SEDAR Interim Financial Statements

Consolidated Financial Statements of BLACKHAWK GROWTH CORP. For the three months ended December 31, 2025 and 2024 BLACKHAWK GROWTH corp. Consolidated Statements of Financial Position (Expressed in Canadian Dollars) Dec 31, 2025 June 30, 2025 $ $ ASSETS Current assets Cash 364 364 Investment at fair value - - Total assets 364 364 LIABILITIES Current liabilities Trade and other payables (notes 12 and 15) 67,805 94,873 Short term loan (note 10) 60,646 13,225 Due to related party (note 12) 220,331 231,050 348,782 339,148 Non-current liabilities Convertible debt (notes 10 and 16) 1,184,025 1,173,568 Total liabilities 1,532,807 1,512,716 SHAREHOLDERS’ EQUITY (DEFICIENCY) Share capital (note 8) 40,742,550 40,742,550 Contributed surplus 5,148,220 5,111,647 Deficit (47,423,213) (47,366,549) Total shareholders’ equity (deficiency) (1,532,443) (1,512,352) Total liabilities and shareholders’ equity (deficiency) 364 364 Going concern (note 3) Subsequent events (note 16) See accompanying notes to the consolidated financial statements. Approved for issuance by the Board of Directors on February 18 2026 Signed “Justin Hanka” Director Signed “John Dinan” Director BLACKHAWK GROWTH CORP. Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars) Three months ended December 31, Six months ended December 31, 2025 2024 2025 2024 $ $ $ $ Expenses General and administrative (18,961) (918) (6,536) (3,675) Consulting Accretion and interest (note 9) (23,808) (29,823) (47,030) (86,391) Professional fees (24,086) (7,094) (3,098) (15,171) Share based compensation (note 8) Total expenses (66,855) (37,835) (56,664) (105,237) Loss before other items (66,855) (37,835) (56,664) (105,237) Other income Other income - - - - Total other income - - - - Net and comprehensive income (loss) (66,855) (37,835) (56,664) (105,237) Weighted average shares outstanding, basic and diluted 8,825,200 78,233,688 8,825,200 78,233,688 Net income (loss) per share basic and diluted (0.00) (0.00) (0.00) (0.00) See accompanying notes to the consolidated financial statements BLACKHAWK GROWTH CORP. Consolidated Statements of Changes in Equity (Deficiency) (Expressed in Canadian Dollars) Number of shares Amount Contributed surplus Deficit Total $ $ $ $ Balance, June 30, 2024 78,252,003 40,113,420 5,240,777 (47,361,636) (2,007,439) Conversion of convertible debt into shares 10,000,000 629,130 (129,130) - 500,000 Net loss for the year - - - (4,913) (4,913) Balance, June 30, 2025 88,252,003 40,742,550 5,111,647 (47,366,549) (1,512,352) Net profit for the quarter (56,664) (56,664) Loan value change - 36,573 36,573 Share consolidation (79,426,803) Balance, December 31, 2025 8,825,200 40,742,550 5,148,220 (47,423,213) (1,532,443) See accompanying notes to the consolidated financial statements BLACKHAWK GROWTH CORP. Consolidated Statements of Cash Flows (Expressed in Canadian Dollars) Half year ended December 31, 2025 2024 $ $ Cash provided by (used in) Operations: Net profit (loss) from operations (56,664) (105,237) Accretion and interest 47,030 86,391 Trade and other payables (27,068) (54,195) Accretion on Convertible debt Cash used for continued operations (36,702) (73,041) Finance: Short term loan 36,702 73,041 Convertible debt Cash provided by finance 36,702 73,041 Net change in cash and cash equivalents - 0 Cash and cash equivalents, beginning of the year 364 0 Cash and cash equivalents, end of the quarter 364 0 See accompanying notes to the consolidated financial stateme --- nts. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 1. General information Blackhawk Growth Corp. (the “Company”) was incorporated under the Business Corporations Act (Alberta) on March 25, 1986. The Company invested in equity and debt instruments of companies to generate positive returns for shareholders. The Company’s registered office is located at Suite 2200, 885 West Georgia Street, Vancouver, British Columbia, V6C 3E8. On October 3, 2025, the Company entered into a restructuring agreement and in connection with this restructuring effort, the Company agreed to appoint two additional directors (the “Restructuring Committee”). On December 16, 2025, the Exchange determined that the Company did not meet the continued listing requirements and the .X extension was added to the listed securities of the Company that the Exchange has deemed to be inactive. 2. Basis of preparation Statement of compliance These consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All amounts are expressed in Canadian dollars, unless otherwise noted. The Company presents its financial position on a non-classified basis in order of liquidity. Basis of presentation The consolidated financial statements have been prepared on a historical cost basis except as disclosed in note 4. These financial statements have been prepared on a going concern basis. The consolidated financial statements are presented in Canadian dollars, which is the Company’s functional and presentation currency. 