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Xtract One Technologies Inc. Interim / Quarterly Report 2026
46883_rns_2025-12-03_8172733f-cdc0-48b0-a579-097e7e5bd2ce.pdf
Interim / Quarterly Report
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Condensed Consolidated Interim Financial Statements
For three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
Xtract One Technologies Inc.
Condensed Consolidated Interim Statements of Financial Position
(Expressed in Canadian Dollars)
(Unaudited)
| October 31, 2025 | July 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 9,140,290 | $ 8,220,089 |
| Receivables (Note 4) | 2,271,757 | 1,600,176 |
| Prepaid expenses and deposits | 1,059,622 | 2,328,455 |
| Current portion of deferred cost of revenue (Note 6) | 466,257 | 434,284 |
| Inventory (Note 5) | 3,412,439 | 2,829,437 |
| 16,350,365 | 15,412,441 | |
| Property and equipment (Note 7) | 2,075,539 | 2,351,765 |
| Intangible assets (Note 8) | 4,320,386 | 4,527,260 |
| Non-current portion of deferred cost of revenue (Note 6) | 69,315 | 167,850 |
| Right of use assets (Note 9) | 884,968 | 953,513 |
| Total assets | $ 23,700,573 | $ 23,412,829 |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities | $ 3,315,141 | $ 3,027,553 |
| Current portion of deferred revenue (Note 10) | 6,001,371 | 6,142,469 |
| Current portion of lease liability (Note 9) | 249,335 | 252,104 |
| 9,565,847 | 9,422,126 | |
| Non-Current liabilities | ||
| Non-current portion of deferred revenue (Note 10) | 2,991,075 | 2,426,834 |
| Non-current portion of lease liability (Note 9) | 806,693 | 878,294 |
| $ 13,363,615 | $ 12,727,254 | |
| Shareholders' equity | ||
| Share capital (Note 13) | $ 152,607,579 | $ 150,239,300 |
| Contributed surplus | 18,773,925 | 18,535,306 |
| Accumulated deficit | (161,440,265) | (158,442,649) |
| Accumulated other comprehensive income | 395,719 | 353,618 |
| $ 10,336,958 | 10,685,575 | |
| Total liabilities and shareholders' equity | $ 23,700,573 | $ 23,412,829 |
Reporting entity (Note 1)
Basis of preparation (Note 2)
Subsequent events (Note 18)
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
Approved on behalf of the Board:
"Peter Evans"
Director, Chief Executive Officer
"Peter van der Gracht"
Director, Chairman of the Board
Xtract One Technologies Inc.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)
(Unaudited)
| Three months ended October 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Revenue (Note 10) | $ 4,595,951 | $ 3,627,837 |
| Cost of revenue (Note 11) | 1,925,720 | 1,313,430 |
| Gross profit | $ 2,670,231 | $ 2,314,407 |
| Operating expenses (Notes 12, 14) | ||
| Selling and marketing | $ 1,944,213 | $ 1,663,159 |
| General and administration | 1,987,606 | 1,864,192 |
| Research and development | 1,689,114 | 1,799,611 |
| Loss on inventory write-down (Note 5) | 83,579 | - |
| Total operating expenses | $ 5,704,512 | $ 5,326,962 |
| Loss from operations | (3,034,281) | (3,012,555) |
| Interest and other income | 36,665 | 74,919 |
| Net loss for the period | $ (2,997,616) | $ (2,937,636) |
| Other comprehensive income for the period | ||
| Currency translation differences for foreign operations | 42,101 | 282,819 |
| Comprehensive loss for the period | $ (2,955,515) | $ (2,654,817) |
| Weighted average number of shares | 240,691,271 | 218,397,852 |
| Basic and diluted loss per share | $ (0.01) | $ (0.01) |
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
Xtract One Technologies Inc.
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity
(Expressed in Canadian Dollars)
(Unaudited)
| Share Capital | Contributed surplus | AOCI1 | Accumulated deficit | Total | ||
|---|---|---|---|---|---|---|
| Number of shares | Amount | |||||
| Balance - July 31, 2025 | 239,126,987 | $ 150,239,300 | $ 18,535,306 | $ 353,618 | $ (158,442,649) | $ 10,685,575 |
| Shares issued on the exercise of warrants (Notes 13, 15) | 4,345,000 | 2,368,279 | (238,929) | - | $ 2,129,350 | |
| Share-based compensation (Notes 13, 14) | 477,548 | 477,548 | ||||
| Other comprehensive income for the period | 42,101 | 42,101 | ||||
| Loss for the period | (2,997,616) | (2,997,616) | ||||
| Balance - October 31, 2025 | 243,471,987 | $ 152,607,579 | $ 18,773,925 | $ 395,719 | $ (161,440,265) | $ 10,336,958 |
| Balance - July 31, 2024 | 218,388,237 | $ 144,372,452 | $ 16,163,950 | $ - | $ (146,565,553) | $ 13,970,849 |
| Shares issued on the exercise of stock options (Notes 13, 15) | 12,500 | 7,429 | (2,683) | - | - | 4,746 |
| Share-based compensation (Notes 13, 14) | - | - | 423,225 | - | 423,225 | |
| Other comprehensive income for the period | 282,819 | 282,819 | ||||
| Loss for the period | - | - | - | - | (2,937,636) | (2,937,636) |
| Balance - October 31, 2024 | 218,400,737 | $ 144,379,881 | $ 16,584,492 | $ 282,819 | $ (149,503,189) | $ 11,744,003 |
(1) AOCI is Accumulated Other Comprehensive Income
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
5
Xtract One Technologies Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian Dollars)
(Unaudited)
Three months ended October 31,
| 2025 | 2024 | |
|---|---|---|
| Cash flow used in operating activities | ||
| Loss for the period | $ (2,997,616) | $ (2,937,636) |
| Adjustment for: | ||
| Share-based compensation (Notes 13, 14) | 477,548 | 423,225 |
| Depreciation (Notes 7, 9, 12) | 364,981 | 347,318 |
| Amortization (Notes 8, 12) | 239,513 | 207,808 |
| Finance cost (Notes 9, 15) | 10,667 | 10,663 |
| Loss on inventory (Note 5) | 83,579 | - |
| (1,821,328) | (1,948,622) | |
| Changes in non-cash working capital | ||
| Receivables | (657,851) | 196,478 |
| Prepaid expenses and deposits | 1,270,369 | (6,457) |
| Inventory | (636,885) | (416,490) |
| Deferred cost of revenue (Note 6) | 67,247 | 91,851 |
| Accounts payable and accrued liabilities | 276,252 | (130,246) |
| Deferred revenue | 339,519 | 258,663 |
| Cash used in operating activities | (1,162,677) | (1,954,823) |
| Cash flow used in investing activities | ||
| Internally developed intangible assets (Note 8) | - | (445,912) |
| Acquisition of right of use asset (Note 9) | - | (5,028) |
