QYOU Media : CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024

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QYOU Media Inc. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and 2024 [unaudited] [expressed in Canadian dollars] NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Under Part 4, subsection 4.3(3)(a) of National Instrument 51-102 - Continuous Disclosure Obligations , if an auditor has not performed a review of the condensed consolidated interim financial statements, they must be accompanied by a notice indicating that the condensed consolidated interim financial statements have not been reviewed by an auditor. The accompanying unaudited condensed consolidated interim financial statements of QYOU Media Inc. [the "Company"] have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these condensed consolidated interim financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditor. Condensed consolidated interim statements of financial position [unaudited] [expressed in Canadian dollars] As at September 30, 2025 $ December 31, 2024 $ Assets Current assets Cash 4,130,530 946,784 Trade receivables [note 18] 6,910,952 6,716,131 Other receivables 1,647,069 2,084,873 Prepaid expenses 2,356,467 1,233,803 15,045,018 10,981,591 Non-current assets Property and equipment [note 4] 80,234 113,825 Capitalized programming asset, net [note 5] - 335,932 Right-of-use assets, net [note 7] 41,596 89,131 Security deposit 81,264 84,882 Intangible assets, net [note 6] 665,183 729,643 15,913,295 12,335,004 Liabilities Current liabilities Trade and other payables 10,730,928 10,647,230 Advanced proceeds from subsidiary IPO [note 20] 2,275,080 - Contingent consideration [note 10] 198,142 714,461 Deferred revenue 745,836 103,370 Lease liabilities [note 8] 52,732 67,866 Borrowings [note 9] 1,020,072 1,959,042 15,022,790 13,491,969 Non-current liabilities Lease liabilities [note 8] - 38,535 Borrowings [note 9] 47,915 53,298 15,070,705 13,583,802 Shareholders' equity (deficiency) Share capital [note 11] 57,650,554 55,095,379 Warrants [note 11] 4,847,300 4,432,938 Share-based payment reserve [note 11] 12,067,227 12,850,195 Foreign exchange translation reserve 82,222 121,817 Accumulated deficit (73,915,118) (72,731,028) Deficiency attributable to shareholders' of the Company 732,185 (230,699) Non-controlling interests [note 13] 110,405 (1,018,099) 842,590 (1,248,798) 15,913,295 12,335,004 Going concern [Note 1] Contingencies [Note 16] The accompanying notes are an integral part of these condensed consolidated interim financial statements. On behalf of the Board: "Signed" "Signed" Condensed consolidated interim statements of financial position [unaudited] [expressed in Canadian dollars] For the three and nine months months ended September 30, 2025 2024 2025 2024 $ $ $ $ REVENUE [note 15] 9,615,540 6,687,820 21,055,596 20,014,434 OPERATING EXPENSES Content and productions costs 4,699,697 3,447,878 10,483,432 9,719,411 Sales and marketing 649,275 451,612 1,138,515 2,051,494 Legal and consulting 164,619 207,685 311,576 518,102 Salaries and benefits 2,234,411 982,794 6,723,019 4,406,251 Share-based compensation [note 12] 42,218 290,206 350,504 724,655 General and administrative 424,579 131,884 1,110,407 1,031,374 Depreciation and amortization 21,720 9,327 58,656 175,262 Foreign exchange loss (5,173) (48,736) 6,524 19,467 Interest and other expense 103,196 49,661 139,156 148,667 Total operating expenses 8,334,542 5,522,311 20,321,789 18,794,683 Income before income taxes 1,280,998 1,165,509 733,807 1,219,751 Income tax expense 538,996 162,312 703,964 150,528 NET INCOME FROM CONTINUING OPERATIONS 742,002 1,003,197 29,843 1,069,223 Other comprehensive income (loss) Item that may be reclassified subsequently to income: Exchange gain (loss) on translation of foreign operations 390,073 3,465 (39,595) 102,207 Total other comprehensive income (loss) 390,073 3,465 (39,595) 102,207 Net loss from discontinued operations [note 14] (3,689) (1,826,306) (1,384,368) (3,794,518) Gain from sale of business [note 14] - - 217,029 - COMPREHENSIVE INCOME (LOSS) 1,128,386 (819,644) (1,177,091) (2,623,088) Net loss attributable to: Equity owners of the Company 490,063 (270,291) (1,184,090) (1,403,242) Non-controliling interests [note 13] 248,250 (552,818) 46,594 (1,322,053) 738,313 (823,109) (1,137,496) (2,725,295) Net gain (loss) per share - basic and diluted Continuing operations 0.02 0.02 0.00 0.03 Discontinued operations 0.00 (0.04) (0.03) (0.09) Weighted average number of shares outstanding - basic and diluted 45,079,298 43,490,042 47,961,477 43,051,212 The accompanying notes are an integral part of these condensed consolidated interim financial statements. QYOU Media Inc. Condensed consolidated interim statements of changes in shareholders' equity For the three months ended March 31, 2025 and 2024 [unaudited] [expressed in Canadian dollars] Common shares # Share capital $ Warrants $ Share-based payment reserve $ Non-controlling interests $ Foreign exchange translation reserve $ Accumulated deficit $ Total $ Balance, December 31, 2023 40,759,025 52,310,553 4,464,929 12,507,047 (919,269) (34,310) (66,444,074) 1,884,876 Issuance of common shares and warrants, net of issuance costs [note 11] 2,191,631 1,198,432 392,058 41,026 - - - 1,631,516 Share-based compensation [note 12] - - - 2,285,234 - - - 2,285,234 Restricted share units redeemed [note 12] 463,888 1,586,394 - (1,586,394) - - - - Compensation options and warrants expired [note 12] - - (424,049) 424,049 - - - - Divesture of Chatterbox Shares [note 13] - - - (820,767) 1,568,037 - - 747,270 Comprehensive loss - - - - (1,666,867) 156,127 (6,286,954) (7,797,694) Balance, December 31 2024 43,414,544 55,095,379 4,432,938 12,850,195 (1,018,099.00) 121,817 (72,731,028) (1,248,798) Issuance of common shares and warrants, net of issuance costs [note 11] 7,165,556 1,691,309 414,362 51,681 - - - 2,157,352 Share-based