Dynamite Blockchain Corp. — Interim / Quarterly Report 2025

Jun 20, 2025

Dynamite Blockchain Corp.

DYNAMITE BLOCKCHAIN CORP.

(formerly Cryptoblox Technologies Inc.)

Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025 and 2024

(Expressed in Canadian dollars)

(Unaudited)

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2

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed consolidated interim 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 condensed consolidated interim financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of the condensed consolidated interim financial statements.

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DYNAMITE BLOCKCHAIN CORP.

(formerly Cryptoblox Technologies Inc.)

Condensed Consolidated Interim Statements of Financial Position

(Expressed in Canadian dollars, unless otherwise noted)

	Note	April 30, 2025 $	January 31, 2025 $
Assets
Current assets
Cash		2,202	5,108
GST receivable		8,992	4,055
Intangible asset - digital assets	9	3,218	3,138
Investment in securities	5	1	1
Total current assets		14,413	12,302
Non-current assets
Mining equipment	7	890,313	1,034,688
Investment in Kaspa Mining Limited	6	999,944	1,000,000
Total non-current assets		1,890,257	2,034,688
Total assets		1,904,670	2,046,990
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	10	1,400,188	1,374,876
Subscription in advance	11	20,000	-
Due to related parties	12	210,013	178,563
Tax payable		4,332	4,332
Loan payable	13	334,821	321,711
Promissory note	14	400,000	400,000
Total current Liabilities		2,369,354	2,279,482
Long term liabilities
Long term promissory note	14	644,384	600,000
Total liabilities		3,013,738	2,879,482
Shareholders’ (deficit) equity
Share capital	15	51,998,399	51,998,399
Equity reserves		1,340,027	1,098,662
Accumulated other comprehensive loss		(4,734)	(5,574)
Deficit		(54,442,760)	(53,923,979)
Total shareholders’ (deficit) equity		(1,109,068)	(832,492)
Total liabilities and shareholders’ (deficit) equity		1,904,670	2,046,990

Nature of operations and going concern (Note 1)
Subsequent events (Note 22)

Approved and authorized for issuance by the Board of Directors on June 19, 2025:

/s/ "Victor Hui-Fai Ho"
Victor Ho, Audit Committee Chair and Director

/s/ "Akshay Sood"
Akshay Sood, CEO and Director

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DYNAMITE BLOCKCHAIN CORP.

(formerly Cryptoblox Technologies Inc.)

Condensed Consolidated Interim Statements of Loss and Other Comprehensive Loss

(Expressed in Canadian dollars, unless otherwise noted)

	Note	Three months ended April 30, 2025	Three months ended April 30, 2024
Revenue	$	947	$ -
Cost of sales – hosting cost		(1,329)	-
Gross profit		(382)	-
Operating expenses
Amortization	8	-	50,000
Consulting fees		3,000	30,896
Depreciation	7	144,375	-
Foreign exchange loss		(3,920)	2,036
Digital exchange loss	9	867	-
Interest expense	13, 14	57,862	3,233
Management fees	12	30,000	30,000
Office and general		5,742	10,113
Professional fees		39,323	64,228
Share-based compensation	12, 17	241,365	47,372
Total operating expenses		518,344	237,878
Loss before other income		(518,726)	(237,878)
Interest income	4	1	5,918
Loss on investment in associate	6	(56)	-
Net loss for the period		(518,781)	(231,960)
Other comprehensive loss		840	(436)
Net loss and comprehensive loss	$	(517,941)	$ (232,396)
Basic and diluted (loss) income per share	$	(0.00)	$ (0.00)
Weighted average number of shares outstanding		122,014,600	109,266,116

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5

DYNAMITE BLOCKCHAIN CORP.

(formerly Cryptoblox Technologies Inc.)

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (Deficit)

(Expressed in Canadian dollars, unless otherwise noted)

	Notes	Number of Shares	Share Capital Amount $	Equity Reserve $	Accumulated Other Comprehensive Loss $	Deficit $	Total Shareholders' Equity (Deficit) $
Balance, January 31, 2024		109,205,510	50,670,490	666,902	(4,216)	(48,315,854)	3,017,322
Shares issued for debt settlement	15	109,090	60,000	-	-	-	60,000
Stock option expense	17	-	-	47,372	-	-	47,372
Net loss		-	-	-	(436)	(231,960)	(232,396)
Balance, April 30, 2024		109,314,600	50,730,490	714,274	(4,652)	(48,547,814)	2,892,298
Balance, January 31, 2025		122,014,600	51,998,399	1,098,662	(5,574)	(53,923,979)	(832,492)
Stock options expense	17	-	-	241,365	-	-	241,365
Net loss		-	-	-	840	(518,781)	(517,941)
Balance, April 30, 2025		122,014,600	51,998,399	1,340,027	(4,734)	(54,442,760)	(1,109,068)

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

DYNAMITE BLOCKCHAIN CORP.

