $ Balance at December 31, 2024 441,260 $ 1,419,871 $ - $ 1,861,130 $ AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 17 - 10. GOODWILL AND INTANGIBLE ASSETS (CONTINUED) Capitalized Commission Commissions on long-term contracts (12 months in length or longer) are capitalized at the initiation of the contract and amortized over the length of the contract as revenue is recognized. The unamortized amount of commission on long-term contracts as of December 31, 2025 was $3,086 (March 31, 2025: $3,086), with $nil amortized in the three months and nine months ended December 31, 2025 (three months and nine months --- ended December 31, 2024: $1,572 and $4,132). 11. BUSINESS ACQUISITIONS/DISPOSITIONS The Company accounts for business combinations using the acquisition method, in accordance with IFRS 3 - Business Combinations (“IFRS 3”). The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired. In determining the purchase price allocation, the Company considers, among other factors, the intended future use of acquired assets, analysis of historical financial performance, and estimates of future performance of the acquiree. Any goodwill that arises generally reflects expected revenue and cost synergies from combining the acquiree with the Company's existing businesses. The Company aims to finalize the measurement of the fair values of the assets acquired and liabilities assumed within twelve months following the date of acquisition, as it obtains the information necessary to complete the measurement process. Unless specified otherwise, the fair values presented in the purchase price allocation tables below are provisional. Any changes resulting from facts and circumstances that existed as of the date of acquisition will result in retrospective adjustments to the provisional amounts, recognized at the acquisition date. Acquisition-related costs are recognized as incurred, in profit or loss, within Reorganization and acquisition costs. Acquisition of Veridin Systems Canada Inc. and Intelligarde International Inc., subsequently sold to SSC Veridin Systems Canada Inc. was acquired by the Company on September 17, 2018 and integrated with Logixx Security and sold to SSC on June 1, 2022. Within an escrow account, the Company held back $94,923 of the purchase price against certain representations and warranties. The parties are engaged in litigation processes to settle the amounts owing between the parties. On May 7, 2024, the Company agreed to settle with sellers of Intelligarde International Inc. for the holdback related to the acquisition. The total amount of the holdback, held in escrow, was $549,299. The Company received $239,333 recorded as miscellaneous income. Acquisition of NSSG On October 1, 2023 Avante Corp., via its subsidiary Avante International Inc., acquired a controlling interest of 55% in NSSG, an international risk management and security company. The comprehensive purchase cost amounted to $1,834,561, with payment structured as a blend of $1,728,000 in cash and the issuance of 154,301 common shares in the Company. NSSG is consolidated with effect from October 1, 2023. The acquisition was undertaken to strengthen the Group's presence in the global security market by utilizing NSSG's worldwide client base for cross-selling its services and technology to NSSG's Fortune 500 clients. As part of the transaction, the Company entered into a shareholder’s agreement with respect to NSSG and a loan agreement with NSSG. Pursuant to the loan agreement, the Company will, indirectly through the Purchaser, advance to NSSG a loan in principal amount of up to EUR 1,000,000 for a term of 4 years, bearing interest at a rate equal to the Bank of Canada Prime Rate plus 1%, and repayable in 8 quarterly equal repayments starting on the date that is 24 months after the date of each drawdown under the loan. This first AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 18 - 11. BUSINESS ACQUISITION --- S/DISPOSITIONS (CONTINUED) draw of EUR 500,000 was executed on September 25, 2023. 12. BANK INDEBTEDNESS As of June 1, 2022, the Company entered into amended credit facilities with the bank consisting of a $2 million revolving credit facility, together with credit card facilities for each of Avante Corp. and Avante Security, supported by a first fixed security interest in favour of the bank over all assets of Avante Corp. and Avante Security. Such credit arrangements are provided by the bank on a demand basis. The provision of the credit facilities is subject to a minimum consolidated current ratio of 1.20 as of March 31, 2023, and thereafter, and the Company was in compliance with that covenant as of December 31, 2025. The agreement further stipulates that the advances cannot exceed 75% of accounts receivable and 50% of inventory less priority payables; the Company is in compliance with these requirements as of December 31, 2025. Drawings under the revolver are permitted by way of letters of credit (at 2.00% per annum), prime rate advances (at the bank’s prime rate plus 0.50%) and bankers’ acceptances (stamping fee of 2.00%). As of December 31, 2025 and March 31, 2025, there were no drawings on the line of credit. The Company must maintain a current asset to current liability ratio of at least 1.20:1.00 at all times, as