compensation [note 12] - - - 350,504 - - - 350,504 Restricted share units redeemed [note 12] 1,323,610 863,866 - (863,866) - - - - Divesture of Chatterbox Shares [note 13] - - - (321,287) 1,081,910 - - 760,623 Comprehensive loss - - - - 46,594 (39,595) (1,184,090) (1,177,091) Balance, September 30, 2025 51,903,710 57,650,554 4,847,300 12,067,227 110,405 82,222 (73,915,118) 842,590 The accompanying notes are an integral part of these condensed consolidated interim financial statements. - 3 - Condensed consolidated interim statements of cash flows [unaudited] [expressed in Canadian dollars] For the nine months ended September 30, 2025 $ 2024 $ Operating activities Net income from continuing operations 29,843 1,069,223 Adjustments to reconcile net loss to net cash used in operating activities: Unrealized foreign exchange gain (loss) 7,670 (313,353) Depreciation and amortization 58,656 175,262 Share-based compensation 350,504 724,655 Income tax expense 703,964 150,528 Interest expense 139,156 148,667 Accrued and accretion interest from borrowings [note 9] 9,025 - 1,298,818 1,954,982 Changes in non-cash working capital items Trade receivables (194,821) (3,010,274) Other receivables (74,489) 845,061 Prepaid expenses (1,122,664) (140,502) Security deposit 3,618 (2,601) Trade and other payables 83,698 1,672,887 Deferred revenue 642,466 73,140 Cash provided by (used in) operating activities 636,626 1,392,693 Investing activities Capitalized programming asset [note 5] (69,825) (219,682) Purchase of property and equipment [note 4] (2,150) (33,520) Capitalized intangible asset [note 6] - (742,634) Contingent consideration payment [note 10] (516,319) (241,346) Gross proceeds from sale of subsidiary shares 760,623 - Gross proceeds from sale of business [note 14] 512,293 - Cash provided by (used in) investing activities 684,622 (1,237,182) Financing activities Advanced proceeds from subsidiary IPO [note 20] 2,275,080 - Repayment of lease obligation [note 8] (55,299) (180,714) Proceeds from borrowings [note 9] 721,964 933,027 Repayment of borrowings [note 9] (1,653,271) (1,558) Interest payments from borrowings [note 9] (424,808) - Proceeds from Revolving credit facility - 5,002,203 Repayment of Revolving credit facility - (4,913,726) Issuance of shares and warrants, net of issuance costs [note 11] 2,157,352 1,700,761 Cash provided by financing activities 3,021,018 2,539,993 Cash from continuing operations 4,342,266 2,695,504 Cash used in discontinued operations (1,183,225) (2,558,330) Effect of foreign exchange on cash 24,705 480 Cash, beginning of year 946,784 736,713 Cash, end of year 4,130,530 874,367 The accompanying notes are an integral part of these condensed consolidated interim financial statements. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] BUSINESS AND ORGANIZATION QYOU Media Inc. ("QYOU" or the "Company") was incorporated pursuant to the Business Corporations Act (Alberta) on July 30, 1993 under the name "575161 Alberta Inc.". The registered and head office of the Company is 154 University Avenue, Suite 601, Toronto, ON M5H 3Y9. The Company is a global media company that, through its subsidiaries, curate, produce and distributes content created by social media stars and digital content creators. The Company has the following subsidiaries: Ownership percentage Ownership percentage Entity name Country September 30, 2025 December 31, 2024 % % QYOU Media Inc. Canada 100 100 QYOU Productions Inc. Canada 100 100 QYOU Limited Ireland 100 100 QYOUTV International Limited Ireland 100 100 QYOU USA Inc. USA 100 100 QYOU Media India Private Ltd. India 88 88 Chatterbox Technologies Ltd. India 68 81 Maxamtech Digital Ventures Private Limited India 51 51 During the nine months ended September 30, 2025, the Company sold the channel business of QYOU Media India Private Ltd. ("QYOU India") including the brand associated with its main QYOU India channel. The Company retained ownership of the QYOU India legal entity and its digital channels. As QYOU India's channel business and the Maxamtech subsidiary represented separate major lines of business, the results of the discontinued operations have been presented separately from continuing operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations . See Note 14 for additional information. 2025 Reverse Stock Split (applied retrospectively) On November 24, 2025, QYOU Media Inc. effected a twelve-for-one (12-for-1) reverse stock split of its common shares (the "2025 Reverse Split"). Accordingly, all shareholders of record at the opening of business on November 24, 2025, received one used and outstanding common share of QYOU Media Inc. in exchange for twelve outstanding common shares. No fractional shares were issued in connection with the 2025 Reverse Split. Any fractional shares resulting from the 2025 Reverse Split were rounded to the nearest whole number of common shares, with any fractional interest of 0.5 or greater rounded up to one whole common share. Effective on the date of the 2025 Reverse Split, the exercise price and number of common shares issuable upon the exercise of outstanding stock options, warrants, and other convertible securities were proportionately adjusted to reflect the reverse split. All information with respect to outstanding common shares and other securities of QYOU Media Inc., including earnings (loss) per share, in the current and comparative periods presented herein gives effect to the 2025 Reverse Split. Going Concern Uncertainty These consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. The application of the going concern assumption is dependent on the Company's ability to generate future profitable operations or obtain necessary financing. During the period, the Company completed a non-brokered private placement. Subsequent to the period, Chatterbox completed its initial public offering on October 3, 2025 to obtain additional funding. In addition, the