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Biorem Inc. — Interim / Quarterly Report 2026
May 14, 2026
45371_rns_2026-05-14_9fbb083b-25b5-45d6-a983-bc124f286600.pdf
Interim / Quarterly Report
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Condensed Consolidated Interim Financial Statements of
Biorem Inc.
Periods ended March 31, 2026 and 2025
(Unaudited)
Biorem Inc.
March 31, 2026 and 2025
(unaudited)
Table of contents
Condensed consolidated interim statements of financial position...3
Condensed consolidated interim statements of operations ...4
Condensed consolidated interim statements of comprehensive loss ...5
Condensed consolidated interim statements of changes in shareholders' equity...6
Condensed consolidated interim statements of cash flows ...7
Notes to the condensed consolidated interim financial statements...8-11
The accompanying condensed consolidated interim financial statements of Biorem Inc. 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 standards adopted by the Chartered Professional Accountants of Canada ("CPA Canada") for a review of interim financial statements by an entity's auditor.
Biorem Inc.
Condensed consolidated interim statements of financial position
March 31, 2026 and December 31, 2025
| (In Canadian dollars, unaudited) | Notes | March 31, 2026 | December 31, 2025 |
|---|---|---|---|
| $ | $ | ||
| Assets | |||
| Current assets | |||
| Cash | 9,990,027 | 11,504,755 | |
| Accounts receivable, net of ECL | 9,277,262 | 11,959,919 | |
| Unbilled revenue | 2,905,564 | 3,236,583 | |
| Inventories | 2,346,278 | 1,368,871 | |
| Prepaid expenses and deposits | 4,281,020 | 2,477,834 | |
| 28,800,151 | 30,547,962 | ||
| Non-current assets | |||
| Accounts receivable, net of ECL | 269,232 | 682,131 | |
| Equipment, leasehold improvements and right of use assets | 2,020,877 | 1,826,944 | |
| Deferred tax assets | 453,665 | 519,400 | |
| Total assets | 31,543,925 | 33,576,437 | |
| Liabilities | |||
| Current liabilities | |||
| Accounts payable | 9 | 4,498,136 | 7,953,382 |
| Accrued liabilities | 2,038,176 | 1,837,017 | |
| Lease liabilities | 90,022 | 81,678 | |
| Income taxes payable | 863,467 | 861,628 | |
| Provisions | 8 | 601,335 | 577,735 |
| Unearned revenue | 5,596,025 | 4,589,126 | |
| Interest bearing loans | 7 | 600,153 | 594,170 |
| 14,287,314 | 16,494,736 | ||
| Non-current liabilities | |||
| Interest bearing loans | 7 | 1,110,533 | 1,263,737 |
| Lease liabilities | 849,130 | 892,180 | |
| 1,959,663 | 2,155,917 | ||
| Shareholders' equity | |||
| Common shares | 5,200,461 | 5,200,461 | |
| Contributed surplus | 2,545,506 | 2,529,996 | |
| Accumulated other comprehensive income | 1,490,577 | 1,336,267 | |
| Retained earnings | 6,060,404 | 5,859,060 | |
| Total shareholders' equity | 15,296,948 | 14,925,784 | |
| Total liabilities and shareholders' equity | 31,543,925 | 33,576,437 |
See accompanying notes to condensed consolidated interim financial statements
Biorem Inc.
Consolidated statements of operations
Three months ended March 31, 2026 and 2025
| (In Canadian dollars,unaudited) | Notes | 2026 | 2025 |
|---|---|---|---|
| $ | $ | ||
| Revenue | 6,816,883 | 4,730,400 | |
| Cost of goods sold | 5,424,716 | 3,620,564 | |
| Gross profit | 1,392,167 | 1,109,836 | |
| Expenses | |||
| Sales and marketing | 757,176 | 565,352 | |
| Research and development | 9,989 | 13,988 | |
| General and administration | 440,175 | 457,445 | |
| Other expense | 5 | (122,793) | (21,094) |
| Total operating expenses | 1,084,547 | 1,015,691 | |
| Earnings from operations | 307,620 | 94,145 | |
| Finance costs | 7 | 35,534 | 43,582 |
| Earnings before tax | 272,086 | 50,563 | |
| Income tax | 70,742 | 13,399 | |
| Net earnings | 201,344 | 37,164 | |
| Earnings per share, basic | $ 0.012 | $ 0.002 | |
| Earnings per share, diluted | $ 0.011 | $ 0.002 |
See accompanying notes to consolidated financial statements.
See accompanying notes to condensed consolidated interim financial statements
Biorem Inc.
Condensed consolidated interim statement of comprehensive income (loss)
Three months ended March 31, 2026 and 2025
| (In Canadian dollars, unaudited) | 2026 | 2025 |
|---|---|---|
| $ | $ | |
| Net income | 201,344 | 37,164 |
| Other comprehensive income (loss) | ||
| Item that will not be reclassified into profit and loss | ||
| Foreign currency translation differences on foreign operations | 154,305 | (8,072) |
| Total comprehensive income for the period | 355,649 | 29,092 |
See accompanying notes to condensed consolidated interim financial statements
Biorem Inc.