calculated on a quarterly basis. The Company was onside with covenants throughout the year and as at December 31, 2025. The borrowing base of the line of credit is 75% of accounts receivable, excluding items aged greater than ninety days, plus 50% of inventory less priority payables which consist of accrued payments such as salaries, commissions and HST payable. The Company borrowing base must exceed the amount borrowed on the line of credit. On July 7, 2022, the Company executed an unsecured Loan Agreement with affiliates of Fairfax Financial Holdings Limited (“Fairfax”), who collectively own 19.88% of the Company’s common shares as of December 31, 2025 and March 31, 2025 for $10 million. This note should be read in conjunction with the related-party transactions Note 19 to fully understand the nature and impact of the Loan Agreement with Fairfax affiliates. Interest on bank loans expensed in the condensed interim consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended December 31, 2025 is $14,495 and $44,694. 13. OBLIGATIONS UNDER LEASE The Company’s lease payments are discounted using the interest rate implicit in the lease, or if that cannot be determined, the Company’s incremental borrowing rate. Vehicle lease and property lease liabilities as of the respective period ends were as follows: AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 19 - 13. OBLIGATIONS UNDER LEASE (CONTINUED) The Company leased certain vehicles with a value of $693,158 (March 31, 2025: $636,678), at an effective annual rate of interest of 22.45% (March 31, 2025: 23.60%). The payment terms include blended monthly payments of $65,884 plus applicable taxes (March 31, 2025: $56,276) for 12 to 48 months ending between January 2026 and May 2029, with an aggregate buy out obligation of $nil as of December 31, 2025 (March 31, 2025: $nil). Interest expense from these leases, included in the condensed interim consolidated statements of income (loss) and comprehensive income (loss) for the thr --- ee and nine months ended December 31, 2025 was $39,022 and $112,866 (three and nine months ended December 31, 2024: $39,754 and $129,737). Various office properties with a value of $499,877 (March 31, 2025: $620,096), are leased with blended monthly payments of $27,607 plus applicable taxes (March 31, 2025: $27,067). An incremental borrowing rate of 6.9% is used. The property leases end in January 2028. Interest expense from these leases, included in the condensed interim consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended December 31, 2025 was $8,343 and $27,904 (three and nine months ended December 31, 2024: $16,351 and $43,455). 14. SHAREHOLDERS’ EQUITY [a] Share capital issued and outstanding Unlimited common shares Number of Shares Amount Balance at March 31, 2024 26,643,739 $ 30,233,361 Issuance of common shares 5,000 $5,673 Balance at March 31, 2025 26,648,739 $ 30,239,034 Balance at December 31, 2025 26,648,739 $ 30,239,034 Vehicle lease liability Property lease liability Total liability Balance at March 31, 2024 557,054 $ 823,094 $ 1,380,148 $ Additions during the year 583,183 12,177 595,360 Disposals during the year (18,911) - (18,911) Principal payments (484,648) (215,175) (699,823) Balance at March 31, 2025 636,678 $ 620,096 $ 1,256,774 $ Current obligations under lease 414,552 251,076 665,628 Long-term obligations under lease 222,126 369,020 591,146 Balance at March 31, 2025 636,678 $ 620,096 $ 1,256,774 $ Additions during the year 678,904 - 678,904 Disposals during the year (117,871) - (117,871) Principal payments (341,313) (165,455) (506,768) Balance at December 31, 2025 856,397 $ 454,641 $ 1,311,038 $ Current obligations under lease 455,292 306,129 761,421 Long-term obligations under lease 401,105 148,512 549,617 Balance at December 31, 2025 856,397 $ 454,641 $ 1,311,038 $ AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 20 - 14. SHAREHOLDERS’ EQUITY (CONTINUED) [b] Share options The Company has an incentive Share Option Plan (“the Plan”) under which non-transferable options to purchase common shares of the Company may be granted to directors, officers, employees or service providers of the Company. The terms of the Plan provide that the Directors have the right to grant options to acquire common shares of the Company at not less than the closing market price of the shares on the day preceding the grant at terms of up to ten years. No amounts are paid or payable by the recipient on receipt of the option. Options for Directors vest when granted, while vesting of options for non-directors is as follows: 33.33% on the first anniversary; 33.33% on the second anniversary; and the remainder on the third anniversary following the grant date. For the chairman of the Board vesting of the options is as follows: 25% of the option will vest on the first anniversary; 25% on the second anniversary; 25% on the third anniversary; and the remainder on the fourth anniversary following the grant date. On September 29, 2015, the shareholders of the Company approved an amendment to the stock option plan whereby it reverted to a 10% rolling stock option plan. This plan is approved annually by the shareholders of the Company and was again approved by the shareholders on October 21, 2024. Accordingly, the Company has a total of 