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Scryb Inc. Audit Report / Information 2025
44033_rns_2026-01-27_c52d707f-b40f-4dda-b6ef-9472d1c2def3.pdf
Audit Report / Information
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Scryb Inc.
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024
INDEX
Independent Auditor's Report 2 - 6
Consolidated Statements of Financial Position 7
Consolidated Statements of Loss and Comprehensive Loss 8
Consolidated Statements of Changes in Shareholders' Equity 9
Consolidated Statements of Cash Flows 10
Notes to the Consolidated Financial Statements 11 – 50
JONES & O'Connell LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
43 Church Street, Suite 500 + P.O. Box 1237 + St. Catharines, ON + L2R 7A7
phone 905.688.4842 fax 905.688.1746
www.jonesoconnell.ca
Independent Auditor's Report
To the Shareholders of Scryb Inc.
Opinion
We have audited the consolidated financial statements of Scryb Inc. ("the Group"), which comprise the consolidated statements of financial position as at September 30, 2025 and September 30, 2024 and the consolidated statements of income (loss) and comprehensive Income (loss), consolidated statements of changes in shareholders' equity and consolidated statements of cash flows for the years then ended, and notes to 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 Scryb Inc. as at September 30, 2025 and September 30, 2024 and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).
Basis for Opinion
We conducted our audits 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 Group in accordance with the ethical requirements that are relevant to our audits 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.
Emphasis of Matter - Comparative Figures
We draw attention to Note 23, which indicates that the amounts shown for comparative purposes as at and for the year ended September 30, 2024 have been restated from amounts previously presented by the Group to correct for errors identified by management during the year.
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 Group for the years ended September 30, 2025 and September 30, 2024. 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. We have identified the following key audit matters.
Independent Auditor's Report
To the Shareholders of Scryb Inc. (Continued)
Key Audit Matters (Continued)
Loss of Control of Subsidiary
Description of the matter
We draw attention to Note 6 to the consolidated financial statements. During the year, the Group lost control of its former subsidiary Cybeats Technologies Corp. via dilution of its ownership interest below 50%.
Why the matter is a key audit matter
We identified the calculation of the gain on loss of control and related presentation and disclosures as a key audit matter, due to the judgement involved and the pervasive effect the transaction has on the consolidated financial statements.
How the matter was addressed in the audit
The primary procedure we performed to address this key audit matter included the following:
We evaluated management's positions regarding the loss of control of Cybeats Technologies Corp. and the continued presentation as regular operations and reviewed the calculation of the gain on loss of control and related disclosures.
Prior Period Adjustments
Description of the matter
We draw attention to Note 23 to the consolidated financial statements. Errors were detected with respect to the accuracy of certain prior year figures previously reported by management.
Why the matter is a key audit matter
We identified the accuracy of prior year figures to be a key audit matter given the pervasiveness of the impact of these errors on the balances for the years ended September 30, 2025 and September 30, 2024.
How the matter was addressed in the audit
The primary procedures we performed to address this key audit matter included the following:
We reviewed management's corrections of the various errors identified related to the prior year figures, agreeing back to supporting documentation and assessing the accuracy of the corrected amounts. We reviewed the impact of these corrections on the prior year figures for the year ended September 30, 2024 and the opening balances for the year ended September 30, 2025, and the related disclosures provided in Note 23.
JONES & O'CONNELL LP
CHARTERED PROFESSIONAL ACCOUNTANTS
Independent Auditor's Report
To the Shareholders of Scryb Inc. (Continued)
Key Audit Matters (Continued)
Going Concern
Description of the matter
We draw attention to Note 4 to the consolidated financial statements. Management has assessed there is no material uncertainty on the Group's ability to continue as a going concern.
Why the matter is a key audit matter
We identified management's assessment of the Group's ability to continue as a going concern to be a key audit matter due to the significant judgement involved. This matter represented an area of higher assessed risk of material misstatement, which required significant auditor judgment in the evaluation of the results of our procedures.
How the matter was addressed in the audit
The primary procedure we performed to address this key audit matter included the following:
We evaluated management's assessment of the Group's ability to continue as a going concern. This included verifying the individual assumptions management made in the assessment and agreeing the assumptions back to the relevant supporting documentation.
Evaluation of Intangible Asset for Potential Impairment
Description of the matter
We draw attention to Note 10 to the consolidated financial statements. The intangible asset is $nil (2024-$2,905,664). The intangible asset was derecognized during the year ended September 30, 2025 as part of the loss of control event as described in Note 6. Previously, at each reporting date, the Group was required to assess the recoverable amount of the intangible asset compared to the carrying amount to determine if the asset was impaired. The Group's assessment of the recoverable amount of the intangible asset was a significant management judgment as at September 30, 2024.
Why the matter is a key audit matter
We identified the evaluation of the recoverable amount of the intangible asset as a key audit matter. This matter represented an area of higher assessed risk of material misstatement, which required significant auditor judgment in the evaluation of the results of our procedures.
How the matter was addressed in the audit
The primary procedure we performed to address this key audit matter included the following:
We evaluated the appropriateness of the Group's impairment analysis by assessing the calculation of the intangible asset's recoverable amount in accordance with IAS 36.
JONES & O'Connell LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
Independent Auditor's Report
To the Shareholders of Scryb Inc. (Continued)
Information Other than the Consolidated Financial Statements and Auditor's Report Thereon
Management is responsible for other information. Other information comprises the information included in Management's Discussion and Analysis for the years ended September 30, 2025 and September 30, 2024 filed with the relevant Canadian Securities Commissions. 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 audits 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. 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 the auditors' report. We have nothing to report in this regard.
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 as issued by the IASB 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 Group'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 Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group'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 it 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 a part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgement 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 a 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 Group's internal control.
JONES & O'Connell
CHARTERED PROFESSIONAL ACCOUNTANTS
Independent Auditor's Report
To the Shareholders of Scryb Inc. (Continued)
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements (Continued)
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude of 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 Group'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 Group 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 Group 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.
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 Wayne O'Connell.
Jones & O'Connell LLP
Jones & O'Connell LLP
Chartered Professional Accountants
Licensed Public Accountants
St. Catharines, Ontario
January 27, 2026
JO Jones & O'Connell LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
Scryb Inc.
CONSOLIDATED ANNUAL STATEMENTS OF FINANCIAL POSITION
(Audited - Expressed in Canadian dollars)
| As at | September 30, 2025 | September 30, 2024
(Note 23) |
| --- | --- | --- |
| Assets | | |
| Current Assets | | |
| Cash | $ 794,573 | $ 110,001 |
| Other receivables (note 5) | 104,901 | 1,070,266 |
| Investment in Glow LifeTech Corp. (note 7) | 300,000 | 247,500 |
| Due from Glow LifeTech Corp. (note 7) | 50,000 | - |
| Due from related parties (note 6) | 1,194,406 | - |
| Loan receivable (note 18) | - | 210,284 |
| Prepaid expenses | 301,381 | 794,027 |
| | 2,745,262 | 2,432,078 |
| Non-Current Assets | | |
| Due from Glow LifeTech Corp. (note 7) | - | 1,068,035 |
| Property, plant and equipment (note 8) | 1,417 | 7,367 |
| Right-of-use asset (note 9) | 88,526 | 25,573 |
| Reclamation bonds (note 12) | 86,172 | 79,068 |
| Investment in associates (note 6) | 8,784,349 | 2,222,395 |
| Intangible assets (notes 10) | - | 2,905,664 |
| Total assets | 11,705,727 | 8,740,180 |
| Current Liabilities | | |
| Current Liabilities | | |
| Accounts payable and accrued liabilities | 867,886 | 5,449,028 |
| Current portion of lease liability (note 11) | 88,886 | - |
| Due to related parties (note 17) | 342,332 | 1,315,964 |
| Current portion of government loans (note 13) | 146,161 | 110,566 |
| Unearned revenue | - | 2,158,540 |
| Short term debt | - | 235,000 |
| Current portion of convertible debenture (note 15) | 110,578 | - |
| | 1,555,844 | 9,269,098 |
| Non-Current Liabilities | | |
| Government loans (note 13) | 107,910 | 128,115 |
| Lease liability (note 11) | 8,171 | - |
| Convertible debentures (note 15) | 907,002 | 1,977,440 |
| Total Liabilities | 2,578,927 | 11,374,653 |
| Shareholders' Equity | | |
| Capital stock (note 14 (a)) | 44,472,952 | 43,307,617 |
| Contributed surplus (note 14 (b)) | 22,020,034 | 21,577,704 |
| Warrant reserve (note 14 (c)) | 3,693,094 | 2,876,463 |
| Equity component of convertible debenture | 85,636 | - |
| Deficit | (61,144,914) | (67,319,205) |
| Total Equity to Shareholders of Scryb Inc. | 9,126,800 | 442,578 |
| Non Controlling Interest | - | (3,077,052) |
| Total Shareholders Equity | 9,126,800 | (2,634,473) |
| Total Liabilities and Shareholders Equity | $ 11,705,727 | $ 8,740,180 |
Note 2 - Principles of Consolidation
Note 22 - Subsequent Events
APPROVED ON BEHALF OF THE BOARD OF DIRECTORS
"Greg Van Staveren"
Director
"Michael Minder"
Director
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
CONSOLIDATED ANNUAL STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024
(Audited - Expressed in Canadian dollars)
| Twelve months ended | ||
|---|---|---|
| September 30, 2025** | September 30, 2024 | |
| (Note 23) | ||
| Revenues | ||
| Product sales | $ 325,273 | $ 1,785,386 |
| Other revenues | 104,276 | 57,193 |
| 429,548 | 1,842,579 | |
| Expenses | ||
| Professional & consulting fees | 1,491,293 | 1,222,972 |
| Salaries and wages | 1,371,059 | 6,792,257 |
| Product research and development costs | 220,654 | 1,298,513 |
| Amortization and depreciation | 339,782 | 1,668,873 |
| Interest and accretion | 492,781 | 550,012 |
| Insurance expenses | 66,195 | 77,299 |
| Share-based compensation (note 15b) | 226,002 | 1,483,326 |
| Investor relations, advertising, and marketing | 76,965 | 2,113,064 |
| General, administrative, and other expenses | 171,141 | 275,766 |
| Foreign currency loss | 37,091 | 24,845 |
| 4,492,962 | 15,506,928 | |
| Net Income (Loss) from Operations | (4,063,413) | (13,664,349) |
| Other (Income) Expense | ||
| Debt forgiveness | (261,518) | (116,565) |
| Non-recurring settlement fees | 65,062 | 464,000 |
| Equity share of loss in Cybeats after change in control | 1,926,669 | - |
| Unrealized loss on investment in Glow LifeTech Corp. | 8,795 | 288,750 |
| Net loss on sale of investments | 104,654 | - |
| Net (gain) on derivative liability | (51,667) | - |
| (Gain) on sale of Intellectual Property | (177,799) | - |
| Impairment Loss on Raidian Joint Venture (note 6) | 475,534 | - |
| Write off receivables | 30,000 | - |
| Net (gain) on loss of control of Cybeats Technologies Corp. | (10,649,729) | - |
| Net Income (Loss) before Discontinued Operations | $ 4,466,586 | $ (14,300,534) |
| Income (Loss) from Discontinued Operations | ||
| Write off receivables | - | 558,743 |
| Non-recurring royalty revenues | (100,000) | - |
| Proportionate share of (gain) loss in FRR prior to sale | 285,917 | (86,244) |
| Net (gain) on sale of FRR | (1,350,762) | - |
| Net Income (Loss) and Comprehensive Income (Loss) | $ 5,631,431 | $ (14,773,033) |
| Net Income (Loss) Attributable to Non-Controlling Interest | $ (542,860) | $ (4,538,901) |
| Net Income (Loss) Attributable to Scryb Inc. Shareholders | $ 6,174,291 | $ (10,234,132) |
| Income (loss) per share | ||
| Basic and diluted (note 21) | $ 0.19 | $ (0.38) |
| Weighted average number of common shares outstanding, basic and diluted*** | 32,107,180 | 26,860,521 |
- Certain expenses have been reclassified to conform with the current presentation.
