SEDAR Interim Financial Statements

CORBY SPIRIT AND WINE LIMITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 Q2 1 CORBY SPIRIT AND WINE LIMITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of Canadian dollars) Dec. 31, June 30, As at Notes 2025 2025 ASSETS Cash 2,068 $ 179 $ Deposits in cash management pools 21,821 15,756 Accounts receivable 4 43,331 55,085 Inventories 5 104,363 101,457 Prepaid expenses 1,076 574 Total current assets 172,659 173,051 Note receivable 6 742 - Other assets 6,940 7,143 Deferred income tax assets 939 1,158 Right-of-use assets 7 7,807 3,532 Property, plant and equipment 20,159 20,867 Goodwill 116,962 116,962 Intangible assets 8 69,206 80,095 Total assets 395,414 $ 402,808 $ LIABILITIES Bank indebtedness 9 - $ 3,477 $ Accounts payable and accrued liabilities 10 66,250 64,049 Income and other taxes payable 3,064 2,403 Credit facilities payable 9 - 1,505 Current lease liabilities 2,022 1,688 Total current liabilities 71,336 73,122 Provision for employee benefits 6,053 6,122 Long-term debt 11 96,000 102,000 Deferred income tax liabilities 17,152 18,082 Long-term lease liabilities 5,578 1,918 Non-controlling interest obligation 12 10,069 18,232 Total liabilities 206,188 219,476 Shareholders' equity Share capital 14,304 14,304 Accumulated other comprehensive income 8,350 8,374 Retained earnings 166,572 160,654 Total equity 189,226 183,332 Total liabilities and shareholders' equity 395,414 $ 402,808 $ The accompanying notes are an integral part of these interim condensed consolidated financial statements. 2 CORBY SPIRIT AND WINE LIMITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in thousands of Canadian dollars, except per share amounts) Dec. 31, Dec. 31, Dec. 31, Dec. 31, Notes 2025 2024 2025 2024 Revenue 13 66,914 $ 61,652 $ 142,307 $ 126,766 $ Cost of sales (35,032) (30,392) (73,840) (62,558) Marketing, sales and administration (18,424) (18,187) (38,494) (36,320) Other income (expense) 14 371 (36) 300 155 Earnings from operations 13,829 13,037 30,273 28,043 Financial income 15 70 259 194 664 Financial expense 15 (1,849) (2,331) (3,722) (4,793) Fair value adjustment of non-controlling interest obligation 12 - - (530) - Earnings before income taxes 12,050 10,965 26,215 23,914 Current income taxes (3,524) (3,576) (7,902) (7,144) Deferred income tax recovery 311 511 701 429 Income taxes (3,213) (3,065) (7,201) (6,715) Net earnings 8,837 $ 7,900 $ 19,014 $ 17,199 $ Basic earnings attributable to each share 0.31 $ 0.28 $ 0.67 $ 0.60 $ Diluted earnings attributable to each share 0.31 $ 0.28 $ 0.67 $ 0.60 $ Weighted average common shares outstanding Basic 28,468,856 28,468,856 28,468,856 28,468,856 Diluted 28,468,856 28,468,856 28,468,856 28,468,856 The accompanying notes are an integral part of these interim condensed consolidated financial statements. For the Six Months Ended For the Three Months Ended 3 CORBY SPIRIT AND WINE LIMITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands of Canadian dollars) Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2025 2024 2025 2024 Net earnings 8,837 $ 7,900 $ 19,014 $ 17,199 $ Other comprehensive income: Amounts that will not be subsequently reclassified to earnings: Net actuarial losses (17) (24) (34) (48) Income tax recovery 6 7 10 13 (11) (17) (24) (35) Total comprehensive income 8,826 $ 7,883 $ 18,990 $ 17,164 $ For the Three Months Ended For the Six Months Ended --- INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (in thousands of Canadian dollars) Share Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Balance as at June 30, 2025 14,304 $ 8,374 $ 160,654 $ 183,332 $ Total comprehensive income (loss) - (24) 19,014 18,990 Dividends - - (13,096) (13,096) Balance as at December 31, 2025 14,304 $ 8,350 $ 166,572 $ 189,226 $ Balance as at June 30, 2024 14,304 $ 8,448 $ 158,849 $ 181,601 $ Total comprehensive income (loss) - (35) 17,199 17,164 Dividends - - (12,526) (12,526) Balance as at December 31, 2024 14,304 $ 8,413 $ 163,522 $ 186,239 $ The accompanying notes are an integral part of these interim condensed consolidated financial statements. 