(formerly Cryptoblox Technologies Inc.)

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian dollars)

	Note	Three months ended April 30, 2025 $	Three months ended April 30, 2024 $
Operating activities
Net loss from continuing operations		(518,781)	(231,960)
Items not involving cash:
Amortization	8	-	50,000
Depreciation	7	144,375	-
Share-based compensation	12, 17	241,365	47,372
Interest income	4	-	(5,918)
Interest expense	13, 14	57,862	-
Loss in investment in associate	6	56	-
Changes in non-cash working capital items:
Accounts payable and accrued liabilities	10	24,944	68,266
Due to related parties	12	31,450	-
Intangible Asset – Digital Asset	9	(80)
GST/HST receivable		(4,937)	(2,664)
Net cash used in operating activities		(23,746)	(74,904)
Financing activities
Subscription in advance	11	20,000	-
Loan payable	13	-	75,000
Net cash provided by financing activities		20,000	75,000
Effect of foreign currency translation		840	(436)
Increase (decrease) in cash		(2,906)	(340)
Cash, beginning		5,108	3,276
Cash, ending		2,202	2,936
Non-Cash investing and financing activities
Share issued for account payable settlement	15		60,000

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

1. Nature of Operations and Going Concern

Dynamite Blockchain Corp. (formerly CryptoBlox Technologies Inc.) (the "Company") was incorporated under the laws of British Columbia on January 16, 2015. The name of the Company changed to Dynamite Blockchain Corp. on November 26, 2024. The Company's shares are listed on the Canadian Securities Exchange (the "Exchange") under the symbol "KAS" (formerly BLOX). The Company's registered records office is 6th floor – 905 West Pender Street, Vancouver, BC V6C 1L6.

Dynamite Blockchain Corp. is a blockchain technology and infrastructure company.

On November 1, 2023, the Company completed a 10:1 consolidation of its total issued and outstanding shares. No fractional shares were issued. All fractional shares that resulted from the consolidation were rounded up or down to the nearest whole number. All share figures and references have been retroactively adjusted to reflect the share consolidation.

Going concern uncertainty

These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will continue to realize its assets and discharge its obligations and commitments in the normal course of operations. During the three months ended April 30, 2025, the Company incurred a net comprehensive loss of $517,941 (April 30, 2024 – net comprehensive loss of $232,396) and as at April 30, 2025 had a working capital deficiency of $2,354,941 (January 31, 2025 – working capital of $2,267,180) and has accumulated losses of $54,442,760 (January 31, 2025 - $53,923,979) since its inception. The losses limit the Company's ability to fund its operations.

The Company expects to incur further losses in the development of its new business. The Company does not have sufficient cash to sustain operations for the next twelve months without additional financing. The Company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management estimates that the Company will raise sufficient funds to maintain its operations and activities for the upcoming year. Although the Company has been successful in the past in raising funds to continue operations, there is no assurance it will be able to do so in the future.

These material uncertainties may cast significant doubt as to the Company's ability to continue as a going concern.

These condensed consolidated interim financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the going concern assumption was deemed inappropriate. Such adjustments could be material.

1. Basis of Presentation

Statement of Compliance

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting of the International Financial Reporting Standards" ("IFRS") as issued by the International Accounting Standards Board ("IASB") on a going concern basis, following the same accounting policies, including estimates and judgments and methods of application as those disclosed in the annual audited consolidated financial statements for the year ended January 31, 2025, except as described in the notes to the condensed consolidated interim financial statements. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements of the Company for the year ended January 31, 2025, which have been prepared in accordance with IFRS.

These condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on June 19, 2025.

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

Basis of Measurement

These condensed consolidated interim financial statements have been prepared on an accrual basis and are based on historical cost basis except for certain financial assets measured at fair value. The consolidated financial statements are presented in Canadian dollars, unless otherwise noted, which is the Company's functional currency. The functional currency of CryptoPlug Technologies Inc., Optimal CP Inc., and Red Water Acquisition Corp. is the Canadian dollar. The functional currency of 1Linx Ltd. is the United States dollar and the currency translation adjustment is recognized through other comprehensive income. The preparation of these condensed consolidated interim financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

Basis of Consolidation

These condensed consolidated interim financial statements include the accounts of the Company and its wholly owned subsidiaries:

Company Name	Country of Incorporation	Functional Currency	Business Activity	Ownership % as at January 31, 2025 and 2024
Red Water Acquisition Corp.	Canada	Canadian Dollar	Digital Asset Mining	100%
1Linx Ltd.	U.S.A.	U.S. Dollar	Blockchain Technology	100%
CryptoPlug Technologies Inc.	Canada	Canadian Dollar	Application Technology	100%
Optimal CP Inc.	Canada	Canadian Dollar	Digital Mining	100%

All intercompany transactions and balances have been eliminated on consolidation.

