What changed in this filing

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Item 1. Financial Statements

2026-10-20 compared with 2026-07-14 · 1212 added, 846 removed, 897 unchanged (70% of the section changed)

24 unchanged sentences

payable, net of discount of $ 2,782,491 and $ 635,774

portion of accrued interest payable

Current portion of accrued

interest payable

Total current liabilities

Non-current operating lease

Loans payable, net

Loans payable, net of

discount of $ 11,337

Deferred variable payment

4 unchanged sentences

8 % cumulative dividend payable quarterly,$ 1,200 stated value, 5,000 shares authorized, no shares issued

and outstanding at May 31, 2026 and February 28, 2026, respectively

and outstanding at August 31, 2026 and February 28, 2026, respectively

Series C Convertible, Redeemable Preferred

1 unchanged sentence

$ 1,200 stated value, redeemable at 109.5 %, 12 % dividend, 1,000 shares authorized, 253 and 417 shares issued

and outstanding at May 31, 2026 and February 28, 2026, respectively

Convertible, Redeemable Preferred Stock, value

and outstanding at August 31, 2026 and February 28, 2026, respectively

Convertible, Redeemable Preferred

Commitments and Contingencies

2 unchanged sentences

15,534,000 shares authorized;

no shares issued and outstanding at May 31, 2026 and February 28, 2026, respectively

no shares issued and outstanding at August 31, 2026 and February 28, 2026, respectively

Series G Redeemable Preferred

$ 0.001 par value;

100,000 shares authorized, no shares issued and outstanding at May 31, 2026 and February 28, 2026, respectively

100,000 shares authorized, no shares issued and outstanding at August 31, 2026 and February 28, 2026, respectively

Series E Preferred Stock,

6 unchanged sentences

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

Preferred Stock, value

Common Stock, $ 0.00001

12 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Cost of goods sold

Purchases and overhead

Depreciation and amortization

Total Cost of Goods Sold

of Goods Sold

Operating expenses:

Research and development

(see Note 10)

General and administrative

Depreciation and amortization

Operating lease cost and

Total operating expenses

lease cost and rent

operating expenses

Loss from operations

1 unchanged sentence

( 2,309,159 )

Other expense,

( 5,389,759 )

( 5,487,827 )

Other income (expense),

Interest expense

1 unchanged sentence

( 1,297,962 )

( 4,775,911 )

( 2,713,311 )

Derivative liability loss

( 1,495,130 )

(loss) on settlement of debt

Total other expense,

other income (expense) net

( 4,158,077 )

( 7,164,551 )

income (loss)

$ ( 6,838,473 )

$ ( 12,554,310 )

Net loss per share - basic

Net loss per share - diluted

Weighted average common share outstanding - basic

Weighted average common share outstanding - diluted

$ ( 3,830,953 )

Net income (loss) per

share - basic

Net income (loss) per

share - diluted

Weighted average common share outstanding

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

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ DEFICIT

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT

Shareholder’s

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$ ( 49,931,012 )

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

Debt exchanged for common shares

Series C Preferred shares issued as dividend

Issuance of shares, net of $ 121,746 issuance

Debt exchanged for common

Series C Preferred shares

issued as dividend

Stock based compensation

5 unchanged sentences

$ ( 50,514,954 )

Issuance of shares, net of $ 75,919 issuance

Debt exchanged for common

Series C Preferred shares

issued as dividend

Series C penalty shares

Redemption of Series C shares

Stock based compensation

Balance at August 31,

$ 112,919,936

$ ( 160,357,755 )

$ ( 47,330,891 )

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

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT

Shareholder’s

3 unchanged sentences

Shareholders’

at February 28, 2026

Balance at February 28, 2026

$ 117,803,027

1 unchanged sentence

$ ( 53,211,087 )

of shares, net of $ 77,391 issuance costs

exchanged for common shares

fee returnable

of Series C on conversion to common shares

of Series C shares

C Preferred shares issued as dividend

based compensation

Issuance of shares, net of $ 75,391 issuance

Debt exchanged for common

Commitment fee issuable

Commitment fee issued

Commitment fee returnable

Redemption of Series C

on conversion to common shares

Issuance of Series C shares

Series C Preferred shares

issued as dividend

Stock based compensation

Rounding shares

( 5,715,838 )

at May 31, 2026

Balance at May 31,

$ 120,717,508

1 unchanged sentence

$ ( 56,104,710 )

$ 120,717,508

$ ( 176,931,052 )

$ ( 56,104,710 )

Issuance of shares, net of $ 41,916

issuance costs *

Debt exchanged for common

Debt conversions

Series C conversions

Series C Preferred shares

issued as dividend

To reallocate deemed dividend **

Commitment fee shares returned

( 14,100,000 )

Stock based compensation

( 6,838,473 )

income (loss )

( 6,838,473 )

at August 31, 2026

$ 122,283,195

$ ( 184,084,880 )

$ ( 61,690,773 )

$ 122,283,195

$ ( 184,084,880 )

$ ( 61,690,773 )

$ 41,916 issuance costs including 2,500,000 commitment fees

shares at a value of $ 16,500

Redemption from conversion of Series C shares to common shares

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

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS FROM OPERATING

August 31, 2026

August 31, 2025

CASH FLOWS USED IN OPERATING

$ ( 12,554,310 )

$ ( 3,830,953 )

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

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Amortization of debt discounts

Loss on settlement of debt

Derivative liability loss

(Gain) loss on settlement

( 4,370,185 )

Increase (decrease) in

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Accounts receivable

Prepaid expenses and deposits

Prepaid expenses

Deposit on right of use

Device parts inventory

( 1,283,861 )

Accounts payable and accrued

Customer deposits

Operating lease liability

Deferred compensation for

( 1,004,917 )

Operating lease liabilities

Current portion of deferred

variable payment obligations for payments

variable payment obligation for payments

interest payable

2 unchanged sentences

( 5,400,554 )

CASH FLOWS FROM INVESTING

CASH FLOWS USED IN INVESTING

Purchase of fixed assets

3 unchanged sentences

Share proceeds net of issuance

Proceeds from loans payable

Repayment of loans payable

( 1,178,538 )

Proceeds on issuance of

Series C shares

Proceeds from loans payable

of loans payable

Redemption of Series

cash provided by financing activities

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paid for income taxes

Noncash investing and financing

from device parts inventory to fixed assets and revenue earning devices

of notes payable and accrued interest for common shares

applied to face value of loan

of Series C shares to common shares

C preferred shares issued as dividend

Noncash investing and financing activities:

from device parts inventory to revenue earning devices

discount from derivative liabilities

of debt and accrued interest for common shares

of Series C shares for common shares

of note payable for common stock

fee shares as debt discount

of use asset for lease liability

C preferred shares issued as dividend

applied to face value of the loan

C penalty shares issued

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

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to continue as a going concern.

the three months ended May 31, 2026, the Company had negative cash flow from operating activities of $ 2,759,307 .

As of May 31, 2026,

the Company has an accumulated deficit of $ 176,931,052 , and negative working capital of $ 41,885,156 .

Management does not anticipate having

positive cash flow from operations in the near future.

These factors raise a substantial doubt about the Company’s ability to continue

as a going concern for the twelve months following the issuance of these financial statements.

Company does not have the resources currently to repay all its credit and debt obligations, make any payments in the form of dividends

the six months ended August 31, 2026, the Company had negative cash flow from operating activities of $ 4,820,842 .

As of August 31, 2026, the Company has an accumulated deficit of $ 184,084,880 ,

and negative working capital of $ 55,894,870 .

Management does not anticipate having positive cash flow from operations (according to the Condensed Consolidated Statement of Cash

Flows) in the near future.

These factors raise a substantial doubt about the Company’s ability to continue as a going concern

for the twelve months following the issuance of these financial statements.

Company does not have the resources at this time to repay all its credit and debt obligations, make any payments in the form of dividends

to its shareholders or fully implement its business plan.

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is committed to raising funds.

There is no assurance that management will be able to raise funds nor can we provide assurance that these

possible raises may not have dilutive effects.

On June 23, 2026, the Company entered into an equity financing agreement whereby an investor

will purchase up to $ 10,000,000 of the Company’s common stock at a discount over a three-year period.

There still remains $ 10 million

left to issue under this arrangement.

Management believes that it has the necessary support to continue operations by continuing its

funding methods in the following ways:

There is no assurance that management will be able to raise funds nor can we provide assurance that

these possible raises may not have dilutive effects.

On June 23, 2026, the Company entered into an equity financing agreement

whereby an investor will purchase up to $ 10,000,000

of the Company’s common stock at a discount over a three-year period.

There still remains approximately $ 9.8

million left to issue under this arrangement.

Management believes that it has the necessary support to continue operations by

continuing its funding methods in the following ways:

growing revenues, through equity proceeds, and issuing debt.

Management has had

many recent conversations with the Company’s primary debt holder and believes that the non-convertible debt on the balance sheet

will be extended.

Management notes that non-convertible debt on the books has been extended by this debt holder twice in the past and

notes that this debt holder has been a strong supporter of the Company.

Management is in

talks with the Company’s primary debt holder to extend the maturity dates on most of its non -convertible debt.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

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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 June 9, 2026.

on Form 10-K/A as filed on June 9, 2026.

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

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

(formerly Robotic

Assistance Devices Mobile, Inc.), Robotic Assistance Devices Lanka (Private) Limited 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 three months ended May 31, 2026, are not necessarily indicative of the results

The results of operations for the six months ended August 31, 2026, are not necessarily indicative of the results

that may be expected for the entire year.

5 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, 2026 there were $ 35,722,326 of loans payable, $ 32,466,506 or 91 % of these loans to companies controlled by one individual.

February 28, 2026 there were $ 33,672,294 loans payable, $ 32,178,506 or 96 % of these loans to companies controlled by one individual.

August 31, 2026 there were $ 37,212,329 of loans payable, $ 33,728,024 or 91 % of these loans to companies controlled by one individual.

At February 28, 2026 there were $ 33,672,294 loans payable, $ 32,178,506 or 96 % 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.

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

was an allowance of $ 240,000 and $ 170,000 provided as of May 31, 2026, and February 28, 2026, respectively.

For the three months ending

May 31, 2026, two customers account for 23 % of total accounts receivable.

For the three months ending May 31, 2025, three customers account

for 53 % of total accounts receivable

was an allowance of $ 210,000 and $ 170,000 provided as of August 31, 2026 and February 28, 2026, respectively.

