SEDAR Interim Financial Statements

CONAVI MEDICAL CORP. Interim condensed consolidated financial statements (unaudited) As at and for the three months ended December 31, 2025 CONAVI MEDICAL CORP. Three months ended December 31, 2025 and 2024 Table of contents Interim condensed consolidated statements of financial position 3 Interim condensed consolidated statements of loss and comprehensive loss 4 Interim condensed consolidated statements of changes in shareholders’ deficiency 5 Interim condensed consolidated statements of cash flows 8 Notes to the interim condensed consolidated financial statements 10-26 December 31, 2025 September 30, 2025 Note Assets Current assets Cash and cash equivalents 971 5,841 Restricted cash 19 959 — Accounts receivable and other receivables 381 407 Inventory 4 71 341 Prepaid expenses, supplier deposits and other assets 3,063 1,415 Investment tax credits recoverable 326 265 Total Current Assets 5,771 8,269 Property and equipment 5 1,175 1,208 Intangible assets 6 2,211 2,155 Right-of-use assets 7 682 811 Total Assets 9,839 12,443 Liabilities Current liabilities Accounts payable and accrued liabilities 4,947 2,905 Financing liability 19 959 — Current portion of deferred revenue 8 519 606 Current portion of loans payable 9 1,129 1,106 Lease liabilities 7 598 800 Warrant liability 10 1,423 2,794 Total Current Liabilities 9,575 8,211 Long term liabilities Deferred revenue 8 4,131 4,261 Loans payable 9 16,284 17,266 Lease liabilities 7 603 734 Total Liabilities 30,593 30,472 Shareholders' Deficiency Common shares 11 126,787 126,787 Pre-funded warrants 11 6,116 6,116 Contributed surplus 16,466 16,232 Cumulative translation adjustment (417) (163) Deficit (169,706) (167,001) Total Shareholders' Deficiency (20,754) (18,029) Total Liabilities and Shareholders' Deficiency 9,839 12,443 Going concern (Note 2) The accompanying notes are an integral part of these interim condensed consolidated financial statements. CONAVI MEDICAL CORP. Interim condensed consolidated statements of financial position As at December 31, 2025, and September 30, 2025 (unaudited - Expressed in thousands of Canadian dollars) 3 December 31, 2025 December 31, 2024 Note Licensing and R&D services revenue 8 218 8,392 Product revenues — 242 218 8,634 — Cost of sales — 1,548 Gross profit 218 7,086 Operating expenses 14 Research and development 2,387 4,654 General and administrative 2,433 1,722 Depreciation and amortization 5, 6 & 7 186 209 Other expenses 356 232 Total operating expenses 5,362 6,817 Operating loss (income) 5,144 (269) Net finance costs (income) 15 (1,068) 10,785 Change in fair value of warrant liability 10 (1,371) (8,468) Listing expense — 4,987 Net loss 2,705 7,035 Other comprehensive loss Foreign currency translation adjustment - net of tax 254 554 Net loss and comprehensive loss for the period 2,959 7,589 Loss per share common 16 Basic and diluted loss per common share 0.04 0.18 The accompanying notes are an integral part of these interim condensed consolidated financial statements. CONAVI MEDICAL CORP. Interim condensed consolidated statements of loss and comprehensive loss For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars except per share amounts) 4 Note Common Shares Pre-Funded Contributed surplus Cumulative Translation Adjustment Deficit Total Number of Shares Amount Number of Shares Amount Balance at October 1, 2025 76,750,086 126,787 17,500,000 6,116 16,232 (163) (167,001) (18,029) Stock-based compensatio --- n 12 — — — — 234 — — 234 Cumulative translation adjustment — — — — — (254) — (254) Net loss for the period — — — — — — (2,705) (2,705) Balance, December 31, 2025 76,750,086 126,787 17,500,000 6,116 16,466 (417) (169,706) (20,754) CONAVI MEDICAL CORP. Interim condensed consolidated statements of changes in shareholders' deficiency For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 5 Note Common Shares Common A Preferred Shares Warrant Reserve Contributed surplus Cumulative Translation Adjustment Deficit Total Number of Shares Amount Number of Shares Amount Number of Shares Amount Balance at October 1, 2024 — — 6,162,073 17,552 4,439,221 18,408 4,173 20,691 (172) (146,485) (85,833) Conversion of Class A common shares of CMI into common shares of the Company 4,226,368 17,552 (6,162,073) (17,552) — — — — — — — Issuance of common shares to Titan shareholders 4,707,587 6,150 — — — — — — — — 6,150 Conversion of CMI preferred shares liability warrants to common shares on close of the Transaction 1,546,359 — — — — — — — — — — Conversion of CMI preferred shares