Consolidated financial statements of

EVERTZ TECHNOLOGIES LIMITED

As at April 30, 2025 and April 30, 2024

Evertz Technologies Limited
- 1 -
Year ended
April 30, 2025

EVERTZ TECHNOLOGIES LIMITED

Index to Financial Statements

Consolidated financial statements
Years ended April 30, 2025 and 2024

Consolidated Statements of Financial Position	7
Consolidated Statements of Changes in Equity	8
Consolidated Statements of Earnings	9
Consolidated Statements of Comprehensive Earnings	10
Consolidated Statements of Cash Flows	11
Notes to the Consolidated Financial Statements	12-36

Evertz Technologies Limited
- 2 -
Year ended
April 30, 2025

BDO

Tel: 289 881 1111
Fax: 905 845 8615
www.bdo.ca

BDO Canada LLP
360 Oakville Place Drive, Suite 500
Oakville ON L6H 6K8 Canada

Independent Auditor’s Report

To the Shareholders of Evertz Technologies Limited

Opinion

We have audited the consolidated financial statements of Evertz Technologies Limited and its subsidiaries (the “Company”), which comprise the consolidated statement of financial position as at April 30, 2025 and 2024, and the consolidated statements of earnings, comprehensive earnings, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at April 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board (“IASB”) and Interpretations (collectively “IFRS Accounting Standards”).

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue Recognition

Description of the key audit matter

The Company generates revenue through the sale of hardware, software solutions, services, warranty as well as a combination of these revenue streams. The Company’s contracts with customers involve multiple performance obligations. Determining whether the products and services represent distinct performance obligations, the allocation of the transaction fee to the performance obligations and, for certain performance obligations in certain arrangements, whether to recognize revenue at a point in time or over time may require significant management judgment.

We identified revenue recognition as a key audit matter. Significant auditor judgment and effort, involving more senior professionals, was required to evaluate the results of our audit procedures regarding the Company’s significant judgments in identifying distinct performance obligations and whether to recognize the related revenue over time or at a point in time.

Please refer to note 2 Material Accounting Policies and note 15 Revenue to the consolidated financial statements.

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

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How the key audit matter was addressed in the audit

Our audit procedures to address the Key Audit Matter included, but were not limited to, the following:

Obtaining, reading and understanding the terms of a sample of contracts entered into during the year.
For a sample of revenue transactions recognized during the year, we performed the following:
We agreed key contractual terms back to signed contracts, including contract amendments and correspondence with customers, where applicable;
Assessed the Company's determination of the distinct performance obligation by examining the contract source documents;
We assessed the Company's determination of the allocation of the transaction fee to the performance obligation based on the standalone selling price for the performance obligation; and
We obtained evidence of the Company's satisfaction of the performance obligation to the customers and assessed the Company's determination of whether to recognize the related revenues over time or at a point in time based on the terms of the agreements and the nature of the performance obligation rendered.

Other Information

Management is responsible for the other information. The other information comprises:

The information, other than the consolidated financial statements and our auditor's report thereon, included in the Annual Report, and
The information included in the Management Discussion and Analysis, and Press Release.

Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained the Management Discussion and Analysis, and Press Release prior to the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor's report. We have nothing to report in this regard.

The Annual Report is expected to be made available to us after the date of the auditor's report. If, based on the work we will perform on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the

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Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Company as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Jamie Barron.

BDO Canada LLP

Chartered Professional Accountants, Licensed Public Accountants

Oakville, Ontario

June 25, 2025

EVERTZ TECHNOLOGIES LIMITED

Consolidated Statements of Financial Position

As at April 30, 2025 and April 30, 2024

(In thousands of Canadian dollars)

	April 30, 2025	April 30, 2024
Assets
Current assets
Cash and cash equivalents	$ 111,665	$ 86,325
Trade and other receivables (note 3)	71,743	84,350
Contract assets	15,568	12,554
Prepaid expenses	9,677	11,179
Inventories (note 4)	181,011	206,154
Income tax receivable (note 27)	1,649	-
	391,313	400,562
Property, plant and equipment (note 5)	32,211	34,384
Right-of-use assets (note 6)	15,816	20,432
Goodwill (note 7)	20,001	21,352
Intangibles (note 8)	346	1,098
Deferred income taxes (note 27)	9,798	6,894
	$ 469,485	$ 484,722
Liabilities
Current liabilities
Trade and other payables	$ 67,982	$ 63,249
Provisions (note 10)	5,269	4,946
Current portion of deferred revenue	101,035	117,913
Current portion of lease obligations (note 11)	5,091	4,296
Redemption liability (notes 13)	3,798	3,811
Income tax payable (note 27)	-	3,226
	183,175	197,441
Long-term deferred revenue	1,238	1,684
Long-term lease obligations (note 11)	13,781	18,920
	198,194	218,045
Equity
Capital stock (note 14)	144,978	145,721
Share based payment reserve	24,195	19,246
Accumulated other comprehensive earnings	6,568	1,197
Retained earnings	92,382	97,103
	98,950	98,300
Total equity attributable to shareholders	268,123	263,267
Non-controlling interest (note 24)	3,168	3,410
	271,291	266,677
	$ 469,485	$ 484,722

See accompanying notes to the consolidated financial statements.

Evertz Technologies Limited

Year ended

April 30, 2025

EVERTZ TECHNOLOGIES LIMITED

Consolidated Statements of Changes in Equity

Years ended April 30, 2025 and 2024

(In thousands of Canadian dollars)

	Capital stock	Share-based payment reserve	Accumulated other comprehensive earnings	Retained earnings	Total equity attributable to shareholders	Non-controlling interest	Total Equity
Balance at April 30, 2023	$ 143,344	$ 14,697	$ (2,402)	$ 87,460	$ 243,099	$ 2,985	$ 246,084
Net earnings for the year	-	-	-	70,170	70,170	857	71,027
Unrealized loss on an FVTOCI investments, net of tax	-	-	(1,131)	-	(1,131)	-	(1,131)
Transfer of earnings on disposal of investments	-	-	2,704	-	2,704	-	2,704
Foreign currency translation adjustment	-	-	2,026	-	2,026	(32)	1,994
Total comprehensive earnings for the year	$ -	$ -	$ 3,599	$ 70,170	$ 73,769	$ 825	$ 74,594
Dividends declared	-	-	-	(58,596)	(58,596)	(400)	(58,996)
Issued on exercise of employee stock options	2,456	-	-	-	2,456	-	2,456
Transfer of stock options	260	(260)	-	-	-	-	-
Share based compensation expense	-	4,809	-	-	4,809	-	4,809
Repurchase of common shares	(339)	-	-	(1,931)	(2,270)	-	(2,270)
Balance at April 30, 2024	$ 145,721	$ 19,246	$ 1,197	$ 97,103	$ 263,267	$ 3,410	$ 266,677
Net earnings for the year	-	-	-	59,393	59,393	374	59,767
Foreign currency translation adjustment	-	-	5,371	-	5,371	134	5,505
Total comprehensive earnings for the year	$ -	$ -	$ 5,371	$ 59,393	$ 64,764	$ 508	$ 65,272
Dividends declared	-	-	-	(60,054)	(60,054)	(750)	(60,804)
Issued on exercise of employee stock options (note 14)	49	-	-	-	49	-	49
Transfer of stock options (note 14)	4	(4)	-	-	-	-	-
Share based compensation expense (note 19)	-	4,953	-	-	4,953	-	4,953
Repurchase of common shares (note 14)	(796)	-	-	(4,060)	(4,856)	-	(4,856)
Balance at April 30, 2025	$ 144,978	$ 24,195	$ 6,568	$ 92,382	$ 268,123	$ 3,168	$ 271,291

See accompanying notes to the consolidated financial statements.

