SEDAR Interim Financial Statements

Credissential Inc. (formerly Impact Analytics Inc.) Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited) Expressed in Canadian Dollars Notice of Disclosure of Non-auditor Review of the Condensed Interim Consolidated Financial Statements for the Three and Six Months ended December 31, 2025 and 2024 Pursuant to National Instrument 51-102 Continuous Disclosure Obligations, part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor. The accompanying unaudited condensed interim consolidated financial statements of Credissential Inc. for the three and six months ended December 31, 2025 and 2024, have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as issued by the International Accounting Standards Board, and are the responsibility of management. The Company’s independent auditors have not performed a review of these unaudited condensed interim consolidated financial statements. March 2, 2026 Credissential Inc. (formerly Impact Analytics Inc.) Condensed Interim Consolidated Statements of Financial Position As at December 31, 2025 and June 30, 2025 (Unaudited and expressed in Canadian dollars, except where noted) 1 The accompanying notes are an integral part of these condensed interim consolidated financial statements. As at As at Note December 31, 2025 June 30, 2025 $ $ Assets Current assets Cash 119,779 1,315 GST receivable 133,849 130,220 Prepaid expenses 5 82,583 465,705 Asset held for sale 4 1,163,240 1,163,240 1,499,451 1,760,480 Intangible asset 3 1,300,000 1,300,000 Investments in private companies 181 181 Total assets 2,799,632 3,060,661 Liabilities Current liabilities Accounts payable and accrued liabilities 6 983,686 1,023,803 Accounts payable to related parties 10 4,390 4,390 Promissory notes payable 7 290,699 219,800 Convertible note payable 8 648,005 249,000 Convertible subscriptions - 150,000 Total liabilities 1,926,780 1,646,993 Shareholders' equity Share capital 9 15,757,586 15,599,586 Reserves 9 2,094,597 1,683,474 Deficit (16,979,331) (15,869,392) Total shareholders' equity 872,852 1,413,668 Total liabilities and shareholders' equity 2,799,632 3,060,661 Nature of operations and going concern - note 1 Events after the reporting period - note 14 Approved on behalf of the Board of Directors on March 2, 2026: “Colin Frost” “William Page” Director Director Credissential Inc. (formerly Impact Analytics Inc.) Condensed Interim Consolidated Statements of Loss and Comprehensive Loss For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 2 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Three Months Ended Six Months Ended December 31, December 31, Note 2025 2024 2025 2024 $ $ $ $ Expenses Bonus expense - - - 15,000 Consulting expense 11,871 204,084 15,778 602,639 Development expenses - 186,369 - 251,116 Director fees - 24,000 - 55,403 Financing fees 265,750 - 270,750 15,000 Finders’ fees - - - 316,366 General and administrative expenses 9,491 18,000 17,919 42,403 Interest and bank charges 189 2,321 299 2,467 Interest on promissory notes 7 24,713 7,709 33,776 15,188 In --- vestor relations expense 160,207 402,332 339,682 1,181,450 Professional fees 16,306 217,085 34,180 264,071 Shared-based payments 9 70,000 7,314 404,500 4,439,100 Transaction fees - - - 330,000 Travel - 103,430 - 158,840 Operating loss (558,527) (1,172,644) (1,116,884) (7,689,043) Other expenses Gain on debt settlement 6 (8,154) - (8,154) - Exchange loss (3,534) - 1,209 3,842 Excess consideration over net assets 4 - - - 1,844,781 Change in fair value of convertible note - 13,889 - 42,737 Net loss and comprehensive loss for the period (546,839) (1,186,533) (1,109,939) (9,580,403) Weighted average shares outstanding Basic and diluted 96,770,652 37,251,954 125,535,985 32,316,898 Loss per share Basic and diluted (0.01) (0.03) (0.01) (0.30) Credissential Inc. (formerly Impact Analytics Inc.) Condensed Interim Consolidated Statements of Cash Flows For the six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 3 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 2025 2024 $ $ Operating activities Loss for the period (1,109,939) (9,580,403) Adjustments for non-cash items: Transaction fees - 330,000 Excess consideration over net assets acquired - 1,844,781 Change in fair value of convertible note - 42,737 Share-based payments 404,500 4,439,100 Interest and accretion on notes 33,776 15,188 Gain on debt settlement 8,154 - - - Net change in non-cash working capital items: GST receivable (3,629) (112,087) Prepaid expenses 383,122 515,145 Accounts payable and accrued liabilities (48,270) 965,492 Net cash flows - operations (332,286) (1,540,047) Investing activities Cash payment on acquisition of Antenna Transfer Inc. - (25,000) Net cash flows - investing - (25,000) Financing activities Proceeds from convertible note 390,750 1,040,000 Proceeds from exercise of stock options - 318,591 Proceeds from promissory notes 60,000 42,000 Repayment of promissory notes, including facilitation fees and interest - (30,000) Net cash flows - financing 450,750 1,370,591 Change in cash during the period 118,464 (194,456) Cash, beginning of period 1,315 195,140 Cash, end of the period 119,779 684 Credissential Inc. (formerly Impact Analytics Inc.) Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (Unaudited and expressed in Canadian dollars, except where noted) 4 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Common shares Share capital Reserves Deficit Total # $ $ $ $ Balance, June 30, 2024 29,603,212 3,035,464 64,867 (2,989,350) 110,981 Issue of common shares - convertible note 2,206,955 793,737 - - 793,737 Issue of common shares - acquisition of Antenna Transfer Inc. 4,500,000 1,202,926 - - 1,202,926 Issue of common shares - finders' fee on acquisition of Antenna Transfer Inc. 450,000 120,293 - - 120,293 Share-based payments - - 4,439,100 - 4,439,100 Exercise of RSUs 405,000 283,500 (283,500) - - Exercise of stock options 513,856 508,791 (190,200) - 318,591 Net loss and comprehensive loss for the period - - - (9,580,403) (9,580,403) Balance, December 31, 2024 37,679,023 5,944,711 4,030,267 (12,569,753) (2,594,775) Issue of common shares - convertible note 4,970,755 307,263 - - 307,263 Issue of common shares - private placements, net of share issue costs 14,996,968 1,394,314 229,513 - 1,623,827 Issue of common shares - acquisition of CoinCmply 20,000,000 1,300,000 - - 1,300,00 --- 0 Share-based payments - - 2,716,194 - 2,716,194 Exercise of RSUs 17,042,307 5,292,500 (5,292,500) - - Shares for debt settlement 23,949,650 1,360,798 - - 1,360,798 Net loss and comprehensive loss for the period - - - (3,299,639) (3,299,639) Balance, June 30, 2025 118,638,703 15,599,586 1,683,474 (15,869,392) 1,413,668 Issue of common shares - convertible note 7,166,666 129,000 - - 129,000 Warrants issued pursuant to convertible notes - - 35,623 - 35,623 Share-based payments - - 404,500 - 404,500 Exercise of RSUs 2,300,000 29,000 (29,000) - - Net loss and comprehensive loss for the period - - - (1,109,939) (1,109,939) Balance, December 31, 2025 128,105,369 15,757,586 2,094,597 (16,979,331) 872,852 Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 5 1. NATURE OF OPERATIONS AND GOING CONCERN Credissential Inc. (formerly Impact Analytics Inc.) (the “Company”) is a corporation incorporated under the Business Corporations Act (Alberta) on January 28, 2020. The registered and head office address of the Company is 191 Ordze Avenue, Sherwood Park, Alberta, T8B 1M6. Since the date of incorporation, the Company has issued and closed an Offering Memorandum for its