3. Material Accounting Policy Information

The material accounting policies applied to these condensed consolidated interim financial statements are the same as those applied to the Company's audited consolidated financial statements for the year ended January 31, 2025.

4. Loan Receivable

On April 13, 2022, the Company advanced a $200,000 unsecured arm's length promissory note receivable bearing interest at 12% per annum and a maturity date of December 31, 2022. The Company granted borrower an extension and the borrower has agreed to pay a penalty of $20,000 with accrued interest up to the date the amount is paid in full. The Company recognized interest income of $Nil for the three months ended March 31, 2025 (March 31, 2024: $5,918). During the year ended January 31, 2025, the Company has written off the entire loan receivable balance due to on-going default and no interest or principal repayment since the funds were advanced. As of April 30, 2025 and Jan 31, 2025, loan receivable balance is $Nil.

5. Investment in Securities

a) Investment in Voltaire Services Corp.

April 30, 2025 and January 31, 2025
	Cost $	Fair Value $

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Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the three months ended April 30, 2025
(Expressed in Canadian dollars, unless otherwise noted)

Voltaire Services Corp. - 1,000 common shares
1 1

6. Investment in Associate

a) Investment in Kaspa Mining Ltd.

On January 30, 2025, the Company completed a Securities Exchange Agreement to acquire a 20% equity interest in Kaspa Mining Limited (“KML”) for $1,000,000. The fair value of this investment at acquisition is based on the fair value of the promissory note issued (Note 14). The investment is accounted for using the equity method as the Company has significant influence over KML through its 20% ownership and right-of-first refusal on any other acquisitions of KML. As at January 31, 2025, the investment in KML is $1,000,000.

As of April 30, 2025, the Company holds a 20% equity interest in Kaspa Mining Limited (“KML”), accounted for using the equity method. The carrying amount of the investment in KML was $999,944 (January 31, 2024 – $1,000,000). During the three months ended April 30, 2025, KML incurred a net loss of $280. The Company’s proportionate share of the loss was $56, which has been recognized in the consolidated statement of loss and comprehensive loss under “loss from investment in associate.”

Summary of unaudited financial information of investment in associates:

As at	April 30, 2025	January 31, 2025
		$
Current assets	4,036,815	4,028,720
Non-current assets	-	-
Current liabilities	16,574	7,079
Non-current liabilities	-	-

7. Mining Equipment

IceRiver Miners

On November 13, 2024, the Company completed an asset purchase agreement with 1001038815 Ontario Inc. to purchase five (5) IceRiver KS3 Kaspa mining units (“IceRiver Miners”). Following the closing of this transaction, the Company and the Vendor have entered into a Management Services Agreement (the “MSA”) to provide for the hosting, set up, operations and ongoing maintenance, of the Miners at a rate of $0.055 kW per hour.

As consideration for the Agreement, the Company has issued 11,000,000 common shares at a fair value of $0.10 per share for a transaction value of $1,100,000. The Company also paid a finder’s fee of 550,000 common shares at a fair value of $0.10 per share for total consideration of $55,000. On November 13, 2024, the date the shares were issued, the fair value of the common shares was estimated at $0.10 per share after applying a discount for lack of marketability, discount factor for restrictions to the market price of the shares and a large volume discount.

The Company determined that this acquisition was an asset acquisition, based on the analysis of the inputs, processes and outputs, given that the Company has acquired only IceRiver Miners. The Company does not have control over the inputs and processes as they are managed by 1001038815 Ontario Inc. which continues to operate independently from the Company. The output of a digital asset is dependent on the inputs and processes which are managed and controlled by 1001038815 Ontario Inc. through services provided.

Red Water Acquisition Corp. Miners

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

On June 29, 2023, the Company completed the acquisition of Red Water Acquisition Corp. ("Redwater"), through which it acquired 133 ASIC miners. The Company has taken an impairment loss on the 133 ASIC miners in the amount of $332,500 during the year ended January 31, 2025 (2024 - $Nil). The recoverable value of these miners has been assessed as $nil as at year end due to the events outlined in Note 9.

	Amount ($)
Cost
Acquired on June 29, 2023 Redwater Miners	332,500
Balance at January 31, 2024	332,500
Balance at April 30, 2024	332,500
Acquired on November 13, 2024 IceRiver Miners	1,155,000
Impairment of equipment	(332,500)
Balance at January 31, 2025	1,155,000
Balance at April 30, 2025	1,155,000
Accumulated Depreciation
Addition – IceRiver Miners	120,312
Balance at January 31, 2025	120,312
Addition – IceRiver Miners	144,375
Balance at April 30, 2025	264,687
Net Book Value
Balance at January 31, 2025	1,034,688
Balance at April 30, 2025	890,313

8. Intangible Asset - Technology License

a) Crypto Green Tech Inc. Patent License

On November 17, 2023, the Company has entered into a 4-year patent license agreement with Crypto Green Tech Inc., ("Crypto Green") an Ontario Corporation, whereby the Company has acquired a four-year royalty-free, assignable, worldwide license to develop and distribute products based on Crypto Green's crypto mining hybrid solar and wind tree with water reservoir system. Crypto Green holds the rights to a patent application submitted with the International Bureau of World Intellectual Property Organization respecting the Renewable Energy Powered Crypto Mining Technology. The amortization period for the Crypto Green patent license is 4 years.

