SEDAR Interim Financial Statements

Condensed Interim Consolidated Financial Statements For the three months ended December 31, 2025 and 2024 (Unaudited) UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, SSC Security Services Corp. discloses that its auditors have not reviewed the condensed interim consolidated financial statements for the three months ended December 31, 2025 and 2024. Page 2 (Unaudited, in Canadian dollars) ASSETS Current Cash and cash equivalents $ 8,567,950 $ 11,257,283 Accounts receivable 26,723,451 25,117,611 Contract assets 1,021,204 865,749 Inventories 248,115 232,601 Prepaid expenses 1,175,449 1,142,447 Mortgages and loans receivable 365,397 352,796 Other assets 966,875 966,875 $ 39,068,441 $ 39,935,362 Non-current Legacy contract assets $ 4,846,017 $ 4,846,017 Mortgages and loans receivable - 14,133 Property and equipment 5 6,827,384 6,979,919 Deferred income tax assets 2,385,756 2,417,680 Intangible assets 6 15,459,133 15,839,714 Goodwill 6 13,909,918 13,909,918 Total Assets $ 82,496,649 $ 83,942,743 LIABILITIES Current Accounts payable and accrued liabilities 7 $ 10,866,468 $ 11,455,087 Income tax payable 63,900 75,655 Obligations under lease 8 979,128 946,359 Cash-settled share-based payment liability 9 1,691,479 1,800,303 Contract liabilities 375,526 317,605 $ 13,976,501 $ 14,595,009 Non-current Obligations under lease 8 $ 4,504,700 $ 4,633,603 Cash-settled share-based payment liability 9 110,968 122,700 Deferred income tax liability 3,085,245 3,216,499 Total Liabilities $ 21,677,414 $ 22,567,811 EQUITY Share capital $ 76,089,364 $ 76,089,364 Contributed surplus 4,414,083 4,414,083 Deficit (19,684,212) (19,128,515) $ 60,819,235 $ 61,374,932 $ 82,496,649 $ 83,942,743 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements - Note "Laurie Powers", CPA, CA, ICD.D, Director As at September 30, 2025 "Douglas Emsley", Director ON BEHALF OF THE BOARD As at December 31, 2025 Page 3 (Unaudited, in Canadian dollars) Revenue 11 $ 33,535,764 $ 29,194,946 Cost of sales 28,428,448 24,386,545 Gross profit $ 5,107,316 $ 4,808,401 Corporate administration 12 4,083,061 4,479,951 Depreciation of property and equipment 5 580,974 544,142 Amortization of intangible assets 6 380,581 382,786 Income (loss) from operations $ 62,700 $ (598,478) Financing Interest income 59,918 139,868 Interest expense (115,220) (51,248) $ (55,302) $ 88,620 Other income Gain from legacy business - 1,402 Other (expense) income (6,412) 352,857 $ (6,412) $ 354,259 Net income (loss) before income tax $ 986 $ (155,599) Income tax expense (recovery) 13 8,754 (30,503) Net loss and comprehensive loss $ (7,768) $ (125,096) Basic loss per share 10 $ (0.00) $ (0.01) Fully diluted loss per share 10 $ (0.00) $ (0.01) - The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS Three months ended December 31, 2025 Three months ended December 31, 2024 Note Page 4 (Unaudited, in Canadian dollars) Operating activities Net loss $ (7,768) $ (125,096) Adjustments for non-cash items Depreciation of property and equipment 5 580,974 544,142 Amortization of intangible assets 6 380,581 382,786 Deferred share unit (recovery) expense (96,479) 130,425 Shar --- e appreciation rights (recovery) expense (24,077) 77,449 Share based compensation - 7,339 Income tax expense (recovery) 13 8,754 (30,503) Expected credit loss on mortgages and loans receivable 6,839 6,839 Interest income (59,918) (139,868) Interest expense 115,220 51,248 Interest received 76,888 218,343 Gain on mortgage buyouts - (1,402) Changes in working capital items 15 (2,340,509) (1,596,560) Income tax paid (119,646) (7,200) Interest paid 8 (115,221) (51,247) Cash applied to operating activities $ (1,594,362) $ (533,305) Investing activities Proceeds from repayment of mortgages and loans receivable 25,961 339,683 Purchase of property and equipment 5 (334,670) (511,287) Cash applied to investing activities $ (308,709) $ (171,604) Financing activities Dividends paid (547,950) (561,104) Principal lease payments 8 (238,312) (242,229) Purchase of common shares - (411,231) Cash applied to financing activities $ (786,262) $ (1,214,564) Decrease in cash (2,689,333) (1,919,473) Cash