** Includes consolidated revenues and expenses with Cybeats Technologies Corp. to the date control ceased (note 6)
*** 10:1 share consolidation effective August 13, 2025; all weighted average shares outstanding adjusted to reflect.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
CONSOLIDATED ANNUAL STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024
(Audited - Expressed in Canadian dollars)
| Capital Stock | Warrant Reserve | Contributed Surplus | Deficit | Total Equity to Shareholders of Scryb Inc. | Non-Controlling Interests | Total Equity | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance - October 1, 2023 (Note 23) | 25,728,267 | $ | 42,932,587 | $ | 3,403,407 | $ | 20,601,699 | $ | (59,897,907) | $ | 7,039,786 | $ | (329,225) | $ | 6,710,562 |
| Expiration of warrants | - | - | (976,005) | 976,005 | - | - | - | - | |||||||
| Units issued from private placement, net of costs | 3,387,480 | 375,030 | 449,060 | - | - | 824,090 | - | 824,090 | |||||||
| Transfer from non-controlling interests | - | - | - | - | 287,303 | 287,303 | (287,303) | - | |||||||
| Contributions from non-controlling interests | - | - | - | - | 1,850,623 | 1,850,623 | 1,534,739 | 3,385,361 | |||||||
| Allocation of conversion premium | - | - | - | - | 36,832 | 36,832 | 24,690 | 61,522 | |||||||
| Allocation of contributed surplus | - | - | - | - | 638,076 | 638,076 | 518,948 | 1,157,025 | |||||||
| Net loss for the period (note 23) | - | - | - | - | (10,234,132) | (10,234,132) | (4,538,901) | (14,773,033) | |||||||
| Balance - September 30, 2024 (Note 23) | 29,115,747 | $ | 43,307,617 | $ | 2,876,463 | $ | 21,577,704 | $ | (67,319,205) | $ | 442,578 | $ | (3,077,052) | $ | (2,634,473) |
| Balance - October 1, 2024 (Note 23) | 29,115,747 | $ | 43,307,617 | $ | 2,876,463 | $ | 21,577,704 | $ | (67,319,205) | $ | 442,578 | $ | (3,077,052) | $ | (2,634,473) |
| Expiration of warrants | - | - | (216,329) | 216,329 | - | - | - | - | |||||||
| Units issued from private placement, net of costs | 17,679,255 | 1,118,656 | 1,032,960 | - | - | 2,151,616 | - | 2,151,616 | |||||||
| Shares issued from the settlement of debt | 233,400 | 46,680 | - | - | - | 46,680 | - | 46,680 | |||||||
| Proceeds from issuance of convertible debenture | - | - | - | - | - | 85,636 | - | 85,636 | |||||||
| Share-based compensation | - | - | - | 226,002 | - | 226,002 | - | 226,002 | |||||||
| Net loss for the period | - | - | - | - | 6,174,291 | 6,174,291 | (542,860) | 5,631,431 | |||||||
| Disposal of equity due to loss of control | - | - | - | - | - | - | 3,619,912 | 3,619,912 | |||||||
| Balance - September 30, 2025* | 47,028,402 | $ | 44,472,952 | $ | 3,693,094 | $ | 22,020,034 | $ | (61,144,914) | $ | 9,126,804 | $ | - | $ | 9,126,800 |
- 10:1 share consolidation effective August 13, 2025; all common shares outstanding adjusted to reflect.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
CONSOLIDATED ANNUAL STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024
(Audited - Expressed in Canadian dollars)
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| (Note 23) | ||
| Cash flows from (used in) operating activities | ||
| Net income (loss) for the period from continuing operations | $ 4,466,586 | $ (14,300,534) |
| Items not affecting cash from operations: | ||
| Depreciation | 99,983 | 204,219 |
| Amortization | 238,830 | 1,464,654 |
| Net gain on the loss of control of Cybeats Technologies Corp. | (10,649,729) | - |
| Net loss on sale of investments | 104,654 | - |
| Net gain on sale of intellectual property | (177,799) | - |
| Net gain on debt settlement | (21,078) | - |
| Interest and accretion, net | 248,694 | 121,500 |
| Interest earned on reclamation bond | (7,104) | - |
| Gain on derivative liability | (51,667) | - |
| Unrealized loss on investment in Glow LifeTech Corp. | 8,795 | 288,750 |
| Share-based compensation | 226,002 | 1,483,326 |
| Impairment Loss on Raidian Joint Venture | 475,534 | - |
| Equity share of loss in Cybeats after change in control | 1,858,349 | - |
| Proportionate share of loss in Raidian | 68,319 | - |
| Changes in non-cash working capital items: | ||
| Increase in prepaid expenses | 50,859 | 997,625 |
| Increase (decrease) in accounts receivable | 35,316 | (495,020) |
| Increase in accounts payable and accrued liabilities | 250,662 | 2,630,893 |
| Decrease in cash on loss of control of Cybeats Technologies Corp. | (11,670) | - |
| Increase (decrease) in unearned service revenue | (116,836) | 1,566,935 |
| Net cash used in operating activities from continuing operations | (2,903,300) | (6,037,653) |
| Cash flows from (used in) operating activities from discontinued operations | ||
| Net income (loss) for the period from discontinuing operations | 1,164,845 | (472,499) |
| Items not affecting cash from operations: | ||
| Write off of receivables | - | 558,753 |
| Proportionate share of loss in FRR prior to sale | 285,917 | 92,758 |
| Net gain on sale of FRR | (1,350,762) | - |
| Net cash used in operating activities from discontinued operations | 100,000 | 179,012 |
| Cash flows used in investing activities | ||
| Net purchase of property, plant and equipment | (920) | - |
| Purchases of Cybeats Technologies Corp. shares | (230,327) | - |
| Advances to Fionet Rapid Response Group | - | (6,672) |
| Proceeds from sale of Glow LifeTech shares | 904,324 | - |
| Proceeds collected on the sale of FRR | 3,500,000 | - |
| Decrease (increase) in Investment in Glow LifeTech Corp. | - | (26,077) |
| Investment in Raidian Inc. | (366,054) | - |
| (Increase) in due from Cybeats Technologies Corp. | (1,519,503) | - |
| Increase (decrease) in due from Glow LifeTech Corp. | (52,238) | 30,707 |
| Net cash used in investing activities | 2,235,282 | (2,042) |
| Cash flows from (used in) financing activities | ||
| Proceeds from private placement, net of issue costs | 2,151,614 | 824,091 |
| Proceeds from convertible debenture shares issued, net of issue costs | 1,021,996 | - |
| Conversion of convertible debenture units | (86,507) | - |
| Increase in convertible debenture net of costs | - | 1,855,940 |
| Interest paid on convertible debenture | 54,609 | - |
| Decrease in short term debt | (235,000) | (381,933) |
| Contributions/transfers from non-controlling interests | - | 3,120,582 |
| Increase (decrease) in due to related parties | (1,587,748) | 670,964 |
| Net increase (decrease) in lease liabilities | (66,375) | (270,798) |
| Net cash from financing activities | 1,252,590 | 5,818,846 |
| Increase (decrease) in cash for the period | 684,572 | (41,838) |
| Cash - beginning of period | 110,001 | 151,839 |
| Cash - end of period | $ 794,574 | $ 110,001 |
The accompanying notes are an integral part of these consolidated financial statements.
Page 10
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
1. NATURE OF OPERATIONS
Scryb Inc. is a technology company headquartered in Toronto, Ontario, with interests spanning digital health, cybersecurity, biotech, and artificial intelligence. Incorporated in British Columbia and amalgamated with ChroMedX on January 31, 2017 (formerly operating as Relay Medical Corp.), the Company changed its name to Scryb Inc. on December 8, 2021. Its principal address is 65 International Blvd., Suite 103, Toronto, ON, M9W 6L9.
2. BASIS OF PRESENTATION
Statement of Compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The consolidated financial statements of the Company for the year ended September 30, 2025, were reviewed by the Audit Committee and approved and authorized for issue by the Board of Directors on January 27, 2026.
Principles of Consolidation
These consolidated financial statements include the accounts of the Company and its subsidiaries. The Company held a 51% controlling interest Cybeats Technologies Corp. and Cybeats Technologies Inc. up to November 29, 2024, at which point control was considered lost. On the date of loss of control, all of the assets and liabilities of Cybeats Technologies Corp and Cybeats Technologies Inc. were derecognized. All significant intercompany balances and transactions have been eliminated on consolidation.
During the year ended September 30, 2025, the Company's position in Cybeats Technologies Corp. had been diluted to under 49% and as a result, management has determined it no longer holds a controlling interest in Cybeats. From the date control ceased, the Company accounts for its' investment in Cybeats using the Equity method of accounting.
Subsidiaries
Subsidiaries are entities over which the Company has control. Control is defined as when the Company is exposed or has rights to the variable returns from the subsidiary and has the ability to affect those returns through its power over the subsidiary. Power is defined as existing rights that give the Company the ability to direct the relevant activities of the subsidiary. Subsidiaries are fully consolidated from the date control is transferred to the Company and are de-consolidated from the date control ceases.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Non-controlling interests
A non-controlling interest is initially recognized as the proportionate share of the identifiable net assets of the subsidiary on the date of its acquisition and is subsequently adjusted for the noncontrolling interest's share in changes of the acquired subsidiary's earnings and capital. Effects of transactions with non-controlling interests are recorded in equity if there is no change in control.
Basis of Measurement
These consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.
Functional and Presentation Currency
The consolidated financial statements are presented in Canadian dollars, which is also the Company's functional currency.
3. MATERIAL ACCOUNTING POLICY INFORMATION
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements.
(a) Impairment
At each financial position reporting date, the carrying amounts of the Company's long-lived assets are reviewed to determine whether there is any indication that those assets are impaired at a cash generating unit level. If any such indication exists, the recoverable amount of the cash generating unit is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use, which is the present value of future cash flows expected to be derived. If the recoverable amount is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for the period.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) 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 cash generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.
The accompanying notes are an integral part of these consolidated financial statements.
Page 12
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
(b) Intangible assets
The Company records intangible assets at fair value at the date of acquisition. An intangible asset is capitalized when the economic benefit associated with an asset is probable and when the cost can be measured reliably. Intangible assets are carried at cost less accumulated depreciation and impairment losses. Cost consists of expenditures directly attributable to the acquisition of the assets. Intangible assets with finite lives are tested and amortized over the related benefit period. Those with indefinite lives are not amortized and are tested for impairment on an annual basis. The Company's intangible assets consist of patents, patent applications, software license and research and development costs that are amortized over their five-year estimated useful life.
(c) Share-based Payments
The Company accounts for share-based payments using the fair value method. Under this method, compensation expense is measured at fair value on the date of grant using the Black Scholes option pricing model, and is recognized as an expense or capitalized, depending on the nature of the grant, with a corresponding increase in equity, over the period that the employees earn the options. The amount recognized as an expense is adjusted to reflect the number of share options expected to vest. The Black Scholes option pricing model requires the input of subjective assumptions, including the expected term of the option and stock price volatility.
For transactions with employees and others providing similar services, the Company measures the fair value of the services received by reference to the fair value of the equity instruments granted. For transactions with parties other than employees, the Company measures the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. When the Company cannot estimate reliably the fair value of the goods or services received, it measures their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted.