For the six months ended

August 31, 2026, two customers account for 21 % of total accounts receivable.

For the six months ended August 31, 2025, two customers

account for 41 % 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, 2026, and February 28, 2026, there was a valuation reserve of $ 175,000 and $ 175,000 , respectively.

As of August 31, 2026 and February 28, 2026 there was a valuation reserve of $ 445,987 and $ 175,000 , respectively.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

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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, 2026 and February 28, 2026, the Company had no deferred development costs.

At August 31, 2026 and February 28, 2026, 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

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

For the three months

ended May 31, 2026, two customers accounted for 36 % of total revenue and for the three months ended May 31, 2025, two customers accounted

For the six months

ended August 31, 2026, two customer accounted for 33 % of total revenue.

For the six months ended August 31, 2025 , one customer accounted

for 47 % of total revenue

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in fair value of its financial instruments classified as liabilities are recorded as other income (expenses).

and identification

Company does not use derivative instruments to hedge cash flow, market or foreign currency risk.

It evaluates its financial instruments,

including convertible notes payable, warrants, convertible preferred stock and other financing arrangements, to determine whether they

are, or contain features that qualify as, derivatives under ASC 815, Derivatives and Hedging .

Derivatives that do not qualify

for equity classification are recognized as liabilities at fair value.

instruments, including warrants.

The Company first applies ASC 480, Distinguishing Liabilities from Equity .

outside ASC 480 are assessed under ASC 815-40-15 (indexation to the Company’s own stock) and ASC 815-40-25 (equity classification

Warrants that fail either test are classified as derivative liabilities.

features in hybrid instruments.

Conversion, redemption, put and default features embedded in notes, preferred stock and loan

agreements are bifurcated when (a) their economic characteristics and risks are not clearly and closely related to the host contract,

(b) the hybrid instrument is not remeasured at fair value through earnings, and (c) a separate instrument with the same terms would

be a derivative (ASC 815-15-25-1).

Variable-price

conversion features.

Conversion features priced at a discount to the Company’s market price, or that can otherwise require

a variable number of shares, generally are not indexed to the Company’s own stock and are bifurcated as derivative liabilities.

For Series C or Series F preferred stock, the Company determines whether the host contract is more akin to debt or equity

based on all stated and implied terms (ASC 815-15-25-17A through 25-17D).

It then assesses whether conversion and redemption features

are clearly and closely related to that host.

default and put features.

Contingent puts, default penalties, redemption premiums and default-interest provisions are evaluated

under ASC 815-15-25-40 through 25-43.

Features that can accelerate repayment at a substantial premium are generally bifurcated.

Classification

of each instrument is reassessed at every reporting date.

liabilities are recognized at fair value on the date the instrument is issued or, if later, the date a feature first qualifies as a derivative

When a derivative is bifurcated from a debt host, proceeds are allocated first to the derivative liability and any

liability-classified warrants at fair value.

The residual is allocated to the host debt.

The resulting discount, together with debt issuance costs, is amortized to interest expense over the term of the debt

using the effective interest method.

When the fair value of derivative liabilities at issuance exceeds the net proceeds received, the excess is recognized

immediately in earnings as derivative liability loss.

When a bifurcated feature is embedded in preferred stock, the carrying amount of the preferred stock is reduced by the

fair value of the derivative at issuance.

measurement and classification

liabilities are remeasured to fair value at each reporting date.

Changes in fair value are recognized in earnings as “Derivative

liability gain (loss)” within other income (expense).

None of the Company’s derivatives are designated as hedging instruments.

liabilities are classified as current or noncurrent based on whether net-cash settlement or conversion could be required within 12 months

of the balance sheet date.

extinguishment and reclassification

On conversion under the original terms, the bifurcated derivative is remeasured to fair value at the conversion date, with the change

recognized in earnings.

The carrying amount of the host instrument, net of unamortized discount, and the derivative’s fair

value are then reclassified to stockholders’ equity.

No gain or loss is recognized.

or extinguishment.

When debt is settled other than by conversion, the derivative is remeasured to fair value and derecognized.

The difference between the reacquisition price and the combined carrying amount of the debt and derivative is recognized as a gain

or loss on extinguishment (ASC 470-50-40-2).

Modifications

and inducements.

Modifications, exchanges and induced conversions are evaluated under ASC 470-50 and ASC 470-20-40.

Liability-classified warrants are remeasured to fair value on the exercise date and reclassified to additional paid-in

to liability.

A contract that no longer qualifies for equity classification, for example because of insufficient authorized shares,

is reclassified to a liability at its fair value on that date.

The difference from its carrying amount is recorded in equity (ASC

815-40-35-10).

A contract that later qualifies for equity classification is remeasured to fair value through earnings and reclassified

to equity at that amount.

the Company cannot conclude that it has sufficient authorized and unissued shares to settle all potentially dilutive contracts, it applies

a sequencing policy under ASC 815-40-35-12.

Authorized shares are allocated to contracts by issuance date, earliest first.

that cannot be covered by the remaining authorized shares are classified as liabilities.

variable-price conversion features without a floor can require an indeterminate number of shares, contracts issued after such an instrument

are classified as liabilities while it remains outstanding.

Share-based payment awards accounted for under ASC 718 are excluded from

the sequencing policy (ASC 815-40-35-13).

value measurement

liabilities are measured at fair value under ASC 820, Fair Value Measurement , using the Monte Carlo option pricing model.

significant inputs are unobservable, these are Level 3 measurements.

price of the Company’s common stock on OTC Markets at the measurement date

or conversion price

exercise price;

for variable-price features, the price under the conversion formula at the measurement date

contractual term of the instrument

volatility of the Company’s common stock over a period matching the term

Treasury yield for a matching term

the Company has not paid and does not expect to pay dividends

volatility is the most significant unobservable input;

higher volatility increases fair value.

A roll-forward of Level 3 derivative liabilities

is presented in Note 3, Fair Value of Financial Instruments.

Value of Financial Instruments

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Value Measurement Using

August 31, 2026

Derivative liabilities

compensation plan payable – revaluation of equity awards payable in Series G shares

1 unchanged sentence

compensation plan payable – revaluation of equity awards payable in Series G shares

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

May 31, 2026 and May 31, 2025 with corresponding adjustments to incentive compensation plan payable.

the incentive compensation plan referred to above , the Company recorded stock based compensation of $ 0

for the six months ended August 31, 2026 and August 31, 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,

14 unchanged sentences

nature with regards to earnings per share.

Adopted Accounting Pronouncements

2023-07 – Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures

November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

amendments require enhanced disclosures about significant segment expenses and other segment items, require disclosure of the title and

position of the chief operating decision maker (“CODM”), explain how the CODM uses reported measures of segment profit or

loss to assess performance and allocate resources, and expand interim disclosure requirements.

The amendments apply to entities with

a single reportable segment as well as entities with multiple reportable segments.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Company adopted ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , during fiscal 2025.

The standard requires enhanced disclosures regarding segment expenses and CODM information and applies to entities with a single reportable

Adoption of the standard impacted the Company’s segment reporting disclosures only and did not affect its consolidated

financial position, results of operations, or cash flows.

issued accounting pronouncement not yet effective

2024-04—Debt with Conversion and Other Options (Topic 470-20):

Induced Conversions of Convertible Debt Instruments

November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-04, Debt with Conversion and Other Options

(Subtopic 470-20):

Induced Conversions of Convertible Debt Instruments .

The amendments clarify the requirements for determining whether

certain settlements of convertible debt instruments should be accounted for as induced conversions or as debt extinguishments.

the amended guidance, an induced conversion requires that the inducement offer provide the holder, at a minimum, the consideration issuable

under the existing conversion privileges of the instrument.

amendments are effective for annual reporting periods beginning after December 15, 2025, including interim reporting periods within those

fiscal years.

Early adoption is permitted.

The Company is currently evaluating the impact that adoption of this guidance will have on

its consolidated financial statements and related disclosures.

2025-05—Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract

July 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-05, Financial Instruments—Credit Losses

Measurement of Credit Losses for Accounts Receivable and Contract Assets .

The amendments refine the guidance in ASC

326 related to the measurement of expected credit losses for accounts receivable and contract assets arising from revenue transactions

accounted for under ASC 606.

The update clarifies the application of the current expected credit loss (“CECL”) model to such

assets, including the use of practical expedients and considerations in estimating expected credit losses over the contractual term of

amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those fiscal

years, with early adoption permitted.

The Company is currently evaluating the impact of adopting ASU 2025-05 on its consolidated financial

statements and related disclosures.

REVENUE FROM CONTRACTS WITH CUSTOMERS

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SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS

Six Months Ended

Device rental activities

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

is a summary of our lease assets and liabilities at May 31, 2026 and February 28, 2026.

is a summary of our lease assets and liabilities at August 31, 2026 and February 28, 2026.

SCHEDULE OF LEASE ASSETS AND LIABILITIES

Classification

February 28, 2026

Current Operating Lease Liability

8 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 $ 67,372 and $ 58,219 for the three months ended May 31, 2026 and May 31, 2025, respectively.

expense and operating lease cost was $ 67,327 and $ 134,699 for the three and six months ended August 31, 2026, respectively, and $ 62,578

and $ 120,797 for the three and six months ended August 31, 2025, respectively.

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

9 unchanged sentences

The Company values the Nightingale Intelligent Systems, Inc.’s shares and warrants

at $ 50,000 bringing total investments at cost to $ 100,000 at May 31, 2026 and February 28, 2026.

at $ 50,000 bringing total investments at cost to $ 100,000 at August 31, 2026 and February 28, 2026.

REVENUE EARNING DEVICES

5 unchanged sentences

( 3,257,668 )

the three months ended May 31, 2026, the Company made total additions to revenue earning devices of $ 276,717 which were transfers from

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

were transfers from inventory

and amortization for the years ended May 31, 2026, and May 31, 2025, are as follows:

the three and six months ended August 31, 2026 the Company made total additions to revenue earning devices of $ 375,393 and $ 652,110 ,

respectively, which were transfers from inventory.

During 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.

and amortization for the six months ended August 31, 2026, and August 31, 2025, are as follows:

SCHEDULE OF DEPRECIATION AND AMORTIZATION

and Amortization RED

and Amortization

Three Months Ended

August 31, 2025

Cost of Goods Sold

1 unchanged sentence

Total Depreciation and

Amortization RED

Amortization of Revenue Earning Devices

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

12 unchanged sentences

accumulated depreciation

the three months ending May 31, 2026, the Company made additions of $ 15,600 .