| Cash used in investing activities | - | (450,940) |
| Cash flow generated from financing activities | ||
| Proceeds on issue of share capital | 2,129,350 | 4,745 |
| Lease payments (Note 9) | (85,037) | (78,920) |
| Cash generated from (used in) financing activities | 2,044,313 | (74,175) |
| Effect of exchange rate changes on cash and cash equivalents | 38,565 | (28,778) |
| Net increase (decrease) in cash and cash equivalents for the period | $ 920,201 | $ (2,508,716) |
| Cash and cash equivalents beginning of the period | 8,220,089 | 8,628,521 |
| Cash and cash equivalents end of the period | $ 9,140,290 | $ 6,119,805 |
Supplemental cash flow information (Note 15)
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
1. Reporting entity
Xtract One Technologies Inc. (the "Company") was incorporated under the Business Corporation Act of British Columbia. Its common shares are listed under the trading symbol "XTRA" on the Toronto Stock Exchange ("TSX") in Canada, "XTRAF" on the OTCQX in the United States, and "0PL" on the Frankfurt Stock Exchange in Germany. Certain warrants of the Company are also listed for trading on the TSX under the trading symbol "XTRA.WT". The Company's wholly owned subsidiaries include Xtract One Detection Ltd. ("Xtract Detection"), Patriot One (UK) Limited ("Patriot UK"), Xtract One (US) Technologies Inc. ("Xtract US"), EhEye Inc. ("EhEye") and Xtract Technologies Inc. ("Xtract Technologies"). The principal business of the Company is the development and commercialization of integrated, layered, AI-powered threat detection gateway solutions, referred to as the "Gateways", with the aim of enhancing public health and safety.
The Company's head office is located at 55 York Street, Suite 1100, Toronto, Ontario, Canada, M5J 1R7, and its registered and records office is located at Bentall 5, 2501 - 550 Burrard Street, Vancouver, British Columbia, Canada, V6C 2B5.
2. Basis of preparation
(a) Statement of compliance
These condensed consolidated interim financial statements, including the comparative period, have been prepared in accordance IFRS – Accounting Standards ("IFRS"), with International Accounting Standard ("IAS 34"), Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"), and on a going concern basis. Accordingly, certain disclosures normally included in annual financial statements prepared in accordance with IFRS have been omitted or condensed, and therefore, these condensed consolidated interim financial statements should be read in conjunction with the Company's annual consolidated financial statements as at July 31, 2025. These condensed consolidated interim financial statements were approved for issuance by the Board of Directors on December 3, 2025.
(b) Principles of consolidation
These condensed consolidated interim financial statements include the accounts of the Company and its wholly owned subsidiaries, Xtract Detection, Patriot UK, Xtract US, EhEye, and Xtract Technologies. Subsidiaries are entities controlled by the Company. Control exists when the Company has the power to govern the financial and operating policies of an entity directly or indirectly so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account in the assessment of whether control exists. Subsidiaries are consolidated from the date on which control is transferred to the Company and deconsolidated from the date on which control ceases.
All significant intercompany balances and transactions have been eliminated on consolidation.
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
(c) Functional currency, presentation currency and foreign currency translation
The functional currency of the Company and all of its subsidiaries is the Canadian dollar, except for Xtract US whose functional currency is the U.S. dollar.
These condensed consolidated interim financial statements are presented in Canadian dollars.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in currencies other than an entity's functional currency are recognized in the interim condensed consolidated statements of loss and comprehensive loss.
The financial statements of Xtract US, which has a functional currency that is different from the presentation currency of Canadian dollars, are translated into Canadian dollars as follows: assets and liabilities at the closing rate at the date of the interim condensed consolidated statements of financial position, and income and expenses at the average rate of the period as this is considered a reasonable approximation to actual rates. All resulting changes are recognized in other comprehensive income (loss) as translation adjustments.
(d) Basis of measurement
These condensed consolidated interim financial statements have been prepared on the historical cost basis except for financial instruments measured at fair value, if applicable. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting, except for cash flow information.
(e) Comparative figures
The Company has reclassified comparative figures for the prior period Operating Expenses in Note 12 to align with the current period presentation. As a result, the Company has reclassified the amount of $126,090 and $54,912 from Other operating expenses to Information technology and Tradeshows and other marketing expenses respectively, for a total reclassification of $181,002.
- Material accounting policies
The accounting policies, estimates, and judgments used in the preparation of these condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto for the year ended July 31, 2025, as these condensed consolidated interim financial statements follow the same accounting policies and methods of application.
7
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
(a) Material accounting judgments, estimates, and assumptions
The preparation of these condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates, and assumptions that affect the reported amount of assets, liabilities, and contingent liabilities at the date of the condensed consolidated interim financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.