Evertz Technologies Limited
Year ended
April 30, 2025

EVERTZ TECHNOLOGIES LIMITED

Consolidated Statements of Earnings

Years ended April 30

(In thousands of Canadian dollars, except per share amounts)

	2025	2024
Revenue (note 15 and 22)	$ 501,623	$ 514,616
Cost of goods sold	203,118	212,173
Gross margin	298,505	302,443
Expenses
Selling, administrative and general (note 16)	81,604	77,494
Research and development (note 17)	151,233	139,415
Investment tax credits	(15,626)	(14,708)
Foreign exchange gain	(218)	(154)
	216,993	202,047
	81,512	100,396
Finance income	2,779	1,661
Finance costs	(1,567)	(1,353)
Net loss on investments through profit and loss (note 9)	(1,283)	(2,704)
Other income (expenses)	463	(642)
Earnings before income taxes	81,904	97,358
Provision for (recovery of) income taxes
Current (note 27)	24,918	26,044
Deferred (note 27)	(2,781)	287
	22,137	26,331
Net earnings for the year	$ 59,767	$ 71,027
Net earnings attributable to non-controlling interest (note 24)	$ 374	$ 857
Net earnings attributable to shareholders	59,393	70,170
Net earnings for the year	$ 59,767	$ 71,027
Earnings per share (note 26)
Basic	$ 0.78	$ 0.92
Diluted	$ 0.77	$ 0.91

See accompanying notes to the consolidated financial statements.

Evertz Technologies Limited
Year ended
April 30, 2025

EVERTZ TECHNOLOGIES LIMITED

Consolidated Statements of Comprehensive Earnings

Years ended April 30

(In thousands of Canadian dollars)

	2025	2024
Net earnings for the year	$ 59,767	$ 71,027
Other comprehensive earnings (loss)
Items that may or will be reclassified to earnings:
Unrealized loss on investments, net of tax (note 9)	-	(1,131)
Reclassification to net earnings for loss on sale of FVTOCI investments, net of tax (note 9)	-	2,704
Foreign currency translation adjustment	5,505	1,994
Comprehensive earnings	$ 65,272	$ 74,594
Comprehensive earnings attributable to non-controlling interest	$ 508	$ 825
Comprehensive earnings attributable to shareholders	64,764	73,769
Comprehensive earnings	$ 65,272	$ 74,594

See accompanying notes to the consolidated financial statements.

Evertz Technologies Limited

Year ended

April 30, 2025

EVERTZ TECHNOLOGIES LIMITED

Consolidated Statements of Cash Flows

Years ended April 30

(In thousands of Canadian dollars)

	2025	2024
Operating activities
Net earnings for the year	$ 59,767	$ 71,027
Add: Items not involving cash
Depreciation of property, plant and equipment (note 5)	10,337	9,721
Amortization of right-of-use assets (note 6)	4,986	4,658
Amortization of intangibles (note 8)	767	1,028
Gain on disposal of property, plant and equipment (note 5)	(678)	(84)
Realized loss on investments (note 9)	1,283	2,704
Share-based compensation (note 19)	4,954	4,809
Interest expense	985	1,247
Deferred income tax expense (note 27)	(2,781)	287
	79,620	95,397
Current tax expenses, net of investment tax credits (note 27)	9,292	11,381
Income taxes paid	(13,357)	(15,530)
Changes in non-cash working capital items (note 18)	24,070	53,426
Cash provided by operating activities	99,625	144,674
Investing activities
Proceeds from disposal of business unit (note 9)	200	-
Acquisition of property, plant and equipment (note 5)	(7,945)	(9,559)
Proceeds from disposal of property, plant and equipment (note 5)	1,016	114
Proceeds from disposal of investments (note 9)	-	7,183
Cash used in investing activities	(6,729)	(2,262)
Financing activities
Repayment of credit facility (note 12)	-	(5,928)
Principal payments of lease liabilities (note 11)	(4,820)	(4,326)
Interest paid	(998)	(1,147)
Dividends paid	(60,054)	(58,596)
Dividends paid by subsidiaries to non-controlling interests	(749)	(400)
Capital stock repurchased (note 14)	(4,856)	(2,270)
Capital stock issued (note 14)	49	2,456
Cash used in financing activities	(71,428)	(70,211)
Effect of exchange rates on cash and cash equivalents	3,872	1,656
Increase in cash and cash equivalents	25,340	73,857
Cash and cash equivalents at beginning of year	86,325	12,468
Cash and cash equivalents at end of year	$ 111,665	$ 86,325

See accompanying notes to the consolidated financial statements.

Evertz Technologies Limited

Year ended

April 30, 2025

Evertz Technologies Limited
- 12-
Year ended
April 30, 2025

EVERTZ TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Years ended April 30, 2025 and 2024

(in thousands of Canadian dollars, except for “number of common shares”, “number of options” and “per share” information)

Evertz Technologies Limited (“Evertz” or the “Company”) is incorporated under the Canada Business Corporations Act. The Company is incorporated and domiciled in Canada and the registered head office is located at 5292 John Lucas Drive, Burlington, Ontario, Canada. The Company is a leading supplier of software, equipment and technology solutions to content creators, broadcasters, specialty channels and television service providers. The Company designs, manufactures and distributes video and audio infrastructure solutions for the production, post-production, broadcast and telecommunications markets.

1. STATEMENT OF COMPLIANCE

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board ("IASB") and Interpretations (collectively "IFRS" Accounting Standards).

These consolidated financial statements were authorized for issue by the Board of Directors on June 25, 2025.

2. MATERIAL ACCOUNTING POLICIES

Basis of Measurement

These financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities which are stated at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

Functional and Presentation Currency

These financial statements are presented in Canadian dollars, which is the Company’s parent company functional currency. Each subsidiary of the Company determines its own functional currency based on the primary economic environment in which the subsidiary operates. All financial information presented in Canadian dollars has been rounded to the nearest thousand, except per share amounts.

Basis of Consolidation

These financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has power over an entity, has exposure or rights to variable returns from its involvement with the entity and has the ability to use its power over the entity to affect the amount of the investor’s returns.

The results of subsidiaries acquired or disposed of are included in the consolidated statements of earnings and comprehensive earnings from the effective date of acquisition of control and up to the effective date of disposal of control, as appropriate. Total comprehensive earnings of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

All intra-Company transactions, balances, income and expenses are eliminated in full consolidation.

Note #2 continued ...

Revenue Recognition

Revenue is measured using a five-step recognition model which includes; 1) identifying the contract(s) with the customer; 2) identifying the separate performance obligations in the contract; 3) determining the transaction price; 4) allocating the transaction price to separate performance obligations; and 5) recognizing revenue when (or as) each performance obligation is satisfied.

Step 1: Identifying the contract

Before recognizing revenue, the Company reviews customer contracts to ensure each party’s rights and payment terms are identified, there is commercial substance, and that it is probable that the Company will collect the consideration in exchange for the goods or services as stated in the contract. The Company may enter into multiple contracts with the same customer. The Company uses judgement in evaluating whether various contracts are interrelated, which includes considerations as to whether they were negotiated as a package with a single commercial objective, whether the amount of consideration on one contract is dependent on the performance of the other contract, or if some or all goods and services in the contracts are a single performance obligation. New arrangements with existing customers can be either be treated as a new contract or the modification of prior contracts with the customer. The Company uses judgment in making this determination, considering whether there is a connection between the new arrangement and the pre-existing contract, whether the goods and services under the new arrangement are highly interrelated with the goods and services sold under prior contracts, and how the goods and services under the new arrangement are priced. In determining whether a transaction price represents a contract modification or a change in variable consideration, the Company examines whether the change in price results from changing the contract or from applying unchanged existing contract provisions.

Step 2: Identifying performance obligations

The Company regularly sells hardware and software solutions with related services. Software solutions including both, right to access and right to use term based and perpetual licenses and stand-alone software solutions services. Services include training and commissioning, warranty, maintenance and support and other professional services. A customer contract typically lists items separately with distinct item descriptions, quantities, and prices. If a contract contains a bundle of items priced together at a single price, the Company analyzes the contract to identify distinct performance obligations within the bundle. The Company uses judgment in determining whether a good or service, such as commissioning is considered separate performance obligations or are combined into one distinct performance obligation.

