SEDAR Interim Financial Statements

1 BLOCKMATE VENTURES INC. CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) (Expressed in Canadian Dollars, unless otherwise noted) FOR SIX MONTHS ENDED DECEMBER 31, 2025 2 CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS PAGE 3 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION PAGE 4 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS PAGE 5 CONSOLIDATED STATEMENTS OF CASH FLOWS PAGE 6 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY PAGE 7 NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGES 8 - 21 3 NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited condensed consolidated interim financial statements of the Company. 4 BLOCKMATE VENTURES INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2025 AND JUNE 30, 2025 (Expressed in Canadian dollars) (Unaudited) Notes December 31, 2025 (Unaudited) June 30, 2025 (Audited) $ $ ASSETS Current Cash 3 218,570 860,881 Amounts receivable 4,443 12,861 Prepaid expenses 4 162,302 248,720 Loans receivable 5 19,665 - Total Current Assets 404,980 1,122,462 Non-current Equipment 6 3,467 4,935 Crypto assets 7 383,459 41,727 Intangibles 8 15,011 15,232 TOTAL ASSETS 806,917 1,184,356 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current Accounts payable and accrued liabilities 9 354,603 460,016 Unearned income - 25,000 Loan payable 11 150,967 - Loans from directors 18 181,515 69 SAFE Notes 10 3,288,440 3,072,825 Total Current Liabilities 3,975,525 3,557,910 Non-current SAFE Notes 10 3,324,431 3,324,431 Total Liabilities 7,299,956 6,882,341 Shareholders’ Deficit Share capital 12 22,876,388 22,049,573 Contributed surplus 13 2,682,142 2,669,673 Warrants and options reserve 13 1,921,557 1,938,439 Restricted stock units reserve 14 205,499 139,524 Deferred share units reserve 15 575,000 297,740 Accumulated deficit (33,940,406) (32,077,752) Accumulated other comprehensive loss (493,463) (434,996) Total deficit attributable to the shareholders of the company (6,173,283) (5,417,799) Non-controlling Interest 16 (319,756) (280,186) Total shareholders’ deficit (6,493,039) (5,697,985) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 806,917 1,184,356 Nature of operations and Going concern (Note 1) Approved on behalf of the Board on February 26, 2026: Signed: “Justin Rosenberg” Signed: “Domenic Carosa” Director Director The accompanying notes are an integral part of the consolidated interim financial statements. 5 BLOCKMATE VENTURES INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian dollars) (Unaudited) For the three months ended December 31, For the six months ended December 31, Notes 2025 2024 2025 2024 $ $ $ $ EXPENSES Amortization and depreciation 6 (694) (384) (1,433) (552) Accretion expense 10 (93,668) (54,166) (188,165) (107,065) Filing fees and transfer fees (7,517) (23,251) (26,549) (43,223) General and administrative (50,839) (439) (214,286) (94,841) Marketing (41,879) (349,988) (169,188) (641,735) Professional and consulting fees 18 (173,457) (504,497) (355,336) (866,042) Rent (9,262) (8,325) (18,867) (16,774) Software development and website --- (32,827) (100,494) (92,426) (162,962) Share-based compensation 13,14,15 (247,020) (428,721) (545,138) (460,144) Wages (210,531) (575,914) (463,475) (925,676) (867,694) (2,046,179) (2,074,863) (3,319,014) Net Loss for the Period Before Other Income (867,694) (2,046,179) (2,074,863) (3,319,014) OTHER ITEMS Foreign exchange loss/(gain) (480) 2,350 (2,188) 378 License income 17 83,614 - 146,955 - Consulting income 25,000 - 25,000 - Impairment on intangibles and equipment 6,8 - (4) - (308) Interest income 588 21 2,557 21 Interest expense (4,252) - (4,252) - Other income/(loss) 7,792 198 (1,697) 352 Expected credit loss 5 (80) - 6,264 - Other loss on debt forgiven (7,744) - - - Total other loss 104,438 2,565 172,639 443 TOTAL LOSS FOR THE PERIOD (763,256) (2,043,614) (1,902,224) (3,318,571) OTHER COMPREHENSIVE INCOME (LOSS) Gain in revaluation of cryptocurrency 7 (124,477) (40,819) (131,826) (20,596) Other comprehensive loss for the year 108,979 11,296 73,359 (98,460) TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD (778,754) (2,073,137) (1,960,691) (3,437,627) Basic weighted average shares outstanding 148,547,550 136,364,606 146,020,230 135,113,059 Basic net loss per share (0.01) (0.01) (0.01) (0.02) Diluted weighted average shares outstanding 148,547,550 180,817,878 146,020,230 179,607,139 Diluted net loss per share (0.01) (0.01) (0.01) (0.02) The accompanying notes are an integral part of the consolidated interim financial statements. 6 BLOCKMATE VENTURES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian dollars) (Unaudited) Notes 2025 2024 $ $ OPERATING ACTIVITIES Net loss for the period (1,902,224) (3,318,571) Items not affecting cash: Accretion expense 10 188,165 106,507 Loss on revaluation of crypto assets 7 - 1,730 Impairment of intangibles 8 - 308 Depreciation on equipment 6 1,433 552 Share-based compensation 13,14,15 545,137 460,144 Non-cash interest expense on loans payable 11 4,252 - Non-cash received for license income payment 17 (146,955) - Loss on revaluation of Helium asset - 18,866 Expected Credit Loss Recovery 5 (6,264) - Other income on debt forgiven - - (1,316,456) (2,730,464) Changes in non-cash working capital items: Accounts receivable 8,418 (403) Prepaid expenses 4 86,418 427,934 Loans from directors 18 181,446 - Accounts payable and accrued liabilities 9 (101,354) (79,272) Proceeds from deferred revenue - 25,000 Net cash used in operating activities (1,141,528) (2,357,205) FINANCING ACTIVITIES Net proceeds