(d) Foreign Currency Translation
The Company's functional and presentation currency is the Canadian dollar. Foreign currency transactions are initially recorded in the functional currency at the transaction date exchange rate. At closing date, monetary assets and liabilities denominated in a foreign currency are translated into the functional currency at the closing date exchange rate, and non-monetary assets and liabilities at the historical rates. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognized in profit or loss.
The accompanying notes are an integral part of these consolidated financial statements.
Page 13
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
(e) Financial Instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument.
Under IFRS 9, financial assets are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. IFRS 9 contains the primary measurement categories for financial assets: measured at amortized cost, fair value through other comprehensive income ("FVTOCI") and fair value through profit and loss ("FVTPL").
Below is a summary showing the classification and measurement bases of financial instruments;
| Asset or Liability | Measurement |
|---|---|
| Cash | Fair value |
| Other receivables | Amortized cost |
| Investment in Glow LifeTech Corp. | Fair value |
| Loan receivable | Amortized cost |
| Due from related parties | Amortized cost |
| Reclamation bonds | Amortized cost |
| Due from Glow LifeTech Corp. | Amortized cost |
| Accounts payable and accrued liabilities | Amortized cost |
| Due to related parties | Amortized cost |
| Government loans | Amortized cost |
| Short term debt | Amortized cost |
| Convertible debentures | Amortized cost |
Financial assets
Financial assets are classified as either financial assets at FVTPL, amortized cost, or FVTOCI. The Company determines the classification of its financial assets at initial recognition.
(i) Financial assets recorded at FVTPL
Financial assets are classified as FVTPL if they do not meet the criteria of amortized cost or FVTOCI. Gains or losses on these items are recognized in profit or loss.
(ii) Amortized cost
Financial assets are classified as measured at amortized cost if both of the following criteria are met and the financial assets are not designated as at FVTPL: 1) the object of the Company's business model for these financial assets is to collect their contractual cash flows; and 2) the asset's contractual cash flows represent "solely payments of principal and interest".
Page 14
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
(iii) Fair Value through other comprehensive income
Investments recorded at fair value through other comprehensive income (FVOCI) On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to measure the investment at FVOCI whereby changes in the investment's fair value (realized and unrealized) will be recognized permanently in OCI with no reclassification to profit or loss. The election is made on an investment-by-investment basis.
Financial liabilities
Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. The Company determines the classification of its financial liabilities at initial recognition.
(i) Amortized cost
Financial liabilities are classified as measured at amortized cost unless they fall into one of the following categories: financial liabilities at FVTPL, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition, financial guarantee contracts, commitments to provide a loan at a below-market interest rate, or contingent consideration recognized by an acquirer in a business combination.
(ii) Financial liabilities recorded FVTPL
Financial liabilities are classified as FVTPL if they fall into one of the five exemptions detailed above.
Transaction costs
Transaction costs associated with financial instruments, carried at FVTPL, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability.
Subsequent measurement
Instruments classified as FVTPL are measured at fair value with unrealized gains and losses recognized in profit or loss. Instruments classified as amortized cost are measured at amortized cost using the effective interest rate method. Instruments classified as FVTOCI are measured at fair value with unrealized gains and losses recognized in other comprehensive income.
Derecognition
The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled, or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.
The accompanying notes are an integral part of these consolidated financial statements.
Page 15
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Expected credit loss impairment model
IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial application. The adoption of the expected credit loss impairment model had no impact on the Company's consolidated financial statements.
The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full or when the financial asset is more than 90 days past due.
The carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off.
Financial instruments at fair value through profit and loss.
Financial instruments recorded at fair value on the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
- Level 1 – valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities
- Level 2 – valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices): and
- Level 3 – valuation techniques using inputs for the asset or liability that are not based on observable market date (unobservable inputs).
Cash and Investment in Glow LifeTech Corp. are measured at fair value using Level 1 inputs.
As at September 30, 2025 and 2024, the fair value of the financial liabilities approximates the carrying value, due to the short-term nature of the instruments.
(f) Cash
Cash consists of deposits in banks.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
(g) Revenue Recognition
Revenue from contracts with customers are based on IFRS 15: Revenue from Contracts with Customers and revenue is recognized when it has satisfied its performance obligation to the customers over time or at a single point in time. The company transfers control of a good or service over time and therefore satisfies a performance obligation and recognizes revenue over time. Revenue is recognized at a point in time when customers obtain control of the product.
(h) Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of loss and comprehensive loss during the financial period in which they are incurred.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in profit or loss in the period.
Amortization is calculated on a straight-line basis at the following annual rates:
| Laboratory and technical equipment | 3 years |
|---|---|
| Office furniture and equipment | 3 years |
| Computer equipment | 2 years |
(i) Income Taxes
Income tax on profit or loss for the year comprises of current and deferred tax. Current tax is the expected tax paid or payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax paid or payable in respect of previous years.
Deferred tax is recorded using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The effect on deferred income tax assets and liabilities of a change in income tax rates is recognized in the period that includes the date of the enactment or substantive enactment of the change. Deferred
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
tax assets and liabilities are presented separately except where there is a right of set off within fiscal jurisdictions.
(j) Basic and Diluted Income (Loss) per Share
Basic income (loss) per share has been calculated using the weighted average number of common shares outstanding during the year. Diluted income (loss) per share has been calculated using the weighted average number of common shares that would have been outstanding during the respective period had all of the stock options and warrants outstanding at year end having a dilutive effect been converted into shares at the beginning of the year and the proceeds used to repurchase the Company's common shares at the average market price for the year. If these computations prove to be antidilutive, diluted income (loss) per share is the same as basic income (loss) per share.
(k) Comprehensive Income (loss)
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) and represents the change in shareholders' equity which results from transactions and events from sources other than the Company's shareholders. Accumulated other comprehensive income (net of income taxes) is included on the consolidated statements of financial position as a component of common shareholders' equity.
(l) Investment in Associates
Investments in associates are accounted for using the equity method based on the Company's ability to exercise significant influence over the operating and financial policies of the investee.
Investments of this nature are recorded at original cost and adjusted periodically to recognize the Company's proportionate share of the associate's net income or losses after the date of investment, additional contributions made, and dividends received. Investments are written down when there has been a significant or prolonged decline in fair value.
(m) Leases
All leases are accounted for by recognizing a right-of-use asset and a lease liability except for leases of low value assets and leases with a duration of twelve months or less. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the term of the lease with the discount rate determined by using the incremental borrowing rate on commencement of the lease. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if this is judged to be shorter than the remaining lease term.
(n) Research and Development Costs
Research and development costs incurred in connection with new projects, including those undertaken through partnerships or joint ventures, are expensed as incurred in accordance with
The accompanying notes are an integral part of these consolidated financial statements.
Page 18
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
IAS 38 Intangible Assets. This policy applies to all costs related to the research phase, where activities are focused on exploring new technologies, concepts, or processes, and where outcomes remain highly speculative with no guarantee of success or long-term viability. Such costs include, but are not limited to, personnel expenses, materials, equipment, and fees paid to external partners or collaborators. Development costs are only capitalized if they meet strict criteria, including technical feasibility, the intention and ability to complete the project, and the likelihood of generating future economic benefits.
(o) Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence, related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount.
(p) Future Presentation Changes
New accounting standards issued but not yet effective
IFRS 18 – Presentation and Disclosure in Financial Statements
The IASB issued IFRS 18 Presentation and Disclosure in Financial Statements in April 2024. This standard replaces IAS 1 and introduces changes to the presentation of items in the statement of profit or loss (including required subtotals for operating profit and profit before financing and income taxes), enhanced principles for aggregation and disaggregation, and disclosure requirements for management-defined performance measures.
IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. The Company has not early adopted IFRS 18 and is currently assessing the impact of these presentation changes on its financial statements.
4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of these consolidated financial statements in conformity with IFRS requires that management make estimates and assumptions about future events that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results may differ from those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
The accompanying notes are an integral part of these consolidated financial statements.
Page 19
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
(i) Critical accounting estimates
Critical accounting estimates are estimates and assumptions made by management that may result in a material adjustment to the carrying amount of assets and liabilities within the next financial year and are, but are not limited to, the following:
Share based payments and warrants
The fair value of stock options and warrants issued are subject to the limitation of the Black Scholes option pricing model that incorporates market data and involves uncertainty in estimates used by management in the assumptions. Because the Black Scholes option pricing model requires the input of highly subjective assumptions, including the volatility of share prices, changes in subjective input assumptions can materially affect the fair value estimate.
Useful life of intangible assets
Management has exercised their judgment in determining the useful life of its patents, patent applications, software license and research and development costs. The estimate is based on the expected period of benefit of the patent and the expected life of the product in the marketplace.
(ii) Critical accounting judgments
Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are, but are not limited to, the following:
Determination of functional currency
In accordance with IAS 21, The Effects of Changes in Foreign Exchange Rates, management has determined that the functional currency of the Company is the Canadian dollar.
Evaluation of going concern
In assessing the Company's ability to continue as a going concern, management exercised significant judgement in determining whether conditions or events exist that would give rise to a material uncertainty. This assessment considered the Company's liquidity position, cash burn rate, asset realizability, it's recently demonstrated capacity to raise new equity, lack of any material litigation risk and the nature of operations as an investment holding company. While the Company has incurred substantial net losses in prior periods, management concluded that these historical results are not indicative of current or future losses. In addition, the Company believes that its largest investment Cybeats is financially independent and no longer relies on the resources of Scryb.
The accompanying notes are an integral part of these consolidated financial statements.
Page 20
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
As at the reporting date, the Company holds approximately $12 million in liquid assets, primarily in publicly traded securities, and has reduced its annualized cash burn rate to approximately $1,200,000. The Company's liabilities are all being paid on time and are dramatically lower than in prior years and prior to the de-consolidation of Cybeats in November 2024. In addition, management considered the liquidity and marketability of its largest investment, Cybeats, which has demonstrated sustained daily trading liquidity sufficient to fund the Company's annual cash requirements within a short period if required. Based on these factors, management determined that there is no material uncertainty related to events or conditions that may cast doubt on the Company's ability to continue as a going concern for at least twelve months from the reporting date.
Impairment of intangible assets
Management has exercised their judgment in determining if the patents are impaired. The judgment is based on the expected future benefit of the intangible assets and intellectual property.
Income taxes
Management has exercised their judgment in determining the provision for future income taxes. The judgment is based on the Company's current understanding of the tax law as it relates to the transactions and activities entered into by the Company.
5. OTHER RECEIVABLES
As at September 30, 2025 and, 2024, other receivables were comprised of the following:
| | September 30
2025 | September 30
2024
(Note 23) |
| --- | --- | --- |
| Trade receivables | - | 918,583 |
| HST receivable | 104,901 | 64,694 |
| Other receivables | - | 86,989 |
| | 104,901 | 1,070,266 |
The accompanying notes are an integral part of these consolidated financial statements.
Page 21
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
6. INVESTMENT IN ASSOCIATES
As at September 30, 2025 and, 2024, Investment in Associates was comprised of the following:
| | September 30
2025 | September 30
2024
(Note 23) |
| --- | --- | --- |
| Investment in Fionet Rapid Response Group | - | 447,899 |
| Advances to Fionet Rapid Response Group - non-interest bearing | - | 1,121,036 |
| Loan receivable from Fionet Rapid Response Group - @ 8% | - | 500,000 |
| Interest receivable on loan from Fionet Rapid Response Group | - | 153,459 |
| Equity investment in Cybeats Technologies Corp. | 8,784,349 | - |
| | 8,784,349 | 2,222,395 |
Fionet Rapid Response Group
On August 19, 2020, Scryb established a joint venture ("JV") with Fio Corporation ("Fio") to accelerate adoption and delivery of Fio's proven data-and-device platform. FRR Group is a recognized developer and marketer of a mobile software platform for delivering primary healthcare at the community level. On December 22, 2020, Fionet Rapid Response Group ("FRR") was incorporated in Ontario for the purposes of establishing the Joint Venture. As part of the Joint Venture agreement Scryb invested $1,500,000 into FRR through the provision of consulting services and provided a loan of $500,000. Under the terms of the Joint Venture agreement, Scryb received a 33% ownership in FRR along with 33% royalties on all FRR revenues related to individual testing, 20% royalties on all FRR revenues related to the FRR platform solutions, and 10% royalties on all FRR revenues related to data. Fio owned the remaining 67% ownership of FRR. The investment in associate had been initially recorded and recognized at its cost of $1,500,000 less the Company's share of markup on certain consulting services provided. The loan to the Fionet Rapid Response Group bears interest at the annual rate of 8% with no fixed terms of repayment.
