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STICKIT TECHNOLOGIES INC. Interim / Quarterly Report 2025
48399_rns_2025-11-28_75867a1b-44e4-441d-b942-963b9b396b71.pdf
Interim / Quarterly Report
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STICKIT TECHNOLOGIES INC.
Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025, and 2024
(Expressed in thousands of Canadian dollars except per share amounts) (Unaudited)
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited condensed interim financial statements of the Company for the nine months ended September 30, 2025 have been prepared by management and approved by the Audit Committee and Board of Directors of the Company. The Company's independent auditors have not performed a review of these interim financial statements in accordance with the standards established by the Canadian Institute of Chartered Professional Accountants for a review of interim financial statements by an entity's auditors.
STICKIT
StickIt Technologies Inc.
For the three and nine-month periods ended September 30, 2025, and 2024
(Unaudited)
Table of Contents
Interim Condensed Consolidated Statements of Financial Position ... 3
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss ... 4
Interim Condensed Consolidated Statements of Changes in Equity ... 5
Interim Condensed Consolidated Statements of Cash Flows ... 6
Notes to the Interim Condensed Consolidated Financial Statements ... 7
STICKIT
StickIt Technologies Inc.
Interim Condensed Consolidated Statements of Financial Position
As of September 30, 2025, and September 31, 2024
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
| Note | September 30, | September 30, 2024 | December 31, 2024 | |
|---|---|---|---|---|
| ASSETS | $ | $ | ||
| Current | ||||
| Cash and cash equivalents | 344 | 432 | 439 | |
| Other receivables | 15 | 231 | 156 | |
| Inventories | 38 | |||
| 359 | 701 | 595 | ||
| Non-current | ||||
| Fixed assets | - | 10 | 3 | |
| TOTAL ASSETS | 359 | 711 | 598 | |
| LIABILITIES | ||||
| Current | ||||
| Accounts payable | 5 | 713 | 514 | 544 |
| 713 | 514 | 544 | ||
| Non-current | ||||
| Deferred revenue | 47 | 52 | 45 | |
| TOTAL LIABILITIES | 760 | 566 | 589 | |
| EQUITY | ||||
| Share capital | 4 | 48,123 | 48,123 | 48,123 |
| Share premium | 4,047 | 4,047 | 4,047 | |
| Share-based payment reserve | 964 | 964 | 964 | |
| Foreign currency translation adjustments | 170 | 212 | 202 | |
| Accumulated deficit | (53,706) | (53,201) | (53,327) | |
| (402) | 145 | 9 | ||
| TOTAL LIABILITIES AND EQUITY | 359 | 711 | 598 |
/s/ "Eli Ben-Haroosh"
Eli Ben Harosh
Chief Executive Officer and Director
/s/ "Sophie Galper-Komet"
Sophie Galper Komet
Chief Financial Officer
November, 28, 2025
Date of approval
The accompanying notes are an integral part of and should be read in conjunction with these interim condensed consolidated financial statements.
STICKIT
StickIt Technologies Inc.
Interim Condensed Consolidated Statements of Financial Position
As of September 30, 2025, and September 31, 2024
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
| Note | For the 3 months ended September 30, 2025 | For the 9 months ended September 30, 2025 | For the 3 months ended September 30, 2024 | For the 9 months ended September 30, 2024 | |
|---|---|---|---|---|---|
| $ | $ | $ | $ | ||
| REVENUE | - | - | 11 | 23 | |
| COST OF REVENUE | - | 4 | 29 | 90 | |
| - | (4) | (18) | (67) | ||
| EXPENSES | |||||
| Research and development | - | 39 | - | - | |
| General and administrative | 95 | 334 | 50 | 242 | |
| 95 | 373 | 50 | 242 | ||
| NET OPERATING LOSS | (95) | (377) | (68) | (309) | |
| OTHER | |||||
| Finance expenses | (2) | (2) | (34) | 6 | |
| Finance income | - | - | - | - | |
| (2) | (2) | (34) | 6 | ||
| NET LOSS | (93) | (375) | (34) | (315) | |
| OTHER COMPREHENSIVE INCOME (LOSS) | |||||
| Amounts that will not be reclassified subsequently to profit or loss: | |||||
| Foreign currency translation adjustments | - | (34) | 1 | 8 | |
| TOTAL COMPREHENSIVE LOSS | (93) | (409) | (33) | (307) | |
| Basic and diluted loss per share | 6 | (0.001) | (0.003) | (0.002) | (0.003) |
The accompanying notes are an integral part of and should be read in conjunction with these interim condensed consolidated financial statements.
STICKIT
StickIt Technologies Inc.