In consideration for the license agreement, the Company has issued 40,000,000 of its common shares to Crypto Green's shareholders. A finder's fee of 2,800,000 common shares was issued to the party that introduced Crypto Green to the Company. The fair value of the consideration was $0.25 per common share for a total of $1,070,000, $1,000,000 for the Patent license and $70,000 for the share issuance cost. The Crypto Green Patent license was fairly valued at $800,000 on the date of purchase and recognized a $200,000 impairment on intangible during the year ended January 31, 2024. The Company has taken a full impairment of $566,667 during the year ended January 31, 2025 due to the delay in creating a proto-type and getting into production and risk of adoption of this new technology. The three months ended April 30, 2025 had an amortization of Nil (April 30, 2024: $50,000).

Cost:
Additions	$ 1,000,000
Impairment	(200,000)
Balance, January 31, 2024	$ 800,000
Impairment	(566,667)

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

Balance, January 31, 2025	$ 233,333
Accumulated Amortization:
Additions	$ 33,333
Balance, January 31, 2024	33,333
Additions	200,000
Balance, January 31, 2025	$ 233,333
Net Book Value:
Balance, January 31, 2024	$ 766,667
Balance, January 31, 2025	$ -
Balance, April 30, 2025	$ -

9. Intangible Assets – Intellectual Property

a) Digital Assets

On November 13, 2024, the Company completed an asset purchase agreement with 1001038815 Ontario Inc. (the "Vendor") for the acquisition of five (5) IceRiver KS3 Kaspa mining units (the "Miners"). Concurrent with the closing of this transaction, the Company and the Vendor entered into a Management Services Agreement (the "MSA"), under which the Vendor agreed to host, set up, operate, and maintain the Miners on behalf of the Company. Pursuant to the MSA, the Miners were operational between November 21, 2024, and January 31, 2025, during which time they produced a total of 16,515 Kaspa tokens. As of January 31, 2025, the fair market value of each Kaspa token was $0.19, resulting in a total value of $3,138.

During the three months ended April 30, 2025, the Company produced a total of 9,128 Kaspa tokens and recognized revenue of $947, based on the average market rate during the period. The Company incurred hosting costs of $1,329 related to its mining operations. As of April 30, 2025, the Company held a total of 25,643 Kaspa tokens, with a fair market value of $0.13 per token, resulting in a total carrying value of $3,218. The Company recognized a revaluation loss of $867 on its digital asset holdings due to the change in fair value during the period. This amount has been included in the consolidated statement of loss and comprehensive loss.

b) Red Water Acquisition Corp.

On June 16, 2023, the Company entered into a Share Purchase Agreement (the "Agreement") with Red Water Acquisition Corp ("Red Water") to acquire 100% of the issued and outstanding shares of Red Water. The acquisition is determined to be a business combination. In exchange for 100% of the total issued and outstanding shares of Red Water, the Company will issue 22,000,000 common shares of the Company (the "Consideration Shares"). The Consideration Shares issued in tranches with 11,828,080 Consideration Shares being delivered to the shareholders on Red Water (the "Vendors") upon closing of the Acquisition on June 29, 2023, and the remaining 10,171,920 Consideration Shares to be delivered upon the completion of certain milestones being met by the Vendors and Red Water pursuant to the terms of the Agreement. The fair value of the consideration for the first tranche of 11,828,080 common shares is $1,774,212 at $0.15 per common share. The fair value of the outstanding consideration second and third tranche of 10,171,920 common shares is $.12 per common share for a value of $1,216,921.

The purchase price allocation is as follows:

	Amount ($)	Amount ($)
Purchase Consideration
Shares issued (11,828,080 shares at $0.15 per Share)		1,774,212
Outstanding share (10,171,920 shares at $0.12 per share,		1,216,921

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

discounted at 4.9% over 3 months)
Total Purchase Consideration	2,991,133
Net identifiable assets
Accounts Receivable and other assets	2,401
Equipment – 133 ASIC Miners	332,500
Purchase Contracts	1,607,322
Accounts Payable and Accrued Liabilities	(4,615)
Liability on rights to purchase contracts	(1,607,322)
Total net identifiable assets	330,286
Goodwill	2,660,847
Total Net Assets	2,991,133

On June 16, 2023, the Company signed a share purchase agreement (the "Agreement") to acquire Red Water Acquisition Corp. ("Redwater"). Redwater and its vendors were not able to execute on the milestones pursuant to the terms of the Agreement despite several extensions of the Agreement. On May 15, 2024, the Company entered into an amendment to the Agreement extending the deadline to complete the milestones to June 30, 2024. On June 30, 2024, the Company further extended this date to September 30, 2024.