warrants to common shares on close of the Transaction 1,012,339 4,173 — — — — (4,173) — — — — Issuance of common shares on conversion of CMI preferred share liability 10,961,118 45,641 — — — — — — — — 45,641 Issuance of common shares on conversion of CMI preferred shares 5,569,602 18,408 — — (4,439,221) (18,408) — — — — — Issuance of common shares in connection with CMI private placement net of transaction cost 7,152,841 9,172 — — — — — (4,697) — — 4,475 CONAVI MEDICAL CORP. Interim condensed consolidated statements of changes in shareholders' deficiency For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 6 Note Common Shares Common A Preferred Shares Warrant Reserve Contributed surplus Cumulative Translation Adjustment Deficit Total Number of Shares Amount Number of Shares Amount Number of Shares Amount Issuance of common shares upon conversion of CMI 18% secured convertible notes 8,140,592 12,225 — — — — — — — — 12,225 Issuance of common shares upon conversion of CMI 10% secured convertible notes 933,280 1,419 — — — — — — — — 1,419 Stock-based compensation 12 — — — — 65 65 Cumulative translation adjustment — — — — — — — — (554) — (554) Net loss for the period — — — — — — — — — (7,035) (7,035) Balance at December 31, 2024 44,250,086 114,740 — — — — — 16,059 (726) (153,520) (23,447) The accompanying notes are an integral part of these interim condensed consolidated financial statements. CONAVI MEDICAL CORP. Interim condensed consolidated statements of changes in shareholders' deficiency For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 7 December 31, 2025 December 31, 2024 Note Cash flows used in operating activities: Loss for the period (2,705) (7,035) Items not affecting cash: Depreciation of property and equipment 5 63 82 Amortization of intangible assets 6 59 62 Depreciation of right-of-use assets 7 64 64 Interest accrued and accretion expense 15 329 11,072 Stock-based compensation 12 234 65 Impairment of property and equipment — 137 Net loss on disposal of property and equipment — 95 Unrealized foreign exchange gain (1,216) (201) Change in fair value of warrant liability 10 (1,371) (8,468) Listing expense — 4,987 Deferred revenue (88) — Other income (21) Non-cash licensing and R&D services revenue (218) (8,3 --- 92) (4,870) (7,532) Changes in working capital accounts: Inventories 270 1,506 Accounts receivable and other receivables 26 329 Investment tax credits recoverable (60) (64) Accounts payable and accrued liabilities 2,043 (2,780) Prepaid expenses and supplier deposits (1,649) (177) Net cash used in operating activities (4,240) (8,718) Cash flows from (used in) investing activities: Purchase of property and equipment 5 (30) (29) Purchase of intangible assets 6 (115) (14) Proceeds from the Transaction — 3,753 Total cash from (used in) investing activities (145) 3,710 CONAVI MEDICAL CORP. Interim condensed consolidated statements of cash flows For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 8 December 31, 2025 December 31, 2024 Cash flows from (used in) financing activities: Payment of lease liabilities 7 (266) (255) Payment of loans payable and interest 9 (219) (175) Proceeds from private placement — 10,092 Net cash flows from (used in) financing activities (485) 9,662 Increase (decrease) in cash and cash equivalents (4,870) 4,654 Cash and cash equivalents, beginning of the period 5,841 436 Cash and cash equivalents, end of period 971 5,090 The accompanying notes are an integral part of these interim condensed consolidated financial statements. CONAVI MEDICAL CORP. Interim condensed consolidated statements of cash flows For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 9 1. Nature of operations Conavi Medical Inc. (“CMI”) was incorporated in 2007, initially under the name Colibri Technologies Inc. CMI develops image guidance technologies for use in minimally invasive medical procedures with an initial focus in cardiology. On October 11, 2024, CMI closed its reverse take-over transaction (the “Transaction”) with Titan Medical Inc., which was renamed in connection with the Transaction as Conavi Medical Corp. (which, together with its subsidiaries, is defined herein as the Company). Under the Transaction, a wholly-owned subsidiary of the Company amalgamated with CMI and CMI shareholders received common shares of the Company. Prior to its Transaction with CMI, the Company was formed by amalgamation under the Business Corporations Act (Ontario) on July 28, 2008 (as Titan Medical Inc.). The head office of CMI and the Company is located at 293 