Interim Condensed Consolidated Statements of Changes in Equity
For the nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
| Share capital | Share premium | Share-based payment reserve | Foreign currency translation adjustments | Accumulated deficit | Total | |
|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | |
| Balance, January 1, 2024 | 48,123 | 4,047 | 964 | 204 | (52,886) | 452 |
| Issuance of shares | - | - | - | - | - | - |
| Share-based payments | - | - | - | - | - | - |
| Loss for the period | - | - | - | - | (315) | (315) |
| Other comprehensive loss | - | - | - | 8 | - | 8 |
| Balance, June 30, 2024 | 48,123 | 4,047 | 964 | 212 | (53,201) | 145 |
| Balance, January 1, 2025 | 48,123 | 4,047 | 964 | 202 | (53,327) | 9 |
| Issuance of shares | - | - | - | - | - | - |
| Share-based payments | - | - | - | - | - | - |
| Loss for the period | - | - | - | - | (379) | (379) |
| Other comprehensive loss | - | - | - | (32) | - | (32) |
| Balance, September 30, 2025 | 48,123 | 4,047 | 964 | 170 | (53,706) | (402) |
The accompanying notes are an integral part of and should be read in conjunction with these interim condensed consolidated financial statements.
STICKIT
StickIt Technologies Inc.
Interim Condensed Consolidated Statements of Cash Flows
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
| For the 3 months ended September 30, 2025 | For the 9 months ended September 30, 2025 | For the 3 months ended September 30, 2024 | For the 9 months ended September 30, 2024 | |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| OPERATING ACTIVITIES | ||||
| Net loss | (93) | (375) | (34) | (315) |
| Items not affecting cash: | ||||
| Amortization | - | 2 | - | 7 |
| (93) | (373) | (34) | (308) | |
| Changes in non-cash working capital balances: | ||||
| Other receivables | 12 | 141 | (47) | (75) |
| Accounts payable | 94 | 169 | 1 | (1) |
| Inventory change | - | (38) | ||
| Deferred revenue | 1 | 2 | 17 | 19 |
| 107 | 312 | (29) | (95) | |
| Change in cash | 14 | (61) | (63) | (403) |
| Cash, beginning of period | 342 | 439 | 523 | 827 |
| Exchange rate differences in bank balances | (12) | (34) | (28) | 8 |
| Cash, end of period | 344 | 344 | 432 | 432 |
The accompanying notes are an integral part of and should be read in conjunction with these interim condensed consolidated financial statements.
StickIt Technologies Inc.
Notes to the Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
STICKIT
1. GENERAL INFORMATION
Stickit Limited, Israeli corporation number 516091360 ("SL"), was incorporated in 2019 as a private company in Israel and commenced business operations in October 2019. The registered office of the Company is Tel-Aviv, Hapeleh 7, Israel.
SL develops, markets and sells high-quality "Cannabis Sticks" designed to be inserted into any cigarette of any kind. The stick consists of a source extract of cannabis ingredients, not oil-derived, and burns as fast as a cigarette and saves the cumbersome need of rolling and allows the user to consume more percent of active ingredients than any other product.
On October 23, 2023, Stickit Technologies Inc. (formerly Aquazoom Hydropower Solutions Inc.) (hereafter the "Company") finalized its acquisition of SL and changed its name to Stickit Technologies Inc. immediately following the completion of the acquisition. On October 27, 2023, the Company's shares commenced trading on the Canadian Securities Exchange ("CSE") under the ticker symbol STKT.
2. BASIS OF PREPARATION
a) Going concern
These interim condensed consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue in operations for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. The realizable values may be substantially different from their carrying values, as shown in these interim condensed consolidated financial statements. These interim condensed consolidated financial statements do not affect adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. Such adjustments could be material.
The Company has not yet been able to generate positive cash flows from operations. Whether and when the Company can generate sufficient cash flows to pay for its expenditures and settle its obligations as they fall due after September 30, 2025, is uncertain.
To address the going concern risk, the Company continues to seek equity and other financing alternatives to support ongoing operations, monitor general and administrative expenses compared to budget, and optimize its operating processes.
b) Statement of compliance
The interim condensed consolidated financial statements of the Company have been prepared in accordance with International Accounting Standards ("IAS") 34 – Interim Financial Reporting, prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the IFRS Interpretations Committee ("IFRIC"). These interim condensed consolidated financial statements do not include all of the information required for full annual consolidated financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024. These interim condensed consolidated financial statements were approved by the Board of Directors on November 28, 2025.
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StickIt Technologies Inc.
