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Dynamite Blockchain Corp. — Interim / Quarterly Report 2026
Dec 23, 2025
47277_rns_2025-12-23_81d0fed6-66e3-4e75-9a29-874010b9d307.pdf
Interim / Quarterly Report
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Dynamite Blockchain Corp.
DYNAMITE BLOCKCHAIN CORP.
(formerly Cryptoblox Technologies Inc.)
Condensed Consolidated Interim Financial Statements
For the three and nine months ended October 31, 2025 and 2024
(Expressed in Canadian dollars)
(Unaudited)
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.
DYNAMITE BLOCKCHAIN CORP.
(formerly Cryptoblox Technologies Inc.)
Condensed Consolidated Interim Statements of Financial Position
(Expressed in Canadian dollars, unless otherwise noted)
| | Note | October 31, 2025
$ | January 31, 2025
$ |
| --- | --- | --- | --- |
| Assets | | | |
| Current assets | | | |
| Cash | | 453,660 | 5,108 |
| Deposit and prepaid | | 115,932 | |
| GST receivable | | 23,046 | 4,055 |
| Intangible asset - digital assets | 9 | 2,132 | 3,138 |
| Investment in securities | 5 | 1 | 1 |
| Total current assets | | 594,771 | 12,302 |
| Non-current assets | | | |
| Mining equipment | 7 | 601,563 | 1,034,688 |
| Investment in Kaspa Mining Limited | 6 | 993,936 | 1,000,000 |
| Intangible asset - digital assets | 9 | 24,274,600 | - |
| Intangible asset – digital technology | 8 | 4,500,000 | - |
| Total non-current assets | | 30,370,099 | 2,034,688 |
| Total assets | | 30,964,870 | 2,046,990 |
| Liabilities and shareholders’ equity | | | |
| Current liabilities | | | |
| Accounts payable and accrued liabilities | 10 | 445,226 | 1,374,876 |
| Subscription in advance | 11 | - | - |
| Due to related parties | 12 | 274,489 | 178,563 |
| Tax payable | | 4,332 | 4,332 |
| Loan payable | 13 | 60,579 | 321,711 |
| Promissory note | 14 | 200,000 | 400,000 |
| Total current Liabilities | | 984,626 | 2,279,482 |
| Long term liabilities | | | |
| Long term promissory note | 14 | 529,600 | 600,000 |
| Total liabilities | | 1,514,226 | 2,879,482 |
| Shareholders’ equity (deficit) | | | |
| Share capital | 15 | 62,845,899 | 51,998,399 |
| Equity reserves | | 1,172,461 | 1,098,662 |
| Accumulated other comprehensive income (loss) | | 20,822,655 | (5,574) |
| Deficit | | (55,390,371) | (53,923,979) |
| Total shareholders’ equity (deficit) | | 29,450,644 | (832,492) |
| Total liabilities and shareholders’ equity (deficit) | | 30,964,870 | 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 December 23, 2025:
/s/ “Victor Hui-Fai Ho”
/s/ “Akshay Sood”
Victor Ho, Audit Committee Chair and Director
Akshay Sood, CEO and Director
DYNAMITE BLOCKCHAIN CORP.
(formerly Cryptoblox Technologies Inc.)
Condensed Consolidated Interim Statements of Income (Loss) and Other Comprehensive Income (Loss)
(Expressed in Canadian dollars, unless otherwise noted)
| Three months ended October 31, 2025 $ | Three months ended October 31, 2024 $ | Nine months ended October 31, 2025 $ | Nine months ended October 31, 2024 $ | |
|---|---|---|---|---|
| Revenue | $ - | $ - | $ 947 | $ - |
| Cost of sales – hosting cost | - | - | 1,329 | - |
| Gross profit | - | - | (382) | - |
| Expenses | ||||
| Advertising | 1,510 | - | 1,510 | - |
| Amortization (Note 8) | - | 50,000 | - | 150,000 |
| Consulting fees (Note 7) | 95,851 | 12,088 | 101,851 | 74,768 |
| Depreciation (Note 7) | 144,375 | - | 433,125 | - |
| Foreign exchange loss (gain) | 578 | 624 | (3,173) | 3,027 |
| Interest expense (Note 13,14) | 55,232 | 17,123 | 179,585 | 32,659 |
| Management fees (Note 12) | 30,000 | 30,000 | 90,000 | 90,000 |
| Office and general | 11,202 | 3,482 | 22,990 | 46,678 |
| Professional fees | 34,625 | 29,882 | 115,887 | 107,752 |
| Share-based compensation (Note 12, 17) | 108,037 | 28,539 | 518,174 | 122,829 |
| Total expenses | 481,410 | 171,738 | 1,459,949 | 657,595 |
| Loss before other income | (481,410) | (171,738) | (1,460,331) | (657,595) |
| Other income | ||||
| Interest income (Note 4) | - | 6,049 | 3 | 18,348 |
| Loss on investment in associate (Note 6) | (4,770) | - | (6,064) | - |
| Net loss for the period | (486,180) | (165,689) | (1,466,392) | (639,247) |