and cash equivalents – beginning of the year 11,257,283 13,341,434 Cash and cash equivalents - end of the year $ 8,567,950 $ 11,421,961 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS Cash flow from (applied to) Note - The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements - Three months ended December 31, 2025 Three months ended December 31, 2024 Page 5 (Unaudited, in Canadian dollars) Number At September 30, 2024 18,703,486 $ 77,204,930 $ 4,394,232 $ (17,081,088) $ 64,518,074 NCIB shares purchased for cancellation (157,400) $ (411,231) $ - $ - $ (411,231) Share based payment – options - - 7,339 - 7,339 Dividends 9 - - - (556,383) (556,383) Total comprehensive loss - - - (125,096) (125,096) At December 31, 2024 18,546,086 $ 76,793,699 $ 4,401,571 $ (17,762,567) $ 63,432,703 NCIB shares purchased for cancellation (281,100) $ (704,335) $ - $ - $ (704,335) Share based payment – options - - 12,512 - 12,512 Dividends 9 - - - (1,650,278) (1,650,278) Total comprehensive income - - - 284,330 284,330 At September 30, 2025 18,264,986 $ 76,089,364 $ 4,414,083 $ (19,128,515) $ 61,374,932 Shares cancelled under the NCIB (700) $ - $ - $ - $ - Dividends 9 - - - (547,929) (547,929) Total comprehensive loss - - - (7,768) (7,768) At December 31, 2025 18,264,286 $ 76,089,364 $ 4,414,083 $ (19,684,212) $ 60,819,235 Total Amount Share Options CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Note Share Capital Contributed Surplus Deficit Page 6 December 31, 2025, in Canadian dollars Unaudited 1. Nature of operations 2. Basis of presentation A. STATEMENT OF COMPLIANCE B. BASIS OF MEASUREMENT - C. BASIS OF CONSOLIDATION D. FUNCTIONAL AND PRESENTATIONAL CURRENCY E. USE OF ESTIMATES AND JUDGEMENTS - - - - - - - - F. MEASUREMENT OF FAIR VALUES Assessing recoverable amounts of all significant financial and non-financial assets; and Significant areas requiring the use of management estimates are further described in the following summary of significant accounting policies and notes: Impairment of non-financial assets. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS The head office of the Company is located at 300 – 1914 Hamilton Street, Regina, Saskatchewan, S4P 3N6. The Company’s registered and records office is located at 800 – 1801 Hamilton Street, Regina, Saskatchewan, S4P 4B4. These condensed interim consolidated financial statements were authorized for issue by the Board of Directors on --- February 10, 2026. These condensed interim consolidated financial statements, including comparatives, have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34") using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Committee ("IFRIC"). They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last audited annual financial statements as at and for the period ended September 30, 2025. Recognition of deferred tax assets; Fair value of financial instruments; A number of the Company's accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. Areas of judgement in applying accounting policies that have the most significant effect on the amount recognized in the condensed interim consolidated financial statements include: The predecessor corporation of SSC Security Services Corp. (the "Company" or "SSC") was incorporated under The Business Corporations Act (Saskatchewan) (the “Act”) on October 25, 2011. The existing Company was formed by an amalgamation under the Act on August 8, 2013. The Company’s common shares are publicly traded on the TSX Venture Exchange under the symbol “SECU” (OTCQX: SECUF). The Company provides cyber, physical and electronic security services across Canada. The preparation of condensed interim consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ materially from those 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 period affected. Share purchase options and deferred share units that are accounted for according to the share-based payments criteria. There is judgement in determining the timing of revenue recognition pertaining to electronic installation services, where the entire contract is one performance obligation and is recognized over time using the percentage of completion