Notes to the Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
STICKIT
2. BASIS OF PREPARATION (CONT'D)
c) Basis of consolidation
The interim condensed consolidated financial statements comprise the accounts of the Company and its controlled subsidiaries. The financial statements of subsidiaries are included in the interim condensed consolidated financial statements from the date that control commences until the date that control ceases. The interim condensed consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances.
Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has all the following:
- power over the investee.
- exposure, or rights, to variable returns from its involvement with the investee; and
- the ability to use its power over the investee to affect the amount of the investor's returns.
All transactions and balances between the Company and its subsidiaries are eliminated on consolidation, including unrealized gains and losses on transactions between companies.
The Company's material subsidiaries as at June 30, 2025 are as follows:
| Name of subsidiary | Country of incorporation | Ownership percentage | Functional currency |
|---|---|---|---|
| Stickit Labs SL | Spain | 100% | EUR |
| Stickit Limited | Israel | 100% | NIS |
d) Basis of presentation
The interim condensed consolidated financial statements are prepared on a going concern basis using the historical cost method, except for certain financial instruments that have been measured at fair value. In addition, these interim condensed consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. The Company presents its classified consolidated statements of financial position distinguished between current and non-current assets and liabilities.
e) Significant judgments
The preparation of the Company's interim condensed consolidated financial statements under IFRS requires management to exercise judgment in applying the Company's accounting policies. Judgments made by management in the ongoing application of IFRS that have a significant effect on the interim condensed consolidated financial statements are outlined below:
i) Going concern
The Company applies judgment to determine whether there are material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern.
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StickIt Technologies Inc.
Notes to the Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
STICKIT
2. BASIS OF PREPARATION (CONT'D)
e) Significant judgments (cont'd)
ii) Non-financial assets
The Company applies judgment to assess whether there are any indications that its non-financial assets may be impaired. This assessment requires an assessment of external, internal and other indicators at the end of each reporting period.
iii) Provisions and contingencies
The Company may encounter obligations arising from past events, which will only be confirmed by the occurrence or non-occurrence of future events not wholly within the control of the Company or where the obligation cannot be reliably estimated. The Company reviews such situations at each consolidated statement of financial position date and makes judgments on all information available to determine if an outflow of economic resources can be reliably estimated or not. If this is not possible, a contingency is reported for each material case.
iv) Research and development costs
Judgment is required to distinguish the research phase and the development phase to correctly identify costs that qualify for capitalization.
v) Income taxes
The Company applies judgment in determining the tax rates applicable to the temporary differences to determine the provision for income taxes. Deferred taxes relate to temporary differences between accounting and tax asset values. They are measured using tax rates that are expected to apply in the year when the asset is realized, or the liability is settled. Temporary differences are differences between accounting and tax asset values expected to be deductible or taxable in the future.
f) Use of estimates and assumptions
The preparation of the Company's interim condensed consolidated financial statements requires management to make estimates based on events and circumstances that existed at the consolidated statement of financial position date. Accordingly, actual results may differ from these estimates. Significant estimates made by management with a significant risk of material adjustment in the current and following years are discussed below:
i) Non-financial assets
The Company estimates the useful life of its non-financial assets, which include an assessment of the expected usage of the asset, product life-cycles, technological obsolescence and the period of control over the asset. The useful life impacts the amount of amortization recorded in profit or loss in during the year, and the corresponding reduction of the non-financial assets value.
ii) Share-based payments
The Company measures equity-settled share-based payment transactions based on an estimate of the fair value of goods or services received, unless that fair value cannot be estimated reliably, in which case the Company measures the fair value of the goods or services received based on the fair value of the equity instruments granted.
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StickIt Technologies Inc.
Notes to the Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
STICKIT
2. BASIS OF PREPARATION (CONT'D)
g) Functional and presentation currency
These interim condensed consolidated financial statements are presented in Canadian dollars, which is the Company's presentation currency.
3. SIGNIFICANT ACCOUNTING POLICIES
a) Future accounting pronouncements
The following standards have not yet been adopted and are being evaluated to determine their impact on the Company.
- Amendments to IAS 1: Classification of Liabilities as Current or Non-current
- Amendments to IAS 8: Definition of Accounting Estimates and Errors
- Amendments to IAS 12: Amendments to IFRS 16 Leases and IFRS 17 Insurance Contracts
- Annual Improvements to IFRS: Disclosure of Accounting Policies
- Standards 2018-2020 Cycle
- Amendments to IAS 1 and IFRS Practice Statement 2
The directors do not expect that the adoption of the Standards listed above will have a material impact on the interim condensed financial statements of the Company in future periods.
4. EQUITY
The Company is authorized to issue 127,547,356 common shares and has 127,547,356 common shares issued and outstanding as of September 30, 2025, and December 31, 2024.