969,874 options available to be issued as at December --- 31, 2025, with the maximum term remaining at 10 years (March 31, 2025: 954,874). Number of Options Weighted Average Exercise Price Balance at March 31, 2024 1,465,000 $0.93 Option granted during the year 370,000 $0.81 Option forfeited during the year (120,000) $0.81 Options exercised during the year (5,000) $0.88 Balance at March 31, 2025 1,710,000 $0.91 Option granted during the year 115,000 $0.99 Option forfeited during the year (130,000) $0.82 Balance at December 31, 2025 1,695,000 $0.93 During the nine months ended December 31, 2025, 115,000 share options were issued to employees with strike prices ranging from $0.98 to $1.03, and 130,000 share options were forfeited. During the nine months ended December 31, 2024, 370,000 share options were issued to employees, and the strike price was $0.81, no share options were forfeited. None of the outstanding options were exercised in the nine months ended December 31, 2025. Using the Black-Scholes pricing model, the Company recognized $1,426 in expenses for forfeited options for the nine months ended December 31, 2025 (nine months ended December 31, 2024: $nil for forfeited options). Total share-based payments expensed during three and nine months ended December 31, 2025 amounted to $32,712 and $65,207 (three and nine months ended December 31, 2024: $50,008 and $95,219). In calculating the share-based compensation expense, the Company used the assumptions as listed below as at the date of grants: 2026 2025 Risk-free interest rate 2.8% 2.8% Expected volatility 68.47% 68.47% Expected time until exercise 10 years 10 years Expected dividend yield NIL NIL Expected forfeiture 20% 20% Share price $0.81 $0.81 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 21 - 14. SHAREHOLDERS’ EQUITY (CONTINUED) The expected price volatility is based on the historic volatility (based on the expected life of the options), adjusted for any expected changes to future volatility due to publicly available information. The following table summarizes stock options vested and outstanding at December 31, 2025: 15. NON-CONTROLLING INTERESTS On October 1, 2023, the Company acquired control of North Star Support Group S.R.L. (“NSSG”) upon achieving economic and voting interests of 55%. As a result, effective October 1, 2023, the Company commenced consolidating the entity. The transaction has been accounted for as a business combination in accordance with IFRS 3 - Business Combinations. Following the acquisition of NSSG, Mrs. Grigore, the former owner, was granted a put option. At the initial recognition of this put option, the NCI related to the shares subject to the option was eliminated. The difference between the present value of the gross obligation that could be required to be paid and the carrying amount of the NCI was adjusted within equity. Refer to note 4 for additional details on the change in accounting policy related to this put option. The following table summarizes the financial information related to NSSG, before any intra-group eliminations: 2022-04-28 200,000 1.32 200,000 0.88 2027-04-28 2022-04-28 200,000 1.32 200,000 0.97 2027-04-28 2022-04-28 200,000 1.32 200,000 1.07 2027-04-28 2022-04-28 200,000 1.32 - 1.18 2027-04-28 2022-04-28 100,000 1.32 100,000 0.88 2027-04-28 2022-09-26 250,000 1.74 250,000 0.80 2027-09-26 2022-10-11 200,000 1.74 200,000 0.77 2027-09-26 2023-08-29 100,000 2.66 100,000 0.8 --- 8 2028-08-29 2024-09-27 130,000 8.75 43,333 0.81 2034-09-27 2025-06-06 25,000 9.44 - 0.98 2035-06-06 2025-06-06 60,000 9.44 - 0.98 2035-06-06 2025-11-25 15,000 4.90 - 1.03 2030-11-25 2025-11-25 15,000 4.90 - 1.03 2030-11-25 1,695,000 1,293,333 1. Expiry date extended in accordance with the share option plan. Grant Date Number of Options Outstanding Remaining Years Number of Options Vested Exercise Price Expiry Date AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 22 - 15. NON-CONTROLLING INTERESTS (CONTINUED) The Reserve In September 2023, Avante Corp., operating through its subsidiary Avante Holding Corp., formally established The Reserve, which commenced its services in December 2023. The following table summarizes the financial information related to The Reserve, before any intra-group eliminations: NSSG As at (and for the period ended) Dec 31, 2025 Mar 31, 2025 Current assets 1,798,969 1,234,165 Non-current assets 100,843 80,852 Current liabilities (2,163,023) (1,357,671) Non-current liabilities (375,801) (936,978) Net assets (100%) (639,012) (979,632) Revenue 4,661,155 4,299,724 Net income (loss) 340,620 (170,428) Other comprehensive income (21,423) (48,189) Total comprehensive income (loss) (100%) 319,197 (218,617) NCI Cash flows from operating activities 490,688 (270,053) Cash flows from investment activities (108,751) (54,126) Cash flows from financing activities 10,717 (48,390) Net increase (decrease) in cash and cash equivalents 392,654 (372,569) The Reserve As at (and for the period ended) Dec 31, 2025 Mar 31, 2025 Current assets 42,947 37,854 Non-current assets 146,927 186,048 Current liabilities (345,573) (295,488) Non-current liabilities (26,698) Net assets (100%) (155,699) (98,284) Revenue 8,369 27,898 Net income (loss) (57,415) (56,334) Other comprehensive income - - Total comprehensive income (loss) (100%) (57,415) (56,334) NCI (28,133) (27,603) Cash flows from operating activities 59,222 102,601 Cash flows from investment activities (16,843) (16,843) Cash flows from financing activities (37,286) (54,600) Net increase (decrease) in cash and cash equivalents 5,093 31,158 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 23 - 16. INCOME TAXES In prior annual fiscal years, the Company incurred non-capital losses for income tax purposes. Those losses are available to the Company to reduce the current portion of income taxes payable, if any. Income tax expense is recognized based on management’s estimate of tax rates of 26.5% expected to be in effect for the Company’s full financial year. For the nine months ending December 31, 2025, the Company recognized current income tax expenses of $24,851. For the nine months ending December 31, 2025, the Company recognized $nil deferred income tax expense from continuing operations (nine months ended December 31, 2024: $1,508 deferred income tax recovery). The deferred tax assets are attributable to previously unused non-capital tax loss carry forwards that it estimates will be used against taxable income for the year ended March 31, 2026 and future taxable periods. 17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT [a] Risk management The Company is exposed through its operations to the following financial risks:  Market Risk  Credit Risk  Liquidity Risk In common with a --- ll other businesses, the Company is exposed to risks that arise from its use of financial instruments. This note describes the Company’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these condensed interim consolidated financial statements. There have been no substantive changes in the Company’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous years unless otherwise stated in this note. General Objectives, Policies and Processes: The Board of Directors has overall responsibility for the determination of the Company’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Company’s management. The Board of Directors receives quarterly reports from the Company’s management, through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Company’s competitiveness and flexibility. Further details regarding these policies are set out below. a) 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. Market prices are primarily comprised of two types of risk: foreign currency risk and interest rate risk. Foreign Currency Risk: Foreign currency risk is the risk that a variation in exchange rates between the Canadian dollar and other foreign currencies will affect the Company’s operations and financial results. AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 24 - 17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED) The Company is exposed to foreign currency risk on revenue and expenses where it invoices or procures in a foreign currency. It is also exposed to foreign currency risk on cash and cash equivalents, trade receivables, trade payables and loans payable denominated in foreign currencies, principally in USD, GBP and RON. The Company does not employ any hedging strategies or use derivative instruments to mitigate this risk. Financial instruments held by NSSG are denominated in the NSSG functional currency of Euros, and the effect of foreign exchange rate movements on the Company's share of these condensed interim consolidated financial instruments is included in accumulated other comprehensive income (loss) in the consolidated statements of financial position. Interest Rate Risk: Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The Company has an available revolving credit facility limit, provided on a demand basis, from its bank of $2,000,000 (as of June 1, 2022) and an unsecured term loan facility from its largest shareholder of $10,000,000 (as of July 7, 2022) but neither credit arrangement was utilized as of December 31, 2025. The Company also invests surplus funds in one-year, cashable guaranteed investment certificates issued by its bank --- at fixed interest rates, given the interest rate is fixed on these instruments, interest rate risk is minimal. b) Credit Risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. For credit risk on accounts receivable see Note 8. Financial instruments, which are potentially subject to credit risk for the Company consist primarily of cash and cash equivalents, guaranteed investment certificates, accounts receivables, and amounts due from the purchasers of Logixx Security. The carrying amounts of financial assets represent the maximum credit exposure. The Company has gross credit exposure at December 31, 2025 relating to cash of $3,228,097 (March 31, 2025: $2,261,311) and guaranteed investment certificates of $1,734,959 (March 31, 2025: $2,462,177). All cash and guaranteed investment certificates are held in or with Canadian banks and Romanian banks which have credit ratings of A+ and Aa2 from rating agencies Standard & Poor’s and Moody’s respectively. The Company has performed a sensitivity analysis on changes in the credit risk associated with these banks and considers this risk to be minimal for all cash assets based on changes that are reasonably possible at the reporting date. For credit risk on accounts receivable see Note 