Class A shares (the “Offering”), provided services pursuant to the administration agreement, put in place a management team, a board of directors and retained legal counsel. The Company listed its shares on the Canadian Securities Exchange (CSE) on August 13, 2020 (Symbol “ACA”) it then changed its name on October 20, 2023 to Impact Analytics Inc. (Symbol “PACT”) and is now identified by the symbol “WHIP” following its name change to Credissential Inc. on September 18, 2024. The Company’s subsidiary business previously was to sell minority interests in the subsidiaries it forms to arms‐ length purchasers ("Purchasers"), which allows debt securities of the subsidiaries to be eligible for registered savings plans. A registered savings plan is a registered retirement savings plan, registered education savings plan, registered retirement income fund, a tax‐free savings account or other similar registered savings plan. The Purchasers use the capital raised at their own discretion, without reliance on the management or resources of the Company. The Company’s management and capital are not committed to these subsidiaries, nor does the Company receive any economic benefit from the operations of the subsidiaries. On March 18, 2024, the Company described its change of business being to provide risk assessment, data intelligence and financial services platforms powered by AI (artificial intelligence). To this end, the Company is engaged in building a proprietary product stack to optimize and streamline financial decision making for enterprises and individuals. The Company is currently developing three commercial projects: two market entry applications: Credissential, Lana Cash and the PACT platform. On May 20, 2025, the Company announced a comprehensive update to its strategic direction, following the successful acquisition of crypto tax software provider 1000927675 Ontario Inc. dba CoinCmply (“CoinCmply”). On June 30, 2025, the Company entered into a definitive agreement, for the sale of Antenna Transfer Inc. (“Antenna”) (note 4), which completed on February 16, 2026 (note 14). The Company is now positione --- d as a diversified financial transfer solutions provider with two distinct software platforms, including DealerFlow, and CoinCmply. These condensed interim consolidated financial statements (“financial statements”) are prepared on the basis that the Company will continue as a going concern, which assumes that the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of operations. As at December 31, 2025, the Company had working capital deficiency (excluding asset held for sale) of $1,590,569 (June 30, 2025 - $1,049,753), and accumulated deficit of $16,979,331 (June 30, 2025 - $15,869,392). During the six months ended December 31, 2025 the Company also incurred a net loss and comprehensive loss of $1,109,939. The Company does not have traditional sources of revenue, and historically has relied on advances payable and equity financings to cover its operating expenses. The Company's ability to continue as a going concern depends upon it obtaining additional revenue or securing future equity or debt financing for its working capital and development activities, which is uncertain. The financial statements do not include any adjustments that would result from the Company being unable to continue as a going concern. These conditions indicate the existence of material uncertainty related to the Company’s ability to continue as a going concern. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 6 2. MATERIAL ACCOUNTING POLICY INFORMATION Basis of presentation These financial statements have been prepared in conformity with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, using the same accounting policies as detailed in the Company‘s annual audited consolidated financial statements for the year ended June 30, 2025, and do not include all the information required for full annual financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). It is suggested that these financial statements be read in conjunction with the annual audited consolidated financial statements. These financial statements have been prepared on an historical cost basis, except for financial instruments which are classified as fair value through profit or loss (“FVTPL”). In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information. Functional and presentation currency These financial statements are presented in Canadian dollars, except where noted, which is the functional currency of the Company and its subsidiaries. Principles of consolidation These financial statements include the financial information of the Company and its subsidiaries. The financial statements include the following entities: PACT Cloud Ltd. 100% Holding company 1000927675 Ontario Inc. (note 3) 100% Technology company Antenna Transfer Inc. (note 4) 100% Technology company Subsidiaries are entities controlled by the Company and are included in the financial statements from the date that control commences u --- ntil the date that control ceases. The accounting policies of subsidiaries are changed where necessary to align them with the policies adopted by the Company. Inter-company balances and transactions, and any unrealized income (loss) and expenses arising from inter-company transactions, are eliminated in preparing the financial statements. Material accounting policy information The accounting policies, estimates and critical judgments, methods of computation and presentation applied in these financial statements are consistent with those of the most recent annual audited financial statements and are those the Company expects to adopt in its annual consolidated financial statements for the year ended June 30, 2025. Accordingly, these financial statements should be read in conjunction with the Company’s most recent annual audited consolidated financial statements. The preparation of financial statements in conformity with IFRS Accounting Standards requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as at the date of the financial statements and reported amounts of profit or loss and expenses during each reporting period. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 7 2. MATERIAL ACCOUNTING POLICY INFORMATION (continued) The information about significant areas of estimation uncertainty considered by management in preparing these financial statements are as follows: Indicators of Impairment The Company makes judgements about whether or not indicators of impairment, or indicators of a reversal of impairment, exist at each reporting period. This determination impacts whether or not a detailed impairment quantitative assessment is performed at the reporting date Asset held for sale The Company makes judgments in classifying certain non-current assets as held for sale in accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. This assessment involved determining whether the assets were available for immediate sale in their present condition and whether the sale was highly probable within the next 12 months. As at December 31, 2025, the Company classified Antenna as held for sale (note 4). This decision was based on the Company entering into a definitive sale agreement. The Company continues to reassess the classification at each reporting date to ensure the criteria under IFRS 5 remain met. Use of Estimates and Judgments The determination of the fair value of the IP, its classification as an asset with an indefinite useful life, and the assumptions used in impairment testing require