On October 7, 2024, the Company entered into a Master Service Agreement with True North Data Solutions (True North) to host the 133 Bitmain S19J ASIC Miners and operate the miners from the Agreement. The miners were commissioned but True North did not deposit the bitcoin mined, if any, into the Company's owned wallets. The Company is now in a process of resolving this matter with the Redwater, its vendors and True North. If no resolution can be made soon, the Company may need to take legal action to recover damages incurred.

During the year ended January 31, 2025, the Company has derecognized the obligation to issue shares in the amount of $1,216,921 as the milestones were not achieved by the extended deadline nor were the parties involved able to further extend this timeline. The Company has derecognized the account payable of $1,607,322 related to the purchase option contracts underlying the Agreement as these were not executed by the deadline as well. An equal and offsetting intangible asset of $1,607,322 was fully impaired. Lastly, the company also wrote off the account receivable in the amount of $2,179. During the year ended January 31, 2024, the Company took a goodwill impairment of $2,660,847.

The Company has incurred damages due to the events that have transpired, however, has not recorded a contingent asset as estimate of the amount, timing and likelihood are uncertain at this time. The Company has assessed the risk of liability to be low and cannot estimate the amount, timing and likelihood at this time.

c) Optimal CP Inc.

On November 22, 2021, the Company entered into a share exchange agreement to acquire Optimal CP Inc. ("Optimal"), a company focused on the development and management of crypto mining facilities. As compensation for the acquisition, the Company agreed to issue 5,500,000 common shares at a price of $2.50 per common share, to the shareholders of Optimal, for a deemed transaction value of $13,750,000. On December 8, 2021, the Company closed the acquisition of Optimal CP Inc., by issuing 5,500,000 common shares at a price of $2.50 per common share to the shareholders of Optimal CP Inc., for a deemed transaction value of $13,750,000. There are 3,000,000 of 5,500,000 common shares issued held in an escrow account until the milestones specified in the agreement are met. As at April 30, 2025 and January

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

31, 2025, the 3,000,000 shares remain held in escrow.

10. Accounts Payable and Accrued Liabilities

	April 30, 2025	January 31, 2024
Accounts Payables	$1,196,832	$1,113,566
Accrued Liabilities	203,356	261,310
	$1,400,188	$1,374,876

11. Subscription in Advance

During the three months ended April 30, 2025, the Company raised $20,000 through a private placement recorded as a subscription in advance. As at April 30, 2025, the subscription in advance balance was $20,000.

12. Related Party Transactions

The Company has identified the directors and senior officers as key management personnel.

As at April 30, 2025, the Company owed a balance of $110,063 to the CEO (January 31, 2025 - $78,562). During the three months ended April 30, 2025, the Company expensed 30,000 in management fees for the CEO (April 30, 2024 - 30,000). On March 18, 2024, the company issued 54,545 shares at a fair value per share of $0.32 in exchange for settlement of $30,000 in debt with the CEO (January 31, 2024 - Nil).

On October 30, 2024, the Company issued 2,000,000 restricted share units ("RSUs") with market price of $0.175 per unit to CEO of the Company that vest as follows: (i) 25% to vest four (4) months from issuance; (ii) 25% to vest eight (8) months from issuance; (iii) 25% to vest twelve (12) months from issuance; and (iv) 25% to vest sixteen (16) months from issuance. During the three months ended April 30, 2025, the Company recognized an expense of $89,596 (April 30, 2024 – Nil) (Note 17).

On January 24, 2024, the Company granted stock options to the officers and directors of the company at an exercise price of $0.065 for a term of five years. The options vest over a schedule of three years starting with 25% immediately and 12.5% after each six months, totally 100% vesting in three years. The fair value of the stock options calculated using the Black-Scholes model was $0.055 per stock option.

a) The CEO and director received 2,500,000 stock options. During the three months ended April 30, 2025, the Company expensed $7,962 (April 30, 2024 - $20,777) through the statement of loss and comprehensive loss for vesting stock loss.

b) The CFO received 250,000 stock options. During the three months ended April 30, 2025, the Company expensed $796 (April 30, 2024 - $2,078) through the statement of loss and comprehensive loss for vesting stock.

c) The directors received 100,000 stock options each for a total of 200,000 stock options. During the three months ended April 30, 2025, the company expensed $636 (April 30, 2024 - $1,662) through the statement of loss and comprehensive loss.