Material areas requiring the use of management estimates and judgments include:
Share-based compensation
The fair value of stock options granted is measured using the Black-Scholes option pricing model. Measurement inputs include the share price on the measurement date, the exercise price of the option, expected volatility, expected life of the options, expected dividends, and risk-free interest rate. These estimates will impact the valuation of share-based compensation.
Deferred income tax assets and liabilities
The measurement of deferred income tax provision is subject to the uncertainty associated with the timing of future events and changes in legislation, tax rates, and interpretations by tax authorities. The estimation of taxes includes evaluating the recoverability of deferred tax assets based on an assessment of the Company's ability to utilize the underlying future tax deductions against future taxable income prior to the expiry of those deductions. Management assesses whether it is probable that some or all of the deferred income tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income, which in turn is dependent upon the successful operations of the Company. To the extent that management's assessment of the Company's ability to utilize future tax deductions changes, the Company would be required to recognize more or fewer deferred tax assets, and deferred tax provisions or recoveries could be affected.
Treatment of development costs
Costs to develop products are capitalized to the extent that the criteria for recognition as intangible assets in IAS 38 Intangible Assets are met. Those criteria require that the product is technically and economically feasible, which management assesses based on the attributes of the development project, perceived user needs, industry trends, and expected future economic conditions. Management considers these factors in aggregate and applies significant judgment to determine whether the product is feasible.
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
Estimated useful lives, depreciation, and amortization of property and equipment and intangible assets
Depreciation and amortization of property and equipment and intangible assets are dependent upon estimates of useful lives, which are determined through the exercise of judgment. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that take into account factors such as economic and market conditions and the useful lives of the assets.
Right of use lease assets and liabilities
The right-of-use assets and liabilities are measured at the present value of future lease payments discounted using the rate implicit in the lease or incremental borrowing rate for the Company estimated based on comparable companies' borrowing rates if the rate implicit in the lease is not readily determined. These assumptions will impact the valuation of right-of-use assets and liabilities and finance costs.
Assessment of a subsidiary's functional currency
As per IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity's functional currency is the currency of the primary economic environment in which it operates. Management exercises judgment when assessing the primary and secondary indicators to determine an entity's functional currency.
Revenue recognition
Revenue arising from the sale of or subscription to use the Company's products is recognized as the Company fulfills its performance obligations. There are significant estimates made in determining and measuring performance obligations that could impact the timing of revenue recognition.
Going concern
The preparation of the Company's condensed consolidated interim financial statements requires management to identify whether the Company and its subsidiaries will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the ordinary course of operations. A different basis of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. To assess this, the Company must identify events and conditions that may indicate significant doubt about the Company's ability to continue as a going concern. The Company considers whether its plans that are intended to mitigate those relevant conditions or events will alleviate the potential significant doubt.
The ability of the Company to continue as a going concern is dependent on either a single or a combination of events occurring - obtaining additional financing through the issuance of debt or equity, and/or generating profit through its operations. There is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company or that profitable
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
operations are not achieved. These matters result in material uncertainties which may cast significant doubt on whether the Company will continue as a going concern.
The Company manages its liquidity risk in order to meet its contractual obligations by ensuring there is appropriate cash on hand and obtaining other opportunities for financing. The Company identifies when funds are required through the planning and budgeting process to support the Company's normal operations. The Company's ability to continue as a going concern involves significant judgments and estimates while determining forecasted cash flows and is dependent on the Company's ability to obtain financing.
These condensed consolidated interim financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these condensed consolidated interim financial statements, then adjustments would be necessary in the carrying value of assets and liabilities, the reported revenues and expenses, and the statement of financial position classification used.
(b) New accounting standards issued but not yet in effect
Presentation and Disclosure in Financial Statement (IFRS 18)
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements ("IFRS 18") which replaces IAS 1 Presentation of Financial Statements.
IFRS 18 introduces:
i. new requirements on presentation within the statement of profit or loss;
ii. disclosure standards regarding management defined performance measures; and
iii. principles for aggregation and disaggregation of financial information in the financial statements and the notes.
IFRS 18 will be effective for annual reporting periods beginning on or after January 1, 2027. IFRS 18 is to be applied retrospectively. The Company is currently assessing the impact that IFRS 18 will have on its consolidated financial statements.
4. Receivables
Receivables are comprised of the following:
| October 31, 2025 | July 31, 2025 | |
|---|---|---|
| Trade receivables | $ 2,094,542 | $ 1,416,532 |
| Taxes receivable | 177,215 | 183,644 |
| $ 2,271,757 | $ 1,600,176 |
As of October 31, 2025, the Company had not made a provision for uncollectible accounts (July 31, 2025 - $nil).
10
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
5. Inventory
The Company's inventory consists of hardware components and finished goods that will be used in product offerings and is summarized below:
| October 31, 2025 | July 31, 2025 | |
|---|---|---|
| Components and work-in-progress | $ 365,791 | $ 341,335 |
| Finished goods | 3,046,648 | 2,488,102 |
| $ 3,412,439 | $ 2,829,437 |
During the three months ended October 31, 2025, the Company recorded total inventory sold of $1,213,495 (2024 - $741,441) under cost of revenue. The Company has reclassified inventory in the amount of $219,371 (July 31, 2025 - $1,534,395) to subscription and demo assets and $nil (July 31, 2025 - $37,939) to office equipment (Note 7). As at October 31, 2025, the Company had outstanding purchase obligations of $3,299,659 (July 31, 2025 - $2,023,958) related to future finished goods that will be drawn down within the next year. During the three months ended October 31, 2025, the Company recognized a loss of $83,579 (2024 - $nil) related to obsolete inventory.