from issuance of shares 12,13 620,500 2,075,000 Additions to loans receivable 5 (25,176) - Proceeds from SAFE notes 10 - 576,744 Proceeds from unearned income (25,000) - Proceeds from loans receivable repayment 5 - (16,040) Net cash provided by financing activities 570,324 2,635,704 INVESTING ACTIVITIES Acquisition of equipment - (2,322) Acquisition of intangibles 8 - (2,484) Conversion of intangible asset to cash (39,502) 1,636,411 Net cash provided by (used in) investing activities (39,502) 1,631,605 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (610,706) 1,910,104 CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 860,881 57,464 EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES (31,605) 639 CASH AND CASH EQUIVALENTS, END OF THE PERIOD 218,570 1,968,207 The accompanying notes are an integral part of the consolidated interim financial statements. 7 BLOCKMATE VENTURES INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY FOR THE SIX MONTHS ENDED DEC --- EMBER 31, 2025 AND 2024 (Expressed in Canadian dollars) (Unaudited) Number of Common Shares (Note 12) Share Capital (Note 12) Contributed Surplus (Note 13) Warrants and Options Reserve (Note 13) DSU Reserves (Note 15) RSU Reserves (Note 14) Accumulated Deficit Non- Controlling Interest (Note 16) Accumulated Other Comprehensiv e Profit/ (Loss) Total Shareholders’ Deficit $ $ $ $ $ $ $ $ $ Balance, June 30, 2024 110,797,758 19,493,838 2,669,673 1,111,947 - 113,400 (25,117,247) (63,050) (610,726) (2,402,165) Share options vesting portion - - - 54,069 - - - - - 54,069 Private placement 14,000,000 730,580 - 669,420 - - - - - 1,400,000 Warrant exercise 8,900,000 913,526 - (246,026) - - - - - 667,500 Options exercise 150,000 12,553 - (5,053) - - - - - 7,500 Options granted - - - 154,075 - - - - - 154,075 RSU granted - - - - - 252,000 - - - 252,000 Net loss for the period - - - - - - (3,212,239) (106,332) - (3,318,571) Accumulated other comprehensive income - - - - - - - - (119,056) (119,056) Balance, December 31, 2024 133,847,758 21,150,497 2,669,673 1,738,432 - 365,400 (28,329,486) (169,382) (729,782) (3,304,648) Balance, June 30, 2025 143,297,258 22,049,573 2,669,673 1,938,439 297,740 139,524 (32,077,752) (280,186) (434,996) (5,697,985) Private placement - - - - - - - - - - Warrant exercised 8,273,337 826,815 - (206,315) - - - - - 620,500 Warrant expired - - 12,469 (12,469) - - - - - - Options vested - - - 201,902 - - - - - 201,902 RSU vested - - - - - 65,975 - - - 65,975 DSU vested - - - - 277,260 - - - - 277,260 Net loss for the period - - - - - - (1,862,654) (39,570) - (1,902,224) Accumulated other comprehensive income - - - - - - - - (58,467) (58,467) Balance, December 31, 2025 151,570,595 22,876,388 2,682,142 1,921,557 575,000 205,499 (33,940,406) (319,756) (493,463) (6,493,039) The accompanying notes are an integral part of the consolidated interim financial statements. BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 8 1. NATURE OF OPERATIONS AND GOING CONCERN Blockmate Ventures Inc. (Formerly Midpoint Holdings Ltd.) (the "Company") was incorporated under the Business Corporations Act (British Columbia) on April 15, 2010 and was classified as a Capital Pool Company as defined in the TSX Venture Exchange ("TSX-V") Policy 2.4. The principal business of the Company was to negotiate an acquisition or participation in a business subject to acceptance by regulatory authorities and, in certain cases, shareholder approval (the "Qualifying Transaction") which it completed on April 11, 2013. The Company owns 100% of Blockchain World Ltd. (“BWL”). BWL owns Hivello Holdings Ltd and the premium domain names, Blockchain.eu (Europe) and Blockchain.com.au (Australia). During the year ended June 30, 2024, the Company completed the divestment of its Midpoint foreign exchange business (MPNT and MPT HK) to focus all its resources toward the blockchain and clean energy ventures within its portfolio and reduce its net cash outflows by approximately $500,000 per annum. The Company’s head office is 650-1231 Pacific Blvd., Vancouver, British Columbia, V6Z E2. There is no assurance that the Company’s business will result in future profitable operations. The business is subject to risk, market conditions, supply and demand, and competition. The Company relies on financing and the cash currently available to meet its a --- dministrative overhead and maintain its assets. The recoverability of amounts shown in assets is dependent on several factors. These factors include the ability of the Company to obtain financing to complete the planned growth, reduction of operating expenses, and future cashflow from the Company’s business. However, there can be no assurance that the Company will be able to continue to raise funds in the future in which case the Company may be unable to meet its obligations. Should the Company be unable to realize on its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts recorded on the statement of financial position. These consolidated financial statements have been prepared on a going concern basis, which contemplates 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 business. On December 31, 2025, the Company also had an accumulated deficit of $33,940,406 (June 30, 2025 - $32,077,752). As at December 31, 2025, the Company has working capital deficit of $3,570,545 (June 30, 2025 – $2,435,448) which is not considered sufficient to fund operations at their current levels for the next twelve months. The Company does not foresee substantial future revenue from operations and will be required to generate additional funding through external financing, which cannot be assured. The management is expecting to fund future growth and expansion along with meeting cash flow requirements through raising funds by warrant exercises and private placements. These material uncertainties may cast significant doubt on the Company’s ability to continue as a going concern. 