On December 6, 2024, Scryb completed a transaction to sell its joint venture interest in Fionet Rapid Response Group Inc. ("FRR Group") to a private corporate development company.
Scryb will also be free to use technology developed by FRR Group on other potential projects, so long as they are not competitive to the business endeavors of the FRR Group.
| December 9, 2024 | September 30, 2024 | |
|---|---|---|
| (Note 23) | ||
| Opening balance | 447,865 | 613,672 |
| Share of equity loss | (360,420) | (165,806) |
| Sale of investment in FRR | (87,446) | - |
| - | 447,865 |
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Material Terms of Transaction
The total fixed proceeds paid to Scryb under the Transaction is CAD $3.5 million, which is inclusive of debt repayment by FRR as well as loans receivable from Fio Corp. Additionally, Scryb also reached a settlement with Fio Corp, receiving a one-time payment of $100,000. This payment voids any future royalty obligations owed by Fio Corp. through the original agreement's end date of December 31, 2025.
| Sale Price | 3,500,000 |
|---|---|
| Settlement of obligations | |
| Advances to FRR - non-interest bearing | (1,198,046) |
| Loan receivable from FRR - @ 8% | (500,000) |
| Interest receivable on loan from FRR | (153,459) |
| Demand loan receivable from Fio Corp. | (210,284) |
| Proceeds net of obligations | 1,438,211 |
| Carrying value of investment in FRR | (87,446) |
| Gain on Sale of Investment | 1,350,765 |
Cybeats Technologies Corp
As of September 30, 2025, Scryb held 74,857,950 of the issued and outstanding common shares (38.81%).
On November 29, 2024, Cybeats Technologies Corp. completed its non-brokered private placement financing through the issuance of 10,408,750 units at a share price of $0.16 per unit, for gross proceeds of $1,665,400, and settled $500,000 advances owing to Scryb in exchange for 3,125,000 shares. Due to the number of shares issued by Cybeats during this private placement, Scryb experienced a dilution in the issued and outstanding shares in Cybeats from 59.2% ownership to 49.23%. Under the principals of consolidation, management has determined this event has deemed a loss of control in Cybeats, and November 29, 2024 is the date Scryb ceased having a controlling interest in Cybeats. Scryb continues to hold significant influence in Cybeats and has accounted for its position in Cybeats as an investment in associate using the equity pickup method of accounting.
For the deconsolidation of Cybeats from the Scryb financials, the carrying value of net assets and liabilities of Cybeats were disposed on the date of control ceased. On the day control ceased, Scryb held 60 million shares in Cybeats with a fair market value of $0.15 per unit or $9,000,000. The fair value of warrants held by Scryb were calculated using the Black-Scholes pricing model for a total value of $21,258.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
A $10.65 million gain on loss of control was determined by the difference in carrying value of net assets and liabilities disposed, and the total fair market value of the investment in Cybeats at the time control ceased.
Carrying Value of Net Liabilities Disposed (date of loss of control):
| Cash | 11,670 |
|---|---|
| Accounts receivable | 930,049 |
| Prepaid expenses | 441,787 |
| Property, plant, and equipment | 7,367 |
| Accounts payable and accrued liabilities | (5,223,397) |
| Deferred revenues | (2,041,704) |
| Long-term payables | (2,040,988) |
| Investment in Cybeats Technologies Corp. | 331,862 |
| Deficit from controlling interests | (331,862) |
| Intellectual Property (net of accumulated amortization) | 2,666,835 |
| Non-controlling interest | 3,619,911 |
| Net Liabilities Disposed: | $ 1,628,471 |
Using the equity method of accounting, Scryb has a share of Cybeats' equity loss based on the ownership in Cybeats. From the day control ceased to the end of the reporting period September 30, 2025, Scryb recognized $1,897,138 in losses from Cybeats as its share of equity loss.
September 30, 2025
| Opening balance | - |
|---|---|
| Addition - Investment (loss of control) | 9,021,258 |
| Addition - Settlement of Debt | 1,429,903 |
| Addition - Purchase of Cybeats Shares | 230,327 |
| Share of equity loss (from November 29, 2024) | (1,897,138) |
| Closing Balance | 8,784,350 |
Due from Cybeats Technologies Corp.
The advances to Cybeats as of September 30, 2025, totaled $1,194,406, which included a $614,116 obligation to a related party which was assumed by Scryb. These receivables due from Cybeats are secured by way of a general security agreement (GSA), accrue interest 10% per annum, is due and payable by Cybeats on October 14, 2025.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Raidian Inc.
The Company holds a 24% equity interest in Raidian Inc., an associate over which it exercises significant influence. The investment was initially recognized at cost of $300,000 cash invested and $300,000 credited for past services performed and intellectual property assigned. During the year, the Company's share of Raidian's losses were recognized under the equity method per IAS 28. Due to objective evidence of impairment, including the project's lack of progress and uncertain future benefits, a full impairment loss was recorded under IAS 36, reducing the carrying amount to nil. The Company's maximum exposure is limited to its investment, with no additional commitments or guarantees.
| September 30, 2025 | |
|---|---|
| Opening balance | - |
| Addition - investment | 300,000 |
| Addition - Credit for past services & intellectual property assigned | 300,000 |
| Share of equity loss | (124,466) |
| Impairment loss on investment | (475,534) |
| Closing Balance | - |
7. INVESTMENT IN GLOW LIFETECH CORP.
On September 30, 2025, the Company held 6,000,000 commons shares (September 30, 2024 – 8,250,000) of Glow LifeTech Corp. ("Glow") or 3.5% of the issued and outstanding common shares.
On November 29, 2024, in a settlement agreement with Glow, Scryb received 19,260,352 common shares of Glow at an average price $0.06 per share by settling $1,070,273 in advances given to Glow. These shares are marked as restricted for a period of 4 months from the settlement.
Due from Glow LifeTech Corp.
The advances given to Glow LifeTech Corp. as of September 30, 2025, totaled $50,000 (September 30, 2024 - $1,068,035). These receivables due from Glow are non-interest bearing with no fixed terms of repayment.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
- PROPERTY, PLANT AND EQUIPMENT
| Laboratory equipment $ | Office furniture & equipment $ | Computer equipment $ | Total $ | |
|---|---|---|---|---|
| Cost | ||||
| As at September 30, 2023 | 44,426 | 207,094 | 14,338 | 265,858 |
| Disposals | - | (2,520) | - | (2,520) |
| As at September 30, 2024 | 44,426 | 204,574 | 14,338 | 263,338 |
| Additions | - | - | 1,890 | 1,890 |
| Disposals | (44,426) | (9,124) | (970) | (54,519) |
| As at September 30, 2025 | - | 195,450 | 15,258 | 210,708 |
| Laboratory equipment $ | Office furniture & equipment $ | Computer equipment $ | Total $ | |
| Amortization for the period | ||||
| As at September 30, 2023 | 35,188 | 203,309 | 14,338 | 252,835 |
| Disposals | - | (2,520) | - | (2,520) |
| Amortization for the period | 5,106 | 550 | - | 5,656 |
| As at September 30, 2024 | 40,294 | 201,339 | 14,338 | 255,971 |
| Disposals | (40,294) | (5,889) | (970) | (47,153) |
| Amortization for the period | - | - | 472 | 472 |
| As at September 30, 2025 | - | 195,450 | 13,841 | 209,291 |
| Laboratory equipment $ | Office furniture & equipment $ | Computer equipment $ | Total $ | |
| Net book value | ||||
| As at September 30, 2023 | 9,238 | 3,785 | - | 13,023 |
| As at September 30, 2024 | 4,132 | 3,235 | - | 7,367 |
| As at September 30, 2025 | - | - | 1,417 | 1,417 |
Following the cessation of control in Cybeats Technologies Corp., on November 29, 2024, the Property, Plant and Equipment of Cybeats held by Scryb was treated as a disposal and no longer reported with Scryb's consolidated financials (see note 6).
- RIGHT-OF-USE ASSET
Right-of-use assets consist of the lease for the Company's office space and is amortized over a period of 24 months.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
| | Period ended
September 30, 2025 | Period ended
September 30, 2024 |
| --- | --- | --- |
| Opening Balance | 25,573 | 224,136 |
| Additions | 163,433 | - |
| Disposals | - | - |
| Depreciation | (100,480) | (198,562) |
| Ending Balance | 88,526 | 25,573 |
10. INTANGIBLE ASSETS
The following is a summary of patents as of September 30, 2025:
| Software License | Intellectual Property | Total | |
|---|---|---|---|
| Balance September 30, 2023 | 11,990 | 4,370,486 | 4,382,476 |
| Amortization | (11,990) | (1,464,822) | (1,476,812) |
| Balance September 30, 2024 | - | 2,905,664 | 2,905,664 |
| Amortization | - | (238,830) | (238,830) |
| Disposals | - | (2,666,835) | (2,666,835) |
| Balance September 30, 2025 | - | - | - |
Following the cessation of control in Cybeats Technologies Corp., on November 29, 2024, the Intellectual Property of Cybeats held by Scryb was treated as a disposal and no longer reported with Scryb's consolidated financials (see note 6).
11. LEASE LIABILITY
The Company entered a 24-month lease agreement of a new office space on October 31, 2024. During the year ended, September 30, 2025, the lease payments were $14,180 for October 2024, and $8,046 per month onward.
| Office & laboratory lease | Total | ||
|---|---|---|---|
| Balance, September 30, 2023 | $ | 154,277 | $154,277 |
| Interest expense | 12,732 | 12,732 | |
| Lease payments | (167,009) | (167,009) | |
| Balance, September 30, 2024 | $ | - | - |
| Right of use lease obligation | 163,433 | 163,433 | |
| Interest expense | 22,136 | 22,136 | |
| Lease payments | (88,511) | (88,511) | |
| Balance, September 30, 2025 | $ | 97,058 | $97,058 |
The accompanying notes are an integral part of these consolidated financial statements.
Page 27
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
The Company has recorded these leases as right-of-use assets (note 10) and lease liability in the statement of financial position as at September 30, 2025. At the commencement date of the lease, the lease liability was measured at the present value of the lease payments that were not paid at that date. The lease payments are discounted using an interest rate of 18%, which is the Company's incremental borrowing rate.
| Maturity Analysis – Contractual Undiscounted Cash Flows | ||
|---|---|---|
| As at | September 30, 2025 | September 30, 2024 |
| Less than one year | 97,058 | $ - |
| Greater than one year | - | - |
| Total undiscounted lease obligation | $ 97,058 | $ - |
12. RECLAMATION BONDS
The Company holds reclamation bonds with the Alberta Energy Regulator as required by section 1.100(2) of the Oil and Gas Conservation Regulations and Directive 006: License Liability Rating Program and License Transfer Process. The reclamation bonds are held for the purposes of the future well abandonment, related to the business of the Company prior to the reverse takeover transaction. The Company has performed all requested remediation work at the site and is currently engaged with the regulator for the return of these funds to the Company.
