What changed in this filing

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Item 1. Financial Statements

2025-10-15 compared with 2025-07-15 · 620 added, 459 removed, 812 unchanged (57% of the section changed)

21 unchanged sentences

Deferred compensation for CEO

Current portion of loans payable, net

Current portion of loans payable, net of discount of $ 251,629 and $ 0

Current portion of accrued interest payable

8 unchanged sentences

$ 0.001 par value;

8 % cumulative dividend payable quarterly,$ 1,200 stated value, 5,000 shares authorized, no shares issued and outstanding at May 31, 2025 and February 28, 2025, respectively

8 % cumulative dividend payable quarterly,$ 1,200 stated value, 5,000 shares authorized, no shares issued and outstanding at August 31, 2025 and February 28, 2025, respectively

Series C Convertible, Redeemable Preferred Stock .

$ 0.001 par value;

$ 1,200 stated value, redeemable at 109.5 % , 12 % dividend, 1,000 shares authorized , 315 and 306 shares issued and outstanding at May 31, 2025 and February 28, 2025, respectively

Convertible Redeemable Preferred Stock, value

$ 1,200 stated value, redeemable at 109.5 % , 12 % dividend, 1,000 shares authorized , 343 and 306 shares issued and outstanding at August 31, 2025 and February 28, 2025, respectively

Convertible, Redeemable Preferred

Commitments and Contingencies

2 unchanged sentences

15,534,000 shares authorized;

no shares issued and outstanding at May 31, 2025 and February 28, 2025, respectively

no shares issued and outstanding at August 31, 2025 and February 28, 2025, respectively

Series G Redeemable Preferred Stock.

$ 0.001 par value;

100,000 shares authorized, no shares issued and outstanding at May 31, 2025 and February 28, 2025, respectively

100,000 shares authorized, no shares issued and outstanding at August 31, 2025 and February 28, 2025, respectively

Series E Preferred Stock, $ 0.001 par value;

4 unchanged sentences

2,513 and 2,513 shares issued and outstanding, respectively

Preferred Stock, value

Common Stock, $ 0.00001 par value;

13 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Cost of goods sold

Purchases and overhead

Depreciation and amortization

Total Cost of Goods Sold

Cost of Goods Sold

Operating expenses:

Research and development (see Note 10)

Research and development (Note 10)

General and administrative

5 unchanged sentences

( 2,613,874 )

( 5,487,827 )

( 5,447,130 )

Other income (expense), net:

2 unchanged sentences

( 1,309,929 )

( 2,713,311 )

( 2,671,032 )

Gain (loss) on settlement of debt

Total other income (expense) net

4 unchanged sentences

$ ( 3,830,953 )

$ ( 8,124,682 )

Net income (loss) per share - basic

3 unchanged sentences

11,181,863,976

16,993,556,638

10,531,991,040

Weighted average common share outstanding - diluted

1 unchanged sentence

11,181,863,976

16,993,556,638

10,531,991,040

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

11 unchanged sentences

$ ( 40,199,557 )

9,238,750,958

$ ( 132,962,427 )

$ ( 40,199,557 )

Cumulative Effect Adjustment RFV discount per adoption of ASU 2020-06 at March 1, 2024

14 unchanged sentences

$ ( 45,912,103 )

Issuance of shares, net of $ 195,656 issuance costs

1,330,610,802

Debt exchanged for common stock

Series F Preferred Shares exchanged for debt

Series B Preferred shares issued as dividend

Redemption of Series B Preferred shares

Stock based compensation

( 3,930,323 )

Balance at August 31,2024

11,706,671,042

$ ( 145,686,020 )

$ ( 45,470,363 )

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ DEFICIT

Temporary Equity

9 unchanged sentences

$ ( 49,931,012 )

Issuance of shares, net of $ 121,746 issuance costs

1,900,000,000

Debt exchanged for common shares

Series C Preferred shares issued as dividend

Stock based compensation

( 4,594,018 )

Balance at May 31, 2025

16,997,453,768

Issuance of shares, net of $ 121,746 issuance costs

$ 110,301,070

$ ( 161,090,948 )

$ ( 50,514,954 )

16,997,453,768

$ 110,301,070

$ ( 161,090,948 )

$ ( 50,514,954 )

Issuance of shares, net of $ 75,919 issuance costs

1,540,380,240

Issuance of shares, net

of issuance costs

1,540,380,240

Debt exchanged for common shares

1,250,000,000

Series C Preferred shares issued as dividend

Series C penalty shares

Redemption of Series C shares

Stock based compensation

( 4,594,018 )

Balance at May 31, 2025

Balance at August 31, 2025

19,787,834,008

9 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES:

CASH FLOWS USED IN OPERATING ACTIVITIES:

$ ( 3,830,953 )

$ ( 8,124,682 )

Adjustments to reconcile net loss to net cash used in operating activities:

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization

5 unchanged sentences

Amortization of debt discounts

(Gain) loss on settlement of debt

( 4,370,185 )

Increase in related party accrued payroll and interest

1 unchanged sentence

Accounts receivable

Prepaid expenses and deposits on inventory

Prepaid expenses

Deposit on right of use asset

1 unchanged sentence

( 1,283,861 )

( 1,823,713 )

Accounts payable and accrued expenses

Customer deposits

Operating lease liability payments

Deferred compensation for CFO

Deferred compensation for CEO

( 1,004,917 )

Current portion of deferred variable payment obligations for payments

Operating lease liabilities

Current portion of deferred variable payment obligation for payments

Accrued interest payable

2 unchanged sentences

( 6,433,906 )

CASH FLOWS FROM INVESTING ACTIVITIES:

CASH FLOWS USED IN INVESTING ACTIVITIES:

Purchase of fixed assets

Acquisition of trademarks

Convertible note receivable

Net cash used in investing activities

1 unchanged sentence

Share proceeds net of issuance costs

Proceeds on issuance of Series B shares

Redemption of Series B shares

Proceeds from loans payable

Repayment of loans payable

Proceeds on issuance of Series B shares

Redemption of Series B or Series C shares

Net cash provided by financing activities

6 unchanged sentences

Noncash investing and financing activities:

Transfer from device parts inventory to fixed assets and revenue earning devices

Exchange of notes payable and accrued interest for common shares

Transfer from device parts inventory to revenue earning devices

Cumulative Effect Adjustment RFV discount per adoption of ASU 2020-06 at March 1, 2024

Series B or C preferred shares issued as dividend

Exchange of Series F preferred stock for note payable

Exchange of note payable for common stock

Right of use asset for lease liability

Series B or Series C preferred shares issued as dividend

Discount applied to face value of the loan

Series C penalty shares issued

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

30 unchanged sentences

to continue as a going concern.

the three months ended May 31, 2025, the Company had negative cash flow from operating activities of $ 3,321,185 .

As of May 31, 2025,

the six months ended August 31, 2025, the Company had negative cash flow from operating activities of $ 5,400,554 .

As of August 31, 2025,

the Company has an accumulated deficit of $ 160,357,755 , and negative working capital of $ 6,409,368 .

32 unchanged sentences

in conjunction with the audited financial statements and notes thereto in the Company’s latest Annual Report filed with the SEC

on Form 10-K as filed on May 29, 2025.

on Form 10-K/A as filed on May 29, 2025.

The unaudited condensed consolidated financial statements include the accounts of the Company

and its wholly owned subsidiaries, Robotic Assistance Devices, Inc., Robotic Assistance Devices Group , Inc, Robotic Assistance Devices

Mobile, Inc., and Robotic Assistance Devices Residential, Inc., and Robotic Assistance Devices Lanka (Private) Limited.

All significant

intercompany accounts and transactions have been eliminated in consolidation.

The unaudited consolidated financial statements reflect

all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation

of such statements.

The results of operations for the three months ended May 31, 2025, are not necessarily indicative of the results

that may be expected for the entire year.

Mobile, Inc., and Robotic Assistance Devices Residential, Inc..

All significant intercompany accounts and transactions have been eliminated

in consolidation.

The unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which

are, in the opinion of management, necessary for a fair presentation of such statements.

