SEDAR Interim Financial Statements

UNISYNC CORP. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 (UNAUDITED) Unisync Corp. December 31, 2025 Table of contents Notice of no auditor review ........................................................................................................................................... 2 Condensed interim consolidated statements of income (loss) .................................................................................... 3 Condensed interim consolidated statements of comprehensive income (loss) ........................................................... 4 Condensed interim consolidated statements of financial position ............................................................................... 5 Condensed interim consolidated statements of changes in equity .............................................................................. 6 Condensed interim consolidated statements of cash flows .......................................................................................... 7 Condensed interim notes to the consolidated financial statements........................................................................ 8-22 Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Corporation discloses that its auditors have not reviewed these condensed unaudited interim consolidated financial statements as at and for the three months ended December 31, 2025. The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Condensed Interim Consolidated Statements of Income (Loss) (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 3 2025 2024 (Note 20) Revenue $ 20,922,751 $ 21,358,280 Direct expenses (Note 15) 15,109,166 15,803,154 General and administrative expenses (Note 15) 3,123,158 2,965,745 Depreciation and amortization (Notes 5,6,7) 850,963 1,339,910 1,839,464 1,249,471 Interest expense (Notes 9,10) 697,455 947,298 Share-based payment (Note 13) 53,060 - Foreign exchange (gains) losses (Note 20) (149,024) 1,320,780 Net Income (loss) before income taxes 1,237,973 (1,018,607) Income tax expense (recovery) (Note 14) 358,139 (281,393) Net Income (loss) $ 879,834 $ (737,214) Attributable to Unisync Corp. shareholders 879,512 (744,374) Minority partner 322 7,160 $ 879,834 $ (737,214) Net income (loss) per share attributable to Unisync Corp. shareholders Basic $ 0.05 $ (0.04) Diluted $ 0.05 $ (0.04) Weighted average number of shares - basic (Note 13 (d)) 19,012,229 19,012,229 Diluted weighted average number of shares outstanding - diluted (Note 13 (d)) 19,012,229 19,012,229 Three Months Ended December 31 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Condensed Interim Consolidated Statements of Comprehensive Income (loss) (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 4 2025 2024 Net income (loss) for the year $ 879,834 $ (737,214) Other comprehensive income (loss), net of taxs: items that maybe reclassfied to net income or loss Foreign currency translation differences for foreign operatons (31,327) 56,258 Total Income (loss) Comprehensive loss for the year $ 848,507 $ (680,956) Attributable to U --- nisync Corp. shareholders 848,185 (688,116) Minority partner 322 7,160 Total Comprehensive income (loss) for the year $ 848,507 $ (680,956) Three Months Ended December 31 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 5 December 31, 2025 September 30, 2025 ASSETS Current Cash $ 1,286,362 $ 861,366 Trade and other receivables 10,500,502 9,892,244 Inventory (Note 4) 40,539,498 40,053,651 Prepaid expenses and deposits 2,655,603 2,125,367 54,981,965 52,932,628 Property, plant and equipment (Note 5) 6,670,056 6,808,619 Right of use assets (Note 6) 9,553,490 10,080,763 Deferred tax asset (Note 14) 6,622,801 6,881,755 Intangible assets (Note 7) 1,183,026 1,393,522 Goodwill (Note 8) 6,384,797 6,384,797 TOTAL ASSETS $ 85,396,135 $ 84,482,084 LIABILITIES Current Operating loan (Note 9) $ 19,327,463 $ 18,394,549 Trade payables and accrued liabilities 7,491,813 7,748,047 Deferred revenue 13,166,048 13,245,216 Mortgage loans (Note 10) 445,599 445,599 Current portion of long-term lease liabilities (Note 11) 1,966,369 1,912,780 Due to minority partner (Note 12) 1,249,500 1,249,500 43,646,792 42,995,691 Mortgage loans (Note 10) 15,416,850 15,523,527 Long-term lease liabilities (Note 11) 10,872,570 11,404,510 TOTAL LIABILITIES $ 69,936,212 $ 69,923,728 EQUITY Share capital (Note 13) 30,447,488 30,447,488 Share-based payments reserve 2,303,232 2,250,172 Deficit (17,193,555) (18,041,740) Equity attributable to Unisync Corp. shareholders 15,557,165 14,655,920 Deficit attributable to minority partner (97,242) (97,564) TOTAL EQUITY $ 15,459,923 $ 14,558,356 TOTAL LIABILITIES & EQUITY $ 85,396,135 $ 84,482,084 Commitments and contingencies (Note 16) Approved by the Board: Signed "Renting (Tim) Gu" Signed "Ron Miller" Renting (Tim) Gu, Ron Miller, Executive Chairman & Director Director The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Condensed Interim Consolidated Statements of Changes in Equity (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 6 Share ‑ based Number of Share Payments Minority Total Shares Capital ($) Reserve ($) Deficit ($) Total ($) Interest ($) Equity ($) Balance, September 30, 2024 19,012,229 30,447,488 2,250,172 (18,265,564) 14,432,096 (99,526) 14,332,570 Distribution to minority partner - - - - - (4,621) (4,621) Net income (loss) for the year - - - (744,374) (744,374) 7,160 (737,214) Other comprehensive income - - - 56,258 56,258 - 56,258 Balance, December 31, 2024 19,012,229 30,447,488 2,250,172 (18,953,680) 13,743,980 (96,987) 13,646,993 Balance, September 30, 2025 19,012,229 30,447,488 2,250,172 (18,041,740) 14,655,920 (97,564) 14,558,356 Share-based payment - - 53,060 - 53,060 - 53,060 Net income (loss) for the year - - - 879,512 879,512 322 879,834 Other comprehensive loss - - - (31,327) (31,327) - (31,327) Balance, December 31, 2025 19,012,229 30,447,488 2,303,232 (17,193,555) 15,557,165 (97,242) 15,459,923 Equity attributable to equity holders of the Company The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian dolla --- rs) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 7 2025 2024 CASH (USED IN) PROVIDED BY: OPERATING ACTIVITIES Net income (loss) for the year $ 879,834 $ (737,215) Items not affecting cash: Interest expense (Notes 9,10) 697,455 947,298 Income tax expense (recovery) (Note 14) 358,139 (281,393) Share-based payment (Note 13) 53,060 - Depreciation and amortization (Notes 5,6,7) 850,963 1,339,910 2,839,451 1,268,600 Changes in non-cash working capital items: Trade and other receivables (611,708) 849,180 Inventory (484,634) 356,865 Prepaid expenses and deposits (530,053) (108,523) Trade payables and accrued liabilities (345,087) (1,661,748) Deferred revenue (78,386) (636,239) 789,583 68,135 Income taxes paid (9,486) - Net cash from operating activities $ 780,097 $ 68,135 FINANCING ACTIVITIES Increase in operating loan (Note 9) 932,914 576,054 Mortgage loans repayments (Note 10) (109,376) (104,202) Repayment of lease liabilities (Note 11) (637,857) (620,203) Interest paid (507,239) (732,194) Distributions to minority partner (Note 19) - (4,621) Net cash used in financing activities $ (321,558) $ (885,166) Effects of foreign exchange rates on cash (33,543) 686,548 INCREASE IN CASH 424,996 (130,483) CASH, BEGINNING OF YEAR 861,366 791,019 CASH, END OF YEAR $ 1,286,362 $ 660,536 Three Months Ended December 31 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 8 1. Nature of business Unisync Corp. (the “Company”) is incorporated under the laws of British Columbia. Its head office, principal address, and registered and records office are located at Suite 1328, 885 West Georgia Street, Vancouver, British Columbia, Canada. Unisync Corp.’s voting Common Shares are listed and posted for trading on the TSX Exchange under the symbol "UNI" and on the OTC under the symbol “USYNF”. The Company operates in two main business segments. The Peerless segment includes the Company’s 90% interest in the business of Winnipeg-based Peerless Garments LP (“Peerless”) and 100% of Peerless Garments Inc. (“GP”), the general partner. Peerless manufactures harsh weather outerwear for the Canadian military and other government agencies. The Unisync Group Limited (“UGL”) segment comprises the operations of Unisync Group Limited of Mississauga, Ontario, and Unisync (Nevada) LLC of Henderson, Nevada. During the year ended September 30, 2019, Carleton Uniforms Inc. (“Carleton”) of Carleton Place, Ontario and Omega Uniforms Systems Ltd. (“Omega”) of Vancouver, British Columbia were each dissolved and the assets were transferred to and the liabilities were assumed by Unisync Group Limited. During the year ended September 30, 2023, Utility Garments Inc. (“Utility”) of Saint-Laurent, Quebec was amalgamated with Unisync Group Limited to continue as Unisync Group Limited. This segment is involved in the design, manufacture and distribution of direct sale uniforms, workwear, image apparel and related solutions. The UGL segment operates distribution centres in Guelph, Ontario, Vancouver, British Columbia and Henderson, Nevada. 