Company completed the sale of the Channel business of QYOU India. See Note 14 for additional information NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] The Company has achieved profitable operations, reporting net income from continuing operations of $742,002 for the three months ended September 30, 2025 and $29,843 year-to-date. As at September 30, 2025, the Company had an accumulated deficit of $73,915,118 (December 31, 2024 - deficit of $72,731,028). For the nine months ended September 30, 2025, the Company had a positive working capital of $22,228 (December 31, 2024 - deficit of $2,510,378). Despite recent profitability, the Company's ability to sustain positive cash flows from operations and continued profitability in future periods remains uncertain, which may cast significant doubt upon the Company's ability to continue as a going concern. BASIS OF PRESENTATION Statement of Compliance These unaudited condensed consolidated interim financial statements ("financial statements") have been prepared by management using the same accounting policies and methods as those used in the Company's audited consolidated financial statements for the years ended December 31, 2024 and 2023. These financial statements have been prepared in compliance with IAS 34 - Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). Accordingly, certain disclosures normally included in annual financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") have been omitted or condensed. These financial statements should be read in conjunction with the Company's audited consolidated financial statements for the years ended December 31, 2024 and 2023. The timely preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies, if any, as at the date of the financial statements, and the reported amounts of revenue and expenses during the nine months ended September 30, 2025. By their nature, estimates are subject to measurement uncertainty and changes in such estimates in future periods could require a material change in the financial statements. These financial statements were approved and authorized for issuance by the Board of Directors of the Company on November 24, 2025. Functional Currency and Presentation currency These financial statements are presented in Canadian dollars, which is the functional currency of QYOU Media Inc. The functional currencies of the Company's subsidiaries are as follows: Name of Subsidiary Jurisdiction of incorporation Functional currency QYOU Media Inc. Canada Canadian dollar QYOU Productions Inc. Canada Canadian dollar QYOU Limited Ireland Euro QYOUTV International Limited Ireland Euro QYOU USA Inc. USA US dollar QYOU Media India Private Ltd. India Indian rupee Chatterbox Technologies Ltd. India Indian rupee Maxamtech Digital Ventures Private Limited India Indian rupee Basis of Consolidation The interim financial statements incorporate the financial information of the Company and the subsidiaries over which the Company has control. An entity is controlled when the Company has the ability to direct the relevant activities of the entity, has exposure or rights to variable returns from its involvement with the entity and is able to use its power over the entity to affect its returns from the entity. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control as prescribed by IFRS 10 - Consolidated Financial Statements. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the period are included in the unaudited consolidated interim statements of operations and comprehensive NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] income from the date the Company gains control until the date when the Company ceases to control the subsidiary. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company's accounting policies. All intercompany assets and liabilities, equity, income, expenses and cash flows are eliminated in full on consolidation. [d] Use of Estimates and Judgments The preparation of these financial statements in conformity with IFRS requires management to make estimates and judgments that affect the application of accounting policies and the reported amounts of assets and liabilities, consistent with those disclosed in the audited consolidated financial statements for the years ended December 31, 2024 and 2023 and described in these financial statements. Actual results could differ materially from the amounts included in the financial statements. Estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. SUMMARY OF MATERIAL ACCOUNTING POLICIES The material accounting policies used in preparing these financial statements are unchanged from those disclosed in the Company's audited consolidated financial statements for the years ended December 31, 2024 and 2023, and have been applied consistently to all periods presented in these financial statements. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] PROPERTY AND EQUIPMENT The Company's property and equipment are as follows: Computer hardware and equipment Furniture and fixtures Total Cost $ $ $ As at December 31, 2023 407,529 379,834 787,363 Additions 16,873 42,540 59,413 Foreign exchange 26,527 10,061 36,588 As at December 31, 2024 450,929 432,435 883,364 Additions 1,215 935 2,150 Disposed on sale of business [note 14] (23,879) - (23,879) Foreign exchange (10,003) (11,764) (21,767) As at September 30, 2025 418,262 421,606 839,868 Accumulated depreciation Computer hardware and equipment $ Furniture and fixtures $ Total $ As at December 31, 2023 322,383 302,853 625,236 Depreciation 65,598 51,601 117,199 Foreign exchange 21,414 5,690 27,104 As at December 31, 2024 409,395 360,144 769,539 Depreciation 10,107 8,249 18,356 Disposed on sale of business [note 14] (5,370) - (5,370) Foreign exchange (9,503) (13,388) (22,891) As at September 30, 2025 404,629 355,005 759,634 Net book value Computer hardware and equipment $ Furniture and fixtures $ Total $ As at December 31, 2024 