SEDAR Interim Financial Statements

ALPHAGEN INTELLIGENCE CORP. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 In Canadian Dollars, unless noted (Unaudited) NOTICE TO READER Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed consolidated interim financial statements, they must be accompanied by a notice indicating that the condensed consolidated interim financial statements have not been reviewed by an auditor. The accompanying unaudited condensed consolidated interim financial statements of AlphaGen Intelligence Corp. have been prepared by and are the responsibility of management. These condensed consolidated interim financial statements for the six months ended December 31, 2025, have not been reviewed or audited by the Company’s independent auditors. AlphaGen Intelligence Corp. Condensed Consolidated Interim Statements of Financial Position As at December 31, 2025 and June 30, 2025 Unaudited - In Canadian Dollars, unless noted 5 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Nature of operations (Note 1) Going concern (Note 2) Contingencies (Note 9) Subsequent events (Note 10) Approved on behalf of the Board of Directors: “Eli Dusenbury”, Director “Jonathan Anastas”, Director As at Notes December 31, 2025 June 30, 2025 ASSETS Current Assets Cash $ 536,979 $ 1,423 GST receivable 25,512 23,276 562,491 24,699 TOTAL ASSETS 562,491 24,699 LIABILITIES Current Liabilities Accounts payable and accrued liabilities 5, 6 255,460 510,000 Related party loans 5, 6 - 59,000 Government loan – current 4 47,880 47,880 TOTAL LIABILITIES 303,340 616,880 SHAREHOLDERS’ EQUITY (DEFICIENCY) Share capital 5 17,143,229 16,070,319 Subscriptions received 5 75,000 - Reserves 5 4,750,672 4,751,297 Accumulated other comprehensive loss (37,858) (37,858) Deficit (21,671,892) (21,375,939) TOTAL SHAREHOLDERS’ EQUITY (DEFICIENCY) 259,151 (592,181) TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIENCY) $ 562,491 $ 24,699 AlphaGen Intelligence Corp. Condensed Consolidated Interim Statements of Loss and Comprehensive Loss For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 6 For the Three Months ended December 31, 2025 For the Three Months ended December 31, 2024 For the Six Months ended December 31, 2025 For the Six Months ended December 31, 2024 EXPENSES Consulting and payroll 30,000 788 60,000 4,340 Management fees (Note 8) 18,000 34,844 36,000 69,164 Office and miscellaneous 215 738 522 2,910 Professional fees 63,899 35,000 63,899 35,000 Transfer agent and filing fees 7,036 10,565 13,857 21,219 OPERATING EXPENSES (119,150) (81,935) (174,278) (132,633) TOTAL OPERATING LOSS (119,150) (81,935) (174,278) (132,633) Foreign exchange gain (loss) - - - (2,825) Gain (loss) on debt settlements (6,337) - (121,675) 61,650 Gain on sale of assets - 10,000 - 10,000 (6,337) 10,000 (121,675) 68,825 NET AND COMPREHENSIVE LOSS (125,487) (71,935) (295,953) (63,808) Loss per share, basic and diluted $ (0.01) $ (0.00) $ (0.03) $ (0.00) Weighted average number of common shares outstanding – Basic and diluted 13,484,544 477,686 9,138,877 4,656,927 The accompanying notes are an integral part of these condensed consolidated interim financial statements AlphaGen Intelligence Corp. Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity (Deficiency) For the Six Months Ended December 31, 20 --- 25 and 2024 Unaudited - In Canadian Dollars, unless noted 7 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Common shares Share capital Subscriptions receivable Shares to be issued Reserves Accumulated OCI Deficit Total # $ $ $ $ $ $ $ Balance, June 30, 2024 4,561,157 15,950,678 - 12,149 4,712,964 (37,858) (21,197,535) (559,602) Obligation to issue shares 30,372 12,149 - (12,149) - - - - Shares issued to settle debt 294,417 107,492 - - 38,333 - - 145,825 Loss for the year - - - - - - (178,404) (178,404) Balance, June 30, 2025 4,885,946 16,070,319 - - 4,751,297 (37,858) (21,375,939) (592,181) Shares issued pursuant to private placement 4,600,000 603,008 - - - - - 603,008 Subscriptions received - - 75,000 - - - - 75,000 Shares issued to settle debt 2,304,138 469,277 - - - - - 469,277 Shares issued pursuant to RSR conversion 2,500 625 - - (625) - - - Loss for the period - - - - - - (295,953) (295,953) Balance, December 31, 2025 11,792,584 17,143,229 75,000 - 4,750,672 (37,858) (21,671,892) 259,151 AlphaGen Intelligence Corp. Condensed Consolidated Interim Statements of Cash Flow For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 8 For the Six Months Ended December 31, Notes 2025 2024 OPERATING ACTIVITIES Net loss for the year $ (295,953) $ (63,808) Items not affecting cash: Gain (loss) on settlement of debt 5 121,675 (61,650) Foreign exchange - 2,825 Change in non-cash working capital items: GST receivable (2,236) (6,190) Accounts payable and accrued liabilities (34,062) 85,734 Cash used in operating activities (142,452) (43,089) FINANCING ACTIVITIES Proceeds from loans 6 - 40,000 Proceeds from private placement 5 603,008 - Proceeds from subscriptions 5 75,000 - Repayment of government loan 4 - (8,484) Cash provided by financing activities 678,008 31,516 Net change in cash 535,556 (11,573) Cash, beginning of year 1,423 17,125 Cash, end of year $ 536,979 $ 5,552 There was no interest or taxes paid during the six months ended December 31, 2025 and 2024. During the six months ended December 31, 2025, the Company settled accounts payable totaling $342,045 (2024 - $nil) and loans payable of $59,000 (2024 - $nil) through the issuance of 2,304,138 (2024 – $nil) common shares valued at $469,277 (2024 - $nil). The accompanying notes are an integral part of these condensed consolidated interim financial statements. AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 9 1. NATURE OF OPERATIONS AlphaGen Intelligence Corp. (the “Company” or “Alpha”) was incorporated under the laws of British Columbia on March 1, 2019. The Company’s registered office is 2200-885 West Georgia Street, Vancouver, British Columbia V6C 3E8. On May 14, 2021, the Company's shares began trading on the Canadian Securities Exchange ("CSE") and now trade under the symbol, "AIC". The Company is a technology-driven organization specializing in the creation of immersive content for the metaverse and augmented reality landscapes. The Company’s expertise extends to various domains, including gaming and gaming-as-a-service (“GaaS”) applications, as well as the implementation of generative artificial intelligence (“AI”). On April 4, 2025, the Company completed a 20:1 share consolidation whereby 20 of the pre-consolidation shares is consolidated into --- one post-consolidation share. All disclosures in these condensed consolidated interim financial statements reflect the common shares, options, warrants and restricted share units on a post-consolidation basis. These condensed consolidated interim financial statements (the “financial statements”) were approved by the Board of Directors on March 2, 2026. 2. GOING CONCERN These financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. During the six months ended December 31, 2025, the Company realized a net loss of $295,953 (2024 - $63,808), and as of December 31, 2025, has an accumulated deficit of $21,671,892 (2024 - $21,375,939) and working capital of $259,151 (2024 Deficiency - $592,181). In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. If for any reason, the Company is unable to continue as a going concern, this could result in adjustments to the amounts and classifications of assets and liabilities in the Company’s financial statements and such adjustments could be material. As a result, these circumstances comprise a material uncertainty which may cast significant doubt about the Company’s ability to continue as a going concern. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern. The Company’s business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, changes in laws, and national and international circumstances. Recent geopolitical events, including, the outbreaks of the coronavirus (COVID-19) pandemic, relations between NATO and Russian Federation regarding the situation in Ukraine, and potential economic global challenges such as the risk of the higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company’s business. AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 10 3. BASIS OF PRESENTATION a) Basis of preparation These financial statements have been prepared using IFRS Accounting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). These financial statements have been prepared on a historical cost basis. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information. These financial statements are condensed as they do not include all of the information required by IFRS for annual financial statements and therefore should be read in conjunction with the Company’s audited financial statements for the year ended June 30, 2025. b) Basis of consolidation These financial statements include the operations of the Company and its subsidiaries, as follows: Subsidiary Country Ownership Percentage 2025 2024 eSports Enterprises Inc. (“eSports”) USA – Delaware 100% 100% GamerzArena LLC (“GamerzArena”) USA – Delaware 100% 100% Shape --- Immersive Entertainment Inc. (“Shape”) Canada – British Columbia 100% 100% Consolidation of an investee begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. All significant intercompany transactions and balances have been eliminated. c) Foreign currencies The Company’s presentation currency is the Canadian dollar. The Company and Shape’s functional currency is the Canadian dollar, while eSports and GamerzArena’s functional currency is the US dollar. Foreign currency transactions occurring in the Company's subsidiaries that have the same functional currency as the Company's presentation currency are translated as follows: Monetary assets and liabilities are translated into Canadian dollars using the exchange rate in effect at the date of the statement of financial position. Non-monetary assets and liabilities that are measured at historical cost are translated into Canadian dollars using the exchange rate in effect at the date of the initial transaction and are not subsequently restated. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in profit or loss. The results and financial position of the Company's subsidiaries that have a functional currency different from the Company's presentation currency are translated into the presentation currency as follows: • Assets and liabilities are translated at the closing rate at the reporting date; • Income and expenses are translated at average exchange rates for the year; • Equity is translated using historical rates; and • All resulting exchange differences are recognised in other comprehensive income as foreign currency translation adjustments. On consolidation, exchange differences arising from the translation of the net investment in foreign entities are taken to other comprehensive income (loss). When a foreign operation is sold, such exchange differences are recognised in the statement of comprehensive loss. AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 11 d) Significant accounting judgements and estimates The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets, liabilities, contingent assets, contingent liabilities, at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. As at December 31, 2025, management has identified the following material estimates: i) Share-based payments Management determines fair value for share-based payments using market-based valuation techniques. The fair value of the market-based and performance-based share awards are determined at the date of grant using generally accepted valuation techniques. Assumptions are made and judgment used in applying valuation techniques. Thes --- e assumptions and judgments include estimating the future volatility of the stock price, expected dividend yield, future employee turnover rates and future employee stock option exercise behaviors and corporate performance. Similar calculations are made to value warrants. Such judgments and assumptions are inherently uncertain. Changes in these assumptions affect the fair value estimates. ii) Impairment considerations Goodwill impairment testing requires management to make critical estimates within the impairment testing model. On an annual basis, the Company tests whether goodwill is impaired. The recoverable value of goodwill is determined using discounted cash flow models, which incorporate assumptions about future events including future cash flows, growth rates and discount rates. iii) Deferred income taxes The estimation of income taxes includes evaluating the recoverability of deferred tax assets based on an assessment of the Company’s ability to utilize the underlying future tax deductions against future taxable income prior to expiry of those deductions. Management assesses whether it is probable that some or all of the deferred income tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. To the extent that management’s assessment of the Company’s ability to utilize future tax deductions changes, the Company would be required to recognize more or fewer deferred tax assets, and future income tax provisions or recoveries could be affected. iv) Valuation of shares issued in non-cash transactions Generally, the valuation of non-cash transactions is based on the value of the goods or services received. When this cannot be determined, it is based on the fair value of the non-cash consideration granted. The Company estimates the fair value of shares issued to settle debt using the trading price of the common shares on the date they are issued. In the preparation of these financial statements, management has made judgments, aside from those that involve estimates, in the process of applying the accounting policies. The following critical judgments can have an effect on the amounts recognized in the financial statements: i) Functional currency Determination of an entity's functional currency involves judgment taking into account the transactions, events, and conditions relevant to each individual entity. Determination of functional currency involves evaluating evidence about the primary economic environment in which each entity operates