2. Basis of presentation and significant accounting policies These condensed interim consolidated financial statements have been prepared in accordance with IFRS® Accounting Standards and Internati --- onal Accounting Standard (“IAS”) 34, “Interim Financial Reporting”. These condensed interim consolidated financial statements do not include all of the information required for full annual financial statements but have been prepared following the same accounting policies and methods of computation as the consolidated financial statements of the Company for the year ended September 30, 2025. The disclosures provided herein are incremental to those included with the annual consolidated financial statements and certain disclosures, which are normally required to be included in the notes to the annual consolidated financial statements, have been condensed or omitted. These condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s annual filings for the year ended September 30, 2025, as filed on SEDAR+ at www.sedarplus.ca. These condensed interim consolidated financial statements were approved by the Company’s Board of Directors and authorized for issue on February 10, 2026. Accounting standards issued but not yet applied The following amendments to standards have been issued IASB and are applicable to the Company for its annual periods beginning on and after October 1, 2025: IFRS 18 - 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. The new standard aims to improve comparability of the financial performance of similar entities. The standard primarily introduces new requirements for presentation within the statement of profit or loss, requiring entities to classify income and expenses in separate categories including operating, investing and financing activities. The standard also requires management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. The standard Is effective for annual reporting periods beginning on or after January 1, 2027 with retrospective application required. The Company is currently assessing the impact of the new standard. The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 9 3. Critical accounting estimates and judgments The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The significant estimates, assumptions and judgments that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (a) Trade and other receivables The Company maintains a loss provision for doubtful accounts to reflect an impairment risk for trade and other accounts receivable based on an expected cred --- it loss model which factors in changes in credit quality since the initial recognition of trade and other accounts receivable based on customer risk types (insured and non-insured receivables, government receivables). Expected credit losses are also provided for based on collection history and specific risks identified on a customer-by-customer basis. (b) Inventory The Company determines the carrying value of work in progress inventory (“WIP”) and estimated net realizable value at the end of each reporting period. Management allocates costs, such as for materials, labour attributable to goods in production and an allocation of overhead, to WIP based on management’s estimate of the percentage completion of the goods, and the nature of the costs for producing that particular good. Estimates are required in relation to forecasted sales volumes and finished good inventory balances. In situations where excess or slow moving inventory balances are identified, the Company assesses its ability to recover customer payment for such inventory and estimates of net realizable values for the excess or slow moving volumes are made. (c) Share-based payment The Company provides incentives via share-based payment entitlements (Note 13). The fair value of entitlements is determined in accordance with the accounting policy in Note 2(n) of the audited consolidated financial statements for the year ended September 30, 2024. If certain assumptions used in the fair value calculation were to change, there would be an impact on the share-based payment expense recognized in the current period. (d) Income taxes The Company is subject to income taxes in Canada and the United States. Management has estimated the income tax provision and deferred income tax balances in accordance with its interpretation of the various income tax laws and regulations and has estimated the recoverability of deferred tax balances. It is possible, due to complexity inherent in estimating income taxes that the tax provision and deferred income tax balances could change. Deferred tax assets, including those arising from tax loss carry- forwards, require management to assess the likelihood that the Company will generate sufficient taxable earnings in future periods in order to utilize tax losses recognized as deferred tax assets. Assumptions about the generation of future taxable profits depend on managements’ estimates of future cash flows. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize or recognize net deferred tax assets, if any, at the reporting date could be impacted. The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 10 3. Critical accounting estimates and judgments (continued) (e) Estimated useful lives Management estimates the useful lives of property, plant and equipment, and intangible assets based on the period during which the assets are available for use. The amounts and timing of depreciation and amortization for these amounts are affected by the useful lives. The estimates are reviewed annually and are updated for changes in the expected --- useful life. (f) Impairment of long lived assets The Company considers both internal and external sources of information in assessing its tangible and intangible assets for indicators of impairment when events or circumstances indicate such. The Company determines the recoverable amount, which is the greater of its value in use and its fair value less costs to sell, using discounted cash flows expected to be derived from the tangible intangible asset, and the appropriate discount rate. (g) Impairment of goodwill The Company performs an assessment of its goodwill for impairment on an annual basis. The Company determines the recoverable amount, which is the greater of its value-in-use and its fair value less costs of disposal, using discounted cash flows expected to be derived from the Company’s operations, and the appropriate discount rate. The projected cash flows are significantly affected by changes in assumptions about expected revenues from contracts, estimated costs of production, and the discount rate. (h) Allocation of purchase consideration Business combinations require judgment and estimates to be made at the date of acquisition in relation to determining the fair value of the asset acquired and liabilities assumed, and the consideration paid. The information necessary to measure the fair values as at the acquisition date of assets acquired and liabilities assumed requires management to make certain judgments and estimates about future events, including but not limited to estimates of future earnings, future operating costs and capital expenditures, and discount rates. Changes to the provisional measurements of assets and liabilities acquired may be retrospectively adjusted when new information is obtained until the final measurements are determined. 4. Inventory Cost of inventories recognized as an expense during the three months ended December 31, 2025, amounted to $11,388,729 (December 31, 2024 - $12,919,123). The carrying amount of inventory recorded at net realizable value at December 31, 2025, was $nil (September 30 2025 – $nil), with the remaining inventory recorded at cost. December 31, 2025 September 30, 2025 Raw Materials $ 3,848,150 $ 3,158,044 Work in Progress 1,699,609 909,450 Finished goods 32,353,869 34,379,644 Raw materials and finished goods in-transit 2,637,870 1,606,513 $ 40,539,498 $ 40,053,651 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 11 5. Property, plant and equipment Warehouse and Office Manufacturing Computer Furnishings & Leasehold Cost Land Buildings Equipment Equipment Equipment Vehicles Improvements Total Balance, September 30, 2024 $ 2,622,730 $ 5,050,357 $ 2,022,050 $ 1,013,006 $ 441,959 $ 87,625 $ 2,840,138 $ 14,077,865 Foreign currency translation adjustment - - (6,995) 0 479 1,388 0 - 5,767 639 Balance, September 30, 2025 $ 2,622,730 $ 5,050,357 $ 2,015,055 $ 1,013,485 $ 443,347 $ 87,625 $ 2,845,905 $ 14,078,504 Foreign currency translation adjustment - - (1,947) (244) (707) - (2,938) (5,836) Balance, December 31, 2025 $ 2,622,730 $ 5,050,357 $ 2,013,108 $ 1,013,241 $ 442,640 $ 87,625 $ 2,842,967 $ 14,072,668 Accumulated Depreciation Balance, September 30, 2024 $ - $ 1,586,708 $ 1,527,302 $ 909,800 $ 350,024 $ 87,111 $ 2,054,857 $ 6,515,802 Deprecia --- tion - 175,911 73,830 13,159 27,320 95 454,529 744,844 Foreign currency translation adjustment - - 2,795 301 1,044 - 5,099 9,239 Balance, September 30, 2025 $ - $ 1,762,619 $ 1,603,927 $ 923,260 $ 378,388 $ 87,206 $ 2,514,485 $ 7,269,885 Depreciation - 43,680 15,879 558 5,509 17 72,378 138,021 Foreign currency translation adjustment - - (1,565) (210) (579) - (2,940) (5,294) Balance, December 31, 2025 $ - $ 1,806,299 $ 1,618,241 $ 923,608 $ 383,318 $ 87,223 $ 2,583,923 $ 7,402,612 Carrying Value At September 30, 2025 $ 2,622,730 $ 3,287,738 $ 411,128 $ 90,225 $ 64,959 $ 419 $ 331,420 $ 6,808,619 At December 31, 2025 $ 2,622,730 $ 3,244,058 $ 394,867 $ 89,633 $ 59,322 $ 402 $ 259,044 $ 6,670,056 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 12 6. Right of use assets The Company’s right of use leases are for its distribution, sales, and administrative facilities. 