During the three months ending May 31, 2025, the Company

made additions of $ 46,071 of which $ 22,347 were transfers from inventory with remaining additions of $ 23,724 .

and amortization for the years ended May 31, 2026, and May 31, 2025, are as follows:

the three months ended August 31, 2026, the Company made additions of $ 4,892 of which $ 4,892 were transfers from inventory.

six months ended August 31, 2026, the Company made additions of $ 20,492 of which $ 4,892 were transfers from inventory with remaining

additions of $ 15,600 .

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

from inventory.

During the 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 .

and amortization for the six months ended August 31, 2026, and August 31, 2025, are as follows:

SCHEDULE OF DEPRECIATION AND AMORTIZATION IN OPERATING EXPENSES

2 unchanged sentences

Total Depreciation and

Amortization included in operating expenses

Included in operating expenses

DEFERRED VARIABLE PAYMENT OBLIGATION

66 unchanged sentences

As of March 1, 2021 as a result of the amendment with the first investor noted

below, this aggregate asset disposition % was reduced from 43.77 % to 33.77%.

This aggregate asset disposition % was reduced from 43.77 % to 33.77%.

Payments first become payable on June 30, 2019 (unless otherwise indicated) based on the quarterly Revenues for the quarter ended May

31, 2019 and accrue every quarter thereafter.

As of May 31, 2026, the Company has accrued $ 3,459,840 in Payments of which $ 2,202,545

As of August 31, 2026, the Company has accrued $ 3,781,263 in Payments of which $ 2,510,325

are in arrears.

1 unchanged sentence

No notices have been received by the Company.

The Company has recorded cumulative interest of 6 % interest totaling $ 204,427 commencing

this quarter, on the balance in arrears, and will continue to adjust quarterly.

The Company has recorded cumulative interest, on the balance in arrears, of 6 % interest

this quarter of $ 37,655 all totaling $ 242,081 and will continue to adjust quarterly.

March 1, 2021, the first investor referred to above whose aggregate investment is $ 1,925,000 revised his agreements as follows:

1 unchanged sentence

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 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.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

Company retains total involvement in the generation of cash flows from these revenue streams that form the basis of the payments to be

1 unchanged sentence

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

As of May 31, 2026, and February 28, 2026, the long-term balances other than Payments already owed is the cash received of $ 2,525,000

As of August 31, 2026, and February 28, 2026, 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, 2026, and year ended February 28, 2026, 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, 2026 and February 28,

both the three months and six months ended August 31, 2026 and year ended February 28, 2026, 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,

2026 and February 28, 2026.

RELATED PARTY TRANSACTIONS

both the three months ended May 31, 2026, and May 31, 2025, the Company had repayments of net advances of $ 129,687 and $ 0 , respectively.

At May 31, 2026, the loan payable-related party was $ 331,946 and $ 461,633 at February 28, 2026.

Included in the balance due to the related

party at May 31, 2026, is $ 255,414 of deferred salary and interest, $ 157,513 of which bears interest at 12 %.

As of February 28, 2026,

included in the balance due to the related party is $ 285,638 of deferred salary all of which bears interest at 12 %.

The accrued interest

included in the loan at May 31, 2026, and February 28, 2026, was $ 84,956 , and $ 79,268 , respectively.

the three months ended May 31, 2026, the Company paid out gross payments to the CEO of $ 71,105 offset by a bonus accrual of $ 250,000 ,

which yields a net change of $ 178,895 relating to deferred compensation for CEO.

the three months ended August 31, 2026, the Company had net advances from its loan payable-related party of $ 12,448 and for the six months

ended August 31, 2026, the Company had net repayments from its loan payable-related party of 117,239 .

For the three months and six months

ended August 31, 2025 , the Company had no repayments of net advances from its loan payable-related party.

At August 31, 2026 the loan

payable-related party was $ 344,394 and $ 461,633 at February 28, 2026.

Included in the balance due to the related party at August 31,

2026 is $ 267,862 of deferred salary and interest, $ 159,263 of which bears interest at 12 %.

As of February 28, 2026, included in the balance

due to the related party is $ 285,638 of deferred salary all of which bears interest at 12 %.

The accrued interest included in the loan

at August 31, 2026, and February 28, 2026, was $ 89,699 , and $ 79,268 , respectively.

the six months ended August 31, 2026, the Company paid out gross payments to the CEO of $ 359,888 offset by a bonus accrual of $ 500,000 ,

which yields a net increase of $ 140,112 relating to deferred compensation for CEO.

This was all in accordance with a December 2023 board

1 unchanged sentence

$ 1.5 million in compensation.

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

of deferred compensation for CEO was $ 1,990,751 and $ 1,811,856 at May 31, 2026, and February 28, 2026, respectively

the three months ended May 31, 2026, the Company accrued $ 0 (three months ended May 31, 2025-$ 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.

On May 31, 2026, and February 28, 2026, there was $ 5,500,000 and $ 5,500,000 incentive compensation payable.

the three months ended May 31, 2026, and 2025, the Company was charged $ 390,130 and $ 736,875 , respectively for fees for research and

The balance of deferred compensation for CEO was $ 1,951,968 and $ 1,811,856 at August 31, 2026, and February

28, 2026, 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 28, 2025.

the three and six months ended August 31, 2026, the Company accrued $ 0 (three and six months ended August 31 2025-$ 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, 2026, and February 28, 2026, there was $ 5,500,000 and $ 5,500,000 of incentive compensation payable.

the three months ended August 31, 2026 and 2025, the Company was charged $ 555,186 and $ 598,277 , respectively for fees for research and

development from a company partially owned by a principal shareholder.

the six months ended August 31, 2026 and 2025, the Company was charged $ 945,316 and $ 1,335,152 , 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 May 31, 2026, and February 28, 2026,

As at both August 31, 2026, and February

28, 2026, the balance due to this company was $ 76,532 and $ 160,557 , respectively.

2 unchanged sentences

LOANS PAYABLE

payable at May 31, 2026 consisted of the following:

payable at August 31, 2026 consisted of the following:

SCHEDULE OF LOANS PAYABLE

July 18, 2016

July 18, 2017

Promissory note

December 10, 2020

March 1, 2027

Promissory note (2)

December 10, 2020

March 1, 2027

Promissory note (3)

December 14, 2020

March 1, 2027

Promissory note (5)

December 30, 2020

March 1, 2027

Promissory note (6)

January 1, 2021

March 1, 2027

Promissory note (7)

January 1, 2021

March 1, 2027

Promissory note (8)

January 14, 2021

March 1, 2027

Promissory note (9)

February 22, 2021

March 1, 2027

Promissory note (10)

March 1, 2021

March 1, 2027

Promissory note (11)

Promissory note (12)

September 14, 2027

Promissory note (14)

July 28, 2022

March 1, 2027

Promissory note (15)

August 30, 2027

August 30,2027

Promissory note (16)

September 7, 2022

March 1, 2027

Promissory note (17)

September 8, 2022

March 1, 2027

Promissory note (18)

October 13, 2022

March 1, 2027

Promissory note (19)

October 31, 2026

Promissory note (20)

November 9, 2022

October 31, 2026

Promissory note (20)

November 10, 2022

October 31, 2026

Promissory note (20)

November 15, 2022

October 31, 2026

Promissory note (20)

January 11, 2023

October 31, 2026

Promissory note (20)

February 6, 2023

October 31, 2026

Promissory note (20)

October 31, 2026

Promissory note (20)

April 20, 2023

October 31, 2026

Promissory note (20)

October 31, 2026

Promissory note (20)

October 27, 2023

October 31, 2026

Promissory note (20)

November 30, 2023

April 30, 2027

Purchase Agreement (21)

March 8, 2024

August 30, 2027

Purchase Agreement (22)

July 26, 2025

July 26, 2026

Promissory note (23)

August 7,2025

August 7,2026

Promissory note (24)

August 25, 2025

August 25, 2026

Promissory note (25)

Agreement (21)

August 30, 2027

Future Receivables Purchase

and Sale Agreement (26)

September 25, 2025

September 25, 2026

Promissory note (27)

Promissory note (28)

November 6, 2025

November 6, 2026

Promissory note (29)

Agreement (22)

November 15, 2026 E

Receivables Purchase and Sale Agreement (26)

November 15, 2026 E

October 30, 2026

November 6, 2026

November 24, 2026

Promissory note (30)

December 9, 2026

December 27, 2026

Promissory note (31)

December 17, 2025

September 23, 2026

Business loan (32)

December 22, 2025

December 22, 2026

Convertible note (33)

December 27, 2025

December 27, 2026

Promissory note (34)

January 12, 2027

January 27, 2027

Promissory note (35)

January 27, 2026

January 27, 2027

Promissory note (36)

February 2, 2027

February 24, 2027

Promissory note (37)

February 19, 2026

February 19, 2027

Convertible note (38)

February 24, 2026

February 24, 2027

Promissory note (39)

March 16, 2027

Promissory note (13)

March 25, 2026

March 25, 2027

Convertible note (40)

March 25, 2026

Convertible note (41)

April 9, 2026

January 15, 2027

Convertible note (42)

April 13, 2026

April 13, 2027

Future Receivables Purchase

and Sale Agreement (43)

April 20, 2026

April 20, 2027

Convertible note (44)

January 15, 2027

Convertible note (45)

Convertible Note (46)

Convertible Note (47)

portion of loans payable

( 27,769,326 )

Receivables Purchase and Sale Agreement (43)

current portion of loans payable

discount on non-current loans payable

loans payable, net of discount

Current 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

A On June 15, 2026

the Company and lender entered into a Loan Amendment Agreement whereby it was agreed that simple interest was to be calculated from the

loan issuance date through to February 28, 2026 and commencing March 1, 2026 compounded on the respective principal and interest balance

at February 28, 2026.

C Compounding annually

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

Convertible notes

Loans payable

Total Loans Payable

June 15, 2026 the Company and lender entered into a Loan Amendment Agreement whereby it was agreed that simple interest was to be

calculated from the loan issuance date through to February 28, 2026 and commencing March 1, 2026 compounded on the respective principal

and interest balance at February 28, 2026.

August 24, 2026 the Company and lender agreed to extend all the indicated notes above to November 15, 2026 in the best interest of

all Parties for no fee.