6. Deferred cost of revenue
The Company's deferred cost of revenue consists of hardware and software delivered to customers in advance of recognizing revenue, and is summarized below:
| Deferred cost of revenue | |
|---|---|
| Cost | |
| Balance at July 31, 2024 | $ 1,045,377 |
| Additions | 114,578 |
| Balance at July 31, 2025 | 1,159,955 |
| Additions | 38,538 |
| Balance at October 31, 2025 | $ 1,198,493 |
| Accumulated amortization | |
| Balance at July 31, 2024 | $ 177,200 |
| Amortization | 380,621 |
| Balance at July 31, 2025 | 557,821 |
| Amortization | 105,100 |
| Balance at October 31, 2025 | $ 662,921 |
| Carrying amount as at October 31, 2025 | $ 535,572 |
| Current portion of deferred cost of revenue | (466,257) |
| Non-current portion of deferred cost of revenue | $ 69,315 |
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
These costs are deferred until the corresponding revenues are recognized, at which point they are amortized to cost of revenue. During the period ended October 31, 2025, the Company recognized net additions of $38,538 to deferred cost of revenue (July 31, 2025 - $114,578) and expensed $105,100 to cost of revenue (2024 - $91,851).
7. Property and equipment
Details of the Company's property and equipment as at October 31, 2025 and July 31, 2025 are as follows:
| Office equipment | Computer hardware | Furniture & fixtures | Subscription & demo assets | Leasehold improvements | Total | |
|---|---|---|---|---|---|---|
| Cost | ||||||
| Balance at July 31, 2024 | $ 1,440,472 | $ 326,283 | $ 154,766 | $ 2,242,316 | $ 158,268 | 4,322,105 |
| Foreign currency translation | 4,349 | - | - | 69,738 | - | 74,087 |
| Additions | - | - | - | - | 185,725 | 185,725 |
| Reclassification | 37,939 | - | - | 1,210,864 | - | 1,248,803 |
| Retirement of assets | - | - | (29,939) | (43,230) | (188,010) | (261,179) |
| Balance at July 31, 2025 | $ 1,482,760 | $ 326,283 | $ 124,827 | $ 3,479,688 | $ 155,983 | $ 5,569,541 |
| Foreign currency translation | 1,624 | - | - | 27,566 | - | 29,190 |
| Additions | - | - | - | - | - | - |
| Reclassification | - | - | - | (158,642) | - | (158,642) |
| Retirement of assets | - | - | - | - | - | - |
| Balance at October 31, 2025 | $ 1,484,384 | $ 326,283 | $ 124,827 | $ 3,348,612 | $ 155,983 | $ 5,440,089 |
| Accumulated depreciation | ||||||
| Balance at July 31, 2024 | $ 1,042,333 | $ 299,661 | $ 112,448 | $ 611,695 | $ 120,012 | $ 2,186,149 |
| Foreign currency translation | 1,988 | - | - | 28,288 | - | 30,276 |
| Depreciation | 105,961 | 11,926 | 8,179 | 946,636 | 34,826 | 1,107,528 |
| Reclassification | (3,021) | - | - | (29,436) | - | (32,457) |
| Retirement of assets | - | - | (20,520) | (30,884) | (22,317) | (73,721) |
| Balance at July 31, 2025 | $ 1,147,261 | $ 311,587 | $ 100,107 | $ 1,526,299 | $ 132,521 | $ 3,217,775 |
| Foreign currency translation | 450 | - | - | 9,909 | - | 10,359 |
| Depreciation | 21,039 | 1,342 | 1,355 | 271,420 | 1,280 | 296,436 |
| Reclassification | - | - | - | (160,021) | - | (160,021) |
| Retirement of assets | - | - | - | - | - | - |
| Balance at October 31, 2025 | $ 1,168,750 | $ 312,929 | $ 101,462 | $ 1,647,607 | $ 133,801 | $ 3,364,549 |
| Carrying amount as at July 31, 2025 | $ 335,499 | $ 14,696 | $ 24,720 | $ 1,953,389 | $ 23,461 | $ 2,351,765 |
| Carrying amount as at October 31, 2025 | $ 315,634 | $ 13,354 | $ 23,365 | $ 1,701,005 | $ 22,181 | $ 2,075,539 |
The Company recorded depreciation of subscription assets in the amount of $211,612 (2024 - $175,455) under cost of revenue.
12
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
8. Intangible assets
The carrying values of intangible assets as at October 31, 2025 and July 31, 2025 are as follows:
| Quasar licensed distribution rights | EhEye intellectual property | Internally developed intellectual property | Total | |
|---|---|---|---|---|
| Cost | ||||
| Balance at July 31, 2024 | 6,574,000 | 1,250,000 | 662,955 | 8,486,955 |
| Foreign currency translation | 348,000 | - | - | 348,000 |
| Additions | - | - | 729,730 | 729,730 |
| Balance at July 31, 2025 | $ 6,922,000 | $ 1,250,000 | $ 1,392,685 | $ 9,564,685 |
| Foreign currency translation | 87,000 | - | - | 87,000 |
| Additions | - | - | - | - |
| Balance at October 31, 2025 | $ 7,009,000 | $ 1,250,000 | $ 1,392,685 | $ 9,651,685 |
| Accumulated amortization | ||||
| Balance at July 31, 2024 | 3,315,825 | 593,750 | 111,625 | 4,021,200 |
| Foreign currency translation | 170,050 | - | - | 170,050 |
| Amortization | 697,675 | 125,000 | 23,500 | 846,175 |
| Balance at July 31, 2025 | $ 4,183,550 | $ 718,750 | $ 135,125 | $ 5,037,425 |
| Foreign currency translation | 54,361 | - | - | 54,361 |
| Amortization | 173,446 | 31,250 | 34,817 | 239,513 |
| Balance at October 31, 2025 | $ 4,411,357 | $ 750,000 | $ 169,942 | $ 5,331,299 |
| Carrying amount as at July 31, 2025 | $ 2,738,450 | $ 531,250 | $ 1,257,560 | $ 4,527,260 |
| Carrying amount as at October 31, 2025 | $ 2,597,643 | $ 500,000 | $ 1,222,743 | $ 4,320,386 |
Quasar - Licensed distribution rights
In June 2019, the Company entered into a licensing agreement with Quasar Federal Systems, Inc. ("Quasar") receiving a perpetual, worldwide, exclusive, fully paid-up, transferable and irrevocable license (with a right of sublicense) to use Quasar's intellectual property in exchange for an aggregate cash consideration of $6,574,000 (US$5,000,000). The Quasar license includes access to patented sensor technology and patent-pending magnetic detection and security screening technology. The Company also has the right to engage Quasar's development team to assist with future modifications to the technology, as well as manufacturing and implementation engineering. The license was recognized as an intangible asset and is amortized over its estimated useful life of ten years. The remaining useful life of the Quasar license is approximately four years.