7. Intangible assets Cost Balance, September 30, 2024 $ 19,565,955 Foreign currency translation adjustment 120,999 Balance, September 30, 2025 $ 19,686,954 Foreign currency translation adjustment (61,646) Balance, December 31, 2025 $ 19,625,308 Accumulated Depreciation Balance, September 30, 2024 $ 7,543,582 Depreciation 2,011,137 Foreign currency translation adjustment 51,472 Balance, September 30, 2025 $ 9,606,191 Depreciation 502,446 Foreign currency translation adjustment (36,819) Balance, December 31, 2025 $ 10,071,818 Net Carrying Value, September 30, 2025 $ 10,080,763 Net Carrying Value, December 31, 2025 $ 9,553,490 Computer Customer Standards Cost Software relationships Certfication Total Balance, September 30, 2024 $ 7,425,256 $ 7,195,285 $ 74,143 $ 14,694,684 Foreign currency translation adjustment 3,631 - - 3,631 Balance, September 30, 2025 $ 7,428,887 $ 7,195,285 $ 74,143 $ 14,698,315 Foreign currency translation adjustment (1,850) - - (1,850) Balance, December 31, 2025 $ 7,427,037 $ 7,195,285 $ 74,143 $ 14,696,465 Accumulated Amortization Balance, September 30, 2024 $ 6,706,810 $ 4,965,821 $ 68,099 $ 11,740,730 Amortization 719,224 839,784 2,202 1,561,210 Foreign currency translation adjustment 2,853 - - 2,853 Balance, September 30, 2025 $ 7,428,887 $ 5,805,605 $ 70,301 $ 13,304,793 Amortization - 209,946 550 210,496 Foreign currency translation adjustment (1,850) - - (1,850) Balance, December 31, 2025 $ 7,427,037 $ 6,015,551 $ 70,851 $ 13,513,439 Carrying Value At September 30, 2025 $ - $ 1,389,680 $ 3,842 $ 1,393,522 At December 31, 2025 $ - $ 1,179,734 $ 3,292 $ 1,183,026 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 13 8. Goodwill Goodwill arose on the acquisitions of Peerless in 2010, the acquisitions of Carleton and Omega in 2015 and the acquisition of Utility in 2018. For impairment testing purposes, the goodwill is allocated to the cash-generating unit (“CGU”), with Carleton, Omega and Utility being allocated to Unisync Group. There has been no change to the goodwill since each acquisition. 9. Operating loan The Company has established two operating loan facilities totalling $24 --- ,000,000 with a Canadian chartered bank and an operating loan facility of US$5,000,000 to finance its working capital requirements. Borrowings under the $24,000,000 loan facility is subject to normal margining requirements that limit borrowings to acceptable accounts receivable and inventory. The USD 5,000,000 facility is secured by a letter of guarantee from Export Development Canada. As at December 31, 2025, combined drawings under the operating loan facilities were $21,612,529 (September 30, 2025 - $18,394,549). The borrowings under the operating loan facilities are available by way of CORRA or SOFR advances. Advances under the operating loan facilities bear interest at the prevailing CORRA or SOFR rate plus 2.50%. During the three months ended December 31, 2025, the Company incurred interest expense of $295,113 (December 31, 2024 - $510,509) on borrowings under its operating loan facilities. In addition, the Company has a $2,000,000 letter of guarantee facility (see Note 16(a)), an unutilized foreign exchange loan facility to purchase foreign exchange contracts up to an aggregate of USD18,000,000, a $200,000 credit card facility and an unutilized $19,000,000 interest rate swap facility. Security for the loan facilities include a second mortgage on the Company’s land and buildings, general security agreements, a specific pledge of certain assets and inter- company guarantees. Under the terms of its operating loan agreement, the Company must satisfy certain restrictive covenants as to minimum financial ratios as follows: (i) The ratio of debt to tangible assets must not be greater than 3:1 (ii) The ratio of current assets to current liabilities must be greater than 1.25:1 (iii) The debt service coverage ratio of cash flow from operations to debt obligations must be greater than 1.25:1 for the trailing twelve months ending December 31, 2025 and thereafter. As at December 31, 2025, the Company was in compliance with the covenants of its operating loan facilities. December 31, 2025 September 30, 2025 Cost Peerless $ 2,586,000 $ 2,586,000 Unisync Group 3,798,797 3,798,797 $ 6,384,797 $ 6,384,797 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 14 10. Mortgage loan facilities Changes to the Company’s mortgage loans for the three months ended December 31 2025, are as follows: a) On July 26, 2021, the Company established two mortgage loan facilities with the Business Development Bank of Canada (“BDC”) in amounts of $3,880,000 (the “Peerless” mortgage loan) and $6,120,000 (the “Utility” mortgage loan) secured by first mortgages over the land and buildings, by general security agreements and inter-company guarantees. Advances under the Peerless and Utility mortgage loans bear interest at a fixed rate of 4.10% until May 1, 2026, following which the interest rate will be adjusted to the BDC’s fixed rate then in effect. The Peerless mortgage loan is repayable in blended monthly instalments of principal and interest of $23,717 that began on November 1, 2021, over a 240 month term. The Utility mortgage loan is repayable in blended monthly instalments of principal and interest of $32,642 that began on November 1, 2021, over a 300 month term. Following an updated appraisal of the Company’s land and buildings in S --- aint-Laurent, Quebec, the BDC increased the Utility mortgage loan by $7,450,000 on August 18, 2023. This additional Utility financing is repayable in blended monthly instalments of principal and interest of $51,708 commencing on August 1, 2024, for a term of 25 years at a fixed interest rate of 6.7% for the first five years, following which the interest rate will be adjusted to the BDC’s fixed rate then in effect. Proceeds from this additional Utility financing were used to repay shareholder advances and to reduce operating loan advances. During the three months ended December 31, 2025, the Company recorded interest expense of $214,825 (December 31, 2024 - $220,000) on borrowings under its BDC mortgage loans. Under the terms of its mortgage loan agreement, the Company must satisfy an annual restrictive covenant as to minimum debt service coverage ratio of cash flow from operations to debt obligations must be greater than 1:10:1. The Company is subject to this annual covenant on the mortgage loan facilities and was in compliance as at September 30, 2025. Balance, September 30, 2024 $ 16,382,810 Repayment of mortgage loans (424,489) Amortization of mortgage loan financing fees 10,805 Balance, September 30, 2025 15,969,126 Repayment of mortgage loans (109,376) Amortization of mortgage loan financing fees 2,699 Balance, December 31, 2025 $ 15,862,449 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 15 11. Long-term lease liabilities During the three months ended December 31, 2025, the Company accreted interest expense of $187,517 (December 31, 2024 - $212,403) on its long-term lease liabilities. 12. Due to minority partner As part of the acquisition of Peerless in 2010, the Company and the minority partner entered into a put/call agreement to purchase the 10% interest in Peerless held by the minority partner at a fixed price of $1,500,000. The notice period is a minimum duration of one year plus one day for a triggering event under the triggering events of the put/call agreement. On April 9, 2020, the Company received notice from the minority partner of Peerless that the minority partner was exercising its put option to receive payment of $1,500,000 from the Company for the minority partner’s interest in Peerless by no later than April 10, 2021. On September 30, 2021, the minority partner agreed to defer payment of the put option until October 15, 2022. During the year ended September 30, 2024, the Company paid $250,500 under the put option which reduced the minority partners interest to 8.33%. The Company is working in co-operation with the minority partner to effect the balance of payment under the put option as it is financially viable to do so. Balance September 30, 2024 $ 14,945,079 Repayment of lease liabilities (2,514,124) Interest accretion 813,250 Foreign currency translation adjustment 73,085 Balance, September 30, 2025 $ 13,317,290 Repayment of lease liabilities (637,857) Interest accretion 187,517 Foreign currency translation adjustment (28,011) Balance, December 31, 2025 $ 12,838,939 Less: current portion of long-term lease liabilities 1,966,369 Balance, December 31, 2025 $ 10,872,570 The accompanying notes form an integral part of these interim condensed consolidated financial statements. --- Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 16 13. Capital stock (a) Authorized Unlimited number of the following classes of shares: • Common shares without par value. • Class A preferred shares issuable in series with no voting rights. (b) Shares issued and fully paid (c) Stock options The stock option plan provides that, subject to the requirements of the TSX Exchange (the “Exchange”), the aggregate number of common shares reserved for issuance under the stock option plan may not exceed 10% of the issued and outstanding common shares of the Company. The following table summarizes stock options outstanding: Based on the vesting