41,534 72,291 113,825 As at September 30, 2025 13,633 66,601 80,234 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] CAPITALIZED PROGRAMMING ASSET The Company's capitalized programming asset are as follows: Cost $ As at December 31, 2023 3,118,863 Additions Original programming asset - Licensed content asset 364,031 Effects of foreign exchange 254,738 As at December 31, 2024 3,737,632 Additions Original programming asset 62,986 Licensed content asset 6,839 Disposed on sale of business [note 14] (3,807,457) Effects of foreign exchange - As at September 30, 2025 - Accumulated amortization $ As at December 31, 2023 Amortization 1,794,106 Original programming asset 611,249 Licensed content asset 819,489 Effects of foreign exchange 176,856 As at December 31, 2024 Amortization 3,401,700 Original programming asset 87,349 Licensed content asset 149,744 Disposed on sale of business [note 14] (3,638,793) Effects of foreign exchange - As at September 30, 2025 - Net book value $ As at December 31, 2024 335,932 As at September 30, 2025 - NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] INTANGIBLE ASSETS A summary of the Company's intangible assets are as follows: Brand Chatterbox $ Customer relationships $ Platform $ Total $ As at December 31, 2023 594,024 286,025 389,633 1,269,682 Additions - - 761,888 761,888 Effects of foreign exchange 19,156 9,224 55,303 83,683 As at December 31, 2024 613,180 295,249 1,206,824 2,115,253 Effects of foreign exchange (27,836) (13,403) (54,232) (95,471) As at September 30, 2025 585,344 281,846 1,152,592 2,019,782 Brand Chatterbox Customer relationships Platform Total Accumulated amortization $ $ $ $ As at December 31, 2023 - 121,538 25,987 147,525 Amortization - 49,320 235,503 284,823 Impairment of intangible asset - - 976,768 976,768 Effects of foreign exchange - 7,928 (31,434) (23,506) As at December 31, 2024 - 178,786 1,206,824 1,385,610 Amortization - 35,118 - 35,118 Effects of foreign exchange - (11,897) (54,232) (66,129) As at September 30, 2025 - 202,007 1,152,592 1,354,599 Brand Chatterbox Customer Platform Total relationships Net book value $ $ $ $ As at December 31, 2024 613,180 116,463 - 729,643 As at September 30, 2025 585,344 79,839 - 665,183 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] RIGHT-OF-USE ASSETS The Company has one office lease maturing in one year. The Company's right-of-use assets are as follows: $ Balance - December 31, 2023 278,056 Depreciation (199,477) Effects of foreign exchange 10,552 Balance - December 31, 2024 89,131 Depreciation (42,895) Effects of foreign exchange (4,639) Balance - September 30, 2025 41,596 8. LEASE LIABILITIES The Company's lease liabilities are as follows: $ Balance - December 31, 2023 313,306 Add: Interest expense 23,131 Less: Lease payments (242,081) Effects of foreign exchange 12,045 Balance - December 31, 2024 106,401 Add: Interest expense 8,283 Less: Lease payments (55,299) Effects of foreign exchange (6,653) Balance - September 30, 2025 52,732 Current 52,732 Non-current - During the nine months ended September 30, 2025, the Company entered into no new lease agreements (2024 - two lease agreements). NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] BORROWINGS U.S. Small Business Administration Loan On May 20, 2020 ("date of advance"), the Company received a loan for gross proceeds of $206,700 (USD $150,000) from the U.S. Small Business Administration under the Economic Injury Disaster Loan program. The loan bears an annual interest rate of 3.75%. Monthly repayments of $996 (USD $731) commenced 12 months from the date of advance and the loan matures 30 years from the date of advance. The benefit of the government loan received at below market rate of interest is treated as a government grant. The loan was recognized at fair value of $58,955 using the Company's incremental borrowing rate of 17%. The difference between the initial carrying amount and proceeds received is the value of the grant of $147,745. The Company recognized in income the value of the grant as it incurred the related expenses for which the grant was intended to compensate. The full value of the grant had been recognized in income during the year ended June 30, 2020 as a deduction of the related operating expenses. Maximcash Commercial Loan On October 16, 2024 ("date of advance"), the Company received a commercial loan for gross proceeds of $1,279,712 ($970,000 USD) from Maxamcash Solutions. The loan bears an annual interest rate of 48.06%. The term of the loan is 12 months from the closing date. The facility was recognized as a financial liability at amortized cost. In addition, the Company incurred Facility Agreement costs of $40,565 ($30,000 USD) to obtain the facility. In April 2025, the Company received a second commercial loan from Maximcash Solutions for gross proceeds of $709,740 ($518,824 USD). This loan also bears an annual interest rate of 48.06% and has a term of 12 months. Financing fees of $44,938 ($32,850 USD) were incurred in connection with this facility. Shareholder Loans Between July 1 and September 23, 2024, the Company received loans for gross proceeds of $903,819 from shareholders. The loans bear a monthly interest rate of 1% of the principal amount in arrears and are due to be repaid in full between December 1, 2024 and March 1, 2025. During the period, the loans were repaid in full. The balance outstanding as at September 30, 2025 is as follows: U.S. Small Business Administration Loan $ Maximcash Commercial Loan $ Shareholder Loans $ Total $ Balance - December 31, 2023 60,607 - - 60,607 Additional borrowings - 1,279,712 903,819 2,183,531 Accrued interest 12,697 - - 12,697 Interest and accretion expense - 142,508 37,644 180,152 Principal repayments (20,030) (150,849) (244,767) (415,646) Interest repayments - (149,756) (37,644) (187,400) Effects of foreign exchange 36,641 81,130 60,627 178,398 Balance - December 31, 2024 89,915 1,202,745 