EhEye - Intellectual property
In connection with the acquisition of EhEye during the year ended July 31, 2019, the Company determined the fair value of the intellectual property acquired in connection with the acquisition of EhEye to be $1,250,000. As at November 1, 2019, the Company determined that this technology was ready for commercial use and began amortizing the acquired intellectual property over the technology's estimated useful life of ten years. The remaining useful life of this intangible asset is approximately four years.
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
Internally developed intellectual property
In fiscal 2019 and 2020, the Company determined that $235,000 of directly attributable development expenditures met the criteria for capitalization. As at November 1, 2019, the Company determined that this technology was ready for commercial use and began amortizing the capitalized development costs over the technology's estimated useful life of ten years. The remaining useful life of this intangible asset is approximately four years.
In fiscal 2024, the Company determined that $427,955 of directly attributable development expenditures met the criteria for capitalization. In fiscal 2025, an additional $729,730 of directly attributable development expenditures met the criteria. As at August 1, 2025, the Company determined that this technology is available for commercial use and began amortizing the capitalized development costs over the technology's estimated useful life of ten years. The Company does not anticipate any further amounts meeting the criteria for capitalization.
9. Right of use assets and lease liabilities
The Company has recorded the right of use assets and lease liabilities in its statements of financial position related to three properties for which the Company has entered into office lease agreements with an initial term of one year or more. These leases have been classified as a single class of right of use assets under office leases. During the three month period ended October 31, 2025, there were no remeasurements of existing leases and no new lease agreements entered into, and therefore no additional acquisition costs were recognized (2024 - $5,028).
The carrying amounts of the Company's right of use assets, liabilities, and the movements for the three months ended October 31, 2025, and the year ended July 31, 2025, are as follows:
| Right of use assets | Right of use liabilities | |
|---|---|---|
| As at July 31, 2024 | $ 344,304 | $ 380,926 |
| Additions | 868,375 | 863,856 |
| Depreciation | (384,951) | - |
| Finance costs (Note 15) | - | 45,181 |
| Remeasurement | 125,785 | 125,785 |
| Lease payments | - | (285,350) |
| As at July 31, 2025 | $ 953,513 | $ 1,130,398 |
| Additions | - | - |
| Depreciation | (68,545) | - |
| Finance costs (Note 15) | - | 10,667 |
| Remeasurement | - | - |
| Lease payments | - | (85,037) |
| As at October 31, 2025 | $ 884,968 | $ 1,056,028 |
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
The following table summarizes the Company's future lease commitments:
| Fiscal year | Amount |
|---|---|
| 2026 | $ 205,601 |
| 2027 | 313,901 |
| 2028 | 249,089 |
| 2029 | 235,277 |
| 2030 | 137,248 |
| Effects of discounting | (85,088) |
| Right of use liabilities | $ 1,056,028 |
| Current portion of right of use liabilities | (249,335) |
| Non-current portion of right of use liabilities | $ 806,693 |
The Company has elected to apply the recognition exemption for leases of low value assets for an office lease agreement for which the Company has not recognized a right-of-use asset or liability. Lease payments for this asset are expensed on a straight-line basis over the 12 month lease term and the total expense relating to this lease for the three months ended October 31, 2025 is $1,028 (2024 - $nil).
10. Revenue
The Company recognized $4,595,951 (2024 - $3,627,837) in revenue during the three months ended October 31, 2025. As at October 31, 2025, accounts receivable pertaining to revenue was $2,094,542 (July 31, 2025 - $1,416,532) and deferred revenue was $8,992,446 (July 31, 2025 - $8,569,303).
Deferred revenue consists of advance payments received from customers for the future sale of or subscription to use the Company's products. The Company estimates that these amounts will be recognized as revenue under the following timelines:
| Fiscal year | Amount |
|---|---|
| 2026 | $ 6,001,371 |
| 2027 | 2,184,247 |
| 2028 | 674,715 |
| 2029 | 125,073 |
| 2030 | 7,040 |
| $ 8,992,446 | |
| Current portion of deferred revenue | (6,001,371) |
| Non-current portion of deferred revenue | $ 2,991,075 |
Revenue from two customers represented 52% of the Company's total revenue the three months ended October 31, 2025 (2024 - three customers represented 48%).
15
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
The Company has a backlog of contracted sales that have not yet been recognized as revenue but will be recognized in future periods as performance obligations are met. It is estimated that these commitments will be recognized as revenue under the following timelines:
| Less than one year | Greater than one year | Total backlogOctober 31, | ||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Total backlog* | $ 7,162,211 | $ 6,921,875 | $ 14,084,086 | $ 14,042,440 |
- Backlog figures exclude contracted sales that are pending installation.