2. MATERIAL ACCOUNTING POLICIES Statement of compliance and principles of consolidation The Company has prepared these consolidated financial statements and the notes thereto in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. They are presented in Canadian dollars. The consolidated financial statements have been prepared on a historical cost basis using the accrual basis of accounting. The consolidated financial statements include the Company’s wholly owned subsidiary, BWL and HVL; and discontinued operations, MPT UK and MPT HK. All significant intercompany accounts and transactions have been eliminated as a result of consolidation. The consolidated financial statements comprise of the financial statements of the Company and the following entities owned and controlled by the Company and its subsidiaries: BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 9 2. MATERIAL ACCOUNTING POLICIES (Continued) Statement of compliance and principles of consolidation (continued) Ownership Name of Subsidiary Country of Incorporation Dec 31, 2025 Jun 30, 2025 Principle Activities Blockchain World Ltd London 100% 100% Blockchain Hivello Holdings Ltd London 96% BWL 96% BWL Blockchain Hivello Operations B.V. Netherlands 100% HVL 100% HVL Blockchain Hivello Software Development Company Ltd Vietnam 100% HVL 100% HVL Blockchain Midpoint Canada Canada 100% 100% Dormant company These consolidated financial statements were approved and authorized by the Board of Directors of the Co --- mpany on February 26, 2026. During the year ended June 30, 2025, Hivello Software Development Company Ltd., a company incorporated by Hivello Holdings on August 5, 2024, has started its operations and was included in the consolidated financial statements. All intercompany transactions, balances, income and expense are eliminated upon consolidation. The operating results of Midpoint Hong Kong and Midpoint & Transfer, which were subsidiaries sold during the year ended June 30, 2024, are presented as discontinued operations in these consolidated financial statements. Prior to their sale, the Corporation owned 100 percent of the shares of each subsidiary. Subsidiaries are those entities which the Company controls by having the power to govern the financial and operating policies. Subsidiaries are fully consolidated from the date on which control is obtained by the Company and are deconsolidated from the date that control ceases. 3. CASH At December 31, 2025, the Company had cash of $218,570 (June 30, 2025 - $860,881). The Company maintains cash in various banks in Canada, United Kingdom, Netherlands, and Vietnam. 4. PREPAID EXPENSES As at December 31, 2025, the Company had an aggregate prepaid expense of $162,302 (June 30, 2025 - $248,720). Prepaid expenses as at December 31, 2025 consist of the following: Prepaid Expense December 31, 2025 June 30, 2025 $ $ Consulting and Professional fees 12,050 12,050 Filing and Listing Fees 20,130 28,244 Contractor fees 6,322 6,415 Marketing & Advertising 3,902 79,319 Rent 4,186 2,618 Travel 11,121 10,496 General expenses 90,638 95,625 Deposit 13,953 13,953 Total prepayments 162,302 248,720 BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 10 5. LOANS RECEIVABLE During the six months ended December 31, 2025, the company has advanced funds amounting to $111,040 to an external party (June 30, 2025 - $1,057,640) and received $96,574 repayment (June 30, 2025 - $16,353). The transactions are in form of cash and crypto assets (Note 7). This loan is due on demand and interest-free. On June 30, 2025, due to the credit risk of loans receivable, the Company reviewed the collectability of the loans receivable and determined the need to recognize expected credit loss of $1,007,879 due to significant doubt that the loans may not be fully recoverable. The difference is due to foreign currency conversion. During the six months ended December 31, 2025, the company has recognized a recovery of expected credit loss totaling to $6,264 and has an outstanding loans receivable balance of $19,665. The following table summarizes the Company’s loans receivable transactions for the six months ended December 31, 2025, and the year ended June 30, 2025: December 31, 2025 June 30, 2025 $ $ Balance, beginning of the period - - Additions 111,040 1,057,640 Payments received (96,574) (16,353) Expected credit (loss)/recovery 6,264 (1,007,879) Effect of changes in foreign exchange rates (1,065) (33,408) Balance, end of the period 19,665 - 6. EQUIPMENT The following table summarizes the Company’s equipment transactions for the six months ended December 31, 2025, and the year ended June 30, 2025: December 31, 2025 June 30, 2025 $ $ Cost Balance, beginning of the period 7,006 1,963 Additions - 4,999 Effect of changes in foreign exchange rates (65) 44 Balance, end of the period 6,941 7,006 Accumulated --- Depreciation Balance, beginning of the period 2,071 327 Depreciation 1,433 1,673 Effect of changes in foreign exchange rates (30) 71 Balance, at end of the period 3,474 2,071 Net Book Value 3,467 4,935 Comprised as follows: Computer Equipment 3,467 4,935 Total 3,467 4,935 At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication those assets have suffered an impairment loss. If any such indication