Lesmill Rd, North York, ON M3B 2V1, Canada. On October 16, 2024, the shares of Conavi Medical Corp. commenced trading on the TSX Venture Exchange under the ticker symbol CNVI. 2. Going concern These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities as they come due and in the normal course of business for the foreseeable future. The Company incurred a net loss of $2,705 for the three months ended December 31, 2025 (December 31, 2024 - $7,035) and reported a deficit of $169,706 (September 30, 2025 - $167,001) as at that date. In addition, cash used in operating activities was $4,240 for the three months ended December 31, 2025 (December 31, 2024 - $8,718). The Company had $971 in cash and cash equivalents as at December 31, 2025 (September 30, 2025 - $5,841). Notwithstanding the additional funds raised subsequent to December 31, 2025 (Note 20), the Company will need to secure further financing in order to meet its requirements for funding its planned research, development and operating --- activities. These circumstances lead to significant doubt about the ability of the Company to continue as a going concern and, accordingly, the ultimate use of accounting principles applicable to a going concern. The Company is developing a next-generation version of its Novasight Hybrid System, which it anticipates commercially launching in the United States during fiscal 2026 subject to regulatory approval. This system is anticipated to have a much lower cost of goods sold than the first generation system, which, if achieved, would contribute to operating cash flow. In addition, management is working towards obtaining additional financing from new and existing strategic partners and shareholders in order to continue to develop and bring the Company’s products to market, so as to generate revenue and achieve positive cash flows from operations. However, there is no assurance these initiatives will be successful or sufficient. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 10 2. Going concern (continued) The success of the Company is dependent on developing and bringing its products to market and obtaining adequate funding through a combination of financing activities and profitable commercial operations. These interim condensed consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities to their recoverable amounts or the reported expenses and consolidated statements of financial position classifications that would be necessary if the going concern assumption were inappropriate, and these adjustments could be material. 3. Material accounting policies Basis of preparation The Company prepares its interim condensed consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") applicable to preparation of interim financial statements under IAS 34 Interim Financial Reporting. These interim condensed consolidated financial statements are presented in thousands of Canadian dollars and should be read in conjunction with the Company's annual consolidated financial statements for the year ended September 30, 2025, which were prepared in accordance with IFRS Accounting Standards. The accounting policies applied in the preparation of the interim condensed consolidated financial statements are consistent with the policies and methods set out in the Company’s annual consolidated financial statements for the year ended September 30, 2025. The Board of Directors approved these interim condensed consolidated financial statements on February 25, 2026. Future accounting pronouncements At the date of authorization of these interim condensed consolidated financial statements, the Company had not applied the following new and revised IFRS Accounting Standards that are not yet effective. • Amendments to IFRS 9, Financial instruments and IFRS 7, Financial instruments: Disclosures The IASB has issued classification and measurement and disclosure amendments to IFRS 9 and IFRS 7 with an effective date for years beginning on or after January 1, 2026 with earlier application permitted. The amendments clarify the date of recognition and derecognition of some financial assets and liabilities and introduce a new exception for some financial lia --- bilities settled through an electronic payment system. Other changes include a clarification of the requirements when assessing whether a financial asset meets the solely payments of principal and interest criteria and new disclosures for certain instruments with contractual terms that can change cash flows (including instruments where cash flows changes are linked to environment, social or governance (ESG) targets). The Company has not yet commenced the evaluation of the impact of these amendments. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 11 3. Material accounting policies (continued) Future accounting pronouncements (Continued) • New accounting standard IFRS 18, Presentation and disclosure in financial statements IFRS 18, Presentation and Disclosure in Financial Statements (IFRS 18) will provide new presentation and disclosure requirements and replace IAS 1, Presentation of Financial Statements. IFRS 18 introduces changes to the structure of the income statement; provides required disclosures in financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements; and provides enhanced principles on aggregation and disaggregation in financial statements. Many other existing principles in IAS 1 have been maintained. IFRS 18 is effective for years beginning on or after January 1, 2027, with earlier application permitted. The Company has not yet commenced the evaluation of the impact of the new standard. Use of estimates and judgements The preparation of the interim condensed consolidated financial statements in conformity with IFRS Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. Estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. There have been no material changes to the nature of estimates and judgements reported in the Company's consolidated financial statements for the year ended September 30, 2025. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 12 4. Inventories December 31, 2025 September 30, 2025 Components and parts 71 307 Work-in-progress — 34 71 341 Included in inventory is an inventory provision due to estimated net realizable value below cost in the amount of $795 for the three months ended December 31, 2025 (September 30, 2024 - $795). Inventory consumed in cost of sales amounted to $nil for the three months ended December 31, 2025 (three months ended December 31, 2024 - $266). Inventories consumed in research and development during the three months ended December 31, 2025, amounted to $nil (three months ended December 31, 2024 - $151). The Company increased its inventory pro --- vision by $nil during the three months ended December 31, 2025 (three months ended December 31, 2024 - $1,232). There were no other inventory write downs charged to cost of sales during the three months ended December 31, 2025 and December 31, 2024. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 13 5. Property and equipment Leasehold Improvements Lab Equipment Computers Furniture & Fixtures Sales & Marketing Equipment Demonstration Equipment Total Cost Balance as at October 1, 2025 1,152 2,432 617 322 39 381 4,943 Additions — 19 11 — — — 30 Balance as at December 31, 2025 1,152 2,451 628 322 39 381 4,973 Accumulated Depreciation Balance as at October 1, 2025 809 1,676 578 252 39 381 3,735 Depreciation 19 35 6 3 — — 63 Balance as at December 31, 2025 828 1,711 584 255 39 381 3,798 Net book value as at December 31, 2025 324 740 44 67 — — 1,175 During the three months ended December 31, 2025, the Company recognized an impairment related to its demonstration units in the amount of $nil (three months ended December 31, 2024 – $137). CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 14 6. Intangible assets Patents Software Total Cost Balance as at October 1, 2025 3,482 2,175 5,657 Additions 115 — 115 Balance as at December 31, 2025 3,597 2,175 5,772 Accumulated amortization Balance as at October 1, 2025 1,503 1,999 3,502 Amortization 47 12 59 Balance as at December 31, 2025 1,550 2,011 3,561 Net book value December 31, 2025 2,047 164 2,211 CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 15 7. Leases Right-of-use assets The following tables present changes in right-of-use assets for the Company for the three months ended December 31, 2025 Buildings For the Three Months Ended December 31, 2025 Opening book value 811 Lease modification (65) Depreciation (64) Closing net book value 682 Balance, December 31, 2025 Cost 1,518 Accumulated depreciation (836) Closing net book value 682 Lease liabilities The following table present changes in lease liabilities for the Company for the three months ended December 31, 2025 Buildings Current Non-current Balance, September 30, 2025 1,534 800 734 Lease modification (86) — — Accretion of interest 24 — — Lease payments (266) — — Foreign exchange (5) — — Balance, December 31, 2025 1,201 598 603 CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 16 7. Leases (continued) Lease