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

32 unchanged sentences

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

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 115 , with an unamortized discount of $ 24,885 at May 31, 2026.

For the six months

ended August 31, 2026, the Company recorded amortization expense of $ 5,679 , with an unamortized discount of $ 19,321 at August 31,

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

3 unchanged sentences

maturity date from December 14, 2023 date to March 1, 2027.

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

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 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.

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

$ 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 .

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,

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 .

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

totaling $ 108,425 was exchanged for this promissory note of $ 145,000 .

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, 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 .

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.

is fully amortized.

Through an exchange agreement on February 11, 2025, the Company repaid $ 162,000 in principal st through the issuance

of 600,000 common shares.

On March 28, 2025 the Company entered into an exchange agreement where the holder can exchange all or part

of the principal and interest of the note into common shares at an exchange amount of 90 % of the previous 5 day’s lowest VWAP

On March 5, 2025 the Company repaid $ 150,500 in loan principal as well as $ 275,000 in accrued interest (all totaling $ 425,500 )

was repaid on March 5, 2025 through the issuance of 1,850,000 common shares at a fair value of $ 444,000 with a loss on settlement

of $ 18,500 .

was removed with a corresponding

adjustment to accumulated deficit.

unamortized discount remained.

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.

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 $ 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.

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.

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

totaling $ 108,425

was exchanged for this promissory

note of $ 145,000 .

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

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.

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.

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 .

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.

unamortized discount remained.

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.

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.

is fully amortized.

Through an exchange agreement on February 11, 2025, the Company repaid $ 162,000

in interest through the issuance

common shares.

On March 28, 2025

the Company entered into an exchange agreement where the holder can exchange all or part of the principal and interest of the note into

common shares at an exchange amount of 90 %

of the previous 5 day’s lowest VWAP price.

On March 5, 2025 the Company repaid $ 150,500

in loan principal as well as $ 275,000

in accrued interest (all totaling

was repaid on March 5, 2025 through the issuance of 1,850,000

common shares at a fair value of

with a loss on settlement of $ 18,500 .

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

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

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

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 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.

unamortized discount remained.

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.

The loan is fully amortized.

On November 24, 2025, the Company entered into an exchange agreement where the holder

can exchange all or part of the principal and interest of the note into common shares at an exchange amount of 90 % of the previous

5 day’s lowest bid price.

For the three months ending May 31, 2026, the Company exchanged $ 80,000 of accrued interest for 5,000,000

common at a fair value of $ 100,000 with a loss on settlement of $ 20,000 .

is fully amortized.

On November 24, 2025, the Company entered into an exchange agreement where the holder can exchange all or part of

the principal and interest of the note into common shares at an exchange amount of 90 %

of the previous 5 day’s lowest bid price.

For the three months ending May 31, 2026, the Company exchanged $ 80,000

of accrued interest for 5,000,000

common at a fair value of $ 100,000

with a loss on settlement of $ 20,000 .

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

Cash proceeds of $ 5,400,000

were received.

The note balance of

includes an original issue discount

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

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.

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.

On March 28, 2025 the Company

entered into an exchange agreement where the holder can exchange all or part of the principal and interest of the note into common

shares at an exchange amount of 90 % of the previous 5 day’s lowest VWAP price.

For the year ended February 28, 2026, the Company

has issued 36,500,000 common shares at fair market value of $ 4,365,500 to repay $ 3,840,500 in accrued interest with a loss on settlement

of debt of $ 525,000 .

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 .

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.

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

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 amortized.

note was again extended to March 1, 2025.

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.

28, 2025 the Company entered into an exchange agreement where the holder can exchange all or part of the principal and interest of the

note into common shares at an exchange amount of 90 %

of the previous 5 day’s lowest VWAP price.

For the year ended February 28, 2026, the Company has issued 36,500,000

common shares at fair market value

of $ 4,365,500

to repay $ 3,840,500

in accrued interest with a loss on

settlement of debt of $ 525,000 .

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

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

at an exercise price of $ .0164

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.

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.

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.

unamortized discount remained.

loan is fully amortized.

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.

24, 2025, the Company entered into an exchange agreement where the holder can exchange all or part of price the principal and interest

of the note into common shares at an exchange amount of 90 % of the previous 5 day’s lowest bid price.

For the year ended February

28, 2026 the holder exchanged $ 1,416,000 in accrued interest for 25,000,000 common shares at a fair value of $ 1,680,000 with a loss

on settlement of $ 264,000 .

of the note into common shares at an exchange amount of 90 %

of the previous 5 day’s lowest bid price.

For the year ended February 28, 2026 the holder exchanged $ 1,416,000

in accrued interest for 25,000,000

common shares at a fair value of

with a loss on settlement of $ 264,000 .

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.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 3,680 , with an unamortized discount of $ 16,320 at May 31, 2026.

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

to accumulated deficit.

A $ 66,846 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization

expense of $ 2,455 , with an unamortized discount of $ 13,870 at May 31, 2026.

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.

On November 24, 2025,

the Company entered into an exchange agreement where the holder can exchange all or part of the principal and interest of the note

into common shares at an exchange amount of 90 % of the previous 5 day’s lowest bid price.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 8,440 ,

with an unamortized discount of $ 11,560

at August 31, 2026.

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 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 to accumulated deficit.

unamortized discount remained.

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.

On November 24, 2025, the Company entered into an exchange agreement where the holder can exchange all

or part of the principal and interest of the note into common shares at an exchange amount of 90 %

of the previous 5 day’s lowest bid price.

the six months ended August 31, 2026, the Company recorded amortization expense of $ 4,989 ,

with an unamortized discount of $ 11,337

August 31, 2026.

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.

November 29, 2023, the parties extended the maturity date from July 28, 2023, to March 1, 2025, with all other terms and conditions remaining

This note has been

fully amortized.

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.

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.

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

30, 2025, to August 30, 2027, with all other terms and conditions remaining the same.

On November 24, 2025, the Company entered into

an exchange agreement where the holder can exchange all or part of the principal and interest of the note into common shares at an

exchange amount of 90 % of the previous 5 day’s lowest bid price.

April 16, 2025, the parties again extended the maturity date from August 30, 2025, to August 30, 2027, with all other terms and conditions

remaining the same.

24, 2025, the Company entered into an exchange agreement where the holder can exchange all or part of the principal and interest of the

note into common shares at an exchange amount of 90 %

of the previous 5 day’s lowest bid price.

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.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

has been fully amortized.

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.

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.

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.

has been fully amortized.

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.

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.

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

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.

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

discount of $ 500,000 .

Principal and interest due at maturity.

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

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.

has been fully amortized.

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 $ 500,000 .

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

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.

On November 24, 2025, the

Company entered into an exchange agreement where the holder can exchange all or part of the principal and interest of this secured

loan agreement into common shares at an exchange amount of 90 % of the previous 5 day’s lowest bid price.

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,

2026, the Company recorded amortization expense of $ 5,243 , with an unamortized discount of $ 9,185 at May 31, 2026.For the three months

ending May 31, 2026, the Company exchanged $ 107,000 of principal and $ 222,900 of accrued interest totaling $ 329,900 for 20,000,000

common at a fair value of $ 442,800 with a loss on settlement of $ 112,900 .

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

On March 1, 2024, the unamortized relative fair value discount of $ 288,513 was removed with a corresponding adjustment

to accumulated deficit.

A $ 48,126 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization

expense of $ 5,269 , with an unamortized discount of 9,233 at May 31, 2026.

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 .

On March 1, 2024, the unamortized relative fair value discount of $ 291,694 was removed with a corresponding adjustment to accumulated

A $ 48,290 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization expense

of $ 5,288 , with an unamortized discount of $ 8,957 at May 31, 2026.

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 .

On March 1, 2024, the unamortized relative fair value discount of $ 287,814 was removed with a corresponding adjustment to accumulated

A $ 47,976 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization expense

of $ 5,528 , with an unamortized discount of $ 8,927 at May 31, 2026.

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 .

On March 1, 2024, the unamortized relative fair value discount of $ 286,813 was removed with a corresponding adjustment to accumulated

A $ 48,124 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization expense

of $ 5,269 , with an unamortized discount of $ 9,233 at May 31, 2026.

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 .

On March 1, 2024, the unamortized relative fair value discount of $ 288,342 was removed with a corresponding adjustment to accumulated

A $ 48,294 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization expense

of $ 5,288 , with an unamortized discount of $ 9,268 at May 31, 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 ,

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

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 10,761 ,

with an unamortized discount of $ 3,667

at August 31, 2026.

For the six months ending

August 31, 2026, the Company exchanged $ 332,590

of principal and $ 237,400

of accrued interest totaling $ 589,990

for 77,000,000

common at a fair value of $ 860,800

with a loss on settlement of $ 298,810 .

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 .

On March 1, 2024, the unamortized relative fair value discount of $ 286,821 was removed with a corresponding adjustment to accumulated

A $ 48,409 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization expense

of $ 5,302 , with an unamortized discount of $ 9,293 at May 31, 2026.

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 .

On March 1, 2024, the unamortized relative fair value discount of $ 294,824 was removed with a corresponding adjustment to accumulated

A $ 48,777 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization expense

of $ 5,343 , with an unamortized discount of $ 9,368 at May 31, 2026.

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 .

On March 1, 2024, the unamortized relative fair value discount of $ 348,831 was removed with a corresponding adjustment to accumulated

A $ 49,978 unamortized discount remained For the three months ended May 31, 2026, the Company recorded amortization expense of

$ 5,480 , with an unamortized discount of $ 9,616 at May 31, 2026.

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 six a corresponding adjustment to accumulated

A $ 48,611 unamortized discount remained.

For the three months ended May 31, 2026, the Company recorded amortization expense

of $ 5,325 , with an unamortized discount of $ 9,333 at May 31, 2026.

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.

9, 2022, $ 400,000

loan, original issue discount of $ 50,000

Series F Preferred Share warrants having a relative fair value

of $ 299,750 .

On March 1, 2024, the unamortized relative fair value discount of $ 288,513

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 10,816 ,

with an unamortized discount of $ 3,686

at August 31, 2026.

10, 2022, $ 400,000

loan, original issue discount of $ 50,000 ,

Series F Preferred Share warrants having a relative fair value

of $ 302,020 .