exists, it estimates the asset’s recoverable amount to determine the extent of the impairment loss (if any). Where it is not possible to estimate an individual asset’s recoverable amount, the Company estimates the recoverable amount of the cash-generating unit (‘CGU’) to which the asset belongs. Where it can identify a reasonable and consistent basis of allocation, it also allocates corporate assets to individual CGU’s, or otherwise allocates them to the smallest group of CGU’s for which it can identify a reasonable and consistent allocation basis. BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 11 6. EQUIPMENT (Continued) If an asset or CGU’s recoverable amount is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount, recognizing an impairment loss immediately in profit or loss. During the six months ended December 31, 2025, the Company did not identify indicators of impairment with respect to its equipment (June 30, 2025 - $Nil). 7. CRYPTO ASSETS Cryptocurrencies owned by HVL consist of USDT and Helium. Cryptocurrencies are initially measured at cost and subsequently measured using a revaluation model. December 31, 2025 June 30, 2025 $ $ Bitcoin (BTC) 361,596 - Tether (USDT) 362 7,496 USD Coin (USDC) 1,326 13,442 Solana (SOL) 101 89 Nosana (NOS) 4,081 7,464 Mysterium (MYST) 7,937 - Polygon (POL) 1 - Helium asset 8,055 13,236 Balance, end of the period 383,459 41,727 A summary of crypto asset transactions is as follows: i) During the period ended December 31, 2025, the company has advanced funds amounting to $111,040 to an external party and received $96,574 repayment. $85,864 of the advanced funds and $96,574 of the received payment are in form of crypto assets (Note 5). ii) During the period ended December 31, 2025, the company did not receive any gross proceeds for SAFE notes financing in form of cryptocurrencies (June 30, 2025 - $1,585,000 USD ($2,301,014 CAD) (Note 10)). iii) During the period ended December 31, 2025, the company opened a new line of credit with a principal amount of 105,895 USD or ($148,624 CAD) in return for stablecoins, which was used to purchase a bitcoin (Note 11). iv) During the period ended December 31, 2025, the company received an aggregate value of $146,955 crypto assets as payment for license income (Note 17). The cryptocurrency is presented as an intangible asset initially measured at cost of $515,285 and subsequently measured using revaluation model. The fair value of the cryptocurrency as at December 31, 2025 is $383,459 (June 30, 2025 - $41,727). This resulted to a loss in revaluation of cryptocurrency amounting to $131,826 for the period ended December 31, 2025 (2024 - $20,596). Quantity Value per unit December 31, 2025 $ $ Bitcoin (BTC) 3 119,939.6024 361,596 Tether (USDT) 265 1.3683 362 USD Coin (USDC) 969 1 --- . 3683 1,326 Solana (SOL) 0.59 170.5880 101 Nosana (NOS) 16,187 0.2521 4,081 Mysterium (MYST) 33,176 0.2392 7,937 Polygon (POL) 5 0.1368 1 Helium HNT 3,115 1.8742 5,837 Helium IOT 7,813,233 0.0003 2,217 SPL Helium Token 0.49 1.8742 1 Balance, end of the period 383,459 The value per unit is based on the quoted market price per Bitcoin (BTC), Tether (USDT), USD Coin (USDC), Nosana (NOS), Solana (SOL), Mysterium (MYST), Polygon (POL), and Helium assets in an active cryptocurrency market, as at December 31, 2025. BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 12 8. INTANGIBLES The following table summarizes the Company’s intangibles transactions for the six months ended December 31, 2025 and the year ended June 30, 2025: December 31,2025 (Unaudited) June 30, 2025 (Audited) $ $ Cost Balance, beginning of the period 142,226 141,916 Additions - 5,929 Effect of changes in foreign exchange rates (531) (5,619) Balance, end of the period 141,695 142,226 Accumulated Depreciation Balance, beginning of the period 126,684 126,374 Impairment - 310 Balance, at end of the period 126,684 126,684 Net Book Value 15,011 15,542 Comprised as follows: Trademarks 15,011 15,542 Total 15,011 15,542 During the six months ended December 31, 2025 and the year ended June 30, 2025, management determined that the Company does not have a plan to promote the websites related to domains acquired during the year in the near future. This resulted to recognition of impairment of intangible assets for $Nil and $310, respectively. 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES As at December 31, 2025, the Company had an aggregate accounts payable and accrued liabilities of $354,603 (June 30, 2025 - $460,016) all held by entities with continuing operations. Accounts payable and accrued liabilities as at December 31, 2025 consist of the following: Accounts payable and accrued liabilities December 31, 2025 June 30, 2025 $ $ Total Accounts Payable 140,809 143,828 Total Accruals 155,273 264,617 Other Payables 58,521 51,571 Total accounts payable and accrued liabilities 354,603 460,016 Accruals as at December 31, 2025 consist of the following: Accruals December 31, 2025 June 30, 2025 $ $ Professional fees 71,973 181,867 Wages payable 81,250 81,250 General expenses 2,050 1,500 Total accruals 155,273 264,617 BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 13 10. SAFE NOTES In December 2023, the Company entered into an advanced subscription agreement that allows the investors to convert the principal amount to shares of Hivello (a subsidiary). On December 14, 2023, the company successfully completed a $1,000,000 USD capital raise. This SAFE (Simple Agreement for Future Equity) instrument fundraising round places a pre-money valuation cap on Hivello at $5,000,000 