receivables on sub-lease The following table sets out a maturity analysis of lease receivables recorded as accounts receivable and other receivables, showing the undiscounted lease payments to be received: December 31, 2025 Within 1 year 90 1 to 2 years — Total undiscounted lease receivable 90 Unearned interest income (3) Lease receivable 87 Current 87 Non-current — Balance, December 31, 2025 87 8. Deferred revenue December 31, 2025 September 30, 2025 Distribution agreement 2,258 2,321 Technology transfer and licensing agreement 2,392 2,458 Other deferred reven --- ue — 88 4,650 4,867 Less: current portion 519 606 Non-current portion 4,131 4,261 During the three months ended December 31, 2025 the Company recognized $218 (three months ended December 31, 2024 - $34) in licensing and R&D services revenue attributable to the distribution agreement and the technology transfer and licensing agreement, including minimum royalties. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 17 9. Loans payable IAF credit loan (i) Japan Lifeline Co. revolving line (ii) Japan Lifeline Co. term loan (iii) FedDev credit loan (iv) SOFII credit loan (v) RRRF credit loan (vi) Total loans payable Balance - September 30, 2025 270 11,514 4,027 1,724 444 393 18,372 Repayment of borrowings — (113) (52) (40) (205) Interest and accretion expense — 179 62 49 10 13 313 Cash interest paid — — — — (14) — (14) Loss (gain) on foreign exchange — (780) (273) — — — (1,053) Balance - December 31, 2025 270 10,913 3,816 1,660 388 366 17,413 Current portion of loans payable 270 — — 581 168 110 1,129 Non-current portion of loans payable — 10,913 3,816 1,079 220 256 16,284 270 10,913 3,816 1,660 388 366 17,413 CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 18 10. Warrant liability Warrants have been issued as part of equity financings and include broker warrants to agents of the Company. “Pre-Funded Warrants” are disclosed in Note 12 and are recognized separately. As all of these warrants have an exercise price in a different currency to the functional currency, they are classified as liabilities. The following table presents the changes in fair value of the warrant liability for the three months ended December 31, 2025: As at September 30, 2025 2,794 Change in fair value of warrant liability (1,371) As at December 31, 2025 1,423 The following table summarizes the warrants classified as liabilities outstanding as at December 31, 2025: Issuance related Number of warrants outstanding Exercise price Term remaining Expiry date US $ Issued as part of the private placement of subscription receipts of CMI that took place in connection with the Transaction 7,152,841 1.35 3.78 October 11, 2029 Issued upon conversion of 10% secured convertible notes issued by CMI in fiscal 2024 933,280 1.35 3.78 October 11, 2029 Issued upon conversion of 18% secured convertible notes issued by CMI in fiscal 2024 8,140,592 1.35 3.78 October 11, 2029 Broker warrants issued as part of the private placement of subscription receipts of CMI that took place in connection with the Transaction 32,693 1.08 0.78 October 11, 2026 The estimated fair value of the warrant liability was determined using a Black-Scholes option pricing model and Level 3 inputs including stock price, volatility, expected life and risk-free interest rate. Due to the absence of Company-specific volatility rates, the Company chose comparable companies in a similar industry. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 19 10. Warrant liability (continued) The following table provides the inputs to the Black-Scholes option pricing model for warrants issued as part of co --- nversion of 10% and 18% secured convertible notes issued by CMI in fiscal 2024 and as part of the private placement of subscription receipts of CMI that took place in connection with the Transaction. December 31, 2025 Exercise price US$1.35 Stock price $0.46 Volatility 68.81% Term (in years) 3.78 Risk-free rate 2.96 The following table provides the inputs to the Black-Scholes option pricing model for the broker warrants issued as part of the private placement: December 31, 2025 Exercise price US$1.08 Stock price $0.46 Volatility 75.66% Term (in years) .78 Risk-free rate 2.58 11. Share capital The Company is authorized to issue an unlimited number of common shares and pre-funded warrants. December 31, 2025 September 30, 2025 Common shares 76,750,086 (September 30, 2025 - 76,750,086) common shares 126,787 126,787 126,787 126,787 Pre-funded warrants 17,500,000 (September 30, 2025 - 17,500,000) pre-funded warrants 