3. Going concern For the six months ended December 31, 2025, the Company reported a net and comprehensive profit (loss) of $(56,664) (2024 - $105,237) and has an accumulated deficit of $47,423,213 (2024 - $47,466,873). These conditions indicate the existence of a material uncertainty that casts significant doubt about the Company’s ability to continue as a going concern. As at December 31, 2025, the Company has cash of $364 (2024 - $364). The Company will manage its activity levels, expenditures and commitments based on its current cash position BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 3. Going concern (continued) For the six months ended December 31, 2025, the Company reported a net and comprehensive profit (loss) of $(56,664) (2024 - $105,237) and has an accumulated deficit of $47,423,213 (2024 - $47,466,873). These conditions indicate the existence of a material uncertainty that casts significant doubt about the Company’s ability to continue as a going concern. As at December 31, 2025, the Company has cash of $364 (2024 - $364). The Company will manage its activity levels, expenditures and commitments based on its current cash position The financial statements have been prepared on the basis that the Company will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company’s ability to continue as a going concern is dependent on its ability to generate additional financial resources in order to meet its planned business objectives. Financial resources will come in the form of debt and/or equity financing. These financial statements do not reflect adjustments in the amounts and classifications of ass --- ets and liabilities reported that would be necessary if the going concern assumption was not appropriate. Such adjustments could be material. 4. Significant accounting policies These policies have been applied consistently for all periods presented in these consolidated financial statements. a.) Basis of consolidation These consolidated financial statements have been prepared in accordance with IFRS 10, Consolidated Financial Statements (“IFRS 10”), and include the accounts of the Company and its former wholly owned consolidated subsidiary. As discussed under critical accounting estimates and judgements, the Company has determined it meets the definition of an investment entity. b.) Cash and cash equivalents Cash comprises cash on hand. Other investments (term deposits and certificates of deposit) with an original term to maturity at purchase of three months or less are reported as cash equivalents in the statement of financial position. c.) Foreign currency translation The Company’s former and current consolidated subsidiaries had the same functional currency as that of the Company and translates foreign denominated monetary assets and liabilities at the exchange rate prevailing at period end; non-monetary assets, liabilities and related depreciation at historic rates; revenues and expenses at the average rate of exchange for the period; and any resulting foreign exchange gains or losses are included in the statement of comprehensive loss. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 4. Significant accounting policies (continued) d.) Taxes The Company follows the liability method of accounting for taxes. Under this method, deferred tax assets and liabilities are recognized based on the estimated tax effects of temporary differences in the carrying amount of assets and liabilities in the financial statements and their respective tax bases. Deferred tax assets and liabilities are calculated using the enacted or substantively enacted income tax rates that are expected to apply when the asset is recovered, or the liability is settled. Deferred tax assets or liabilities are not recognized when they arise on the initial recognition of an asset or liability in a transaction (other than in a business combination) that, at the time of the transaction, affects neither accounting nor taxable profit. Deferred tax assets for deductible temporary differences and tax loss carry forwards are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences or tax loss carry forwards can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and is reduced if it is no longer probable that sufficient future taxable profits will be available against which the temporary differences or tax loss carry forwards can be utilized. Current tax is calculated based on net earnings for the year, adjusted for items that are non-taxable or taxed in different periods, using income tax rates that are enacted or substantively enacted at each reporting date. Income taxes are recognized in equity or other comprehensive income, consistent with the items to which they relate. e.) Revenue recognition Purchases and sales of investments are recognized on the trade date. Realized gains and losses on disposal of investments and unrealized gains and losses in the value of investments are reflected in the statement --- of loss and comprehensive loss. Upon disposal of an investment, previously recognized unrealized gains or losses are reversed to recognize the full realized gain or loss in the period of disposition. The Company recognizes interest income as the interest is earned using the accrual method. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 4. Significant accounting policies (continued) f.) Share-based compensation The Company’s Stock Option Plan (the “Option Plan”) provides current employees with the right to elect to receive common shares in exchange for options surrendered. The Company records compensation expense over the graded vesting period based on the fair value of options granted. Compensation expense is recorded in the statement of comprehensive loss as share-based compensation expense with a corresponding credit to contributed surplus. When stock options are exercised, the proceeds, together with the amount recorded in contributed surplus, are recorded in share capital. The fair value of stock options granted is estimated using the Black- Scholes option pricing model, taking into account amounts that are believed to approximate the forfeiture rate, volatility of the trading price of the Company’s shares, the expected lives of the awards of stock-based compensation, the fair value of the Company’s stock and the risk-free interest rate, as determined at the grant date. Forfeitures are estimated through the vesting period based on past experience and future expectations and adjusted upon actual vesting. g.) Financial instruments (investments at fair value) Classification All investments at fair value are classified upon initial recognition and are designated as fair value through profit or loss with changes in fair value reported in the statement of loss and comprehensive loss. Recognition, derecognition and measurement Purchases and sales of investments are recognized on the trade date. Equity investments and loan investments are designated at fair value through profit or loss are initially recognized at fair value. Investments are derecognized when the rights to receive cash flow from the investment has expired or the Company has transferred the financial asset and the transfer qualifies for derecognition. Subsequent to initial recognition, all investments are measured at fair value. Gains and losses arising from changes in the fair value of the investments at fair value through profit or loss category are presented in the statement of loss and comprehensive loss within net change in unrealized and realized gains or losses on investments in the period in which they arise. Determination of fair values The determination of fair value requires judgment and is based on market information, where available and appropriate. At the end of each financial reporting period, the Company’s management estimates the fair value of investments based on the criteria below and reflects such valuations in the financial statements. The Company is also required to disclose details of its investments within three hierarchy levels (Level 1, 2, or 3) as defined in note 7, based on the transparency of inputs used in measuring or disclosing the fair value, and to provide additional disclosure in connection therewith. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 4. Significant accounting policies (continued) g.) Financial ins --- truments (investments at fair value) (continued) Equity investments Securities including shares, and warrants which are traded in an active market, such as on a recognized securities exchange and for which no sales restrictions apply, are presented at fair value based on quoted closing trade prices at the statement of financial position date or the closing trade price on the last day the security traded if there were no trades at the statement of financial position date. These are included in Level 1 in note 7. For warrants not traded in an active market, no market value is readily available. When there are sufficient and reliable observable market inputs, the Black-Scholes valuation technique is used. These are included in Level 2 in note 7. When no sufficient and reliable observable market inputs are available the warrants would be carried at a Nil value, until a market value can be determined or the Black Sholes technique can be used. The determinations of fair value of the Company’s privately held investments are evaluated based on the financial information available from the private company, including financial statements, cash forecasts, and other completed private placements as well as comparative other companies in the same industry. These are included in Level 3 in note 7. Loan investments When determining the fair value of short-term loans, the Company considers the nature and length of the loan, interest on the loan, business risk of the investee company and any other factors that may be relevant to the ongoing and realizable value of the loan investments. The short-term loans would be included in Level 3. h.) Financial instruments other than investments held at fair value The Company classifies its financial instruments into one of the following categories: fair value through profit or loss, and financial assets or liabilities measured at amortized cost. All financial instruments are measured at fair value on initial recognition. Measurement in subsequent periods is dependent on the classification of the respective financial instrument. Fair value through profit or loss financial instruments are subsequently measured at fair value with changes in fair value recognized in the statement of loss and comprehensive loss. Financial instruments classified as amortized cost are measured at amortized cost using the effective interest method. Cash and cash equivalents, trade and other receivables, bank indebtedness, and trade and other payables are classified as assets or liabilities measured at amortized cost. Investments are classified as assets measured at fair value through profit or loss. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 4. Significant accounting policies (continued) h.) Financial instruments other than investments held at fair value (continued) Transaction costs in respect of financial instruments at fair value through profit or loss are recognized immediately in the statement of loss and comprehensive loss. Transaction costs in respect of financial instruments classified at amortized cost are included in the initial measurement of the financial instrument and amortized to the statement of loss and comprehensive loss using the effective interest method. i.) Per common share amounts Basic per share amounts are calculated by dividing the net earnings or loss by the weighted average number of shares outstanding during the year. Diluted per share amounts --- are calculated by using the treasury stock method, by adjusting the weighted average number of shares outstanding for the potential number of issued instruments which may have a dilutive effect on net earnings or loss. This method assumes that proceeds received from the exercise of in-the-money instruments are used to repurchase common shares at the average market price for the year. 5. Critical accounting estimates and judgments The Company has made estimates and assumptions regarding certain assets, liabilities, revenues and expenses in the preparation of the financial statements. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, actual results may differ from estimated amounts. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Accounting Estimates a) Share-based compensation The Company measures the cost of share-based compensation transactions with employees by reference to the fair value of the equity instruments. Estimating fair value for share-based compensation transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining and making assumptions about the most appropriate inputs to the valuation model including the expected life, forfeiture rate, volatility, and dividend yield of the share option. The Company measures the cost of share-based compensation transactions with consultants by reference to the fair value of the services to be performed. b) Taxes Tax interpretations, regulations and legislation are subject to change and as such, income taxes are subject to measurement uncertainty. Deferred tax assets are assessed by management at the end of the reporting period to determine the probability that they will be realized from future taxable earnings. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 5. Critical accounting estimates and judgments (continued) Accounting Estimates (continued) c) Fair value of investments in securities not quoted in an active market or private company investments Where the fair value of financial assets recorded on the statement of financial position cannot be derived from active markets, they are determined using a variety of valuation techniques. The inputs to these models are derived from observable market data where possible, but where observable market data are not available, judgement is required to establish fair values. The Company will look at the financial information provided by the investee, as well as comparative company information available to determine a fair value. Accounting Judgments a) Determination of investment entity Judgement is required when making the determination that the Company or its subsidiaries meet the definition of an investment entity under IFRS. In accordance with IFRS 10, an investment entity is an entity that: “obtains funds from one or more investors for the purpose of providing them with investment management services, commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation, investment income or both, and measures and evaluates the performance of substantially all of its investments on a fair value basis.” In a --- ddition, IFRS 10 clarifies that an investment entity may earn fee income from the provision of investment related services to external parties. In determining its status as an investment entity, the Company has determined that fair value is the primary measurement attribute used to monitor and evaluate its investments. b) Going concern The Company has experienced lower than planned revenue combined with operating losses. Management has assessed and concluded that the going concern assumption is appropriate for a period of at least twelve months following the end of the reporting period. Management applied significant judgement in arriving at this conclusion including the amount of new investments and total realized gain on investments to be generated to provide sufficient cash flow to continue to fund operations and other committed expenditures; the timing of generating those cash inflows and the timing of the related expenditures; the ability to raise additional capital to support ongoing operations; and the assessment of potentially discretionary expenditures that could be delayed in order to manage cash flows. Given the judgement involved, actual results may lead to a materially different outcome. 