SEDAR Interim Financial Statements

Delivra Health Brands Inc. Condensed Consolidated Interim Financial Statements (Unaudited) For the three and six months ended December 31, 2025 and 2024 (in Canadian dollars) Delivra Health Brands Inc. Table of contents Notice to reader .......................................................................................................................................................... 3 Condensed consolidated interim statements of financial position................................................................................ 4 Condensed consolidated interim statements of loss and comprehensive loss ............................................................ 5 Condensed consolidated interim statements of changes in equity .............................................................................. 6 Condensed consolidated interim statements of cash flows ......................................................................................... 7 Notes to the condensed consolidated interim financial statements ............................................................................. 8-18 Delivra Health Brands Inc. Page 3 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Notice to reader The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these financial statements in accordance with the standards established by the Canadian Institute of Professional Chartered Accountants for a review of interim financial statements by an entity’s auditor. Delivra Health Brands Inc. Condensed consolidated interim statements of financial position As at December 31, 2025 and June 30, 2025 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 4 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Note December 31 2025 June 30 2025 $ $ Assets Current assets Cash 3,229 3,302 Accounts receivable 3 2,812 3,340 Inventories 4 1,840 2,759 Prepaid expenses and deposits 162 177 8,043 9,578 Property, plant and equipment 5 - 27 Total assets 8,043 9,605 Liabilities Current liabilities Accounts payable and accrued liabilities 6 1,984 3,253 Loans payable 7 318 308 2,302 3,561 Loans payable 7 1,943 1,805 Total liabilities 4,245 5,366 Equity Share capital 9 148,630 148,630 Other reserves 10 26,187 26,107 Accumulated other comprehensive loss (165) (146) Accumulated deficit (170,854) (170,352) Total equity 3,798 4,239 Total liabilities and equity 8,043 9,605 Going concern (note 2(c)) “Jason Bednar” “Gord Davey” Jason Bednar, Director Gord Davey, Director Delivra Health Brands Inc. Condensed consolidated interim statements of loss and comprehensive loss For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 5 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Three months ended December 31 Six months ended December 31 Note 2025 2024 2025 2024 $ $ $ $ Revenue 12 2,433 2,754 5,640 5,917 Cost of sales 1,411 1,404 3,115 2,944 Inventory write-down 4 50 56 52 82 Gross profit 972 1,294 2,473 2,891 Expenses General and administration 8 998 969 2,026 1,911 Sales and marketing 393 575 81 --- 2 1,238 Depreciation and amortization 5 - 326 27 652 Share-based compensation 10 31 71 80 142 1,422 1,941 2,945 3,943 Loss from operations (450) (647) (472) (1,052) Other (expense) income Interest and finance costs (75) (98) (146) (165) Gain (loss) from extinguishment/forgiveness of accounts payable 113 (58) 123 (58) Foreign exchange gain (loss) 1 (9) (7) (13) 39 (165) (30) (236) Net loss (411) (812) (502) (1,288) Other comprehensive gain (loss)-Items that may be reclassified to profit and loss: Foreign currency translation (151) 431 (19) 263 Comprehensive loss (562) (381) (521) (1,025) Net gain (loss) per share – basic and diluted (0.01) (0.03) (0.02) (0.04) Weighted average number of outstanding common shares 31,261,781 31,261,781 31,261,781 31,261,781 Page 6 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Delivra Health Brands Inc. Condensed consolidated interim statements of changes in equity For the six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Note Number of shares 1 Share capital Other reserves Accumulated other comprehensive loss Accumulated deficit Total # $ $ $ $ Balance, June 30, 2024 31,261,785 148,630 25,827 (101) (169,162) 5,194 Share-based compensation 10 - - 142 - - 142 Foreign currency translation - - - 263 - 263 Rounding of fractional shares after share consolidation (4) - - - - - Net loss - - - - (1,288) (1,288) Balance, December 31, 2024 31,261,781 148,630 25,969 162 (170,450) 4,311 Balance, June 30, 2025 31,261,781 148,630 26,107 (146) (170,352) 4,239 Share-based compensation 10 - - 80 - - 80 Foreign currency translation - - - (19) - (19) Net loss - - - - (502) (502) Balance, December 31, 2025 31,261,781 148,630 26,187 (165) (170,854) 