| Other comprehensive income (loss) | ||||
| Currency Translation (loss) gain | (218) | (133) | 582 | (648) |
| Digital exchange gain (loss) | 14,966,168 | - | 20,827,647 | - |
| Net income (loss) and comprehensive income (loss) for the period | $ 14,479,770 | $ (165,822) | $ 19,361,837 | $ (639,895) |
| Basic and diluted income (loss) per share | $ 0.07 | $ (0.00) | $ 0.12 | $ (0.01) |
| Weighted average number of shares outstanding | 200,507,807 | 110,259,318 | 161,911,699 | 109,611,494 |
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 |
| Shares issued for stock options exercised | 1,150,000 | 138,000 | (63,250) | 74,750 | |||
| Stock option expense | 17 | - | - | 122,829 | - | - | 122,829 |
| Net loss | - | - | - | (648) | (639,247) | (639,895) | |
| Balance, October 31, 2024 | 110,464,600 | 50,868,490 | 726,481 | (4,864) | (48,955,101) | 2,635,006 | |
| Balance, January 31, 2025 | 122,014,600 | 51,998,399 | 1,098,662 | (5,574) | (53,923,979) | (832,492) | |
| Share issued for Kaspa Secure acquisition | 8 | 80,000,000 | 4,500,000 | 4,500,000 | |||
| Share issued for MOT token | 9 | 37,000,000 | 1,850,000 | 1,850,000 | |||
| Share issued for private placement | 50,000,000 | 2,500,000 | 2,500,000 | ||||
| Share issued for mPWR token acquisition | 5,000,000 | 375,000 | 375,000 | ||||
| Share issued for Kasya token acquisition | 15,600,000 | 1,170,000 | 1,170,000 | ||||
| Stock option vested | 17 | 46,479 | 46,479 | ||||
| Restricted Share Unit vested | 17 | 471,695 | 471,695 | ||||
| Stock option exercised | 17 | 125,000 | 15,000 | (6,875) | 8,125 | ||
| Restricted Shares Unit exercised | 17 | 2,500,000 | 437,500 | (437,500) | - | ||
| Net Income (Loss) | - | - | - | 20,828,229 | (1,466,392) | 19,361,837 | |
| Balance, October 31, 2025 | 312,239,600 | 62,845,899 | 1,172,461 | 20,822,655 | (55,390,371) | 29,450,644 |
DYNAMITE BLOCKCHAIN CORP.
(formerly Cryptoblox Technologies Inc.)
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian dollars)
| | Note | Nine months
October 31,
2025
$ | Nine months ended
October 31,
2024
$ |
| --- | --- | --- | --- |
| Operating activities | | | |
| Net loss from continuing operations | | (1,466,392) | (639,247) |
| Items not involving cash: | | | |
| Amortization | 8 | - | 150,000 |
| Depreciation | 7 | 433,125 | - |
| KASPA coin income | 9 | (947) | - |
| Share-based compensation | 12,17 | 518,174 | 122,829 |
| Interest income | 4 | - | (18,016) |
| Interest expense | 13,14 | 169,737 | - |
| Loss in investment in associate | 6 | 6,064 | - |
| Changes in non-cash working capital items: | | | |
| Accounts payable and accrued liabilities | 10 | (921,893) | 79,585 |
| Deposit and prepaid expenses | | (115,932) | - |
| Due to related parties | 12 | 95,926 | 2,063 |
| GST/HST receivable | | (18,991) | 14,992 |
| Net cash used in operating activities | | (1,301,129) | (287,794) |
| Financing activities | | | |
| Subscription in advance | 11 | 2,500,000 | - |
| Proceeds from exercise of options | | - | 74,750 |
| Promissory notes paid | 14 | (400,000) | - |
| Loan payable | 13 | (300,901) | 223,000 |
| Net cash provided by financing activities | | 1,799,099 | 297,750 |
| Investing activities | | | |
| mPWR token acquisition | 9 | (50,000) | - |
| Net cash provided by investing activities | | (50,000) | - |
| Effect of foreign currency translation | | 582 | (648) |
| Increase (decrease) in cash | | 448,552 | 9,308 |
| Cash, beginning | | 5,108 | 3,276 |
| Cash, ending | | 453,660 | 12,584 |
| Non-Cash investing and financing activities | | | |
| Share issued for account payable settlement | 15 | | 60,000 |
| Kaspa Secure Acquisition | 8 | 4,500,000 | |
| MOT token acquisition | 9 | 1,850,000 | |
| MOT token revaluation | 9 | 11,779,000 | |
| mPWR token acquisition | 9 | 375,000 | |
| mPWR token revaluation | 9 | 611,000 | |
| KASYA token acquisition | 9 | 1,170,000 | |
| KASYA token revaluation | 9 | 8,439,600 | |
| Kaspa Coin revaluation loss | 9 | (1,953) | |
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 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 15th Floor - 1111 W Hastings Street, Vancouver, BC V6E 2J3.