Step 3: Determining the transaction price

Transaction prices are typically the prices stated on the purchase orders or contracts, net of discounts. The Company reviews customer contracts for any variable considerations, existence of significant financing components and payables to customers, and adjusts transaction prices accordingly. Variable consideration is estimated and included in the transaction price based on the most likely amount to be received. The Company does not account for significant financing components if the period between when the Company transfers the promised goods or services to the customer and when the customer pays for those goods or services is one year or less.

Step 4: Allocating the transaction price to performance obligations

If a customer contract includes multiple performance obligations, the transaction price is allocated to each performance obligation based on its relative stand-alone selling price. If a stand-alone selling price is not directly observable, the Company estimates the stand-alone selling price of individual elements, based on prices at which the deliverable is regularly sold on a stand-alone basis after considering specific discounts where appropriate.

Step 5: Recognizing revenue upon satisfaction of performance obligations

The timing of revenue recognition is based on when a customer obtains control of the asset. Control of an asset refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset. The Company reviews customer contracts and the nature of the performance obligations to determine if a performance obligation is satisfied over time or at a point in time, and recognizes revenue accordingly.

Evertz Technologies Limited

Year ended April 30, 2025

Note #2 continued ...

Revenue from sales of hardware are recognized upon shipment, provided that the significant risks and rewards of ownership have been transferred to the customer, the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, revenue can be reliably measured and its probable that the economic benefits will flow to the Company.

Revenue from software solutions are recognized either over a period of time or at a point in time depending on the contractual terms of the contract identified and the specific performance obligations identified therein. For performance obligations recognized at a point in time, revenue is recognized following the transfer of control or the Company has objective evidence that criteria for acceptance has been satisfied. For performance obligations satisfied over time, the Company measures the progress using the output method, measuring progress toward satisfaction of the performance obligation.

Revenue from services is recognized as services are performed and warranty and maintenance revenue is recognized ratably over the period of service.

Certain of the Company’s hardware and software solutions contracts are long-term in nature, and the Company measures the progress using either an input or output method, depending on which yields the most reliable estimate. For construction type contracts, where estimated total costs and the outcome of the contract can be assessed reliably, the Company recognizes revenue over time, based on costs incurred relative to the estimated total contract costs. When the outcome of the contract cannot be assessed reliably, contract costs incurred are immediately expensed and revenue is recognized only to the extent that costs are considered likely to be recovered. For software solutions that require significant customization, where the direct measurement of value to the customer results in the best estimate and criteria for recognition over time is met, the Company recognizes revenue over time based on value provided to the customer to date. Revenue recognized in excess of billings are recorded as contract assets, while billings in excess of revenue recognized is recorded as deferred revenue.

Customer contacts have a variety of different payment terms. Contract assets are recognized when revenue is recognized in excess of billings or when the Company has a right to consideration and that right is conditional to something other than the passage of time. Contract assets are subsequently transferred to accounts receivable when the right to payment becomes unconditional. This usually occurs when the Company issues an invoice to the customer. Contract assets are adjusted for expected credit losses.

Contract assets are adjusted for expected credit losses, which are estimated based on factors such as the Company’s past experience of collecting payments from the applicable customer, observable changes in national or local economic conditions that correlated with default on contract assets, financial difficulties of the customer, and it becoming probable that the borrow will either enter bankruptcy or financial reorganization.

Deferred revenue relates to advance consideration received from customers in excess of revenue recognized under the contract. Deferred revenue has been classified as long-term where the contractual obligations relating to the consideration are required to be provided by the Company more than one year from the presentation date. During the year, the Company recognized $74,547 in revenue that was recognized as deferred revenue at the beginning of the year (2024 – $49,936).

Finance Income

Interest income is recognized when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and in the bank.

Evertz Technologies Limited
Year ended April 30, 2025

Note #2 continued ...

Inventories

Inventories consist of raw materials and supplies, work in progress and finished goods. Inventories are stated at the lower of cost and net realizable value. Cost is determined on a weighted average basis and includes raw materials, the cost of direct labour applied to the product and the overhead expense.

Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any recognized impairment loss. Where the costs of certain components of an item of property, plant and equipment are significant in relation to the total cost of the item, they are accounted for and depreciated separately. Depreciation expense is calculated based on depreciable amounts which is the cost of an asset less residual value and is recognized in earnings on a straight-line basis over the estimated useful life of the related asset. Borrowing costs are capitalized to the cost of qualifying assets that take a substantial period of time to be ready for their intended use.

The estimated useful lives are as follows:

Asset	Basis	Rate
Office furniture and equipment	Straight-line	10 years
Research and development equipment	Straight-line	5 years
Machinery and equipment	Straight-line	5 - 15 years
Leaseholds	Straight-line	5 years
Building	Straight-line	10 - 40 years
Airplanes	Straight-line	10 - 20 years

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in earnings.

The Company reviews the residual value, estimated useful life and the depreciation method at least annually.

Impairment of Non-Financial Assets

Goodwill is tested for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount may be more than its recoverable amount. At each reporting period, the Company reviews the carrying amounts of its other non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash inflows that are largely independent from other assets, the Company estimates the recoverable amount of the cash-generating unit ("CGU") to which the asset belongs. Goodwill is allocated to a group of CGU's based on the level at which it is monitored for internal reporting purposes.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount. An impairment loss relating to a CGU to which goodwill has been allocated, is allocated to the carrying amount of the goodwill first. An impairment loss is recognized immediately in earnings.

Evertz Technologies Limited

Year ended April 30, 2025

Note #2 continued ...

An impairment loss in respect of goodwill is not reversed. Where an impairment loss subsequently reverses for other non-financial assets, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in earnings.

Intangible Assets

Intangible assets represent intellectual property acquired through business acquisitions and are recorded at cost less any impairment loss and are amortized using the straight-line method over a five-year period. The estimated useful life and amortization method are reviewed at the end of each reporting period.

Research and Development

All research and development expenditures are expensed as incurred unless a development project meets the criteria for capitalization. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to and has sufficient resources to complete development and to use or sell the asset. No internally generated intangible assets have been recognized to date.

Research and development expenditures are recorded gross of investment tax credits and related government grants. Investment tax credits for scientific research and experimental development are recognized in the period the qualifying expenditures are incurred if there is reasonable assurance that they will be realized.

Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Leasing

At inception of a contract, the Company assesses whether that contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company records a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, consisting of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or restore the site on which it is located; less any lease incentives received.

Evertz Technologies Limited
Year ended April 30, 2025

Note #2 continued ...

The right-of-use asset is depreciated on a straight-line basis over the lease term. The lease term consists of the non-cancellable period of the lease; periods covered by options to extend the lease, where the Company is reasonably certain to exercise the option; and periods covered by options to terminate the lease, where the Company is reasonably certain not to exercise the option. The right-of-use asset is adjusted for remeasurement of lease liabilities resulting from a change in future lease payments arising from a change in rate or a change in the assessment of whether an extension or termination options will be exercised.

The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. The Company generally use their incremental borrowing rate as the interest rate implicit in our leases cannot be readily determined. The lease liability is subsequently measured at amortized cost using the effective interest rate method. After the commencement date, the lease liability is remeasured if there is a modification, including a change in the lease term. Certain leases require us to make payments that relate to property taxes, insurance, and other non-rental costs. These non-rental costs are typically variable and are not included in the calculation of the right-of-use asset or lease liability.

Foreign Currency Translation

The individual financial statements of each subsidiary entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each group entity are presented in Canadian dollars ("CDN"), which is the functional currency of the parent Company and the presentation currency for the financial statements.

In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences are recognized in earnings in the period in which they arise. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Company's foreign operations are expressed in Canadian dollars using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period. Foreign currency gains and losses are recognized in other comprehensive earnings. The relevant amount in cumulative foreign currency translation adjustment is reclassified into earnings upon disposition or partial disposition of a foreign operation and attributed to non-controlling interests as appropriate.

Income Taxes

Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net earnings as reported in the statement of earnings because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the statement of financial position date.

Deferred Tax

Deferred tax is the tax expected to be payable or recoverable on unused tax losses and credits, as well as differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which unused tax losses, credits and other deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Evertz Technologies Limited

Year ended April 30, 2025

Note #2 continued ...