7. c) Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it will have sufficient cash to allow it to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of approximately 90 days. To achieve this objective, the Company prepares annual financial budgets and updates short-term liquidity requirements at least monthly based on revised estimates. Further, the Company utilizes delegated authorizations for varying expenditure levels and types to further manage expenditure. The Company also monitors its risk of shortage of funds by monitoring the maturity dates of existing trade and other accounts payable. The following table sets out the Company’s contractual maturities (representing undiscounted contractual cash flows including interest) of financial liabilities: AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 25 - 17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED) Contractual amounts reflect undiscounted principal payments and future interest payments. Carrying amount excludes interest, is discounted, includes any residual value. The Company maintains a liquidity position that meets its current and future obligations. As of December 31, 2025, the Company holds cash and cash equivalents totaling $4,963,056 (March 31, 2025: $4,723,488). Additionally, the Company has access to undrawn credit facilities amounting to $12,000,000 (March 31, 2025: $12,000,000). Based on the current liquidity position, available credit facilities, and ongoing financial planning, management is confident that the Company can meet any obligations arising from the exercise of the put option or accelerated put option by NCI. The working capital as at December 31, 2025 was $6,573,51 --- 9 compared to $6,317,657 at March 31, 2025. d) Fair Value Hierarchy: Financial instruments that are measured subsequent to initial recognition at fair value or disclosed at fair value are grouped in 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).  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). 18. CAPITAL MANAGEMENT The Company defines its cash, guaranteed investment certificates, common shares and stock options as capital. The Company‘s objectives when maintaining capital are: a. To preserve the ability to ensure business continuity thereby creating a return for the shareholders, investors and other interested parties. b. To ensure adequate return for the shareholders by pricing of services that is adjusted to the level of risk in the business activity. To support business activity and maximize shareholder value, the Company takes into consideration various factors, including the growth of the business-related infrastructure and the up-front cost of developing new services. The Company’s officers and senior management are responsible for managing the capital and do so through monthly meetings and regular review of financial information. The Board of Directors is responsible for overseeing this process. The Company manages capital with the objective of maintaining adequate capital resources through the optimization of the cash flows from operations and capital transactions. As of June 1, 2022 and July 7, 2022, the Company’s new senior secured credit facility provided on a demand basis and its new unsecured term Up to 3 months 3 to 12 months 1 to 2 years 2 to 5 years Over 5 years Contractual amount Carrying amount At March 31, 2025 3,595,695 $ 827,211 $ 451,106 $ 232,729 $ - $ 5,106,740 $ 4,896,443 $ Accounts payable 3,046,823 - - - 3,046,823 3,046,823 Obligations under lease 156,079 605,342 457,225 237,339 - 1,455,985 1,311,038 At December 31, 2025 3,202,902 $ 605,342 $ 457,225 $ 237,339 $ - $ 4,502,808 $ 4,357,861 $ AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 26 - 18. CAPITAL MANAGEMENT (CONTINUED) loan facility, respectively, are both subject to financial covenants, draw conditions and other terms that must be complied with in order for such sources of financing to be used by the Company (Note 12). The Company has complied with all the terms of both facilities as at December 31, 2025 and March 31, 2025. 19. RELATED PARTY TRANSACTIONS The Company entered into a contract effective May 1, 2018 with a private company controlled by a significant shareholder (and subsequent to March 30, 2022 an officer) to provide consulting services for the Company. The Company incurred $nil of expense in the nine-month period ended December 31, 2025 (December 31, 2024: $nil). The balance outstanding payable by the Company at December 31, 2025, is $3,087 (March 31, 2025: $3,087). During the year ended March --- 31, 2024, the Company entered into an employee contract with a family member of a significant shareholder and an officer of the Company. Under the terms of the contract, the family member provided sales services to the Company on a contractual basis. The total amount paid to the family member for services rendered during the nine-month period ended December 31, 2025, was $94,674 (nine-month period ended December 31, 2024: $39,722). The terms of the contract were negotiated at arm’s length and were comparable to those that would be offered to unrelated third parties. During the year ended March 31, 2024, the Company entered into a consulting agreement with a family member of a significant shareholder and an officer of the Company. Under