Dynamite Blockchain Corp. is a blockchain technology and infrastructure company focused on building shareholder value through its Blockchain Ecosystem Strategy, which is comprised of three (3) primary divisions: Holdings, Products and Services.
Holdings
The Holdings Division is foundation of the Blockchain Ecosystem Strategy. As a natural evolution of the Company's Kaspa focus, the Holdings Division focuses on acquiring utility-driven tokens that combine scarcity with real-world adoption and monetization. It is the Company's conviction that the highest digital asset value growth will come from active participation and engagement, rather than just passive speculation of its Holdings. Therefore, the Company not only acquires strategic coins and tokens it believes will have exponential value growth, but it also then vertically integrates the digital assets within its Holdings into its Products and Services Divisions. The Company believes that this unique approach to acquiring and integrating high-utility, scarce tokens, positions the Company Division as a differentiated driver of long-term value creation.
The Holdings Division forms the foundation of the Company's Blockchain Ecosystem Strategy by acquiring utility-driven digital assets that combine scarcity with real-world adoption. Previously, the Company held a single digital asset, Kaspa (KAS). During the nine months ended October 31, 2025, the Company expanded its Holdings through the addition of three utility-based tokens—Masters of Trivia (MOT), mPWR, and Kasya—consistent with its strategy to broaden and vertically integrate high-utility digital assets into its ecosystem.
As at October 31, 2025, the Company's Holdings Division consists of four digital assets: Kaspa (KAS), a high-throughput proof-of-work token utilizing blockDAG architecture with scarcity characteristics similar to Bitcoin; Masters of Trivia (MOT), a utility token embedded in a consumer application with a significant active user base; mPWR, a utility token associated with an expanding consumer-technology ecosystem; and Kasya, which increases the Company's strategic exposure to the broader Kaspa ecosystem.
Management believes these tokens can be incorporated across the Company's Products and Services Divisions, creating a multiplier effect by enhancing token utility, expanding user adoption, and advancing the Company's vertically integrated Blockchain Ecosystem.
The Company is now actively vetting potential acquisitions to build its Holdings Division. The Company is committed to aggressively expand this Division in a disciplined manner, targeting utility-centric tokens that can be integrated into the Company's vertically aligned Blockchain Ecosystem, as well as adding to their existing positions should those tokens continue to achieve their milestones.
8
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
Kaspa (KAS)
The Company continued operating its Kaspa mining equipment, resulting in an increase in the Company's Kaspa holdings. As at October 31, 2025, the Company held a total of 25,643 Kaspa tokens.
Masters of Trivia (MOT)
During the period, the Company completed the acquisition of 5,500,000 MOT tokens. As previously disclosed, the MOT tokens are subject to contractual holding restrictions over a defined release period.
mPWR utility tokens
During the period, the Company completed the acquisition of 10,000,000 mPWR tokens, further expanding the Company's utility-focused digital asset holdings. As previously disclosed, the mPWR tokens are subject to contractual holding restrictions over a defined release period.
Kasya utility tokens
During the period, the Company completed the acquisition of 220,000,000 Kasya tokens. The Company believes that Kasya represents another utility-based digital asset that may be considered for future integration across the Company's ecosystem, subject to ongoing evaluation.
The Company continues to review additional opportunities to further expand the Holdings Division in a disciplined manner, with a focus on utility-centric digital assets that align with the Company's vertically integrated strategy.
Products
The Products Division develops and acquires products that will be compatible with the digital assets in the Company's Holdings Division. The Company recently acquired Kaspa Secure Technologies Inc. ("Kaspa Secure") for its blockchain solutions and technologies, primarily its IMME Wallet. The Company believes the acquisition of Kaspa Secure could play a key role in expanding Dynamite's Products Division. The Company intends to rebrand and launch the IMME Wallet. The Company's Crypto Green license agreement positioned the Company to produce renewable energy mining products which it still intends to launch and market. The Company intends to continue to acquire or develop additional products intended to further add value to its Blockchain Ecosystem.
Services
The Company plans to build out its Services Division by rolling out offerings built on Kaspa Secure's technology. The strategy is to develop services that include, but are not limited to: Transaction Application Programming Interfaces (APIs) & Compliance Software Development Kits (SDKs). The intention is to create tools that enable third parties to integrate compliance, authentication, and transaction processing directly into their applications using the digital assets in Dynamite's Holdings.
Blockchain Ecosystem
Taken collectively, these three divisions make up the building blocks of Dynamite's Blockchain Ecosystem. With a portfolio of digital asset holdings, products and services, the Company intends to grow value through the price appreciation of the digital assets in its Holding Division, which the Company believes will experience further value appreciation through the integration of those digital assets into its Products and Services. Beyond value appreciation, another benefit to this strategy is the potential revenue generation across the Products and Services Divisions. While the Company
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
believes the primary driver of value for its shareholders will lie in the appreciation of value of the digital assets in its Holdings Division, the Company anticipates that the revenues and cash flows from its Products and Services division could become increasingly material as the Company achieves economies of scale.