13. Loan Payable

a) XLabs Therapeutics Inc. and XLabs Therapeutics (Ont) Inc. Loans

The Company was advanced the following unsecured one-year term loans, bearing interest at 18% per annum, compounded annually. Interest is payable on the maturity date. The loans originally issued to Xlabs Therapeutics (Ont) Inc. ("Xlabs Ont") were extended upon maturity and assigned to

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14

Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

Xlabs Therapeutics Inc. ("Xlabs"), including the accrued interest. Xlabs Ont is the wholly owned subsidiary of Xlabs. As at April 30, 2025, the outstanding was $301,902 (January 31, 2025 – $290,130). During the three months ended April 30, 2025, interest expense was $11,772 (April 30, 2024: 3,232).

Effective Date of Advance	Expiry Date^{1}	Principal Amount	Interest accrued for the three months ended April 30, 2025	Interest accrued for the year ended January 31, 2025	Extended and Assigned	Total Balance April 30, 2025
Xlabs Therapeutics (Ont) Inc.		$	$	$	$	$
January 18, 2024	January 18, 2025	40,000		7,200	(47,200)	-
March 28, 2024	March 28, 2025	75,000	2,071	11,429	(88,500)	-
May 7, 2024	May 7, 2025	60,000	2,633	7,959	-	70,592
May 24, 2024	May 24, 2025	25,000	1,097	3,107	-	29,204
June 25, 2024	June 25, 2025	25,000	1,097	2,712	-	28,809
August 22, 2024	August 22, 2025	30,000	1,317	2,397	-	33,714
Total Xlabs (Ont)		255,000	8,216	34,804	(135,700)	162,320
Xlabs Therapeutics Inc.
January 18, 2025	January 18, 2026	47,200	2,072	326	-	49,598
March 28, 2025	March 28, 2026	88,500	1,484	-	-	89,984
Total Xlabs		135,700	3,556	326	-	139,582
Total			11,772	35,130	(135,700)	301,902

1. Subsequent to April 30, 2025, the Xlab Ont loans that expired were assigned to Xlabs (Note 22).

b) Baiocchi Ventures Inc.

On November 28, 2024, the Company received $22,500 one-year unsecured term loan from Baiocchi Ventures Inc. at an interest rate of 18% payable on maturity. During the three months ended April 30, 2025, interest of $988 was accrued. As at April 30, 2025, the balance outstanding was $24,198 (January 31, 2025: $23,210).

c) 1437160 BC Ltd.

On October 29, 2024, the Company received $8,000 one-year unsecured term loan from 1437160BC Ltd. at an interest rate of 18% payable on maturity. During the three months ended April 30, 2025, interest of $351 was accrued. As at April 30, 2025, the balance outstanding was $8,722 (January 31, 2024: $8,371).

14. Promissory Note

On January 30, 2025, the Company completed the acquisition of 20% equity interest in Kaspa Mining Limited for $1,000,000 (Note 7). The company issued a promissory note for $1,000,000 payable over 30 months as consideration. A payment of $200,000 is due every 6 months from date of issuance with accrued interest at 18% due at the end of the term. The fair value of the promissory note on date of issuance is $1,000,000 as the market interest rate is 18%. During the three months ended March 31, 2025, the Company accrued $44,384 interest on promissory note. As at April 30, 2025, the promissory note outstanding is $1,044,384 and the current portion of this promissory note is $400,000. The promissory note is a level 3 financial liability held at amortized cost.

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

15. Share Capital

Authorized share capital:

Unlimited common shares without par value

Issued and outstanding:

For the three months ended April 30, 2025

During the three months ended April 30, 2025, there were no share transactions.

For the three months ended April 30, 2024

a) On March 11, 2024, the company issued 54,545 shares at the value per share of $0.55 for total consideration for $30,000 for CEO debt conversion.

b) On March 11, 2024, the company issued 54,545 shares at the value per share of $0.55 for total consideration for $30,000 for a consultant debt conversion.

16. Purchase Warrants

The following table summarizes information about the warrants at January 31, 2025 and January 31, 2024. During three months ended April 30, 2025, there were no warrants transactions.

	January 31, 2025		January 31, 2024
	Number of Warrants	Weighted average exercise price $	Number of Warrants	Weighted average exercise price $
Warrants outstanding – beginning of year	3,018,680	6.27	12,849,180	1.55
Expired	(1,560,280)	5.00	(7,600,000)	0.08
Expired	(1,008,400)	10.00	(2,230,500)	0.17
Expired	(450,000)	2.50	-
Warrants outstanding – end of the year	-	-	3,018,680	6.27

On February 11, 2024, 1,560,280 share purchase warrants with an exercise price of $5.00 expired.

On April 1, 2024, 638,000 share purchase warrants with an exercise price of $10.00 expired.

On June 9, 2024, 370,400 shares purchase warrants with an exercise price of $10.00 expired.