3,798 1 The Company implemented a consolidation of its common shares in February 2025 and the number of common shares have been retrospectively adjusted. Delivra Health Brands Inc. consolidated interim statements of cash flows For the six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 7 The accompanying notes are an integral part of these condensed consolidated interim financial statements. For the six months ended December 31 Note 2025 2024 $ Operating activities Net profit (loss) (502) (1,288) Adjustments to reconcile non-cash items Depreciation and amortization 5 27 652 Inventory write-down 4 52 82 Share-based compensation 10 80 142 Gain (loss) from extinguishment/forgiveness of accounts payable (123) (58) Interest and accretion on loans and borrowings 7 158 150 Changes in working capital Accounts receivable 502 466 Inventories 853 (85) Prepaid expenses and deposits 15 (66) Accounts payable and accrued liabilities (1,106) (682) Net cash used in operating activities (44) (687) Financing activities Repayment of loans and borrowings 7 (10) (26) Net cash used in financing activities (10) (26) Effect of foreign exchange on cash (19) 365 Change in cash during the period (73) (348) Cash, beginning of the year 3,302 4,200 Cash, end of the period 3,229 3,852 Supplemental information: 1) During the six months ended December 31, 2025, interest paid was $5 (2024: $8) 2) During the six months ended December 31, 2025, there was no income tax paid (2024: $nil) Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the thr --- ee and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 8 1. Nature of operations Delivra Health Brands Inc. (“Delivra Health” or the “Company”) is a publicly traded corporation, incorporated in Canada, with its head office located at 404 – 999 Canada Place, Vancouver, BC, V6C 3E2. Delivra Health’s common shares are listed on the TSX Venture Exchange under the symbol "DHB” and on the OTCQB® Venture Market operated by OTC Market Group under the symbol “DHBUF”. These unaudited condensed consolidated interim financial statements as at and for the three and six months ended December 31, 2025 and 2024 include Delivra Health and its subsidiaries (together referred to as “the Company”). The Company is in the health and wellness consumer packaged goods business. The Company provides innovative lifestyle and health and wellness self-care products to consumers and patients in regulated markets around the world through its subsidiaries: Dream Water Global (“Dream Water”) and Delivra Corp. (“Delivra”). On January 27, 2025, the Company's Board of Directors approved the consolidation of the Company’s issued and outstanding common shares at a consolidation ratio of ten (10) pre-consolidation common shares for every post- consolidation common share (the “Share Consolidation”). The change has been applied retrospectively and as a result, all disclosures of common shares, per common share data and data related to stock options, warrants in the accompanying consolidated financial statements and related notes reflect this share consolidation for all periods presented. 2. Material accounting policies a) Basis of presentation These condensed consolidated interim financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). These condensed consolidated interim financial statements were approved and authorized for issue by the board of directors (“Board”) of the Company on February 27, 2026. b) Estimation Uncertainty There are many external factors that can adversely affect general workforces, economies and financial markets globally. Examples include, but are not limited to, political conflict and trade restrictions and tariffs in other regions and heightened inflation. It is not possible for the Company to predict the duration or magnitude of adverse results of such external factors and their effect on the Company’s business or ability to raise funds. To date, the Company has not experienced a significant overall downturn in demand for its products in connection with such ongoing uncertainties, however, the Company cannot provide assurance that there will not be downturns or disruptions to its operations in the future. c) Basis of accounting – going concern These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company’s ability to continue in the normal course of operations is dependent on its ability to achieve profitable operations and/or raise additional capital through debt or equity financings. While the Company has been successful in raising capital in the past, there is no assurance it will be succ --- essful in closing further financing transactions in the future. The Company had a consolidated net loss of $411 and $502 for the three and six