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 nine months ended October 31, 2025, the Company incurred a net comprehensive income of $14,479,770 (October 31, 2024 – net comprehensive loss of $165,822) and as at October 31, 2025 had a working capital deficiency of $389,860 (January 31, 2025 – working capital deficiency of $2,267,180) and has accumulated losses of $55,390,371 (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.
2. 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 December 23, 2025.
Basis of Measurement
10
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
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 October 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% |
| Kaspa Secure Technologies inc. 1 | Canada | Canadian dollar | Digital Asset Technology | 100%1 |
All intercompany transactions and balances have been eliminated on consolidation.
$^{1}$ Kaspa Secure Technologies Inc. (Kaspa Secure) was acquired on May 12, 2025 and the acquisition was treated as an asset acquisition even though the company acquired the legal entity of Kaspa Secure Technologies Inc. Kaspa Secure did not have sufficient inputs, processes, and outputs to meet the definition of a business acquisition as Kaspa Secure held the deed to an IMME Wallet Digital Technology.
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 nine months ended October 31, 2025 (October 31, 2024: $18,016). 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 October 31, 2025 and Jan 31, 2025, loan receivable balance is $Nil.
5. Investment in Securities
11
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
a) Investment in Voltaire Services Corp.
| October 31, 2025 and January 31, 2025 | ||
|---|---|---|
| Cost $ | Fair Value $ | |
| 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 October 31, 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 $993,936 (January 31, – $1,000,000). During the nine months ended October 31, 2025, KML incurred a net loss of $30,319. The Company's proportionate share of the loss was $6,064, 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 | October 31, 2025 | January 31, 2025 |
|---|---|---|
| $ | $ | |
| Current assets | 4,027,203 | 4,028,720 |
| Non-current assets | - | - |
| Current liabilities | 35,881 | 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.
12
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
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
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 $nil as at year end due to the events outlined in Note 8.
| Amount ($) | |
|---|---|
| Cost | |
| Acquired on June 29, 2023 Redwater Miners | 332,500 |
| Balance at January 31, 2024 | 332,500 |
| Balance at October 31, 2024 | 332,500 |
| Acquired on November 13, 2024 IceRiver Miners | 1,155,000 |
| Impairment of Redwater equipment | (332,500) |
| Balance at January 31, 2025 | 1,155,000 |
| Balance at October 31, 2025 | 1,155,000 |
| Accumulated Depreciation | |
| Addition – IceRiver Miners | 120,312 |
| Balance at January 31, 2025 | 120,312 |
| Addition – IceRiver Miners | 433,125 |
| Balance at October 31, 2025 | 553,437 |
| Net Book Value | |
| Balance at January 31, 2025 | 1,034,688 |
| Balance at October 31, 2025 | 601.563 |
8. Intangible Asset – digital technology
a) IMME Wallet acquired through Kaspa Secure Technologies Inc.
On May 12, 2025, the Company acquired 100% of the outstanding common shares of Kaspa Secure Technologies Inc. ("Kaspa Secure") in exchange for 80,000,000 common shares of the Company at a deemed price of $0.06 per share, for a total deemed transaction value of $4,800,000. The Company accounted for the transaction as an asset acquisition, based on a fair market value of $4,500,000 or $0.056 per share. The Company recognized an intangible asset of $4,500,000 and assumed a liability for upcoming audit fees estimated at $11,000 into accounts payable. Kaspa Secure's digital asset technology is the IMME Wallet. The Intangible
Kaspa Secure acquisition was treated as an asset acquisition even though the company acquired the legal entity of Kaspa Secure. Kaspa Secure did not have sufficient inputs, processes, and outputs to meet the definition of a business acquisition as Kaspa Secure held the deed to the IMME Wallet Digital Asset Technology.
13
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
b) 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 nine months ended October 31, 2025 had an amortization of Nil (October 31, 2024: $150,000).
| Cost: | ||
|---|---|---|
| Additions | $ | 1,000,000 |
| Impairment | (200,000) | |
| Balance, January 31, 2024 | $ | 800,000 |
| Impairment | (566,667) | |
| 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, October 31, 2025 | $ | - |
c) 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 $1,216,921.
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
The purchase price allocation is as follows:
| Amount ($) | 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, discounted at 4.9% over 3 months) | 1,216,921 | |
| 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 the 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.
d) 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
14
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
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 October 31, 2025 and January 31, 2025, the 3,000,000 shares remain held in escrow.
9. Intangible Assets – Digital Assets
a) MOT Tokens
On July 11, 2025, the Company issued 37,000,000 common shares at $0.05 per share for total consideration of $1,850,000, in connection with the acquisition of 5,500,000 MOT utility tokens. The MOT utility token is a blockchain-based digital asset designed to facilitate transactions, access platform services, and participate in governance features. MOT stands for Masters of Trivia.
As at October 31, 2025, the MOT utility tokens were revalued at $2.48 per token, resulting in a total fair value of $13,629,000 and a gain on digital asset revaluation of $11,779,000, which was recorded in other comprehensive income (loss).