11. Cost of revenue
The breakdown of expenses incurred as part of cost of revenue is as follows:
| Three months ended October 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Product | $ 1,465,940 | $ 966,192 |
| Installation | 36,373 | 50,361 |
| Shipping | 85,109 | 50,958 |
| Depreciation | 211,612 | 175,455 |
| Salaries and commissions | 126,686 | 70,464 |
| $ 1,925,720 | $ 1,313,430 |
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
12. Operating expenses
The Company's operating expenses are comprised of the following:
| Three months ended October 31, 2025 | ||||
|---|---|---|---|---|
| General and Administration | Research and Development | Sales and Marketing | Total | |
| Personnel costs | $ 995,454 | $ 1,094,830 | $ 1,075,930 | $ 3,166,214 |
| Professional fees | 151,358 | 6,281 | - | 157,639 |
| Facilities | 75,355 | 57,952 | - | 133,307 |
| Tradeshows, advertising, and investor relations | 87,216 | - | 688,244 | 775,460 |
| Development supplies | - | 88,726 | - | 88,726 |
| Insurance | 85,052 | - | - | 85,052 |
| Share-based compensation (Note 13) | 265,099 | 137,949 | 74,500 | 477,548 |
| Depreciation (Notes 7, 9) | 93,561 | - | 59,808 | 153,369 |
| Amortization (Note 8) | - | 239,513 | - | 239,513 |
| Information Technology | 110,657 | 1,800 | 42,354 | 154,811 |
| Other | 123,854 | 62,063 | 3,377 | 189,294 |
| $ 1,987,606 | $ 1,689,114 | $ 1,944,213 | $ 5,620,933 | |
| Three months ended October 31, 2024 | ||||
| --- | --- | --- | --- | --- |
| General and Administration | Research and Development | Sales and Marketing | Total | |
| Personnel costs | $ 915,033 | $ 1,052,334 | $ 916,710 | $ 2,884,077 |
| Professional fees | 154,417 | 6,737 | - | 161,154 |
| Facilities | 59,855 | 28,531 | - | 88,386 |
| Tradeshows, advertising, and investor relations | 54,912 | - | 632,230 | 687,142 |
| Development supplies | - | 252,441 | - | 252,441 |
| Insurance | 89,666 | - | - | 89,666 |
| Share-based compensation (Note 13) | 237,181 | 130,795 | 55,250 | 423,226 |
| Depreciation (Notes 7, 9) | 152,145 | - | 20,271 | 172,416 |
| Amortization (Note 8) | - | 207,808 | - | 207,808 |
| Information Technology | 91,666 | 1,276 | 33,148 | 126,090 |
| Other | 109,317 | 119,689 | 5,550 | 234,556 |
| $ 1,864,192 | $ 1,799,611 | $ 1,663,159 | $ 5,326,962 |
13. Share capital
Authorized capital
The authorized share capital of the Company consists of an unlimited number of common shares with no par value.
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
Share capital
The issued and outstanding share capital is as follows:
| Three months ended October 31, 2025 | Year ended July 31, 2025 | |||
|---|---|---|---|---|
| Number of shares | Amount | Number of shares | Amount | |
| Balance beginning of period | 239,126,987 | $ 150,239,300 | 218,388,237 | $ 144,372,452 |
| Shares issued on the exercise of warrants | 4,345,000 | 2,368,279 | - | - |
| Shares issued on the exercise of stock options | - | - | 38,750 | 25,638 |
| Shares issued on prospectus financing, net of share issue costs | - | - | 20,700,000 | 5,841,210 |
| Balance end of period | 243,471,987 | $ 152,607,579 | 239,126,987 | 150,239,300 |
Warrants
Warrant activity for the three months ended October 31, 2025, and the year ended July 31, 2025, is as follows:
| Three months ended October 31, 2025 | Year ended July 31, 2025 | |||
|---|---|---|---|---|
| Number of warrants | Weighted average exercise price | Number of warrants | Weighted average exercise price | |
| Balance beginning of period | 74,387,509 | $ 0.57 | 61,075,159 | $ 0.63 |
| Warrants issued on financing | - | - | 22,149,000 | 0.48 |
| Warrants exercised | (4,345,000) | 0.48 | - | - |
| Warrants expired | - | - | (8,836,650) | 0.75 |
| Balance end of period | 70,042,509 | $ 0.58 | 74,387,509 | $ 0.57 |
As at October 31, 2025, outstanding warrants are as follows:
| Number of warrants outstanding | Weighted average exercise price | Expiry date | Weighted average life remaining (months) |
|---|---|---|---|
| 1,124,935 | $ 0.51 | April 24, 2026 | 5.8 |
| 19,185,979 | $ 0.64 | April 24, 2027 | 17.8 |
| 20,000,000 | $ 0.60 | February 10, 2028 | 27.3 |
| 11,925,595 | $ 0.60 | April 12, 2028 | 29.4 |
| 17,806,000 | $ 0.48 | June 18, 2028 | 31.6 |
| 70,042,509 | $ 0.58 | 25.8 |
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
Incentive awards
The Company offers an omnibus equity incentive plan (the "Omnibus Plan") that provides for the granting of incentive awards up to 10% of its issued and outstanding common shares to directors, officers, employees, and consultants. Incentive awards may consist of options, restricted share units, deferred share units, performance share units and other share-based awards. The exercise price of each option is equal to the quoted market price of the Company's common shares on the five-day volume weighted average price immediately preceding the date of grant with a maximum term of five years. Vesting terms, if any, are set at the discretion of the Board.