significant management judgment and the use of estimates. Changes in these assumptions or in market conditions could result in material adjustments to the carrying amount of the IP in future periods. Valuation of equity consideration granted The valuation of share consideration granted involves management judgment in determining the valuation of the share consideration granted. Judgment is exercised in th --- e reliability of the fair value of the consideration received. Convertible debenture valuation The Company uses judgements, estimates and assumptions in determining the fair value of the convertible loans and debentures. Fair value of equity incentives (stock options, restricted share units, deferred share units, performance share units) and compensatory warrants Determining the fair value of stock options, and compensatory warrants for services or in relation to financings, requires estimates related to the choice of a pricing model, the estimation of stock price volatility, the fair value of the Company’s common shares, the expected forfeiture rate and the expected term of the underlying instruments. Any changes in the estimates or inputs utilized to determine fair value could have a significant impact on the Company’s future operating results or on other components of shareholders’ equity. New accounting policies Certain pronouncements have been issued by the IASB that are effective for accounting periods beginning on or after July 1, 2025. With the exception of changing the Company’s accounting policies from “significant” to “material”, the Company has reviewed all other updates and determined that many of these updates are not applicable or consequential to the Company and have been excluded from discussion within the material accounting policy information. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 8 3. ACQUISITION OF COINCMPLY On May 14, 2025, the Company announced its acquisition of CoinCmply, a private company. Under the terms of the agreement, the Company acquired intellectual property with a value of $1,300,000 through the acquisition 1000927675 Ontario Inc., through the issuance of 20,000,000 common shares in the Company, representing a fair value of $0.065 per common share. The transaction is arm’s length and no finder’s fees are payable. The agreement contains a debt forgiveness clause whereby CoinCmply ensured that all accounts payable and accrued liabilities of CoinCmply were forgiven, repaid or otherwise extinguished in connection with the closing of the Proposed Transaction. The Company did not assume any liabilities. The acquisition of the CoinCmply constitutes an asset acquisition and has been accounted for under the acquisition method. The allocation of the purchase price to the assets acquired and liabilities assumed is based on their estimated fair values as of the acquisition date. The assets and liabilities have been included in the Company’s consolidated financial statements starting from May 14, 2025. The Company acquired an intangible asset upon acquisition for total consideration of $1,300,000. As the acquisition did not constitute a business under IFRS 3, the consideration was allocated to the intangible asset based on the respective fair value. Management has determined that the IP has an indefinite useful life due to the following factors: • The IP is expected to generate economic benefits indefinitely as it can be continuously developed and adapted to evolving market needs. • No foreseeable limit exists to the period over which the IP is expected to contribute to the Company’s cash flows. • The Company plans to maintain and upgrade the IP to sustain its utility and relevance. As a result, the IP will not b --- e amortized but will be subject to annual impairment testing. 4. ANTENNA TRANSFER INC. On August 16, 2024, the Company closed its acquisition of Antenna. Under the terms of the definitive agreement, the Company issued 4,500,000 common shares to Antenna’s shareholders and paid $25,000 in cash. The consideration shares are subject to a 12-month lock-up period, after which 20% of the shares will be released each month. A finder's fee was also issued, amounting to 450,000 common shares. Antenna’s assets comprised of proprietary intellectual property ("IP"), determined to have a fair value of $1,368,000 which was initially recorded as an intangible asset on the statement of Financial Position and the liabilities assumed by the Company were accounts payable and accrued liabilities of $19,781, for total net assets acquired of $1,348,219. During the three months ended September 30, 2024, the Company had prepared a provisional calculation related to the acquisition whereby the Company initially recognized an excess consideration over net asset value of $1,844,781 as other expenses on the Company's financial statements. In accordance with IFRS 3, the Company had a one-year measurement period from the date of acquisition to accurately measure and adjust the provisional amounts recognized for the net assets acquired. For the year ended June 30, 2025, the Company recalculated the measurement of the acquisition of Antenna and recognized the final value of the acquired asset at $1,368,000 and reversed the value of the excess consideration over net assets from the financial statements. The acquired IP is a privacy-focused, encrypted file-sharing and payment platform currently in its pre-revenue stage. The IP was valued using the reproduction cost approach, as this method most reliably estimates fair value in the absence of established revenues or cash flow projections. The 4,500,000 common shares issued to Antenna’s shareholders and 450,000 common shares issued as a finder’s fee were valued based on the consideration received, less the $25,000 cash payment. Therefore, on a pro-rata basis a total of $1,323,219 was recorded as share capital. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 9 4. ANTENNA TRANSFER INC. (continued) Further, on June 30, 2025 the Company entered into a definitive agreement to sell Antenna to Codeifai Limited (“Codeifai”). Codefai is a publicly listed Australian-based product authentication and consumer engagement solutions provider. Under the terms of the Agreement, Credissential will sell all IP to Codefai for total consideration of $1,300,000 Australian Dollars (“AUD”) comprised of common shares of Codefai valued at AUD$1,150,000 and AUD$150,000 cash. As the Company has entered into the definitive agreement and intends to sell Antenna prior to June 30, 2025 the Company has reclassified the intangible asset to asset held for sale at the consideration value of $1,163,240 (AUD$1,300,000) and recorded a loss on sale of asset held for sale of $204,760. The definitive agreement was executed and closed on February 16, 2026 (note 14). 5. PREPAID EXPENSES Receivables and prepayments consist of the following balances: December 31, 2025 June 30, 2025 $ $ Consulting and advisory - 62,621 Insurance - 9,167 Investor relations 82,583 393,917 82,58 --- 3 465,705 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following balances: December 31, 2025 June 30, 2025 $ $ Trades payable 700,497 702,376 Facilitation fees payable 117,000 87,000 Accrued liabilities 166,189 234,427 983,686 1,023,803 7. PROMISSORY NOTES PAYABLE Promissory notes payable comprised of principal and unpaid interest consists of the following: 721785 N.B. Inc. Other promissory notes Total $ $ $ Balance, June 30, 2024 307,407 - 307,407 Draws - 116,300 116,300 Repayments (175,000) (52,130) (227,130) Interest expense 21,966 1,257 23,223 Balance, June 30, 2025 154,373 65,427 219,800 Draws - 60,000 60,000 Interest expense 6,233 4,666 10,899 Balance, December 31, 2025 160,606 130,093 290,699 As at December 31, 2025, the principal outstanding on the notes payable was $249,500 (June 30, 2025 - $189,500) and accrued interest payable was $41,199 (June 30, 2025 - $30,301). During the six months ended December 31, 2025, the Company made cash payments against the accrued interest balance of $nil (2024 - $nil). Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 10 7. PROMISSORY NOTES PAYABLE (continued) The total amounts included in promissory notes payable as at December, 2025 related to 721785 N.B. Inc. (the "Lender") is the principal amount of $125,000 (June 30, 2025 - $125,000) bearing interest at 10% per annum. As at December 31, 2025 the Company had accrued interest of $35,606 (June 30, 2025 - $29,373) included in promissory notes payable to the Lender, additionally as at December 31, 2025 the facilitation fee payable of $70,000 (June 30, 2025 - $70,000) remains outstanding and is included within accrued liabilities. No demand for repayment has been made as of the reporting date. During the six months ended December 31, 2025, the Company also issued short-term promissory notes (the “Other Promissory Notes”) for gross proceeds of $60,000 (year ended June 30, 2025 - $40,750) to various parties, all bearing interest at 10% per annum and incurred facilitation fees of $30,000. During the six months ended December 31, 2025, the Company incurred interest expense of $4,666 (year ended June 30, 2025 - $1,257) and made payments of $nil towards the outstanding principals, accrued interest and facilitation fees payable. During the year ended June 30, 2025, the Company incurred interest expense of $1,257 and made payments of $52,131 towards the outstanding principals and accrued interest and $23,750 towards facilitation fees payable. The total amounts included in promissory notes payable related to the Other Promissory Notes as at December 31, 2025 related to principal was $124,500 (June 30, 2025 - $64,500) and accrued interest of $5,592 (June 30, 2025 - $927) included in promissory notes payable and facilitation fees payable of $47,000 (June 30, 2025 - $17,000) included in accrued liabilities. 8. CONVERTIBLE NOTES PAYABLE Helena Special Opportunities On July 25, 2024, the Company entered into a subscription agreement with Helena Special Opportunities, LLC (“HSO” or “Investor”), pursuant to which the Company issued senior unsecured convertible debentures (“HSO Convertible Notes”) with a total principal amount of up to $5,350,000. The Convertible Notes were issued in tranches, with an initial tranche --- of $1,350,000 issued at closing and subsequent tranches of $250,000 each available at the mutual agreement of the Company and HSO over a 24-month commitment period. The Convertible Notes were issued at 80% of their principal value, representing a subscription price of $4,280,000. The Convertible Notes mature 12 months from their respective issuance date unless earlier converted or redeemed. Each tranche issuance is accompanied by warrants equal to 50% of the tranche value, exercisable for five years at a price equal to 125% of the common share price on the day prior to their issuance, which the Company determines to be another standalone equity component. On August 1, 2025 in connection with the first tranche, the Company issued 675,000 warrants with an exercise price of $0.83 exercisable until August 1, 2029. The Company determined that there are several financial components of the Convertible Notes. The significant ones include the note payable and the commitment fee liability. There is also a standalone equity component being the warrants issued. The fair value of the $1,350,000 initial tranche was determined to be $1,080,000 on the First Closing date of July 25, 2024, and the residual value of $nil was assigned to the warrants. A commitment fee of $240,750 was satisfied through the issuance of additional Convertible Notes, which were recorded as a convertible loan liability and expensed at fair value. The fair value of the convertible notes, being the initial tranche and commitment fee settled through issuance of additional Convertible Notes was determined to be equal to the principal and accordingly, the residual of $nil was assigned to the conversion liability. On October 31, 2025, the Company closed a non-brokered private placement of an additional convertible note with HSO for gross proceeds of $360,750 (“HSO Note 2”). HSO Note 2 bears interest at a rate of 20% per annum, matures 12 months from the date of issuance and is convertible on demand into common shares at the greater of i) price equal to the closing price immediately preceding the submission of a conversion notice and ii) $0.05 per share or such other price as may be permitted under the policies of the CSE. The proceeds from the notes extinguished the outstanding principal of $120,000 on the HSO Convertible Notes and an agreed upon cumulative commitment fee of $240,750 as compensation for the financings. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 11 8. CONVERTIBLE NOTES PAYABLE (continued) The Company retains the right, at its option, to redeem all or part of the HSO Note 2 prior to maturity by providing 10 trading days’ written notice in common shares equal to 110% of the principal amount being redeemed based on the closing price immediately preceding the notice. HSO Note 2 constitutes senior unsecured obligations of the Company, ranking pari passu with all other existing and future senior unsecured indebtedness, senior to all subordinated indebtedness, and junior to all secured indebtedness. Further, HSO Note 2 includes a 9.99% ownership limitation preventing HSO and any joint actors from beneficially owning more than 9.99% of the Company’s issued and outstanding common shares following any conversion. The notes bear interest During the six months ended December 31, 2 --- 025, the Company received conversion notices totaling $129,000 resulting in 7,166,666 common shares being issued to reduce the loan liability with a corresponding increase in Share Capital. During the year ended June 30, 2025, the Company received conversion notices totaling $1,101,000 resulting in 7,177,710 common shares being issued to reduce the loan liability with a corresponding increase in Share Capital. As at December 31, 2025, included in convertible notes payable was principal of $360,750 (June 30, 2025 - $249,000) related to HSO Note 2. Convertible Debenture Units On July 4, 2025, the Company announced it had closed a non-brokered private placement of convertible debenture units (“CD Unit(s)”) of the Company at a price of $1,000 per CD Unit, for gross proceeds of $150,000. Each CD Unit consists of (i) a $1,000 principal amount convertible debenture and (ii) 20,000 common share purchase warrants of the Company, with each warrant entitles the holder to acquire one common share of the Company at a price of $0.05 for a period of twenty-four months following the closing date. The convertible debentures will mature 24 months from the date of issuance and bear interest at a rate of 12.0% per annum. Each convertible debenture will be convertible, in whole or in part, at any time while any principal or interest remains outstanding, into Common Shares, at the option of the holder, at a price of $0.05 per Common Share. The fair value of $150,000 was assigned to the convertible debenture with $nil being assigned to the conversion