On March 1, 2024, the unamortized relative fair value discount of $ 291,694

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 10,854 ,

with an unamortized discount of $ 7,793

at August 31, 2026.

15, 2022, $ 400,000

loan, original issue discount of $ 50,000 ,

Series F Preferred Share warrants having a relative fair value

of $ 299,959 .

On March 1, 2024, the unamortized relative fair value discount of $ 287,814

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 11,057 ,

with an unamortized discount of $ 3,399

at August 31, 2026.

11, 2023, $ 400,000

loan, original issue discount of $ 50,000 ,

Series F Preferred Share warrants having a relative fair value

of $ 299,959 .

On March 1, 2024, the unamortized relative fair value discount of $ 286,813

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 10,815 ,

with an unamortized discount of $ 3,687

at August 31, 2026.

6, 2023, $ 400,000

loan, original issue discount of $ 50,000 ,

Series F Preferred Share warrants having a relative fair value

of $ 299,959 .

On March 1, 2024, the unamortized relative fair value discount of $ 288,342

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 10,855 ,

with an unamortized discount of $ 3,701

at August 31, 2026.

5, 2023, $ 400,000

loan, original issue discount of $ 50,000 ,

Series F Preferred Share warrants having a relative fair value

of $ 296,245 .

On March 1, 2024, the unamortized relative fair value discount of $ 286,821

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 10,882 ,

with an unamortized discount of $ 3,712

at August 31, 2026.

20, 2023, $ 400,000

loan, original issue discount of $ 50,000 ,

Series F Preferred Share warrants having a relative fair value

of $ 302,219 .

On March 1, 2024, the unamortized relative fair value discount of $ 294,824

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 10,969 ,

with an unamortized discount of $ 3,742

at August 31, 2026.

11, 2023, $ 400,000

loan, original issue discount of $ 50,000 ,

Series F Preferred Share warrants having a relative fair value

of $ 348,983 .

On March 1, 2024, the unamortized relative fair value discount of $ 348,831

was removed with a corresponding adjustment to accumulated

unamortized discount remained.

For the six months ended August

31, 2026, the Company recorded amortization expense of $ 11,252 ,

with an unamortized discount of $ 3,844

at August 31, 2026.

27 2023, $ 400,000

loan, original issue discount of $ 50,000 ,

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 six a corresponding adjustment to accumulated

unamortized discount remained.

For the three months ended August

31, 2026, the Company recorded amortization expense of $ 10,930 ,

with an unamortized discount of $ 3,727

at August 31, 2026.

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

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 and after original 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.

Default rate of 15 %

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

The Company has repaid $ 147,000

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 extended the maturity date from April 30,

2025, to April 30, 2026, with all other terms and conditions remaining the same.

On April 30,2026, the parties extended the maturity

to April 30, 2027, with the default rate still applicable after April 30, 2025.

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.

April 16, 2025, the parties extended the maturity date from April 30, 2025, to April 30, 2026, with all other terms and conditions remaining

April 30,2026, the parties extended the maturity to April 30, 2027, with the default rate still applicable after April 30, 2025.

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

on August 8, 2024 through to August 8, 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 and after original maturity.

The August 2024 through to August 2025

payments have not been made and the note was not repaid at original maturity.

On August 8, 2025 the parties extended the maturity

to August 8, 2027 , with the default rate still applicable after August 8, 2025.

Default rate of 15 %

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

The August 2024 through to August 2025 payments

have not been made and the note was not repaid at original maturity.

August 8, 2025 the parties extended the maturity to August 8, 2027 , with the default rate still applicable after August 8, 2025.

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

4 unchanged sentences

The discount was

On August 24, 2026, the Company extended the maturity to November 15, 2026, see footnote E above.

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

4 unchanged sentences

The discount was

On August 24, 2026, the Company extended the maturity to November 15, 2026 , see footnote E above.

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

4 unchanged sentences

The discount was

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 .

For the year ended May 31, 2026, the Company

recorded amortization expense of $ 59,207 , with an unamortized discount of $ 0 at May 31, 2026.

For the year ended February 28, 2026,

On August 24, 2026, the Company extended the maturity to November 15, 2026 , see footnote E above.

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 .

For the year ended May 31, 2026, the Company recorded amortization

expense of $ 59,207 , with an unamortized discount of $ 0 at May 31, 2026.

For the year ended

28, 2026, the Company has repaid $ 617,348 .

During the three months ending May 31, 2026 the remaining balance of $ 189,952 was fully repaid.

During the six months ending August 31, 2026 the remaining balance of $ 189,952 was fully

$ 550,000 note may be pre-payable at any time.

3 unchanged sentences

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

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 12,724 , with an unamortized discount of $ 17,288 at May 31, 2026.

For the six months

ended August 31, 2026, the Company recorded amortization expense of $ 26,263 , with an unamortized discount of $ 3,749 at August 31,

On August 24, 2026, the Company extended the maturity to November 15, 2026 , see footnote E above.

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.

Principal and interest due at maturity.

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

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 6,158 , with an unamortized discount of $ 11,127 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 12,777 ,

with an unamortized discount of $ 4,558

at August 31, 2026.

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.

Principal and interest due at maturity.

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

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 6,189 , with an unamortized discount of $ 11,582 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of 12,775 ,

with an unamortized discount of $ 4,997

at August 31, 2026.

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.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 10,760 , with an unamortized discount of $ 28,536 at May 31, 2026.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 22,244 ,

with an unamortized discount of $ 17,052

at August 31, 2026.

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.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 11,888 , with an unamortized discount of $ 27,702 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 24,610 ,

with an unamortized discount of $ 14,980

at August 31, 2026.

December 17, 2025, the Company entered into a business loan secured by a general security charging all of RAD’s present and

12 unchanged sentences

Principal and interest due at maturity.

For the three months ended May 31, 2026, the Company

recorded amortization expense of $ 13,062 , with an unamortized discount of $ 32,233 at May 31, 2026.

After 180 days , the note and

interest is convertible at a conversion price of 80 % of the lowest traded price in the 15 prior trading days.

For the six months ended August 31, 2026, the Company

recorded amortization expense of $ 26,935 , with an unamortized discount of $ 18,360 at August 31, 2026.

After 180 days , the note

and interest is convertible at a conversion price of 80 % of the lowest traded price in the 15 prior trading days.

For the six months

ended 31, 2026 the lender converted $ 140,000 principal and $ 9.992 for a total of $ 149,992 of debt into 42,130,411 common shares.

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.

Principal and interest due at maturity.

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

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 5,908 , with an unamortized discount of $ 14,970 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 12,193 ,

with an unamortized discount of $ 8,685

at August 31, 2026.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

note may be pre-payable at any time.

The note balance includes an original issue discount of $ 30,000 .

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.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 7,019 , with an unamortized discount of $ 19,117 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 14,486 ,

with an unamortized discount of $ 11,650

at August 31, 2026.

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.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 4,594 , with an unamortized discount of $ 13,637 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 9,520 ,

with an unamortized discount of $ 8,711

at August 31, 2026.

note may be pre-payable at any time.

The note balance includes an original issue discount of $ 30,000 .

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.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 7,059 , with an unamortized discount of $ 21,078 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 14,572 ,

with an unamortized discount of $ 13,564

at August 31, 2026.

convertible note that may be redeemed at a premium at any time.

2 unchanged sentences

Principal and interest due at maturity.

For the three months ended May 31, 2026, the Company

recorded amortization expense of $ 5,167 , with an unamortized discount of $ 16,849 at May 31, 2026.

After 180 days , the note and interest

is convertible at a conversion price of 80 % of the lowest traded price in the 15 prior trading days.

For the six months ended August 31, 2026, the Company

recorded amortization expense of $ 10,699 , with an unamortized discount of $ 11,317 at August 31, 2026.

After 180 days , the note and

interest is convertible at a conversion price of 80 % of the lowest traded price in the 15 prior trading days.

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.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 4,555 , with an unamortized discount of $ 15,257 at May 31, 2026.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 9,442 ,

with an unamortized discount of $ 10,370

at August 31, 2026.

convertible note that may be redeemed subject to a premium ranging from 110 % to 140 % if redeemed within the first 180 days of the

The Company received proceeds of $ 95,000 , with fees of $ 5,000 and an original issue discount of $ 10,000 .

The Company also recorded

a debt discount from derivative liabilities of $ 67,202 .

Principal and interest due at maturity.

In addition the For the six months

ended August 31, 2026, the Company recorded amortization expense of $ 27,775 , with an unamortized discount of $ 54,427 at August 31,

After 180 days, the note and interest is convertible at a conversion price of 80 % of the lowest traded price in the 15 prior

trading days.

convertible note that may be redeemed subject to a premium ranging from 110 % to 140 % if redeemed within the first 180 days of the

The Company received proceeds of $ 595,000 , with fees of $ 5,000 and an original issue discount of $ 30,000 .

Principal and interest

due at maturity.

For the three months ended May 31, 2026, the Company recorded amortization expense of $ 2,429 , with an unamortized

discount of $ 12,571 at May 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 80 % of the lowest

traded price in the 15 prior trading days.

A refundable commitment fee of 14.1 million common shares was issued, but is returnable if the loan plus accrued

interest is paid back by May 5, 2026.

The loan was intended as a short term loan with high redemption premiums commencing after 40

days and high conversion discounts after 180 days whereby the note would convert at 20 % of the lowest traded price 15 days prior

trading to the conversion date.

On May 5, 2026, the Company repaid in full, principal and interest of $ 638,492 and the 14.1 million

commitment fee shares will be returned..

For the three months ended May 31, 2026, the Company recorded amortization expense of $ 35,000 ,

with an unamortized discount of $ 0 at May 31, 2026.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

convertible note that may be redeemed subject to a premium ranging from 110 % to 140 % if redeemed within the first 180 days of the note.

The Company received proceeds of $ 595,000 , with fees of $ 5,000 and an original issue discount of $ 30,000 .

Principal and interest due

A refundable commitment fee of 14.1 million common shares was issued, but is returnable if the loan plus accrued interest

is paid back by May 5, 2026.

The loan was intended as a short term loan with high redemption premiums commencing after 40 days and high

conversion discounts after 180 days whereby the note would convert at 20 % of the lowest traded price 15 days prior trading to the conversion

On May 5, 2026, the Company repaid in full, principal and interest of $ 638,492 and the 14.1 million commitment fee shares will

be returned..

