SEDAR Interim Financial Statements

[
  {
    "companyName": "ZTEST Electronics Inc.",
    "reportingPeriodEnd": "2025-12-31",
    "reportStatus": "Unaudited",
    "auditorName": null,
    "auditorKeyMatters": [],
    "balanceSheet": {
      "cash": 4414914,
      "accountsReceivable": 1359197,
      "inventories": 1266133,
      "prepaidExpenses": 46872,
      "totalCurrentAssets": 7087116,
      "equipment": 714962,
      "rightOfUseAsset": 76443,
      "investments": 1,
      "totalAssets": 7878522,
      "accountsPayableAndAccruedLiabilities": 1057249,
      "governmentRemittancesPayable": 67349,
      "customerDeposits": 21395,
      "currentPortionOfLeaseLiability": 46271,
      "currentPortionOfLongTermDebt": 22667,
      "totalCurrentLiabilities": 1214931,
      "deferredTaxes": 131686,
      "totalLiabilities": 1346617,
      "shareCapital": 25143154,
      "warrants": 0,
      "contributedSurplus": 2349952,
      "deficit": -20961201,
      "totalShareholdersEquity": 6531905,
      "cashPerShare": 0.1201,
      "workingCapitalPerShare": 0.1597
    },
    "incomeStatement": {
      "productSales": 4304944,
      "costOfProductSales": -2447673,
      "grossProfit": 1857271,
      "sellingGeneralAndAdministrative": -987820,
      "stockCompensation": -26648,
      "interestExpenseLongTermDebt": -647,
      "interestExpenseLeaseLiability": -1426,
      "interestExpenseOther": -167,
      "depreciationOfEquipment": -4215,
      "foreignExchangeLossGain": -807,
      "totalExpenses": -1021730,
      "incomeBeforeOtherIncomeAndProvisionForIncomeTaxes": 835541,
      "interestIncome": 49699,
      "gainOnDisposalOfAssets": 13274,
      "totalOtherIncome": 62973,
      "incomeBeforeProvisionForIncomeTaxes": 898514,
      "provisionForIncomeTaxesCurrent": -258477,
      "provisionForIncomeTaxesDeferred": 22830,
      "totalProvisionForIncomeTaxes": -235647,
      "netIncome": 662867,
      "comprehensiveIncomePerShareBasic": 0.02,
      "comprehensiveIncomePerShareFullyDiluted": 0.02,
      "weightedAverageSharesOutstandingBasic": 36771583,
      "weightedAverageSharesOutstandingFullyDiluted": 36994029
    },
    "cashFlowStatement": {
      "netIncome": 662867,
      "depreciationOfEquipment": 81448,
      "depreciationOfRightOfUseAssets": 82888,
      "imputedInterestOnLeaseLiability": 1426,
      "stockCompensationExpense": 26648,
      "provisionForIncomeTaxesDeferred": -22830,
      "totalAdjustments": 169580,
      "changesInAccountsReceivable": -331477,
      "changesInInventories": -217742,
      "changesInPrepaidExpenses": 16855,
      "changesInAccountsPayableAndAccruedLiabilities": 56603,
      "changesInGovernmentRemittancesPayable": 32367,
      "changesInCustomerDeposits": 14479,
      "totalChangesInNonCashWorkingCapital": -259915,
      "cashFlowFromOperatingActivities": 403532,
      "purchaseOfEquipment": -2893,
      "cashFlowFromInvestingActivities": -2893,
      "repaymentOfLongTermDebt": -33425,
      "repaymentOfLeaseLiability": -92804,
      "issuanceOfCommonShares": 54845,
      "normalCourseIssuerBidShareRepurchases": -19072,
      "cashFlowFromFinancingActivities": -90456,
      "increaseInCashAndCashEquivalents": 310183,
      "cashAndCashEquivalentsStartOfPeriod": 4104731,
      "cashAndCashEquivalentsEndOfPeriod": 4414914,
      "cashPaidForInterest": 890,
      "cashPaidForIncomeTaxes": 226110
    },
    "investmentsAndOtherAssets": [
      {
        "type": "Investment",
        "description": "296,250 Class A common shares of Conversance Inc., a private Canadian technology company, representing a 25.29% non-controlling interest.",
        "ownershipPercentage": 25.29,
        "value": 1,
        "notes": "Impairment provision previously recognized; value reduced to $1. Subject to hold period. ZTEST retains right to maintain ownership >15% in future financings."
      }
    ],
    "shareStructure": {
      "authorizedShares": "Unlimited common shares; unlimited preferred shares in one or more series.",
      "issuedShares": 36936701,
      "classesOfShares": ["Common shares"],
      "warrants": [],
      "options": [
        {
          "number": 300000,
          "exercisePrice": 0.1,
          "expiryDate": "2027-09-30"
        },
        {
          "number": 350000,
          "exercisePrice": 0.27,
          "expiryDate": "2029-03-28"
        },
        {
          "number": 800000,
          "exercisePrice": 0.3,
          "expiryDate": "2029-08-15"
        },
        {
          "number": 100000,
          "exercisePrice": 0.4,
          "expiryDate": "2030-01-17"
        },
        {
          "number": 900000,
          "exercisePrice": 0.28,
          "expiryDate": "2030-12-15"
        }
      ],
      "rightsConvertibleInstruments": null
    },
    "managementCompensation": {
      "currency": "CAD",
      "periods": {
        "sixMonthsEndedDec312025": {
          "employeeAndConsultantCompensation": 631542,
          "professionalFees": 78394,
          "stockBasedCompensation": 23564
        },
        "sixMonthsEndedDec312024": {
          "employeeAndConsultantCompensation": 628263,
          "professionalFees": 70959,
          "stockBasedCompensation": 105029
        }
      },
      "namedIndividuals": [],
      "otherRelatedPartyTransactions": []
    },
    "subsequentEvents": [
      {
        "eventDate": "2026-02-26",
        "description": "Financial statements approved by the Board of Directors.",
        "impactValue": null
      },
      {
        "eventDate": "2026-04-01",
        "description": "New five-year lease extension effective, expected new lease liability ~$1,035,000 if market conditions unchanged.",
        "impactValue": 1035000
      }
    ]
  }
]