months ended December 31, 2025 and negative operating cash flows of $44 for the six months ended December 31, 2025 and an accumulated deficit of $170,854 as at December 31, 2025. The ability of the Company to continue as a going concern is dependent upon generating profit through its operations and/or obtaining additional financing through the issuance of debt or equity. There is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company or that profitable operations are not achieved. These matters result in material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern. If for any reason the Company is unable to continue as a going concern, then this could have an impact on the Company’s ability to realize assets at their recognized values, in particular intangible assets, and to extinguish liabilities in the normal course of business at the amounts stated in the consolidated financial statements. Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 9 2. Material accounting policies (continued) d) Basis of measurement These condensed consolidated interim financial statements are presented in Canadian dollars and are prepared on a historical cost basis, except for certain financial instruments which are measured at fair value. e) Basis of consolidation These condensed consolidated interim financial statements incorporate the financial statements of the Company and its subsidiaries. The accounts of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. Intercompany transactions, balances and unrealized gains or losses on transactions are eliminated. 3. Accounts receivable The summary of the Company’s accounts receivable is as follows: December 31 2025 June 30 2025 $ $ Trade receivables 2,560 3,134 Taxes recoverable from governments 252 206 2,812 3,340 The Company provides credit to its customers in the normal course of business and has mitigated this risk by managing and monitoring the underlying business relationships. At the reporting date, there was $nil trade receivable write-down (December 2024 - $nil). At the reporting date, the Company assessed the collectability of the balance and concluded that none of the receivables were uncollectible. Subsidiary Jurisdiction % ownership Accounting method Dream Products Inc. Canada 100% Consolidation Dream Products USA Inc. USA 100% Consolidation Sarpes Beverages, LLC USA 100% Consolidation Delivra Corp. Canada 100% Consolidation Delivra Inc. Canada 100% Consolidation Delivra Pharmaceuticals Inc. Canada 100% Consolidation LivCorp Inc. Canada 100% Consolidation LivCorp International Inc. Canada 100% Consolidation LivVet Inc. Canada 100% Consolidation PortaPack Ltd. Canada 100% Consolidation United Greeneries Holdings Ltd. Canada 100% Consolidation United Greeneries Operations Ltd. Canada 100% Consolidation Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadia --- n dollars, except share and per share amounts) Page 10 4. Inventories The summary of the Company’s inventories is as follows: December 31 2024 June 30 2025 $ $ Liquid sleep shots and sleep powder packets Finished goods 1,071 1,787 1,071 1,787 Pain relief creams Raw materials and work-in-progress 316 271 Finished goods 554 737 870 1,008 Packaging and supplies 137 159 Inventory allowance (238) (195) 1,840 2,759 a) Allowance and write-downs During the three and six months ended December 31, 2025, the inventory write-down was $50 and $52 (2024: $56 and $82). Due to estimation uncertainties attributable to forecasting including slow moving and expiry dates, it is not possible to predict whether the full carrying value of inventory can be recognized in the next 12 months. As such, as at December 31, 2025, the Company recognized an inventory valuation allowance of $238. : Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 11 5. Property, plant and equipment The summary of the Company’s property, plant and equipment as follows: Plant and Equipment Total $ $ Cost July 1, 2024 480 480 June 30, 2025 480 480 Accumulated depreciation July 1, 2024 377 377 Amortization 76 76 June 30, 2025 453 453 Net book value June 30, 2025 27 27 Cost July 1, 2025 480 480 December 31, 2025 480 480 Accumulated depreciation July 1, 2025 453 453 Amortization 27 27 December 31, 2025 480 480 Net book value December 31, 2025 - - Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 12 6. Accounts payable and accrued liabilities The summary of the Company’s accounts payable and accrued liabilities is as follows: December 31 2025 June 30 2025 $ $ Trade payables 603 1,338 Accrued liabilities 1,184 1,562 Other payables 197 353 1,984 3,253 Trade payables, accrued liabilities and other payables are non-interest bearing. All amounts are expected to be settled within 12 months. 