Consolidated statements of changes in shareholders' equity
Three months ended March 31, 2026 and 2025
| In Canadian dollars | Notes | Common shares | Contributed surplus | Accumulated other comprehensive income(loss) | Retained earnings | Total |
|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | ||
| Balance, as at January 1, 2025 | 5,196,123 | 2,470,191 | 1,831,628 | 1,127,141 | 10,625,083 | |
| Earnings for the period | - | - | - | 37,164 | 37,164 | |
| Foreign currency translation differences on foreign operations | - | - | (8,072) | - | (8,072) | |
| Total comprehensive earnings (loss) for the period | - | - | (8,072) | 37,164 | 29,092 | |
| Stock-based compensation | - | 38,310 | - | - | 38,310 | |
| Balance, as at March 31, 2025 | 5,196,123 | 2,508,501 | 1,823,556 | 1,164,305 | 10,692,485 | |
| Balance, as at January 1, 2025 | 5,200,461 | 2,529,996 | 1,336,267 | 5,859,060 | 14,925,784 | |
| Earnings for the period | - | - | - | 201,344 | 201,344 | |
| Foreign currency translation differences on foreign operations | - | - | 154,305 | - | 154,305 | |
| Total comprehensive earnings for the period | - | - | 154,305 | 201,344 | 355,649 | |
| Stock-based compensation | - | 15,510 | - | - | 15,510 | |
| Balance, as at March 31, 2026 | 5,200,461 | 2,545,506 | 1,490,572 | 6,060,404 | 15,296,943 |
See accompanying notes to condensed consolidated interim financial statements
Biorem Inc.
Condensed consolidated interim statements of cash flows
Three months ended March 31, 2026 and 2025
| (In Canadian dollars, unaudited) | Notes | 2026 | 2025 |
|---|---|---|---|
| $ | $ | ||
| Operating activities | |||
| Net earnings | 201,342 | 37,164 | |
| Items not involving cash: | |||
| Deferred tax expense (recovery) | 70,742 | 14,680 | |
| Depreciation | 91,067 | 134,415 | |
| Accretion lease interest | 16,570 | 19,431 | |
| Stock based compensation | 15,510 | 38,310 | |
| 395,231 | 244,000 | ||
| Change in non-cash operating working capital | |||
| Accounts receivable | 3,167,152 | 5,356,734 | |
| Unbilled revenue | 359,831 | 169,545 | |
| Inventories | (943,655) | (392,305) | |
| Prepaid expenses and deposits | (1,769,275) | (489,434) | |
| Accounts payable | (3,496,878) | (1,071,968) | |
| Accrued liabilities | 158,657 | (301,815) | |
| Income taxes payable | - | ||
| Provisions | 17,846 | (11,198) | |
| Unearned revenue | 981,832 | 1,191,517 | |
| Cash provided by (used in) operations | (1,129,259) | 4,695,076 | |
| Investing activities | |||
| Purchase of equipment, leasehold improvements | (271,346) | (90,835) | |
| (271,346) | (90,835) | ||
| Financing activities | |||
| Repayment to term loan | 7 | (147,220) | (139,757) |
| Payment of lease liabilities | (38,260) | (66,359) | |
| (185,480) | (206,116) | ||
| Foreign exchange gain(loss) on foreign denominated cash | 71,357 | (10,830) | |
| Increase in cash | (1,514,728) | 4,387,295 | |
| Cash beginning of year | 11,504,755 | 5,212,852 | |
| Cash end of period | 9,990,027 | 9,600,147 |
See accompanying notes to condensed consolidated interim financial statements
Biorem Inc.
Notes to the consolidated interim financial statements
March 31, 2026 and 2025
(unaudited)
- General information
BIOREM Inc. ("BIOREM") is a company with its head office domiciled in Canada.
The address of BIOREM's registered office is, 7496 Wellington Road 34, Puslinch, Ontario. The Company's common shares are listed on the Toronto Stock Exchange and trade under the symbol BRM.V. The condensed consolidated interim financial statements of BIOREM comprise BIOREM and its subsidiaries (together referred to as "the Company"). The Company is primarily involved in the manufacturing of a comprehensive line of high efficiency air pollution control systems that are used to eliminate odorous and harmful contaminants.
- Basis of preparation
a) Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements.
These condensed consolidated interim financial statements have been prepared following the same accounting principles and methods of computation as the Company's 2025 annual consolidated financial statements and should be read in conjunction with those audited consolidated financial statements which are available on the System for Electronic Document Analysis and Retrieval ("SEDAR").
