SEDAR Interim Financial Statements

NanoXplore Inc. For the three and six-month periods ended December 31, 2025 and 2024 UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS As at December 31, 2025 As at June 30, 2025 (Unaudited - Expressed in Canadian dollars) $ $ Assets Current assets Cash and cash equivalents 30,144,435 18,587,960 Accounts receivable and contract asset 22,704,489 20,799,450 Inventory 15,984,834 16,718,702 Prepaid expenses and other assets 1,625,344 1,575,255 70,459,102 57,681,367 Non-current assets Lease deposits 250,797 250,187 Equipment deposits 5,343,954 4,462,889 Right-of-use assets [Note 3a] 18,369,255 6,130,403 Property, plant and equipment [Note 3b] 67,162,939 65,609,478 Intangible assets [Note 4] 11,640,830 11,959,491 Goodwill 1,919,673 1,919,673 Deferred tax assets 4,200,677 3,188,390 Total assets 179,347,227 151,201,878 Liabilities and Shareholders' Equity Current liabilities Operating loans [Note 5] 693,184 857,750 Accounts payable and accrued liabilities 12,849,736 20,610,222 Income taxes payable — 850,251 Contract liability 250,838 1,890,709 Current portion of lease liability [Note 5] 3,564,025 3,430,404 Current portion of long-term debt [Note 5] 4,392,042 2,116,911 21,749,825 29,756,247 Non-current liabilities Defined benefit liabilities 637,875 941,466 Lease liability [Note 5] 26,030,689 14,018,178 Long-term debt [Note 5] 9,530,376 2,196,013 Deferred tax liabilities 4,158,451 4,934,852 Total liabilities 62,107,216 51,846,756 Shareholders’ equity Share capital [Note 6] 207,319,700 182,683,203 Reserve 7,651,719 7,290,752 Foreign currency translation reserve 271,889 95,323 Deficit (98,003,297) (90,714,156) Total shareholders' equity 117,240,011 99,355,122 Total liabilities and shareholders' equity 179,347,227 151,201,878 See accompanying notes to unaudited condensed interim consolidated financial statements Approved on behalf of the Board of Directors Rocco Marinaccio Rocco Marinaccio Joseph G. Peter Joseph G. Peter Consolidated Statements of Financial Position 1 2025 2024 2025 2024 (Unaudited - Expressed in Canadian dollars) $ $ $ $ Revenues Revenues from customers 26,928,115 32,636,947 49,915,032 65,964,016 Other income 652,175 483,939 1,107,909 822,284 27,580,290 33,120,886 51,022,941 66,786,300 Cost of sales and expenses Cost of sales 21,145,796 25,685,206 40,167,343 52,055,110 Research and development expenses 1,010,755 1,332,451 2,222,178 2,464,044 Selling, general and administrative expenses 5,083,384 5,116,179 9,723,166 10,195,797 Share-based compensation expenses 271,421 366,182 475,967 883,718 Depreciation (production) 2,284,743 1,645,083 4,058,055 3,265,264 Depreciation (other) 366,407 680,939 1,074,042 1,336,623 Amortization 481,814 469,512 956,183 935,884 Foreign exchange 681,567 201,920 447,619 232,002 31,325,887 35,497,472 59,124,553 71,368,442 Operating loss (3,745,597) (2,376,586) (8,101,612) (4,582,142) Interest on operating loans and long-term debt (102,534) (167,523) (157,267) (211,908) Interest accretion on lease liability (473,912) (125,011) (822,221) (368,773) Interest revenue 134,854 174,353 201,085 423,658 Loss before income taxes (4,187,189) (2,494,767) (8,880,015) (4,739,165) Current income tax expense (468,687) (508,357) (506,686) (1,016,451) Deferred income tax recovery 819,470 108,202 1,773,965 141,682 350,783 (400,155) 1,267,279 (874,769) Loss (3,836,406) (2,894,922) (7,612,736) (5,613,934) Other comprehensive income (loss) Items that may be subsequently reclassified to profit and loss: Exchange diffe --- rences on translation of foreign subsidiaries 368,759 (784,949) 176,566 (588,894) Items that will not be reclassified to profit and loss: Retirement benefits – Net actuarial gain (loss) 191,490 34,021 323,595 (113,542) Total comprehensive loss (3,276,157) (3,645,850) (7,112,575) (6,316,370) Loss per share Basic and diluted (0.02) (0.02) (0.04) (0.03) Weighted average number of common shares outstanding 177,922,145 170,608,431 174,265,288 170,608,431 See accompanying notes to unaudited condensed interim consolidated financial statements In light of the loss recognized for the periods, stock options were excluded from the calculation of diluted loss per share due to their anti-dilutive effect. Consolidated Statements of Loss and Comprehensive Loss Three-month periods ended December 31, Six-month periods ended December 31, 2 Number of common Reserve Deficit (Unaudited - Expressed in Canadian dollars) shares $ $ $ $ $ Balance as at June 30, 2024 170,608,431 182,683,203 5,855,387 (162,900) (80,725,818) 107,649,872 Loss — — — — (5,613,934) (5,613,934) Other comprehensive loss — — — (588,894) (113,542) (702,436) Comprehensive loss — — — (588,894) (5,727,476) (6,316,370) Share-based compensation — — 883,718 — — 883,718 Balance as at December 31, 2024 170,608,431 182,683,203 6,739,105 (751,794) (86,453,294) 102,217,220 Loss — — — — (4,043,186) (4,043,186) Other comprehensive income (loss) — — — 847,117 (217,676) 629,441 Comprehensive loss — — — 847,117 (4,260,862) (3,413,745) Share-based compensation — — 551,647 — — 551,647 Balance as at June 30, 2025 170,608,431 182,683,203 7,290,752 95,323 (90,714,156) 99,355,122 Loss — — — — (7,612,736) (7,612,736) Other comprehensive income — — — 176,566 323,595 500,161 Comprehensive loss — — — 176,566 (7,289,141) (7,112,575) Private placement (net of issuing costs of $1,441,343) [Note 6] 10,720,350 24,287,497 — — — 24,287,497 Exercise of stock options [Note 6] 100,000 349,000 (115,000) — — 234,000 Share-based compensation — — 475,967 — — 475,967 Balance as at December 31, 2025 181,428,781 207,319,700 7,651,719 271,889 (98,003,297) 117,240,011 See accompanying notes to unaudited condensed interim consolidated financial statements Consolidated Statements of Changes in Shareholders’ Equity Foreign currency translation reserve Shareholders’ equity Share capital 3 2025 2024 (Unaudited - Expressed in Canadian dollars) $ $ Cash flows from operating activities Loss (7,612,736) (5,613,934) Items not affecting cash: Depreciation and amortization 6,088,280 5,537,771 Share-based compensation expenses 475,967 883,718 Interest accretion on lease liability 822,221 368,773 Interest accretion on long-term debt 27,559 37,058 Deferred income tax recovery (1,773,965) (141,682) Difference between amounts paid for employee benefits and current year expenses 11,989 3,899 Net change in fair value of foreign exchange derivatives 192,331 1,644,244 Unrealized foreign exchange 371,644 (1,354,408) Changes in non-cash operating working capital items: Accounts receivable and contract asset (2,089,888) 2,331,574 Inventory 764,186 842,554 Prepaid expenses and other assets (46,207) 124,529 Accounts payable and accrued liabilities (7,417,031) (6,398,931) Income taxes payable (850,251) 619,505 Contract liability (1,639,871) 310,110 (12,675,772) (805,220) Cash flows from financing activities Issuance of common shares 25,728,840 — Issuing costs (1,441,343) — Exercise of stock options 234,000 — Variation of operating loans (173,296) (635,640) Pr --- operty, plant and equipment financed through the leasing facility — 1,677,242 Issuance of long-term debt 10,700,400 — Repayment of lease liability (2,434,883) (1,984,697) Repayment of long-term debt (1,122,733) (952,900) 31,490,985 (1,895,995) Cash flows from investing activities Additions to intangible assets (643,788) (185,952) Additions to property, plant and equipment (5,753,229) (2,746,061) Variation of equipment deposits (875,094) (2,139,838) Disposal of property, plant and equipment — 2,285,764 (7,272,111) (2,786,087) Change in cash and cash equivalents 11,543,102 (5,487,302) Net effect of currency exchange rate on cash 13,373 33,226 Cash and cash equivalents, beginning of period 18,587,960 26,504,880 Cash and cash equivalents, end of period 30,144,435 21,050,804 Interest on operating loans, long-term debt and lease liability paid 979,488 580,681 Additions to property, plant and equipment included in accounts payable and accrued liabilities 165,762 242,314 See accompanying notes to unaudited condensed interim consolidated financial statements Consolidated Statements of Cash Flows Six-month periods ended December 31, 4 NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 5 [Unaudited – Unless specified otherwise, amounts are expressed in Canadian dollars] 1. NATURE OF OPERATIONS NanoXplore Inc., and its subsidiaries (together “NanoXplore” or the “Corporation”), is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in industrial markets. Also, the Corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. The Corporation is also a silicon-graphene-enhanced Li-ion battery manufacturer for the energy storage, industrial and defense markets. The Corporation was formed by amalgamation under the Canada Business Corporations Act by certificate of amalgamation dated September 21, 2017 and is headquartered at 4500 Thimens Blvd, Montreal, QC, Canada. NanoXplore is listed on the Toronto Stock Exchange (“TSX”) and traded under “GRA” and is also listed on the OTCQX and traded under “NNXPF”. The Corporation has two reportable segments based on products: Advanced materials, plastics and composite products and Battery Cells and Materials [Note 9]. The unaudited condensed