USD. Additionally, in January 2024, the Company closed another $1,500,000 USD capital raise at a pre-money valuation cap of $9,000,000 USD. In December 2023, the Company has completed tranche 1 financing and has issued an aggregate of $1,484,229 USD ($2,024,934 CAD) SAFE notes in relation to the agreement. Of the issued SAFE notes include $484,229 USD ($660,634 CAD) advance payments from investors for the second round of capital raise closed --- in January 2024. In January 2024, the Company has completed tranche 2 financing and has issued an aggregate of $1,080,000 USD ($1,473,444 CAD) Simple Agreement for Future Equity (SAFE) notes. During the year June 30, 2024, and pursuant to the capital raise, the company received gross proceeds of: • Cash and cash equivalents amounting to $800,500 USD ($1,092,122 CAD) • Cryptocurrencies amounting to $1,415,000 USD ($1,930,485 CAD) (Note 6) • Service agreements equivalent to $275,000 USD ($375,183 CAD) (Note 4) • Converted previously issued SAFE Notes, amounting to $73,729 USD ($100,588 CAD) In April 2025, the Company has completed tranche 3 financing and has issued an aggregate of $2,683,937 USD ($3,661,695 CAD) Simple Agreement for Future Equity (SAFE) notes. As at June 30, 2025, the total SAFE notes issued by the Company amounts to $5,248,166 USD ($7,160,072 CAD). During the year June 30, 2025, and pursuant to the capital raise, the company received gross proceeds of: • Cash and cash equivalents amounting to $658,937 USD ($898,988 CAD) • Service agreements equivalent to $440,000 USD ($600,292 CAD) (Note 4) • Cryptocurrencies amounting to $1,585,000 USD ($2,162,416 CAD) (Note 7) From the components of the agreement below: • The convertible notes have no maturity date. • The Company will issue a variable number of shares upon conversion and ultimate settlement of the debt. • The holder is entitled to receive cash or other financial assets from the Company (IFRS 9, paragraph 4.2.1). • The first and second tranche of SAFE Notes has a total principal amount of $3,498,377 CAD ($2,564,229 USD) and total carrying value of $3,072,825 CAD ($2,252,309 USD) as at June 30, 2025 (June 30, 2024 - $3,235,517 CAD (1,534,228.63 USD)). The SAFE notes were discounted using the 6.7% and a new estimated maturity date on June 30, 2027. • The third tranche of SAFE Notes has a total principal amount of $3,661,695 CAD ($2,683,937 USD) and total carrying value of $3,324,431 CAD ($2,436,730 USD) as at June 30, 2025 (June 30, 2024 - $Nil). The SAFE notes were discounted using a rate of 4.95% with an estimated maturity date on June 30, 2027. • If the Company has any Future Token* Offerings, then the Investor shall be entitled to receive, at no cost, a portion of the Tokens being distributed in Future Token Offerings on a pro-rata basis. *Coin or Token means any form of sale, grant, distribution, private sale or the public sale of cryptographic coins or tokens via a private placement, initial coin offering, blockchain or otherwise. • No interest is payable on the Advance Subscription in any circumstance. No amount of the Advance Subscription is repayable by the Company in any circumstance, but such amount may be converted into shares. The instruments are classified as financial liabilities until conversion takes place in line with IFRS 9, financial instruments. BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 14 10. SAFE NOTES (Continued) Conversion terms: • The Advance Subscription shall automatically convert into Conversion Shares at the Conversion Price, and the Company shall issue and allot to the Subscriber (or as the Subscriber shall direct) the number of fully paid Conversion Shares to which it is entitled in event of financing round, liquidation event, long stop date, and insolvency. • The Conversion Shares so allot --- ted and issued shall be in full satisfaction and discharge of all obligations of the Company under this agreement to the Subscriber and this agreement shall terminate automatically and immediately on completion of such conversion. Interest and Discount rate: • SAFE notes bear no interest and is therefore discounted using a discount rate of 6.7% for tranche 1 and 2 and 4.95% for tranche 3. The carrying value of SAFE notes is $6,612,871 CAD (June 30, 2025 - $6,397,256 CAD) and is estimated to be converted September 30, 2027. The following table summarizes the Company’s SAFE notes transactions as at December 31, 2025, and the year ended June 30, 2025. The table below is expressed in CAD: December 31, 2025 June 30, 2025 $ $ Balance, beginning of the period 6,397,256 3,235,517 Additions - 3,661,695 Interest 188,165 261,304 Discount - (762,459) Effect of exchange rate 27,450 1,199 Balance, end of the period 6,612,871 6,397,256 As at December 31, 2025, no SAFE note was converted, and no equity was issued by the Company in relation to this note. 11. LOANS PAYABLE In December 2025, the Company opened a new line of credit with a principal amount of 105,895 USD or ($148,624.01 CAD) in return for stablecoins used to purchase a bitcoin (Note 7). The loan is due on demand with an interest rate of 18.90% per annum subject to reduction of principal sum. The Company used 2.01 Bitcoin as a collateral for the loan with a condition that if the value of the collateral reached the liquidation limit of 134,697 USD, partial loan payments will be initiated automatically. The following table summarizes the Company’s loans transactions as at December 31, 2025, and the year ended June 30, 2025. The table below is expressed in CAD: December 31, 2025 June 30, 2025 $ $ Balance, beginning of the period - - Additions 148,624 - Interest 4,252 - Effect of exchange rate (1,909) - Balance, end of the period 150,967 - BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 15 12. SHARE CAPITAL Authorized As at December 31, 2025, the Company had authorized unlimited common shares and has 151,570,595 common shares outstanding (June 30, 2025 - 143,297,258). Equity Activity A summary of share transactions is as follows: i) As at December 31, 2025, the Company issued 8,273,337 shares upon the exercise of warrants at a price of $0.075 per share, with the aggregate proceeds of $620,500. The transaction also resulted in a decrease in warrant amounting to $206,315 (Note 13). ii) As at June 30, 2025, the Company issued 17,479,500 shares upon the exercise of warrants and options. A total of 17,292,000 warrants and 187,500 options were exercised at a price of $0.075 and $0.05 per share, with the aggregate proceeds of $1,296,900 and $9,375. The transaction also resulted in a decrease in warrant and options value $466,662 and $6,316, respectively (Note 13). iii) On February 07, 2025, the Company issued 1,020,000 shares upon vesting of restricted share units granted to certain directors and officers of the company (Note 14). iv) On December 23, 2024, the Company completed a non-brokered private placement for gross proceeds of $1,400,000, which will support Blockmate's pursuit of industry leadership in blockchain innovation and underscores its commitment to sustainable and transformative technology. In connection with completion of the offering, the com --- pany has issued 14,000,000 units at a price of $0.10 per unit. Each unit consists of one common share, and one common share purchase warrant exercisable to acquire a further common share at a price of $0.50 until December 23, 2027. v) On July 14, 2023, the Company issued 2,830,761 shares to settle outstanding debt related to the wages payable (Note 18) amounting to $141,538. The Company reached agreements with directors, officers of the company, and two arm's-length creditors to settle outstanding indebtedness totaling $141,538 through the issuance of 2,830,761 common shares at a deemed price of $0.05 per share. On the date of issuance, the shares issued had a fair market value of $0.05 per share. 13. WARRANTS AND OPTIONS RESERVES Warrants The following table summarizes the Company’s warrant activities during the six months ended December 31, 2025 and the year ended June 30, 2025: Number Weighted Average Exercise Price $ Outstanding, June 30, 2024 34,465,337 0.075 Granted 14,000,000 0.500 Expired - - Exercised (17,292,000) 0.075 Outstanding, June 30, 2025 31,173,337 Granted - - Expired (500,000) - Exercised (Note 12) (8,273,337) 0.075 Outstanding, December 31, 2025 22,400,000 BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 16 13. WARRANTS AND OPTIONS RESERVES (Continued) Outstanding share warrants as at December 31, 2025 are summarized below: Grant date Number of warrants Exercise price Expiry date $ 20-Jun-2023 8,400,000 0.075 20-Jun-2026 23-Dec-2024 14,000,000 0.500 23-Dec-2027 Total 22,400,000 During the period ended December 31, 2025, no warrants were granted, 8,273,337 warrants were exercised and 500,000 warrants expired. The exercise of warrants resulted to recognition of decrease warrant value amounting to $206,315. During the year ended June 30, 2025, 14,000,000 warrants were granted in connection to private placement (Note 12), 17,292,000 warrants were exercised, and no warrants expired. The exercise of warrants resulted to recognition of decrease warrant value amounting to $466,662. As at December 31, 2025, the total outstanding warrants of 22,400,000 has a weighted average exercise price of $0.34 and average remaining 1.41 years to exercise before expiry date (June 30, 2025 - total outstanding warrants of 31,173,337 has a weighted average exercise price of $0.27 and average remaining 1.48 years to exercise before expiry date.) The fair value of the warrants was estimated using the Black Scholes option pricing model and the following assumptions: Grant date December 23, 2024 June 15, 2023 Share Price as at date of grant $0.210 $0.060 Exercise Price $0.500 $0.075 Risk-Free Annual Interest 2.97% 3.88% Annualized Volatility 219.27% 364.94% Expected Life of Option 36 months 36 months Expected Annual Dividend 0% 0% A summary of share warrants transactions is as follows: On December 23, 2024, the Company completed a non-brokered private placement and issued 14,000,000 units at a price of $0.10 per unit. Each unit consists of one common share, and one common share purchase warrant exercisable to acquire a further common share at a price of $0.50 until December 23, 2027. The gross proceeds of $1,400,000 were allocated to common shares and share warrants based on the relative fair value. The Company recognized $730,580 common shares and $669,420 share warrants in relation to this transaction --- . No finder's fees or commissions were paid by the company in connection with completion of the offering. Options The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire common shares of the Company to directors, officers, consultants and other key employees of the Company. The number of common shares subject to options granted under the Plan are limited to 10% in the aggregate, and 5% with respect to any one optionee, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 17 13. WARRANTS AND OPTIONS RESERVES (Continued) Options (Continued) The following table summarizes the Company’s option activities during the six months ended December 31, 2025 and year ended June 