7. Loans The summary of the Company’s loans and borrowings is as follows: Notes December 31 2025 June 30 2025 $ $ Unsecured loans (a) 2,261 2,113 Total loans liabilities 2,261 2,113 Current portion (318) (308) Non-current portion 1,943 1,805 a) Secured and unsecured loans As at December 31, 2025, the Company has three remaining unsecured loans from the Atlantic Canada Opportunities Agency (“ACOA”) (2025 – three remaining unsecured loans). Discount Rate(ii) Maturity Face Value Balance, July 1, 2025 Accretion Repayments Total $ $ $ $ $ Loans assumed on acquisition ACOA 201210 16% (i) 2,860 1,958 143 - 2,101 ACOA 206924 16% 2026 117 8 5 (10) 3 ACOA 207593 16% (i) 484 147 10 - 157 Balance, December 31, 2025 3,461 2,113 158 (10) 2,261 (i) The annual instalments are calculated as 5% to 10% of forecasted revenues from pipeline products for the calendar year immediately preceding the due date of the respective payment, with an estimated commencement date of August 31, 2026. (ii) The effective interest rate used to calculate the fair value of the loans. The loans with ACOA are through the Atlantic Innovation Fund for the specified projects, in which repayable contributions are received by the Company to a maximum amount base --- d on the lesser of: (i) a percentage of eligible costs, plus a percentage of working capital requirements for the project in certain instances, and (ii) a specified amount. The Company must meet certain conditions of assistance, which are specific to each agreement and project, including maintaining specified amounts of equity. Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 13 8. General and administration expenses The summary of the Company’s general and administration expenses is as follows: Three months ended December 31 Six months ended December 31 2025 2024 2025 2024 $ $ $ $ Insurance 48 45 95 92 Investor relations 88 37 176 57 Office and general 75 84 145 162 Professional and consulting services 171 162 406 277 Regulatory 5 21 11 25 Rent 5 6 10 13 Salaries, bonus and benefits 570 573 1,111 1,197 Travel 36 41 72 88 998 969 2,026 1,911 9. Share capital and earnings per share a) Authorized The Company has an unlimited number of authorized common shares with no par value. b) Issued capital On February 21, 2025, the Company completed the Share Consolidation in which one (1) new common share was issued for each ten (10) outstanding common shares. Prior to this Share Consolidation, a total of 312,617,854 common shares were outstanding, which have since consolidated into 31,261,781 common shares. Except where otherwise indicated, all historical share numbers and per share amounts have been adjusted on a retroactive basis to reflect this Share Consolidation. As a result of the Share Consolidation and effective February 21, 2025, the exchange basis of the December Warrants and the number of December Warrant Shares obtainable upon exercise of the December Warrants was decreased by a multiple of ten (10), such that a holder of the December Warrants will be required to exercise ten (10) December Warrants to acquire one (1) December Warrant Share at the adjusted price of $0.50 per December Warrant Share. All information in these consolidated financial statements is presented on a post-Share Consolidation basis. As a result of the Share Consolidation, the number, exchange basis or exercise price of all stock options and warrants have been adjusted, to reflect the ten-for-one Share Consolidation. At December 31, 2025, 31,261,781 common shares (June 30, 2025 – 31,261,781) were issued and fully paid. Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 14 10. Other reserves The summary of the Company’s other reserves is as follows: Share-based awards (a) Warrants (b) Other Total $ $ $ $ Balance, June 30, 2024 12,040 12,972 815 25,827 Share-based compensation 280 - - 280 Balance, June 30, 2025 12,320 12,972 815 26,107 Warrants issued - - - - Share-based compensation 80 - - 80 Balance, December 31, 2025 12,400 12,972 815 26,187 a) Share-based awards (i) Stock options On March 20, 2020, the Company adopted a fixed share option plan (“Predecessor Plan”) under which the maximum number of common shares that were issuable pursuant to the exercise of stock options was fixed at 2,150,795 common shares, representing 10% of the issued and outstanding common share --- s as of the date of the implementation of the Predecessor Plan. On March 20, 2024, the Company adopted a new 10% fixed stock option plan (the “New Plan”) that replaced the Predecessor Plan. Under the New Plan a maximum of 3,126,178 common shares are reserved for issuance, representing 10% of the issued and outstanding common shares as of the date of the implementation of the New Plan. The continuity of the Company’s