feature based on the residual value approach. In aggregated, the Company issued 3,000,000 pu6rsuant to the CD Units. The Company used the Black-Scholes option model to estimate the fair value of $35,623 which has been recorded as a debt financing cost, reducing the face value of the debt and shall be accreted over the expected term of the debt. During the six months ended December 31, 2025 the Company record accretion of $8,905 included in interest and accretion on notes in the consolidated interim statements of net loss and net comprehensive loss (2025 - $nil). As at December 31, 2025, the principal outstanding related to the CD Units was $150,000 (June 30, 2025 - $nil) and unamortized financing fees was $26,718 (June 30, 2025 - $nil). The convertible debentures are unsecured obligations of the Company. The net proceeds received by the Company were intended to be used for general corporate and working capital purposes. No finder’s fees were paid in connection with the transaction. The Units and underlying securities were subject to a hold period of four months and one day pursuant to applicable securities laws. As at December 31, 2025, included in convertible notes payable was principal of $123,282 (June 30, 2025 - $nil) and accrued interest of $8,877 (June 30, 2025 - $nil) related to the CD Units. During the six months ended December 31, 2025 the Company incurred interest expense of $8,877 (2025 - $nil) The fair value of the convertible loan payable CD Units at December 31, 2025 was $123,282 (June 30, 2025 - $249,000). The fair value of the Convertible Note outstanding at a given date is determined by the total liabilities the Company would have to pay to the Investor assuming the Investor converts the Convertible Note on that date. The Company did not incur any finders’ fee related to the convertible notes issued during the six months ended December 31, 2025. Credissential Inc. (formerly Impact Analytics Inc.) --- Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 12 8. CONVERTIBLE NOTES PAYABLE (continued) Regent’s Park Securities On October 31, 2025, the Company closed a non-brokered private placement of a convertible note with Regents Park Securities (“Regents”), an arm’s length third party for gross proceeds of $150,000 (the “Regents Note”). The Regents Note bears interest at a rate of 20% per annum, matures twelve months from the date of issuance and is convertible on demand into common shares at the greater of i) price equal to the closing price immediately preceding the submission of a conversion notice and ii) $0.05 per share or such other price as may be permitted under the policies of the CSE. The Company retains the right, at its option, to redeem all or part of the Regents Note prior to maturity by providing 10 trading days’ written notice in common shares equal to 110% of the principal amount being redeemed based on the closing price immediately preceding the notice. The Regents Note constitutes senior unsecured obligations of the Company, ranking pari passu with all other existing and future senior unsecured indebtedness, senior to all subordinated indebtedness, and junior to all secured indebtedness. As at December 31, 2025, included in convertible notes payable was principal of $150,000 (June 30, 2025 - $nil) and accrued interest of $5,096 (June 30, 2025 - $nil) related to the Regents Note. During the six months ended December 31, 2025 the Company incurred interest expense of $5,096 (2025 - $nil). 9. SHARE CAPITAL AND RESERVES The Company has an unlimited number of Class A voting common shares, and an unlimited number of Class A, Class B and Class C preferred shares authorized for issue. Share capital Transactions for the issuance of share capital during the six months ended December 31, 2025: During the six months ended December 31, 2025, the Company issued shares on the conversion of convertible debentures and RSUs as follows: • 7,166,666 common shares were issued on principal conversion of $129,000 related to the Convertible Notes Payable (note 8). The fair value of common shares was based on the fair value of the principal amount converted. The aggregated fair value of $129,000 was recorded as share capital. • 2,300,000 common shares were issued upon exercise of RSUs at no additional consideration. The $29,000 fair value initially recognized, was re-allocated from reserves to share capital. Transactions for the issuance of share capital during the year ended June 30, 2025: On August 16, 2024, 4,500,000 common shares were issued to the shareholders’ of Antenna (the “Acquisition Shares”) and an additional 450,000 were issued in respect to finders’ fees. The fair value of these shares was recorded on a pro-rata basis based on the net assets acquired, less cash payments of $25,000. The resulting fair value allocated was $1,202,926 and $120,293, respectively to the of the Acquisition Shares and shares issued in respect to finders’ fees. On January 17, 2025, the Company closed a Listed Issuer Financing Exemption (“LIFE”) and Concurrent Offering, whereby the Company issued a total of 14,996,968 units of the Company at a price of $0.12 per for gross proceeds of $1,799,636. Each unit consists of one common share in the capital of the Company and one common share purchase warrant. Each warrant en --- titles the holder thereof to acquire one common share at a price per warrant share of $0.16 for a period of 60 months from the date of issuance. In connection with the LIFE and Concurrent Offering the Company incurred $175,809 in cash share issue costs and issued 1,049,708 compensation options (the “Compensation Options”). Each Compensation Options entitles the holder to acquire one unit of the Company at a price of $0.12. Each unit consists of one common share in the capital of the Company and one common share purchase warrant (each a “Compensation Warrant”). Each warrant entitles the holder thereof to acquire one common share at a price per share of $0.16 for a period of 60 months from the date of issuance. As at December 31, 2025, the Compensation Options remain outstanding and exercisable. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 13 9. SHARE CAPITAL AND RESERVES (continued) The fair value of the Compensation Options was calculated using the following assumptions: expected life of options - three years, stock price volatility - 207.99%, no dividend yield, and a risk-free interest rate - 3.01%. Using the above assumptions, the fair value of Compensation Options granted was $0.11 per Compensation Option, for an aggregate value of $112,267. The fair value of the Compensation Warrants was calculated using the following assumptions: expected life of options - five years, stock price volatility - 207.99%, no dividend yield, and a risk-free interest rate - 3.01%. Using the above assumptions, the fair value of Compensation Warrants granted was $0.11 per Compensation Warrant, for an aggregate value of $117,246. The fair value of Compensation Options and Compensation Warrants have been recorded as a share issuance costs. As at June 30, 2025 all Compensation Options remain outstanding and exercisable. On April 22, 2025, the Company executed agreements with various creditors to settle balances owed through the issuance of common shares (the “Shares for Debt”). An aggregate of 23,949,650 common shares were issued to settle $1,360,798 in balances owed. An additional balance owed of $45,200 was settled through cash of $22,600 in connection for a gain of $22,600. During the year ended June 30, 2025 the Company issued shares