In July of 2025, the Company issued 3,000,000 options to purchase common shares subject to vesting restrictions and exercisable at a price of $0.10 per common for a period of five years from the date of grant.
5. RELATED PARTY TRANSACTIONS AND BALANCES
(a) Key management personnel transactions
Key management includes the Company's directors, officers and any consultants with the authority and responsibility for planning, directing, and controlling the activities of an entity, directly or indirectly. Management of the Company appointed by the board of directors as follows: Chief Executive Officer, Chief Financial Officer.
Included in accounts payable is $685 due to key management personnel as at September 30, 2025 (December 31, 2024 – $537)
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StickIt Technologies Inc.
Notes to the Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
STICKIT
6. LOSS PER SHARE
The weighted-average number of common shares for the three-and-six months ended September 30, 2025 was 112,819,460 (2024 – 104,121,000).
7. FINANCIAL INSTRUMENTS
a) Accounting classifications and fair values
All financial instruments as of September 30, 2025, and December 31, 2024, were held at amortized cost.
b) Transfers
For periods ending September 30, 2025, and 2024, there have been no transfers between Level 1, Level 2, and Level 3.
c) Financial risk management
The Company has exposure to credit risk, liquidity risk, and market risk arising from financial instruments. Management considers credit risk and market risk to be low.
i) Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors has established the risk management committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities.
The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressful conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company aims to maintain the level of its cash and cash equivalents at an amount more than expected cash outflows on liabilities (other than trade payables) over the next 60 days. The Company also monitors the level of expected cash inflows in trade and other receivables, together with the expected outflows in trade and other payables.
The Company's exposure to liquidity risk is $713 as of September 30, 2025 (December 31, 2024 – $544), for which the Company has cash of $344 on hand to satisfy its liabilities as of September 30, 2025 (December 31, 2024 – $439). There have been no changes to the method for managing liquidity risk.
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StickIt Technologies Inc.
Notes to the Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
STICKIT
7. FINANCIAL INSTRUMENTS (CONT'D)
ii) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. In order to reduce its credit risk, the Company reviews a new customer's credit history before extending credit and conducts regular reviews of its existing customers' credit performance. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific accounts, historical trends and other information.
iv) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency rate risk, interest rate risk and other price risk. The Company is mainly exposed to interest rates and currency risk.
8. CAPITAL MANAGEMENT
The Company defines capital as its equity. The Company's objective when managing capital is: (i) to safeguard the ability to continue as a going concern so that it can continue to provide returns to shareholders and benefits to other stakeholders; and (ii) to provide an adequate return to shareholders by obtaining an appropriate amount of financing commensurate with the level of risk. The Company sets the amount of capital in proportion to the risk. The Company manages its capital structure and adjusts in light of the changes in economic conditions and the characteristic risk of underlying assets.
To maintain or adjust the capital structure, the Company may repurchase shares, return capital to shareholders, issue new shares, or sell assets to reduce debt. The Company's objective is met by retaining adequate liquidity to provide for the possibility that cash flows from assets will not be sufficient to meet operational, investing, and financing requirements. There have been no changes to the Company's capital management policies during the periods ending September 30, 2025, and 2024.
9. SEGMENTED INFORMATION
In measuring its performance, the Company does not distinguish or group its operations on a geographical or any other basis and accordingly has a single reportable operating segment. Management has applied judgment by aggregating its operating segments into one single reportable segment for disclosure purposes. Such judgment considers the nature of the operations and an expectation of operating segments within a reportable segment with similar long-term economic characteristics.
The Company's Chief Executive Officer is the chief operating decision-maker and regularly reviews The Company's operations and performance on an aggregate basis. The Company does not have any significant customers or any significant groups of customers.
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StickIt Technologies Inc.
Notes to the Interim Condensed Consolidated Financial Statements
For the three and nine-month periods ended September 30, 2025 and 2024
(Expressed in thousands of Canadian dollars except per share amounts)
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STICKIT
10. SUBSEQUENT EVENTS
On October 23, 2025, the Company issued a press release clarifying the terms of a non-binding letter of intent ("LOI") entered into with Capitalink Ltd. Under the LOI, Capitalink agreed to acquire all rights to amounts owed by the Company to two directors for total consideration of $380,000. As previously disclosed, these liabilities amounted to $713,000 as at September 30, 2025. The Company also reaffirmed its intention to complete a post-consolidation private placement of between $700,000 and $1,050,000. Although the transactions contemplated under the LOI will result in new shareholders holding more than 50% of the voting securities, management does not expect the transactions to result in a change of control or a Fundamental Change under applicable CSE policies.
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