30, 2025: Number Exercise Price $ Outstanding, June 30, 2024 7,550,000 0.050 Granted 5,625,000 0.210 Exercised (187,500) 0.050 Outstanding, June 30, 2025 12,987,500 Granted - - Exercised - - Outstanding, December 31, 2025 12,987,500 Outstanding share options as at December 31, 2025 are summarized below: Grant date Number of options Exercise price Expiry date $ 27-Oct-2023 7,362,500 0.05 27-Oct-2028 23-Dec-2024 25,000 0.21 23-Dec-2029 23-Dec-2024 5,000,000 0.21 23-Dec-2028 23-Dec-2024 600,000 0.21 23-Dec-2027 Total 12,987,500 A summary of options transactions is as follows: i) On December 23, 2024, the Company granted a total is 5,625,000 share options exercisable at $0.21 per share to certain directors, officers and consultants to the company. Options for 625,000 shares vest immediately, of which 25,000 is exercisable within 5 years and 600,000 is exercisable within 3 years. The remaining 5,000,000 options vest quarterly over a 24-month period and are exercisable for a period of 4 years. 2,725,000 of the options granted required ratification of omnibus plan from shareholders and on July 23, 2025, the shareholder has approved the options grant. During the period ended, December 31, 2025, the options had 1,295,745 vesting portion resulting to recognition of share-based compensation amounting to $195,384 (2025 - $Nil) (Note 18). The fair value of the options was estimated using the Black Scholes option pricing model and the following assumptions: 25,000 options 600,000 options 2,275,000 options 2,725,000 options Share Price $0.21 $0.21 $0.21 $0.115 Exercise Price $0.21 $0.21 $0.21 $0.21 Risk-Free Annual Interest 2.97% 2.97% 2.97% 2.97% Annualized Volatility 194.71% 219.27% 201.52% 201.52% Expected Life of Option 5 years 3 years 4 years 4 years Expected Annual Dividend 0% 0% 0% 0% Vesting immediately immediately 24 months 24 months Fair Value $0.20 $0.20 $0.20 $0.11 BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 18 13. WARRANTS AND OPTIONS RESERVES (Continued) Options (Continued) ii) On October 27, 2023, the Company granted 7,550,000 incentive stock options to certain directors, officers and consultants to the company. With 146,938,374 securities on issue after issue of these options, these incentive options will represent 5.5% of the fully diluted capital. The options vest quarterly over a 24-month period and are exercisable at a --- price of $0.50 until Oct. 27, 2028. During the period ended December 31, 2025, the 7,550,000 options has fully vested. The vesting potion of 193,510 options results to recognition of share-based compensation amounting to $6,518 (2024 - $222,259 for 6,598,359 vesting potion) (Note 18). 187,500 of these options were exercised at a price of $0.05 per share valued at $6,316 (Note 12). The fair value of the options was estimated using the Black Scholes option pricing model and the following assumptions: As at October 27, 2023 Share Price $0.035 Risk-Free Annual Interest 4.05% Annualized Volatility 188.79% Expected Life of Option 5 years Expected Annual Dividend 0% Fair Value $0.03 During the period ended December 31, 2025, no options were granted, exercised or expired. As at December 31, 2025, the total outstanding options of 12,987,500 has a weighted average exercise price of $0.12 and remaining 2.85 years to exercise before expiry date (June 30, 2025 - total outstanding options of 12,987,500 has a weighted average exercise price of $0.12 and remaining 3.35 years to exercise before expiry date). 14. RSU RESERVES The following table summarizes the Company’s RSU activities during the six months ended December 31, 2025 and year ended June 30, 2025: Number Weighted Average Share Price $ Outstanding, June 30, 2024 2,520,000 0.450 Granted 1,200,000 0.210 Vested and issued (1,020,000) 0.450 Outstanding, June 30, 2025 2,700,000 0.210 Granted - - Vested and issued - - Outstanding, December 31, 2025 2,700,000 0.210 Outstanding RSU as at December 31, 2025 are summarized below: Grant date Number of RSU Share price Vest date 7-Feb-24 1,500,000 $0.450 7-Feb-2025 23-Dec-24 1,200,000 $0.21 23-Dec-2025 Total 2,700,000 BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 19 14. RSU RESERVES (Continued) A summary of RSU transactions is as follows: i) On December 23, 2024, the Company granted 1,200,000 restricted share units to certain directors and officers of the company. RSU granted required ratification of omnibus plan from shareholders and on July 23, 2025, the shareholder has approved the RSU grant The RSU has a fair value of $138,000 and vest after 12 months. For the period ended December 31, 2025, the 1,200,000 RSU has fully vested. The vesting portion of 578,630 RSU results to recognition of share-based compensation of $65,975 (2024 - $Nil) (Note 18). The fair value of the RSU was estimated using the following: As at December 23, 2024 Share price – based on the share value closest date to approval date $0.115 RSU Granted 1,200,000 Vesting period 12 months Fair Value $138,000 As at December 31, 2025, certain officers elected to defer conversion of 1,200,000 restricted share units. ii) On February 07, 2024, the Company granted 2,520,000 restricted share units to certain directors and officers of the company in lieu of the wages payable amounting to $93,324. The RSUs were granted in accordance with the omnibus incentive plan adopted by the company and has vested and converted into common shares on February 07, 2025 (Note 12). The share price as at date of grant is $0.045 and is valued $113,400, resulting to a loss on debt settlement of $20,076. The fair value of the RSU was estimated using the following: As at February 07, 2024 Share price $0.045 RSU Granted 2,520,000 Vesting period 12 months Fair Value $113,400 O --- n February 07, 2025, the Company issued 1,020,000 shares upon vesting of restricted share units granted to certain directors and officers of the company (Note 12). Certain officers elected to defer conversion of 1,500,000 restricted share units. As at December 31, 2025, the total outstanding RSU of 2,700,000 has fully vested. During the period ended December 31, 2025, no RSUs were granted or converted to shares. 