The Company's ability to sell its MOT holdings is restricted as no sales are permitted for the first six months following acquisition, after which tokens will be released in equal monthly tranches over an 18-month period. These restrictions may prevent the Company from liquidating its holdings at the desired time or price, as a result, the holdings of this digital asset are classified as long term.
b) Kaspa Coins
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 nine months ended October 31, 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 October 31, 2025, the Company held a total of 25,643 Kaspa tokens, with a fair market value of $0.08 per token, resulting in a total carrying value of $2,132. The Company recognized a revaluation loss of $1,953 for its digital asset holdings due to the change in fair value during the period. This amount has been included in the other comprehensive income (loss).
c) mPWR Unity Tokens
On October 10, 2025, the Company completed the acquisition of 10,000,000 mPWR utility tokens in exchange for 5,000,000 common shares at deemed price of $0.075 per share and $50,000 cash, in total valued at $425,000. As at October 31, 2025, the mPWR utility tokens were revalued at $0.1036 per token, resulting in a total fair value of $1,036,000 and a gain on digital asset
15
16
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
revaluation of $611,000, which was recorded in other comprehensive income (loss).
The Company's ability to sell its mPWR holdings is restricted: no sales are permitted until March 1, 2026, after which tokens will be released in equal monthly tranches over a 36-month period. These restrictions may prevent the Company from liquidating its holdings at the desired time or price, as a result, the holdings of this digital asset are classified as long term.
This acquisition aligns with the Company's strategy of selectively accumulating high-utility digital assets, enhancing its Blockchain Ecosystem Strategy and potentially increasing shareholder value by integrating these assets into its vertically integrated ecosystem Kasya.
d) Kasya utility tokens
On October 14, 2025, the Company completed the acquisition of 150,000,000 Kasya tokens in exchange for 6,300,000 common shares at a deemed price of $0.75 per share, for a deemed valuation of $472,500. Pursuant to this acquisition, on October 24, 2025, the company acquired 70,000,000 Kasya tokens in exchange for 9,300,000 common shares at deemed price of $0.75 per share for a deemed valuation of $697,500. This Acquisition brings the Company's total Kasya token holdings to 220,000,000 tokens. As at October 31, 2025, the Kasya tokens were revalued at $0.04368 per token, resulting in a total fair value of $9,609,600 and a gain on digital asset revaluation of $8,439,600, which was recorded in other comprehensive income (loss).
The acquisition provides an immediate mark-to-market benefit to the Company's net asset value and is expected to enhance the utility and demand for the Kasya token, potentially accelerating the adoption of Kaspa's network.
10. Accounts Payable and Accrued Liabilities
| October 31, 2025 | January 31, 2024 | |
|---|---|---|
| Accounts Payables | $297,037 | $1,113,566 |
| Accrued Liabilities | 148,189 | 261,310 |
| $445,226 | $1,374,876 |
11. Subscription in Advance
On July 17, 2025, the Company announced a non-brokered private placement (the "Offering") of 50,000,000 units of the Company (each, a "Unit") at a price of $0.05 per Unit, for aggregate gross proceeds of $2,500,000. Each Unit will consist of one (1) common share in the capital of the Company (a "Common Share") and one (1) transferable share purchase warrant (a "Warrant"), each warrant to entitle the holder to purchase one (1) additional Common Share at an exercise price of $0.10 per Common Share for a period of 24 months following the closing of the Offering, subject to acceleration in the event the Common Shares close above $0.25 for a period of five (5) consecutive trading days. The Offering will be completed pursuant to the listed issuer financing exemption (LIFE) under Part 5A of National Instrument 45-106 Prospectus Exemptions and therefore the Common Shares underlying the Units issued in the Offering to Canadian subscribers will not be subject to a hold period in accordance with applicable Canadian securities laws. The Warrants underlying the Units issued in the Offering and any Shares issued upon exercise thereof will be subject to contractual restrictions on resale, expiring four-months and one day from the date of issue of the Warrants.
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
During the nine months ended October 31, 2025, the Company raised $2,500,000 through a private placement. The proceeds were initially recorded as subscription in advance within shareholders' equity until the related securities were issued. During the period, the Company issued 50,000,000 common shares pursuant to this private placement, utilizing the full subscription in advance balance. As at October 31, 2025, the subscription in advance balance was $nil (October 31, 2024 – $nil).
12. Related Party Transactions
The Company has identified the directors and senior officers as key management personnel.
As at October 31, 2025, the Company owed $171,479 to the CEO as accounts payable (January 31, 2025 – $78,562). During the nine months ended October 31, 2025, the Company expensed $90,000 in management fees to the CEO (October 31, 2024 – $90,000). On March 18, 2024, the Company issued 54,545 common shares at a fair value of $0.32 per share in settlement of $30,000 of debt with the CEO (January 31, 2024 – Nil). In addition, the Company owed the CEO $25,000 for directors' fees accrued for services rendered for the year ended January 31, 2025.
As at October 31, 2025, the Company owed $75,000 in directors' and officers' fees accrued for the year ended January 31, 2025, consisting of $25,000 for the CFO and $25,000 each for two other directors (January 31, 2024 – Nil). The $25,000 accrued for the CEO/Director is disclosed in Note above.