719,679 2,012,339 Additional borrowings - 721,964 - 721,964 Accrued interest 9,025 - - 9,025 Interest and accretion expense - 417,984 17,226 435,210 Principal repayments (14,696) (933,795) (704,780) (1,653,271) Interest repayments - (407,582) (17,226) (424,808) Effects of foreign exchange 8,243 (25,817) (14,899) (32,473) Balance - September 30, 2025 92,487 975,499 - 1,067,986 Current 44,572 975,499 - 1,020,071 Non-current 47,915 - - 47,915 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] CONTINGENT CONSIDERATION During the nine months ended September 30, 2025, the Company paid $516,319 of the outstanding final contingent consideration of $714,461 (42,502,158 INR). The contingent consideration as at September 30, 2025: $ Balance - December 31, 2023 1,029,912 Loss on remeasurement of contingent consideration 224,957 Payment of contingent consideration (540,408) Effects of foreign exchange - Balance - December 31, 2024 714,461 Payment of contingent consideration (516,319) Effects of foreign exchange - Balance - September 30, 2025 198,142 Current 198,142 Non-current - 11. SHARE CAPITAL Compensation options amount Common shares Share capital Warrants Warrants Compensation options within share-based payment reserve # $ # $ # $ Balance, December 31, 2023 40,759,025 52,310,553 45,640,000 4,464,929 306,489 383,621 Issuance of common shares and warrants, net of issuance costs [b] 2,191,631 1,198,432 26,299,571 392,058 149,164 41,026 RSUs redeemed [a] 463,888 1,586,394 - - - - Compensation options and warrants expired - - (15,640,000) (424,049) (165,192) (186,804) Balance, December 31, 2024 43,414,544 55,095,379 56,299,571 4,432,938 290,461 237,843 Issuance of common shares and warrants, net of issuance costs [d] [e] 7,165,556 1,691,309 64,490,001 414,362 241,767 51,681 RSUs redeemed [c] 1,323,610 863,866 - - - - Balance, September 30, 2025 51,903,710 57,650,554 120,789,572 4,847,300 532,228 289,524 During the year ended December 31, 2024, 463,888 restricted share units were redeemed for 463,888 common shares. On January 26, 2024, the Company completed a non-brokered private placement and issued a total of 2,191,631 units at a price of $0.07 per unit. The total gross proceeds from the issuance was $1,840,970. Each Unit is comprised of one common share of the Company and one common share at a price of $0.10 (a "10 Cent Warrant"). Each 10 Cent Warrant is exercisable to purchase one common share in the capital of the Company at a price of $0.10 until January 26, 2026. The fair value of each 10 Cent Warrant is $0.02 per warrant, calculated using the Black-Scholes options pricing model with a market price per common share of $0.07 on the date of grant, a risk-free interest rate of 4.06%, an expected annualized volatility of 75.71% and expected dividend yield of 0%. Total transaction costs consisted of $37,584 in cash and issuance of 159,124 compensation options to the agents in connection with the transaction. Each compensation option is exercisable into one common share until January 26, 2026 at a price of $0.10. Total fair value of the compensation options was determined to be $41,026. The fair value of the compensation options was determined using the Black-Scholes options pricing model with a market price per common share of $0.07 on the date of grant, a risk-free interest rate of 4.06%, an expected annualized volatility of 75.71% and expected dividend yield of 0%. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] During the nine months ended September 30, 2025, 1,323,610 restricted share units were redeemed for 1,323,610 common shares. On March 19, 2025, the Company completed a non-brokered private placement and issued a total of 5,082,222 units at a price of $0.03 per unit. The total gross proceeds from the issuance was $1,829,600. Each Unit is comprised of one common share of the Company and three-quarters of one common share purchase warrant exercisable at a price of $0.06 (a "6 Cent Warrant"). Each 6 Cent Warrant is exercisable to purchase three-quarters of one common share in the capital of the Company at a price of $0.06 until March 19, 2027. The fair value of each 6 Cent Warrant is $0.01 per warrant, calculated using the Black-Scholes options pricing model with a market price per common share of $0.03 on the date of grant, a risk-free interest rate of 2.61%, an expected annualized volatility of 102.96% and expected dividend yield of 0%. Total transaction costs consisted of $296,702 in cash and issuance of 159,124 compensation options to the agents in connection with the transaction. Each compensation option is exercisable into one common share until March 19, 2027 at a price of $0.06. Total fair value of the compensation options was determined to be $21,929 using the Black-Scholes options pricing model with a market price per common share of $0.03 on the date of grant, a risk-free interest rate of 2.61%, an expected annualized volatility of 102.96% and expected dividend yield of 0%. On September 12, 2025, the Company completed a non-brokered private placement and issued a total of 2,083,334units at a price of $0.03 per unit. The total gross proceeds from the issuance was $750,000. Each Unit is comprised of one common share of the Company and three-quarters of one common share purchase warrant exercisable at a price of $0.06 (a "6 Cent Warrant"). Each 6 Cent Warrant is exercisable to purchase three-quarters of one common share in the capital of the Company at a price of $0.06 until September 12, 2027. The fair value of each 6 Cent Warrant is $0.01 per warrant, calculated using the Black-Scholes options pricing model with a market price per common share of $0.03 on the date of grant, a risk-free interest rate of 2.50%, an expected annualized volatility of 108.67% and expected dividend yield of 0%. Total transaction costs consisted of $201,132 in cash and issuance of 82,643 compensation options to the agents in connection with