4 CORBY SPIRIT AND WINE LIMITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands of Canadian dollars) Dec. 31, Dec. 31, Dec. 31, Dec. 31, Notes 2025 2024 2025 2024 Operating activities Net earnings 8,837 $ 7,900 $ 19,014 $ 17,199 $ Adjustments for: Amortization and depreciation 16 3,472 4,129 7,300 8,067 Net financial expense 15 1,779 2,072 3,528 4,129 Gain on sale of brand trademarks 6 (393) - (393) - Fair value adjustment of non-controlling interest obligation 12 - - 530 - Income tax expense 3,213 3,065 7,201 6,715 Provision for employee benefits - 1 8 (97) 16,908 17,167 37,188 36,013 Net change in non-cash working capital balances 17 18,467 16,295 9,914 4,961 Interest paid (1,507) (1,787) (3,039) (3,705) Interest received 69 259 194 664 Income taxes paid (2,518) (38) (7,241) (2,382) Net cash from operating activities 31,419 31,896 37,016 35,551 Investing activities Additions to property and equipment (445) (836) (951) (997) Additions to intangible assets (60) (55) (67) (149) Proceeds from representation rights 8 3,289 - 3,289 - Proceeds from sale of brand trademarks 6 3,000 - 3,000 - Exercise of option to partially acquire non-controlling interest 12 (9,285) - (9,285) - (Deposits in) withdrawals from cash management pools (16,687) (12,586) (6,065) 3,393 Net cash (used in) from investing activities (20,188) (13,477) (10,079) 2,247 Financing activities Proceeds on note receivable 6 97 - 97 - Repayment of long-term debt 11 (6,000) (6,000) (6,000) (12,000) Payment of lease liabilities (562) (521) (1,067) (911) Repayments of credit facilities payable 9 - (5,254) (1,505) (15,600) Repayment of bank indebtedness 9 - - (3,477) - Dividends paid (6,548) (6,263) (13,096) (12,526) Net cash used in financing activities (13,013) (18,038) (25,048) (41,037) Net change in cash (1,782) 381 1,889 (3,239) Cash, beginning of the period 3,850 1,028 179 4,648 Cash, end of the period 2,068 $ 1,409 2,068 $ 1,409 $ The accompanying notes are an integral part of these interim condensed consolidated financial statements. For the Three Months Ended For the Six Months Ended 5 CORBY SPIRIT AND WINE LIMITED NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of Canadian dollars, except per share amounts) 1. GENERAL INFORMATION Corby Spirit and Wine Limited (“Corby” or the “Company”) is a leading Canadian manufacturer, marketer and importer of spirits, wines and ready to drink offerings (“RTDs”). The Company derives its revenues from the sale of its owned-brands in Canada and other international markets, as well as earning commissions from the representation of selected non-owned brands in the Canadian marketplace. Revenues predominantly consist of sales --- made to each of the provincial liquor boards in Canada. The Company also supplements these primary sources of revenue with other ancillary activities incidental to its core business, such as logistics fees. Corby is controlled by Hiram Walker & Sons Limited (“HWSL”), which is a wholly-owned subsidiary of Pernod Ricard, S.A. (“PR”), a French public limited company that controls 51.6% of the outstanding Voting Class A Common Shares of Corby as at December 31, 2025. Corby is a public company incorporated and domiciled in Canada, whose shares are traded on the Toronto Stock Exchange. The Company’s registered address is 225 King Street West, Suite 1100, Toronto, ON M5V 3M2. 2. SIGNIFICANT ACCOUNTING POLICIES (i) Basis of Preparation Statement of compliance These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”). These interim condensed consolidated financial statements follow the same accounting policies as the most recent annual consolidated financial statements, except for changes in accounting policies and methods described below. These interim condensed consolidated financial statements should be read in conjunction with the Company’s 2025 annual consolidated financial statements. These interim condensed consolidated financial statements were approved by the Company’s Board of Directors on February 11, 2026. Functional and presentation currency The Company’s interim condensed consolidated financial statements are presented in Canadian dollars, which is the Company’s, and its subsidiaries, functional and presentation currency. Foreign currency translation Transactions denominated in foreign currencies are translated into the functional currency using the exchange rate applicable at the transaction date. Non-monetary assets and liabilities denominated in foreign currencies are recognized at the historical exchange rate applicable at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate applicable at the balance sheet date. Foreign currency differences related to operating activities are recognized in earnings from operations for the period. Basis of Measurement These interim condensed consolidated financial statements are prepared in accordance with the historical cost model, except for certain categories of assets and liabilities, which are measured in accordance with other methods provided for by IFRS Accounting Standards (“IFRS”) as described in the most recent annual consolidated financial statements, except for recently adopted policies and methods described below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. 