The carrying amount of deferred tax assets is reviewed at each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is charged or credited to earnings, except when it relates to items charged or credited directly to other comprehensive earnings or equity, in which case the deferred tax is also dealt with in other comprehensive earnings or equity.

Share Based Compensation

Equity settled share based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity settled share based transactions are set out in note 19.

The fair value determined at the grant date of the equity settled share based payments is expensed on a straight-line basis over the vesting period of the option based on the Company’s estimate of the number of equity instruments that will eventually vest. At each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in earnings such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to share based payment reserve.

Cash settled share based compensation to employees, including restricted share units, or others providing similar services are measured at the fair value of the instruments at the grant date. The fair value is recognized as an expense with a corresponding increase in liabilities, both over the vesting period of the option grant. At each reporting period, the Company revises its estimate of fair value and the number of instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in earnings such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to liabilities.

Earnings Per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the net earnings attributable to shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is determined by adjusting the net earnings attributable to shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares, which is comprised of share options granted to employees with an exercise price below the average market price.

Finance Costs

Finance costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other finance costs are recognized in earnings in the period in which they are incurred.

Evertz Technologies Limited
Year ended April 30, 2025

Note #2 continued ...

Investment Tax Credits

The Company is entitled to investment tax credits, which are earned as a percentage of eligible research and development expenditures incurred in each taxation year. Investment tax credits relate entirely to the Company's research and development expenses in the consolidated statements of earnings but are presented separately in the consolidated statements of earnings for information purposes. Investment tax credits are recognized and recorded within income tax receivable or as a reduction of income tax payable, when there is reasonable assurance they will be received.

Financial Instruments

The Company's financial assets and liabilities which are initially recorded at fair value and subsequently measured based on their assigned classifications as follows:

Assets/Liabilities	Classification
Cash and cash equivalents	Amortized Cost
Trade and other receivables	Amortized Cost
Investments in public companies	Fair value through other comprehensive income
Investments in private companies	Fair value through profit and loss
Trade and other payables	Amortized Cost
Redemption liability	Fair value through profit and loss

Financial Assets

All financial assets are initially measured at fair value, plus transaction costs. Transaction costs in respect of financial instruments that are classified as fair value through profit or loss are recognized in earnings immediately. Transaction costs in respect of other financial instruments are included in the initial measurement of the financial instrument.

Financial assets are classified into the following specific categories: financial assets "at fair value through profit or loss" ("FVTPL"), "fair value through other comprehensive income ("FVTOCI")" and "amortized cost". The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Financial assets at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognized in earnings. Financial assets at FVTOCI are stated at fair value, with any gains or losses arising on re-measurement recognized in other comprehensive earnings. Where financial assets at FVTOCI are derecognized, the gains or losses previously recognized in other comprehensive earnings is reclassified from other comprehensive earnings to earnings.

Impairment of Financial Assets

Financial assets, other than those at FVTPL and FVTOCI, are assessed for indicators of impairment at the time of initial recognition and at each reporting period. The Company measures a loss allowance based on the lifetime expected credit losses. Lifetime expected credit losses are estimated based on factors such as the Company's past experience of collecting payments, observable changes in national or local economic conditions that correlated with default on receivables, financial difficulties of the borrower, and it becoming probable that the borrow will either enter bankruptcy or financial reorganization. Financial assets are written off when there is no reasonable expectation of recovery.

For financial assets carried at amortized cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

Evertz Technologies Limited
Year ended April 30, 2025

Note #2 continued ...

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. A trade receivable is considered impaired if it is probable that a customer will not pay all amounts due. When a trade receivable is considered impaired, it is recorded in the allowance account. Subsequent recoveries of amounts are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in earnings. When there is no reasonable expectation of recovery, the trade receivable balance is written off against the allowance account.

Financial Liabilities and Equity Instruments Issued by the Company

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognized in earnings. The net gain or loss recognized in earnings incorporates any interest paid on the financial liability and is included in the "other income and expenses" line item in the consolidated statements of earnings.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Other financial liabilities are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis.

Critical Accounting Estimates and Judgments

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Consequently, actual results could differ from those estimates. Those estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Significant estimates include the determination of expected credit losses which are based on the amount and timing of cash flows expected to be received, allocation of the transaction price on customer contracts with multiple deliverables which are based on standalone selling prices, of the applicable deliverable or using estimation techniques where no standalone selling prices are available, provision for inventory obsolescence which is recorded to adjust to the net realizable value of inventory and based on current market prices and past experiences, the useful life of property, plant and equipment and intangibles for depreciation which are based on past experiences, expected use and industry trends, amortization and valuation of net recoverable amount of property, plant and equipment and intangibles, determination of fair value for share based compensation, evaluating deferred income tax assets and liabilities, the determination of fair value of financial instruments and the likelihood of recoverability, and the determination of implied fair value of goodwill and implied fair value of assets and liabilities for purchase price allocation purposes and goodwill impairment assessment purposes.

Significant items requiring the use of judgment in application of accounting policies and assumptions include the determination of functional currencies, classification of financial instruments, classification of leases, determination of the number of revenue performance obligations, the allocation of transaction prices on customer contracts, determination if revenues should be recognized at a point in time or over time, application of the percentage of completion method on long-term contracts, degree of componentization applied when calculating amortization of property, plant and equipment, and identification of cash generating units for impairment testing purposes.

Evertz Technologies Limited
Year ended April 30, 2025

Note #2 continued ...

Operating Segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. The Company reviewed its operations and determined that it operates a single reportable segment, the television broadcast equipment market. The single reportable operating segment derives its revenue from the sale of hardware and software solutions, related services, training and commissioning and long-term contracts.

Changes in Accounting Policies

Lease Liability in Sale and Leaseback Transactions

Effective May 1, 2024, the Company adopted amendments to IFRS 16, Leases which clarifies the subsequent measurement requirements for sale and leaseback transactions for sellers-leasees. The adoption of the amendments did not have a material impact on the consolidated financial statements of the Company.

Presentation of Current and Non-Current Liabilities

Effective May 1, 2024, The Company adopted amendments to IAS 1, Presentation of Financial Statements which clarifies the classification, presentation and disclosure requirements in the standard for current and non-current liabilities. The adoption of the amendments did not have a material impact on the consolidated financial statements of the Company.

New and Revised IFRSs Issued but Not Yet Effective

The following is a listing of amendments, revisions and new International Financial Reporting Standards issued but not yet effective. Unless otherwise indicated, earlier application is permitted.

Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates

Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates was issued by the IASB in August 2023 and provides guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. The standard is effective for reporting periods beginning on or after January 1, 2025. The Company does not expect a material impact on the consolidated financial statements of the Company as a result of the amendment but has not yet finalized the analysis.

Presentation and Disclosure in Financial Statements

IFRS 18, Presentation and Disclosure in Financial Statements issues was issued by the IASB in April 2024 and replaces IAS 1, Presentation of Financial Statements. The standard is effective for reporting periods beginning on or after January 1, 2027. The Company has not yet determined the impact of the standard.

Disclosure in Subsidiaries without Public Accountability

IFRS 19, Subsidiaries without Public Accountability: Disclosures was issued by the IASB in May 2024 and reduces disclosure requirements within the consolidated financial statements relating to eligible subsidiaries of the Company. The standard is effective for reporting periods beginning on or after January 1, 2027. The Company does not expect a material impact on the consolidated financial statements of the Company as a result of the amendment but has not yet finalized the analysis.

Evertz Technologies Limited
Year ended April 30, 2025

3. TRADE AND OTHER RECEIVABLES

	2025	2024
Trade receivables, net of allowances	$ 69,153	$ 81,742
Other receivables	2,590	2,608
	$ 71,743	$ 84,350

4. INVENTORIES

	2025	2024
Finished goods	$ 51,295	$ 58,588
Raw material and supplies	95,084	109,750
Work in progress	34,632	37,816
	$ 181,011	$ 206,154

Cost of sales for the year ended April 30, 2025 included $170,058 of inventory (2024 - $179,482) and $9,960 of inventory write-offs (2024 - $7,507).