For the three months ended May 31, 2026, the Company recorded amortization expense of $ 35,000 , with an unamortized discount

of $ 0 at May 31, 2026.

convertible note that may be redeemed subject to a premium ranging from 120 % to 125 % if redeemed within the first 180 days of the note.

convertible note that may be redeemed subject to a premium ranging from 120 % to 125 % if redeemed within the first 180 days of the

The Company received proceeds of $ 250,000 , with fees of $ 7,000 .

The Company also recorded a debt discount from derivative liabilities

of $ 181,916 .

Principal and interest due at maturity.

For the three months ended May

31, 2026, the Company recorded amortization expense of $ 7,000 , with an unamortized discount of $ 0 at May 31, 2026.

After 180 days, the

note and interest is convertible at a conversion price of 65 % of the lowest closing traded price in the 10 prior trading days.

For the six months ended August 31, 2026, the Company recorded amortization

expense of $ 73,182 , with an unamortized discount of $ 115,374 at August 31, 2026.

After 180 days, the note and interest is convertible

at a conversion price of 65 % of the lowest closing traded price in the 10 prior trading days.

April 13, 2026, the Company entered into a business loan secured by a general security charging all of RAD’s present and after-

5 unchanged sentences

The loan is personally guaranteed by the CEO.

For the three months ended May 31, 2026, the Company

recorded amortization expense of $ 16,587 with an unamortized discount of $ 155,913 at February 28, 2026.

For the three months ended May

For the six months ended August 31, 2026, the Company

recorded amortization expense of $ 59,712 with an unamortized discount of $ 112,788 at August 31, 2026.

For the six months ended August

31, 2026, the Company has repaid $ 245,596 .

4 unchanged sentences

shares having a fair value of $ 173,500 was issued and added as a discount.

Principal and interest due at maturity.

For the three months

ended May 31, 2026, the Company recorded amortization expense of $ 10,072 , with an unamortized discount of $ 196,206 at May 31, 2026.

note and interest is convertible at any time a conversion price of 75 % of the lowest closing traded price in the 10 prior trading days.

convertible note that may be redeemed subject to a premium ranging from 120 % to 125 % if redeemed within the first 180 days of the note.

The Company also recorded a debt discount from derivative

liabilities of $ 71,500 with derivative liability loss of $ 187,621 for a total derivative liability of $ 259,121 .

Principal and interest due

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 64,733 , with an unamortized

discount of $ 213,045 at August 31, 2026.

The note and interest is convertible at any time a conversion price of 75 % of the lowest

closing traded price in the 10 prior trading days.

convertible note that may be redeemed subject to a premium ranging from 120 % to 125 % if redeemed within the first 180 days of the

The Company received proceeds of $ 150,000 , with fees of $ 7,000 .

The Company also recorded a debt discount from derivative liabilities

of $ 109,385 .

Principal and interest due at maturity.

For the three months ended May

31, 2026, the Company recorded amortization expense of $ 7,000 , with an unamortized discount of $ 0 at May 31, 2026.

After 180 days, the

note and interest is convertible at a conversion price of 65 % of the lowest closing traded price in the 10 prior trading days.

For the six months ended August 31, 2026, the Company recorded amortization

expense of $ 42,901 , with an unamortized discount of $ 73,484 at August 31, 2026.

After 180 days, the note and interest is convertible

at a conversion price of 65 % of the lowest closing traded price in the 10 prior trading days.

convertible note redeemable 90 days after issuance in monthly installments of 10 % of the outstanding principal and interest.

received proceeds of $ 615,000 , with fees of $ 15,000 and an original issue discount of $ 70,000 .

In addition a commitment fee of 1,250,000

common shares having a fair value of $ 28,751 was issued and recorded as a discount.

Company received proceeds of $ 615,000 , with fees of $ 15,000 and an original issue discount of $ 70,000 .

In addition a commitment fee

of 1,250,000 common shares having a fair value of $ 28,751 was issued and recorded as a discount.

The Company also recorded a debt

discount from derivative liabilities of $ 169,653 .

Principal and interest due at maturity.

For the three

months ended May 31, 2026, the Company recorded amortization expense of $ 7,185 , with an unamortized discount of $ 105,565 at May 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 65 % of the lowest traded price in the 10 prior trading

convertible note that may be redeemed subject to a premium ranging from 110 % to 135 % if redeemed within the first 180 days of the note.

For the six months ended August 31, 2026,

the Company recorded amortization expense of $ 83,268 , with an unamortized discount of $ 200,135 at August 31, 2026.

After 180 days,

the note and interest is convertible at a conversion price of 65 % of the lowest traded price in the 10 prior trading days.

convertible note that may be redeemed subject to a premium ranging from 110 % to 135 % if redeemed within the first 180 days of the

The Company received proceeds of $ 119,000 , with fees of $ 6,000 and an original issue discount of $ 13,889 .

Principal and interest due

For the three months ended May 31, 2026, the Company recorded amortization expense of $ 762 , with an unamortized discount

of $ 19,127 at May 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 65 % of the lowest traded price

in the 10 prior trading days.

The Company also

recorded a debt discount from derivative liabilities of $ 169,653 .

Principal and interest due at maturity.

For the six months ended

August 31, 2026, the Company recorded amortization expense of $ 18,960 , with an unamortized discount of $ 115,860 at August 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 65 % of the lowest traded price in the 10 prior trading

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

convertible note that may be redeemed subject to a premium ranging from 105 %

if redeemed within the first 180 days of the note.

The Company received proceeds of $ 200,000 ,

with an original issue discount of $ 23,000

and fees of $ 7,000 .

The Company also recorded a debt discount from derivative liabilities of $ 200,000

with derivative liability loss of $ 33,317

for a total derivative liability of $ 233,317 .

Principal and interest due at maturity.

For the six months ended August 31, 2026, the Company recorded amortization expense of

with an unamortized discount of $ 204,013

at August 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 65 %

of the lowest closing traded price in the 20 prior trading days.

convertible note that may be redeemed anytime at a premium of 120 %

with payment of the first year’s accrued interest of $ 5,500 .

The Company received proceeds of $ 47,500 ,

with an original issue discount of $ 5,000

and fees of $ 2,500 .

The Company also recorded a debt discount from derivative liabilities of $ 47,500

with derivative liability loss of $ 22,823

for a total derivative liability of $ 70,323 .

Principal and interest due at maturity.

For the six months ended August 31, 2026, the Company recorded amortization expense of

with an unamortized discount of $ 43,174

at August 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 65 %

of the lowest closing traded price in the 10 prior trading days.

convertible note that may be redeemed s anytime at a premium of 120 %

with payment of the first year’s accrued interest of $ 11,000 .

The Company received proceeds of $ 95,000 ,

with an original issue discount of $ 10,000

and fees of $ 5,000 .

The Company also recorded a debt discount from derivative liabilities of $ 95,000

with derivative liability loss of $ 45,226

for a total derivative liability of $ 140,226 .

Principal and interest due at maturity.

For the six months ended August 31, 2026, the Company recorded amortization expense of

with an unamortized discount of $ 98,353

at August 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 65 %

of the lowest closing traded price in the 10 prior trading days.

convertible note that may be redeemed subject to a premium ranging from 115 % to 125 % if redeemed

within the first 180 days of the note.

First year’s interest of $ 16,500 is guaranteed

and earned at issue date.

Principal and interest due at maturity.

The Company received proceeds

of $ 142,800 , with an original issue discount of $ 15,000 and fees of $ 7,200 .

The Company also

recorded a debt discount from derivative liabilities of $ 142,800 with derivative liability loss of

$ 61,927 for a total derivative liability of $ 204,727 .

For the six months ended August 31,

2026, the Company recorded amortization expense of $ 15,921 , with an unamortized discount

of $ 149,079 at August 31, 2026.

After 180 days, the note and interest is convertible at a

conversion price of 65 % of the lowest closing traded price in the 20 prior trading days.

convertible note that may be redeemed subject to a premium ranging from 105 %

if redeemed within the first 180 days of the note.

Principal and interest due at maturity.

The Company received proceeds of $ 144,000 ,

with an original issue discount of $ 16,667

and fees of $ 6,000 .

The Company also recorded a debt discount from derivative liabilities of $ 140,000

with derivative liability loss of $ 32,701

for a total derivative liability of $ 172,701 .

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 14,512 ,

with an unamortized discount of $ 148,155

at August 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of 65 %

of the lowest closing traded price in the 20 prior trading days.

convertible note that may be redeemed subject to a premium ranging from 120 % to 125 % if redeemed within the first 180 days of the

The Company received proceeds of $ 150,000 , with fees of $ 7,000 .

The Company also recorded a debt discount from derivative liabilities

of $ 169,653 .

Principal and interest due at maturity.

For the six months ended August 31, 2026, the Company recorded amortization

expense of $ 22,688 , with an unamortized discount of $ 94,554 at August 31, 2026.

After 180 days, the note and interest is convertible

at a conversion price of 65 % of the average of the three lowest traded prices in the 10 prior trading days.

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.

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 1,863 ,

with an unamortized discount of $ 13,137

at August 31, 2026.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

note repayable in 36 weekly payments of $ 6,250

starting August 6, 2026.

Non-interest bearing.

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

Along with the debt the Company issued warrants to purchase 225 Series F shares.

A derivative value of $ 435,024

was determined for the warrants including a derivative discount of $ 225,000

and derivative liability loss of $ 210,024 .

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 46,622 ,

with an unamortized discount of $ 178,978

at August 31, 2026.

The Company has repaid $ 25,000 .

convertible note that may be redeemed subject to a discount ranging from 97 % to 98 % if redeemed within the first 180 days of the

First year’s interest of $ 25,116 is guaranteed and earned at issue date.

Note is repayable in 10 monthly instalments

of $ 24,442 starting September 15, 2026.

The Company received proceeds of $ 175,000 , with an original issue discount of $ 27,300 and

fees of $ 7,000 .

The Company also recorded a debt discount from derivative liabilities of $ 172,065 .

Principal and interest due at

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 7,982 , with an unamortized discount

of $ 198,383 at August 31, 2026.

After an event of default , the note and interest is convertible at a conversion price of 65 % of

the lowest traded price in the 10 prior trading days.

note repayable in 32 weekly payments of $ 6,250

starting November 24, 2026.

Non-interest bearing.

Secured by a general security charging all of RAD’s present and

after-acquired property.

Along with the debt the Company issued warrants to purchase 350 Series F shares.