6 Use of Estimates and Judgments The preparation of these interim condensed consolidated financial statements in conformity with IFRS requires management to make certain judgements, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Judgment is commonly used in determining whether a balance or transaction should be recognized in the interim condensed --- consolidated financial statements, and estimates and assumptions are more commonly used in determining the measurement of recognized transactions and balances. However, judgment and estimates are often interrelated. Estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Estimates are made on the assumption the Company will continue as a going concern and are based on information available at the time of preparation. Estimates may be revised where the circumstances on which they were based changes or where new information becomes available. Future outcomes can differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The Company has assessed significant accounting judgements and estimates in preparing these interim condensed consolidated financial statements for the three and six months ended December 31, 2025 and December 31, 2024. Management’s most critical estimates in determining the value of assets and liabilities and the most critical judgements in applying accounting policies that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next year have been described in Note 2 of the Company’s most recent annual consolidated financial statements and have been applied consistently in the preparation of these condensed consolidated interim financial statements except for the impact of the adoption of the new and revised standards and interpretations described below, and the judgements and estimates described in Note 6 “Note Receivable”. Seasonality The interim condensed consolidated financial statements should not be taken as indicative of the performance to be expected for the full fiscal year due to the seasonal nature of the spirits business. Seasonality factors cause Corby’s operating results to fluctuate from quarter to quarter. Sales of spirits and wines are typically strong in the first and second quarters of the fiscal year, while third-quarter sales are usually lower after the end of the retail holiday season. Fourth-quarter sales of spirits and wines typically increase again with the onset of warmer weather, as consumers tend to increase their purchasing levels during the summer season. This contrasts with the seasonality trends of RTDs, with the strongest sales typically occurring in the first and fourth quarters to align with the onset of warmer months, while the second and third quarters are comparatively lower. (ii) Adoption of New and Revised Standards and Interpretations Recent accounting pronouncements The following new accounting standard is effective for the financial period ended December 31, 2025, but was not applicable to Corby: Recent accounting pronouncements not in effect The below standards and amendments to standards have been issued but are not yet effective for the financial period ending December 31, 2025, and accordingly, have not been applied in preparing these interim condensed consolidated financial statements: Effective Date Company Effective Date Amendments to IAS 21 Lack of exchangeability of currencies January 1, 2025 July 1, 2025 New or Revised Pronouncement 7 a) IFRS 18, Presentation and Disclosure in Financial Statements In April 2024, the IASB issued a new standard IFRS 18 “Presentation and --- Disclosure in Financial Statements” that will replace IAS 1 “Presentation of Financial Statements”. This new standard introduces newly defined subtotals on the statement of earnings, new requirements for classification of information, and disclosure of Management Performance Measures in the financial statements. This new standard is effective for annual reporting periods beginning on or after January 1, 2027. For Corby, the amendment will become effective July 1, 2027. The Company is currently assessing the impact that the new standard will have on its financial statements and disclosures. Other upcoming standards and amendments to standards that are not expected to have an impact on the Company’s disclosures and financial results are as follows: 3. FAIR VALUE The Company uses a fair value hierarchy in order to classify the fair value measurements and disclosures related to the Company’s financial assets and financial liabilities. The fair value hierarchy has the following levels:  Level 1 – Quoted market prices in active markets for identical assets or liabilities;  Level 2 – Inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and  Level 3 – Unobservable inputs such as inputs for the asset or liability that are not based on observable market data. For financial assets and liabilities that are valued at other than fair value on its balance sheets (i.e., deposits in cash management pools, accounts receivable, bank indebtedness, accounts payable and accrued liabilities and credit facilities payable), fair value approximates their carrying value at each balance sheet date due to their short- term maturities. The fair value of the term loan payable is approximately $95,563 at December 31, 2025. Fair value is determined using Level 2 inputs. Level 3 inputs are used to determine the fair value of pension plan assets contained within the infrastructure and real estate funds. Level 3 inputs are used to estimate the fair value of the non-controlling interest obligation and the note receivable. 4. ACCOUNTS RECEIVABLE Effective Date Company Effective Date Amendments to IFRS 9 and IFRS 7 Classification and measurement of financial instruments January 1, 2026 July 1, 2026 Amendments to IFRS 9 and IFRS 7 Power purchase arrangements January 1, 2026 July 1, 2026 IFRS 1, IFRS 7, IFRS 9, IFRS 10, IAS 7 Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026 July 1, 2026 IFRS 19 Subsidiaries without public accountability: disclosures January 1, 2027 July 1, 2027 Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency January 1, 2027 July 1, 2027 Amendments to IFRS S2 Amendments to Greenhouse Gas Emissions Disclosures January 1, 2027 July 1, 2027 New or Revised Pronouncement Dec. 31, June 30, 2025 2025 Trade receivables 23,807 $ 31,838 $ Due from related parties 16,534 19,523 Other 2,990 3,724 43,331 $ 55,085 $ 8 5. INVENTORIES The cost of inventory recognized as an expense and included in cost of goods sold during the three and six months ended December 31, 2025 was $29,538 and $63,687 (2024 - $26,457 and $54,779). During the three and six months ended December 31, 2025 there were write-downs of $756 and $1,573 (2024 - $80 and $344) on inventory as a result of net realizable value being lower than cost. No inventory write-downs recognized in previous periods were reversed. 6. NOTE RECEIVABLE --- Sale of Ace Hill and Liberty Village Brand Trademarks On October 6, 2025, Corby’s subsidiary ABG sold trademarks and associated inventory of certain non-core brands, Ace Hill and Liberty Village, to an unrelated third party Twenty Bench Brewing Company (“TBBC”), recognizing a gain of $393, net of transaction related expenses. The gain has been presented in Earnings from Operations within the interim condensed consolidated financial statements and included in other income (expense). The fair value of proceeds totaled $4,640 and included $3,000 in cash, a note receivable of $889, and other receivables of $751. The note and other receivables are to be paid from TBBC’s future sales of Ace Hill and Liberty Village products, or within a maximum eighteen-month period. The fair value of proceeds was determined using a discounted cash flow model at the date of the transaction. During the fiscal year ending June 30, 2025, these assets were included in the Case Goods segment and contributed $3,304 to revenue and $994 to net earnings. The note receivable is non-interest bearing with a face value of $1,000. Subsequent to initial measurement of the note receivable at fair value, the Company has classified and measured this financial instrument at amortized cost, as it is held within a business model to collect contractual cash flows and those cash flows solely represent payments of principal. At December 31, 2025, the carrying amount of the note receivable is $742 and reflects its fair value. The fair value is estimated using the discounted cash flow model and is classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. The note receivable exposes the Group to credit risk. Management monitors the counterparty’s creditworthiness and assesses expected credit losses at each reporting date. 7. RIGHT OF USE ASSETS During the three- and six- month period ending December 31, 2025, Corby renewed and amended the existing lease agreement related to its executive offices which resulted in the recognition of a right-of-use asset and corresponding lease liability of $4,161 at December 31, 2025. The renewed and amended lease commences January 1, 2026 and has an initial term of 7 years. Dec. 31, June 30, 2025 2025 Raw materials 15,701 $ 15,064 $ Work-in-progress 61,777 62,155 Finished goods 26,885 24,238 104,363 $ 101,457 $ 9 8. INTANGIBLE ASSETS Long-term representation rights disposals reflect the impact of PR’s sale of certain wine brands which were included in the PR Representation Agreement. PR has reimbursed Corby for the unused portion of the up-front fee related to these brands. See Note 19 “Related Party Transactions” for further information. Trademark and licences disposals reflect the impact of the non-core brand trademarks sold on October 6, 2025, (see Note 6 “Note Receivable” for further information.) 