the terms of the agreement, the family member provided strategic consulting services to the Company on a contract basis. The total amount paid to the family member for services rendered during the nine-month period ended December 31, 2025 was $37,462 (nine-month period ended December 31, 2024: $29,231). The terms of the agreement were negotiated at arm’s length and were comparable to those that would be provided to unrelated third parties. On July 7, 2022, the Company executed an unsecured Loan Agreement with affiliates of Fairfax Financial Holdings Limited that also collectively own 19.88% of the Company’s common shares. Pursuant to the Loan Agreement, the Company is permitted to draw, on a non-revolving basis, up to $10 million of loans until July 7, 2027 for terms to maturity ending on July 7, 2027, at an interest rate of 5.0% that can be paid by the Company in cash or in kind. A standby fee of 0.5% per annum is charged by Fairfax on the unused portion of the term loan facility, and the fee is recorded within the interest expense on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) in the amount of $37,500 (nine- month period ended December 31, 2024: $37,500). The Loan Agreement ranks junior to the senior secured credit facilities provided by the Company’s bank, but are guaranteed on an unsecured basis by all subsidiaries of the Company. Pursuant to the Loan Agreement, the Company’s consolidated senior indebtedness (excluding drawings under the Term Loan and net of permitted cash balances) shall not exceed 3.5 times Adjusted EBITDA (as defined in the Loan Agreement) on a rolling four quarter basis. In addition, further drawings under the Loan Agreement are conditional on the Company’s existing Chief Executive Officer being involved in the day-to- day operations of the Company. To date, there have not been any drawings advanced under the Loan Agreement. Remuneration of Directors and Officers was as follows: Directors and Officers Remuneration 31-Dec-25 31-Dec-24 Salaries, short term employee benefits 495,183 $ 509,928 $ Bonus (short-term and long-term) 515,157 437,219 Director fees 150,000 150,000 Share based payments 26,016 64,565 1,186,356 $ 1,161,712 $ For the nine-month period ended AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 27 - 19. RELATED PARTY TRANSACTIONS (CONTINUED) On April 8, 2022, the Company provided a long-term incentive plan to a director and officer of the Corporation. Under this plan, 1 million shares were to be granted on April 1, 2027, and an additional 1 million shares were to be granted upon the announcement of the Company --- ’s earnings per share for the fiscal year 2027, contingent on meeting certain performance targets. The officers of the Company receive the short-term compensation based on achieving targeted free cash flow as determined by the Compensation committee on an annual basis. The officers of the Company are eligible for long-term incentive payments, structured as cash-settled share- based payments, contingent upon specific criteria. At the reporting date, the fair value of the outstanding liability for cash-settled share-based payments was $1,958,032 (March 31, 2025: $1,442,875). The total expense recognized for the nine-month period ended December 31, 2025 arising from cash-settled share-based payments was $515,157 (December 31, 2024: expense of $437,219), which is included in employee benefits expense. This amount reflects the fair value of the share-based payments remeasured at the reporting date. One officer is entitled to receive the incentive payment based on the earlier of: • The date the officer's employment is terminated, however such termination is caused, or • August 2028. The other officer is entitled to receive the incentive payment based on the earlier of: • The involuntary termination of either the first officer or himself, or • August 2028. Directors are eligible for an annual allowance of $5,000 towards security services from the Company. 20. REORGANIZATION AND ACQUISITION COSTS The Company incurred reorganization and acquisition costs in the amount of $nil for the nine months ended December 31, 2025 (nine months ended December 31, 2024: $720,451). The costs incurred during the nine months ended December 31, 2024 included a $1 million payment related to the settlement of a dispute with a former officer and shareholder of the Company, partially offset by a $300,000 payout from the insurance company for the case, along with other consulting and legal fees. 21. SEGMENT REPORTING An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenue and expenses that relate to transactions with any of the Company’s other components. The operating results of all operating segments are reviewed regularly by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segment and assessing their performance. The Company’s chief operating decision maker is the Chief Executive Officer. Avante Security provides premium security services for residential and commercial customers in Toronto and Muskoka, Ontario through the use of advanced technology and a focus on client service. Avante Security’s business provides a complete offering ranging from system design, sales, installations, and monitoring to services such as alarm response and patrols, personal protection, house