schedule, a stock option compensation expense of $53,060 was recognized for the three months ended December 31, 2025 (December 31, 2024 - $nil). Option pricing models require the use of highly subjective estimates and assumptions, changes in which can materially affect the value estimates. Number of Common Shares Amount Balance, September 30, 2025 19,012,229 $ 30,447,488 Balance, December 31, 2025 19,012,229 $ 30,447,488 Number of stock options oustanding Weighted Average Exercise Price Balance, September 30, 2024 1,315,000 $ 2.09 Balance, December 31, 2024 1,315,000 $ 2.09 Balance, September 30, 2025 1,855,000 $ 1.80 Forefeited (480,000) 1.75 Balance, December 31, 2025 1,375,000 $ 1.81 Range of exercise prices Number of oustanding options Weighted Average remaining life Number of exercisable options $2.90 300,000 1.20 $ 2.90 240,000 $ 2.90 $2.00 325,000 2.73 2.00 158,333 2.00 $1.30 750,000 4.73 1.30 - - $ 1.30 to $2.90 1,375,000 3.49 $ 1.81 398,333 $ 2.54 Weighted Average Exercise Price Weighted Average Exercise Price of exercisable options The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 17 13. Capital stock (continued) (d) Earnings per share The following table sets out the computation of basic and diluted net loss per common share: 14. Income taxes Income tax expense is recognized based on management’s estimate of the weighted average annual income tax rate (see below) applicable to consolidated profits of the Company are as follows: The tax on the Company’s net income (loss) before tax differs from the amount that would arise using the weighted average tax rate applicable to consolidated profits of the Company as follows: 2025 2024 Net Income (loss) attributable to Unisync Corp. shareholders $ 879,512 $ (744,374) Weighted average common share outstanding - basic 19,012,229 19,012,229 Effect of dilutive securities - - Weighted average common share outstanding - diluted 19,012,229 19,012,229 Net Income (loss) per common share attributable to Unisync Corp. shareholders Basic $ 0.05 $ (0.04) Diluted $ 0.05 $ (0.04) Three Months ended December 31 2025 2024 Income tax expense $ 99,185 $ 65,951 Deferred tax expense (recovery) 258,954 (347,344) Income tax expense (recovery) $ 358,139 $ (281,393) Three Months Ended December 31 2025 2024 Net income (loss) before income taxes $ 1,237,973 $ (1,018,607) Tax rate 26.5% 26.5% 328,063 (269,931) Taxes attributable to minority partner 241 (1,802) Tax audit and True-ups 1,722 4,423 Permanent differenc --- es 28,113 (14,083) Income tax expense (recovery) $ 358,139 $ (281,393) Three Months Ended December 31 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 18 14. Income taxes (continued) The Company’s deferred tax asset (liability) consists of the following: The Company has non-capital losses of approximately $16,304,063 (September 30, 2025 - $17,264,739) that can be applied against future years’ taxable income for Canadian income tax purposes. These losses were recognized as a deferred tax asset in the amount of $4,357,093 (September 30, 2025 - $4,612,115) that is included in the deferred tax asset balance at December 31, 2025. The Company has recognized these losses as a deferred income tax asset as it expects to utilize these losses against income from the sale of uniform products for which the Company held contracts at December 31, 2025. December 31 September 30 2025 2025 Deferred tax assets Non-capital losses 4,357,093 4,612,115 Lease liabilities 3,341,361 3,478,655 Interest Carryforward 1,176,067 1,205,352 Intangible assets 468,144 420,597 Other items 226,336 274,542 $ 9,569,001 $ 9,991,261 Deferred tax liabilities Right of Use assets (2,475,709) (2,610,066) Property, plant and equipment (470,491) (499,440) (2,946,200) (3,109,506) $ 6,622,801 $ 6,881,755 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 19 15. Expenses by nature 16. Commitments and contingencies (a) At December 31, 2025, the Company had $985,500 (September 30, 2025 - $985,500) in letters of credit outstanding. 17. Economic dependence During the three-month period ended December 31, 2025, revenue from the Canadian military and other Canadian governmental agencies accounted for 6% of total revenue (December 31, 2024 - 9%), and revenue from two airline industry customers accounted for 39% of total revenue (December 31, 2024 - 35%). 2025 2024 Direct expenses: Materials $ 10,915,072 $ 11,690,798 Wages and benefits 2,192,131 2,312,773 Delivery 1,128,522 1,151,914 Rent, utilities and other property costs 558,995 454,583 Subcontract fees 270,079 163,882 Other 44,367 29,204 $ 15,109,166 $ 15,803,154 General and administrative expenses: Wages and benefits $ 1,667,367 $ 1,544,493 Data services, system maintenance, telecommunications and software licenses 382,393 398,861 Legal, bank, insurance and professional services 630,231 586,672 Rent, utilities and other property costs 164,897 166,240 Advertising, marketing and other promotion costs 33,906 78,788 Other 244,364 190,691 $ 3,123,158 $ 2,965,745 Three Months Ended December 31 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 20 18. Segmented information The Company has two reportable operating segments, Peerless and UGL. While both segments are involved in the distribution and manufacture of garments and uniforms and --- the sale of product to government agencies and corporate entities in Canada, Peerless is primarily engaged in manufacturing products for government agencies while UGL is primarily involved in distributing products to corporate entities. The segments are separately managed for reporting purposes. Performance is measured based on segment income before income taxes, as included in the internal management reports reviewed by the Company’s chief operating decision maker. Management has determined that this measure is the most relevant in evaluating segment results. Three months ended December 31, 2025 Peerless UGL Eliminations adjustments and corporate expenses Total Revenue $ 2,286,009 $ 18,748,272 $ (111,530) $ 20,922,751 Direct expenses 1,904,898 13,315,798 (111,530) 15,109,166 General and administrative expenses 357,025 2,636,946 129,187 3,123,158 Depreciation and amortization 7,167 735,105 108,691 850,963 $ 16,919 $ 2,060,423 $ (237,878) $ 1,839,464 Share-based payments - - 53,060 53,060 Interest expense 13,053 684,356 46 697,455 Foreign exchange (gains) losses (149,024) (149,024) Net income (loss) before income taxes $ 3,866 $ 1,525,091 $ (290,984) $ 1,237,973 Total assets $ 9,301,129 $ 61,697,373 $ 14,397,633 $ 85,396,135 Property, plant and equipment 743,131 5,926,925 - 6,670,056 Right of use assets - 9,553,490 - 9,553,490 Intangible assets - 1,183,026 - 1,183,026 Goodwill 2,586,000 3,798,797 - 6,384,797 Liabilities, excluding due to minority partner 5,168,407 63,518,305 - 68,686,712 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 21 18. Segmented information (continued) The Company operates in two geographic segments as follows: Three months ended December 31, 2024 Peerless UGL Eliminations adjustments and corporate expenses Total Revenue $ 2,423,723 $ 19,131,522 $ (196,965) $ 21,358,280 Direct expenses 2,005,565 13,994,554 (196,965) 15,803,154 General and administrative expenses 335,584 2,468,033 162,128 2,965,745 Depreciation and amortization 8,066 1,222,848 108,996 1,339,910 $ 74,508 $ 1,446,087 $ (271,124) $ 1,249,471 Interest expense 21,533 925,765 - 947,298 Foreign exchange (gains) losses (32,884) 1,353,664 - 1,320,780 Net income (loss) before income taxes $ 85,859 $ (833,342) $ (271,124) $ (1,018,607) Total assets $ 8,746,531 $ 68,905,443 $ 15,061,786 $ 92,713,760 Property, plant and equipment 774,497 6,558,286 - 7,332,783 Right of use assets - 11,657,914 - 11,657,914 Intangible assets - 2,338,950 - 2,338,950 Goodwill 2,586,000 3,798,797 - 6,384,797 Liabilities, excluding due to minority partner 4,574,382 73,242,885 - 77,817,267 2025 2024 Revenue Canada $ 15,518,363 $ 16,740,463 United States of America 5,404,388 4,617,817 $ 20,922,751 $ 21,358,280 Total assets Canada 72,488,418 78,572,853 United States of America 12,907,717 14,140,907 $ 85,396,135 $ 92,713,760 Three Months ended December 31 The accompanying notes form an integral part of these interim condensed consolidated financial statements. Unisync Corp. Notes to Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 2026 Page 22 19. Related party transactions The Company paid rent of $7,317 (2024 - $7,317) for the Company’s head office --- location to a company having two members of the Company’s Board of Directors in common. For the three months ended December 31, 2025, the Company’s minority partner in the Peerless segment, a member of management, received an income allocation of $322 (2024 - $7,160) and a distribution of $nil (2024 - $4,621) specifically related to his minority interest. Related party transactions are recorded at the exchange amounts, which are the amounts agreed upon by the related parties. 20. Comparative Figures Certain comparative figures have been reclassified to align with the current year’s presentation. The Company has reclassified $1,320,780 of foreign exchange losses for the three months ended December 31, 2024 as a separate line in the consolidated statement of Income (loss) from direct expenses. This change aims to present unrealized foreign exchange gains (losses) from monetary assets and liabilities as a distinct expense category for financial statement users.