9. CREDIT FACILITIES PAYABLE The Company, through its subsidiary ABG, has available a revolving operating facility authorized to a maximum of $15,000 and a non-revolving facility that is due on demand. At December 31, 2025 and June 30, 2025 the balances were as follows: During the three and six months ended December 31, 2025, interest expense on both facilities amounted to $43 and $116 (2024 - $155 and $334). The facilities are held by a Canadian chartered bank and accrue interest at a variable rate using methodologies based on the CORRA rate plus the applicable CORRA margin, or prime plus the applicable prime rate marg --- in. The applicable CORRA margin and the applicable prime rate margin are determined with reference to the Total Leverage Ratio of ABG. During the three and six months ended December 31, 2025, the Company made principal repayments of $nil and $1,505 (2024- $5,254 and $15,600) on the non-revolving credit facility reducing the outstanding balance to $nil. The Company may prepay outstanding amounts at any time, without penalty. The facilities are secured by a general security agreement constituting a first-priority encumbrance on select present and future property and assignment of all proceeds under ABG’s insurance policies. In connection with the closing of its acquisition of ABG, Corby signed a guarantee with respect to amounts owing under both facilities. ABG is subject to covenants and was in compliance with all covenants as at December 31, 2025. Covenants are used to determine the appropriate interest rate margin on the various credit facilities under the agreements. 10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, Dec. 31, 2025 Additions Disposals Amortization 2025 Long-term representation rights 12,966 $ - $ (3,289) $ (4,174) $ 5,503 $ Trademarks and licences 65,111 - (3,091) - 62,020 Distribution rights 330 - - (83) 247 IT Software 1,688 67 - (319) 1,436 80,095 $ 67 $ (6,380) $ (4,576) $ 69,206 $ Movements During the Period Dec. 31, June 30, 2025 2025 Operating line of credit (available up to $15,000) - $ 3,477 $ Non-revolving credit facility - 1,505 Dec. 31, June 30, 2025 2025 Trade payables and accruals 41,079 $ 46,926 $ Due to related parties 22,682 13,302 Other 2,489 3,821 66,250 $ 64,049 $ 10 11. LONG TERM DEBT On June 12, 2023, Corby entered into a loan agreement with PR with a total available credit amount of $120,000. The loan provided Corby with the required funding to complete the ABG acquisition which closed on July 4, 2023. Details of the term loan payable to PR are as follows: The term loan payable is a related party transaction, please see Note 19 “Related Party Transactions” for further information. The term loan payable bears interest at a fixed interest rate of 5.43%. Interest is payable on a quarterly basis at the end of each quarter. The term loan along with any accrued interest is due in full at the maturity date, June 20, 2033. Corby has the option to voluntarily make partial or total repayment at any time before the maturity date. During the three and six months ended December 31, 2025, the Company made principal repayments of $6,000 (2024 - $6,000 and $12,000) and incurred interest of $1,384 and $2,780 (2024 - $1,540 and $3,160). 12. NON-CONTROLLING INTEREST OBLIGATION On September 26, 2025, Corby exercised the first of its two call options provided for in the shareholder agreement between Corby, Ace Beverage Holdco Inc. (“ABHI”), the founders and the minority shareholders of ABHI dated July 4, 2023, to purchase an additional 5% of shares of ABHI, increasing its ownership stake to 95% of the issued and outstanding shares. The call option was paid to the founders and minority shareholders in the amount of $9,285 on October 10, 2025, and resulted in a fair value adjustment of $530 which was recorded as a reduction in Corby’s net earnings. The non-controlling interest obligation for the period is as follows: 13. REVENUE The Company’s revenue consists of the following streams: Dec. 31, June 30, Maturity Date Rate 2025 2025 Term loan payable June 20, 2033 5.43% 96,000 $ 102,000 $ Dec. 31, June 30, 2025 2025 N --- on-controlling interest obligation, beginning of period 18,232 $ 16,206 $ Exercise of option during the period (9,285) - Fair