13. GOVERNMENT LOANS
Canadian Emergency Business Account ("CEBA") Loan:
The Company applied for and received a CEBA loan for amounts totaling $60,000. The CEBA loan was implemented by the Government of Canada to provide relief measures to small businesses adversely effected by COVID-19. Under the terms of the CEBA loan, proceeds received are interest free up until December 31, 2022. If a minimum of 66.7% of the principal balance is repaid on or prior to, December 31, 2022, the remaining 33.3% shall be forgiven. On January 12, 2022, the Government of Canada announced that the repayment deadline of December 31, 2022 for CEBA loans to qualify for the 33.3% forgiveness is being extended to December 31, 2023, for all eligible borrowers in good standing.
The Company has identified that they do not qualify for the CEBA loan and as a result, the Company has not recognized any grant revenue or interest benefit in the statement of loss and comprehensive loss in connection with this loan.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Regional Relief and Recovery Fund ("RRRF") Loan:
On November 27, 2020 the Company applied for and received a RRRF loan for amounts totaling $210,000. The RRRF loan was implemented by the Government of Canada to provide financial relief measures to small businesses in Southern Ontario adversely effected by COVID-19. Under the terms of the RRRF loan, proceeds received are interest free and repayable in sixty (60) equal monthly payments of $3,500, commencing on January 15, 2023 due December 15, 2027 based on the following expected cash flows:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| Less than one year | 161,000 | 73,500 |
| Between one and two years | 42,000 | 42,000 |
| Longer than two years | 7,000 | 94,500 |
| 210,000 | 210,000 |
In connection with the interest free term on the loan, the interest benefit has been valued at $15,464 (September 30, 2024 - $18,781) based on a fair market interest rate of 16.5% (September 30, 2024 - 16.5%). The continuity of the government loans as at September 30, 2025 is presented as follows:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| (Note 23) | ||
| Opening Balance | 238,607 | 219,826 |
| Accretion | 15,464 | 18,781 |
| Closing Balance | 254,071 | 238,607 |
| Current | 146,161 | 110,566 |
| Non-Current | 107,910 | 128,041 |
| Closing Balance | 254,071 | 238,607 |
The accompanying notes are an integral part of these consolidated financial statements.
Page 29
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
14. CAPITAL STOCK
(a) Common shares
Authorized
The authorized capital stock of the Company consists of an unlimited number of common shares and have no par value.
| Issued and Outstanding | Number | $ |
|---|---|---|
| Balance - October 1, 2023 | 25,728,267 | 42,932,587 |
| Shares issued from private placement (i) | 3,387,480 | 375,030 |
| Balance - September 30, 2024 | 29,115,747 | 43,307,617 |
| Shares issued from private placement (ii) | 17,679,255 | 1,118,656 |
| Shares issued from the settlement of debt (iii) | 233,400 | 46,680 |
| Balance - September 30, 2025 (iv) | 47,028,402 | 44,472,953 |
i. On May 31, 2024, the Company closed a non-brokered private placement financing for gross proceeds of $846,870 through the issuance of 3,387,480 Units (each "Unit") at a price of $0.25 per unit; certain eligible persons (the "Finders") were issued 115,120 units representing a cash commission in the amount of $22,780. Each Unit is comprised of: (i) one common share in the capital of the Company (each a "Common Share"); (ii) one Common Share purchase warrant (each, a "Warrant). Each whole Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.50 on or before 18 months from the date of issuance.
ii. On November 6, 2024, the Company closed a non-brokered private placement financing for gross proceeds of $742,400 through the issuance of 2,969,600 Units (each "Unit") at a price of $0.25 per unit. Each Unit is comprised of: (i) one common share in the capital of the Company (each a "Common Share"); (ii) one Common Share purchase warrant (each, a "Warrant). Each whole Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.50 on or before 18 months from the date of issuance.
On September 26, 2025, the Company completed its upsized non-brokered private placement offering, issuing 14,709,700 Units (each "Unit") at a price of $0.10 per Unit for gross proceeds of $1,470,970. Each Unit is comprised of: (i) one Common Share in the capital of the Company (each a "Common Share"); (ii) one half of one Common Share purchase warrant (each, a "Warrant"). Each whole Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.18 on or before 18 months from the date of issuance.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Andited - Expressed in Canadian dollars)
iii. On February 2, 2025, the Company settled $116,700 in outstanding debts through the issuance of 233,400 Shares in order to preserve the Company's cash for working capital. The Shares under the Debt Settlement were issued at a price of $0.50 per Share.
iv. On August 13, 2025, the Company completed the consolidation of its issued and outstanding common shares on the basis of one (1) new Common Share for every ten (10) old Common Shares. The post-consolidation Common Shares continue to trade on the CSE under the Company's existing name and trading symbol. The Common Shares presented represent the post-consolidated figures.
(b) Stock option plan and share based compensation
Scryb Inc.
The Company has a stock option plan under which it is authorized to grant options to directors, employees and consultants enabling them to acquire up to 20% of the issued and outstanding common shares of the Company. The board sets the vesting period on each options issuance. Under the plan, the exercise price of each option equals the market price, minimum price, or a discounted price of the Company's shares as calculated on the date of grant.
The following table summarizes activity within the Company's stock option plan during the period:
| Number of Options Outstanding | Black-Scholes Value | Weighted Average Exercise Price | |
|---|---|---|---|
| Balance - October 1, 2023 | 3,224,000 | 9,672,075 | $ 2.76 |
| Cancelled (i) | (150,500) | (334,104) | 2.73 |
| Balance - September 30, 2024 | 3,073,500 | 9,337,971 | $ 3.08 |
| Granted (ii) | 5,230,000 | 226,002 | 0.22 |
| Expired (iii) | (911,000) | (1,358,323) | 2.04 |
| Cancelled (iv) | (1,748,500) | (5,809,680) | 3.61 |
| Balance - September 30, 2025 (v) | 5,644,000 | 2,395,971 | $ 0.43 |
i. During the year ended September 30, 2024, 150,500 options were cancelled with an average exercise price of $2.73.
ii. On February 19, 2025, the Company announced that it has granted an aggregate of 1,360,000 options to purchase common shares of the Company with an estimated fair value of $144,908 exercisable at a price of $0.50 per common share, vesting in 12 months from the date of issuance and expiring on February 2, 2028, to certain directors, employees, officers, and consultants of the Company.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
On September 30, 2025, the Company announced that it has granted an aggregate of 3,870,000 options to purchase common shares of the Company with an estimated fair value of $413,333 exercisable at a price of $0.12 per common share, vesting within 18 months from the date of issuance and expiring on September 26, 2030, to certain directors, employees, officers, and consultants of the Company.
iii. During the year ended September 30, 2025, 911,000 options had expired with an average exercise price of $2.04.
iv. The Company had cancelled 1,748,500 options held by former directors, employees, officers and consultants.
v. On August 13, 2025, the Company completed the consolidation of its issued and outstanding common shares. As a result, the Options presented also represent the post-consolidated figures.
The following common share purchase options are outstanding as at September 30, 2025:
| Date of Grant | Number Of Options Outstanding | Exercise Price | Average Remaining life (years) | Expiry Date | Number Of Options Exercisable |
|---|---|---|---|---|---|
| December 18, 2020 | 160,000 | 2.250 | 0.22 | December 18, 2025 | 160,000 |
| January 8, 2021 | 35,000 | 3.050 | 0.27 | January 8, 2026 | 35,000 |
| January 22, 2021 | 100,000 | 3.350 | 0.31 | January 22, 2026 | 100,000 |
| March 3, 2021 | 15,000 | 7.400 | 0.42 | March 3, 2026 | 15,000 |
| April 26, 2021 | 19,000 | 5.000 | 0.57 | April 26, 2026 | 19,000 |
| July 22, 2021 | 35,000 | 2.500 | 0.81 | July 22, 2026 | 35,000 |
| May 17, 2022 | 125,000 | 2.000 | 1.63 | May 17, 2027 | 125,000 |
| February 19, 2025 | 1,285,000 | 0.500 | 2.39 | February 19, 2028 | 835,000 |
| September 30, 2025 | 3,870,000 | 0.120 | 4.99 | September 26, 2030 | 960,000 |
| 5,644,000 | $ 0.434 | 4.02 | 2,284,000 |
Share based compensation during the year ended September 30, 2025, totaled $226,002 (September 30, 2024 – Nil).
The fair value of options granted during the year ended September 30, 2025, was estimated at the date of grant using a Black Scholes Option Pricing Model with the following assumptions.
| | Sep 30
2025 | Feb 19
2025 |
| --- | --- | --- |
| Exercise price | 0.12 | 0.50 |
| Risk-free interest rate | 2.74% | 2.79% |
| Expected life of options | 5 years | 3 years |
| Annualized volatility | 159% | 157% |
| Dividend rate | Nil | Nil |
| Forfeiture rate | 0% | 0% |
The accompanying notes are an integral part of these consolidated financial statements.
Page 32
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Cybeats Technologies Corp.
The following covers stock option activities from the period October 1, 2023; the beginning of the prior reporting period, to November 29, 2024 the date of cessation of control of Cybeats.
Cybeats Corp. has a stock option plan under which it is authorized to grant options to directors, employees and consultants enabling them to acquire up to 20% of the issued and outstanding common shares of Cybeats Corp. Under the plan, the exercise price of each option equals the market price, minimum price, or a discounted price of the Company's shares as calculated on the date of grant.
On May 16, 2023, the Cybeats Technologies Corp. announced that it has granted an aggregate of 440,000 options to purchase common shares of Cybeats Technologies Corp., with an estimated fair value of $384,580 exercisable at a price of $1.35 per common share, expiring on May 16, 2028, 280,000 vesting immediately and 160,000 vesting at various times between December 31, 2023 and December 31, 2024, to certain directors, employees, officers and consultants of Cybeats Technologies Corp.
Share based Compensation expense related to these options issued in fiscal 2023 for the year ended September 30, 2024 is $501,026 (2023 - $5,320,233).
On March 6, 2024, the Cybeats Technologies Corp announced that it has granted an aggregate of 300,000 options to purchase common shares of the Company with an estimated fair value of $36,790 exercisable at a price of $0.16 per common share, vesting immediately and expiring on March 6, 2029, to certain directors, employees, officers and consultants of the Cybeats Technologies Corp.
On March 11, 2024, the Cybeats Technologies Corp announced that it has granted an aggregate of 4,610,000 options to purchase common shares of the Company with an estimated fair value of $708,360 exercisable at a price of $0.16 per common share, vesting immediately and expiring on March 11, 2029, to certain directors, employees, officers and consultants of the Cybeats Technologies Corp.
On May 28, 2024, the Cybeats Technologies Corp announced that it has granted an aggregate of 910,000 options to purchase common shares of the Company with an estimated fair value of $115,615 exercisable at a price of $0.22 per common share, vesting immediately and expiring on May 28, 2029, to certain directors, employees, officers and consultants of the Cybeats Technologies Corp.
On September 19, 2024, the Cybeats Technologies Corp announced that it has granted an aggregate of 1,000,000 options to purchase common shares of the Company with an estimated fair value of $121,535 exercisable at a price of $0.18 per common share, vesting immediately and expiring on September, 2029, to certain directors, employees, officers and consultants of the Cybeats Technologies Corp.
Page 33
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Share based Compensation expense related to these options issued in fiscal 2024 for the year ended September 30, 2024 is $982,300 (2023 - $nil).