On January 17, 2025, 450,000 shares purchase warrants with an exercise price of $2.50 expired.

The following table summarizes information about granted, exercised purchase warrants and outstanding warrants at January 31, 2025.

Date issued	Expiry date	Number of warrants issued	Exercise price	Number of warrants Expired	Number of warrants Outstanding
Feb 11, 2021	Feb 11, 2024	1,560,280	5.00	1,560,280	-
Apr 1, 2021	Apr 1, 2024	638,000	10.00	638,000	-

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16

Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

Jun 9, 2021	Jun 9, 2024	370,400	10.00	370,400	-
Jan 17, 2022	Jan 17, 2025	450,000	2.50	450,000	-
Balance at January 31/ April 30
2025		3,018,680	6.30	3,018,680	-

17. Share Based Compensation

The Company has an equity incentive plan provides for the issuance of share-based compensation through stock options and restricted share units ("RSU") to its directors, officers, consultants and employees. The maximum number of outstanding stock options and RSUs must be no more than 10% of the issued and outstanding shares of the Company at any point in time. The term of the options must be no longer than 10 years and the directors determine the vesting period.

Stock Options

On January 24, 2024, the Company granted 5,700,000 stock options exercisable at $0.065 per share for a period of five years. The options vest over a schedule of three years, starting with 25% immediately and 12.5% after each six months, totaling 100% vesting in three years. The fair value of the stock options is $0.055 per stock option and was calculated using the Black-Scholes model with the following inputs: expected volatility of 278% using the Company's historical performance, stock price of $0.055, expected life of option of 4 years, exercise price of $0.065, dividend yield of nil and a risk-free rate of 3.68%.

On October 31, 2024, 156,250 stock options with a fair value of $0.055 per option were forfeited due to the resignation of a consultant on August 2, 2024. The Consultant had 93,750 stock options that were vested and were exercised on August 12, 2024.

During the three months ended April 30, 2025, the company recognized stock option expense of $17,375 (April 30, 2024: $47,372).

The following table summarizes information about the options at April 30, 2025 and January 31, 2025, and the changes for the periods ended:

	April 30, 2025			January 31, 2025
	Number of options	Weighted average exercise price $	Weighted average remaining life in years	Number of options	Weighted average exercise price $	Weighted average remaining life in years
Beginning of year	4,393,750	0.065		5,700,000	0.065
Forfeiture	-	-		(156,250)	0.065
Stock options exercised	-	-		(1,150,000)	0.065
End of the period	4,393,750	0.065	3.74	4,393,750	0.065	3.98

Restricted Share Units

On October 30, 2024, the Company issued 5,000,000 restricted share units ("RSUs") with market price of $0.175 per unit, 2,000,000 to the CEO and 3,000,000 to two consultants of the Company that vest as follows: (i) 25% to vest four (4) months from issuance; (ii) 25% to vest eight (8) months from issuance; (iii) 25% to vest twelve (12) months from issuance; and (iv) 25% to vest sixteen (16) months from issuance. During the three months ended April 30, 2025, the Company incurred an expense of $223,990 (2024: Nil).

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Dynamite Blockchain Corp.

(formerly Cryptoblox Technologies Inc.)

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended April 30, 2025

(Expressed in Canadian dollars, unless otherwise noted)

18. Commitments and Contingencies

a) As a result of a Temporary Order issued on November 26, 2018, issued by the B.C. Securities Commission against certain consultants, the Company is reviewing a private placement that closed in June 2018. The Order cites improper use of the "consultant's exemption" contained in section 2.24 of National Instrument 45-106 and the payment of consulting fees to the persons named in the Order. The June 2018 private placement involved multiple consultants named in the Order. Following completion of the private placement, the Company paid consulting fees to these consultants. There is a risk that the Commission in its review may view the private placement to the consultants and the use of proceeds, as an improper use of s.2.24 and an illegal distribution of shares. If such is adjudicated to be the case, the Company may be required to take remedial action. Such action, if required, cannot as at April 30, 2025 be determined.

b) On July 11, 2019, two individuals filed a Notice of Civil Claim in the Supreme Court of British Columbia seeking certification for a class action against the Company and numerous other parties. On July 2, 2024, the class action was certified. Management is not able to quantify the impact of this action and has no further update as at April 30, 2025.

19. Financial Instruments

The Company's financial instruments consist of cash, loan receivable, investment in securities, investment in Kaspa Mining Limited, intangible asset – digital assets, accounts payable and accrued liabilities, liability on purchase contracts, obligation to issue shares, due to related parties, loans payable, and the promissory note.

The Company classifies its fair value measurements in accordance with an established hierarchy that prioritizes the inputs in the valuation techniques used to measure fair value as follows:

• 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.

The carrying value of cash, loan receivable, accounts payable and accrued liabilities, due from related parties, and liability on purchase contracts, and loan payables approximate their respective fair values because of their short-term nature.