value adjustment of obligation due to exercise of option 530 - 9,477 $ 16,206 $ Accretion of obligation during the period 592 2,026 Non-controlling interest obligation, end of period 10,069 $ 18,232 $ Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2025 2024 2025 2024 Case goods sales 58,206 $ 52,050 $ 124,445 $ 108,555 $ Commissions, net 7,788 8,443 16,004 16,110 Other services 920 1,159 1,858 2,101 66,914 $ 61,652 $ 142,307 $ 126,766 $ Three months ended Six months ended 11 Commissions for the three and six months ended December 31, 2025 are shown net of amortization of long-term representation rights of $1,834 and $4,174 (2024 - $2,593 and $5,186). Other services include revenues incidental to the manufacture of case goods, such as logistics fees and miscellaneous bulk whisky sales. 14. OTHER INCOME (EXPENSE) The Company’s other income (expense) consists of the following amounts: 15. NET FINANCIAL INCOME AND EXPENSE The Company’s financial income (expense) consists of the following amounts: 16. EXPENSES BY NATURE Earnings from operations include depreciation and amortization, as well as personnel expenses, as follows: Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2025 2024 2025 2024 Foreign exchange (loss) gain (30) $ (48) $ (79) $ (35) $ Gain on sale of brand trademarks (see Note 6) 393 - 393 - Licensing fees - 12 - 186 Other 8 - (14) 4 371 $ (36) $ 300 $ 155 $ Six months ended Three months ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2025 2024 (1) 2025 2024 (1) Interest income on deposits in cash management pools 62 $ 247 $ 186 $ 639 $ Other interest income 8 12 8 25 70 $ 259 $ 194 $ 664 $ Interest expense on bank indebtedness, loans and lease liabilities (1,479) $ (1,756) $ (2,981) $ (3,594) $ Interest on non-controlling interest obligation (296) (507) (592) (1,013) Net financial impact of pensions (46) (38) (92) (75) Other interest expense (28) (30) (57) (111) (1,849) $ (2,331) $ (3,722) $ (4,793) $ (1) Certain comparative information has been reclassified to conform to the current year's presentation. Three months ended Six months ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2025 2024 2025 2024 Depreciation of property and equipment 812 $ 801 $ 1,621 $ 1,612 $ Depreciation of right-of-use assets 584 560 1,103 932 Amortization of intangible assets 2,076 2,768 4,576 5,523 Salary and payroll costs 9,146 8,723 18,553 18,128 Expenses related to pensions and benefits 149 147 298 294 Three months ended Six months ended 12 17. NET CHANGE IN NON-CASH WORKING CAPITAL BALANCES 18. DIVIDENDS On February 11, 2026 subsequent to the quarter ended December 31, 2025, the Board of Directors declared its regular quarterly dividend of $0.24 per common share, to be paid on March 11, 2026, to shareholders of record as at the close of business on February 25, 2026. 19. RELATED PARTY TRANSACTIONS Transactions with parent, ultimate parent, and affiliates The majority of Corby’s issued and outstanding Voting Class A shares are owned by HWSL. HWSL is a wholly- owned subsidiary of PR. Therefore, HWSL is Corby’s parent and PR is Corby’s ultimate parent. Affiliated companies are subsidiaries, which are controlled by Corby’s parent and/or ultimate parent. Corby engages in a significant number of transactions with its parent company, its ultimate parent and various affiliates. Specifically, Corby renders services to its parent company, its ultimate parent, and aff --- iliates for the marketing and sale of beverage alcohol products in the Canadian market. Furthermore, Corby outsources the large majority of its distilling, maturing, storing, blending, bottling and related production activities to its parent company, HWSL. A significant portion of Corby’s bookkeeping, recordkeeping services, data processing and other administrative services are also outsourced to its parent company, HWSL. Significant transactions with the parent company, ultimate parent and affiliates are subject to Corby’s related party transaction policy, which requires such transactions to undergo an extensive review and require approval from an Independent Committee of the Board of Directors. The companies operate under the terms of agreements that initially became effective on September 29, 2006 (the “2006 Agreements”). These agreements provide the Company with the exclusive right to represent PR’s brands in the Canadian market, as well as providing for the continuing production of certain Corby brands by PR at its production facility in Windsor, Ontario. Certain officers of Corby have been appointed as directors and officers of PR’s North American entities, as approved by Corby’s Board of Directors. The 2006 