The fair value of options granted during the twelve months ended September 30, 2024, was estimated at the date of grant using a Black Scholes Option Pricing Model with the following assumptions.
| Sep 19 | May 28 | ||
|---|---|---|---|
| 2024 | 2024 | ||
| Exercise Price | 0.18 | 0.22 | |
| Risk-free interest rate | 2.70% | 3.72% | |
| Expected life of Options | 5.00 | 5.00 | |
| Annualized volatility | 83.98% | 68.39% | |
| Dividend rate | Nil | Nil | |
| Forfeiture rate | 0% | 0% | |
| Mar 11 | Mar 06 | May 16 | |
| 2024 | 2024 | 2023 | |
| Exercise Price | 0.16 | 0.16 | 1.31 |
| Risk-free interest rate | 3.32% | 3.35% | 3.33% |
| Expected life of Options | 5.00 | 5.00 | 5.00 |
| Annualized volatility | 93.51% | 89.45% | 82.43% |
| Dividend rate | Nil | Nil | Nil |
| Forfeiture rate | 0% | 0% | 0% |
Following the cessation of control in Cybeats Technologies Corp., on November 29, 2024, the options issued by Cybeats are no longer reported with Scryb's consolidated financials (see note 6).
(c) Warrants
The following table summarizes warrants that have been issued, exercised or have expired during the year ended September 30, 2025:
| Number of Warrants Outstanding | Black-Scholes Value | Weighted Average Exercise Price | |
|---|---|---|---|
| Balance - October 1, 2023 | 2,369,545 | $ 3,403,407 | $ 1.60 |
| Granted (i) | 3,502,600 | 449,060 | 0.50 |
| Expired (ii) | (1,687,045) | (976,005) | 1.68 |
| Balance - September 30, 2024 | 4,185,100 | $ 2,876,463 | $ 0.66 |
| Granted (iii) | 10,794,150 | 1,032,960 | 0.27 |
| Expired (iv) | (682,500) | (216,329) | 1.50 |
| Balance - September 30, 2025 (v) | 14,296,750 | $ 3,693,094 | $ 0.32 |
i. On May 31, 2024, the Company granted an aggregate of 3,502,600 warrants to purchase common shares of the Company with an estimated fair value of $449,060 exercisable at a price of $0.50 per common share, expiring on November 30, 2025.
The accompanying notes are an integral part of these consolidated financial statements.
Page 34
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
ii. During the year ended September 30, 2024, a total of 1,687,045 warrants had expired.
iii. On November 6, 2024, the Company granted an aggregate of 2,969,600 warrants to purchase common shares of the Company with an estimated fair value of $254,847 exercisable at a price of $0.50 per common share, expiring on May 6, 2026.
On September 26, 2025, the Company granted an aggregate of 7,824,550 warrants to purchase common shares of the Company with an estimated fair value of $778,113 exercisable at a price of $0.18 per common share, expiring on March 26, 2027.
iv. On November 10, 2024, a total of 682,500 warrants with a grant date of May 10, 2023 had expired.
v. On August 13, 2025, the Company completed the consolidation of its issued and outstanding common shares. As a result, the Warrants presented also represent the post-consolidated figures.
As at September 30, 2025, there were 14,296,750 (September 30, 2024 – 4,185,100) warrants outstanding with an average strike price of $0.32.
The following warrants are outstanding as at September 30, 2025:
| Number of Warrants Outstanding | Exercise Price | Fair Value | Expiry Date | |
|---|---|---|---|---|
| May 31, 2024 | 3,502,600 | 0.50 | 449,060 | November 30, 2025 |
| November 6, 2024 | 2,969,600 | 0.50 | 254,847 | May 6, 2026 |
| September 26, 2025 | 7,824,550 | 0.18 | 778,113 | March 26, 2027 |
| 14,296,750 | 1,482,020 |
The fair value of warrants granted during each period were estimated at the date of grant using a Black Scholes Pricing Model with the following assumptions:
| Investor Warrants | September 2025 | November 2024 | May 2024 |
|---|---|---|---|
| Exercise price | 0.18 | 0.50 | 0.50 |
| Risk-free interest rate | 2.51% | 3.17% | 3.67% |
| Time to maturity | 1.5 years | 1.5 years | 1.5 years |
| Annualized volatility | 239% | 185% | 148% |
| Dividend yield | Nil | Nil | Nil |
The accompanying notes are an integral part of these consolidated financial statements.
Page 35
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
15. CONVERTIBLE DEBENTURE
Scryb Inc.
On January 31, 2025, the Company completed a non-brokered private placement offering of secured convertible debentures for gross proceeds of $1,175,300. The Debenture bears interest at an annual rate of 12% and the outstanding principal and interest can be converted into common shares of the Company at a conversion price of $0.05 per Share. The Debentures will mature two years from the date of issuance, except for the debenture issued to an affiliate of Plaza Capital (the "Lead Investor"), the lead investor in the Offering, which will mature one year from the date of issuance. The Company paid to the Lead Investor an origination fee of $9,900 for the Series One Debenture subscribed for by the Lead Investor. Other financing costs for the convertible debentures included $41,118 for various legal and filing fees.
The Company used the residual value method to allocate the principal amount of the convertible debentures between the liability and equity components. The Company value the debt component of the convertible debentures by calculating the present value of the principal and interest payments, discounted at a rate of 18%, being management's best estimate of the rate that a non-convertible debenture with similar terms would bear. The equity component of the convertible debentures comprises the value of the Conversion Option, being the difference between the face value of the Debentures and the present value of the debentures upon issuance, which includes a derivative liability portion of $81,667.
The following table disclosed the components associated with the convertible debenture transaction at initial recognition:
| January 31, 2025 | |
|---|---|
| Proceeds from the convertible debenture | 1,175,300 |
| Less: derivative liability component | (81,667) |
| Less: equity component | (89,521) |
| Loan Liability Component | 1,004,112 |
The change in the convertible debenture loan liability are as follows:
| Value at initial recognition | 1,004,112 |
|---|---|
| Issuance cost | (47,133) |
| Interest | 90,424 |
| Accretion | 79,334 |
| Payments | (52,650) |
| Conversion | (56,507) |
| Balance September 30, 2025 | 1,017,580 |
| Less current portion | (110,578) |
| Long-term portion | 907,002 |
The accompanying notes are an integral part of these consolidated financial statements.
Page 36
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
The Lead Investor had the option to convert $80,000 of their debenture into Glow LifeTech Shares, which were held by the Company at a conversion price of $0.04 per common share of Glow. Additionally, remaining $130,000 of the convertible debenture can be converted into common shares of Glow LifeTech Corp. held by the Group at an exchange rate of $0.06. The accounting for this conversion option includes recognizing the derivative liabilities upon issuance of the debenture, with the remainder going towards the present value of the debt component along with a $0 value assigned to the equity of the Company.
On May 2, 2025, a debenture holder exercised $40,000 of their convertible debentures into common shares of Glow LifeTech at a deemed price of $0.04. This conversion comprised of $400 in interest accrued along with $39,600 in the principal of the debenture. The Company completed the debenture conversion by transferring 1,000,000 shares of its investment in Glow LifeTech Ltd. to the debenture holder.
On August 13, 2025, a debenture holder exercised $40,000 of their convertible debentures into common shares of Glow LifeTech at a deemed price of $0.04. This conversion comprised of $591 in interest accrued along with $39,409 in the principal of the debenture. The Company completed the debenture conversion by transferring 1,000,000 shares of its investment in Glow LifeTech Ltd. to the debenture holder.
The principal repayments on the convertible debentures are expected as follows:
| General | Lead | |
|---|---|---|
| Less than one year | - | 130,991 |
| Between one and two years | 965,300 | - |
| 965,300 | 130,991 |
Subsequent to September 30, 2025, the Company paid out the remaining convertible debenture of $130,991 principal plus interest owing to the lead investor.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
16. INCOME TAXES
A reconciliation of current income taxes at statutory rates with the reported taxes is as follows:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| (Note 23) | ||
| Net Income (loss) before income taxes | 5,631,431 | (14,773,033) |
| Combined federal and provincial tax rate | 26.50% | 26.50% |
| Expected income tax recovery at statutory rates | 1,492,329 | (3,914,854) |
| Share based compensation and other non-deductible expenses | 158,253 | 828,063 |
| Other | - | - |
| Change in unrecognized deferred tax assets | (1,650,582) | 3,086,791 |
| Provision for income tax | - | - |
Significant components of deductible and taxable temporary differences, unused tax losses and unused tax credits that have not been included on the statement of financial position are as follows:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| Exploration and evaluation assets | - | - |
| Share issuance costs | 27,168 | 366,967 |
| Capital assets | 920,049 | 958,477 |
| Investments and intangible assets | 47,105 | 3,405,848 |
| Non-capital losses | 42,658,699 | 49,209,905 |
| Total temporary differences | 43,653,021 | 53,941,197 |
Deferred taxes are provided as a result of temporary differences that arise due to the differences between the income tax values and the carrying amount of assets and liabilities. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the group can utilize the benefits there from. Non-capital loss carry forwards expire as rated in the table below. The remaining deductible temporary differences may be carried forward indefinitely.
The gain on deconsolidation of Cybeats Technologies Corp. that was recorded is not a taxable event.
As at year-ended September 30, 2025, the Company has non-capital losses of $42,658,699 (2024 - $49,209,905) that can be used to reduce future taxable income. These losses expire as follows:
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
| $ | |
|---|---|
| 2037 | 7,300,890 |
| 2038 | 4,114,186 |
| 2039 | 7,918,607 |
| 2040 | 4,714,585 |
| 2041 | 5,705,938 |
| 2042 | 3,798,535 |
| 2043 | 3,427,583 |
| 2044 | 3,236,383 |
| 2045 | 2,441,992 |
| 42,658,699 |
17. RELATED PARTY TRANSACTIONS
Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company and Cybeats Technologies Corp up to November 29, 2024. The Company has determined that key management personnel consist of executive and non-executive members of the Companies' Board of Directors, Corporate Officers and Vice Presidents.
The Company's associates including Fionet Rapid Response Group, Raidian Inc., and Cybeats Technologies Inc. are also considered related parties. See note 6 regarding activities with associates.
During the year ended September 30, 2025, $1,230,493 (period ended September 30, 2024 - $3,581,670) was paid to key management and companies controlled by or related to key management of Scryb and Cybeats (up to the date of loss of control). $250,000 in prepaid expenses were paid to related parties (2024 – nil).
January 31, 2025, Scryb has also assumed the obligations of Cybeats to a related party in the amount of $614,116. In tandem with the assumption of debt, Cybeats issued a promissory note to Scryb for the amount of the Assumed Debt. The aggregate outstanding amounts owed by Cybeats to Scryb are included in a secured non-convertible debenture at interest rate of 10% per annum, maturing on October 14, 2025. The above loan arrangements between Scryb and Cybeats are secured by way of a general security agreement. See note 6 regarding the GSA.
Remuneration of key management of the Company was as follows:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| Share based compensation | 32,902 | 1,483,326 |
| Consulting and management fees | 1,101,135 | 2,098,344 |
| Interest expense | 96,456 | - |
| $ 1,230,493 | $ 3,581,670 |
The accompanying notes are an integral part of these consolidated financial statements.
Page 39
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
As of September 30, 2025, $222,025 was included in accrued liabilities and accounts payable to related parties (2024 – nil). Amounts due to related parties as of September 30, 2025 totaled $342,332 (2024 - $1,315,964), bearing interest at a rate of 18% per annum, due December 1, 2025. Subsequent to September 30, 2025, the Company paid out the remaining balance due to related parties in full.
18. LOAN RECEIVABLE
The Company held a demand loan receivable from Fio Corp., a separate legal entity which had partnered with Scryb Inc., to form the Fionet Rapid Response Group ("FRR") Joint Venture. This loan was the result of advances to Fio Corp., was non-interest bearing and had no fixed terms of repayment.
| | September 30
2025 | September 30
2024 |
| --- | --- | --- |
| Demand loan receivable from Fio Corp | - | 210,284 |
| Total Loan Receivable | - | 210,284 |
This demand loan receivable from Fio Corp. was fully repaid in the year ended September 30, 2025 as part of the sale of the Fionet Rapid Response Group ("FRR") Joint Venture (see note 6).