A derivative value of

was determined for the warrants including a derivative discount of $ 200,000

and derivative liability loss of $ 455,270 .

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 0 ,

with an unamortized discount of $ 200,000

at August 31, 2026.

convertible note that may be redeemed subject to a premium ranging from

105 % to 140 %

if redeemed within the first 180 days of the note.

First year’s interest of $ 18,000

is guaranteed and earned at issue date.

Principal and interest due at maturity.

The Company received proceeds of $ 126,000 ,

with an original issue discount of $ 15,000

and fees of $ 9,000 .

The Company included 25,000,000

August 19, 2026 warrants to purchase common shares at an exercise price of $ 0.006

The Company also recorded a debt discount from derivative liabilities of $ 123,258

with derivative liability loss of $ 77,366

for a total derivative liability (including warrant liability of $ 11,742 ) of $ 200,624 .

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 2,298 ,

with an unamortized discount of $ 144,960

at August 31, 2026.

After 180 days, the note and interest is convertible at a conversion price of

65 % of the lowest closing traded price in the 20 prior trading days.

note repayable in 36 weekly payments of $ 6,250 starting September 3, 2026.

Non-interest bearing.

Secured by a general security charging

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

Along with the debt the Company issued warrants to purchase 350 Series F

A derivative value of $ 368,762 was determined for the warrants including a derivative discount of $ 225,000 and derivative liability loss

of $ 143,762 .

For the six months ended August 31, 2026, the Company recorded amortization expense of $ 0 , with an unamortized discount

of $ 225,000 at August 31, 2026.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DERIVATIVE LIABILITY

of August 31 ,2026 the Company revalued the fair value of all of the Company’s derivative liabilities associated with the conversion

features on the convertible notes payable and warrants, and Preferred Series F warrants and determined that it had a total derivative

liability of $ 3,890,582 .

Company estimated the initial fair value of the derivative liabilities from the embedded conversion feature and an August 19, 2026

warrant having a value of $ 2,206,434 using

a Monte-Carlo simulation model using the following key assumptions during the six months ended August 31, 2026:

OF ESTIMATED FAIR VALUE OF DERIVATIVE LIABILITIES

$ 0.004 - $ 0.036

Fair value of Company common stock

Dividend yield

Expected volatility

Risk free interest rate

Expected term (years)

Company estimated the initial fair value of the derivative liabilities on the Series F warrants having a value of $ 1,459,056

using the Monte-Carlo simulation model using the following key assumptions during the six months ended August 31, 2026:

Fair value of Company common stock

Dividend yield

Expected volatility

Risk free interest rate

Expected term (years)

changes in the derivative liabilities (Level 3 financial instruments) measured at fair value on a recurring basis for the six months

ended August 31, 2026 were as follows:

OF CHANGES IN DERIVATIVE LIABILITIES

Balance as of March 1, 2026

Derivative discount on convertible notes including $ 11,742 warrant liability

Derivative discount on Preferred Series F warrants included with debt

Derivative liability loss

Balance as of August 31, 2026

For the six months ended August 31, 2026 the Company

included a derivative liability loss of $ 1,495,130 which was comprised of the following:

OF DERIVATIVE LIABILITY LOSS

Day-one derivative liability loss

Change in fair value of derivative liabilities

Total derivative liability loss at August 31, 2026

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

STOCKHOLDERS’ EQUITY (DEFICIT)

3 unchanged sentences

1,000 authorized shares.

exchange for 306

Series C Convertible Redeemable Preferred Shares (“Series C”), the Company received gross proceeds of $ 306,000

with net proceeds of $ 278,580

after paying $ 6,000 in legal fees

in broker fees both charged against paid in capital.

The Company must redeem the shares at stated capital of 1,200

per share and a 1.095 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.

During the year the Company issued 12 %

quarterly dividends in 44

Series C shares with a value of $ 58,100 .

The Company failed to redeem the Series C shares on the August 9, 2025, redemption date and a penalty of 114

Series C shares with a value of $ 149,307

was recorded.

In August 2025 the Company redeemed 95

Series C shares for $ 125,000

including a deemed dividend of $ 29,871 .

In September 2025 the Company failed to convert a conversion notice of 96

This conversion was withdrawn in December 2025 and a new conversion for 85

Series C shares with a value of $ 111,690

including a dividend of $ 84,690

with a corresponding adjustment to paid in capital.

In exchange for the converted Series C shares, the Company issued 1,994,464

common shares.

In January 2026, the Company failed to convert a conversion notice of 80

On March 19, 2026 the Company entered into an agreement with the investor whereby the parties agreed to reduce the penalty

on the September 2025 and January 2026 failed conversion to 133

Series C shares at a value of $ 175,140

( The penalty was reduced from 345

Series C shares to 133

Series C shares) .

The parties agreed on the Series C share balance at February 28, 2026 to be 417

series C shares.

In addition, the parties agreed to issue an additional 222 Series

C shares for proceeds of $ 200,000

and fees of $ 22,000 .

These shares have a redemption value of $ 291,708 .

Also on March 19, 2026, the parties agreed to convert 165

Series C shares at a value of $ 216,810

for 13,550,625

common shares.

The shareholder also converted 40

shares at a value of $ 52,560

for 3,285,000

common shares on May 6, 2026, and 93

shares at a value of $ 122,202

for 7,637,628

common shares on May 12, 2026.

During the quarter, a dividend of 13

Series C shares having a value of $ $ 17,388

were accrued.

At May 31, 2026, there were 354

outstanding series C shares with a redemption value of $ 465,465 .

Ay February 28, 2026, there were 417

outstanding series C shares with a redemption value of $ 547,941 .

F Convertible Preferred Stock

exchange for 306 Series C Convertible Redeemable Preferred Shares (“Series C”), the Company received gross proceeds of $ 306,000

with net proceeds of $ 278,580 after paying $ 6,000 in legal fees and $ 21,420 in broker fees both charged against paid in capital.

Company must redeem the shares at stated capital of 1,200 per share and a 1.095 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.

During the year the Company issued 12 % quarterly dividends in 44 Series C shares with a value of $ 58,100 .

The Company failed to redeem

the Series C shares on the August 9, 2025, redemption date and a penalty of 114 Series C shares with a value of $ 149,307 was recorded.

In August 2025 the Company redeemed 95 Series C shares for $ 125,000 including a deemed dividend of $ 29,871 .

In September 2025 the Company

failed to convert a conversion notice of 96 shares.

This conversion was withdrawn in December 2025 and a new conversion for 85 Series

C shares with a value of $ 111,690 including a dividend of $ 84,690 with a corresponding adjustment to paid in capital.

In exchange for

the converted Series C shares, the Company issued 1,994,464 common shares.

In January 2026, the Company failed to convert a conversion

notice of 80 shares.

On March 19, 2026 the Company entered into an agreement with the investor whereby the parties agreed to reduce the

penalty on the September 2025 and January 2026 failed conversion to 133 Series C shares at a value of $ 175,140 ( The penalty was reduced

from 345 Series C shares to 133 Series C shares) .

The parties agreed on the Series C share balance at February 28, 2026 to be 417 series

In addition, the parties agreed to issue an additional 222 Series C shares for proceeds of $ 200,000 and fees of $ 22,000 .

shares have a redemption value of $ 291,708 .

Also on March 19, 2026, the parties agreed to convert 165 Series C shares at a value of $ 216,810

for 13,550,625 common shares.

The shareholder also converted 40 shares at a value of $ 52,560 for 3,285,000 common shares on May 6, 2026,

and 93 shares at a value of $ 122,202 for 7,637,628 common shares on May 12, 2026.

On August 5, 2026 the shareholder converted 62 shares

at a redemption value of $ 81,468 for 20,811,189 common shares and on August 21, 2026 another 47 shares at a redemption value of $ 61,758

for 21,319,222 common shares.

A deemed dividend of $ 408,877 was recorded on all these conversions.

During the six months ended August

31, 2026, dividends of 21 Series C shares having a value of $ 27,413 were accrued.

At August 31, 2026, there were 243 outstanding series

C shares with a redemption value of $ 332,264 .

At February 28, 2026, there were 417 outstanding series C shares with a redemption value

of $ 547,941 .

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

4 unchanged sentences

Number of Series F Preferred Warrants

Average Exercise Price

Average Remaining Years

Weighted Average

Exercise Price

Weighted Average

Remaining Years

Outstanding at February 28, 2026

Forfeited and cancelled

Outstanding at May 31, 2026

Outstanding at August 31, 2026

with the promissory notes dated July 30, 2026 for $ 225,000 ,

August 11, 2026 for $ 200,000 and

August 27, 2026 for $ 225,000 the

Company issued 225 ,

on those respective dates, with a 10

year term and an exercise price of $ 1.00 .

A derivative discount of $ 650,000

was recorded.

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

1 unchanged sentence

of Common Stock Activity

the three months ended May 31, 2026:

- The Company decreased authorized common shares from

27,500,000,000 to 12,000,000,000 on March 19, 2026.

- On February 5, 2026, the holders of a majority

of the voting power of the Company’s outstanding voting securities executed the written consent approving a reverse stock

split of the Company’s issued and outstanding Common Stock at a ratio of 1-for-100 .

This split was deemed effective on March

The Company decreased authorized common shares from 27,500,000,000 to 12,000,000,000 on March 19, 2026.

On February 5, 2026, the holders of a majority of the voting power of the Company’s outstanding voting securities executed the

written consent approving a reverse stock split of the Company’s issued and outstanding Common Stock at a ratio of 1-for-100 .

split was deemed effective on March 12, 2026.

The common shares have been adjusted to reflect this reverse stock split.

the Company issued 36,784,492 common shares with gross proceeds of $ 900,871 and net proceeds of $ 823,480 after issuance costs of $ 77,391 .

the Company issued 39,000,000 common shares having a fair value of $ 1,453,500 to repay $ 107,000 in loans payable and $ 638,900 in accrued

interest totaling $ 745,900 with a loss on settlement of debt of $ 707,600 .

During the six months ended August 31, 2026, the Company issued 123,765,723

common shares with gross proceeds of $ 1,435,429

and net proceeds of $ 1,322,722

after issuance costs of $ 119,307 .

During the six months ended August 31, 2026, the Company issued 96,000,000

common shares having a fair value of $ 1,879,500

on exchange of debt to repay $ 332,590

in loans payable and $ 653,400

in accrued interest totaling $ 985,990

with a loss on settlement of debt of $ 893,510 .