interim consolidated financial statements of the Corporation for the three and six-month periods ended December 31, 2025 and 2024 were reviewed, approved and authorized for issue by the Corporation’s Board of Directors on February 10, 2026. Economic context The economic context, strongly impacted by the uncertainty surrounding the evolution of trade relations with the United States, continues to have a significant impact on the judgments made as well as on the estimates and assumptions formulated by management for the purposes of preparing the consolidated financial statements for the three and six-month periods ended December 31, 2025. The judgments, estimates and assumptions that will be formulated for the coming periods will be reassessed in light of the evolution of this highly uncertain context and could therefore differ from those that were formulated for the preparation of the consolidated financial --- statements for the three and six-month periods ended December 31, 2025. The Corporation is closely monitoring the evolution of the situation and its impact on its results and its financial position. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The unaudited condensed interim consolidated financial statements of the Corporation and its subsidiaries for the three and six- month periods ended December 31, 2025 and 2024 have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS accounting standards”), and applicable to the preparation of interim financial statements including IAS 34, Interim Financial Reporting. These unaudited condensed interim consolidated financial statements are presented in Canadian dollars, the Corporation’s functional currency, except where otherwise indicated. Each entity of the Corporation determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The significant accounting judgments, estimates and assumptions used in these unaudited condensed interim consolidated financial statements are consistent with those disclosed in the most recent audited annual consolidated financial statements for the year ended June 30, 2025. These unaudited condensed interim consolidated financial statements have been prepared on a going concern basis, at historical cost, except for financial assets and liabilities classified as financial assets/liabilities at fair value through profit or loss and measured at fair value. Management considers that the fair value of financial assets and liabilities recorded in the financial statements approximates the carrying amount. NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 6 BASIS OF CONSOLIDATION The unaudited condensed interim consolidated financial statements include the accounts of the Corporation and its subsidiaries. The subsidiaries are using consistent accounting policies and the same reporting period as the parent company. All intercompany transactions, balances and unrealized gains or losses have been eliminated. The Corporation has the following subsidiaries: Subsidiaries Reporting segment CEBO Injections SA (“CEBO”), based in Switzerland, with an equity interest of 100% [2024 – NanoXplore Switzerland Holding SA (“NanoXplore Switzerland”), based in Switzerland, with an equity interest of 100%. NanoXplore Switzerland holds 100% of CEBO. These companies have been merged as at July 1st, 2024] Advanced Materials, Plastics and Composite Products NanoXplore Holdings USA, Inc. (“NanoXplore Holdings USA”), based in the United States, with an equity interest of 100% [2024 – 100%]. NanoXplore Holdings USA holds 100% of NanoXplore USA, Inc. and of RMC Advanced Technologies Inc. [2024 – 100%]. Advanced Materials, Plastics and Composite Products Sigma Industries Inc. (“Sigma”), based in Canada, with an equity interest of 100% [2024 – 100%]. Sigma has two active wholly owned subsidiaries; Faroex Ltd., based in Manitoba, and Rene Composite Materials Ltd., based in Quebec. [2024 – 100%] Advanced Materials, Plastics and Composite Products Canuck Compounders Inc. (“Canuck”), based in Can --- ada, with an equity interest of 100% [2024 – 100%] Advanced Materials, Plastics and Composite Products VoltaXplore Inc. (“VoltaXplore”), based in Canada, with an equity interest of 100% [2024 – 100%] Battery Cells and Materials STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED STANDARDS ADOPTED WITH AN EFFECT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS The same accounting policies and methods of computation are followed in these unaudited condensed interim consolidated financial statements as compared with the most recent annual consolidated financial statements. The unaudited condensed interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes for the year ended June 30, 2025. There are no amendments to accounting standards which are relevant to the Corporation as of July 1, 2025. THE FOLLOWING STANDARDS AND AMENDMENTS TO EXISTING STANDARDS HAVE BEEN PUBLISHED, AND THEIR ADOPTION IS MANDATORY FOR FUTURE ACCOUNTING PERIODS The IASB has issued new standards and amendments to existing standards which are applicable to the Corporation in future periods. IFRS 18 – Presentation and Disclosure in Financial Statements On April 9, 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements to improve reporting of financial performance. IFRS 18 replaces IAS 1 Presentation of Financial Statements. It carries forward many requirements from IAS 1 unchanged. IFRS 18 applies for annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The new Accounting Standard introduces significant changes to the structure of a corporation's income statement and new principles for aggregation and disaggregation of information. The main impacts of the new Accounting Standard include:  introducing a newly defined "operating profit" subtotal and a requirement for all income and expenses to be allocated between three distinct categories based on the company's main business activities: Operating, investing and financing;  disclosure about management performance measures; and,  adding new principles for aggregation and disaggregation of information.  requiring the cash flow statement to start with operating profit; and  removal of the accounting policy choice for presentation of dividend and interest. Management has not yet determined the impact, if any, for the Corporation. NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 7 Amendments to IFRS 9 – Financial Instruments and IFRS 7 – Financial Instruments: Disclosures In May 2024, amendments to IFRS 9, “Financial Instruments” and IFRS 7, “Financial Instruments: Disclosures” were issued. The main impacts of the amendments include:  clarification of the timing of recognition and derecognition for a financial asset or financial liability, including clarifying that a financial liability is derecognized on the settlement date. In addition to these clarifications, the amendments introduce an accounting policy choice to derecognize financial liabilities settled using an electronic payment system before the settlement date, if criteria are met;  clarifications regarding the classification of financial assets, including those with fe --- atures linked to environmental, social and corporate governance and contractual cash flows that are solely payments of principal and interest on the principal amount outstanding; and  additional disclosures are required for financial instruments with contingent features and investments in equity instruments classified at fair value through other comprehensive income. These amendments are effective for annual reporting periods beginning on or after January 1, 2026. Early adoption is permitted, with an option to early adopt only the amendments to the classification of financial assets. Management has not yet determined the impact, if any, for the Corporation. 3. PROPERTY, PLANT AND EQUIPMENT AND RIGHT-OF-USE ASSETS a) RIGHT-OF-USE ASSETS Six-month period ended December 31, 2025 Year ended June 30, 2025 $ $ Balance at the beginning 6,130,403 7,652,182 Additions 13,852,763 405,132 Depreciation (1,475,125) (1,988,439) Effect of foreign exchange differences (138,786) 61,528 Balance at the end 18,369,255 6,130,403 Balance at the end Cost 29,544,195 15,830,218 Accumulated amortization (11,174,940) (9,699,815) Net book value 18,369,255 6,130,403 The majority of right-of-use assets are leases of land and building. NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 8 b) PROPERTY, PLANT AND EQUIPMENT Land & Building Production equipment Leasehold improvements Laboratory, computer, office equipment and rolling stock Total $ $ $ $ $ Balance as at July 1, 2024 10,430,238 38,477,994 2,643,564 8,652,096 60,203,892 Additions 1,170,905 13,016,408 139,203 828,104 15,154,620 Disposals – (2,285,764) – – (2,285,764) Depreciation (474,968) (4,875,680) (468,433) (1,628,170) (7,447,251) Effect of foreign exchange differences – (33,233) (3,598) 20,812 (16,019) Balance as at June 30, 2025 11,126,175 44,299,725 2,310,736 7,872,842 65,609,478 Additions 162,805 5,200,522 27,537 11,428 5,402,292 Depreciation (278,497) (2,316,645) (239,354) (822,476) (3,656,972) Effect of foreign exchange differences – (190,395) (2,529) 1,065 (191,859) Balance as at December 31, 2025 11,010,483 46,993,207 2,096,390 