and is re- evaluated when facts and circumstances indicate that conditions have changed. ii) Going concern The assumption that the Company is a going concern and will continue in operation for the foreseeable future and at least one year. AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 12 iii) Revenue recognition – performance obligations Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, (i.e., the customer can benefit from the goods or services either on its own or together with other resources that are readily available), and are distinct in the context of the contract (i.e., it is separately identifiable from other goods or services in the contract). To --- the extent a contract includes multiple promises, we must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. 4. GOVERNMENT LOAN Prior to its acquisition by the Company, Shape entered into an agreement with Western Economic Diversification Canada to receive a term loan of $60,000 under the Regional Relief and Recovery Fund program (the “Government Loan”). The Government Loan was used to pay for operating costs during a period where the Company’s revenues were temporarily reduced due to economic impacts of the COVID-19 virus. The outstanding amount of the Government Loan that is not repaid by March 28, 2024 becomes immediately repayable in 33 consecutive monthly instalments beginning April 30, 2024. During the year ended, June 30, 2025, the Company failed to make all required payments in accordance with the repayment schedule. As a result, the loan is in default and has been reclassified to current liabilities as at December 31, 2025. The following is a continuity of the Company’s Government Loan: $ Balance, June 30, 2024 56,364 Repayments (8,484) Balance, June 30, 2025 and December 31, 2025 47,880 5. SHARE CAPITAL a) Authorized and Issued Share Capital On April 4, 2025, the Company completed a 20:1 share consolidation whereby 20 of the pre-consolidation shares is consolidated into one post-consolidation share. All disclosures in these financial statements reflect the common shares, options, warrants and restricted share rights on a post-consolidation basis. The authorized capital of the Company consists of an unlimited number of voting Class A common shares (without par value) and an unlimited number of non-voting Class B common shares (without par value). During the six months ended December 31, 2025, the Company had the following common shares transactions: • On July 10, 2025, the Company issued 2,251,326 common shares to settle $275,927 in accounts payables and $59,000 in loans at a settlement price of $0.146. The shares were measured at their fair value at the date of issuance of $450,265 resulting in a loss on settlement of debt of $115,338. Included in the settlement of accounts payables, was $21,600 owing to the Company’s CFO. • On July 28, 2025, the Company issued 2,500 shares pursuant to the exercise of 2,500 RSRs. • On August 25, 2025, the Company issued 700,000 common shares at a price of $0.12 per common share for total proceeds of $84,000. AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 13 • On October 15, 2025, the Company issued 52,812 common shares to settle $12,675 in accounts payables at a settlement price of $0.24. The shares were measured at their fair value at the date of issuance of $19,012, resulting in a loss on settlement of debt of $6,337. • On October 17, 2025, the Company closed a private placement financing issuing 3,900,000 units at a price of $0.135 per unit for proceeds of $526,500. Each unit consists of one common share and warrant exercisable at a price of $0.18 for a period of 24 months from the date of issuance. The Warrants are subject to a 60-day hold period. In connection with the closing of the Offering, an aggregate of $7,492.50 was paid in cash as finder’s fees. The private placement was made pursuant to th --- e “listed issuer financing exemption” under Part 5A of National Instrument 45-106 – Prospectus Exemptions and the Coordinated Blanket Order 45-935 Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. The Shares offered under the Offering are not subject to hold periods under applicable Canadian securities legislation. b) Share Purchase Warrants A summary of the changes in the Company’s share purchase warrants is as follows: Number of Warrants Weighted Average Exercise Price ($) Balance, June 30, 2024 - - Issued 191,667 1.00 Balance, June 30, 2025 191,667 1.00 Issued 3,900,000 0.18 Balance December 31, 2025 4,091,667 0.22 On February 10, 2025, the Company issued 191,667 share purchase warrants in connection with the settlement of related party loans. Each warrant is exercisable at $1.00 per share for a period of two years from the date of issuance. As at