5. PROPERTY, PLANT AND EQUIPMENT

	April 30, 2025			April 30, 2024
	Cost	Accumulated Depreciation	Carrying Amount	Cost	Accumulated Depreciation	Carrying Amount
Office furniture and equipment	$ 5,614	$ 4,090	$ 1,524	$ 5,387	$ 4,168	$ 1,219
Research and development equipment	38,037	31,595	6,442	35,590	28,610	6,980
Airplanes	10,490	9,831	659	11,854	10,740	1,114
Machinery and equipment	77,620	66,164	11,456	73,978	60,974	13,004
Leaseholds	10,723	8,318	2,405	10,240	7,581	2,659
Land	2,262	-	2,262	2,252	-	2,252
Buildings	11,555	4,092	7,463	10,864	3,708	7,156
	$ 156,301	$ 124,090	$ 32,211	$ 150,165	$ 115,781	$ 34,384
	Office furniture and equipment	Research and development equipment	Airplanes	Machinery and equipment	Leaseholds	Land
---	---	---	---	---	---	---
Cost
Balance as at April 30, 2023	$ 5,169	$ 34,008	$ 11,599	$ 69,811	$ 9,570	$ 2,276
Additions	264	1,909	255	6,451	667	-
Foreign exchange adjustments	(7)	311	-	(1,464)	3	(24)
Disposals	(39)	(638)	-	(820)	-	-
Balance as at April 30, 2024	$ 5,387	$ 35,590	$ 11,854	$ 73,978	$ 10,240	$ 2,252
Additions	$ 247	$ 2,131	$ 250	$ 4,301	$ 479	$ -
Foreign exchange adjustments	480	316	-	(163)	4	10
Disposals	(500)	-	(1,614)	(496)	-	-
Balance as at April 30, 2025	$ 5,614	$ 38,037	$ 10,490	$ 77,620	$ 10,723	$ 2,262
Accumulated Depreciation
Balance as at April 30, 2023	$ 3,589	$ 27,086	$ 10,263	$ 56,937	$ 7,086	$ -
Depreciation for the year	625	3,087	609	4,851	495	-
Foreign exchange adjustments	(9)	(929)	(132)	(13)	-	-
Disposals	(37)	(634)	-	(801)	-	-
Balance as at April 30, 2024	$ 4,168	$ 28,610	$ 10,740	$ 60,974	$ 7,581	$ -
Depreciation for the year	$ 353	$ 2,939	$ 533	$ 5,391	$ 737	$ -
Foreign exchange adjustments	69	46	-	128	-	-
Disposals	(500)	-	(1,442)	(329)	-	-
Balance as at April 30, 2025	$ 4,090	$ 31,595	$ 9,831	$ 66,164	$ 8,318	$ -
Carrying amounts
At April 30, 2024	$ 1,219	$ 6,980	$ 1,114	$ 13,004	$ 2,659	$ 2,252
At April 30, 2025	$ 1,524	$ 6,442	$ 659	$ 11,456	$ 2,405	$ 2,262

Evertz Technologies Limited
Year ended
April 30, 2025

6. RIGHT-OF-USE ASSETS

	Land & Building
Balance as at April 30, 2023	$ 20,396
Additions	4,643
Amortization for the year	(4,658)
Foreign exchange adjustments	51
Balance as at April 30, 2024	$ 20,432
Amortization for the year	(4,986)
Foreign exchange adjustments	370
Balance as at April 30, 2025	$ 15,816

7. GOODWILL

The changes in carrying amounts of goodwill are as follows:

	Cost
Balance as at April 30, 2023	$ 21,333
Foreign exchange differences	19
Balance as at April 30, 2024	$ 21,352
Disposal and impairment (note 9)	$ (1,583)
Foreign exchange differences	232
Balance as at April 30, 2025	$ 20,001

The Company performs an impairment test annually on April 30th or whenever there is an indication of impairment. For the purposes of testing for impairment, goodwill has been allocated to the following cash-generating units as follows:

	April 30
	2025	2024
Evertz Microsystems Ltd (note 9)	$ 12,596	$ 13,955
Holdtech Kft	5,346	5,346
Quintech	1,013	1,007
ATCI	395	393
Ease Live	651	651
	$ 20,001	$ 21,352

The key assumptions used in performing the impairment tests as at April 30, 2025 are as follows:

Method of determining recoverable amount: Value in use

Discount Rate: 9.5% - 14%

Perpetual growth rate: 1.2% - 2.0%

Recoverable Amount

Management’s past experience and future expectations of the business performance is used to make a best estimate of the expected revenue, earnings before interest, taxes, depreciation and amortization and operating cash flows for a five year period. Subsequent to the fifth year, the present value of the fifth year cash flows is calculated in perpetuity.

Note #7 continued ...

Discount Rate

The discount rate applied is a pre tax rate that reflects the time value of money and risk associated with the business. The discount rate applied varies depending on the jurisdictions in which the entity operates.

Perpetual Growth Rate

The perpetual growth rate is management’s current assessment of the long-term growth prospect of the Company in the jurisdictions in which it operates.

Sensitivity Analysis

Management performs a sensitivity analysis on the key assumptions including applying decreased growth rates and higher discounts rates. The sensitivity analysis indicates reasonable changes to key assumptions will not result in an impairment loss.

8. INTANGIBLES

	Cost
Balance as at April 30, 2023	$ 2,125
Amortization	(1,028)
Foreign exchange differences	1
Balance as at April 30, 2024	$ 1,098
Amortization	(767)
Foreign exchange differences	15
Balance as at April 30, 2025	$ 346

The intangible assets relate to the technology and patents acquired during prior period acquisitions.

9. INVESTMENTS AND BUSINESS COMBINATIONS

In fiscal 2025, a Canadian business was disposed of for proceeds of $300 including cash of $200 and promissory notes totaling $100. At the time of disposal, the business had no net assets and goodwill of $1,583, which was previously allocated to the Evertz Microsystems Ltd business unit. Upon disposal, the Company recorded a loss on the disposal of $1,283. Prior to the disposal, in fiscal 2025 the entity had revenue of $120 and a net loss of $107 (2024 - revenue of $187 and net income of $12).

In fiscal 2024 investments in publicly traded companies were disposed of for proceeds of $7,183. Upon disposal, the Company recognized a loss of $2,704, including a reclassification of losses previously recognized in other comprehensive earnings of $1,727.

10. PROVISIONS

	Warranty and Returns	Lease/Retirement Obligations	Total
Balance as at April 30, 2023	$ 4,512	$ 592	$ 5,104
Net additions (reductions)	61	(252)	(191)
Foreign exchange differences	30	3	33
Balance as at April 30, 2024	$ 4,603	$ 343	$ 4,946
Net additions (reductions)	147	118	265
Foreign exchange differences	30	28	58
Balance as at April 30, 2025	$ 4,780	$ 489	$ 5,269

Evertz Technologies Limited

24 -

Year ended

April 30, 2025

Note #10 continued ...

Warranty and Returns

The provision relates to estimated future costs associated with standard warranty repairs and returns on the Company’s products and solutions. The provision is based on historical data associated with similar products. The warranty and returns are expected to be incurred within the next twelve months.

Lease/Retirement Obligations

The provision relates to the estimated restoration costs expected to be incurred upon the conclusion of Company leases.

11. LEASE LIABILITIES

	April 30,		April 30,
	2025		2024
Opening Balance	$	23,216	$ 22,887
Additions		-	4,643
Interest		975	924
Lease Payments		(5,795)	(5,250)
Foreign exchange adjustments		476	12
Closing Balance	$	18,872	$ 23,216
Less current portion		5,091	4,296
Long term lease obligations	$	13,781	$ 18,920

12. CREDIT FACILITIES

The Company has the following credit facilities available:

Credit facility of $75 million and a treasury risk management facility up to $10 million available, bearing interest at prime, subject to certain covenants and secured by all Canadian based assets. As at April 30, 2025 and April 30, 2024, the Company was in compliance with covenants. There were no borrowings against the facilities as at April 30, 2025, or 2024.
Credit facility available of $1,100 bearing interest at WIBOR plus 0.75% per annum. There were no borrowings outstanding under this facility as at April 30, 2025 or 2024.