6,116 6,116 6,116 6,116 CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 20 11. Share capital (continued) The following table summarizes the warrants classified as equity outstanding as at December 31, 2025: Related issuance Number of warrants outstanding Expiry date Exercise price Equity offering warrants 2,521,050 April 23, 2027 $ 0.40 Pre-funded warrants 17,500,000 N/A $ 0.00001 Former Titan Medical Inc. warrants 124,935 January 26, 2026 US$50.00 12. Stock-based compensation Effective January 2, 2025 the Company adopted a new stock option plan. Stock options are granted to key employees, directors and consultants determined on an individual basis. A stock option’s term may not exceed ten years and can only be settled with the Company's equity. The stock options typically vest in stages, beginning on the one year anniversary from the date the stock options are granted, provided that the stock option holder is still with the Company. If a stock option holder leaves the Company, the holder has thirty days to elect whether or not to exercise their vested stock options, after which time the stock options expire. The following summarizes information about stock options granted that were outstanding as at December 31, 2025 December 31, 2024 Number of stock Weighted average Number of stock Weighted average options outstanding exercise price options outstanding exercise price Beginning of period 7,249,937 0.84 1,361,734 2.62 Issued to Titan Medical Inc. stock option holders — — 83,801 16.50 Expired/forfeited (462,979) 0.41 (1,180,665) 3.10 End of period 6,786,958 0.87 264,870 4.87 Stock-based compensation expense for the three months ended December 31, 2025 was $234 (three months ended December 31, 2024 -$65). CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 21 12. Stock-based compensation (continued) The following table summarizes the options outstanding as at December 31, 2025: Remaining contractual Number of options Number of options Number of options life (years) outstanding vested unvested 6-7 178,674 143,173 35,501 7-8 1,029 636 393 8-9 343 157 186 9-10 6,606,912 1,004,276 5,602,636 8.99 6,786,958 1,148,242 5,638,716 13. Commitments and contingencies License Agreement The Company has entered into technology license agreement with Sunnybrook --- Health Sciences Centre ("Sunnybrook") under which it licenses certain intellectual property and has the right to develop and commercialize certain intellectual property. The agreement requires the Company to pay a minimum annual royalty of $50, and a royalty of 1% on direct sales and 2% on sales through a third party distributors. In addition, in the event of a sub-licensing transaction, there are sub-licensing fees payable to Sunnybrook of 25% based on the consideration received as part of a sub-licensing transaction. During the three months ended December 31, 2025, $13 was recorded in relation to the minimum annual royalty requirement (December 31, 2024 - $13). Claims and legal actions In the normal course of operations, the Company may be subject to litigation. When appropriate, management will record a provision while it actively pursues its position. When it is the opinion of management that the likelihood and measurability of the potential liability are not determinable, no provision will be recorded. As at December 31, 2025, $nil was recorded in relation to legal claims (September 30, 2025 - $nil). Indemnification All directors of the Company are indemnified by the Company for various items including, but not limited to, all costs to settle lawsuits or actions due to their association with the Company, subject to certain restrictions. The Company has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future lawsuits or actions. The term of the indemnification is the maximum extent permitted by applicable law, but is limited to events for the period during which the indemnified party served as a director or officer of the Company. In the event of a claim, the CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 22 13. Commitments and contingencies (continued) Indemnification (continued) maximum amount of any potential future payment cannot be reasonably estimated but could have a material adverse effect on the Company. The Company has also indemnified certain third parties in relation to certain debt and equity offerings and their respective affiliates and directors, officers, employees, shareholders, partners, advisers and agents and each other person, if any, controlling any of the third parties or their affiliates against certain liabilities. 