basis. Timing of revenue recognition may differ from when customers are invoiced, which could result in contract assets or contract liabilities being recognized. The condensed interim consolidated financial statements are presented in Canadian dollars, the functional currency of the Company and its subsidiary, and all values are rounded to the nearest dollar with the exception of share and per share value. The condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Logixx Security Inc. ("Logixx"). Control is achieved when the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through --- its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company until the date on which control ceases. All intercompany transactions and balances have been eliminated. All companies have a reporting date of September 30th. These condensed interim consolidated financial statements have been prepared on a historical cost basis except for the following material items in the consolidated statement of financial position: Estimates of future taxable income; and Classification and measurement of financial instruments including the business model applied; Expected credit losses on financial assets; Page 7 December 31, 2025, in Canadian dollars Unaudited NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS - - - 3. Material accounting policies 4. Segment reporting Security Legacy Operations Corporate Intersegment eliminations Total 33,569,950 $ - $ 1,038,128 $ (1,072,314) $ 33,535,764 $ 28,462,634 - - (34,186) 28,428,448 5,107,316 $ - $ 1,038,128 $ (1,038,128) $ 5,107,316 $ 3,980,192 66,202 1,074,795 (1,038,128) 4,083,061 580,247 - 727 - 580,974 380,581 - - - 380,581 166,296 $ (66,202) $ (37,394) $ - $ 62,700 $ 46,530 13,388 - - 59,918 (115,220) - - - (115,220) (68,690) $ 13,388 $ - $ - $ (55,302) $ 1,354 (7,766) - - (6,412) 1,354 $ (7,766) $ - $ - $ (6,412) $ 98,960 $ (60,580) $ (37,394) $ - $ 986 $ Gross profit The Company provides security services for enterprise customers across Canada. Segment results include items directly attributable to a segment and inter-segment administration charges, reflected as corporate revenue. The Company accounts for intersegment sales as if they were to external customers. Segment reporting is prepared on the same basis that the Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, manages the business, makes operating decisions and assesses performance. As at December 31, 2025, Management has determined that the Company operates in three segments: Security, Legacy Operations, and Corporate. The security segment provides security services to primarily commercial and public sector clients. Services include cyber security services, protective services as well as security system design, sales, installations, and monitoring and alarm response. Legacy operations relate to the previous canola streaming business. The Corporate segment includes intersegment charges and corporate overhead costs. Since May 2019, SSC has not deployed capital into new agriculture streams and is servicing those clients until their contracts with the Company mature. Fair value is the amount of consideration that would be agreed upon in an arm’s length transaction between knowledgeable, willing parties who are under no compulsion to act. The fair value hierarchy establishes three levels to classify the inputs of valuation techniques used to measure fair value. The three levels of the fair value hierarchy are described below: Level 1 – Fair values are determined using inputs that are quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Fair values are determined using inputs, other than quoted prices in level 1, that are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or li --- abilities. The accounting policies applied by the Company in these condensed interim consolidated financial statements are the same as those applied as at and for the year ended September 30, 2025, and are detailed in note 3 of the Company's audited consolidated financial statements. Level 3 – Fair values are determined based on inputs for the asset or liability that are not based on observable market data. The Company regularly