15. DSU RESERVES On December 23, 2024, the Company granted 5,000,000 deferred share units to certain directors and officers of the company. DSU granted required ratification of omnibus plan from shareholders and on July 23, 2025, the shareholder has approved the DSU grant. DSU vest after 12 months but will only be settled in common shares of the company upon the departure of the holder from the company. For the period ended December 31, 2025, 5,000,000 DSU has fully vested. The vesting portion of 2,410,959 results to recognition of share-based compensation amounting to $277,260 (Note 18). BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 20 15. DSU RESERVES (Continued) The fair value of the DSU was estimated using the following: As at December 23, 2024 Share price – based on the share value closest date to approval date $0.115 DSU Granted 5,000,000 Vesting period 12 months Fair Value $575,000 As at December 31, 2025, the total outstanding DSU of 5,000,000 has fully vested. During the period ended December 31, 2025, no DSUs were granted or converted to shares. 16. NON-CONTROLLING INTEREST On November 14, 2024, HVL, a subsidiary, entered into a stock purchase agreement and issued 465 of its common stock to unrelated parties, resulting in 4% of the ownership interest held by non-controlling shareholders. Reconciliation of non-controlling interest as follows: December 31, 2025 June 30, 2025 Beginning Balance (280,186) (63,050) Non-controlling interest share in net loss (39,570) (217,136) Ending Balance (319,756) (280,186) 17. LICENSE INCOME On January 1, 2025, Hivello Holdings, a subsidiary, entered into a license agreement with an external party to receive 70% of the Token Sale Profit of the Licensee for two years with automatic renewal for successive one year period. In return, Hivello provides the Licensee a right to use its various technologies and intellectual property, including plans for a token economy based on a $HVLO token and Hivello web2 application ("Application"). The Company is entitled to profit from token sales, calculated as Token Sale Proceeds less Reasonable Expenses. • Token Sale Proceeds represent the total revenue generated by the Licensee from the sale of $HVLO tokens. • Reasonable Expenses include costs incurred by the Licensee in connection with the token sale, such as legal and administrative costs. During the six months ended December 31, 2025, the company recognized a total of $146,955 license income, payment of which was received through crypto assets (Note 7) (December 31, 2024 - $Nil). 18. KEY MANAGEMENT COMPENSATION AND RELATED PARTY TRANSACTIONS Related parties and related party transactions impacting the accompanying financial statements are summarized below and include transactions with the following individuals or entities: Key management personnel: Key management personnel include those persons having authority and responsibility for planning, directing --- and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of executive and non-executive members of the Company’s Board of Directors and corporate officers. BLOCKMATE VENTURES INC. NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Expressed in Canadian Dollars, unless otherwise noted) (Unaudited) 21 18. KEY MANAGEMENT COMPENSATION AND RELATED PARTY TRANSACTIONS (Continued) Remuneration attributed to key management personnel can be summarized as follows: For the three months ended December 31, For the six months ended December 31, 2025 2024 2025 2024 $ $ $ $ Salaries and benefits (Included in director fees, and wages) 25,000 14,583 50,000 14,583 Consulting fees (Included in professional & consulting fees) 36,000 78,465 72,000 151,917 Share-based compensation (Note 13,14, and 15) 251,189 304,555 545,138 335,978 Total 312,189 397,603 667,138 502,478 The amount loans from directors and related parties in the statements of financial position is $181,515 as at December 31, 2025 (June 30, 2025 - $69). As at December 31, 2025, the Company has $83,622 (June 30, 2025 - $147,864) outstanding accounts payable due to related parties. Out of these payables $6,250 (June 30, 2025 - $6,250) is due to a former director of the Company and a company the former director controls. 19. CAPITAL MANAGEMENT The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition and development of its intangible assets. The capital of the Company consists of shareholders’ equity. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business. The Company has not generated significant revenues and is in the process of executing and developing its marketing plan; as such, the Company is dependent on external financing to fund its activities. In order to carry out the planned budget, the Company will spend its existing working capital and raise additional amounts as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company’s approach to capital management during the six months ended December 31, 2025, and the year ended June 30, 2025. The Company is not subject to externally imposed capital requirements.