The stock option activity for the three months ended October 31, 2025, and the year ended July 31, 2025, is as follows:
| Three months ended October 31, 2025 | Year ended July 31, 2025 | |||
|---|---|---|---|---|
| Number of options | Weighted average exercise price | Number of options | Weighted average exercise price | |
| Balance beginning of period | 14,104,204 | $ 0.63 | 11,250,204 | $ 0.65 |
| Granted | 3,582,770 | 0.74 | 4,018,750 | 0.64 |
| Exercised | - | - | (38,750) | 0.44 |
| Forfeited / Expired | (280,000) | 0.93 | (1,126,000) | 0.81 |
| Balance end of period | 17,406,974 | $ 0.65 | 14,104,204 | $ 0.63 |
No other incentive awards were issued or outstanding pursuant to the Omnibus Plan.
During the three months ended October 31, 2025, the Company recognized share-based compensation related to stock options of $477,548 (2024 - $423,226).
Fair value of options granted during the period was determined using the Black-Scholes option pricing model with the following weighted average assumptions:
| Three months ended October 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Expected life | 3.4 years | 3.4 years |
| Expected market volatility of shares | 62% | 66% |
| Share price | $ 0.72 | $ 0.69 |
| Expected dividend rate | 0% | 0% |
| Exercise price | $ 0.74 | $ 0.67 |
| Risk-free interest rate | 2.47% | 3.21% |
| Weighted average fair value per option granted | $ 0.309 | $ 0.323 |
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
Details of the outstanding stock options as at October 31, 2025, are as follows:
| Number of stock options outstanding | Weighted average exercise price | Expiry date | Weighted average life remaining (months) | Number of stock options exercisable | Weighted average exercise price |
|---|---|---|---|---|---|
| 720,000 | $ 0.57 | December 17, 2025 | 0.4 | 720,000 | $ 0.57 |
| 60,000 | $ 0.49 | March 22, 2026 | 4.7 | 60,000 | $ 0.49 |
| 770,000 | $ 0.52 | June 15, 2026 | 7.5 | 770,000 | $ 0.52 |
| 135,000 | $ 0.43 | October 25, 2026 | 11.8 | 135,000 | $ 0.43 |
| 135,000 | $ 0.44 | December 8, 2026 | 13.3 | 135,000 | $ 0.44 |
| 882,500 | $ 0.73 | February 16, 2027 | 15.5 | 882,500 | $ 0.73 |
| 100,000 | $ 0.54 | April 1, 2027 | 17.0 | 100,000 | $ 0.54 |
| 150,000 | $ 0.54 | April 4, 2027 | 17.1 | 150,000 | $ 0.54 |
| 700,000 | $ 0.57 | April 13, 2027 | 17.4 | 700,000 | $ 0.57 |
| 125,000 | $ 0.46 | June 14, 2027 | 19.5 | 125,000 | $ 0.46 |
| 125,000 | $ 0.42 | July 11, 2027 | 20.4 | 125,000 | $ 0.42 |
| 554,000 | $ 0.38 | October 3, 2027 | 23.1 | 554,000 | $ 0.38 |
| 1,000,000 | $ 0.50 | January 13, 2028 | 26.4 | 1,000,000 | $ 0.50 |
| 448,348 | $ 0.69 | March 17, 2028 | 28.6 | 448,348 | $ 0.69 |
| 250,000 | $ 0.75 | April 24, 2028 | 29.8 | 187,500 | $ 0.75 |
| 86,644 | $ 0.95 | June 16, 2028 | 31.5 | 64,983 | $ 0.95 |
| 400,000 | $ 0.90 | July 1, 2028 | 32.0 | 300,000 | $ 0.90 |
| 101,644 | $ 0.91 | July 10, 2028 | 32.3 | 76,233 | $ 0.91 |
| 1,926,250 | $ 0.68 | October 3, 2028 | 35.1 | 1,442,814 | $ 0.68 |
| 555,068 | $ 0.69 | February 7, 2029 | 39.2 | 277,534 | $ 0.69 |
| 106,000 | $ 0.69 | March 15, 2029 | 40.5 | 53,000 | $ 0.69 |
| 650,000 | $ 0.75 | July 9, 2029 | 44.3 | 650,000 | $ 0.75 |
| 3,084,000 | $ 0.67 | October 7, 2029 | 47.2 | 1,542,000 | $ 0.67 |
| 50,000 | $ 0.68 | November 4, 2029 | 48.1 | 12,500 | $ 0.68 |
| 550,000 | $ 0.50 | February 7, 2030 | 51.2 | 137,500 | $ 0.50 |
| 59,750 | $ 0.51 | February 14, 2030 | 51.5 | 14,938 | $ 0.51 |
| 100,000 | $ 0.40 | April 4, 2030 | 53.1 | 25,000 | $ 0.40 |
| 3,582,770 | $ 0.74 | September 29, 2030 | 59.0 | 895,693 | $ 0.74 |
| 17,406,974 | $ 0.65 | 36.9 | 11,584,542 | $ 0.63 |
Loss per share
Stock options and warrants are not included in the determination of fully diluted loss per share for the three months ended October 31, 2025, and 2024, as these instruments are anti-dilutive.
14. Related party transactions
Key management personnel include persons having the authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of executive and non-executive members of the Board of Directors and corporate officers. Key management compensation earned by officers and directors of the Company during the three months ended October 31, 2025, was $528,035 (2024 - $455,550). In addition, share-based compensation expense relating to key management for the three months ended October 31, 2025, was $292,721 (2024 - $236,032).
20
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
As at October 31, 2025, there was $448,367 (July 31, 2025 - $487,995) in accounts payable and accrued liabilities due to officers and directors of the Company or to companies controlled by directors and officers of the Company. There were no other related party transactions during the three months ended October 31, 2025.
15. Supplemental cash flow information
Cash and cash equivalents consist of balances and investments in highly liquid short-term deposits, which may be converted into cash within 24 hours. Deposits with banks and short-term interest-bearing investments with an original term to maturity greater than three months but less than one year are presented as short-term investments.