reviews significant inputs and valuation assumptions. If third party information is used to measure fair values, then the Company assesses the evidence obtained from third parties to support the conclusion that these valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which the valuations should be classified. Net income (loss) before income tax Financing Revenue Cost of sales Interest income Other income Income (loss) from operations Amortization of intangible assets Depreciation of property and equipment Corporate administration Segment statements of income (loss) for the three months ended December 31, 2025 are included below: For the three months ended December 31, 2025 Other income (loss) Interest expense Page 8 December 31, 2025, in Canadian dollars Unaudited NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Security Legacy Operations Corporate Intersegment eliminations Total 29,225,297 $ - $ 1,122,935 $ (1,153,286) $ 29,194,946 $ 24,416,896 - - (30,351) 24,386,545 4,808,401 $ - $ 1,122,935 $ (1,122,935) $ 4,808,401 $ 4,286,141 48,579 1,268,166 (1,122,935) 4,479,951 493,006 - 51,136 - 544,142 382,786 - - - 382,786 (353,532) $ (48,579) $ (196,367) $ - $ (598,478) $ 108,660 31,208 - - 139,868 (50,723) - (525) - (51,248) 57,937 $ 31,208 $ (525) $ - $ 88,620 $ - 1,402 - - 1,402 352,524 333 - - 352,857 352,524 $ 1,735 $ - $ - $ 354,259 $ 56,929 $ (15,636) $ (196,892) $ - $ (155,599) $ Security Legacy Operations Corporate Intersegment eliminations Total 73,333,268 $ 6,201,269 $ 60,399,251 $ (57,437,139) $ 82,496,649 $ 74,780,078 $ 6,202,801 $ 61,258,875 $ (58,299,011) $ 83,942,743 $ 40,945,320 $ - $ 2,842,251 $ (22,110,157) $ 21,677,414 $ 42,338,171 $ - $ 3,201,669 $ (22,972,029) $ 22,567,811 $ 5. Property and equipment September 30, 2025 Net carrying Amount Net additions Depreciation Net carrying amount $ 93,963 $ 32,100 $ 5,671 $ 120,392 122,818 12,451 10,485 124,784 130,397 - 25,478 104,919 105,855 19,971 17,440 108,386 189,112 - 4,956 184,156 1,192,127 223,487 200,879 1,214,735 182,965 46,661 10,036 219,590 $ 2,017,237 $ 334,670 $ 274,945 $ 2,076,962 4,962,682 93,769 306,029 4,750,422 Total $ 6,979,919 $ 428,439 $ 580,974 $ 6,827,384 Property and equipment As at September 30, 2025 As at December 31, 2025 Revenues from sales to one customer of the Company amounted to 11.7% of consolidated revenues in the quarter ended December 31, 2025 (6.5% in the quarter ended December 31, 2024). These revenues are attributable to the Company's Security operating segment. Gross profit Leasehold improvements Uniforms Right-of-use asset Security towers and equipment Vehicles Computer equipment Managed security services equipment The following table summarizes the changes in the net carrying amounts of property and equipment during the three months ended December 31, 2025: Furniture and fixtures December 31, 2025 As at December 31, 2025 Segment liabilities: Segment statements of income (loss) for the three months ended December 31, 2024 are included below: Amortization of --- intangible assets As at September 30, 2025 Segment assets: Other income For the three months ended December 31, 2024 Revenue Cost of sales Gain from legacy business Loss from operations Depreciation of property and equipment Segment information as at December 31, 2025 and September 30, 2025 are as follows: Financing Other income Interest income Corporate administration Interest expense Net income (loss) before income tax Page 9 December 31, 2025, in Canadian dollars Unaudited NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 Net carrying Amount Net additions Depreciation Net carrying amount $ 33,653 $ 75,904 $ 1,593 $ 107,964 97,215 20,328 9,330 108,213 236,201 - 27,104 209,097 156,304 13,273 24,672 144,905 23,809 127,659 6,163 145,305 1,216,478 274,123 215,285 1,275,316 $ 1,763,660 $ 511,287 $ 284,147 $ 1,990,800 1,369,656 1,845,435 259,995 2,955,096 Total $ 3,133,316 $ 2,356,722 $ 544,142 $ 4,945,896 6. Goodwill and intangible assets Software Customer relationships Tradename Total intangible assets Goodwill Cost $ 86,585 $ 15,703,442 $ 5,980,000 $ 21,770,027 $ 13,909,918 - - - - - - - - - - $ 86,585 $ 15,703,442 $ 5,980,000 $ 21,770,027 $ 13,909,918 - - - - - - - - - - $ 86,585 $ 15,703,442 $ 5,980,000 $ 21,770,027 $ 13,909,918 - - - - - - - - - - $ 86,585 $ 15,703,442 $ 5,980,000 $ 21,770,027 $ 13,909,918 Accumulated amortization $ 48,958 $ 4,351,072 $ - $ 4,400,030 $ - 5,343 377,443 - 382,786 - - - - - - $ 54,301 $ 4,728,515 $ - $ 4,782,816 $ - 15,167 1,132,330 - 1,147,497 - - - - - - $ 69,468 $ 5,860,845 $ - $ 5,930,313 $ - 3,138 377,443 - 380,581 - - - - - - $ 72,606 $ 6,238,288 $ - $ 6,310,894 $ - Carrying amounts $ 13,979 $ 9,465,154 $ 5,980,000 $ 15,459,133 $ 13,909,918 $ 17,117 $ 9,842,597 $ 5,980,000 $ 15,839,714 $ 13,909,918 Managed security services equipment Right-of-use asset Computer equipment December 31, 2024 Balance at September 30, 2025 Vehicles At December 31, 2025, the property leases relating to office space had a carrying amount of $3,690,332 (September 30, 2025: $3,830,860), with $140,529 of depreciation included in the condensed interim consolidated statement of loss for the three months ended December 31, 2025 (December 31, 2024: $88,162). Balance at September 30, 2024 Property and equipment Leasehold improvements Furniture and fixtures Retirements, disposals, and adjustments The useful lives over which software and customer relationships are amortized are stated in Note 3 - Material Accounting Policies. The amortization expense is included in the condensed interim consolidated statements of loss and comprehensive loss. Amortization Balance at September 30, 2024 Acquisitions Uniforms The Company currently has two categories of right-of-use assets relating to vehicles and property leases. At December 31, 2025, the carrying amount of vehicles under lease was $1,060,090 (September 30, 2025: $1,131,822), with $165,500 of depreciation included in the condensed interim consolidated statement of loss for the three months ended December 31, 2025 (December 31, 2024: $171,834). Retirements, disposals, and adjustments At December 31, 2025 Acquisitions Retirements, disposals, and adjustments Balance at December 31, 2025 Balance at December 31, 2024 Acquisitions Retirements, disposals, and adjustments Amortization Retirements, disposals, and adjustments Balance at December 31, 2025 Balance at December 31, 2024 Retirements, disposals, and adjustments Balance at September 30, 2025 Amortizat --- ion At September 30, 2025 Page 10 December 31, 2025, in Canadian dollars Unaudited NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 7. Accounts payable and accrued liabilities December 31, 2025 September 30, 2025 $ 1,903,863 $ 1,556,026 5,073,374 6,002,354 547,929 547,950 1,943,438 2,039,415 429,069 691,875 968,795 617,467 $ 10,866,468 $ 11,455,087 8. Obligations under lease Vehicle lease liability Property lease liability Total lease liability Balance at September 30, 2024 1,175,150 $ 292,345 $ 1,467,495 $ Additions 52,131 1,818,329 1,870,460 Disposals (25,733) - (25,733) Principal payments on lease liabilities (169,249) (72,980) (242,229) Balance at December 31, 2024 1,032,299 $ 2,037,694 $ 3,069,993 $ Additions 708,774 2,508,289 3,217,063 Disposals (53,580) - (53,580) Principal payments on lease liabilities (489,962) (163,552) (653,514) Balance at September 30, 2025 1,197,531 $ 4,382,431 $ 5,579,962 $ Additions 93,769 - 93,769 Adjustments - 48,409 48,409 Principal payments on lease liabilities (163,295) (75,017) (238,312) Balance at December 31, 2025 1,128,005 $ 4,355,823 $ 5,483,828 $ Current portion 591,726 387,402 979,128 Long-term portion 536,278 3,968,422 4,504,700 Total balance at December 31, 2025 1,128,004 $ 4,355,824 $ 5,483,828 $ 9. Share capital, contributed surplus and retained earnings A. DIVIDENDS Dividend per share Shares outstanding Total Dividend $ 0.03 18,546,086 $ 556,383 $ 0.03 18,442,586 $ 553,278 $ 0.03 18,301,686 $ 549,051 $ 0.03 18,264,986 $ 547,950 $ 0.03 18,264,286 $ 547,929 June 30, 2025 September 30, 2025 The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its discount rate as the incremental borrowing rate. SSC determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. December 31, 2025 (Note 7) December 31, 2024 March 31, 2025 Record date The Company declared the following dividends