December 31, 2025, the Company held the following warrants: Expiry Date Options Warrants Exercise Price February 10, 2027 191,667 $ 1.00 October 17, 2027 3,900,000 $ 0.18 4,091,667 AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 14 c) Options The Company has a stock option plan which allows the Board of Directors to grant stock options, RSUs, and deferred share units to employees, directors, officers, and consultants. The exercise price is determined by the Board of Directors provided the minimum exercise price is set at the Company’s closing share price on the day before the grant date. The options can be granted for a maximum term of five years and vesting terms are determined by the Board of Directors at the date of grant. The common shares reserved for issuance cannot exceed 20% of the issued and outstanding common shares of the Company. A summary of the changes in the Company’s stock options is as follows: Number of Options Weighted Average Exercise Price ($) Balance, June 30, 2025 and December 31, 2025 59,250 2.80 As at December 31, 2025, the Company held the following options: Expiry Date Options Outstanding Options Exercisable Exercise Price June 21, 2026 59,250 59,250 $ 2.80 59,250 59,250 At December 31, 2025, the weighted-average remaining life of the options was 0.49 years. a) Restricted Share Units A summary of the changes in the Company’s RSUs is as follows: Number of Units Balance, June 30, 2025 253,750 Exercised (2,500) Balance, December 31, 2025 251,250 6. RELATED PARTY TRANSACTIONS AND BALANCES Key management are those personnel having the authority and responsibility for planning, directing, and controlling the Company and include both executive and non-executive directors, and entities controlled by such persons. The Company considers all directors and officers of the Company to be key management personnel. All transactions with related parties have occurred in the normal course of operations and have been measured at the exchange amount, which the amount agreed to by the related parties. The aggregate value of transactions relating to key management personal during the six months ended December 31, 2025 and 2024 are as follows: 2025 2024 $ $ Management fees(1)(2) 36,000 69,164 Total 36,000 69,164 AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 15 Notes for the six --- months ended December 31, 2025, the Company incurred: 1) $24,000 (2024 - $24,000) of management fees in provision of CFO services from a company controlled by the CFO and Director of the Company. 2) $Nil (2024 - $33,164) of management fees in provision of director services from a company controlled by Director of the Company. As at December 31, 2025, a balance of $36,000 (2024 - $185,687) was owing to key management personnel for fees incurred on behalf of the Company with these amounts all included in accounts payable and accrued liabilities. The amounts payable are non-interest bearing, are unsecured, and have no specific terms of repayment. As at December 31, 2025, the Company had a balance of $Nil (June 30, 2025 - $40,000) of loan payable owing to a former director of the Company. On July 10, 2025, the Company issued 273,410 common shares to settle this loan. As at December 31, 2025, the Company had a balance of $Nil (June 30, 2025 - $19,000) of loan payable owing to a Company controlled by the brother of a former Director of the Company. On July 10, 2025, the Company issued 129,870 common shares to settle this loan. On July 10, 2025, a company controlled by the CFO and Director of the Company, settled $21,600 of amounts due through the issuance of 147,641 common shares. 7. MANAGEMENT OF CAPITAL The Company defines the capital that it manages as its cash and share capital. The Company’s objective when managing capital is to maintain corporate and administrative functions necessary to support the Company’s operations and corporate functions; and to seek out and acquire new projects of merit. The Company manages its capital structure in a manner that provides sufficient funding for operational and capital expenditure activities. Funds are secured, when necessary, through debt funding or equity capital raised by means of private placements. There can be no assurances that the Company will be able to obtain debt or equity capital in the case of working capital deficits. There have been no changes to the management of capital during the six months ended December 31, 2025. The Company does not pay dividends and has no long-term debt or bank credit facility. The Company is not subject to any externally imposed capital requirements. 