on the conversion of convertible debentures, stock options and RSUs as follows: • 7,177,710 common shares were issued on principal conversion of $1,101,000 related to the Convertible Notes Payable (note 8). The fair value of common shares was based on the market price on the date of conversion at a range of $0.04 to $0.71. The aggregated fair value of $1,101,000 was recorded as share capital. • 513,856 common shares were issued upon the exercise of stock options with an exercise price of $0.62 for proceeds of $318,591. In addition, $190,200 representing the fair value initially recognized, was re-allocated from reserves to share capital. • 17,447,307 common shares were issued upon exercise of RSUs at no additional consideration. The $5,576,000 representing the fair value initially recognized, was re-allocated from reserves to share capital. Stock options The Company has an Omnibus Equity Incentive Plan which was approved by shareholders in September 20, 2023 (the “Equity Plan”) and replaces the previous stock option plan. The Equ --- ity Plan provides for the grant of stock options and RSUs subject to CSE approval. Under the Equity Plan, the maximum number of equity-based awards issued cannot exceed 30% of the Company’s currently issued and outstanding common shares. In accordance with the Equity Plan, the exercise price of each stock option shall not be less than the market price of the Company's common shares as calculated at the close of the trading session on the date immediately prior to the date of grant. Stock options can be granted for a maximum term of ten years, and vest at the discretion of the Board of Directors. Stock options outstanding under the Company’s former stock option plan are governed by the Equity Plan unless the former stock option plan is more beneficial, in which case the terms of the stock option plan will apply for the benefit of the option holder. The Company’s Equity Plan permits the holder of stock options to exercise cashless (net exercise) by surrendering a portion of the underlying stock option shares to pay for the exercise cost. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 14 9. SHARE CAPITAL AND RESERVES (continued) A continuity of the Company’s stock options is as follows: Options # Outstanding, June 30, 2024 - Granted 3,073,856 Exercised (513,856) Outstanding, June 30, 2025 and December 31, 2025 2,560,000 During the six months ended December 31, 2025, the Company recorded share-based compensation related to stock options of $nil (year ended June 30, 2025 - $345,795). As at December 31, 2025, the Company had stock options outstanding and exercisable as follows: Expiry date Options outstanding and exercisable Exercise price Contractual life remaining # $ (years) May 12, 2026 500,000 0.05 0.37 August 26, 2026 10,000 0.69 0.66 September 3, 2026 50,000 0.61 0.68 February 18, 2027 2,000,000 0.08 1.13 2,560,000 0.09 0.97 The Company recorded the fair value of the stock options granted during the six months ended December 31, 2024, using the Black-Scholes option pricing model. Transactions for stock options during the year ended June 30, 2025: On August 8, 2024, 513,856 stock options were granted to a consultant exercisable at $0.62 each, expiring on August 8, 2026, which vested immediately. Fair value was calculated using the following assumptions: expected life of options - two years, stock price volatility - 115%, no dividend yield, and a risk-free interest rate - 3.23%. Using the above assumptions, the fair value of options granted was $0.37 per option, for an aggregate total of $190,200. On August 26, 2024, 10,000 stock options were granted to a consultant exercisable at $0.69 each, expiring on August 26, 2026, which vested immediately. Fair value was calculated using the following assumptions: expected life of options - two years, stock price volatility - 115%, no dividend yield, and a risk-free interest rate - 3.27%. Using the above assumptions, the fair value of options granted was $0.41 per option, for an aggregate total of $4,100. On September 3, 2024, 50,000 stock options were granted to a consultant exercisable at $0.66 each, expiring on September 3, 2027, of which 50% vested immediately with the remaining 50% vesting On December 3, 2024. Fair value was calculated using the following assumptions: expected life of options - two --- years, stock price volatility - 115%, no dividend yield, and a risk-free interest rate - 3.05%. Using the above assumptions, the fair value of options granted was $0.42 per option, for an aggregate total of $20,800. On February 18, 2025, 2,000,000 stock options were granted to a consultant exercisable at $0.08 each, expiring on February 18, 2027, which vested immediately. Fair value was calculated using the following assumptions: expected life of options – two years, stock price volatility – 207%, no dividend yield. And a risk-free interest rate – 2.89%. Using the above assumptions, the fair value of options granted was $0.07 per option, for an aggregate total of $137,665. On May 12, 2025, 500,000 stock options were granted to a consulted exercisable at $0.05 each, expiring on May 12, 2026, which vested immediately. Fair value was calculated using the following assumptions: expected life of options – one year, stock price volatility – 208%, no dividend yield, and a risk-free interest rate – 2.80%. Using the above assumptions, the fair value of options granted was $0.03 per option, for an aggregate total of $15,530. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 15 9. SHARE CAPITAL AND RESERVES (continued) Restricted share units (RSUs) In accordance with the Equity Plan, RSUs and DSUs are granted to directors, officers, employees, and consultants as part of long-term incentive compensation. The number of Equity Incentives awarded, and underlying vesting conditions are determined by the Company. Additionally, at the Company’s sole discretion, upon each vesting date participants receive (a) common shares equal to the number of Equity Incentives that vested; (b) a cash payment equal to the number of vested Equity Incentives multiplied by the fair market value of a Voting Share; or (c) a combination of (a) and (b). On the grant date of RSUs, the Company determines whether it has a present obligation to settle in cash. If the Company has a present obligation to settle in cash, the RSUs are accounted for as liabilities, with the fair value remeasured at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss for the period. The Company has a present obligation to settle in cash if the Company has a past practice or a stated policy of settling in cash, or generally settles in cash whenever the counterparty asks for cash settlement. If no such obligation exists, RSUs are accounted for as equity settled share-based payments and are valued using the share price of the common shares on the grant date. Since the Company controls the settlement, the RSUs are considered equity settled. Pursuant to the underlying agreements, all Equity Incentives granted to the date of approval of these financial statements are expected to be settled in common shares. A continuity of the Company’s RSUs is as follows: RSUs # Outstanding, June 30, 2024 221,360 Granted 20,647,307 Exercised (17,447,307) Expired (1,771,360) Outstanding, June 30, 2025 1,650,000 Granted 29,300,000 Exercised (2,300,000) Expired (50,000) Outstanding, December 31, 2025 28,600,000 As at December 31, 2025, the Company has RSUs outstanding as follows: Vesting date RSUs outstanding and exercisable Weighted average