since October 1, 2024 to the shareholders of record on the following dates. Other payables Dividends payable Accounts payable and accrued liabilities are unsecured and are usually paid within 30 days of recognition. The carrying amount of accounts payable and accrued liabilities are considered to be the same as their fair values, due to their short-term nature. Vacation payable Current liabilities: Bonus accrual Accounts payable Payroll tax and other statutory liabilities During the three months ended December 31, 2025, the Company paid interest on vehicle leases in the amount of $38,722 (December 31, 2024: $36,208), and $76,499 on property leases (December 31, 2024: $15,039). As at December 31, 2025, the total commitments relating to leases over the next 12 months are $1,377,337 (12 month lease commitments as at September 30, 2025, $1,361,430). Page 11 December 31, 2025, in Canadian dollars Unaudited NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS B. CASH-SETTLED SHARE-BASED PAYMENT ARRANGEMENTS Deferred Share Unit Plan 474,663 14,829 489,492 41,989 531,481 14,293 545,774 Share Appreciation Rights 625,000 270,000 895,000 - 895,000 270,000 1,165,000 December 31, 2025 September 30, 2025 $ 390,162 $ 402,507 --- 110,968 122,700 $ 501,130 $ 525,207 10. Basic and diluted weighted average number of common shares Three months ended December 31, 2025 Three months ended December 31, 2024 18,264,294 18,424,311 N/A N/A The Company has a Deferred Share Unit Plan (the “DSU Plan”) whereby the Company grants deferred share units ("DSUs") to eligible directors. Each eligible director is given the opportunity to elect, in lieu of cash, to receive all, or a portion of, their annual board retainer or board meeting fees in the form of DSUs. The DSUs are cash-settled payment transactions and are valued at the fair value of the rights based on the closing stock price at the end of the reporting period. The total carrying amount of the DSU liability as at December 31, 2025 was $1,301,317 (September 30, 2025 $1,397,796). At September 30, 2024 At December 31, 2024 A continuity schedule of the total number of DSUs is presented below: At September 30, 2024 Granted Granted Granted Basic weighted average number of shares At December 31, 2025 Share options At September 30, 2025 Granted Current portion Long-term portion Total SARs liability At December 31, 2025 Dilutive securities: A continuity schedule of the total number of SARs is presented below: Granted On October 27, 2022, the Company adopted a Share Appreciation Rights Plan (the “SAR Plan”) pursuant to which it may grant share appreciation rights (“SARs”) to certain employees and executive officers that entitle them to a cash payment equal to the share price appreciation over 5 years. The SARs vest one-third per year over a three-year vesting period and expire at the end of a five-year period after the grant date. At December 31, 2024 Diluted weighted average number of common shares is based on the following: The average market value of the Company's shares for the purpose of calculating the dilutive effect of share options was based on quoted market prices for the year during which the options were outstanding. Due to the net loss in the three month periods ended December 31, 2025, and December 31, 2024, share options were anti-dilutive. At September 30, 2025 Granted The total carrying amount of the SARs liability as at December 31, 2025, and September 30, 2025 was: Page 12 December 31, 2025, in Canadian dollars Unaudited NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 11. Revenue DISAGGREGATION OF REVENUE Three months ended December 31, 2025 Three months ended December 31, 2024 $ 31,551,779 $ 27,319,655 2,018,170 1,905,642 $ 33,569,949 $ 29,225,297 - - (34,185) (30,351) $ 33,535,764 $ 29,194,946 12. Corporate administration Three months ended December 31, 2025 Three months ended December 31, 2024 $ 217,270 $ 160,897 (120,556) 207,874 1,101,599 1,117,438 (15,420) 122,148 177,998 172,333 220,679 213,428 2,501,491 2,478,494 - 7,339 $ 4,083,061 $ 4,479,951 13. Income taxes Three months ended December 31, 2025 Three months ended December 31, 2024 $ 986 $ (155,599) 