Evertz Technologies Limited
Year ended April 30, 2025

Evertz Technologies Limited
Year ended
April 30, 2025

13. REDEMPTION LIABILITY

	April 30, 2025	April 30, 2024
Opening Balance	$ 3,811	$ 3,711
Change in fair value	(38)	33
Foreign Exchange Adjustments	25	67
Closing Balance	3,798	3,811

On October 27, 2020, the Company completed the investment of 73% in the voting share capital of Ease Live AS ("Ease Live"), who are based in Bergen, Norway. Ease Live, which was formerly part of Sixty AS, is a direct to consumer interactive graphics company. The non-controlling shareholders held a put option for the remaining shareholdings, exercisable between November 15, 2022 and December 15, 2022 for a fixed cash price of $3,798. The option was not exercised. The non-controlling shareholders had another put option for the remaining shareholdings, that was exercised in December 2023 for a price to be determined through the valuation process. As at April 30, 2025, the valuation process continues. The put option has been separately valued as a redemption liability, at its estimated fair value as at April 30, 2025.

14. CAPITAL STOCK

Authorized capital stock consists of:
Unlimited number of preferred shares
Unlimited number of common shares

	Number of Common Shares	Amount
Balance as at April 30, 2023	76,145,758	$ 143,344
Issued on exercise of stock options	198,875	2,456
Transferred on stock option exercise	-	260
Cancelled pursuant to NCIB	(180,311)	(339)
Balance as at April 30, 2024	76,164,322	$ 145,721
Issued on exercise of stock options	4,000	49
Transferred on stock option exercise	-	4
Cancelled pursuant to NCIB	(418,087)	(796)
Balance as at April 30, 2025	75,750,235	$ 144,978

Dividends Per Share

During the year, $0.79 in dividends per share were declared (2024 - 0.77 per share).

Normal Course Issuer Bid

In November 2023, the Company renewed their Normal Course Issuer Bid ("NCIB") with the TSX to repurchase, at the Company's discretion, until November 2024 up to 3,802,024 outstanding common shares on the open market or as otherwise permitted, subject to normal terms and limitations of such bids. In November 2024, the Company renewed their NCIB with the TSX to repurchase, at the Company's discretion, up to 3,797,308 outstanding common shares on the open market, or as otherwise permitted until November 26, 2025. During the year, the Company purchased and cancelled 418,087 common shares, under the combined two NCIB programs, at a weighted average price of $11.62 (2024 – the Company purchases and cancelled 180,311 common shares, under two NCIB programs, at weighted average price of $12.59).

REVENUE

	2025	2024
Hardware	$ 279,060	$ 325,745
Reoccurring software, services and other software	222,563	188,871
	$ 501,623	$ 514,616

During the year, the Company recognized $71,131 in revenue over time (2024 - $72,814) and $430,492 (2024 - $441,802) in revenue at a point in time.

During the year, the Company had revenue from a global media company that represented 12% of total revenue (2024 - 8%).

SELLING, ADMINISTRATIVE AND GENERAL EXPENSES

	2025	2024
Salaries and benefits	$ 41,064	$ 39,795
Other selling and administrative	34,794	32,479
Share based compensation (note 19)	497	548
Amortization of intangibles (note 8)	767	1,028
Depreciation	4,482	3,644
	$ 81,604	$ 77,494

RESEARCH AND DEVELOPMENT

	2025	2024
Salaries and benefits	$ 116,967	$ 109,291
Other research and development	26,430	21,752
Share based compensation (note 19)	4,462	4,572
Depreciation	3,374	3,800
	$ 151,233	$ 139,415

STATEMENT OF CASH FLOWS

Changes in non-cash working capital items

	2025	2024
Trade and other receivables	$ 12,707	$ 22,013
Contract assets	(3,014)	(1,522)
Inventories	25,143	(3,821)
Prepaid expenses	1,502	(543)
Trade and other payables	4,733	(13,632)
Deferred revenue	(17,324)	51,089
Provisions	323	(158)
	$ 24,070	$ 53,426

Evertz Technologies Limited
- 27 -
Year ended
April 30, 2025

SHARE BASED PAYMENTS

Stock Option Plan

The Company established, in June 2006, a stock option plan to attract, retain, motivate and compensate employees, officers and eligible directors who are integral to the growth and success of the Company. A number of shares equal to 10% of the Company’s outstanding common shares are to be reserved for issuance under the stock option plan.

The Board of Directors administers the stock option plan and will determine the terms of any options granted. The exercise price of an option is to be set by the Board of Directors at the time of grant but shall not be lower than the market price as defined in the option plan at the time of grant. The term of the option cannot exceed 10 years. Stock options are currently granted normally fully vest and expire by the end of the fifth year.

The changes in the number of outstanding share options are as follows:

	Number of Options	Weighted Average Exercise Price
Balance as at April 30, 2023	4,788,500	$ 13.38
Exercised	(198,875)	12.35
Forfeited	(166,500)	12.67
Expired	(467,500)	15.82
Balance as at April 30, 2024	3,955,625	$ 13.18
Exercised	(4,000)	12.28
Forfeited	(103,900)	12.30
Expired	(602,500)	17.50
Balance as at April 30, 2025	3,245,225	$ 12.40

Stock options outstanding as at April 30, 2025 were:

Exercise Price	Weighted Average Exercise Price	Number of Outstanding Options	Weighted Average Remaining Contractual Life	Number of Options Exercisable	Weighted Average Exercise Price of Exercisable Options
$ 12.28	$ 12.28	2,760,725	0.3	2,208,580	$ 12.28
$ 12.86	$ 12.86	384,500	0.7	307,600	$ 12.86
$ 14.07	$ 14.07	100,000	0.9	80,000	$ 14.07
Totals	$ 12.40	3,245,225	0.3	2,596,180	$ 12.40

Stock options outstanding as at April 30, 2024 were:

Exercise Price	Weighted Average Exercise Price	Number of Outstanding Options	Weighted Average Remaining Contractual Life	Number of Options Exercisable	Weighted Average Exercise Price of Exercisable Options
12.28-12.86	$ 12.35	3,253,125	1.3	1,951,875	$ 12.35
14.07	$ 14.07	100,000	1.9	60,000	$ 14.07
16.20	$ 16.20	160,000	0.9	128,000	$ 16.20
17.65-17.98	$ 17.97	442,500	0.7	354,000	$ 17.97
Totals	$ 13.18	3,955,625	1.2	2,493,875	$ 13.39

Evertz Technologies Limited
Year ended
April 30, 2025

Note #19 continued ...

Restricted Share Unit Plan (2016 Plan)

The Company established, in March 2016, a restricted share unit (“RSU-2016”) plan to provide an incentive to participants, including key executives of the Company, by rewarding such participants with equity-based compensation. Under the terms of the plan, RSU’s are issued to the participant with a vesting period of three years. On the vesting date, all RSU’s issued under the 2016 Plan will be redeemed in cash at the fair market value at the date of vest plus any accrued dividends. The changes in the number of outstanding RSUs under the 2016 Plan are as follows:

	Number of RSUs
Balance as at April 30, 2023	67,000
Exercised	(57,000)
Balance as at April 30, 2024	10,000
Exercised	(10,000)
Balance as at April 30, 2025	-

As at April 30, 2025, there were no outstanding RSUs under the 2016 Plan.

Restricted Share Unit Plan (2022 Plan)

The Company established, in June 2022, a new restricted share unit plan (RSU-2022). The purpose of the plan is to provide an incentive to participants; including key executives of the Company, by rewarding such participants with equity-based compensation. Under the terms of the plan, the Company will redeem RSUs granted to a participant under the 2022 Plan through the issuance of one Common Share of the Company for each fully vested RSU. The Board of Directors administers the equity based restricted share unit plan and will determine the terms of any restricted share units granted. Restricted share units currently granted normally fully vest and expire by the end of the fifth year.