The Company's intangible asset – Digital Assets are recorded at fair value using significant other observable inputs and therefore classified as level 2 within the fair value hierarchy.

The Company's investment in securities, investment in Kaspa Mining Limited, obligation to issue shares, and promissory note are classified as FVTPL and are recorded at fair value using unobservable inputs and are therefore classified as level 3 within the fair value hierarchy.

The Company's risk exposures and the impact on the Company's financial instruments are summarized below:

a) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

b) Liquidity Risk

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18

Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the three months ended April 30, 2025
(Expressed in Canadian dollars, unless otherwise noted)

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company currently settles its financial obligations with cash. The ability to do this relies on the Company raising debt or equity financing in a timely manner and by maintaining sufficient cash in excess of anticipated needs. Liquidity risk is assessed as high.

c) Loss of access risk

The loss of access to the private keys associated with the Company's digital assets holdings may be irreversible and could adversely affect an investment. Digital assets controllable only by an individual that possesses both the unique public key and private key or key relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed or otherwise compromised and no backup is accessible, the Company may be unable to access the digital assets. The Company has assessed this risk as low due to no occurrence since inception of business.

d) Market Risk

Market risk is the risk of loss that may arise from changes in market factors such as Kaspa prices, interest rates, and foreign exchange rates.

Kaspa Price Volatility

As of April 30, 2025, the Company held a digital currency balance in Kaspa Coins that is subject to market pricing and price volatility. Kaspa prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and the political and economic conditions. Further, Kaspa has no underlying backing or contracts to enforce recovery of invested amounts. Our profitability is related to the current and future market price of Kaspa; in addition, the Company may not be able to liquidate our holdings of Kaspa at our desired price if necessary. Investing in Kaspa is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends. Kaspa has a limited history, its fair values have historically been volatile, and the value of our Kaspa holdings could decline rapidly. A decline in the market price of Kaspa could negatively impact our future operations. Historical performance of Kaspa is not indicative of its future performance. We recorded a loss on revaluation of digital currencies in the amount of $867 during the three months ending April 30, 2025. The Company does not hedge its Kaspa holdings, but is actively monitoring Kaspa pricing, market volatility and the Company's liquidity needs to determine an appropriate risk mitigation strategy on a continuous basis.

Interest Rate Risk

The interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. We are exposed to interest rate risk on the variable rate of interest we earn on bank deposits. The interest rate risk on bank deposits is insignificant, as our deposits are all short-term. The interest on our loan payable and promissory note is fixed and therefore has limited exposure to changes in interest rates.

Foreign Exchange Rate Risk

Foreign exchange rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has exposure to currency risk from assets and liabilities denominated in US dollars. The Company does not use derivative instruments to hedge exposure to foreign exchange rate risk. However, management believes that the risk from fluctuations in foreign exchange rates is not significant.

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19

Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the three months ended April 30, 2025
(Expressed in Canadian dollars, unless otherwise noted)

1. Capital Management

The Company's capital structure consists of all components of shareholders' equity. The Company's objective when managing capital is to maintain adequate levels of funding to support the current operations and the necessary corporate and administrative functions to facilitate these activities. This is done primarily through equity financing. future financings are dependent on market conditions and there can be no assurance the Company will be able to raise funds in the future.

The Company invests all capital that is surplus to its immediate operational needs in digital assets in various accounts. There were no changes to the Company's approach to capital management during the year. The Company is not subject to externally imposed capital requirements. There have been no changes to the Company's capital management policy during the three months ended April 30, 2025.

1. Segmented Reporting

During the three months ended April 30, 2025, the Company generated revenue of $947 (April 30, 2024: $Nil). All revenue was earned in Canada. The Company operated in one operating segment, which is the mining business.

1. Subsequent Events

The Company entered into several assignments and loan extension agreements where Xlabs Therapeutics (Ont.) Inc. assigned its loan to Xlabs Therapeutics Inc. and extended the balances for a one-year term at an interest rate of 18%, on May 7, 2025 a balance of $70,800, and on May 24, 2025 a balance of $29,500.

On May 2, 2025, the Company entered into a loan agreement with Xlabs Therapeutics Inc. for an amount of $50,000 with a one-year term at an interest rate of 18%. On May 16, 28 and 30, 2025 the Company received a further $25,000, $40,000 and $40,000 respectively from Xlabs Therapeutics Inc. for additional loans with a one-year term at an interest rate of 18%.

On May 12, 2025, the Company acquired 100% of the outstanding common shares of Kaspa Secure Technologies Inc. (Kaspa Secure) for 80,000,000 common shares of the Company at a deemed price of $0.06 for a deemed transaction value of $4,800,000. Kaspa Secure's blockchain solutions include an IMME Wallet with an integrated AI-driven biometric authentication and compliance tool.