During the six months ended August 31, 2026, the Company issued 35,767,014

common shares having a fair value of $ 149,992

on conversion of debt to repay $ 140,000

in loans payable and $ 9,992

in accrued interest.

with the $ 630,000 loan of March 25, 2026, a refundable commitment fee of 14,100,000 shares was issued.

3 unchanged sentences

paid in capital.

These shares were returned on July 13, 2026 and an offsetting entry was made.

with the $ 277,778 loan of April 20, 2026, a commitment fee of 5,000,000 common shares having a fair value of $ 173,500 was issued and

3 unchanged sentences

These shares will be issued shortly after filing this 10Q.

the quarter ended March 31, 2026, the Series C Preferred shareholder converted 298 Series C Preferred Shares having a value of $ 391,572

with the $ 700,000 loan of May 4, 2026, a commitment fee of 1,250,000 common shares having a fair value of $ 28,751 is issuable and recorded

as a discount.

These shares will be issued shortly after filing this 10Q.

accordance with an Equity Purchase Agreement June 23, 2026 for $ 10,000,000 , 2,500,000 commitment fee shares at a fair value of $ 16,500

and are included in issuance costs for shares sold under this arrangement.

the six months ended August 31, 2026, the Series C Preferred shareholder converted 407 Series C Preferred Shares having a value of $ 534,798

for 66,603,661 common shares with a deemed dividend of $ 408,877 .

common shares issued , issuable and outstanding at May 31,2026 and February 28, 2026:

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

common shares issued, issuable and outstanding at August 31, 2026 and February 28, 2026:

SUMMARY OF COMMON STOCK ISSUED AND OUTSTANDING

Common shares

February 28, 2026

Issued, issuable and outstanding

Issued, issuable and

of Common Stock Warrant Activity

the three months ending May 31, 2026, and May 31, 2025, the Company recorded a total of $ 60,508 and $ 80,355 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, 2026 and August 31, 2025, the Company recorded a total of $ 33,975 and $ 94,483 , and $ 160,710

and $ 160,710 respectively, to stock-based compensation for options and warrants with a corresponding adjustment to additional paid-in

OF COMMON STOCK WARRANT ACTIVITY

5 unchanged sentences

Forfeited and cancelled

Outstanding at May 31, 2026

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Outstanding at August 31, 2026

of Common Stock Option Activity -Employee Stock Options

OF COMMON STOCK OPTION ACTIVITY

Number of Options

Weighted Average Exercise Price

Weighted Average Remaining Years

Outstanding at March 1, 2026

Forfeited, extinguished and cancelled

Outstanding at May 31, 2026

Weighted Average

Remaining Years

at March 1, 2026

extinguished and cancelled

at August `31, 2026

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

COMMITMENTS AND CONTINGENCIES

24 unchanged sentences

on a straight-line basis.

The weighted average discount rate used was 10 % and the weighted average remaining lease term at May 31, 2026

was 4.71 years.

expense and operating lease cost was $ 67,372 and $ 58,219 for the three months ended May 31, 2026 and May 31, 2025, respectively.

Rent expense and operating lease cost was $ 67,327 and $ 134,699 for the three and six months ended August 31,

2026, respectively, and $ 62,578 and $ 120,797 for the three and six months ended August 31, 2025, respectively.

SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES

Maturity of Lease Liabilities

Lease Liabilities

August 31, 2027

August 31, 2028

August 31, 2029

August 31, 2030

August 31, 2031

Total lease payments

Present value of lease liabilities

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

EARNINGS (LOSS) PER SHARE

1 unchanged sentence

SCHEDULE OF NET INCOME (LOSS) PER COMMON SHARE

For the Three Months Ended

Net loss available to common shareholders

For the Three

Net income (loss)

$ ( 6,838,473 )

$ ( 12,554,310 )

Effect of common stock equivalents

dividends to C preferred shareholders

Net loss adjusted for common stock equivalents

$ ( 3,830,953 )

Dividend on Series

Net income (loss )available to common shareholders

( 7,153,878 )

( 12,963,187 )

( 3,860,824 )

Weighted average shares – basic

Net loss per share – basic

Net income (loss) per

share – basic

Dilutive effect of common stock equivalents:

Convertible Series C Preferred Shares

Convertible Series F Preferred Shares

Stock options and warrants

Weighted average shares – diluted

Net loss per share – diluted

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

anti-dilutive shares of common stock equivalents for the three months ended May 31, 2026 and 2025 were as follows:

Net income (loss) per

share – diluted

anti-dilutive shares of common stock equivalents for the three and six months ended August 31, 2026 and 2025 were as follows:

SCHEDULE OF ANTI-DILUTIVE SHARES OF COMMON STOCK EQUIVALENTS

For the Three Months Ended

For the Three

Convertible or exchangeable debt

and accrued interest

14,478,810,811

Convertible Series C Preferred Shares

Convertible Series F Preferred Shares

2,057,094,397

Convertible Redeemable Series C Preferred Shares

2,057,094,397

Stock options and warrants

16,634,695,220

SUBSEQUENT EVENTS

to May 31, 2026 through to filing date,

Company issued 32,797,611 common shares pursuant to a share purchase agreement for gross proceeds of $ 290,783 , issuance costs of

to August 31, 2026:

The Company issued 63,547,330 common shares pursuant to an equity purchase agreement for gross proceeds of $ 155,658 , issuance costs of

$ 6,226 and net proceeds of $ 149,432 .

Company issued 12,000,000 shares to a lender to settle $ 89,700 in principal pursuant to exchange agreements with the lender.

June 3, 2026, the Company issued a convertible, redeemable note to a lender for $ 230,000 with cash proceeds of $ 200,000 an original

issue discount of $ 23,000 and $ 7,000 for fees.

The loan bears interest at 6 %, the note is redeemable by the Company at any time subject

to a premium ranging from 105 % to 140 % if redeemed within the first 180 days of the note.

The note matures on June 3, 2027, and converts

after 180 days at 65 % of the lowest trading price 20 trading days prior to the conversion date, including the conversion date.

June 9, 2026, the Company issued a convertible, redeemable note to a lender for $ 55,000 with cash proceeds of $ 47,500 , an original

issue discount of $ 5,000 , and $ 2,500 for fees.

The loan bears interest at 10 %, the note is redeemable by the Company at any time

subject to a premium of one years interest of $ 5,500 .

The note matures on June 9, 2027, and converts any time at 65 % of the lowest

trading price 10 trading days prior to the conversion date.

on June 9, 2026, the Company issued a convertible,

redeemable note to a lender for $ 110,000 with cash proceeds of $ 95,000 , an original issue discount of $ 10,000 , and $ 5,000 for fees.

loan bears interest at 10 %, the note is redeemable by the Company at any time subject to a premium of one years interest of $ 11,000 .

note matures on June 9, 2027, and converts any time at 65 % of the lowest trading price 10 trading days prior to the conversion date.

on June 15, 2026, the Company issued a convertible, redeemable note to

a lender for $ 165,000 with cash proceeds of $ 142,800 , an original issue discount of $ 15,000 , and $ 7,200 for fees.

The loan bears interest

at 10 %, the note is redeemable by the Company at any time subject to a premium ranging from 115 % to 125 % if redeemed within the first

180 days of the note.

The note matures on June 15, 2027, and converts any time at 65 % of the lowest closing bid price 20 trading days

prior to the conversion date.

The loan is repayable as follows :

on December 15, 2026 a payment of $ 90,750 with 5 monthly payments of

$ 15,125 commencing Jan 15, 2027 through to May 15, 2027 with the remaining $ 9,625 balance payable June 15, 2027.

June 23 , 2026 the Company entered into an Equity Financing Agreement whereby an investor shall invest up to $10,000,000 over the

course of thirty-six (36) month at a purchase price of eighty-five percent (85%) of the average of the three lowest bid trade price

in the 10 day preceding period.

The Company may also issue an accelerated put at a purchase price of 85% of the three closing bid

prices 10 days following the put date subject to a floor price equal to the greater of:

(A) seventy-five percent (75%) of the Closing

Bid Price of the Common Stock on the applicable Put Date;

or (B) any higher minimum price per share specified by the Company in the

applicable Accelerated Put Notice.

A commitment fee of five million common shares of the Company’s Common Stock shall be issued

in two equal tranches:

(i) first tranche of Two Million and Five Hundred Thousand common shares upon S-1 effectiveness;

and the remaining

(ii) second tranche of Two Million and Five Hundred Thousand common shares, issued ninety days later.

In conjunction with the above

agreement, the Company entered into a Registration Rights Agreement as well.

June 26, 2026, the Company issued a convertible, redeemable note to a lender for $ 157,000 with cash proceeds of $ 150,000 and $ 7,000

The loan bears interest at 10 %, the note is redeemable by the Company at any time subject to a premium ranging from 120 %

to 125 % if redeemed within the first 180 days of the note.

The note matures on March 30, 2027, and converts after 180 days at 65 %

of the average of the three lowest trading prices, 10 trading days prior to the conversion date.

on July 9, 2026, the Company issued a promissory note to a lender for $ 165,000

with cash proceeds of $ 150,000 and an original issue discount of $ 15,000 for fees.

The note matures in one year and bears interest at

15 %, per annum ,compounding annually.

The note is secured by the assets of the Company.

In addition the Company issued another 27,600,595 common shares for estimated gross proceeds of

$ 46,369 , the exact shares and purchase price will be determined at the end of the valuation period which falls after this reporting date.

The Company issued 32,000,000 common shares to a lender to settle $ 61,440 in accrued interest pursuant to exchange agreements with the

The Company issued 84,931,298 common shares to a lender to convert $ 150,000 in principal, $ 8,541 in accrued interest and $ 2,880 in fees

for a total of $ 161,421 .

The Preferred Series C shareholder converted 93 Preferred Series C shares at a redemption value of $ 122,202 for 58,719,743 common shares.

on September 30, 2026, the Company issued a $ 120,000 note repayable in 40 weekly payments of $ 3,000 starting October 9, 2026.

Cash proceeds

were $ 100,000 with a $ 20,000 original issue discount.

Non-interest bearing.

Secured by a general security charging all of RAD’s

present and after-acquired property.

Along with the debt the Company issued warrants to purchase 150 Series F shares with a $ 1.00 exercise

price and a December 31, 2036 maturity.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements