SEDAR Interim Financial Statements

[
  {
    "companyName": "RECO INTERNATIONAL GROUP INC.",
    "reportingPeriodEnd": "2025-12-31",
    "reportStatus": "Unaudited",
    "auditorName": "Kenway Mack Slusarchuk Stewart LLP",
    "auditorKeyMatters": [],
    "balanceSheet": {
      "cash": 16582,
      "accountsReceivable": 157795,
      "prepaidExpensesAndOther": 21671,
      "contractAssets": 98846,
      "totalCurrentAssets": 294894,
      "deposits": 32414,
      "equipment": 40084,
      "rightOfUseAsset": 226504,
      "totalAssets": 593896,
      "bankIndebtedness": 219916,
      "accountsPayableAndAccruedLiabilities": 1459116,
      "amountsPayableToRelatedParties": 1091750,
      "contractLiabilities": 371540,
      "currentPortionOfLeaseLiability": 173226,
      "totalCurrentLiabilities": 3315548,
      "leaseLiability": 61871,
      "totalLiabilities": 3377419,
      "shareCapital": 2272335,
      "shareBasedCompensationReserve": 423162,
      "deficit": -5479020,
      "totalShareholdersDeficiency": -2783523,
      "cashPerShare": 0.0003,
      "workingCapitalPerShare": -0.0609
    },
    "incomeStatement": {
      "revenue": 534109,
      "subcontracts": 98093,
      "generalAndAdministrative": 100608,
      "materialsAndSupplies": 293346,
      "salariesAndBenefits": 134736,
      "depreciation": 44699,
      "financeCosts": 10220,
      "badDebtRecoveryExpense": null,
      "totalExpenses": 681702,
      "netLossBeforeOtherIncomeExpense": -147593,
      "recoveryImpairmentOfAmountsDueFromRelatedParties": 49260,
      "otherIncome": 642,
      "totalOtherIncomeExpense": 49902,
      "netLossAndComprehensiveLoss": -97691,
      "lossPerCommonShareBasicAndDiluted": 0,
      "weightedAverageNumberOfCommonSharesOutstandingBasicAndDiluted": 49635635
    },
    "cashFlowStatement": {
      "netLoss": -97691,
      "depreciation": 44699,
      "recoveryImpairmentOfAmountsDueFromRelatedParties": -49260,
      "badDebtExpenseRecovery": null,
      "interestOnLeaseLiability": 5530,
      "netChangeInNonCashWorkingCapitalBalances": 139484,
      "cashProvidedByUsedInOperatingActivities": 42762,
      "advancesToRelatedParty": -740,
      "repaymentFromRelatedParty": 50000,
      "cashProvidedByUsedInInvestingActivities": 49260,
      "advanceFromRelatedParty": 35000,
      "repaymentsToRelatedParty": -85000,
      "repaymentOfLeaseLiability": -39938,
      "interestPaidOnLeaseLiability": -5530,
      "cashProvidedByUsedInFinancingActivities": -95468,
      "decreaseIncreaseInCash": -3446,
      "bankIndebtednessCashBeginningOfPeriod": -199888,
      "bankIndebtednessCashEndOfPeriod": -203334,
      "cashCompositionCash": 16582,
      "cashCompositionBankIndebtedness": -219916
    },
    "investmentsAndOtherAssets": [
      {
        "type": "Deposits",
        "description": "Deposits",
        "ownershipPercentage": null,
        "value": 32414,
        "notes": "Non-current asset"
      }
    ],
    "shareStructure": {
      "authorizedShares": "Unlimited common voting shares; Unlimited redeemable, retractable, non-voting preferred shares",
      "issuedShares": 49635635,
      "classesOfShares": [
        "Common voting shares",
        "Redeemable, retractable, non-voting preferred shares"
      ],
      "warrants": [],
      "options": [
        {
          "number": 5300000,
          "exercisePrice": 0.05,
          "expiryDate": "2027-07-03"
        }
      ],
      "rightsConvertibleInstruments": null
    },
    "managementCompensation": {
      "currency": "CAD",
      "periods": {
        "threeMonthsEndedDecember312025": {
          "consultingFees": -100,
          "managementFees": 71650,
          "total": 71550
        },
        "threeMonthsEndedDecember312024": {
          "consultingFees": 1463,
          "managementFees": 71650,
          "total": 73113
        }
      },
      "namedIndividuals": [
        {
          "name": "Hugh Zhen",
          "title": "President and Chief Executive Officer",
          "period": "Three months ended December 31, 2025",
          "components": {
            "salary": null,
            "bonus": null,
            "total": null
          }
        },
        {
          "name": "William Harper",
          "title": "Interim Chief Financial Officer",
          "period": "Three months ended December 31, 2025",
          "components": {
            "salary": null,
            "bonus": null,
            "total": null
          }
        }
      ],
      "otherRelatedPartyTransactions": [
        {
          "counterparty": "Company with common management and directors",
          "description": "Advances to related party",
          "amount": 740,
          "period": "Three months ended December 31, 2025"
        },
        {
          "counterparty": "Company with common management and directors",
          "description": "Repayment from related party",
          "amount": 50000,
          "period": "Three months ended December 31, 2025"
        },
        {
          "counterparty": "Chief Executive Officer (CEO)",
          "description": "Advances from CEO",
          "amount": 35000,
          "period": "Three months ended December 31, 2025"
        },
        {
          "counterparty": "CEO and company controlled by CEO",
          "description": "Repayments to related party",
          "amount": -85000,
          "period": "Three months ended December 31, 2025"
        }
      ]
    },
    "subsequentEvents": [
      {
        "eventDate": "2025-12-18",
        "description": "Received a Notice of Civil Claim from a vendor seeking liquidated damages for an alleged breach of contract related to amounts owing for services provided, totaling $211,291 plus interest. The Company had previously recorded the related liability in accounts payable and accrued liabilities. The Company is currently engaged in settlement discussions.",
        "impactValue": 211291
      }
    ]
  }
]