A number of restricted share units equal to 10% of the Company’s outstanding common shares at any point in time are to be reserved for issuance under the equity based restricted share unit plan, less the aggregate number of stock options granted under the Stock Option Plan described above.

The change in the number of outstanding RSUs under the 2022 Plan are as follows:

	Number of RSUs (2022 Plan)
Balance as at April 30, 2023	1,511,750
Granted	30,000
Forfeiture	(47,250)
Balance as at April 30, 2024	1,494,500
Granted	180,000
Forfeiture	(42,250)
Balance as at April 30, 2025	1,632,250

As at April 30, 2025, the average remaining contractual life for outstanding RSUs under the 2022 Plan is 1.8 years (2024- 2.7 years).

Evertz Technologies Limited

Year ended

April 30, 2025

Note #19 continued ...

Compensation expense

Stock Option Plan

The share based compensation expense that has been charged against earnings over the fiscal period is $203 (2024 - $606). Compensation expense on grants was calculated using the Black-Scholes option pricing model. There were no grants issued in fiscal 2025.

Expected volatility is based on historical share price volatility over the past five years of the Company. Share based compensation expense was calculated using a weighted average forfeiture rate of 24% (2024 - 24%).

Restricted Share Unit Plan (2016 Plan)

The share based compensation expense that has been charged against earnings over the fiscal year is $6 (2024 - $310). Share based compensation expense was calculated using a weighted average forfeiture rate of 0% (2024 - 0%).

As at April 30, 2025, there were no remaining and outstanding units remaining, and the total liability included within trade and other payables is nil (2024 - $154).

Restricted Share Unit Plan (2022 Plan)

The share base compensation expense that has been charged against earnings over the fiscal year is $4,750 (2024 - $4,204). Compensation expense on grants issued during the year was calculated using the fair value of the Company's share price at the grant date. Share based compensation expense was calculated using a weighted average forfeiture rate of 10% (2024 - 11%).

20. COMMITMENTS AND CONTINGENCIES

In the normal course of operations, the Company is party to a number of lawsuits, claims and contingencies. Accruals are made in instances where it is probable that liabilities have been incurred and where such liabilities can be reasonably estimated. Although it is possible that liabilities may be incurred in instances for which no accruals have been made, the Company believes the possibility of outflow of cash is remote and thus no additional provisions have been recognized.

The Company is committed to payments under long term debt agreements and certain lease obligations in Note 11 with minimum annual lease payments as follows:

	Redemption Liabilities		Leases Payments		Total
2026	$	3,798	$	3,511	$ 7,309
2027		-		5,130	5,130
2028		-		3,929	3,929
2029		-		3,801	3,801
2030		-		1,465	1,465
Thereafter		-		1,371	1,371
Balance as at April 30, 2025	$	3,798	$	19,207	$ 23,005

Total operating lease expense during the year was $601 (2024 - $472).

The Company has obtained documentary and standby letters of credit aggregating to a total of $13,218 (2024 - $11,781).

Evertz Technologies Limited
Year ended April 30, 2025

21. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The Company estimates that the fair value of financial instruments approximates their carrying values. The following summarizes the significant methods and assumptions used in estimating the fair values of financial instruments:

I. Quoted prices (unadjusted) in active markets for identical assets or liabilities.
II. Inputs other than quoted prices included in level I that are observable for the asset or liability, either directly or indirectly.
III. Inputs for the asset or liability that are not based on observable market data.

(a) Financial risk management:

The Company, through its financial assets and liabilities, is exposed to various risks. The following analysis provides a measurement of risks as at April 30, 2025:

Credit Risk

Credit risk is the risk of a financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, contract assets and trade and other receivables the total of which is the maximum exposure to credit risk. The Company performs evaluations of the financial situations of its customers and uses various controls and processes, such as credit checks and billings in advance to investigate credit risk. Management does not believe that there is significant credit concentration or risk not already provided for.

The Company sets up an allowance for doubtful accounts using the lifetime expected credit losses related to total receivables, while factoring in the credit risks of the individual customer and the aging of receivables. Amounts owing over 90 days are individually evaluated and provided for as an expected credit loss where appropriate in the allowance for doubtful accounts. When considering the need for provisions in relation to balances past due, the Company considers forward looking information such as region-specific economic factors including industry outlook, employment, politics, and other market indicators. The Company also takes into consideration customer specific payment history. The trade and other receivables are presented as follows net of the allowance for doubtful accounts:

		April 30, 2025	April 30, 2024
Trade and other receivables	$	74,872	87,252
Allowance for doubtful accounts		(3,129)	(2,902)
	$	71,743	84,350

The change in the allowance for doubtful accounts was as follows:

		April 30, 2025	April 30, 2024
Balance at beginning of year	$	2,902	2,831
Increase in allowance		551	897
Bad debt recaptured and write-offs		(541)	(715)
Impact of variation in exchange rates		217	(111)
Balance at end of year	$	3,129	2,902

Note #21 continued ...

The aging of trade and other receivables, net of the allowance for doubtful accounts was:

	April 30, 2025	April 30, 2024
Less than 30 days past billing date	$ 33,237	$ 31,908
30-60 days past billing date	13,909	11,255
61-90 days past billing date	6,770	7,712
Greater than 90 days past billing date	17,827	33,475
	$ 71,743	$ 84,350

Exchange Rate Risk

The Company transacts a significant portion of its business in U.S. dollars and is therefore exposed to currency fluctuations.

U.S. dollar financial instruments are as follows:

	April 30, 2025	April 30, 2024
Cash and cash equivalents	$ 9,416	$ 25,181
Trade and other receivables	81,085	90,867
Trade and other payables	(16,565)	(12,389)
	$ 73,936	$ 103,659

Based on the financial instruments as at April 30, 2025, a 5% change in the value of the U.S. dollar would result in a gain or loss of $3,696 in earnings before income tax.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company's primary source of liquidity is its cash reserves. The Company also maintains certain credit facilities to support short term funding of operations and trade finance. The Company believes it has sufficient available funds to meet current and foreseeable financial requirements. The Company expects to settle all current financial liabilities within the next year. Maturity of lease obligations are disclosed in Note 20.

SEGMENTED INFORMATION

The Company reviewed its operations and determined that it operates a single operating segment, the television broadcast equipment market. The single reportable operating segment derives its revenues from the sale of hardware and software solutions including related services, training and commissioning.

Revenue	2025	2024
United States	$ 357,609	$ 320,571
International	127,211	176,585
Canada	16,803	17,460
	$ 501,623	$ 514,616

Evertz Technologies Limited
Year ended
April 30, 2025

Note #22 continued ...

	April 30, 2025
	Property, Plant and Equipment	Goodwill	Intangible Assets	Right-of-Use Assets
United States	$ 3,274	$ 1,408	$ -	$ 2,454
International	10,022	18,593	346	2,900
Canada	18,915	-	-	10,462
	$ 32,211	$ 20,001	$ 346	$ 15,816
	April 30, 2024
---	---	---	---	---
	Property, Plant and Equipment	Goodwill	Intangible Assets	Right-of-Use Assets
United States	$ 3,485	$ 1,400	$ 60	$ 3,107
International	9,551	18,369	1,038	3,128
Canada	21,348	1,583	-	14,197
	$ 34,384	$ 21,352	$ 1,098	$ 20,432

23. RELATED PARTY TRANSACTIONS

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Company and other related parties are disclosed below.

Related Party Transactions

Two shareholders each indirectly hold a 16% interest in the Company’s leased premises in Ontario. This lease expires in 2029 with a total of $4,323 committed over the remaining term. During the year, rent paid for the leased principal premises amounted to $1,086 (2024 – $1,081) with no outstanding amounts due as at April 30, 2025.

On December 1, 2008 the Company entered into a property lease agreement where two shareholders each indirectly hold a 20% interest in the Company’s leased premises in Ontario. This lease expires in 2028 with a total of $3,343 committed over the remaining term. During the year, rent paid for the leased principal premises amounted to $903 (2024 – $892) with no outstanding amounts due as at April 30, 2025.

On May 1, 2009 the Company entered into a property lease agreement where two shareholders each indirectly hold a 35% interest. This lease expires in 2029 with a total of $2,283 committed over the remaining term. During the year, rent paid for the leased principal premises amounted to $543 (2024 – $543) with no outstanding amounts due as at April 30, 2025.

On May 1, 2016 the Company entered into a property lease agreement where two shareholders each hold a 46.6% interest. This lease expires in 2026 with a total of $1,110 committed over the remaining term. During the year, rent paid for the leased principal premises amounted to $1,025 (2024 – $1,011) with no outstanding amounts due as at April 30, 2025.

Evertz Technologies Limited

Year ended

April 30, 2025

Note #23 continued ...

The Company also leases properties where two shareholders indirectly own 100% interest. There were no amounts owing on the leases as at April 30, 2025. The term of these leases are as follows:

Lease Commencement Date	Lease Expiry Date	Amount committed over remaining term	Rent paid 2025	Rent paid 2024
October 2021	September 2026	$ 454	$ 310	$ 301
December 2023	November 2028	$ 1,212	$ 278	$ 192
August 2016	July 2026	$ 354	$ 281	$ 273

These transactions were in the normal course of business and entered into at their respective fair values.

The remuneration of directors and other members of key management personnel for the years ended April 30, 2025 and April 30, 2024 are as follows:

	2025	2024
Short-term salaries and benefits	$ 5,420	$ 5,090
Share-based payments	-	-
	$ 5,420	$ 5,090

The total employee benefit expense was $210,554 (2024 - $197,148).

Subsidiaries:

The Company has the following significant subsidiaries:

Company	% Ownership	Location
Evertz Microsystems Ltd.	100%	Canada
Evertz USA	100%	United States
Evertz UK	100%	United Kingdom
Holdtech Kft.	100%	Hungary
Quintech Electronics & Communications Inc.	100%	United States
Tech Digital Manufacturing Limited	100%	Canada
Truform Metal Fabrication Ltd.	75%	Canada
Ease Live AS	73%	Norway

NON-CONTROLLING INTEREST

The Company has subsidiaries with non-controlling interests of 25% of Truform Metal Fabrication Ltd., located in Canada, and 10% with Studiotech Poland Sp. z.o.o., a subsidiary of Holdtech Kft. located in Poland. Ease Live AS, located in Norway, also has a non-controlling interest of 27% of Ease Live AS, located in Norway, whose interest has been separately recorded as a redemption liability (see note 13).

Evertz Technologies Limited

Year ended

April 30, 2025

Note #24 continued ...

The table below summarizes the aggregate financial information relating to the above subsidiaries before eliminating entries, as no such subsidiary is individually significant.

	April 30,
	2025	2024
Current assets	$ 17,181	$ 21,170
Non-current assets	17,136	14,296
Current liabilities	4,462	3,784
Non-current liabilities	1,695	1,603
Equity attributable to shareholders	24,992	26,669
Non-controlling interest	3,168	3,410
	April 30,
	2025	2024
Revenue	$ 32,959	$ 43,918
Net earnings attributable to:
Shareholders	2,843	6,113
Non-controlling interest	374	857

During the year, $750 (2024 - $400) in dividends were paid to non-controlling interests.

25. CAPITAL DISCLOSURES

The Company's capital is composed of total equity attributable to shareholders which totals $268,123 (2024 - $263,267) as at April 30, 2025. The Company's objective in managing capital is to ensure sufficient liquidity to finance increases in non-cash working capital, capital expenditures for capacity expansions, pursuit of selective acquisitions and the payment of quarterly dividends. The Company's strategy on capital risk management has not changed significantly since April 30, 2025.

The Company takes a conservative approach towards financial leverage and management of financial risk and the Company currently satisfies their internal requirements.

The Company is not subject to any capital requirements imposed by a regulator.

26. EARNINGS PER SHARE

	2025	2024
Weighted average common shares outstanding	76,010,401	76,088,691
Dilutive-effect of stock options	965,071	956,167
Diluted weighted average common shares outstanding	76,975,472	77,044,858

The weighted average number of diluted common shares excludes 484,500 options because they were anti-dilutive during the period (2024 - 702,500).

Evertz Technologies Limited

Year ended

April 30, 2025

INCOME TAXES

The Company’s effective income tax rate differs from the statutory combined Canadian income tax rate as follows:

	2025	2024
Expected income tax expense using statutory rates (25%, 2024 - 25%)	$ 22,276	$ 24,340
Difference in foreign tax rates	(218)	(225)
Non-deductible stock based compensation	1,313	1,275
Non-deductible losses	348	717
Change in estimates relating to prior periods	388	397
Other	811	(173)
	$ 24,918	$ 26,331

Benefit arising from a previously unrecognized tax loss has been recognized in the year as a result of a change in estimated taxable income in future years.

Components of deferred income taxes are summarized as follows:

	April 30, 2025	April 30, 2024
Deferred income tax assets (liabilities):
Tax loss carried forward	$ 626	$ 395
Research and development tax credits	(3,443)	(3,087)
Equipment tax vs accounting basis	7,978	6,239
Non-deductible reserves	4,637	3,347
	$ 9,798	$ 6,894

As at April 30, 2025, the Company had $8,118 in tax losses for which no deferred tax asset has been recognized in the statement of financial position. Of these losses, $1,166 expire in 2026 while the remaining balance has no expiry.

SUBSEQUENT EVENT

On June 25, 2025 the Company declared a quarterly dividend of $0.20 with a record date of July 4, 2025 and a payment date of July 11, 2025.

Evertz Technologies Limited
Year ended April 30, 2025

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Evertz Technologies Limited — Audit Report / Information 2025

45828_rns_2025-06-25_6f286c9c-ca3a-445f-b198-0c46aa8ae8d5.pdf

EVERTZ TECHNOLOGIES LIMITED

EVERTZ TECHNOLOGIES LIMITED

Independent Auditor’s Report

Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition

Description of the key audit matter

Other Information

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

EVERTZ TECHNOLOGIES LIMITED

EVERTZ TECHNOLOGIES LIMITED

EVERTZ TECHNOLOGIES LIMITED

EVERTZ TECHNOLOGIES LIMITED

EVERTZ TECHNOLOGIES LIMITED

EVERTZ TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. STATEMENT OF COMPLIANCE

2. MATERIAL ACCOUNTING POLICIES

Basis of Measurement

Functional and Presentation Currency

Basis of Consolidation

Revenue Recognition

Step 1: Identifying the contract

Step 2: Identifying performance obligations

Step 3: Determining the transaction price

Step 4: Allocating the transaction price to performance obligations

Step 5: Recognizing revenue upon satisfaction of performance obligations

Finance Income

Cash and Cash Equivalents

Inventories

Property, Plant and Equipment

Impairment of Non-Financial Assets

Intangible Assets

Intangible Assets

Research and Development

Provisions

Leasing

Foreign Currency Translation

Income Taxes

Current Tax

Deferred Tax

Share Based Compensation

Earnings Per Share

Finance Costs

Investment Tax Credits

Financial Instruments

Financial Assets

Impairment of Financial Assets

Financial Liabilities and Equity Instruments Issued by the Company

Critical Accounting Estimates and Judgments

Operating Segments

Changes in Accounting Policies

Lease Liability in Sale and Leaseback Transactions

Presentation of Current and Non-Current Liabilities

New and Revised IFRSs Issued but Not Yet Effective

Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates

Presentation and Disclosure in Financial Statements

Disclosure in Subsidiaries without Public Accountability

3. TRADE AND OTHER RECEIVABLES

4. INVENTORIES

5. PROPERTY, PLANT AND EQUIPMENT

6. RIGHT-OF-USE ASSETS

7. GOODWILL

Recoverable Amount

Discount Rate

Perpetual Growth Rate

Sensitivity Analysis

8. INTANGIBLES

9. INVESTMENTS AND BUSINESS COMBINATIONS

10. PROVISIONS

Warranty and Returns

Lease/Retirement Obligations

11. LEASE LIABILITIES

12. CREDIT FACILITIES

13. REDEMPTION LIABILITY

Evertz Technologies Limited Audit Report / Information 2025