14. Nature of expenses Three months ended December 31, 2025 December 31, 2024 Inventoried materials — 1,548 Research and development expenses 1,761 3,525 Salaries and benefits 1,965 1,672 Stock-based compensation expense 234 65 Business development, marketing, and directors' fees 528 247 Professional fees 408 437 Occupancy 32 106 Insurance 76 96 Computers and software 23 26 Amortization and depreciation 186 208 Other expenses 655 498 Government assistance, sponsorship, and grants (436) 1 Investment tax credit recovery (70) (64) 5,362 8,365 15. Net finance costs (income) Three months ended December 31, 2025 December 31, 2024 Interest income (21) (41) Other income (22) — Interest and accretion expense 329 11,072 Net foreign exchange (gains) losses (1,354) (246) (1,068) 10,785 CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 23 16. Loss per common share The follow --- ing table shows the calculation of basic and diluted loss per share: December 31, 2025 December 31, 2024 Net loss for the period 2,705 7,035 Weighted average number of common shares 76,750,086 40,109,921 Basic and diluted loss per common share 0.04 0.18 For the three months ended December 31, 2025, the computation of diluted loss per common share is equal to the basic loss per common share due to the anti-dilutive effect of the stock options, warrants and pre-funded warrants. For the three months ended December 31, 2024, the computation of diluted loss per common share is equal to the basic loss per common share due to the anti-dilutive effect of the, stock options and warrants. 17. Segment reporting Description of segment The Company operates in one segment, namely development and commercialization of imaging technologies to guide common minimally invasive cardiovascular procedures. The chief executive officer, being the chief operating decision maker, allocates resources and assesses the performance of the Company at a consolidated level. Information on revenue The Company generates revenue primarily from sales of products and licensing and R&D services transactions. The disaggregation of the Company’s revenue is presented in the following table. Revenue is reported by geographical location based on the location of the customer or licensee. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 24 17. Segment reporting (continued) Information on revenue (continued) December 31, 2025 December 31, 2024 Revenue streams Product — 242 Licensing and R&D services 218 8,392 Total revenues 218 8,634 Geographical area North America (excluding Canada) — 5 Asia 218 8,629 Total revenue 218 8,634 Geographical location of non-current assets All non-current assets are in Canada. 18. Related party transactions Key management includes the Company’s directors and senior management team. The remuneration of directors and the senior management team was as follows: December 31, 2025 December 31, 2024 Salaries and employee benefits 416 217 Termination benefits 281 — Directors' fees 149 98 Share-based compensation 161 51 1,007 366 Certain executive employment agreements allow for additional payments in the event of a liquidity event (as defined in those executive employment agreements), or if those executives are terminated without cause. 19. Restricted cash and financing liability On, January 13, 2026, the Company completed a public offering (Note 20). At December 31, 2025, certain of the funds related to the public offering had been received by the Company in the amount of $959 and are restricted to being released upon the closing of the public offering. As of December 31, 2025, the funds are held in a separate interest-bearing account and are classified as restricted cash within current assets, with a corresponding financing liability classified under current liabilities, as the conditions for release were not satisfied at the reporting date. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 25 20. Subsequent Events On January 13, 2026, the Company closed an equity offering for aggregate gross proceeds of $12,000. The Company issued 26,666,670 common shares. On February 2 --- 5, 2026 the Company entered a share for debt settlement arrangement with MaRs Investment Accelerator Fund Inc. The Company settled the debt by issuing 75,000 common shares for the outstanding balance of $270 at December 31, 2025. CONAVI MEDICAL CORP. Notes to the interim condensed consolidated financial statements For the three months ended December 31, 2025 and 2024 (unaudited - Expressed in thousands of Canadian dollars) 26