7,062,859 67,162,939 As at June 30, 2025 Cost 13,609,024 67,671,247 4,227,702 13,467,297 98,975,270 Accumulated depreciation (2,482,849) (23,371,522) (1,916,966) (5,594,455) (33,365,792) Net book value 11,126,175 44,299,725 2,310,736 7,872,842 65,609,478 As at December 31, 2025 Cost 13,771,829 72,738,493 4,253,469 13,479,471 104,243,262 Accumulated depreciation (2,761,346) (25,745,286) (2,157,079) (6,416,612) (37,080,323) Net book value 11,010,483 46,993,207 2,096,390 7,062,859 67,162,939 The majority of property, plant and equipment is pledged as security for the credit facilities (Note 5). Additions of production equipment under lease during the six-month period ended December 31, 2025 amounted to nil [year ended June 30, 2025 – $7,821,039]. As at December 31, 2025, there are $145,122, $5,843,549 and nil of building, production equipment and computer. respectively, that are not yet available for use and for which depreciation has not started [As at June 30, 2025 – $2,316,774, $7,063,624 and $97,599]. NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CA --- NADIAN DOLLARS] ____________________________________________________________________________________________________ 9 4. INTANGIBLE ASSETS Customer relationship Technology Patents, licenses and software Total $ $ $ $ Balance as at July 1, 2024 4,746,379 5,852,834 2,655,188 13,254,401 Additions – – 571,269 571,269 Amortization (837,794) (668,895) (376,766) (1,883,455) Effect of foreign exchange differences 13,650 – 3,626 17,276 Balance as at June 30, 2025 3,922,235 5,183,939 2,853,317 11,959,491 Additions – – 643,788 643,788 Amortization (420,473) (334,448) (201,262) (956,183) Effect of foreign exchange differences 960 – (7,226) (6,266) Balance as at December 31, 2025 3,502,722 4,849,491 3,288,617 11,640,830 As at June 30, 2025 Cost 8,592,380 6,688,953 4,084,835 19,366,168 Accumulated depreciation (4,670,145) (1,505,014) (1,231,518) (7,406,677) Net book value 3,922,235 5,183,939 2,853,317 11,959,491 As at December 31, 2025 Cost 8,593,340 6,688,953 4,721,397 20,003,690 Accumulated depreciation (5,090,618) (1,839,462) (1,432,780) (8,362,860) Net book value 3,502,722 4,849,491 3,288,617 11,640,830 As at December 31, 2025, there is $190,631 of software that is not yet available for use and for which amortization has not started [As at June 30, 2025 – $646,045]. 5. CREDIT FACILITIES Maturity Effective interest rate As at December 31, 2025 As at June 30, 2025 % $ $ Operating loans, fixed and variable rates – Authorized amount of $10,693,184 2026 3.5% 693,184 857,750 Lease liability 2026 to 2032 2.4% to 8.2% 29,594,714 17,448,582 Long-term debt, fixed and variable rates 2027 to 2030 4.6% to 7.9% 13,922,418 4,312,924 44,210,316 22,619,256 Less: current portion of operating loans 693,184 857,750 Less: current portion of lease liability 3,564,025 3,430,404 Less: current portion of long-term debt 4,392,042 2,116,911 35,561,065 16,214,191 Under these agreements, the Corporation has agreed to respect certain conditions and financial ratios. As at December 31, 2025, all conditions and financial ratios were met. Several movable hypothecs on specific assets of the Corporation and its subsidiaries and on the universality of the Corporation's present and future, tangible and intangible assets have been given as security for these long-term debt and credit facilities. NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 10 a) LEASE LIABILITY The Corporation has the following leases related to equipment and building: As at December 31, 2025 As at June 30, 2025 $ $ Equipment [Note 3a, 3b] 8,279,819 8,697,046 Building [Note 3a] 21,314,895 8,751,536 Total lease liability 29,594,714 17,448,582 6. EQUITY On October 30, 2025, the Corporation completed a financing by way of a bought deal private placement of 10,720,350 common shares at a price of $2.40 per share for gross proceeds of $25,728,840. The aggregate issuance costs related to this issuance, including the commission, were $1,441,343 and paid in cash. During the six-month period ended December 31, 2025, 1,330,043 options were granted. These options have an exercise price of $2.21 with a vesting period between one year and three years and a half and expiration date between five and ten years from the grant date. The exercise price is based on the share price the day prior to the grant. Duri --- ng the six-month period ended December 31, 2025, 100,000 options were exercised resulting in cash proceeds of $234,000 and a transfer from “Reserve” to “Share capital” of $115,000. The weighted average share price on the date of exercise of the options was $2.77. 