19. FINANCIAL RISK FACTORS
The Company manages its exposure to a number of different financial risks arising from its operations as well as its use of financial instruments including market risks, credit risk and liquidity risk through its risk management strategy. The objective of the strategy is to support the delivery of the Company's financial targets while protecting its future financial security and flexibility.
Financial risks are primarily managed and monitored through operating and financing activities and, if required. The financial risks are evaluated regularly with due consideration to changes in the key economic indicators and up-to-date market information.
The Company's financial instruments primarily consist of cash, other receivables, investment in Glow LifeTech Corp., loan receivable, reclamation bonds, due from Glow LifeTech Corp., due from related parties, accounts payable and accrued liabilities, due to related parties, government loans, short term debt, and convertible debentures. The fair value of the Company's other receivables, loan receivable, due from Glow LifeTech Corp., due from related parties, accounts payable and accrued liabilities, due to related parties, government loans, and short-term debt approximate their carrying value, due to their short-term maturities or ability of prompt liquidation.
The Company's cash and Investment in Glow LifeTech Corp. is recorded at fair value, under the fair value hierarchy, based on level one quoted prices in active markets for identical assets of
The accompanying notes are an integral part of these consolidated financial statements.
Page 40
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
liabilities. The Company's other receivables, reclamation bonds, accounts payable and accrued liabilities, government loans are measured at amortized cost.
The Company is exposed in varying degrees to a variety of financial instrument related risks.
Market Risk
Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of the business. These market risks are evaluated by monitoring changes in key economic indicators and market information on an ongoing basis.
a) Interest Rate Risk
The Company has cash balances and is not at a significant risk to fluctuating interest rates. The Company's current policy is to invest excess cash in investment grade short term deposit certificates issued by its banking institutions. The Company periodically monitors the investments it makes and is satisfied with the credit ratings of its banks. The Company monitors the credit worthiness of the debtor and is satisfied with the debtor's ability to repay the amount owing.
b) Foreign Currency Risk
As at September 30, 2025, the Company's expenditures are predominantly in Canadian dollars, and any future equity raised is expected to be predominantly in Canadian dollars and therefore is not at a significant risk to fluctuating exchange risks.
Liquidity Risk
Liquidity risk encompasses the risk that a company cannot meet its financial obligations in full. The Company's main source of liquidity is derived from its common stock issuances. These funds are primarily used to finance working capital, operating expenses, capital expenditures, and acquisitions.
The Company manages its liquidity risk by regularly monitoring its cash flows from operating activities and holding adequate amounts of cash and cash equivalents.
As at September 30, 2025, the Company held cash of $794,573 (September 30, 2024 - $110,001) to settle current liabilities of $1,555,844 (September 30, 2024 - $9,269,098).
Credit Risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Financial instruments that potentially subject the Company to credit risk consist of cash. The Company has reduced its credit risk by investing its cash with Canadian chartered banks.
The accompanying notes are an integral part of these consolidated financial statements.
Page 41
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
20. CAPITAL MANAGEMENT
As at September 30, 2025, the Company’s capital stock was $44,472,953 (September 30, 2024 - $43,307,617). While the Company will need to raise additional funds to support the commercial and development activities, the Company is in a unique position to finance growth through its various holdings and amidst superior market conditions than previous years.
There were extensive changes to the Company's capital management during the period, including cost-cutting and conservative approaches to capital uses and requirements.
The Company's objectives when managing capital are:
a) To safeguard the Company’s financial capacity and liquidity;
b) To maintain a flexible capital structure which optimizes the cost of capital at an acceptable risk;
c) To enable the Company to maximize growth by meeting its capital expenditure budget, to expand its budget to accelerate projects, and to take advantage of acquisition opportunities.
The Company regularly monitors and reviews the amount of capital in proportion to risk and future opportunities. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
21. BASIC AND DILUTED LOSS PER SHARE
Basic loss per share has been calculated by dividing the net loss attributable to shareholders of Scryb Inc. per the financial statements by the weighted average number of shares outstanding during the year. The fully diluted loss per share would be calculated using a common share balance increased by the number of common shares that could be issued on the exercise of outstanding warrants and options of the Company. As the Company is in a loss position for the years ended September 30, 2025 and 2024, this would be antidilutive.
22. SUBSEQUENT EVENTS
Sale of CYBT Shares
On December 18, 2025, the Company successfully sold 10,000,000 common shares of Cybeats at a price of $0.12 per share in the open market. This resulted in Scryb holding 64,857,950 (31.66%) of the issued and outstanding common shares of Cybeats on an undiluted and partially diluted basis, respectively.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Glow LifeTech Corp. Debt Settlement
On October 16th, 2025, the Company announced a debt settlement with Glow LifeTech Corp. Glow issued 714,286 of common shares at a deemed price of $0.07 per share to satisfy the $50,000 of indebtedness to the Company. As a result of this settlement, the Company holds 6,714,286 common shares of Glow or 3.50% of the issued and outstanding common shares with no amounts owing from Glow.
Cybeats Technologies Corp. Debt Settlement
On December 30, 2025, the Company announced a debt settlement whereby it received 10,000,000 common shares in Cybeats at a deemed price of $0.12 per share. The debt settlement resulted in a full and final settlement of all debt owed by Cybeats to Scryb, including principal, interest, expenses, rent, or any other amounts. After the completion of this transaction, Scryb holds 74,857,950 (36.54%) of the issued and outstanding common shares of Cybeats on an undiluted and partially diluted basis, respectively.
23. RESTATEMENT OF COMPARATIVE FIGURES
The Company has made the following reclassifications and adjustments on the prior year financial statements:
Certain expenses have been reclassified to conform with the current presentation including combining line items which management believes are similar in nature to better reflect the relevant business operations.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
| Scryb Inc. Consolidated Annual Statement of Financial Position Adjustments | ||||
|---|---|---|---|---|
| As of period ended September 30, 2024 | Original | Adjustment | Adjusted | |
| Assets | ||||
| Current Assets | ||||
| Cash | $ 110,001 | $ - | $ 110,001 | |
| Other receivables (note 5) | 1,006,495 | A 63,771 | 1,070,266 | |
| Investment in Glow LifeTech Corp. (note 7) | 247,500 | - | 247,500 | |
| Loan receivable (note 18) | 210,284 | - | 210,284 | |
| Prepaid expenses | 815,547 | B (46,520) | 794,027 | |
| 2,389,827 | C 25,000 | 2,432,078 | ||
| Non-Current Assets | ||||
| Due from Glow LifeTech Corp. (note 7) | 1,068,035 | - | 1,068,035 | |
| Property, plant and equipment (note 8) | 7,367 | - | 7,367 | |
| Right-of-use asset (note 9) | 25,573 | - | 25,573 | |
| Reclamation bonds (note 12) | 79,068 | - | 79,068 | |
| Investment in associates (note 6) | 2,207,139 | D 15,256 | 2,222,395 | |
| Intangible assets (notes 10) | 2,905,664 | - | 2,905,664 | |
| Total assets | 8,682,673 | 8,740,180 | ||
| Current Liabilities | ||||
| Current Liabilities | ||||
| Accounts payable and accrued liabilities | 4,627,568 | E 269,980 | ||
| F 67,091 | ||||
| G 235,514 | ||||
| H 115,912 | ||||
| I 35,200 | ||||
| J (70,885) | ||||
| K 32,000 | ||||
| L 45,878 | ||||
| M 90,771 | 5,449,028 | |||
| Current portion of lease liability (note 11) | - | - | - | |
| Due to related parties | 1,315,964 | - | 1,315,964 | |
| Current portion of government loans (note 13) | 95,614 | N 9,372 | 110,566 | |
| O 5,580 | 110,566 | |||
| Unearned revenue | 2,158,540 | - | 2,158,540 | |
| Short term debt | 235,000 | - | 235,000 | |
| 8,432,686 | 9,269,098 | |||
| Non-Current Liabilities | ||||
| Government loans (note 13) | 133,695 | O (5,580) | 128,115 | |
| Convertible debentures (note 15) | 1,977,440 | - | 1,977,440 | |
| Total Liabilities | 10,543,821 | 11,374,653 | ||
| Shareholders' Equity | ||||
| Capital stock (note 14 (a)) | 43,307,617 | - | 43,307,617 | |
| Contributed surplus (note 14 (b)) | 21,577,704 | - | 21,577,704 | |
| Warrant reserve (note 14 (c)) | 2,876,463 | - | 2,876,463 | |
| Deficit | (66,876,826) | P (442,379) | (67,319,206) | |
| Total Equity to Shareholders of Scryb Inc. | 884,959 | (442,379) | 442,578 | |
| Non Controlling Interest | (2,746,106) | Q (330,946) | (3,077,052) | |
| Total Shareholders Equity | (1,861,148) | (773,325) | (2,634,473) | |
| Total Liabilities and Shareholders Equity | $ 8,682,673 | $ (773,325) | $ 8,740,180 |
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Adjustments
A - Reclass of HST receivables incorrectly netted with accounts payable.
B - Cybeats adjustment to write-off prepaid expenses which were settled in the reporting period per settlement agreement.
C - Cybeats adjustment to accrue one-time fees for future services to be incurred based on agreements signed in the reporting period.
D - To adjust value of Investment in FRR based on recalculation.
E - Cybeats adjustment for agreement accrued over 12 months for services completed within the reporting period.
F - To record adjusting entries recorded by Cybeats during the year end audit; December 31, 2024, while the effect for Scryb was September 30, 2024 resulting in an opening error.
G - Cybeats adjustment to accrue one-time fees for future services to be incurred based on agreements signed in the reporting period.
H - Cybeats adjustment to accrue expenses relating to September 30, 2024 and entered after the reporting period.
I - Cybeats reversal of write-off of an accrual which was entered before current reporting period, which should be effective October 2024.
J - Cybeats adjustment to accrued liabilities to reconciled balances owing.
K - To record accrual for services per 2024 consulting agreement which was not included in the 2024 reporting period.
L - To record reversal of debt writeoff due to timing issues related to settlement agreements.
M - To accrue expenses related to September 2024 recorded after period end.
N - To reinstate portion of RRRF loan previously written off.
O - Reclass of current portion of RRRF to long term portion of reinstated loan.
P - Combined effect of profit and loss Scryb and Cybeats adjustments on deficit.
Q - Effect of Scryb's portion of Cybeats adjustments on NCI.
The accompanying notes are an integral part of these consolidated financial statements.