The results of operations for the six months

ended August 31, 2025, are not necessarily indicative of the results that may be expected for the entire year.

order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must

4 unchanged sentences

The most significant estimates included in these consolidated financial statements are those associated with the assumptions

used to value equity instruments used in debt settlements, amendments and extensions.

used to value preferred stock and derivative liabilities.

Reclassifications

3 unchanged sentences

Concentrations

May 31, 2025 there were $ 31,538,346 of loans payable, $ 27,393,506 or 87 % of these loans to companies controlled by one individual.

February 28, 2025 there were $ 32,801,345 loans payable, $ 28,581,506 or 87 % of these loans to companies controlled by one individual.

August 31, 2025 there were $ 27,952,785 of loans payable, $ 26,666,006 or 95 % of these loans to companies controlled by one individual.

At February 28, 2025 there were $ 32,801,345 loans payable, $ 28,581,506 or 87 % of these loans to companies controlled by one individual.

Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

7 unchanged sentences

historical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances.

was an allowance of $ 115,000 and $ 140,000 provided as of May 31, 2025 and February 28, 2025, respectively.

For the three months ended

May 31, 2025, three customers account for 53 % of total accounts receivable .

For the three months ended May 31, 2024, two customers account

for 57 % of total accounts receivable.

was an allowance of $ 105,000 and $ 140,000 provided as of August 31, 2025 and February 28, 2025, respectively.

For the six months ended

August 31, 2025, two customers account for 41 % of total accounts receivable.

For the six months ended August 31, 2024, two customers

account for 55 % of total accounts receivable.

Parts Inventory

6 unchanged sentences

is taken when factors that would result in a need for an increase in the valuation, such as excess or obsolete inventory, are noted.

As of May 31, 2025, and February 28, 2025, there was a valuation reserve of $ 465,000 and $ 465,000 , respectively.

As of August 31, 2025 and February 28, 2025 there was a valuation reserve of $ 465,000 and $ 465,000 , respectively.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

16 unchanged sentences

SCHEDULE OF FIXED ASSETS STATED AT COST

equipment and software

Manufacturing

Computer equipment and software

Office equipment

Manufacturing equipment

Warehouse equipment

Leasehold improvements

5 years, the life of the lease

8 unchanged sentences

If all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned.

At May 31, 2025 and February 28, 2025, the Company had no deferred development costs.

At August 31, 2025 and February 28, 2025, the Company had no deferred development costs.

Contingencies

7 unchanged sentences

about future events and can rely heavily on estimates and assumptions.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

of Future Revenues

5 unchanged sentences

constitutes a sale of future revenues or debt:

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

the agreement purport, in substance, to be a sale

the Company have continuing involvement in the generation of cash flows due to the investor

the Company have continuing involvement in the generation of cash flows due the investor

the transaction cancellable by either party through payment of a lump sum or other transfer of assets

21 unchanged sentences

Refer to Note 4 – Revenue from Contracts with Customers for additional information.

For the three months

ended May 31, 2025, two customers accounted for 65 % of total revenue and for the three months ended May 31, 2024, two customers accounted

For the six months

ended August 31, 2025 , one customer accounted for 47 % of total revenue.

For the six months ended August 31, 2024 , two customers accounted

for 67 % of total revenue.

66 unchanged sentences

Value of Financial Instruments

Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”) provides a framework for measuring fair value

in accordance with generally accepted accounting principles.

Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”) provides a framework for measuring

fair value in accordance with generally accepted accounting principles.

Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

3 unchanged sentences

own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for

2 unchanged sentences

hierarchy under ASC Topic 820 are described as follows:

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

13 unchanged sentences

Fair Value Measurement Using

August 31, 2025

Investment at cost

4 unchanged sentences

the incentive compensation plan referred to above , the Company recorded stock based compensation of $ 0 and $ 0 for the three months ended

May 31, 2025 and May 31, 2024 with corresponding adjustments to incentive compensation plan payable.

August 31, 2025 and February 28, 2025 with corresponding adjustments to incentive compensation plan payable

carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances,

43 unchanged sentences

SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS

Three Months Ended

Device rental activities

10 unchanged sentences

a transfer of title or purchase option reasonably certain of exercise.

is a summary of our lease assets and liabilities at May 31, 2025 and February 28, 2025.

is a summary of our lease assets and liabilities at August 31, 2025 and February 28, 2025.

SCHEDULE OF LEASE ASSETS AND LIABILITIES

Classification

February 28, 2025

Operating Lease Assets

9 unchanged sentences

charges were not included in operating lease expense and were expensed in general and administrative expenses as incurred.

lease cost and rent was $ 58,219 and $ 62,013 for the three months ended May 31, 2025 and May 31, 2024, respectively.

expense and operating lease cost was $ 62,578 and $ 120,797 for the three and six months ended August 31, 2025, respectively, and $ 62,967

and $ 124,980 for the three and six months ended August 31, 2024, respectively.

December 23, 2022 the Company entered into a Simple Agreement for Future Equity (SAFE) contract to invest $ 50,000 to acquire shares of

13 unchanged sentences

SCHEDULE OF REVENUE EARNING DEVICES

February 28, 2025

Revenue earning devices

2 unchanged sentences

( 2,292,172 )

the three months ended May 31, 2025, the Company made total additions to revenue earning devices of $ 895,547 which were transfers from

During the three months ended May 31, 2024, the Company made total additions to revenue earning devices of $ 1,128,175 which

were transfers from inventory

and amortization for the years ended May 31, 2025, and May 31, 2024, are as follows:

the three and six months ended August 31, 2025 the Company made total additions to revenue earning devices of $ 864,716 and $ 1,760,263 ,

respectively, which were transfers from inventory.

During the three and six months ended August 31, 2024 the Company made total additions

to revenue earning devices of $ 602,358 and $ 1,730,533 , respectively, which were transfers from inventory.

and amortization for the six months ended August 31, 2025, and August 31, 2024, are as follows:

SCHEDULE OF DEPRECIATION AND AMORTIZATION

Depreciation and Amortization RED

Three Months Ended

Depreciation and Amortization

Cost of Goods Sold

Operating expenses

Total Depreciation and Amortization RED

Total Depreciation and Amortization of Revenue Earning Devices

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

2 unchanged sentences

SCHEDULE OF FIXED ASSETS

February 28, 2025

Machinery and equipment

8 unchanged sentences

accumulated depreciation

the three months ended May 31, 2025, the Company made additions of $ 46,071 of which $ 22,347 were transfers from inventory with remaining

the three months ended August 31, 2025, the Company made additions of $ 9,738 of which $ 9,738 were transfers from inventory.

six months ended August 31, 2025, the Company made additions of $ 40,507 of which $ 32,085 were transfers from inventory with remaining

additions of $ 8,422 .

During the three months ended May 31, 2024, the Company made additions of $ 52,177 of which $ 33,045 were transfers

During the three months ended August 31, 2024, the Company made additions of $ 22,097 of which $ 17,505 were transfers

from inventory with remaining additions of $ 4,592 .

and amortization for the years ended May 31, 2025, and May 31, 2024, are as follows:

During the six months ended August 31, 2024, the Company made additions of $ 74,274

of which $ 50,550 were transfers from inventory with remaining additions of $ 23,724 .

and amortization for the six months ended August 31, 2025, and August 31, 2024, are as follows:

SCHEDULE OF DEPRECIATION AND AMORTIZATION IN OPERATING EXPENSES

and Amortization

earning devices

Depreciation and Amortization

Three Months Ended

Revenue earning devices

Total Depreciation and Amortization included in operating expenses

in operating expenses

DEFERRED VARIABLE PAYMENT OBLIGATION

34 unchanged sentences

would advance up to $ 100,000 in exchange for a perpetual 1.00 % rate Payment on the Company’s quarterly Revenues.

At May 31, 2020,

2020, the investor has fully funded this commitment.

11 unchanged sentences

for $ 900,000 , November 18, 2019 for $ 225,000 and July 1, 2020 for $ 800,000 into a new agreement for a total of $ 1,925,000 .

This new agreement

is for similar terms as the above agreements save for the following:

the rate payment is revised to 14.25 % payable on revenues commencing

the quarter ended August 31, 2020.