the transaction. Each compensation option is exercisable into one unit until September 12, 2027 at a price of $0.06. Total fair value of the compensation options was determined to be $29,751 using the Black-Scholes options pricing model with a market price per common share of $0.03 on the date of grant, a risk-free interest rate of 2.50%, an expected annualized volatility of 108.67% and expected dividend yield of 0%. The following is a summary of the Company's warrants outstanding as at September 30, 2025: Expiry Date Exercise Price Number Outstanding October 19, 2025 $ 0.10 # 2,500,000 January 26, 2026 0.10 2,191,631 March 19, 2027 0.06 2,858,750 September 12, 2027 0.06 1,171,875 0.08 8,722,256 The following is a summary of the Company's warrants outstanding as at December 31, 2024: Expiry Date Exercise Price Number Outstanding October 19, 2025 $ 0.10 # 2,500,000 Janauary 26 2025 0.10 2,191,631 0.10 4,691,631 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] The following is a summary of the Company's compensation options outstanding as at September 30, 2025: Expiry Date Exercise Price Number Outstanding October 19, 2025 $ 0.10 # 141,297 January 26, 2026 0.10 149,164 March 19, 2027 0.06 159,124 September 12, 2027* 0.06 82,643 0.08 532,228 * The 82,643 compensation options issued on September 12, 2025 are exercisable into units, with each unit consisting of one common share and one 6 Cent Warrant, exercisable at $0.06 until September 12, 2027. The following is a summary of the Company's compensation options outstanding as at December 31, 2024: Expiry Date Exercise Price Number Outstanding October 19, 2025 $ 0.10 # 141,297 Janauary 26 2025 0.10 149,164 0.10 290,461 12. SHARE-BASED COMPENSATION The Company has established a share option plan and restricted share unit ("RSU") plan for directors, officers, employees, and consultants of the Company. The Company's Board of Directors determines, among other things, the eligibility of individuals to participate in these plans and the term, vesting periods, and the exercise price of share options granted to individuals under the share option plan. Each share option converts into one common share of the Company on exercise and on receipt of exercise price. Each RSU converts into one common share of the Company on the date of vesting at $nil exercise price. Share options may be exercised at any time from the date of vesting to the date of their expiry. Share options Changes in the number of share options during the period ended September 30, 2025: Number of options Weighted average exercise price # $ Outstanding as at December 31, 2023 3,444,842 0.18 Granted 59,167 0.04 Forfeited (27,447) 0.12 Expired (387,152) 0.07 Outstanding as at December 31, 2024 3,089,409 0.19 Forfeited (10,417) 0.18 Expired (635,242) 0.05 Outstanding as at September 30, 2025 2,443,750 0.19 Excercisble as at September 30, 2025 2,140,746 0.24 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] The following table is a summary of the Company's share options outstanding as at September 30, 2025: Options outstanding Options exercisable Weighted average remaining price Number outstanding contractual life [years] Exercise price Number exercisable $ # # $ # 0.04 59,167 3.84 0.04 17,262 0.13 686,667 2.28 0.13 457,763 0.18 362,500 0.32 0.18 362,500 0.21 145,833 1.52 0.21 124,541 0.28 285,417 1.15 0.28 274,514 0.30 712,500 0.42 0.30 712,500 0.36 166,666 0.70 0.36 166,666 0.37 25,000 0.66 0.37 25,000 0.19 2,443,750 1.18 0.24 2,140,746 The following table is a summary of the Company's share options outstanding as at December 31, 2024: Options outstanding Options exercisable Weighted average remaining rcise price Number outstanding contractual life [years] Exercise price Number exercisable $ # # $ # 0.04 59,167 4.84 0.04 6,169 0.05 635,242 0.83 0.05 635,242 0.13 690,833 3.28 0.13 331,014 0.18 362,500 1.32 0.18 354,948 0.21 152,083 2.52 0.21 101,368 0.28 285,417 2.15 0.28 225,288 0.30 712,500 1.42 0.30 682,594 0.36 166,667 1.70 0.36 145,838 0.37 25,000 1.66 0.37 22,396 0.19 3,089,409 1.90 0.19 2,504,858 RSUs Changes in the number of RSUs during the period ended September 30, 2025 were as follows: Number of RSUs Number exercisable # # Outstanding as at December 31, 2023 647,222 - Vested - 463,889 Granted 1,291,667 - Redeemed (463,889) (463,889) Outstanding as at December 31, 2024 1,475,000 - Vested - 1,323,610 Redeemed (1,323,610) (1,323,610) Outstanding as at September 30, 2025 151,390 - NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] During the periods ended September 30, 2025 and December 31, 2024, the Company recognized the share-based compensation expense associated with share options, RSUs issued under the share options and RSU plans and subsidiary shares to the Company Officer as follows: For the three and nine months ended September 30, 2025 $ 2024 $ 2025 $ 2024 $ Share options 17,966 114,336 79,582 436,196 RSUs 24,252 175,870 211,603 288,459 Subsidiary shares to related party - - 59,319 - Share-based compensation expense 42,218 290,206 350,504 724,655 NON-CONTROLLING INTEREST The Company has an 88% (December 31, 2024 - 88%) ownership interest in QYOU India, an 68% (December 31, 2024 - 81%) ownership interest in Chatterbox and an 51% (December 31, 2024 - 51%) ownership interest in Maxamtech. Reconciliation of non-controlling interest is as follows: QYOU India $ Maxamtech $ Chatterbox $ Total $ Balance - December 31, 2023 (755,197) (164,072) - (919,269) Share of net loss for the period (490,604) (1,176,263) - (1,666,867) Divesture of Chatterbox Shares - - 1,568,037 1,568,037 Balance - December 31, 2024 (1,245,801) (1,340,335) 1,568,037 (1,018,099) Share of net income (loss) for the period (218,733) (2,967) 268,294 46,594 Divesture of Chatterbox Shares - - 1,081,910 1,081,910 Balance - September 30, 2025 (1,464,534) (1,343,302) 2,918,241 110,405 The following is a summary of the stand-alone financial results for