Page 45
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Scryb Inc. Consolidated Annual Statement of
Loss and Comprehensive Loss Adjustments
| For the twelve months ended September 30, 2024 | Original | Adjustment | Reclass | Adjusted |
|---|---|---|---|---|
| Revenues | ||||
| Product sales | $ 1,785,386 | $ - | $ - | $ 1,785,386 |
| Royalties and management fees | 16,563 | - r.1 | (16,563) | - |
| Other revenues | 40,630 | - r.1 | 16,563 | 57,193 |
| 1,842,579 | - | - | 1,842,579 | |
| Expenses | ||||
| Accretion | 124,013 | - r.2 | (124,013) | - |
| Advertising and promotion | 2,079,126 | - r.3 | (2,079,126) | - |
| Amortization expense | 1,464,822 | - r.4 | (1,464,822) | - |
| Consulting and management fees | 853,795 | A | 11,250 | |
| B | 32,000 | |||
| C | 18,000 | (915,045) | ||
| Depreciation | 204,051 | - r.6 | (204,051) | - |
| Foreign currency loss | 24,845 | - | - | 24,845 |
| Insurance expenses | 77,299 | - | - | 77,299 |
| Interest expenses | 416,627 | - r.7 | (416,627) | - |
| Office, general and administrative | 174,910 | - r.8 | (174,910) | - |
| Product research and development costs | 1,284,087 | D | 14,427 | 1,298,514 |
| Professional fees | 241,299 | E | 50,000 | |
| F | 6,103 | |||
| G | 10,525 | (307,927) | ||
| Salaries and wages | 6,230,123 | H | 269,980 | |
| I | 26,086 | |||
| J | 41,005 | |||
| K | 125,000 | |||
| L | 45,000 | |||
| M | 40,514 | |||
| N | 9,250 | |||
| O | 40,985 | |||
| P | 35,200 | |||
| Q | (70,885) | 6,792,257 | ||
| Share-based compensation | 1,483,326 | - | - | 1,483,326 |
| Shareholder communications and marketing | 32,689 | - r.10 | (32,689) | - |
| Transfer agent and filing fees | 100,855 | - r.11 | (100,855) | - |
| Professional & consulting fees | - | - r.5 | 915,045 | |
| - r.9 | 307,927 | 1,222,972 | ||
| Amortization and depreciation | - | - r.4 | 1,464,822 | |
| - r.6 | 204,051 | 1,668,873 | ||
| Interest and accretion | - | R | 9,372 | 124,013 |
| - r.7 | 416,627 | 550,012 | ||
| Investor relations, advertising, and marketing | - | S | 1,250 | 2,079,126 |
| - r.8 | 174,910 | |||
| - r.12 | (142,222) | 2,113,064 | ||
| General, administrative, and other expenses | - | - r.10 | 32,689 | |
| - r.11 | 100,855 | |||
| - r.12 | 142,222 | 275,766 | ||
| Net Income (Loss) from Operations | (12,949,288) | (715,061) | - | (13,664,349) |
| Other (Income) Expense | ||||
| Loss (gain) in investment in associate | 217,762 | - r.14 | 70,988 | |
| - r.13 | (288,750) | - | ||
| Debt forgiveness | (163,085) | T | 46,520 | (116,565) |
| Non-recurring settlement fees | 437,000 | U | 27,000 | 464,000 |
| Write off receivables | 558,743 | - | - | 558,743 |
| Unrealized loss on investment in Glow LifeTech Corp. | - | - r.13 | 288,750 | 288,750 |
| Net Income (Loss) before Discontinued Operations | $(13,999,708) | $(788,581) | $(70,988) | $(14,859,276) |
| Income (Loss) from Discontinued Operations | ||||
| Proportionate share of (gain) loss in FRR prior to sale | - | V | (15,256) | (86,244) |
| Net Income (Loss) and Other Comprehensive Income (Loss) | $(13,999,708) | $(773,325) | $ - | $(14,773,033) |
| Net Income (Loss) Attributable to Non-Controlling Interest | $(4,207,955) | $(330,946) | $ - | $(4,538,901) |
| Net Income (Loss) Attributable to Scryb Inc. Shareholders | $(9,791,753) | $(442,379) | $ - | $(10,234,132) |
| Income (loss) per share | ||||
| Basic and diluted (note 21) | $(0.04) | $ 0.00 | $ - | $(0.38) |
| Weighted average number of common shares outstanding, basic and diluted | 268,605,208 | W | (241,744,687) | 26,860,521 |
The accompanying notes are an integral part of these consolidated financial statements.
Page 46
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Reclass:
r.1-14 Certain revenues and expenses have been reclassified to conform with the current presentation.
Adjustments:
A - Adjustment due to cut-off for services rendered from April to June 2024, removed expense from current period.
B - To record accrual for services per 2024 consulting agreement which was not included in the 2024 reporting period.
C - To record accrual based on settlement agreement for past services which was in the 2024 reporting period.
D - Cybeats adjustment due to cut-off for services rendered in the reporting period, originally booked in October 2024.
E - Cybeats adjustment to record accrual for services rendered prior to the reporting period.
F - Adjustment due to cut-off for services rendered originally booked in October 2024, pro-rated for the reporting period.
G - Adjustment due to cut-off for services rendered originally booked in October 2024, pro-rated for the reporting period.
H - Cybeats adjustment for agreement accrued over 12 months for services completed within the reporting period.
I, J - Cybeats adjusting entries recorded by Cybeats during the year end audit; December 31, 2024, while the effect for Scryb was September 30, 2024 resulting in an opening error.
K, L - Cybeats adjustments to accrue one-time fees for future services to be incurred based on agreements signed in the reporting period.
M - Cybeats recording accrual for executive services up to the reporting period.
N - Cybeats adjustment due to cut-off for services rendered originally booked in October 2024, pro-rated for the reporting period.
O - Cybeats adjustment for agreement accrued over 11 months for 9 months completed within the reporting period.
P - Cybeats write-off reversed which was an accrual which was entered before current reporting period, which should be effective October 2024.
Q - Cybeats adjustment for accrued liabilities to reconciled balances owing.
R - To record accretion on RRRF loan reinstated as of the reporting period.
S - Cybeats adjustment due to cut-off for services rendered originally booked in November 2024, pro-rated for the reporting period.
T - Cybeats adjustment to write-off prepaid expenses which were settled in the reporting period per settlement agreement.
U - Adjustment to write-off loan receivables which were settled in the reporting period per settlement agreement.
V - To adjust value of Investment in FRR based on recalculation.
W - 10:1 share consolidation effective August 13, 2025; all weighted average shares outstanding adjusted to reflect.
The accompanying notes are an integral part of these consolidated financial statements.
Page 47
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Scryb Inc. Consolidated Annual Statement of Changes in Shareholders' Equity Adjustments
| Capital Stock | Warrant Reserve | Contributed Surplus | Deficit | Total Equity to Shareholders of Scryb Inc. | Non-controlling interests | Total Equity | ||
|---|---|---|---|---|---|---|---|---|
| Original - September 30, 2023 | 25,728,267 | $ 42,932,587 | $ 3,403,407 | $ 20,601,699 | $ (59,740,367) | $ 7,197,326 | $ (329,225) | $ 6,868,102 |
| Adjustments | ||||||||
| A | (35,540) | (35,540) | - | (35,540) | ||||
| B | (48,985) | (48,985) | - | (48,985) | ||||
| C | (73,015) | (73,015) | - | (73,015) | ||||
| Adjusted - September 30, 2023 | 25,728,267 | $ 42,932,587 | $ 3,403,407 | $ 20,601,699 | $ (59,897,907) | $ 7,039,786 | $ (329,225) | $ 6,710,561 |
| Original - September 30, 2024 | 291157472 | 43,307,617 | 2,876,463 | 21,577,704 | (66,876,826) | 884,958 | (2,746,106) | (1,861,148) |
| Adjustments | ||||||||
| D | (773,325) | (773,325) | - | (773,325) | ||||
| E | 330,946 | 330,946 | (330,946) | - | ||||
| F | (262,041,725) | - | - | - | - | - | ||
| Adjusted - September 30, 2024 | 29,115,747 | $ 43,307,617 | $ 2,876,463 | $ 21,577,704 | $ (67,319,205) | $ 442,579 | $ (3,077,052) | $ (2,634,473) |
Adjustments:
A - Adjustment to correct balance of RRRF loan as of September 30, 2023.
B - Adjustment to remove historical uncleared and unsupported transactions from the bank reconciliation.
C - Adjustment for revaluation of investment in FRR to recalculated amount as of September 30, 2023.
D - See adjustments A-W on the restatement of the Statement of Comprehensive Loss for changes to Net Loss for the Period.
E - Effect of Scryb's portion of Cybeats adjustments on NCI.
F - 10:1 share consolidation effective August 13, 2025; all common shares outstanding adjusted to reflect.
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Scryb Inc. Consolidated Annual Statement of Cash Flow Adjustments
| Twelve months ended September 30, 2024 | Original | Adjustments | Adjusted | |
|---|---|---|---|---|
| Cash flows from (used in) operating activities | ||||
| Net income (loss) for the period from continuing operations | $ (13,999,708) | A | $ (300,826) | $ (14,300,534) |
| Items not affecting cash from operations: | ||||
| Depreciation | 204,219 | - | 204,219 | |
| Amortization | 1,464,822 | B | (168) | 1,464,654 |
| Interest and accretion, net | 121,500 | - | 121,500 | |
| Unrealized loss on investment in Glow LifeTech Corp. | 288,750 | - | 288,750 | |
| Share-based compensation | 1,483,326 | - | 1,483,326 | |
| Interest on government loans accretion | 9,557 | C | (9,557) | - |
| Proportionate share of loss in FRR prior to sale | 108,014 | D | (108,014) | - |
| Changes in non-cash working capital items: | ||||
| Increase (decrease) in prepaid expenses | 1,045,875 | E | (48,250) | 997,625 |
| Increase (decrease) in accounts receivable | (495,020) | - | (495,020) | |
| Increase in accounts payable and accrued liabilities | 1,758,260 | F | 872,631 | 2,630,891 |
| Decrease in unearned service revenue | 1,566,935 | - | 1,566,935 | |
| Net cash used in operating activities from continuing operations | (6,443,472) | 405,818 | (6,037,654) | |
| Cash flows from (used in) operating activities from discontinuing operations | ||||
| Net income (loss) for the period from discontinuing operations | - | A | (472,499) | (472,499) |
| Items not affecting cash from operations: | ||||
| Write off of receivables | 558,753 | - | 558,753 | |
| Proportionate share of loss in FRR prior to sale | - | D | 92,758 | 92,758 |
| Net gain on sale of FRR | - | - | - | |
| Net cash used in operating activities from discontinued operations | 558,753 | (379,741) | 179,012 | |
| Cash flows used in investing activities | ||||
| Advances to Fionet Rapid Response Group | (6,672) | - | (6,672) | |
| Decrease (increase) in Investment in Glow LifeTech Corp. | - | G | (26,077) | (26,077) |
| Decrease in due from Glow LifeTech Corp. | 30,707 | - | 30,707 | |
| Net cash used in investing activities | 24,035 | (26,077) | (2,042) | |
| Cash flows from (used in) financing activities | ||||
| Units issued for cash, net of issuance costs | 824,091 | - | 824,091 | |
| (Decrease) in convertible debenture net of costs | 1,855,940 | - | 1,855,940 | |
| Decrease in short term debt | (381,933) | - | (381,933) | |
| Contributions/transfers from non-controlling interests | 3,120,582 | - | 3,120,582 | |
| Decrease in due to related parties | 670,964 | - | 670,964 | |
| Net increase (decrease) in lease liabilities | (270,798) | - | (270,798) | |
| Net cash from financing activities | 5,818,846 | - | 5,818,846 | |
| Decrease in cash for the period | (41,838) | - | (41,838) | |
| Cash - beginning of period | 151,839 | - | 151,839 | |
| Cash - end of period | $ 110,001 | - | $ 110,001 |
The accompanying notes are an integral part of these consolidated financial statements.
Scryb Inc.
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Audited - Expressed in Canadian dollars)
Adjustments:
A - See adjustments A-W on the restatement of the Statement of Comprehensive Loss for changes to Net Loss for the Period.
B - To record adjustment to amortization on portion of RRRF loan reinstated as in the reporting period.
C - To record acceration on portion of RRRF loan reinstated as in the reporting period.
D - To adjust value of Investment in FRR based on recalculation.
E - Cybeats adjustment for write-off of prepaid expenses which were settled in the reporting period per settlement agreement.
F - See adjustments K.1-5 on the restatement of the Statement of Financial Position for detailed breakdown of changes made to Accounts Payable and Accrued Liabilities.
G - To adjust value of Investment based on recalculation.
The accompanying notes are an integral part of these consolidated financial statements.
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