27.0% 27.0% 266 (42,012) 8,488 8,879 - 2,630 $ 8,754 $ (30,503) Share based compensation Revenue is recognized in a manner that depicts the transfer of promised goods or services to the customer and at an amount that reflects the consideration expected to be received in exchange for transferring those goods and services. Standard 30-day payment terms apply to the majority of accounts receivable for the Company. The table below provides a disaggregation of the Company's overall revenues for the years ended December 31, 2025 and 2024: Legacy --- operations Corporate and intersegment eliminations Other administration Non-deductible expenses Salaries, wages and benefits Physical protective security services Contracted services Office Security services Professional fees Bad debt (recovery) expense Cyber security services The income tax expense differs from the amounts that would result from applying the federal and provincial income tax rate to the net income before income taxes. These differences result from the following items: Income tax expense (recovery) based on the above rates Total expense Other Cash-settled share based payment arrangements Income tax expense (recovery) Canadian federal and provincial tax rates Net income (loss) before income tax Page 13 December 31, 2025, in Canadian dollars Unaudited NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 14. Financial instruments Level December 31, 2025 September 30, 2025 1 $ 8,567,950 $ 11,257,283 2 26,723,451 25,117,611 3 4,846,017 4,846,017 2 456,227 457,672 2 10,866,468 11,455,087 15. Changes in working capital items Three months ended December 31, 2025 Three months ended December 31, 2024 $ (1,605,840) $ 94,052 (15,514) (59,884) (155,455) (294,174) (33,002) (168,533) 57,921 (15,599) (588,619) (1,152,422) $ (2,340,509) $ (1,596,560) 16. Related party transactions 17. Commitments and contingencies 18. Comparative figures Net decrease in cash Change in working capital items Prepaid expenses Lawsuits and claims that have arisen in the normal course of business are pending for and against the Company and provisions have been recorded where appropriate. It is the opinion of management that the final determination of these claims will not have a material adverse effect on the financial position or the results of the Company. As at December 31, 2025, the Company had a letter of credit issued by CIBC totaling $200,000 (September 30, 2025, $200,000). This instrument was issued in the ordinary course of business to support the Company's contractual obligation under a service agreement. The Company enters into certain transactions with private companies controlled by key management of SSC. These transactions are in the normal course of operations and are recorded at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Certain comparative figures have been reclassified to conform with the current period presentation, including the prior period reclassification of a gain from cost of sales to other income in accordance with IFRS. Amortized cost Accounts payable and accrued liabilities Amortized cost Other financial liabilities Mortgages and loans receivable Accounts receivable Related party expenses totalled $355,450 for the three months ended December 31, 2025 ($225,875 for the three months ended December 31, 2024) and are included within the expense categories detailed in Note 12. At December 31, 2025, accounts payable and accrued liabilities included related party transactions totalling $111,875 (September 30, 2025 - $417,775). Contract liabilities The fair value of short-term financial instruments approximates their carrying amounts due to the relatively short period to maturity. These include cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities. Inventories Contract assets Accounts receivable Accounts payable and accrued liabilities Legacy contract assets Amortized cost Amortized cost The following sets forth the fair val --- ue of the Company’s financial assets and liabilities by level within the fair value hierarchy. As required by IFRS 13, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Classification Cash and cash equivalents Page 14