Agreements have been amended and renewed, as follows: • On August 26, 2015, Corby entered into an agreement with PR and certain affiliates amending the September 29, 2006 Canadian representation agreements, pursuant to which Corby agreed to provide more specialized marketing, advertising and promotion services for the PR and affiliate brands under the applicable representation agreements in consideration of an increase to the rate of commission payable to Corby by such entities. • On November 11, 2015, Corby and PR entered into agreements for the continued production and bottling of Corby`s owned-brands by PR at the HWSL production facility in Windsor, Ontario, for a 10- year term commencing September 30, 2016. On the same date, Corby and PR entered into an administrative services agreement, under which Corby agreed to continue to manage certain of PR’s business interests in Canada, with a similar term and commencement date. Corby’s role managing the HWSL production facility ended on June 30, 2020 but the rest of the services contemplated by the administrative services agreement continue to be provided and are governed by that agreement. Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2025 2024 2025 2024 Accounts receivable 9,829 $ 7,650 $ 12,074 $ 7,464 $ Inventories (2,246) 1,531 (3,860) 1,551 Prepaid expenses (114) (75) (502) 58 Accounts payable and accrued liabilities 10,998 7,189 2,202 (4,112) 18,467 $ 16,295 $ 9,914 $ 4,961 $ Three months ended Six months ended 13 On September 24, 2020, Corby renewed its exclusive right to represent PR’s brands in Canada for a further five years and three months, effective July 1, 2021 until September 29, 2026, with a potential for automatic renewal for a further three years thereafter, subject to the achievement of performance criteria (the “2021 Agreement”). The end of the term of the new Canadian representation agreement aligns with those of existing production and administrative services agreements with PR, renewed in 2016. The 2021 Agreement required a payment of an up-front fee of $54,450 which was paid September 28, 2021, which Corby funded through its deposits in cash management pools. Since the 2021 Agreement was a related party transaction, the agreement was approved by the Independent Com --- mittee of the Corby Board of Directors, in accordance with Corby’s related party transaction policy. On September 24, 2025, the 2021 Agreement was amended to provide for continued discussion and negotiation concerning renewal. The Company and the Corby Board of Directors are actively engaged in ongoing discussions with PR related to the renewal of the 2006 agreements, including the representation, services, distillate, and co- pack agreements. PR also represents certain Corby-owned brands in the United Kingdom. On March 21, 2016, the Company entered into an agreement with Pernod Ricard UK Ltd. (“PRUK”), an affiliated company, which provides PRUK the exclusive right to represent Lamb’s rum in Great Britain effective July 1, 2016. On March 28, 2019 the agreement was amended to include Ungava Gin. The agreement was amended again on March 21, 2021 to modify the list of products represented by PRUK and to extend the term of the agreement for a five-year period ending June 30, 2026. On July 17, 2024, PR announced the sale of its international strategic wine brands to Australian Wine Holdco Limited, which closed effective on April 30, 2025. The transaction includes the sale of a wide portfolio of international wine brands owned and produced by Pernod Ricard Winemakers from three origins including Jacob’s Creek® from Australia; Stoneleigh®, Brancott Estate® from New Zealand; and Campo Viejo® from Spain. Corby continued to represent these brands during a transition period until August 31, 2025 under the same terms of the PR Representation agreement. The affected brands contributed $4,250 to Net Earnings during the year ended June 30, 2025. Transactions between Corby and its parent, ultimate parent and affiliates during the period are as follows: Balances outstanding with related parties are due within 60 days, are to be settled in cash and are unsecured. During the three and six months ended December 31, 2025, the Company paid interest of $1,384 and $2,780 (2024 - $1,540 and $3,160) on its long-term debt payable to PR. Deposits in cash management pools Corby participates in a cash pooling arrangement under the Mirror Netting Service Agreement together with PR’s other Canadian affiliates, the terms of which are administered by Citibank N.A. The Mirror Netting Service Agreement acts to aggregate each participant’s net cash balance for the purposes of having a centralized cash management function for all of PR’s Canadian affiliates, including Corby. Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2025 2024 2025 2024 Sales to related parties Commissions - parent, ultimate parent and affiliated companies 8,056 $ 10,887 $ 18,129 $ 21,070 $ Products for resale at an export level - affiliated companies 4,076 2,993 7,499 5,483 Bulk spirits - parent 8 9 8 9 12,140 $ 13,889 $ 25,636 $ 26,562 $ Cost of goods sold, purchased from related parties Distilling, blending, and production services - parent and affiliated companies 7,863 $ 6,852 $ 14,909 $ 13,767 $ Administrative services purchased from related parties Marketing, selling and administration services - parent and affiliated companies 1,173 $ 986 $ 2,105 $ 2,020 $ Three months ended Six months ended 14 As a result of Corby’s participation in this agreement, Corby’s credit risk associated with its deposits in cash management pools is contingent upon PR’s credit rating. PR’s credit rating as at February 11, 2026, as published by Standard & Poor’s and Moody’s, was BBB+ and Baa1, respectively. PR compensates Corby for --- the benefit it receives from having the Company participate in the Mirror Netting Service Agreement by paying interest to Corby based upon the 30-day CORRA rate plus 0.75%. During the three and six months ended December 31, 2025, Corby earned interest income of $62 and $186 from PR (2024 – $247 and $639). Corby has the right to terminate its participation in the Mirror Netting Services Agreement at any time, subject to five days’ written notice. 20. SEGMENT INFORMATION Corby has two reportable segments: Case Goods and Commissions. Corby’s Case Goods segment derives its revenue from the production and distribution of its owned beverage alcohol brands. Corby’s portfolio of owned- brands includes some of the most renowned and respected brands in Canada, such as J. P. Wiser’s Canadian whisky, Lamb’s rum, Polar Ice vodka, McGuinness liqueurs, and Cottage Springs and Nude RTD beverages. Corby’s Commissions segment earns commission income from the representation of non-owned beverage alcohol brands in Canada. Corby represents leading international brands such as ABSOLUT vodka, Chivas Regal, The Glenlivet and Ballantine’s Scotch whiskies, Jameson Irish whiskey, Beefeater gin, Malibu rum, Kahlúa liqueur, Mumm champagne, and Jacob’s Creek and Wyndham Estate wines. The Commissions segment’s financial results are fully reported as “Commissions” in Note 13 of the interim condensed consolidated financial statements. Commission revenue is reported net of the amortization of the Long- term Representation Rights which are included in Intangible assets. Amortization for the three and six months ended December 31, 2025, was $1,834 and $4,174 (2024 – $2,593 and $5,186). A table detailing operational results by segment has not been provided as no additional meaningful information would result. 21. CONTINGENCY During November 2023, the Liquor Control Board of Ontario (“LCBO”), one of Corby's customers, advised suppliers that it will be enforcing a pricing term included in its standard purchase terms and conditions that requires suppliers to ensure prices sold to the LCBO are the same or lower than prices sold to any other customer in Canada, which is in contradiction to other pricing policies imposed by the LCBO, particularly “minimum pricing” that increased minimum retail prices every year prior to the elimination of such policy in April 2025. The LCBO levied penalties on suppliers for sales beginning April 2023. For the fiscal year ended June 30, 2024, Corby recorded expected penalties related to the period April 2023 through June 30, 2024, of which $1,104 remains accrued and included in accounts payable and accrued liabilities at December 31, 2025. In addition, the LCBO threatened to calculate penalties on sales not in compliance for the period before April 2023. Corby cannot quantify the potential charge and no provision has been recorded in these financial statements for any exposure before April 2023. Corby believes a retroactive charge back of this nature would not be enforceable. Corby, together with a collective of spirits suppliers representing almost 70% of the spirits products sold in Ontario, filed a court application with the Ontario Superior Court of Justice for court orders declaring that the LCBO’s pricing term is of no force and effect or, alternatively, cannot be enforced retroactively, and that the LCBO must release any amounts set off based on its enforcement. The matter was heard by the Commercial List court in June 2025 with a decisio --- n anticipated during fiscal year 2026.