These condensed consolidated interim financial statements were approved by the Board of Directors and authorized for issuance on May 14, 2026.
b) Basis of measurement
These condensed consolidated interim financial statements have been prepared on the historical cost basis of accounting, with the exception of financial instruments classified as fair value through profit and loss, which are recorded at fair value.
c) Functional and presentation currency
The functional currency of BIOREM and its subsidiaries is the currency of their primary economic environment. These condensed consolidated interim financial statements are presented in Canadian dollars, which is BIOREM's functional currency. The functional currency of BIOREM's subsidiary located in the United States is the U.S. dollar and the functional currency of BIOREM's subsidiary located in China is the Chinese renminbi.
d) Basis of consolidation
Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries are included in the condensed consolidated financial statements from the date that control commences until the date that control ceases. Accordingly, the consolidated interim financial statements include the accounts of Biorem Technologies Inc., Biorem Environmental (US) Ltd., Biorem Hong Kong, in addition to those of BIOREM. All significant inter-company transactions and balances have been eliminated.
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Biorem Inc.
Notes to the consolidated interim financial statements
March 31, 2026 and 2025
(unaudited)
3. Significant accounting policies
The significant accounting policies used in preparing these condensed consolidated interim financial statements are unchanged from those disclosed in the Company's 2025 annual consolidated financial statements except as set out below, and have been applied consistently to all periods presented in these condensed consolidated interim financial statements. The accounting policies have been applied consistently by the Company's subsidiaries.
4. Segmented information
Management has determined that the Company operates in one reportable segment, which involves the manufacture and sale of pollution control systems.
The Company's revenue and capital assets breaks down geographically as follows:
| Revenue | Capital assets | |||
|---|---|---|---|---|
| March 2026 | March 2025 | March 2026 | March 2025 | |
| $ | $ | $ | $ | |
| Canada | 1,295,792 | 700,012 | 240,438 | 331,676 |
| United States | 4,530,742 | 3,019,325 | 1,780,438 | 1,641,980 |
| Middle East | 576,385 | - | - | - |
| Other | 413,964 | 1,011,063 | - | - |
| Total | 6,816,883 | 4,730,400 | 2,020,876 | 1,973,656 |
5. Other expense
The composition of other expense is as follows:
| Three months ended | ||
|---|---|---|
| March 2026 | March 2025 | |
| $ | $ | |
| Foreign exchange loss (gain) | (122,793) | (21,094) |
| Total | (122,793) | (21,094) |
6. Contingency
From time to time, the Company is subject to legal proceedings and claims arising in the ordinary course of business. Management is of the opinion, based upon information presently available, that it is unlikely that any such liability, to the extent not provided for by insurance or otherwise, would have a material adverse effect in relation to the Company's consolidated financial position, liquidity or results of operations.
Biorem Inc.
Notes to the consolidated interim financial statements
March 31, 2026 and 2025
(unaudited)
- Interest-bearing loans
| Current | Interest rate | Maturity | March 31 2026 | December 31 2025 |
|---|---|---|---|---|
| % | $ | $ | ||
| Current portion term loan | 4.07 | 2026 | 600,153 | 594,170 |
| Non-current | ||||
| Term loan | 4.07 | 12/01/28 | 1,710,686 | 1,857,907 |
| Current portion | 4.07 | 2026 | (600,153) | (594,170) |
| 1,110,533 | 1,263,737 |
On December 1, 2021 the Company secured a $4,000,000 term loan and a $3,000,000 operating line of credit from a Canadian chartered bank. Both the working capital loan and the term loan are secured by a general security agreement and first charge over all the assets of The Company. The term loan is repayable over 84 months in blended payments of $54,893 due on the 15th of each month.
- Provisions
Warranty
At December 31, 2025 $ 577,735
Provisions used during the period -
Provisions made during the period 23,601
At March 31, 2026 $ 601,355
10
Biorem Inc.
Notes to the consolidated interim financial statements
March 31, 2026 and 2025
(unaudited)
9. Financial Instruments
Categories and fair value of financial instruments
| $ | $ | $ | $ | |
|---|---|---|---|---|
| Financial assets | ||||
| Cash | 9,990,027 | 9,990,027 | 11,504,755 | 11,504,755 |
| Accounts receivable | 9,546,444 | 9,546,444 | 12,642,050 | 12,642,050 |
| 19,536,471 | 19,536,471 | 24,146,805 | 24,146,805 | |
| Financial liabilities | ||||
| Accounts payable and accrued liabilities | 6,536,312 | 6,536,312 | 9,790,399 | 9,790,399 |
| Interest bearing loans | 1,710,686 | 1,710,686 | 1,857,907 | 1,857,907 |
| 8,246,998 | 8,246,998 | 11,648,306 | 11,648,306 |
The Company has determined that the fair value of its short term financial assets and liabilities approximates their respective carrying because of the short term maturity of those instruments.
The fair values of the Company's interest bearing loans are determined at amortized cost at the end of the reporting period. The non-performance risk as at March 31, 2026 and December 31, 2025 was assessed to be insignificant.
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