7. RELATED PARTY TRANSACTIONS Martinrea is a shareholder of the Corporation with significant influence. Subsidiaries of Martinrea purchased graphene-enhanced products and tooling products from the Corporation during the three and six-month period ended December 31, 2025 for an amount of $931,607 and $397,813 [2024 – $456,325 and $948,078]. As at December 31, 2025, an amount of $208,473 due by Martinrea is included in Accounts receivable and contract assets [As at June 30, 2025 – $182,038]. 8. COMMITMENTS As at December 31, 2025, the Corporation held forward exchange contracts to sell for a minimum of US$13.0 million and a maximum of US$20.4 million depending on the exchange rate of such derivative contracts. Rates vary from 1.348 to up to 1.433. The contracts are valid until June 2027. As at December 31, 2025, the carrying value of the derivative foreign currency forward exchange contracts of $7,482 is included in Accounts payable and accrued liabilities [As at June 30, 2025 – $184,849 in Accounts receivable and contract assets]. The Corporation has committed to purchase production equipment for a total amount of $7,020,325 of which $5,343,954 were paid and included in the consolidated statements of financial position as Equipment deposits as at December 31, 2025. NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 11 9. SEGMENTED DISCLOSURE The Corporation’s Chief Operating Decision Maker analyzes the information for the Corporation on two reporting segments, based on products: - Advanced Materials, Plastics and Composite Products: Provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. - Battery Cells and Materials: Provides silicon-graphene-enhanced Li-ion battery cells for the energy storage, industrial and defense markets. The accounting policies of the segments are the same as the accounting policies of the Corporation. REVENUES AND EXPENSES BY OPERATING SEGMENTS For the three-month period ended December 31, 2025 and 2024: 2025 2024 Advanced Materials, Plastics and Composite Products Battery Cells and Materials Total Advanced Materials, Plastics and Composite Products Battery Cells and Materials Total $ $ $ $ $ $ Revenues Revenues from customers 26,883,506 44,609 26,928,115 32,636,947 — 32,636,947 Other income 409,387 242,788 652,175 472,419 11,520 483,939 27,292,893 287,397 27,580,290 33,109,366 11,520 33,120,886 Cost of sales and expenses Cost of sales 21,145,796 — 21,145,796 25,685,206 — 25,685,206 Research and development expenses and Selling, general and administrative expenses 5,850,130 244,009 6,094,139 6,219,234 229,396 6,448,630 Share-based compensation expenses 271,421 — 271,421 366,182 — 366,182 Depreciation and amortization 2,719,849 413,115 3,132,964 2,372,625 422,909 2,795,534 Foreign exchange 678,094 3,473 681,567 204,402 (2,482) 201,920 30,665,290 660,597 31,325,887 34,847,649 649,823 35,497,472 Operating loss (3,372,397) (37 --- 3,200) (3,745,597) (1,738,283) (638,303) (2,376,586) Net interest expenses (432,824) (8,768) (441,592) (116,573) (1,608) (118,181) Loss before income taxes (3,805,221) (381,968) (4,187,189) (1,854,856) (639,911) (2,494,767) NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 12 For the six-month period ended December 31, 2025 and 2024: 2025 2024 Advanced Materials, Plastics and Composite Products Battery Cells and Materials Total Advanced Materials, Plastics and Composite Products Battery Cells and Materials Total $ $ $ $ $ $ Revenues Revenues from customers 49,788,028 127,004 49,915,032 65,964,016 — 65,964,016 Other income 668,401 439,508 1,107,909 780,943 41,341 822,284 50,456,429 566,512 51,022,941 66,744,959 41,341 66,786,300 Cost of sales and expenses Cost of sales 40,167,343 — 40,167,343 52,055,110 — 52,055,110 Research and development expenses and Selling, general and administrative expenses 11,350,877 594,467 11,945,344 12,012,819 647,022 12,659,841 Share-based compensation expenses 475,967 — 475,967 883,718 — 883,718 Depreciation and amortization 5,261,750 826,530 6,088,280 4,721,043 816,728 5,537,771 Foreign exchange 447,146 473 447,619 234,130 (2,128) 232,002 57,703,083 1,421,470 59,124,553 69,906,820 1,461,622 71,368,442 Operating loss (7,246,654) (854,958) (8,101,612) (3,161,861) (1,420,281) (4,582,142) Net interest expenses (762,781) (15,622) (778,403) (150,280) (6,743) (157,023) Loss before income taxes (8,009,435) (870,580) (8,880,015) (3,312,141) (1,427,024) (4,739,165) NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 [EXPRESSED IN CANADIAN DOLLARS] ____________________________________________________________________________________________________ 13