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 nine months ended October 31, 2025, the Company recognized an expense of $188,678 (October 31, 2024 – $1,502) (Note 17). On June 30, 2025, 1,000,000 of the RSUs exercised and common shares have been issued.
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 nine months ended October 31, 2025, the Company expensed $21,312 (October 31, 2024 - $53,906) through the statement of loss and comprehensive loss for vesting stock loss.
b) The CFO received 250,000 stock options. During the nine months ended October 31, 2025, the Company expensed $2,131 (October 31, 2024 - $5,391) 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 nine months ended October 31, 2025, the company expensed $1,705 (October 31, 2024 - $4,312) 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%
17
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
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 Xlabs Therapeutics Inc. ("Xlabs"), including the accrued interest. Xlabs Ont is the wholly owned subsidiary of Xlabs. On October 1, 2025, the Company repaid $455,900 representing all principal outstanding and entered into a new loan agreement for the remaining accrued interest of $33,856. As at October 31, 2025, the outstanding balance was $34,340 (January 31, 2025 – $290,130), and interest expense for the nine months ended October 31, 2025, totaled $34,014 (October 31, 2024 – $23,511).
| Effective Date of Advance | Expiry Date | Principal Amount | Interest accrued for the nine months ended October 31, 2025 | Interest accrued for the year ended January 31, 2025 | Extended and Assigned | Total Balance October 31, 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 | 2,841 | 7,959 | (70,800) | - |
| May 24, 2024 | May 24, 2025 | 25,000 | 1,393 | 3,107 | (29,500) | - |
| June 25, 2024 | June 25, 2025 | 25,000 | 1,788 | 2,712 | (29,500) | - |
| August 22, 2024 | August 22, 2025 | 30,000 | 3,003 | 2,397 | (35,400) | - |
| Total Xlabs (Ont) | 255,000 | 11,097 | 34,804 | (300,900) | - | |
| Xlabs Therapeutics Inc. | Paid | |||||
| January 18, 2025 | January 18, 2026 | 47,200 | 5,656 | 326 | (47,200) | 5,982 |
| March 28, 2025 | March 28, 2026 | 88,500 | 8,205 | - | (88,500) | 8,205 |
| May 2, 2025 | May 2, 2026 | 50,000 | 3,773 | - | (50,000) | 3,773 |
| May 7, 2025 | May 7, 2026 | 70,800 | 5,167 | - | (70,800) | 5,167 |
| May16, 2025 | May16, 2026 | 25,000 | 1,714 | - | (25,000) | 1,714 |
| May 24, 2025 | May 24, 2026 | 29,500 | 1,906 | - | (29,500) | 1,906 |
| May 28, 2025 | May 28, 2026 | 40,000 | 2,505 | - | (40,000) | 2,505 |
| May 30, 2025 | May30, 2026 | 40,000 | 2,466 | - | (40,000) | 2,466 |
| June 25, 2025 | June 25, 2026 | 29,500 | 1,440 | - | (29,500) | 1,440 |
| August 22, 2025 | August 22, 2026 | 35,400 | 698 | (35,400) | 698 | |
| October 1,2025 | Loans closed | - | - | (33,856) | ||
| October 2,2025 | October 1,2026 | 33,856 | 484 | - | - | 34,340 |
| Total Xlabs | 489,756 | 34,014 | 326 | (455,900) | 34,340 |
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
| Total | 744,756 | 45,112 | 35,130 | (756,800) | 34,340 |
|---|---|---|---|---|---|
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 nine months ended October 31, 2025, interest of $3,029 was accrued. As at October 31, 2025, the balance outstanding was $26,239 (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 nine months ended October 31, 2025, interest of $592 was accrued. On June 30, 2025, the loan and related interest ($9,863) were fully repaid by way of exercise of stock options (Note 15) and cash. As at October 31, 2025, the outstanding balance was $nil (January 31, 2024: $8,371).
- Promissory Note
On January 30, 2025, the Company completed the acquisition of a 20% equity interest in Kaspa Mining Limited for $1,000,000 (see Note 7). As part of the consideration transferred, the Company issued a promissory note with a principal amount of $1,000,000, repayable over 30 months, requiring payments of $200,000 every six months from the date of issuance, with interest accruing at 18% per annum and payable at the end of the term. The fair value of the promissory note on the issuance date was $1,000,000, as the contractual interest rate approximated the market rate of 18%. On July 29, 2025, the Company entered into an agreement to defer the $200,000 payment originally due on July 30, 2025, to September 5, 2026. On October 3, 2025, the Company made principal repayments totaling $400,000 on the promissory note. For the nine months ended October 31, 2025, the Company recognized interest expense of $129,600 related to the promissory note. As at October 31, 2025, the carrying amount of the promissory note was $729,600, of which $200,000 is presented as a current liability. The promissory note is classified as a Level 3 financial liability and is measured at amortized cost.