QYou India, Maxamtech and Chatterbox: As at September 30, 2025 As at December 31, 2024 QYOU India $ Maxamtech $ Chatterbox $ QYOU India $ Maxamtech $ Chatterbox $ Current assets 500,383 142,589 8,339,819 2,286,878 158,813 4,033,439 Non-current assets 20,973 15,352 765,931 548,074 942,844 109,355 Current liabilities 882,691 302,969 3,427,502 2,096,369 324,582 2,279,678 Non-Current liabilities - - 72,552 - - 41,592 Revenue (three months ended) - - 3,281,672 1,456,676 60,809 - Revenue (nine months ended) 364,094 - 7,851,224 2,864,922 313,009 - Net profit (loss) (three months ended) 4,231 - 636,382 (1,560,872) (314,393) - Net profit (loss) (nine months ended) (1,376,826) (5,994) 780,354 (2,299,187) (1,006,802) - NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] DISCONTINUED OPERATIONS QYOU India Channel Business On March 31, 2025, the Company sold its QYOU India Channel Business, and the results of operations have been classified separately as discontinued operations. Net loss from discontinued operations are as follows: For the three and nine months months ended September 30, 2025 $ 2024 $ 2025 $ 2024 $ REVENUE - 1,015,302 364,094 3,880,224 OPERATING EXPENSES Content and productions costs (52,220) 1,055,887 991,086 3,405,404 Sales and marketing - (191,315) (45,927) -69,940 Legal and consulting 6,085 17,329 6,713 49,026 Salaries and benefits - 1,039,547 463,172 1,710,527 General and administrative 41,001 190,799 138,430 317,729 Depreciation and amortization 560 295,096 201,143 988,250 Foreign exchange loss - 26,438 16,848 9,235 Interest and other expense 343 25,056 (30,545) 18,439 Total operating expenses (4,231) 2,458,837 1,740,920 6,428,670 Loss before income taxes 4,231 (1,443,535) (1,376,826) (2,548,446) Income tax expense - - - 12,037 NET LOSS FROM DISCONTINUED OPERATIONS 4,231 (1,443,535) (1,376,826) (2,560,483) The effect of the disposal of the Channel Business as at September 30, 2025 is as follows: $ Sale Consideration 755,981 Trade receivables (256,429) Other receivables (838,157) Property and equipment (18,509) Capitalized programming asset (307,999) Less: Assets disposed (1,421,094) Trade and other payables 882,142 Liabilities derecognized 882,142 Net assets disposed (538,952) Gain from sale of business 217,029 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] During the nine months ended September 30, 2025, the Company received $512,293 of the total sale consideration of $755,981. As at September 30, 2025, the remaining balance of $246,688 is outstanding and is included in other receivables. Net cash flows used in discontinued operations are as follows: For the nine months ended September 30, 2025 $ 2024 $ Cash used in operating activities (1,177,231) (1,324,295) Cash used in investing activities - - Cash from (used in) financing activities - - Cash used in discontinued operations (1,177,231) (1,324,295) Maxamtech During the year ended December 31, 2024, the Company discontinued the operations of Maxamtech. The subsidiary was not sold nor classified as held for sale. Rather, the operations were formally ceased during the year as part of the Company's strategic realignment. Consequently, information presented for discontinued operations in 2024 includes results from January 1, 2024 to December 31, 2024 only. Net loss from discontinued operations are as follows: For the three and nine months months ended September 30, 2025 $ 2024 $ 2025 $ 2024 $ REVENUE - 15,392 - 328,402 OPERATING EXPENSES Content and productions costs - 4,721 - (104,450) Sales and marketing - 45,513 - 948,685 Legal and consulting - - - 3,664 Salaries and benefits - 172,856 5,363 473,726 General and administrative - 68,785 631 (10,056) Depreciation and amortization - 60,205 - 168,295 Foreign exchange loss - 70,397 - 70,408 Interest and other expense - (34,781) - 12,165 Total operating expenses - 387,696 5,994 1,562,437 Loss before income taxes - (372,304) (5,994) (1,234,035) Income tax expense - - - - NET LOSS FROM DISCONTINUED OPERATIONS - (372,304) (5,994) (1,234,035) COMPREHENSIVE LOSS - (372,304) (5,994) (1,234,035) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] Net cash flows used in discontinued operations are as follows: For the nine months ended September 30, 2025 $ 2024 $ Cash used in operating activities (5,994) (1,234,035) Cash used in investing activities - - Cash from (used in) financing activities - - Cash used in discontinued operations (5,994) (1,234,035) 15. SEGMENT INFORMATION Reportable segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, with appropriate aggregation. The chief operating decision maker is the CEO who is responsible for allocating resources, assessing the performance of the reportable segment and making key strategic decisions. The Company operates in a single segment, being the distribution of curated media content. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. The Company operates in three geographical areas, being Canada, United States of America, and India. Revenue and assets by geography are presented below: As at and for three and nine months ended September, 2025 Canada USA India Total Revenue (three months ending September 30, 2025) 201,782 6,132,086 3,281,672 9,615,540 Revenue (nine months ending September 30, 2025) 201,782 13,002,590 7,851,224 21,055,596 Current assets 349,029 5,713,198 8,982,791 15,045,018 Non-current assets 41,600 24,421 802,256 868,277 As at and for three and nine months ended September 30, 2024 Canada USA India Total Revenue (three months ending September 30, 2024) 7,605 4,042,816 2,637,399 6,687,820 Revenue (nine months ending September 30, 2024) 94,712 13,467,632 6,452,090 20,014,434 Current assets 149,438 4,383,185 5,368,442 9,901,065 Non-current assets 2,353,795 25,664 645,871 3,025,330 As at September 30, 2025, one customer (September 30, 2024 - one customer) represented 10% or more of total revenue. As at September 30, 2025, one customer generated $4,246,533 or 20% of total revenue (September 30, 2024 - two customers generated $6,415,598 or 26%) and had outstanding $1,472,629 or 21% of total account receivables (September 30, 2024 - two customers had outstanding $2,151,779 or 33%). CONTINGENCIES In the ordinary course of business, from time to time the Company is involved in various claims related to operations, rights, commercial, employment or other claims. Although such matters cannot be predicted with certainty, management does not consider the Company's exposure to these claims to be material to these financial statements. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] RELATED PARTY TRANSACTIONS Key management personnel and directors include the Company's CEO, CFO, executives and members of the Board of Directors. The compensation paid or payable to key management and directors comprised of the following: For the nine months ended September 30, 2025 $ 2024 $ Salaries, benefits, commissions and consulting fees 2,534,107 2,141,729 Share-based payments 167,583 297,430 2,701,690 2,439,159 Included in trade and other payables is $315,963 (September 30, 2024 - $220,020) owing to executives for bonuses, expense reimbursement and sales commissions. The amounts owing to the executives are unsecured, non-interest bearing and due on demand. FINANCIAL INSTRUMENTS Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from deposits with banks and outstanding receivables. The Company trades only with recognized, creditworthy third parties. The Company performs credit checks for all significant customers who wish to trade on credit terms. As at September 30, 2025, one customer represented 21% (December 31, 2024 - 2 customers represented 31%) of the outstanding trade receivable balance. As at September 30, 2025, the Company recorded a provision of $104,752 for expected credit loss (December 31, 2024 - $251,619). The Company does not hold any collateral as security but mitigates this risk by dealing only with what management believes to be financially sound counterparties non-performance. and, accordingly, does not anticipate significant loss for The aging of trade receivables is as follows: September 30, 2025 December 31, 2024 $ $ Current 3,482,184 2,670,017 31 to 60 days 1,360,234 1,750,204 61 to 90 days 1,166,081 1,370,425 > 90 days 1,007,205 1,177,104 7,015,704 6,967,750 Less: credit loss impairment 104,752 251,619 Total trade receivables 6,910,952 6,716,131 The movement in the allowance of impairment of trade receivables during the period is as follows: $ As at December 31, 2023 116,143 Net remeasurement of loss allowance 135,476 As at December 31, 2024 251,619 Net remeasurement of loss allowance (146,867) As at September 30, 2025 104,752 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's exposure to liquidity risk is dependent on the Company's ability to raise additional financing to meet its commitments and sustain operations. The Company mitigates liquidity risk by managing working capital, cash flows and the issuance of share capital. The Company is obligated to the following contractual maturities of undiscounted cash flows as of September 30, 2025: Carrying amount Total contractual cash flows Year 1 Year 2 - 4 Year 5 and beyond $ $ $ $ $ Trade and other payables 10,730,928 10,730,928 10,730,928 - - Lease liabilities 52,732 91,724 72,653 19,071 - Contingent consideration 198,142 198,142 198,142 - - Borrowings 1,067,987 1,067,987 975,499 47,276 45,212 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: foreign currency risk, interest rate risk and other price risk. Foreign currency risk Foreign currency risk arises on financial instruments that are denominated in a currency other than the functional currency in which they are measured. The Company's primary exposure with respect to foreign currencies is from USD and Indian Rupee denominated cash and other payables. A 1% change in the foreign exchange rates would change the valuation of foreign currency denominated cash and other payable as at September 30, 2025 by approximately $14,500 (December 31, 2024 - approximately $8,000). Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to cash flow interest rate risk as at September 30, 2025 (December 31, 2024 - no significant impact with a 1% change). CAPITAL MANAGEMENT The Company defines its capital as shareholders' deficiency. The Company's objectives when managing capital are to build liquidity and shareholders' equity to ensure that strategic objectives are met. The Company makes every attempt to manage its liquidity to minimize shareholder dilution when possible. The Company policy on dividends is to retain cash to keep funds available to finance operations and growth. Capital structure is managed within guidelines approved by the Board of Directors. The Company makes adjustments to its capital structure based on changes in economic conditions and planned requirements. The Company has the ability to adjust its capital structure by issuing new equity or debt. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [unaudited] [expressed in Canadian dollars, unless otherwise noted] SUBSEQUENT EVENTS In October 2025, Chatterbox Technologies Ltd. completed its initial public offering on the BSE Limited SME platform following final approval of the Draft Red Herring Prospectus from the Registrar of Companies and the exchange. The Company received IPO proceeds of $2,275,080 on September 25, 2025, and the listing was completed on October 3, 2025. The IPO proceeds of $2,275,080 received in advance of the listing did not represent a liability requiring settlement in cash. Subsequent to the period, the balance was reclassified to equity as part of non-controlling interests ("NCI") on completion of the IPO. The Company remains the majority shareholder of Chatterbox and will continue to consolidate Chatterbox in its financial statements.

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