Upon an event of default that we are unable to cure in the time allotted under the agreements, these

Payments may be secured with a priority lien by UCC filing against all of our assets, but is subordinated to equipment financing or leasing

agreements on the products the Company leases to its customers.

new agreement is for similar terms as the above agreements save for the following:

the rate payment is revised to 14.25 % payable on revenues

commencing the quarter ended August 31, 2020.

Upon an event of default that we are unable to cure in the time allotted under the agreements,

these Payments may be secured with a priority lien by UCC filing against all of our assets, but is subordinated to equipment financing

or leasing agreements on the products the Company leases to its customers.

summary of all agreements mentioned above if in the event that at least 10 % of the assets of the Company are sold by the Company, the

12 unchanged sentences

31, 2019 and accrue every quarter thereafter.

As of May 31, 2025, the Company has accrued $ 2,202,545 in Payments of which $ 1,096,700

As of August 31, 2025, the Company has accrued $ 2,510,325 in Payments of which $ 1,315,265

are in arrears.

4 unchanged sentences

asset disposition % (see below) was reduced from 31 % to 21 %

consideration for the above changes, the investor received 40

Series F Convertible Preferred Stock and a warrant to purchase

shares of its Series F Convertible Preferred Stock with a five 5 -year

term and an exercise price of $ 1.00 .

During the three months ended May 31, 2021, the warrant holder exercised warrants to acquire 38 shares of Series F Convertible Preferred

The Company attributed a fair value based on recent transactions for the Series F Preferred stock and warrants of $ 33,015,214

and recorded a loss on settlement of debt with a corresponding adjustment to paid in capital.

consideration for the above changes, the investor received 40 Series F Convertible Preferred Stock and a warrant to purchase 367 shares

of its Series F Convertible Preferred Stock with a five 5 -year term and an exercise price of $ 1.00 .

During the three months ended May 31,

2021, the warrant holder exercised warrants to acquire 38 shares of Series F Convertible Preferred Stock.

The Company attributed a fair

value based on recent transactions for the Series F Preferred stock and warrants of $ 33,015,214 and recorded a loss on settlement of

debt with a corresponding adjustment to paid in capital.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

3 unchanged sentences

Because of this, the Company has determined that the agreements constitute debt agreements.

As of May 31, 2025, and February 28, 2025, the long-term balances other than Payments already owed is the cash received of $ 2,525,000

As of August 31, 2025, and February 28, 2025, the long-term balances other than Payments already owed is the cash received of $ 2,525,000

and $ 2,525,000 , respectively.

both the three months ended May 31, 2025, and year ended February 28, 2025, the Company has received $ 0 related to the deferred payment

obligation since there were no new agreements during this period.

The balance remains $ 2,525,000 at both May 31, 2025 and February 28,

both the three months and six months ended August 31, 2025 and year ended February 28, 2025, the Company has received $ 0 related to the

deferred payment obligation since there were no new agreements during this period.

The balance remains $ 2,525,000 at both August 31,

2025 and February 28, 2025.

RELATED PARTY TRANSACTIONS

both the three months ended May 31, 2025, and May 31, 2024, the Company had no repayments of net advances from its loan payable-related

At May 31, 2025, the loan payable-related party was $ 335,065 and $ 329,365 at February 28, 2025.

Included in the balance due to

the related party at May 31, 2025, is $ 258,533 of deferred salary and interest, $ 190,013 of which bears interest at 12 %.

As of February

28, 2025, included in the balance due to the related party is $ 252,833 of deferred salary and interest, $ 190,013 of which bears interest

The accrued interest included in the loan at May 31, 2025, and February 28, 2025, was $ 57,275 , and $ 51,575 , respectively.

the three months ended May 31, 2025, the Company paid out gross payments to the CEO of $ 1,496,687 offset by a bonus accrual of $ 250,000 ,

which yields a net change of $ 1,246,687 relating to deferred compensation for CEO.

This was all in accordance with a December 2023 board

action allowing for $ 1 million of annual discretionary compensation as well as a February 28, 2025, board action which provided an additional

$ 1.5 million in compensation.

There were no payments or accruals for the three months ended May 31, 2025, relating to deferred compensation

The balance of deferred compensation for CEO was $ 955,913 and $ 2,202,600 at May 31, 2025, and February 28, 2025, respectively

the three months ended May 31, 2025, the Company accrued $ 0 (three months ended May 31 2024-$ 0 ) of incentive compensation plan payable

This will be payable in Series G Preferred Shares which are redeemable at the Company’s option at $ 1,000 per share.

At May 31, 2025, and February 28, 2025, there was $ 4,000,000 and $ 4,000,000 of incentive compensation payable.

the three months ended May 31, 2025, and 2024, the Company was charged $ 736,875 and $ 631,584 , respectively for fees for research and

both the three months and six months ended August 31, 2025 and August 31, 2024 , the Company had no repayments of net advances from its

loan payable-related party.

At August 31, 2025 the loan payable-related party was $ 396,940 and $ 329,635 at February 28, 2025.

in the balance due to the related party at August 31, 2025 is $ 320,408 of deferred salary and interest, $ 225,013 of which bears interest

As of February 28, 2025, included in the balance due to the related party is $ 252,833 of deferred salary and interest, $ 190,013

of which bears interest at 12 %.

The accrued interest included in the loan at August 31, 2025, and February 28, 2025, was $ 63,501 , and

$ 51,575 , respectively.

the six months ended August 31, 2025, the Company paid out gross payments to the CEO of $ 1,504,917

offset by a bonus accrual of $ 500,000 ,

which yields a net change of $ 1,004,917

relating to deferred compensation for CEO.

This was all in

accordance with a December 2023 board action allowing for $ 1

million of annual discretionary compensation as well as a February

The balance of deferred compensation for CEO was $ 1,197,683

and $ 2,202,600

at August 31, 2025, and February 28, 2025, respectively

the three and six months ended August 31, 2025, the Company accrued $ 0 (three and six months ended August 31 2024-$ 0 ) of incentive compensation

plan payable to the CEO .

This will be payable in Series G Preferred Shares which are redeemable at the Company’s option at $ 1,000

At August 31, 2025, and February 28, 2025, there was $ 4,000,000 and $ 4,000,000 of incentive compensation payable.

the three months ended August 31, 2025 and 2024, the Company was charged $ 598,277 and $ 777,260 , respectively for fees for research and

development from a company partially owned by a principal shareholder.

The principal shareholder received no compensation from this partially

owned research and development company and the fees were spent on core development projects.

As at both May 31, 2025, and February 28,

2025, the balance due to this company was $ 76,532 .

the six months ended August 31, 2025 and 2024, the Company was charged $ 1,335,152 and $ 1,289,830 , respectively for fees for research

and development from a company partially owned by a principal shareholder.

The principal shareholder received no compensation from this

partially owned research and development company and the fees were spent on core development projects.

As at both August 31, 2025, and

February 28, 2025, the balance due to this company was $ 160,557 and $ 76,532 , respectively.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

1 unchanged sentence

LOANS PAYABLE

payable at May 31, 2025 consisted of the following:

payable at August 31, 2025 consisted of the following:

SCHEDULE OF LOANS PAYABLE

July 18, 2016

July 18, 2017

Promissory note

December 10, 2020

March 1, 2027

Promissory note

December 10, 2020

March 1, 2027

Promissory note

December 10, 2020

December 10, 2024

Promissory note

December 14, 2020

March 1, 2027

Promissory note

December 30, 2020

March 1, 2027

Promissory note

January 1, 2021

March 1, 2027

Promissory note

January 1, 2021

March 1, 2027

Promissory note

January 14, 2021

March 1, 2027

Promissory note

February 22, 2021

March 1, 2027

Promissory note

March 1, 2021

March 1, 2027

Promissory note

July 12, 2021

July 26, 2026

Promissory note

September 14, 2021

September 14, 2027

Promissory note

July 28, 2022

March 1, 2027

Promissory note

August 30, 2022

August 30,2027

Promissory note

September 7, 2022

March 1, 2027

Promissory note

September 8, 2022

March 1, 2027

Promissory note

October 13, 2022

March 1, 2027

Promissory note

October 28, 2022

October 31, 2026

Promissory note

November 9, 2022

October 31, 2026

Promissory note

November 10, 2022

October 31, 2026

Promissory note

November 15, 2022

October 31, 2026

Promissory note

January 11, 2023

October 31, 2026

Promissory note

February 6, 2023

October 31, 2026

Promissory note

October 31, 2026

Promissory note

April 20, 2023

October 31, 2026

Promissory note

October 31, 2026

Promissory note

October 27, 2023

October 31, 2026

Promissory note

November 30, 2023

April 30, 2026

Purchase Agreement

March 8, 2024

August 8, 2025

Purchase Agreement

July 26, 2025

July 26, 2026

Promissory note

August 7,2025

August 7,2026

Promissory note

August 25, 2025

August 25, 2026

Promissory note

August 25, 2025

Future Receivables Purchase and Sale Agreement

current portion of loans payable

( 2,076,905 )

discount on non-current loans payable

loans payable, net of discount

portion of loans payable

Non-current loans payable, net of discount

Current portion of loans payable

discount on current portion of loans payable

portion of loans payable, net of discount

March 1, 2024 the Company adjusted the relative fair value unamortized discount on the above notes by $ 4,175,535 with a corresponding

adjustment to accumulated deficit to apply ASU 2020-06.

note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed

on the lender.

Current portion of loans payable, net of discount

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed

on the lender.

promissory note was issued as part of a debt settlement whereby $ 2,683,357 in convertible notes and associated accrued interest of $ 1,237,811

$ 1,237,811 totaling $ 3,921,168 was exchanged for this promissory note of $ 3,921,168 , and a warrant to purchase 450,000,000 shares

at an exercise price of $ .002 per share and a three-year maturity having a relative fair value of $ 990,000 .

This note is secured

by a general security charging all of the Company’s present and after-acquired property.

On November 28, 2023, the parties

extended the maturity date from December 10, 2023, to March 1, 2025, with all other terms and conditions remaining the same.

16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions

remaining the same.

totaling $ 3,921,168 was exchanged for this promissory note of $ 3,921,168 , and a warrant to purchase 450,000,000 shares at an exercise

price of $ .002 per share and a three-year maturity having a relative fair value of $ 990,000 .

This note is secured by a general security

charging all of the Company’s present and after-acquired property.

On November 28, 2023, the parties extended the maturity date

from December 10, 2023, to March 1, 2025, with all other terms and conditions remaining the same .

On April 16, 2025, the parties again

extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same .

promissory note was issued as part of a debt settlement whereby $ 1,460,794 in convertible notes and associated accrued interest of $ 1,593,544

$ 1,593,544 totaling $ 3,054,338 was exchanged for this promissory note of $ 3,054,338 , and a warrant to purchase 250,000,000 shares

at an exercise price of $ 0.002 per share and a three-year maturity having a relative fair value of $ 550,000 .

This note is secured

by a general security charging all of the Company’s present and after-acquired property.

$ 300,000 has been repaid during the

year ended February 29, 2024.

On November 28, 2023, the parties extended the maturity date from December 10, 2023, to March 1, 2025,

totaling $ 3,054,338 was exchanged for this promissory note of $ 3,054,338 , and a warrant to purchase 250,000,000 shares at an exercise

price of $ 0.002 per share and a three-year maturity having a relative fair value of $ 550,000 .

This note is secured by a general security

charging all of the Company’s present and after-acquired property.

$ 300,000 has been repaid during the year ended February 29,

On November 28, 2023, the parties extended the maturity date from December 10, 2023, to March 1, 2025, with all other terms and

conditions remaining the same .

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027,

with all other terms and conditions remaining the same .

On April 16, 2025, the parties again extended the maturity date from March

1, 2025, to March 1, 2027, with all other terms and conditions remaining the same.

promissory note was issued as part of a debt settlement whereby $ 103,180 in convertible notes and associated accrued interest of $ 62,425

$ 62,425 totaling $ 165,605 was exchanged for this promissory note of $ 165,605 , and a warrant to purchase 80,000,000 shares at an exercise

price of $ .002 per share and a three-year maturity having a fair value of $ 176,000 .

The maturity date was extended from December 10,

2023 to December 10, 2024 on February 29, 2024 and a fee of $ 22,958 was paid and charged to interest expense.

totaling $ 165,605 was exchanged for this promissory note of $ 165,605 , and a warrant to purchase 80,000,000 shares at an exercise price

of $ .002 per share and a three-year maturity having a fair value of $ 176,000 .

The maturity date was extended from December 10, 2023 to

December 10, 2024 on February 29, 2024 and a fee of $ 22,958 was paid and charged to interest expense .

The note is in default.

No notices have been sent.

have been sent.

promissory note was issued as part of a debt settlement whereby $ 235,000 in convertible notes and associated accrued interest of $ 75,375

$ 75,375 totaling $ 310,375 was exchanged for this promissory note of $ 310,375 , and a warrant to purchase 25,000,000 shares at an exercise

price of $ .002 per share and a three-year maturity having a fair value of $ 182,500 .

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

totaling $ 310,375 was exchanged for this promissory note of $ 310,375 , and a warrant to purchase 25,000,000 shares at an exercise price

of $ .002 per share and a three-year maturity having a fair value of $ 182,500 .

note, with an original principal amount of $ 350,000 , may be pre-payable at any time.

The note balance includes an original issue

discount of $ 35,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $ 0.025 per share with a 3 -year

term and having a relative fair value of $ 271,250 .

The note balance includes an original issue discount

of $ 35,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $ 0.025 per share with a 3 -year term and

having a relative fair value of $ 271,250 .

The discounts are being amortized over the term of the loan.

After allocating

these charges to debt and equity according to their respective values, a debt discount of $ 271,250 with a corresponding adjustment

to paid in capital for the relative fair value of the warrant.

On March 1, 2024, the unamortized relative fair value discount of

$ 65,092 was removed with a corresponding adjustment to accumulated deficit.

After allocating these charges

to debt and equity according to their respective values, a debt discount of $ 271,250 with a corresponding adjustment to paid in capital

for the relative fair value of the warrant.

On March 1, 2024, the unamortized relative fair value discount of $ 65,092 was removed with

a corresponding adjustment to accumulated deficit.

A $ 8,399 unamortized discount remained.

On November 28,

2023, the parties extended the maturity date from December 10, 2023, to March 1, 2025, with all other terms and conditions remaining

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms

and conditions remaining the same.

For the three months ended May 31, 2025 , the Company recorded amortization expense of $ 138 , with

an unamortized discount of $ 0 at May 31, 2025.The loan is fully amortized.

O n November 28, 2023, the parties extended

the maturity date from December 10, 2023, to March 1, 2025, with all other terms and conditions remaining the same .

On April 16, 2025,

the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the

For the six months ended August 31, 2025 , the Company recorded amortization expense of $ 138 , with an unamortized

discount of $ 0 at August 31, 2025.The loan is fully amortized.

promissory note was issued as part of a debt settlement whereby $ 9,200 in convertible notes and associated accrued interest of $ 6,944

totaling $ 16,144 was exchanged for this promissory note of $ 25,000 .

This note is secured by a general security charging all of the

Company’s present and after-acquired property.

On November 28, 2023, the parties extended the maturity date from January 1,

This note is secured by a general security charging all of the Company’s

present and after-acquired property.

On November 28, 2023, the parties extended the maturity date from January 1, 2024, to March 1, 2025,

with all other terms and conditions remaining the same .

On April 16, 2025, the parties again extended the maturity date from March 1,

2025, to March 1, 2027, with all other terms and conditions remaining the same .

On April 16, 2025, the parties again extended the

maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same.

promissory note was issued as part of a debt settlement whereby $ 79,500 in convertible notes and associated accrued interest of $ 28,925

6 unchanged sentences

the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same .

note, with an original principal amount of $ 550,000 , may be pre-payable at any time.

The note balance includes an original issue

discount of $ 250,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $ 0.025 per share with a

3 -year term and having a relative fair value of $ 380,174 .

The discounts are being amortized over the term of the loan.

After allocating

these charges to debt and equity according to their respective values, a debt discount of $ 380,174 with a corresponding adjustment

to paid in capital.

On March 1, 2024, the unamortized relative fair value discount of $ 80,284 was removed with a corresponding adjustment

to accumulated deficit.

A $ 10,559 unamortized discount remained.

On November 28, 2023, the parties extended the maturity date from

January 14, 2024, to March 1, 2025, with all other terms and Conditions remaining the same.

On April 16, 2025, the parties again

extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same.

three months ended May 31, 2025 , the Company recorded amortization expense of $ 144 , with an unamortized discount of $ 0 at May 31,

2025.The loan is fully amortized.

On February 11, 2025, the Company repaid $ 162,000 through the issuance of 60,000,000 common

The remaining $ 388,000 in loan principal as well as $ 35,500 in accrued interest ( all totaling $ 425,500 ) was repaid

on March 5, 2025 through the issuance of 185,000,000 common shares.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

note, with an original principal balance of $ 1,650,000 , may be pre-payable at any time.

The note balance includes an original issue

discount of $ 150,000 and was issued with a warrant to purchase 100,000,000 shares at an exercise price of $ 0.135 per share with a

3 -year term and having a relative fair value of $ 1,342,857 .

The discount and warrant are being amortized over the term of the loan.

After allocating these charges to debt and equity according to their respective values, a debt discount of $ 1,342,857 with a corresponding

adjustment to paid in capital for the relative fair value of the warrant.

The maturity date was extended from February 22, 2022,

to February 22, 2024, on February 28, 2022, in exchange for warrants to purchase 50,000,000 at an exercise price of $ .0164 and a

3 -year term.

These warrants have a fair value of $ 950,000 recorded as interest expense with a corresponding adjustment to paid in

capital recorded in the year ended February 28, 2022.

On November 28, 2023, the parties extended the maturity date from February

The note, with an original

principal amount of $ 550,000 , may be pre-payable at any time.

The note balance includes an original issue discount of $ 250,000 and

was issued with a warrant to purchase 50,000,000 shares at an exercise price of $ 0.025 per share with a 3 -year term and having a

relative fair value of $ 380,174 .

The discounts are being amortized over the term of the loan.

After allocating these charges to debt

and equity according to their respective values, a debt discount of $ 380,174 with a corresponding adjustment to paid in capital.

On March 1, 2024, the unamortized relative fair value discount of $ 80,284 was removed with a corresponding adjustment to accumulated

A $ 10,559 unamortized discount remained.

On November 28, 2023, the parties extended the maturity date from January 14, 2024,

to March 1, 2025, with all other terms and Conditions remaining the same .

On March 1, 2024, the unamortized relative fair

value discount of $ 497,614 was removed with a corresponding adjustment to accumulated deficit.

On April 16, 2025, the parties again extended the maturity

date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same .

For the six months ended August

31, 2025 , the Company recorded amortization expense of $ 144 , with an unamortized discount of $ 0 at August 31, 2025.The loan is fully

On February 11, 2025, the Company repaid $ 162,000 through the issuance of 60,000,000 common shares.

The remaining

$ 388,000 in loan principal as well as $ 35,500 in accrued interest ( all totaling $ 425,500 ) was repaid on March 5, 2025 through the

issuance of 185,000,000 common shares.

The note, with an original

principal balance of $ 1,650,000 , may be pre-payable at any time.

The note balance includes an original issue discount of $ 150,000

and was issued with a warrant to purchase 100,000,000 shares at an exercise price of $ 0.135 per share with a 3 -year term and having

a relative fair value of $ 1,342,857 .

The discount and warrant are being amortized over the term of the loan.

After allocating these

charges to debt and equity according to their respective values, a debt discount of $ 1,342,857 with a corresponding adjustment to

paid in capital for the relative fair value of the warrant.

The maturity date was extended from February 22, 2022, to February 22,

2024, on February 28, 2022, in exchange for warrants to purchase 50,000,000 at an exercise price of $ .0164 and a 3 -year term.

warrants have a fair value of $ 950,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in

the year ended February 28, 2022.

On November 28, 2023, the parties extended the maturity date from February 22, 2024, to March 1,

2025, with all other terms and conditions remaining the same .

On March 1, 2024, the unamortized relative fair value discount of $ 497,614

was removed with a corresponding adjustment to accumulated deficit.

A $ 55,585 unamortized discount remained.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions

remaining the same.

For the three months ended May 31, 2025, the Company recorded amortization expense of $ 700 , with an unamortized

discount of $ 0 at May 31, 2025.

On April 16, 2025, the

parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the

For the six months ended August 31, 2025, the Company recorded amortization expense of $ 700 , with an unamortized discount of

$ 0 at August 31, 2025.

The loan is fully amortized.

unsecured note may be pre-payable at any time.

The unsecured note may

be pre-payable at any time.

Cash proceeds of $ 5,400,000 were received.

The note balance of $ 6,000,000 includes

an original issue discount of $ 600,000 and was issued with a warrant to purchase 300,000,000 shares at an exercise price of $ 0.135

per share with a 3 -year term and having a relative fair value of $ 4,749,005 using Black-Scholes with assumptions described in note

The discounts are being amortized over the term of the loan.

After allocating these charges to debt and equity according to their

respective values, a debt discount of $ 4,749,005 with a corresponding adjustment to paid in capital for the relative value of the

The maturity was extended from March 1, 2022 to March 1, 2024 on February 28, 2022 in exchange for warrants to purchase

150,000,000 shares of common stock at an exercise price of $ .0164 and a 3 year term.

These warrants have a fair value of $ 2,850,000

recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022.

note has been fully amortized.

The note balance of $ 6,000,000 includes an original issue

discount of $ 600,000 and was issued with a warrant to purchase 300,000,000 shares at an exercise price of $ 0.135 per share with a

3 -year term and having a relative fair value of $ 4,749,005 using Black-Scholes with assumptions described in note 13.

The discounts

are being amortized over the term of the loan.

After allocating these charges to debt and equity according to their respective values,

a debt discount of $ 4,749,005 with a corresponding adjustment to paid in capital for the relative value of the warrant.

was extended from March 1, 2022 to March 1, 2024 on February 28, 2022 in exchange for warrants to purchase 150,000,000 shares of

common stock at an exercise price of $ .0164 and a 3 year term.

These warrants have a fair value of $ 2,850,000 recorded as interest

expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022.

This note has been fully

This note was again extended to March 1, 2025.

On April 16, 2025, the parties again extended the maturity

date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same.

For the three months ended May

On April 16, 2025, the parties again extended the maturity date from March

1, 2025, to March 1, 2027, with all other terms and conditions remaining the same .

For the six months ended August 31,

2025 , the Company has issued 1,750,000,000 common shares to repay $ 2,075,000 in loan principal.

note, with an original principal balance of $ 2,750,000 , may be pre-payable at any time.

The note balance includes an original issue

discount of $ 50,000 and was issued with a warrant to purchase 170,000,000 shares at an exercise price of $ 0.064 per share with a

3 -year term and having a relative fair value of $ 2,035,033 .

The note, with an original

principal balance of $ 2,750,000 , may be pre-payable at any time.

The note balance includes an original issue discount of $ 50,000

and was issued with a warrant to purchase 170,000,000 shares at an exercise price of $ 0.064 per share with a 3 -year term and having

a relative fair value of $ 2,035,033 .

The discounts are being amortized over the term of the loan.

After allocating

these charges to debt and equity according to their respective values, a debt discount of $ 2,035,033 with a corresponding adjustment

to paid in capital.

The maturity date was extended from June 8, 2022 to June 8, 2024 on February 28, 2022 in exchange for warrants

to purchase 85,000,000 at an exercise price of $ .0164 and a 3 year term.

These warrants have a fair value of $ 1,615,000 recorded

as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022.

This note was

extended to June 8, 2025.

On March 1, 2024, the unamortized relative fair value discount of $ 33,547 was removed with a corresponding

adjustment to accumulated deficit.

After allocating these charges

to debt and equity according to their respective values, a debt discount of $ 2,035,033 with a corresponding adjustment to paid in

The maturity date was extended from June 8, 2022 to June 8, 2024 on February 28, 2022 in exchange for warrants to purchase

85,000,000 at an exercise price of $ .0164 and a 3 year term.

These warrants have a fair value of $ 1,615,000 recorded as interest

expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022.

This note was extended to

June 8, 2025.

On March 1, 2024, the unamortized relative fair value discount of $ 33,547 was removed with a corresponding adjustment

to accumulated deficit.

A $ 4,121 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded

amortization expense of $ 964 , with an unamortized discount of $ 0 at May 31, 2025.

The loan is fully amortized On April 16,

2025, the parties again extended the maturity date from June 8, 2025, to June 8, 2027, with all other terms and conditions remaining

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended August 31, 2025, the Company recorded amortization

expense of $ 964 , with an unamortized discount of $ 0 at August 31, 2025.

The loan is fully amortized On April 16, 2025, the

parties again extended the maturity date from June 8, 2025, to June 8, 2027, with all other terms and conditions remaining the same .

loan, with an original principal balance of $ 4,000,160 , was in exchange for 184 Series F preferred shares from a former director.

The interest and principal are payable at maturity.

interest and principal are payable at maturity.

The loan is unsecured.

During the three months ended May 31, 2025

the Company repaid $ 50,000 as part of a settlement with the estate of the lender .

A settlement agreement was entered into on April

25,2025 between the Company and the Estate of the lender whereby the Company would repay a total of $ 420,000 to fully discharge the

outstanding loan balance and accrued interest which totals $ 4,790,185 .

The Company was required to pay $ 50,000 in trust , which it

did with the remainder to be repaid by July 9, 2025.

This settlement agreement was subject to court approval which was granted on

June 5, 2025.

The Company and the estate of the lender have modified the remaining payment schedule.

The Company repaid $ 150,000

in June and will repay the $ 220,000 remaining balance by August 9, 2025.

At May 31, 2025 the outstanding principal and interest was

$ 4,740,185 .

Upon settlement in August , the Company will record a gain on settlement of debt of $ 4,370,185 .

note, with an original principal balance of $ 1,650,000 , may be pre-payable at any time.

The note balance includes an original issue

discount of $ 150,000 and was issued with a warrant to purchase 250,000,000 shares at an exercise price of $ 0.037 per share with a

3 -year term and having a relative fair value of $ 1,284,783 , The discounts are being amortized over the term of the loan.

After allocating

these charges to debt and equity according to their respective values, a debt discount of $ 1,284,783 with a corresponding adjustment

to paid in capital.

During the six months ended August 31, 2025 the Company

repaid $ 420,000 as part of a settlement with the estate of the lender .

A settlement agreement was entered into on April 25,2025 between

the Company and the Estate of the lender whereby the Company will repay a total of $ 420,000 to fully discharge the outstanding loan balance

and accrued interest which totaled $ 4,790,185 ..

This settlement agreement was approved by the court on June 5, 2025.

Upon settlement

in August 2025, the Company recorded a gain on settlement of debt of $ 4,370,185 .

At August 31, 2025 the outstanding principal and interest

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The note, with

an original principal balance of $ 1,650,000 , may be pre-payable at any time.

The note balance includes an original issue discount

of $ 150,000 and was issued with a warrant to purchase 250,000,000 shares at an exercise price of $ 0.037 per share with a 3 -year term

and having a relative fair value of $ 1,284,783 , The discounts are being amortized over the term of the loan.

After allocating these

charges to debt and equity according to their respective values, a debt discount of $ 1,284,783 with a corresponding adjustment to

paid in capital.

On March 1, 2024, the unamortized relative fair value discount of $ 572,549 was removed with a corresponding adjustment

1 unchanged sentence

A $ 66,846 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization

expense of $ 1,935 , with an unamortized discount of $ 23,246 at May 31, 2025.

On April 16, 2025, the parties again extended the maturity

date from September 14, 2025, to September 14, 2027, with all other terms and conditions remaining the same.

$ 170,000 note may be pre-payable at any time.

For the six months ended August 31, 2025, the Company recorded amortization

expense of $ 4,170 , with an unamortized discount of $ 21,011 at August 31, 2025.

O n April 16, 2025, the parties again extended the

maturity date from September 14, 2025, to September 14, 2027, with all other terms and conditions remaining the same .

Original $ 170,000 note

may be pre-payable at any time.

The note balance includes an original issue discount of $ 20,000 .

Principal and interest

due at maturity.

Principal and interest due at maturity.

Secured by a general security charging all of RAD’s present and after-acquired property.

On November 29, 2023,

the parties extended the maturity date from July 28, 2023, to March 1, 2025, with all other terms and conditions remaining the same.

This note has been fully amortized.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March

1, 2027, with all other terms and conditions remaining the same.

warrant holder exchanged 955,000,000 warrants for a promissory note of $ 3,000,000 , bearing interest at 15 % with a two year maturity.

The fair value of the warrants was determined to be $ 2,960,500 with a corresponding adjustment to paid-in capital and a debt discount

of $ 39,500 which will be amortized over the term of the loan.

On November 29, 2023, the parties

extended the maturity date from July 28, 2023, to March 1, 2025, with all other terms and conditions remaining the same .

has been fully amortized.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with

all other terms and conditions remaining the same .

A warrant holder exchanged

955,000,000 warrants for a promissory note of $ 3,000,000 , bearing interest at 15 % with a two year maturity.

The fair value of the

warrants was determined to be $ 2,960,500 with a corresponding adjustment to paid-in capital and a debt discount of $ 39,500 which

will be amortized over the term of the loan.

Principal and interest due at maturity.

On March 1, 2024, the unamortized

relative fair value discount of $ 11,535 was removed with a corresponding adjustment to accumulated deficit.

This note has been fully

On March 1, 2024, the unamortized relative fair

value discount of $ 11,535 was removed with a corresponding adjustment to accumulated deficit.

This note has been fully amortized.

This note was extended to August 30, 2025.

1 unchanged sentence

to August 30, 2027, with all other terms and conditions remaining the same .

$ 400,000 note may be pre-payable at any time.

Original $ 400,000 note

may be pre-payable at any time.

The note balance includes an original issue discount of $ 50,000 .

Principal and interest

due at maturity.

Principal and interest due at maturity.

Secured by a general security charging all of RAD’s present and after-acquired property.

On November 29, 2023,

the parties extended the maturity date from September 7, 2023, to March 1, 2025, with all other terms and conditions remaining the

This note has been fully amortized.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to

March 1, 2027, with all other terms and conditions remaining the same.

$ 475,000 note may be pre-payable at any time.

On November 29, 2023, the parties

extended the maturity date from September 7, 2023, to March 1, 2025, with all other terms and conditions remaining the same .

note has been fully amortized.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027,

with all other terms and conditions remaining the same .

Original $ 475,000 note

may be pre-payable at any time.

The note balance includes an original issue discount of $ 75,000 .

Principal and interest

due at maturity.

Principal and interest due at maturity.

Secured by a general security charging all of RAD’s present and after-acquired property.

On November 29, 2023,

the parties extended the maturity date from September 8, 2023, to March 1, 2025, with all other terms and conditions remaining the

This note has been fully amortized.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to

March 1, 2027, with all other terms and conditions remaining the same.

$ 350,000 note may be pre-payable at any time.

On November 29, 2023, the parties

extended the maturity date from September 8, 2023, to March 1, 2025, with all other terms and conditions remaining the same .

note has been fully amortized.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027,

with all other terms and conditions remaining the same .

Original $ 350,000 note

may be pre-payable at any time.

The note balance includes an original issue discount of $ 50,000 .

Principal and interest

due at maturity.

Principal and interest due at maturity.

Secured by a general security charging all of the Company’s present and after-acquired property.

29, 2023, the parties extended the maturity date from October 13, 2023, to March 1, 2025, with all other terms and conditions remaining

On November 29, 2023, the

parties extended the maturity date from October 13, 2023, to March 1, 2025, with all other terms and conditions remaining the same .

This note has been fully amortized.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025,

to March 1, 2027, with all other terms and conditions remaining the same.

On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March

1, 2027, with all other terms and conditions remaining the same .

October 28, 2022, the Company entered into an loan facility with a lender for up to $ 4,000,000 including an original issue discount of

In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity

to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $ 400,000 , with cash proceeds of $ 350,000 an original

issue discount of $ 50,000 , October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity.

Secured by a general

security charging all of the Company’s present and after-acquired property.

At February 29, 2024 the Company has issued all 10

tranches totaling $ 4,000,000 as follows:

October 28, 2022, $ 400,000

loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants and 1 Series F Preferred Share having a relative fair

value of $ 299,399 .

On March 1, 2024, the unamortized relative fair value discount of $ 286,775 was removed with a corresponding adjustment

to accumulated deficit.

A $ 47,892 unamortized discount remained.

For the six months ended August 31, 2025, the Company recorded amortization

expense of $ 8,769 , with an unamortized discount of $ 24,142 at August 31, 2025.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

October 28, 2022, the Company entered into an loan facility with a lender for up to $ 4,000,000 including an original issue discount

of $ 500,000 .

In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026

maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $ 400,000 , with cash proceeds of $ 350,000

an original issue discount of $ 50,000 , October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity.

by a general security charging all of the Company’s present and after-acquired property.

At February 29, 2024 the Company has

issued all 10 tranches totaling $ 4,000,000 as follows:

28, 2022, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants and 1 Series F Preferred Share

having a relative fair value of $ 299,399 .

On March 1, 2024, the unamortized relative fair value discount of $ 286,775 was removed

with a corresponding adjustment to accumulated deficit.

A $ 47,892 unamortized discount remained.

For the three months ended May 31,

2025, the Company recorded amortization expense of $ 4,272 , with an unamortized discount of $ 28,638 at May 31, 2025.

9, 2022, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of

2 unchanged sentences

A $ 48,126 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization

expense of $ 4,293 , with an unamortized discount of $ 28,783 at May 31, 2025.

For the six months ended August 31, 2025, the Company recorded amortization

expense of $ 8,811 , with an unamortized discount of $ 24,264 at August 31, 2025.

10, 2022, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 302,020 .

1 unchanged sentence

A $ 48,290 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,307 , with an unamortized discount of $ 28,885 at May 31, 2025.

For the six months ended August 31, 2025, the Company recorded amortization expense

of $ 8,841 , with an unamortized discount of $ 28,443 at August 31, 2025.

15, 2022, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 299,959 .

1 unchanged sentence

A $ 47,976 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,280 , with an unamortized discount of $ 28,691 at May 31, 2025.

For the six months ended August 31, 2025, the Company recorded amortization expense

of $ 8,784 , with an unamortized discount of $ 24,187 at August 31, 2025.

11, 2023, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 299,959 .

1 unchanged sentence

A $ 48,124 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,293 , with an unamortized discount of $ 28,783 at May 31, 2025.

For the six months ended August 31, 2025, the Company recorded amortization expense

of $ 8,811 , with an unamortized discount of $ 24,264 at August 31, 2025.

6, 2023, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 299,959 .

1 unchanged sentence

A $ 48,294 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,307 , with an unamortized discount of $ 28,888 at May 31, 2025.

For the six months ended August 31, 2025, the Company recorded amortization expense

of $ 8,842 , with an unamortized discount of $ 24,353 at August 31, 2025.

5, 2023, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 296,245 .

1 unchanged sentence

A $ 48,409 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,317 , with an unamortized discount of $ 28,959 at May 31, 2025.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended August 31, 2025, the Company recorded amortization expense

of $ 8,862 , with an unamortized discount of $ 24,414 at August 31, 2025.

20, 2023, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 302,219 .

1 unchanged sentence

A $ 48,777 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,349 , with an unamortized discount of $ 29,186 at May 31, 2025.

For the six months ended August 31, 2025, the Company recorded amortization expense

of $ 8,929 , with an unamortized discount of $ 24,607 at August 31, 2025.

11, 2023, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 348,983 .

1 unchanged sentence

A $ 49,978 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,454 , with an unamortized discount of $ 29,930 at May 31, 2025.

For the six months ended August 31, 2025, the Company recorded amortization expense

of $ 9,145 , with an unamortized discount of $ 25,239 at August 31, 2025.

27 2023, $ 400,000 loan, original issue discount of $ 50,000 , 61 Series F Preferred Share warrants having a relative fair value of $ 261,759 .

On March 1, 2024, the unamortized relative fair value discount of $ 254,487 was removed with a corresponding adjustment to accumulated

On March 1, 2024, the unamortized relative fair value discount of $ 254,487 was removed with six a corresponding adjustment to accumulated

A $ 48,611 unamortized discount remained.

For the three months ended May 31, 2025, the Company recorded amortization expense

of $ 4,335 , with an unamortized discount of $ 29,083 at May 31, 2025.

November 30, 2023, the Company entered into an agreement where the lender will pay the Company $ 350,000 in exchange for thirteen

future monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025 totaling $ 477,750 .

The effective interest

rate is 35 % per annum.

For the three months ended August 31, 2025, the Company recorded amortization expense

of $ 8,899 , with an unamortized discount of $ 24,520 at August 31, 2025.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2023, the Company entered into an agreement where the lender will pay the Company $ 350,000 in exchange for thirteen future

monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025 totaling $ 477,750 .

The effective interest rate is 35 %

Secured by a general security charging all of RAD’s present and after-acquired property.

of 15 % per annum calculated daily on any missed monthly payment.

The Company has repaid $ 147,000 and $ 53,000 in accrued interest

in July to account for the missed April through to August 2024 payments in agreement with the lender.

The Company have missed the

subsequent monthly payments.

On April 16, 2025, the parties again extended the maturity date from April 30, 2025, to April 30, 2026,

with all other terms and conditions remaining the same.

March 8, 2024, the Company entered into another agreement where the lender will pay the Company $ 350,000 in exchange for thirteen

future monthly payments of $36,750 commencing on August 8, 2024 through to August 80, 2025 totaling $ 477,750 .

The effective interest

rate is 35 % per annum.

Default rate of 15 % per annum

calculated daily on any missed monthly payment and after maturity.

The Company has repaid $ 147,000 and $ 53,000 in accrued interest in

July to account for the missed April through to August 2024 payments in agreement with the lender.

The Company have missed the subsequent

monthly payments.

On April 16, 2025, the parties again extended the maturity date from April 30, 2025, to April 30, 2026, with all other

terms and conditions remaining the same .

March 8, 2024, the Company entered into another agreement where the lender will pay the Company $ 350,000 in exchange for thirteen future

monthly payments of $36,750 commencing on August 8, 2024 through to August 8, 2025 totaling $ 477,750 .

The effective interest rate is

35 % per annum.

Secured by a general security charging all of RAD’s present and after- acquired property.

of 15 % per annum calculated daily on any missed monthly payment.

The August 2024 through to May 2025 payments have not been made

but will be resolved with the lender.

Default rate of 15 % per

annum calculated daily on any missed monthly payment and after maturity.

The August 2024 through to August 2025 payments have

not been made but will be resolved with the lender and the note was not repaid at maturity.

The Company believes it will re-negotiate

the maturity date with the lender as it has done with similar loans.

No notices have been sent.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

$ 165,000 note may be pre-payable at any time.

The note balance includes an original issue discount of $ 15,000 .

Principal and interest

due at maturity.

Secured by a general security charging all of RAD’s present and after-acquired property.

The discount was expensed.

$ 245,000 note may be pre-payable at any time.

The note balance includes an original issue discount of $ 25,000 .

Principal and interest

due at maturity.

Secured by a general security charging all of RAD’s present and after-acquired property.

The discount was expensed.

$ 137,500 note may be pre-payable at any time.

The note balance includes an original issue discount of $ 12,500 .

Principal and interest

due at maturity.

Secured by a general security charging all of RAD’s present and after-acquired property.

The discount was expensed.

August 25, 2025, the Company entered into Future Receivables Purchase and Sale Agreement secured by a general security charging

all of RAD’s present and after- acquired property.

The Company received net proceeds of $ 555,671 after fees of $ 29,329 and a financing

fee of $ 222,300 for total fees of $ 251,629 .

The Company must repay $ 807,300 , in weekly payments of 7 % of estimated receipts from accounts

receivables .The estimated monthly payments will be approximately $ 99,725 .

STOCKHOLDERS’ EQUITY (DEFICIT)

6 unchanged sentences

The Company must redeem

the shares at stated capital of 1,200 per share and a 1.09 premium at 180 days after issuance.

The Company recorded the 306 outstanding

shares at its redemption value of $ 402,084 at February 28, 2025, with the offsetting adjustment to paid in capital.

On May 10, 2025 the

Company issued the 12 % quarterly dividend in 9.19 Series C shares with a redemption value of $ 12,073 .

At May 31, 2025 there were 315

outstanding series C shares with a redemption value of $ 414,157 .

Ay February 28, 2025 there were 306 outstanding series C shares with

a redemption value of $ 402,084 .

F Convertible Preferred Stock

the shares at stated capital of 1,200 per share and a 1.09 premium at 180 days after issuance, On August 9.2025.

The Company recorded

the 306 outstanding shares at its redemption value of $ 402,084 at February 28, 2025, with the offsetting adjustment to paid in capital.

On May 10, 2025 the Company issued the 12 % quarterly dividend in 9.19 Series C shares with a redemption value of $ 12,073 .

2025 the Company issued the 12 % quarterly dividend in 9.46 Series C shares with a redemption value of $ 12,436 .

On August 9, 2025 the

Company recorded a 35 % penalty due to not redeeming the shares at the redemption date.

The penalty amounted to 114 Series C shares at

a value of $ 149,307 .

On August 25, 2025 the Company redeemed 95 Series C shares for $ 125,000 .

Included in that payment was a deemed dividend

of $ 28,871 .

At August 31, 2025 there were 343 outstanding series C shares with a redemption value of $ 450,899 .

At February 28, 2025 there

were 306 outstanding series C shares with a redemption value of $ 402,084 .

F Convertible Preferred Shares

holder of Series F Convertible Preferred Shares may, at any time and from time to time convert all, but not less than all, of their shares

2 unchanged sentences

of Preferred Stock Warrant Activity

SUMMARY OF PREFERRED STOCK WARRANT ACTIVITY

of Series F Preferred Warrants

OF PREFERRED STOCK WARRANT ACTIVITY

Exercise Price

Remaining Years

at February 28, 2025

and cancelled

at May 31, 2025

Outstanding at February 28, 2025

Forfeited and cancelled

Outstanding at August 31, 2025

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

of Common Stock Activity

the three months ended May 31, 2025:

Company’s board of directors voted to increase authorized common shares from 23,000,000,000 to 27,500,000,000 on October 15, 2025.

the six months ended August 31, 2025:

the Company issued 3,440,380,240 common shares with gross proceeds of $ 4,141,345 and net proceeds of $ 3,943,680 after issuance costs

of $ 197,665 .

Included in the net proceeds are $ 270,186 in share proceeds receivable received after quarter year end.

the Company issued 1,935,000,000 common shares to repay $ 2,463,000 in loans payable and $ 37,500 in accrued interest all totaling $ 2,500,500 .

of Common Stock Warrant Activity

the three months ended May 31, 2025 and May 31, 2024, the Company recorded a total of $ 80,355 and $ 83,323 respectively, to stock-based

compensation for options and warrants with a corresponding adjustment to additional paid-in capital.

the three months and six months ended August 31, 2025 and August 31, 2024, the Company recorded a total of $ 80,355 and $ 83,323 , and $ 160,710

and $ 166,646 respectively, to stock-based compensation for options and warrants with a corresponding adjustment to additional paid-in

OF COMMON STOCK WARRANT ACTIVITY

Exercise Price

Remaining Years

at February 28, 2025

and cancelled

at May 31, 2025

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Outstanding at February 28, 2025

Forfeited and cancelled

Outstanding at August 31, 2025

of Common Stock Option Activity -Employee Stock Options

OF COMMON STOCK OPTION ACTIVITY

Average Exercise Price

Average Remaining Years

at March 1, 2025

extinguished and cancelled

Exercise Price

Outstanding at March 1, 2025

Forfeited, extinguished and cancelled

( 3,322,058 )

at May 31, 2025

Outstanding at August 31, 2025

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

COMMITMENTS AND CONTINGENCIES

14 unchanged sentences

of wrongdoing.

The Company accrued the $ 65,000 at May 31, 2025.

The Company paid the $ 65,000 on August 1, 2025.

March 10, 2021, the Company entered into a 10 year lease agreement for a manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan,

14 unchanged sentences

on a straight-line basis.

Rent expense and operating lease cost was $ 58,219 and $ 62,013 for the three months ended May 31, 2025 and May

31, 2024, respectively.

Rent expense and operating lease cost was $ 62,578 and $ 120,797 for the three and six months ended August 31,

2025, respectively, and $ 62,967 and $ 124,980 for the three and six months ended August 31, 2024, respectively.

SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES

of Lease Liabilities

31, 2031 and after

lease payments

value of lease liabilities

Maturity of Lease Liabilities

August 31, 2026

August 31, 2027

August 31, 2028

August 31, 2029

August 31, 2030

August 31, 2031 and after

Total lease payments

Present value of lease liabilities

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

4 unchanged sentences

For the Three Months Ended

Net income (loss) available to common shareholders

For the Six Months Ended

$ ( 3,930,323 )

$ ( 3,830,953 )

Effect of common stock equivalents

dividends to C preferred shareholders

Net income (loss) adjusted for common stock equivalents

$ ( 8,124,682 )

Dividend on Series B or Series C shares

Deemed dividend on redemption of Series F shares

Net income (loss )available to common shareholders

( 4,325,343 )

( 3,860,824 )

( 8,548,558 )

Weighted average shares – basic

1 unchanged sentence

11,181,863,976

16,993,556,638

10,531,991,040

Net income (loss) per share – basic

Dilutive effect of common stock equivalents:

Convertible notes and accrued interest

Convertible Series F Preferred Shares

Stock options and warrants

Weighted average shares – diluted

1 unchanged sentence

11,181,863,976

16,993,556,638

10,531,991,040

Net income (loss) per share – diluted

anti-dilutive shares of common stock equivalents for the three months ended May 31, 2025 and 2024 were as follows:

anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2025 and 2024 were as follows:

SCHEDULE OF ANTI-DILUTIVE SHARES OF COMMON STOCK EQUIVALENTS

For the Three Months Ended

May 31, 2024*

For the Six Months Ended

Convertible Series C Preferred Shares

Convertible Series F Preferred Shares

1 unchanged sentence

40,388,015,095

Convertible Redeemable Series B & C Preferred Shares

68,268,027,328

40,388,015,095

Stock options and warrants

1 unchanged sentence

40,874,266,762

69,198,734,538

40,874,266,762

SUBSEQUENT EVENTS

to May 31, 2025 through to filing date,

Company issued 800,000,000 common shares pursuant to a share purchase agreement for gross

proceeds of $ 736,000 , issuance costs of $ 40,611 and net proceeds of $ 695,389 .

Company issued 500,000,000 shares to a lender to settle $ 575,000 in principal pursuant to

exchange agreements with the lender.

June 11, 2025 the Company entered into an Equity Financing Agreement whereby an investor

shall invest up to $30,000,000 over the course of twenty four (24) month at a purchase price

of eighty percent (80%) of the lowest trade price in the 9 day preceding period.

If the average

Closing Price for the Common Stock during the three (3) trading days preceding a purchase

is equal to or greater than one cent ($.01) per share, the applicable purchase price shall

equal eighty five percent (85%) of the lowest trade price in the 9 day preceding period.

Following an up-list to the NASDAQ or an equivalent national exchange by the Company, the

purchase price shall equal ninety percent (90%) of the lowest Volume Weighted Average Price

(“VWAP”) for the Common Stock during the 9 day preceding period subject to a

floor of $2.00 per share, below which the Company shall not be required to sell shares.

conjunction with the above agreement, the Company entered into a Registration Rights Agreement.

On June 16, 2025 the parties cancelled these agreements.

June 16, 2025 the Company entered into a new Equity Financing Agreement whereby another investor