6. Adopted and future accounting standards Accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or not expected to have a significant impact on the Company’s financial statements. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 7. Share capital a) Authorized Unlimited number of common voting shares and preferred shares b) Issued On December 12, 2025 the company announced that effective December 17, 2025 that it was consolidating the shares on issue on a one new for ten old basis. The company’s issued capital therefore changed from 88,252,003 shares to 8,825,200 shares. There were no shares issued during the six months ended December 31, 2025. c) Warrants There were no warrants on issue as at December 31, 2025. d) Stock options The Company has implemented a stock option plan for directors, officers, employees, and consultants. The exercise price of each option approximates the market price for the common shares on the date the option was granted. Options granted under the plan generally vest over an eighteen-month period from the date of the grant and expire five years after the grant date. The maximum number of common shares to be issued upon the exercise of options granted under the plan is 3,9787,000 (2024 – 3,978,000) common shares. The details of this stock options issued are as follows: As At December 31, 2025 Number of Options Exercise Price Options outstanding, beginning of year 350,000 $0.69 Expired - - Exercised - - Cancelled - Options outstanding, December 31 2025 350,000 $0.69 The following table summarizes information about stock options outstanding and exercisable at December 31, 2025: Grant Date Expiry Date Outstanding Exercisable Remaining Life (years) Exercise Price $ Mar 1, 2021 Mar 1, 2026 350,000 350,000 0.16 0.69 Outstanding, end of quarter 350,000 350,000 0.16 0.69 BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 e) Convertible debt The equity component of the convertible credit facility at December 31, 2025 is $570,505 (2024 - $570,110) (note 8). 8. Convertible credit facility On November 22, 2021, --- the Company entered into a financing agreement for up to $10,000,000 (the “Credit Facility”) arranged by RiverFort Global Opportunities PCC Ltd. (“RiverFort”). Pursuant to the agreement, the Company agreed to draw down an initial tranche of $2,500,000 maturing on November 22, 2023. Interest payable by the Company is equal to 10% per annum on the tranche. Any subsequent advances under the loan will be subject to interest payable at an equivalent rate to be applied to the term between the date of the relevant advance date and the maturity date. Drawdowns of each subsequent tranche of the credit facility will be subject to the satisfaction of customary closing conditions involving the Company and RiverFort, including any required regulatory approvals. The loan provides for 40% warrant coverage for each advance or drawdown, determined as being 40% of the principal amount of the tranche divided by the corporation’s share price at the time of the advance. The exercise price of the warrants will be set at 140% of the corporation’s share price at the time of the advance and the warrants will expire three years after the date they are granted. In connection with the initial tranche, Blackhawk has issued 1,538,461 warrants to RiverFort whereby each warrant entitled the warrant holder to purchase one common share of the corporation at a price of $0.91 per share until November 22, 2024. As part of the Credit Facility, RiverFort will have the option to convert up to 100% of the principal amount of the loan into shares at a fixed conversion price equal to 120% of the market price of the shares at the time of the applicable drawdown. The fixed conversion price for the initial tranche is $0.78 per share. In addition, RiverFort may at its option, once every 30 days, request and require that the debt represented by the interest that has been deemed to accrue on the loan be converted into shares at a price equal to 90% of the last closing price of the shares on the day prior to the notice of such conversion. This convertible loan was amended on September 25, 2023. As a result, the terms were amended as follows: 1. The maturity date of the loan is extended for 36 months to September 25, 2026. Also, there will be zero interest charged on the loan. 2. The loan can be converted into shares at any time by RiverFort at a conversion price of $0.05 per share. Also, the loan amount is reduced to $2,207,500. This convertible loan was further amended on March 12, 2025. As a result, the terms were amended as follows: BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 8. Convertible credit facility (continued) 1. The maturity date of the loan is extended to March 12, 2028. Also, there will be zero interest charged on the loan. 2. The loan is novated to Shape Capital. 