8. RISK MANAGEMENT a) Financial Risk Management The Company may be exposed to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives. The main objectives of the Company’s risk management processes are to ensure that risks are properly identified and that the capital base is adequate in relation to those risks. The principal risks to which the Company is exposed are described below. i. Capital Risk The Company manages its capital to ensure that there are adequate capital resources for the Company to maintain operations. The capital structure of the Company consists of cash and share capital. ii. Credit Risk Credit risk is the risk that a counterparty will be unable to pay any amounts owed to the Company. The Company is exposed to credit risk on its cash. The Company manages its credit risk on its cash by holding its cash in large Canadian financial institutions. Credit risk is limited to the cash balance on hand. AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 16 iii. Liquidity Risk Liquidity risk is the risk that the C --- ompany is not able to meet its financial obligations as they fall due. As at December 31, 2025, the Company’s working capital deficiency is $228,382 (June 30, 2025 – $592,181). The Company may seek additional financing through debt or equity offerings, but there can be no assurance that such financing will be available on terms acceptable to the Company or at all. Any equity offering will result in dilution to the ownership interests of the Company’s shareholders and may result in dilution to the value of such interests. The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2025, the Company had cash of $536,979 (June 30, 2025 - $1,423) to cover current liabilities of $303,340 (June 30, 2025 - $616,880). iv. Market Risk Market risk incorporates a range of risks. Movements in risk factors, such as market price risk and currency risk, affect the fair values of financial assets and liabilities. The Company is not exposed to these risks. v. Currency Risk The operating results and financial position of the Company are reported in Canadian dollars. As the Company is exploring opportunities in an international environment, some of the Company’s financial instruments and transactions are denominated in currencies other than the Canadian dollar. The results of the Company’s operations are subject to currency risk. The Company has not entered into any agreements or purchased any foreign currency hedging instruments to hedge possible currency risks at this time. Management believes the foreign exchange risk derived from currency conversions is not significant, and therefore, does not hedge its foreign exchange risk. The Company is exposed to currency risk through the following monetary assets and liabilities denominated in foreign currencies, stated at the Canadian dollar equivalent: Based on the above net exposure and assuming that all other variables remain constant a 10% change in the value of the foreign currencies against the Canadian dollar would result in a $2,000 increase or decrease in the Company’s net loss (2025 – $11,000). b) Fair Values The carrying values of cash, related party loans, accounts payable and accrued liabilities, and government loan, approximate their fair values due to their short-term to maturity. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Quoted prices in markets that are not active, or inputs that are not observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company does not have any financial instruments classified as at fair value. December 31, 2025 June 30, 2025 Accounts payable and accrued liabilities - $USD 26,000 81,000 AlphaGen Intelligence Corp. Notes to the Condensed Consolidated Interim Financial Statements For the Six Months Ended December 31, 2025 and 2024 Unaudited - In Canadian Dollars, unless noted 17 9. CONTINGENCIES Due to the size and nature of the Company’s operations, the Company may, from time-to-time, be subject to threat --- s for potential or actual litigation. During the year end, June 30, 2024, a previous consultant for eSports claimed eSports owes him USD$26,250 under a previous contract. Although the Company disputes that the services were not provided, the full amount of this claim is recognized within accounts payable and accrued liabilities as of December 31, 2025 and June 30, 2025. 10. SUBSEQUENT EVENTS On January 16, 2026 the Company closed a private placement issuing 10,000,000 units at a price of $0.25 per Unit for proceeds of $2,500,000.Each unit consists of one common share and one-half of one warrant, with each whole warrant entitling the holder thereof to acquire one additional share at a price of $0.40 per warrant for a period of two years from the date of issuance. The Company paid $39,500 in cash as finder’s fees, and issued 158,000 finder’s warrants, each warrant exercisable at $0.40 per warrant for two years from the date of issuance.