shares reserved for issue under stock options is as follows: Number outstanding Weighted average exercise price # $ Outstanding at June 30, 2024 2,755,024 0.67 Forfeited (88,857) 0.53 Outstanding at June 30, 2025 2,666,167 0.67 Granted 100,000 0.30 Expired (476,167) 0.82 Outstanding at December 31, 2025 2,290,000 0.63 During the three months ended December 31, 2025 and 2024, there were no new stock options granted. During the six months ended December 31, 2025, 100,000 stock options were granted (six months ended December 31, 2024 – none). The options are exercisable at a price of $0.30, vest immediately and will have an expiry date on August 6, 2028. In determining the amount of share-based compensation, the Company used the Black-Scholes option pricing model to establish the fair value of stock options granted. The following assumptions were applied for the stock options granted above: December 31 2025 Risk-free interest rate 2.69% Expected life of options (years) 3.00 Expected annualized volatility 200.65% Expected dividend yield Nil Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 15 10. Other reserves (continued) The number of shares reserved for issue under stock options outstanding and exercisable at December 31, 2025 is as follows: Expiry date Number outstanding Exercise price Number exercisable # $ # April 8, 2026 445,000 1.20 445,000 October 31, 2027 410,000 0.50 410,000 May 27, 2029 1,335,000 0.50 445,000 August 6, 2028 100,000 0.30 100,000 2,290,000 1,400,000 b) Warrants The continuity of the Company’s warrants is as follows: Total # outstanding Weighted average exercise price # $ Outstanding at June 30, 2024 6,000,000 6,000,000 0.50 Outstanding at June 30, 2025 6,000,000 6,000,000 0.50 Outstanding at December 31, 2025 6,000,000 6,000,000 0.50 (i) Private placement December Warrants Pursuant to the December 2023 Offering, the Company issued an aggregate of 60,000,000 December Warrants (Shares reserved for issue under warrants is 6,000,000 post Share Consolidation). Each December Warrant will entitle the holder thereof to acquire one December Warrant Share at a price of $0.50 per December Warrant Share for 36 months following the completion of the December 2023 Offering. The fair value of private placement warrants was estimated using the relative fair value method and the following assumptions: Stock price at time of measurement $0.15 Risk fee interest rate 4.04 Expected life of warrants (years) 3.00 Expected annualized volatility 197.48% Expected dividend yield Nil Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 16 10. Other reserves (continued) The Company’s shares reserved for issue under warrants as of Decembe --- r 31, 2025 is as follows: Issued Outstanding Exercise price Expiry date # # $ Private Placement 6,000,000 6,000,000 0.50 Dec 12, 2026 6,000,000 6,000,000 11. Related parties The summary of the Company’s related party transactions During the three and six months ended December 31, 2025 and 2024 is as follows: a) Compensation of key management personnel Key management personnel (“KMP”) include persons having the authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The KMP of the Company are the members of the Company’s executive management team and Board of Directors. Compensation provided to KMP is as follows: Three months ended December 31 Six months ended December 31 2025 2024 2025 2024 $ $ $ $ Salaries and benefits 168 167 342 334 Directors’ fees 60 60 120 120 Share-based compensation 20 43 40 86 Total 248 270 502 540 b) Payments to related parties As at December 31, 2025, there was $200 directors’ fees (June 30, 2025 – $244) included in accounts payable and accrued liabilities. 12. Net revenue a) The Company generates net revenue from two geographical locations: Three months ended December 31 Six months ended December 31 Net revenue 2025 2024 2025 2024 $ $ $ $ Canada 442 684 1,041 1,336 US 1,991 2,070 4,599 4,581 Total 2,433 2,754 5,640 5,917 Net revenues in each geographical location relate to the sale of the following: • Canada – Dream Water liquid sleep shots, gummies and sleep powder packets, and LivRelief™ pain relief creams • US – Dream Water liquid sleep shots, gummies and sleep powder packets The Company’s non-current assets are all in Canada. Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 17 12. Net revenue (continued) b) Net revenue comprised the following sales: (1) Dream Water® brand sales in both US and Canada; (2) Delivra LivRelief™ brand sales in Canada; and (3) LivRelief™ Infused topical cream licensing sales in Canada. The following table sets forth the disaggregation of the Company’s net revenue from customer listing agreements of the Company’s brands: Three months ended December 31 Six months ended December 31 Net revenue 2025 2024 2025 2024 $ $ $ $ Dream Water® US and Canada 2,182 2,365 5,055 5,026 LivRelief™ 251 344 567 628 LivRelief™ Infused - 45 18 263 Total 2,433 2,754 5,640 5,917 13. Major customers During the three months and six months ended December 31, 2025, the Company reported net revenue from two major customers over 10% of its total net revenue. The customers represented during the three months ended December 31, 2025, approximately $1,251 and $206 (Three months ended December 31, 2024 - $980 and $325). The customers represented during the six months ended December 31, 2025 approximately $2,882 and $605 (Six months ended December 31, 2024 – $2,824) of total net revenue of the Company. 14. Financial instruments and risk The Company thoroughly examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks include foreign exchange risk, credit risk, interest rate risk, and liquidity risk. Where material, these risks are reviewed and monitored by the Board of Directors. The Board of Directors has overall responsibility for the determination of the Company’s risk manage --- ment objectives and policies. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Company’s competitiveness and flexibility. Foreign exchange risk Foreign exchange risk is the risk that the fair value of future cash flows will fluctuate as a result of changes in foreign exchange rates. As at December 31, 2025, the Company is exposed to foreign currency risk through its bank accounts denominated in United States Dollars (“USD”). A 10% appreciation (depreciation) of USD against the CAD, with all other variables held constant, would result in an increase or decrease of $3 (December 31, 2024 - $11) in the Company’s profit and comprehensive profit for the year. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s trade accounts receivable. The Company’s cash and accounts receivable are exposed to credit risk. The risk for cash is mitigated by holding these instruments with highly rated financial institutions. The Company provides credit to its customers in the normal course of business and has mitigated this risk by managing and monitoring the underlying business relationships. As at December 31, 2025, the Company is exposed to credit risk in the amount of the carrying amount of the Company’s cash and accounts receivable. Delivra Health Brands Inc. Notes to the condensed consolidated interim financial statements For the three and six months ended December 31, 2025 and 2024 (Unaudited – Expressed in thousands of Canadian dollars, except share and per share amounts) Page 18 14. Financial instruments and risk (Continued) As at December 31, 2025, the Company’s aging of receivables was approximately as follows: December 31 2025 June 30 2025 $ $ 0 – 60 days 1,682 1,820 Over 60 days 878 1,314 2,560 3,134 Credit concentration As at December 31, 2025, the Company had one major customer whose balances were greater than 10% of total trade receivables accounting approximately for $1,923 (June 30, 2025 - $2,586). Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As at December 31, 2025, the Company is not exposed to any significant interest rate risk. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company manages liquidity risk by maintaining sufficient cash balances to enable settlement of transactions on the due date. Accounts payable and accrued liabilities have maturities of 30 days or less or are due on demand and are subject to normal trade terms. The Company has current assets of $8,043 (June 2025: $9,578) and current liabilities of $2,302 (June 2025: $3,561). The Company addresses its liquidity through debt or equity financing obtained through the sale of convertible debentures and common shares. While the Company has been successful in securing financing in the past, there is no assurance that it will be able to do so in the future. Fair value hierarchy Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy --- are: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and Level 3 – Inputs that are not based on observable market data. During the three and six months period ended December 31, 2025, there were no transfers of amounts between fair value levels. Cash and short-term investments are classified as a Level 1 financial instrument. The Company’s other financial instruments, including accounts receivable, current portion of lease receivable, promissory note and accounts payable and accrued liabilities are carried at cost which approximates fair value due to the relatively short maturity of those instruments. The carrying value of the Company’s non-current portion of lease receivable, loans and borrowings approximate fair value as they bear a market rate of interest.