Mr. William Hogan reports

NEPRA FOODS INC. ACHIEVES FIRST QUARTERLY NET INCOME IN COMPANY HISTORY; REPORTS FINANCIAL RESULTS FOR THE QUARTER ENDING DECEMBER 31, 2025, REVENUE INCREASES 51% TO $5,973,147, GROSS PROFIT RISES TO $1,855,624 (31.1% MARGIN), NET INCOME OF $84,966

Nepra Foods Inc. has released its financial results for the three and nine months ended Dec. 31, 2025. All figures are in Canadian dollars unless otherwise noted.

Three-month highlights (Q3 versus prior-year Q3):

• Revenue increased 54 per cent to $2,231,708 from $1,450,641 driven by higher sales and consumer product formulation development to new and existing customers;
• Gross profit rose 60 per cent to $636,730 (28.6-per-cent margin) from $397,580 (27.4-per-cent margin);
• The company recorded net income of $84,966 compared with a net loss of $559,191.

Nine-month highlights (vs. prior-year nine months):

• Revenue grew 51 per cent to $5,973,147 from $3,962,377;
• Gross profit more than doubled to $1,855,624 (31.1-per-cent margin) from $910,868 (23.0-per-cent margin);
• Operating expenses decreased 18 per cent to $2,208,875 from $2,688,194;
• Net loss narrowed 22 per cent to $1,038,304 from $1,338,344;
• Cash flow from operating activities turned positive at $57,156 compared with an outflow of $988,945, a $1.04-million improvement year over year.

Billy Hogan, chief executive officer, commented: "We delivered our strongest quarter to date with the first net income in company history and positive operating cash flow for the nine-month period. Revenue of $5.97-million for the first nine months, up 51 per cent year over year, combined with the more than doubling of gross profit. This demonstrates that our expertise in developing technical and creative formulations is enabling our commercial customers to launch innovative new allergen-free CPG products, perfectly aligned with today's healthier eating trends. While we remain focused on further strengthening our balance sheet, these results mark clear progress toward sustainable profitability."

The unaudited condensed consolidated interim financial statements and MD&A (management's discussion and analysis) for the three and nine months ended Dec. 31, 2025, are available on SEDAR+ and on the company's website.

About Nepra Foods Inc.

Nepra Foods is a specialty food company focused on innovative and proprietary allergen and gluten-free food ingredient technologies. The company supports food manufacturers globally with formulations, ingredients and technical support to produce the next generation of healthy, nutritious foods.

We seek Safe Harbor.