3. The loan can be converted into shares at any time by Shape Capital at a conversion price of $0.05 per share. Also, the loan amount remains at $2,207,500 On March 24, 2025, Shape Capital converted $500,000 of the loan for 10,000,000 shares in the company. On November 17, 2025, Shape Capital novated $600,000 of the Convertible Debenture to a company related to the Restructuring Committee. In addition, as part of the Company’s restructuring efforts, Shape Capital has agreed to novate the remaining balance of the Convertible Debenture to such company, subject to the completion of the applicable documentation. The loan movement half year ended De --- cember 31, 2025 is as follows: Convertible debentures Debenture liability component Debenture equity component Total $ $ $ Balance, June 30, 2024 1,761,938 570,110 2,332,048 Accretion and interest 163,270 - 163,270 Debt modification (251,640) - (251,640) Conversion (500,000) (129,130) (629,130) Balance, June 30, 2025 1,173,568 440,980 1,614,548 Accretion and interest 47,030 47,030 Debt modification (36,573) 129,525 92,952 Conversion Balance, December 31, 2025 1,184,025 570,505 1,754,530 The amendment of the Company’s convertible loan originally with RiverFort, subsequently novated to Shape Capital was considered to be a substantial modification for accounting purposes resulting in an extinguishment of the original liability and an establishment of a new liability. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 9. Short-term loan On March 20, 2024, the Company borrowed $10,000 in principal with a fixed coupon of 15% from RiverFort. On November 17, 2025, Hardenbrook entered into an agreement and assigned a $50,000 portion of its original loan (Note 12) to a third party. The loan is non-interest bearing and payable on demand. 11. Key management compensation and related party transactions Key management personnel are composed of the Company’s directors and officers. There was no remuneration for the quarter. 12. Financial instruments The carrying values of the Company’s financial instruments as at December 31, 2025 were as follows: Asset (liability) Fair value through profit or loss Financial assets at amortized cost Financial liabilities at amortized cost $ $ $ Cash and cash equivalents 364 Trade and other payables - - (67,805) Short term loan (60,646) Loan from related party (220,331) Convertible debt – liability - - (1,184,025) 364 (1,532,807) The carrying values of the Company’s financial instruments as at June 30, 2025 were as follows: Asset (liability) Fair value through profit or loss Financial assets at amortized cost Financial liabilities at amortized cost $ $ $ Cash and cash equivalents - 364 - Trade and other payables - - (94,873) Short-term loan - - (13,225) Due to related party - - (231,050) Convertible debt – liability - - (1,173,568) - 364 (1,512,716) BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 12. Financial instruments (continued) The related party was Hardenbrook Pty Ltd. (“Hardenbrook”). On November 17, 2025, Hardenbrook entered into two loan assignment agreements and transferred $183,000 to a company related to the Restructuring Committee and $50,000 to a third party. As such, $50,000 has been reclassified as short-term loan (Note 10). 13. Risk management Financial instruments risks: The use of financial instruments can expose the Company to several risks including credit, liquidity, and market risks. A discussion of the Company’s use of financial instruments and their associated risks is provided below. a) Credit risk The Company is subject to credit risk on its cash and cash equivalents, trade and other receivables, short term loans at fair value and equity investments at fair value. Cash and cash equivalents, when outstanding, consist of cash bank balances and short-term de- posits maturing in 90 days or less. The Company manages the credit exposure related to short term investments by selecting counter parties based on credit ratings and monitors all investments to ensure a stable retu --- rn. The maximum credit risk exposure associated with the Company’s financial assets is the carrying value. The company also has a short-term loan from Hardenbrook Pty Ltd of $233,629. The Company’s receivables are normally collected within a 60–90-day period. Management believes that the credit risk with respect to trade and other receivables is minimal. After initial recognition, trade and other receivables are allocated to one of three stages of the expected credit loss model to determine the expected credit loss (“ECL”) as follows: • Stage 1: Credit risk has not increased significantly since initial recognition • Stage 2: Credit risk has increased significantly since initial recognition • Stage 3: There is objective evidence of impairment as at the reporting date As at December 31, 2025, the Company had zero trade and other receivables, so no assessment was required. The Company manages its credit risk on equity investments through thoughtful planning, significant due diligence of investment opportunities and by conducting activities in accordance with the investment policies that are approved by the Board of Directors. Management reviews the financial conditions of its investee companies regularly. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 13. Risk management (continued) Financial instruments risks (continued) b) Liquidity risk (continued) Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they are due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due, without incurring unacceptable losses or risking harm to the Company’s reputation. The following are the contractual maturities of financial liabilities as at December 31, 2025: Financial Liabilities < One Year > One Year Loan from related party $220,331 - Short term loan $60,646 - Trade and other payables $67,805 - Convertible debt - $1,184,025 Total $348,782 $1,184,025 The following are the contractual maturities of financial liabilities as at June 30, 2025: Financial Liabilities < One Year > One Year Trade and other payables 94,873 - Short-term loan 13,225 - Due to related party 231,050 - Convertible debt - 1,173,568 Total 339,148 1,173,568 c) Market risk Market risk is the risk that the fair value of, or future cash flows from, the Company’s financial instruments will significantly fluctuate due to changes in market prices. The value of the financial instruments can be affected by changes in equity and commodity prices. The Company is exposed to market risk in trading its investments and unfavorable market conditions could result in dispositions of investments at less than favorable prices. Additionally, the Company is required to fair value its equity investments at the end of each reporting period. The Company has not been able to obtain adequate financial information that it can rely on to make an adequate assessment as to the equity investment’s carrying value. None of the entities have undertaken a private placement or financing during the financial year. Given the market values of private and small cap public companies are material lower in the financial year and also the limited financial information available from each entity, the Directors are of the opinion that there are no reasonable expectations of recovering the expected cash flows of the Entities abo --- ve and so, have decided to write these assets off. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 14. Capital disclosures As at December 31, 2025, in the definition of capital, the Company includes shareholders’ deficiency of $1,532,443 (2024 - $2,074,841). The Company`s objectives when managing capital is to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders. The Company sets the amount of capital in proportion to risk. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may issue new shares, or engage in debt financing. The Company is not exposed to externally imposed capital requirements. 15. Contingencies and commitments On March 12, 2025, the Company agreed to pay a transaction fee of $250,000 to RiverFort upon closing of a transaction to introduce new operations/assets into the Company by way of reverse takeover or otherwise (the “Transaction”). As of December 31, 2025, the Transaction is not closed. During the year, the Company has been notified of a reassessment and related tax claim from the Canada Revenue Agency (“CRA”) relating to historical taxation periods. This matter originated under prior management and directors, and the current management and Restructuring Committee have limited information available at this time. The Restructuring Committee is in the process of investigating the basis of the CRA reassessment and engaging in discussions with the CRA to determine the nature and amount of any obligation, including potential interest and penalties. As the Company is unable to reasonably estimate the ultimate outcome at the reporting date, no liability has been recognized in the financial statements and the matter has been disclosed as a contingency. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 16. Income taxes The income tax provision differs from income taxes, which would result from applying the expected tax rate to net income (loss) before income taxes. The differences between the “expected” income tax expenses and the actual income tax provision are summarized as follows: December 31, 2025 June 30, 2025 $ $ Loss from operations (54,664) (4,912) Expected income tax recovery at 27% (15,299) (1,326) Non-deductible expenses - (23,394) Change in prior year estimates - (994,491) Change in deferred tax assets not recognized 15,299 1,019,211 Total income taxes (recovery) - - The components of the Corporation’s unrecognized deductible temporary differences are as follows: Dec 31, 2025 June 30, 2025 $ $ Investments at fair value 16,567,826 16,567,826 Share issue costs - - Capital losses available for future periods 8,751,690 8,751,690 Non-capital losses available for future periods 7,939,253 7,923,954 33,258,769 33,243,470 A deferred tax asset has not been recognized as it is not probable that the assets will be realized. BLACKHAWK GROWTH CORP. Notes to the Consolidated Financial Statements Half year ended December 31, 2025 and 2024 16. Income taxes (continued) As at December 31, 2025, the Company has not recognized a deferred tax asset in respect of non- capital losses and capital losses available to carry --- forward to future years. The net operating loss carryforwards reflected above expire as follows (capital losses do not expire): Year of Expiry Total 2045 91,557 2044 544,543 2043 466,766 2042 472,531 2041 2,566,226 2040 1,049,648 2039 34,396 2038 372,067 2037 2,326,220 Total 7,923,954