staff training, and secure transportation. AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 28 - 21. SEGMENT REPORTING (CONTINUED) NSSG is a risk management and security firm that primarily specializes in international secure transportation, investigation services, and advanced cyber sentiment monitoring, as well as providing sensitive investigations tailored for executive clients on a global scale. NSSG also offers risk management, crisis management, remote medical services, due diligence, and travel risk management services. Operating fr --- om Romania, the company serves clients in Saudi Arabia, Italy, Israel, the United Kingdom, and a worldwide clientele. The Company’s revenue by geographic region for the nine months ending December 31, 2025 was as follows: For the nine months ended December 31, 2025 Region Revenue Canada 20,156,962 $ USA 1,458,687 Europe 1,249,840 Middle East 1,343,036 Africa 1,961,042 Others 554,393 Total 26,723,960 $ For the nine months ended December 31, 2024 Region Revenue Canada 18,623,627 $ USA 2,885,090 Europe 924,231 Middle East 541,388 Africa 850,318 Others 590,565 Total 24,415,219 $ AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 29 - 21. SEGMENT REPORTING (CONTINUED) Segment statements of income (loss) and comprehensive income (loss) for the comparative three months ending December 31, 2025 are included below: Avante Security (ASI+ The Reserve 51%) NSSG Corporate Intersegment eliminations Total Revenue 7,764,872 $ 1,480,563 $ - $ (147,774) $ 9,097,661 $ Cost of sales 4,784,169 661,995 - (147,774) 5,298,390 Gross profit 2,980,703 818,568 - - 3,799,271 Operating expenses Salaries, benefits and commissions 846,654 462,748 746,017 - 2,055,419 Administration 403,329 219,738 418,670 - 1,041,737 Depreciation on capital assets 206,017 35,231 13,606 - 254,854 Amortization on intangible assets 35,539 36 129,397 - 164,973 Merchant transaction fees and bank charges 122,193 4,340 4,309 - 130,842 Share based payments - - 32,712 - 32,712 1,613,733 722,094 1,344,710 - 3,680,537 Income (loss) before other income and expenses 1,366,970 96,474 (1,344,710) - 118,734 Other (income) expenses Miscellaneous income (20,471) - (11,170) - (31,641) Interest (income) expense 141,171 918 (81,143) - 60,947 Foreign exchange (gain) loss (3,409) (6,909) - - (10,318) Total other (income) expenses 117,291 (5,990) (92,313) - 18,988 Income (loss) before reorganization, and acquisition costs 1,249,679 102,465 (1,252,397) - 99,746 Reorganization and acquisition costs - - - - - Income (loss) before income taxes 1,249,679 102,465 (1,252,397) - 99,746 Provision for income taxes Current income tax expense (recovery) - 7,378 - - 7,378 Deferred income tax expense (recovery) - 7,378 - - 7,378 Net income (loss) for the period 1,249,679 $ 95,086 $ (1,252,397) $ - $ 92,368 $ Other comprehensive income (loss): Unrealized gain (loss) on translating financial statements of foreign operations - - 23,562 - 23,562 Total comprehensive income (loss) for the period 1,249,679 $ 95,086 $ (1,228,835) $ - $ 115,930 $ For the three-month period ended December 31, 2025 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 30 - 21. SEGMENT REPORTING (CONTINUED) Segment statements of income (loss) and comprehensive income (loss) for the comparative three months ending December 31, 2024 are included below: Avante Security NSSG Corporate Intersegment eliminations Total Revenues 7,189,373 $ 1,232,339 $ - $ (10,084) $ 8,411,628 $ Cost of sales 4,462,697 517,599 - (10,084) 4,970,212 Gross profit 2,726,676 714,740 - - 3,441,416 Operating expenses Salaries, benefits and commissions 723,352 387,028 378,628 - 1,489,008 Administration 796,811 160,933 512,831 - 1,470,575 Depreciation on capital assets 224,316 30,189 12,241 - 266,746 Amortization on intangible assets - - 161,272 - 161,272 Merchant transaction --- fees and bank charges 149,719 4,297 4,375 - 158,391 Share based payments - - 50,008 - 50,008 1,894,198 582,447 1,119,355 - 3,596,000 Income (loss) before other income and expenses 832,478 132,293 (1,119,355) - (154,584) Other (income) expenses Miscellaneous (income) expense (52,703) - (12,818) - (65,521) Interest (income) expense 178,809 (4,636) (110,417) - 63,756 Foreign exchange (gain) loss 1,040 2,401 - - 3,441 Total other (income) expenses 127,146 (2,235) (123,235) - 1,676 Income (loss) before reorganization, and acquisition costs 705,332 134,528 (996,120) - (156,260) Reorganization and acquisition costs - - - - - Income (loss) before income taxes 705,332 134,528 (996,120) - (156,260) Provision for income taxes Deferred income tax expense (recovery) - (1,508) - - (1,508) - (1,508) - - (1,508) Net income (loss) for the year 705,332 136,036 (996,120) - (154,752) Other comprehensive income (loss) from continuing operations: Unrealized gain (loss) on translating financial statements of foreign operations - 6,768 - 6,768 Total comprehensive income (loss) from continuing operations for the period 705,332 $ 136,036 $ (989,352) $ - $ (147,984) $ For the three-month period ended December 31, 2024 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 31 - 21. SEGMENT REPORTING (CONTINUED) Segment statements of income (loss) and comprehensive income (loss) for the nine months ending December 31, 2025 are included below: Avante Security (ASI+ The Reserve 51%) NSSG Corporate Intersegment eliminations Total Revenue 22,797,491 $ 4,661,154 $ - $ (734,685) $ 26,723,960 $ Cost of sales 14,304,631 2,322,359 - (734,685) 15,892,305 Gross profit 8,492,860 2,338,795 - - 10,831,655 Operating expenses Salaries, benefits and commissions 2,821,247 957,841 1,514,945 - 5,294,033 Administration 2,443,298 826,981 246,400 - 3,516,679 Depreciation on capital assets 610,032 82,291 40,154 - 732,477 Amortization on intangible assets 35,539 36 463,438 - 499,014 Merchant transaction fees and bank charges 343,742 15,013 10,281 - 369,037 Share based payments - - 65,207 - 65,207 6,253,858 1,882,163 2,340,425 - 10,476,446 Income (loss) before other income and expenses 2,239,001 456,632 (2,340,425) - 355,208 Other (income) expenses Miscellaneous income (84,288) - (65,647) - (149,935) Interest (income) expense 430,303 18,165 (232,416) - 216,053 Foreign exchange (gain) loss 45,373 32,184 - - 77,557 Total other (income) expenses 391,388 50,349 (298,063) - 143,675 Income (loss) before reorganization, and acquisition costs 1,847,613 406,283 (2,042,363) - 211,533 Reorganization and acquisition costs - - - - - Income (loss) before income taxes 1,847,613 406,283 (2,042,363) - 211,533 Provision for income taxes Current income tax expense (recovery) - 24,851 - - 24,851 Net income (loss) for the period 1,847,613 $ 381,431 $ (2,042,363) $ - $ 186,682 $ Other comprehensive income (loss): Unrealized gain (loss) on translating financial statements of foreign operations - - (21,423) - (21,423) Total comprehensive income (loss) for the period 1,847,613 $ 381,431 $ (2,063,786) $ - $ 165,259 $ For the nine-month period ended December 31, 2025 AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 32 - 21. SEGMENT REPORTING (CONTINUED) Segment statements of income (loss) and comprehensive --- income (loss) for the nine months ending December 31, 2024 are included below: Segment assets and liabilities as at December 31, 2025 and March 31, 2025 are as follows: Avante Security NSSG Corporate Intersegment eliminations Total Revenues 21,582,802 $ 2,949,135 $ (116,717) $ 24,415,219 $ Cost of sales 13,243,615 1,364,796 (116,717) 14,491,694 Gross profit 8,339,186 1,584,338 - - 9,923,525 Operating expenses Salaries, benefits and commissions 2,068,093 1,112,654 1,398,213 - 4,578,960 Administration 3,144,441 558,886 508,974 - 4,212,301 Depreciation on capital assets 623,731 99,243 35,392 - 758,366 Amortization on intangible assets - - 483,816 - 483,816 Merchant transaction fees and bank charges 400,982 12,865 14,067 - 427,914 Share based payments - - 95,219 - 95,219 6,237,247 1,783,648 2,535,681 - 10,556,576 Income (loss) before other income and expenses 2,101,940 (199,310) (2,535,681) - (633,051) Other (income) expenses Miscellaneous (income) expense (58,230) - (350,964) - (409,194) Interest (income) expense 357,254 14,270 (152,410) - 219,114 Foreign exchange (gain) loss 9,877 19,944 247 - 30,068 Total other (income) expenses 308,901 34,214 (503,127) - (160,012) Income (loss) before reorganization, and acquisition costs 1,793,038 (233,524) (2,032,554) - (473,039) Reorganization and acquisition costs - - 720,451 - 720,451 Income (loss) before income taxes 1,793,038 (233,524) (2,753,004) - (1,193,490) Provision for income taxes Deferred income tax expense (recovery) - (1,508) - - (1,508) - (1,508) - - (1,508) Net income (loss) for the year 1,793,038 $ (232,016) $ (2,753,004) $ - $ (1,191,982) $ Other comprehensive income (loss) from continuing operations: Unrealized gain (loss) on translating financial statements of foreign operations - 2,626 - 2,626 Total comprehensive income (loss) from continuing operations for the period 1,793,038 $ (232,016) $ (2,750,378) $ - $ (1,189,356) $ For the nine-month period ended December 31, 2024 Segment assets are as follow: Avante Security NSSG Corporate Total As at March 31, 2025 17,596,958 $ 1,315,017 $ 4,134,077 $ 23,046,052 $ As at December 31, 2025 19,978,298 $ 1,743,989 $ 2,100,778 $ 23,823,065 $ Segment liabilities are as follow: As at March 31, 2025 5,906,987 $ 1,421,962 $ 2,960,564 $ 10,289,512 $ As at December 31, 2025 5,536,701 $ 2,413,378 $ 2,885,980 $ 10,836,059 $ AVANTE CORP. Notes to Condensed Interim Consolidated Financial Statements For the Three and Nine-Month Periods Ended December 31, 2025 and December 31, 2024 - 33 - 22. CONTINGENCIES From time to time, the Company may become liable for legal, contractual and other claims by various parties, including customers, suppliers, former employees and vendors of businesses acquired by the Company. Depending on the nature or duration of any potential proceedings or claims, the Company may incur substantial costs and expenses, be required to devote significant management time and resources to the matters and suffer adverse judgements or outcomes in respect of these claims, although it is difficult to predict final outcomes with any degree of certainty. Except as disclosed from time to time in the Company’s condensed interim consolidated financial statements, the Company does not believe that any of the claims to which the Company is currently a party will have a material adverse effect on the Company’s profitability or financial condition; however, the Company cannot provide any assurance to that effect.