grant date fair value # --- $ August 1, 2024 100,000 0.70 January 29, 2025 250,000 0.11 March 18, 2025 500,000 0.03 April 4, 2025 50,000 0.02 May 20, 2025 300,000 0.05 June 3, 2025 100,000 0.03 August 15, 2025 22,300,000 0.02 October 15, 2025 5,000,000 0.01 28,600,000 0.02 Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 16 9. SHARE CAPITAL AND RESERVES (continued) Transactions for RSUs during the six months ended December 31, 2025: In August 2025, the Company granted 22,300,000 RSUs to certain consultants, directors and officers of the Company. The shares had a market price of $0.02 at grant date for a fair value of $334,500 recorded as share-based compensation and reserves, accordingly. In October 2025, the Company granted 7,000,000 RSUs to certain consultants of the Company. The shares had a market price of $0.01 at grant date for a fair value of $70,000 recorded as share-based compensation and reserves, accordingly. Transactions for RSUs during the year ended June 30, 2025: In August 2024, the Company issued an aggregate of 6,130,000 RSUs to Directors, Officers, and Consultants of the Company. The shares vested immediately and are no longer restricted. The shares had a market price of $0.70 at grant date for a fair value of $4,291,000 recorded as share-based compensation and share capital. In September 2024, the Company issued an aggregate of 1,467,307 RSUs to Consultants of the Company. The shares vested immediately and are no longer restricted. The shares had a market price of $0.52 at grant date for a fair value of $508,250 recorded as share-based compensation with a corresponding offset to reserves. In January 2025, the Company issued an aggregate of 9,750,000 RSUs to consultants of the Company. The shares vested immediately and are no longer restricted. The shares had a market price ranging from $0.11 to $0.20 on the grant dates. The Company allocated the fair value of $1,786,249 to share-based compensation and reserves accordingly. In February 2025, the Company issued 2,000,000 RSUs to a consultant of the Company. The shares vested immediately and are no longer restricted. The shares had a market price of $0.08 on the grant date. The Company allocated the fair value of $160,000 to share-based compensation and reserves accordingly. In March 2025, the Company issued an aggregate of 850,000 RSUs to a Director, an Office and a consultant of the Company. The shares vested immediately and are no longer restricted. The shares had a market price of $0.03 on the grant date. The Company allocated the fair value of $23,000 to share-based compensation and reserves accordingly. In April 2025, the Company issued 50,000 RSUs to a Director of the Company. The shares vested immediately and are no longer restricted. The shares had a market price of $0.02 on the grant date. The Company allocated the fair value of $1,000 to share-based compensation and reserves accordingly. In May 2025, the Company issued an aggregate of 300,000 RSUs to Directors and a consultant of the Company. The shares vested immediately and are no longer restricted. The shares had a market price of $0.05 on the grant date. The Company allocated the fair value of $15,000 to share-based compensation and reserves accordingly. In June 2025, the Company issued 100,000 RSUs to a consultant of the Company. The share --- s vested immediately and are no longer restricted. The shares had a market price of $0.025 on the grant date. The Company allocated the fair value of $2,500 to share-based compensation and reserves accordingly. During the six months ended December 31, 2025, the Company had 50,000 (year ended June 30, 2025 - 1,771,360) RSUs expire/cancel unexercised. The total share-based payments expense related to RSUs for the six months ended December 31, 2025 was $404,500 (year ended June 30, 2025 - $6,809,499). Warrants As an incentive to complete equity financings, the Company may issue units which include common shares and common share purchase warrants. Using the residual value method, the Company determines whether a value should be allocated to warrants attached to units sold in equity financings. Finders’ or brokers’ warrants may be issued as equity financing share issue costs or for other services and are valued using the Black-Scholes option pricing model. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 17 9. SHARE CAPITAL AND RESERVES (continued) A continuity of the Company’s common share purchase warrants is as follows: Warrants # Outstanding, June 30, 2024 3,181,632 Granted 15,671,969 Expired (311,821) Outstanding, June 30, 2025 18,541,780 Granted 3,000,000 Expired (1,129,140) Outstanding, December 31, 2025 20,412,640 As at December 31, 2025, the Company had common share purchase warrants outstanding and exercisable as follows: Expiry date Warrants outstanding and exercisable Exercise price # $ January 12, 2026 375,000 1.25 July 5, 2027 3,000,000 0.05 June 21, 2029 1,365,672 0.83 August 1, 2029 675,000 0.83 January 17, 2030 14,996,968 0.16 20,412,640 0.23 On July 4, 2025, Pursuant to the CD Units, 3,000,000 warrants were issued. Fair value was calculated using the following assumptions: expected life of options – two years, stock price volatility – 218%, no dividend yield, and a risk-free interest rate – 2.91%. Using the above assumptions, the fair value of options granted was $0.012 per warrant, for an aggregate total of $35,623. During the six months ended December 2025, 1,129,140 common share purchase warrants with an exercise price of $1.25 expired, unexercised (year ended June 30, 2025 - 311,821 with an exercise price of $2.00). The weighted average contractual life of warrants outstanding as at December 31, 2025 is -3.55 years (June 30, 2025 – 4.16 years). 10. RELATED PARTY TRANSACTIONS Key management personnel are the people responsible for the planning, directing, and controlling the activities of the Company and includes both executive and non-executive directors, and entities controlled by key management. The Company considers all directors and officers of the Company to be key management. The following related parties transacted with the Company or Company controlled entities during the six months ended December 31, 2025 and year ended June 30, 2025: o Eric Entz was the former CEO of the Company and provided consulting services and received share-based payments. He resigned during the year ended June 30, 2025. o Simon Tso was the former CFO of the Company and provided professional services and received share-based payments. He resigned during the year ended June 30, 2025. o Stephen Brohman was the former CFO of the Company and provide --- d professional services and received share- based payments. He resigned during the year ended June 30, 2025. o Colin Robson was the former CFO of the Company and provides consulting services and received share-based payments. He was appointed and resigned during the year ended June 30, 2025. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 18 10. RELATED PARTY TRANSACTIONS (continued) o Robert Birmingham, was a former Director of the Company and received share-based payments He resigned during the year ended June 30, 2025. o Sebastian Lowes, was a Director of the Company who provides consulting services to the Company, received share-based payments and milestone bonuses. o Colin Frost is the CEO and a Director of the Company and provides consulting and director services and received share-based payments. He was appointed as the new CEO during the year ended June 30, 2025. o Joe Traversa is a Director of the Company who provides consulting and director services and received share- based payments. o William Page is a Director of the Company who provides consulting and director services and received share- based payments. o George Nguyen is a Director of the Company who provides consulting and director services and received share- based payments. The aggregate value of transactions for the six months ended December 31, 2025 and 2024 with key management personnel and Directors and entities over which they have control or significant influence were as follows: Six Months Ended December 31, 2025 December 31, 2024 $ $ Colin Frost 45,000 60,000 Joe Traversa 3,000 2,500 Colin Robson 5,500 - George Nguyen 3,000 - William Page 3,000 - Eric Entz - 5,000 Sebastian Lowes - 75,000 Robert Birmingham - 3,000 Stephen Brohman - 32,981 Simon Tso - 17,500 59,500 195,981 The outstanding balances as at December 31, 2025 and June 30, 2025 with key management personnel and Directors and entities over which they have control or significant influence were as follows: Outstanding As At, December 31, 2025 June 30, 2025 $ $ Eric Entz 4,390 4,390 4,390 4,390 During the six months ended December 31, 2025, the Company granted 3,000,000 RSUs to Company directors and officers (2024 - 725,000), nil stock options (2024 - nil) and recognized total share-based payments of $404,500 (2024 - $4,439,100) to related parties. During the six months ended December 31, 2025 the Company received gross proceeds $10,000 (2024 - $nil) in promissory notes of which $nil was repaid. In connection with the promissory notes, the Company incurred interest of $1,608 (2024 - $nil) and facilitation fees of $5,000 (2024 - $nil). Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 19 10. RELATED PARTY TRANSACTIONS (continued) Outstanding at the six months ended at December 31, 2025 is principal $34,000 (June 30, 2025 - $64,500) and accrued interest of $993 (June 30, 2025 - $927) included in promissory notes payable and facilitation fees payable of $17,000 (June 30, 2025 - $17,000) included in accrued liabilities. 11. MANAGEMENT OF CAPITAL The Company considers its capital structure to consist of its components of sha --- reholders’ equity. When managing capital, the Company’s objective is to ensure that it continues as a going concern, to ensure it has sufficient capital to deploy on new and existing projects including its commercialization objectives, as well as generating returns on excess funds while maintaining liquidity/accessibility to such funds. In order to facilitate the management of its capital requirements, the Company prepares annual operating and capital expenditure budgets that are monitored for variances and updated regularly depending on various factors, including but not limited to: business development and commercial arrangements, capital deployment, personnel planning, service contracts with vendors, access to financing, government program applications, and general capital market or industry conditions. The Board of Directors relies on the expertise of the Company’s management to sustain future development of the business towards commercialization. Management reviews and adjusts its capital structure on an ongoing basis. The Company is not subject to any externally imposed capital requirements. There were no changes to the Company’s approach to capital management during the six months ended December 31, 2025. 12. FINANCIAL INSTRUMENTS AND RISKS Financial instruments - fair value Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - Inputs other than quoted prices that are observable for the assets or liability either directly or indirectly; and • Level 3 - Inputs that are not based on observable market data. Financial instruments - classification Financial assets Classification and measurement Cash Fair value Financial liabilities Classification and measurement Accounts payable and accrued liabilities Amortized cost Accounts payable to related parties Amortized cost Promissory notes payable Amortized cost Convertible notes payable Amortized cost Convertible subscriptions Amortized cost The Company’s financial instruments measured at amortized cost approximate their fair values. Financial instruments - risk The Company’s financial instruments can be exposed to certain financial risks including liquidity risk, credit risk, price risk, and currency risk. Credissential Inc. (formerly Impact Analytics Inc.) Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended December 31, 2025 and 2024 (Unaudited and expressed in Canadian dollars, except where noted) 20 12. FINANCIAL INSTRUMENTS AND RISKS (continued) Liquidity risk Liquidity risk is the risk that the Company will be unable to meet its financial obligations as they come due. The Company has historically relied upon government assistance programs, equity financings, and the exercise of convertible equity securities (options and warrants), to satisfy its capital requirements and will continue to depend upon these and other possible sources of capital to finance its activities until such time that the Company commences commercial operations and generates future profitability and positive operating cash flows. Credit risk Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual o --- bligations. The Company is exposed to credit risk on its cash and receivables. The Company minimizes its credit risk on its cash and restricted cash (standby letter of credit), by holding the funds with high-credit quality Canadian chartered banks. Management believes that the Company’s credit risk attributable to its various components of receivables is low. Price risk Equity price risk is defined as the potential adverse impact on the Company’s results of operations and the ability to obtain equity financing, or the ability of holders of convertible equity securities (options and warrants) to exercise their securities, which affects proceeds to the Company on such exercises, due to movements in individual equity prices or general movements in the level of the stock market. The Company closely monitors individual equity movements to determine the appropriate course of action to be taken by the Company. Currency risk Currency risk is the risk of fluctuation in profit or loss that arises from fluctuations in foreign exchange rates and the degree of volatility of those rates. The Company is exposed to currency risk as it incurs certain transactions in United States dollar and the Australian dollar, as the Company had accounts payable that were denominated in United States dollars and the sale of Antenna in Australian dollars (note 4). 13. COMPARATIVE AMOUNTS The financial statements for the prior year have been reclassified, where applicable, to conform to the presentation used in the current year. The changes do not affect prior year earnings. 14. EVENTS AFTER THE REPORTING PERIOD On February 16, 2026, the Company closed and completed the previously announced sale of Antenna to Codeifai (note 4). Pursuant to the terms of the Transaction, The Company is set to receive total consideration of AUD$1,300,000, comprising AUD$1,150,000 in common shares of Codeifai and AUD$150,000 in cash. The approx. AUD$1,300,000 in proceeds provides additional working capital to accelerate development of the Company’s current product stack. The Transaction is arms-length and no finders fees are payable in connection with the Transaction. During February 2026, the Company issued an aggregate of 20,100,000 common shares on conversion of RSUs to consultants and an officer of the Company.