As at October 31, 2025, the Company held a number of fixed guaranteed investment certificates ("GIC") valued at $69,350 (July 31, 2025 - $69,350), which are included and presented as cash equivalents. These GICs are considered highly liquid and readily convertible into cash, and as such, they are included in the calculation of cash and cash equivalents.
Non-cash financing and investing activities during the three months ended October 31, 2025 conducted by the Company are as follows:
| Transfer of inventory to property and equipment, net (Note 5) | $ 219,371 |
|---|---|
| Transfer of contributed surplus on the exercise of warrants | $ 238,929 |
Non-cash financing and investing activities during the three months ended October 31, 2024 conducted by the Company are as follows:
| Transfer of inventory to property and equipment, net (Note 5) | $ 189,707 |
|---|---|
| Transfer of contributed surplus on the exercise of stock options | $ 2,683 |
No cash was paid toward income taxes during the three months ended October 31, 2025, and 2024. The Company paid interest expense embedded in its lease payments of $10,667 during the three months ended October 31, 2025 (2024 - $10,144).
16. Financial instruments and risk management
As at October 31, 2025, the Company's financial instruments comprise of cash and cash equivalents, receivables, accounts payable and accrued liabilities. The carrying values of receivables, accounts payable and accrued liabilities approximate fair value due to the short-term nature of the instruments. The Company's cash and cash equivalents are carried at amortized cost.
21
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
Risks to the Company's financial instruments and their potential impact on the Company's financial instruments are summarized below:
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages its liquidity risk in order to meet its contractual obligations by ensuring there is appropriate cash on hand and obtaining other opportunities for financing. As at October 31, 2025, the Company had current assets of $16,350,365 (July 31, 2025 - $15,412,441) to settle current liabilities of $9,565,847 (July 31, 2025 - $9,422,126). Most of the Company's financial liabilities have contractual maturities of 30 days or less and are subject to normal trade terms.
Credit risk
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its cash and cash equivalents and receivables. The Company limits exposure to credit risk by maintaining its cash with large financial institutions. The Company does not have cash that is invested in asset-backed commercial paper. The Company's receivables primarily consist of trade receivables that the Company continues to collect on, and refundable sales tax from the Canada Revenue Agency, which are not subject to significant credit risk. The Company's maximum exposure to credit risk is limited to the carrying amount of cash and cash equivalents and receivables.
Market risk
Market risk is the risk of loss that may arise from changes in market factors such as interest rates and foreign exchange rates.
Interest rate risk
Interest rate risk arises from changes in market rates of interest that could adversely affect the Company. The Company currently has no interest-bearing financial instruments other than cash and cash equivalents, and consequentially its exposure to interest rate risk is insignificant.
Foreign currency risk
Foreign currency risk is the risk that is related to the fluctuation of foreign exchange rates. The Company's financial assets and liabilities that are denominated in foreign currencies are impacted by changes in the exchange rate between the Canadian dollar relative to the U.S. dollar. This primarily includes cash and cash equivalents, trade and other receivables, and trade and other payables. A 5% appreciation or depreciation of the CAD against the USD as of the reporting date would have resulted in an increase or decrease in profit or loss by approximately $62,488 assuming all other variables remained constant. During the three months ended October 31, 2025, the Company generated a portion of revenue in U.S. dollars, along with corresponding expenses in U.S. dollars. Management continues to evaluate its foreign currency risk as the business grows internationally.
Price risk
Price risk is defined as the potential adverse impact on the Company's earnings due to movements in individual equity prices or general movements in the level of the stock market. The Company did
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
not hold material equity investments during the quarter, and therefore, exposure to price risk is insignificant.
17. Geographic information
| For three months ended October 31, 2025 | As at October 31, 2025 | |
|---|---|---|
| Revenue | Non-current assets | |
| Geographic location | ||
| United States | $ 3,147,414 | $ 3,943,577 |
| Japan | 393,828 | 69,315 |
| Canada | 939,752 | 3,177,234 |
| United Kingdom | 104,543 | 160,082 |
| France | 10,414 | - |
| Total | $ 4,595,951 | $ 7,350,208 |
| For three months ended October 31, 2024 | As at July 31, 2025 | |
| Revenue | Non-current assets | |
| Geographic location | ||
| United States | $ 3,000,491 | $ 4,236,832 |
| Japan | 393,829 | 167,850 |
| Canada | 118,406 | 3,407,375 |
| United Kingdom | 98,331 | 188,331 |
| France | 16,780 | - |
| Total | $ 3,627,837 | $ 8,000,388 |
18. Subsequent events
The following transactions occurred subsequent to the reporting period:
i. On November 10, 2025, the Company announced that it had completed a public offering (the "Prospectus Offering"), and issued 15,334,100 units (the "Units") at a price of $0.75 per Unit which includes the full exercise of the over-allotment option granted to the underwriters for gross proceeds of $11,500,575. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant" and collectively the "Warrants") exercisable into one common share until November 10, 2028 at a price of $0.95. In connection with the Prospectus Offering, the Company paid cash commissions of $690,035 and issued 920,046 common share purchase warrants (each, an "Underwriter's Warrant"). Each Underwriter's Warrant is exercisable into one common share at an exercise price of $0.75 until November 10, 2028.
Xtract One Technologies Inc.
Notes to the Condensed Consolidated Interim Financial Statements
Three months ended October 31, 2025, and 2024
(Expressed in Canadian Dollars)
(Unaudited)
ii. On November 3, 2025, 5,000 warrants were exercised at an exercise price of $0.49 per warrant, generating gross proceeds of $2,450.
iii. On November 17, 2025, 10,000 stock options were exercised at an exercise price of $0.52 per option, generating gross proceeds of $5,200.
24