- Share Capital
Authorized share capital:
Unlimited common shares without par value
Issued and outstanding:
For the nine months ended October 31, 2025
a) On May 12, 2025, the Company acquired 100% of the outstanding common shares of Kaspa Secure Technologies Inc. ("Kaspa Secure") in exchange for 80,000,000 common shares of the Company, at
19
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
a revalued price of $0.0565 per share, for total consideration of $4,520,000.
b) On June 30, 2025, the Company issued 125,000 common shares upon the exercise of stock options at an exercise price of $0.065 per option, for total consideration of $8,125, which was applied against the loan payable to 1437160 B.C. Ltd.
c) On June 30, 2025, the company issued 2,500,000 common shares for exercise of restricted share units at fair value of $0.175 per unit at grant date for total value of $437,500.
d) On July 11, 2025, the Company issued 37,000,000 common shares at $0.05 per share for total consideration of $1,850,000, in connection with the acquisition of 5,500,000 MOT utility tokens.
e) On September 24, 2025, the Company closed its amended and restated non-brokered private placement under the Listed Issuer Financing Exemption ("LIFE"), issuing 50,000,000 common shares and 50,000,000 warrants for gross proceeds of $2,500,000. The units were priced at $0.05, and each warrant is exercisable at $0.10 for 24 months, subject to acceleration if the common shares trade above $0.25 for five consecutive days. Common shares issued to Canadian subscribers are not subject to a statutory hold period. The warrants and any shares issued on exercise are subject to contractual resale restrictions for four months and one day from issuance.
f) On October 10, 2025, the Company issued 5,000,000 common shares at $0.075 per share and paid $50,000 in cash as total consideration of $425,000 for the acquisition of 10,000,000 mPWR utility tokens.
g) On October 14, 2025, the Company issued 6,300,000 common shares at $0.075 per share for total consideration of $472,500, in connection with the acquisition of 50,000,000 Kasya utility tokens.
h) On October 24, 2025, the Company issued 9,300,000 common shares at $0.075 per share for total consideration of $697,500, in connection with the acquisition of 70,000,000 Kasya utility tokens.
For the nine months ended October 31, 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.
c) On August 1, 2024, the Company issued 25,000 shares for stock options were exercised at an exercise price of $0.065 per stock option for total proceeds of $1,625 and fair value of $1,375.
d) On August 2, 2024, the Company issued 93,750 shares for stock options were exercised at an exercise price of $0.065 per stock option for total proceeds of $6,094 and fair value of $5,156.
e) On August 12, 2024, the Company issued 93,750 shares for stock options were exercised at an exercise price of $0.065 per stock option for total proceeds of $6,094 and fair value of $5,156.
f) On August 20, 2024, the Company issued 937,500 shares for stock options were exercised at an exercise price of $0.065 per stock option for total proceeds of $6,938 and fair value of $51,563.
g) 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 CEO and 3,000,000 to two consultants of the Company that
20
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
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 October 31, 2024, the Company incurred an expense of $3,756.
16. Purchase Warrants
The following table summarizes information about the warrants at October 31, 2025 and January 31, 2025.
| October 31, 2025 | January 31, 2025 | |||
|---|---|---|---|---|
| Number of Warrants | Weighted average exercise price $ | Number of Warrants | Weighted average exercise price $ | |
| Warrants outstanding – beginning of year | 3,018,680 | 6.27 | 3,018,680 | 6.27 |
| Expired | (1,560,280) | 5.00 | (1,560,280) | 5.00 |
| Expired | (1,008,400) | 10.00 | (1,008,400) | 10.00 |
| Expired | (450,000) | 2.50 | (450,000) | 2.50 |
| issued | 50,000,000 | 0.10 | - | - |
| Warrants outstanding – end of the year | 50,000,000 | 0.10 | 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.
On September 24, 2025, in connection with the amended and restated non-brokered private placement described in Note 15(e), the Company issued 50,000,000 common share purchase warrants. Each warrant entitles the holder to acquire one common share at an exercise price of $0.10 for a period of 24 months, expiring on September 24, 2027, and is subject to acceleration if the common shares trade above $0.25 for five consecutive trading days. Using the residual value method, a value of $Nil was allocated to the warrants on issuance.
The following table summarizes information about granted, exercised purchase warrants and outstanding warrants at October 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 | - |
| Jun 9, 2021 | Jun 9, 2024 | 370,400 | 10.00 | 370,400 | - |
| Jan 17, 2022 | Jan 17, 2025 | 450,000 | 2.50 | 450,000 | - |
22
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
| Sep 24, 2025 | Sep 24, 2027 | 50,000,000 | 0.10 | - | 50,000,000 |
|---|---|---|---|---|---|
| Balance at October31, 2025 | 53,018,680 | 0.10 | 3,018,680 | 50,000,000 |
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 nine months ended October 31, 2025, the company recognized stock option expense of $46,479 (October 31, 2024: $119,073). In addition, 125,000 stock options were exercised on June 30, 2025. As of October 31, 2025, there are 2,131,250 exercisable stock options.
The following table summarizes information about the options at October 31, 2025, and January 31, 2025, and the changes for the periods ended:
| October 31, 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 | 125,000 | 0.065 | (1,150,000) | 0.065 | ||
| End of the period | 4,268,750 | 0.065 | 3.24 | 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 six months ended October 31, 2025, the Company incurred an expense of $471,695 (2024: 3,756).
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
On June 30, 2025, a total of 2,500,000 Restricted Share Units ("RSUs") were exercised and converted into common shares of the Company. Of these, 1,500,000 common shares were issued to the Chief Executive Officer and 750,000 common shares were issued to each of two consultants.
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 October 31, 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 October 31, 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
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
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
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 October 31, 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 $1,953 during the nine months ending October 31, 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.
MOT tokens price volatility
As of October 31, 2025, the Company held 5,500,000 MOT tokens, which are subject to significant market price volatility. MOT token prices are influenced by various factors, including global supply and demand, interest rates, exchange rates, inflation or deflation, and political and economic conditions. MOT tokens are not backed by any tangible assets or enforceable contracts to recover invested amounts. The Company's ability to sell its MOT holdings is restricted: no sales are permitted for the first six months following acquisition July 14, 2025, after which tokens will be released in equal monthly tranches over an 18-month period. These restrictions may prevent the
24
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
Company from liquidating its holdings at the desired time or price. Investing in MOT is speculative, with prices that are volatile and difficult to predict. Supply and demand for such digital assets can change rapidly, and are affected by regulatory developments and general economic trends. MOT has a limited operating history, and its fair value has historically been volatile. A decline in the market price of MOT could materially and adversely affect the Company's results of operations. Historical performance of MOT is not indicative of future performance. For the nine months ended October 31, 2025, the Company recognized a gain of $11,779,000 on the revaluation of its MOT holdings. While the current period reflects a gain, there is no assurance that future periods will yield similar results, and significant declines in MOT prices could result in material losses. The Company does not apply hedge accounting to its MOT exposure but actively monitors pricing, market volatility, and liquidity needs to determine appropriate risk mitigation strategies on an ongoing basis.
mPWR tokens price volatility
As of October 31, 2025, the Company held 10,000,000 mPWR tokens, which are subject to significant market price volatility. mPWR token prices are influenced by various factors, including global supply and demand, interest rates, exchange rates, inflation or deflation, and political and economic conditions. MPWR tokens are not backed by any tangible assets or enforceable contracts to recover invested amounts. The Company's ability to sell its mPWR holdings is restricted: no sales are permitted until March 1, 2026, after which tokens will be released in equal monthly tranches over a 36-month period. These restrictions may prevent the Company from liquidating its holdings at the desired time or price. Investing in mPWR is speculative, with prices that are volatile and difficult to predict. Supply and demand for such digital assets can change rapidly and are affected by regulatory developments and general economic trends. mPWR has a limited operating history, and its fair value has historically been volatile. For the nine months ended October 31, 2025, the Company recognized a gain of $611,000 on the revaluation of its mPWR holdings. While the current period reflects a gain, there is no assurance that future periods will yield similar results, and significant declines in mPWR prices could result in material losses. The Company does not apply hedge accounting to its mPWR exposure but actively monitors pricing, market volatility, and liquidity needs to determine appropriate risk mitigation strategies on an ongoing basis.
Kasya tokens price volatility
As of October 31, 2025, the Company held 220,000,000 Kasya tokens, which are subject to significant market price volatility. Kasya token prices are influenced by various factors, including global supply and demand, interest rates, exchange rates, inflation or deflation, and political and economic conditions. For the nine months ended October 31, 2025, the Company recognized a gain of $8,439,600 on the revaluation of its Kasya holdings. While the current period reflects a gain, there is no assurance that future periods will yield similar results, and significant declines in Kasya prices could result in material losses. The Company does not apply hedge accounting to its Kasya exposure but actively monitors pricing, market volatility, and liquidity needs to determine appropriate risk mitigation strategies on an ongoing 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
26
Dynamite Blockchain Corp.
(formerly Cryptoblox Technologies Inc.)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended October 31, 2025
(Expressed in Canadian dollars, unless otherwise noted)
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.
- 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 nine months ended October 31, 2025.
- Segmented Reporting
During the nine months ended October 31, 2025, the Company generated revenue of $947 (October 31, 2024: $Nil). All revenue was earned in Canada. The Company operated in one operating segment, which is the mining business.
- Subsequent Events
Subsequent to the period ended October 31, 2025, the Company temporarily suspended all Kaspa mining operations effective at the beginning of Q4. This is primarily due to the sustained weakness in Kaspa price performance over the past year, leading management to believe that continued mining under current market conditions was not economically sound. The Company's Kaspa holdings represent under 1% of its Asset value.
As per the NR dated December 17, the Company has initiated a marketing and communications program with Spark Newswire Inc, which includes content distribution through targeted financial media and digital channels, strategic advice, and workshops to strengthen our messaging and investor engagement. Spark Newswire Inc. does not hold any interest in the Company.