Mr. Jay Hutton reports

VSBLTY GROUPE TECHNOLOGIES FILES AUDITED ANNUAL FINANCIAL STATEMENTS FOR FISCAL YEAR 2025 AND PROVIDES CORPORATE UPDATE

Vsblty Groupe Technologies Corp. has filed its audited consolidated financial statements and management's discussion and analysis for the fiscal year ended Dec. 31, 2025, on SEDAR+. The company expects to apply to the B.C. Securities Commission for revocation of the cease trade order currently in effect.

• Revenue of $1,510,090 for the year ended Dec. 31, 2025, consistent with $1,513,914 in fiscal 2024, reflecting a deliberate pivot toward higher-value professional services and deployment-related revenue streams.
• Professional service revenue more than doubled to $778,475 from $340,098 in 2024, an increase of 129 per cent, reflecting the company's growing pipeline of enterprise and government security deployments.
• Hardware and deployment-related revenue increased 376 per cent to $264,883 from $55,587, underscoring the transition from proof of concept to active deployment of Vsblty's artificial intelligence platform.
• General and administrative expenses reduced 27 per cent to $2,192,366 from $3,024,851, and sales and marketing expenses reduced 24 per cent to $1,013,379 from $1,336,186, demonstrating the company's commitment to operational discipline.
• Comprehensive loss for the year decreased to $7,863,928 from $8,173,256 in fiscal 2024, a reduction of approximately 4 per cent.
• The company recorded a non-cash impairment charge of $988,427 related to the Winkel MSA intangible asset.

Subsequent events and capital activity

Subsequent to year-end, the company:

• Completed a non-brokered private placement of 8,125,395 units at 10.5 cents per unit for gross proceeds of approximately $853,166;
• Settled approximately $1.2-million in aggregate indebtedness through the issuance of common shares and units;
• Converted $254,916 in convertible debt principal plus $104,159 in accrued interest into equity; and
• Issued promissory notes totalling $131,000 to support working capital requirements.

2026 business momentum

In the first half of 2026, the company has announced several significant business developments, including:

• A $2.5-million contract for the initial deployment of its multisensor governed intelligence platform;
• A strategic partnership with Burkhan World to accelerate artificial intelligence security and infrastructure deployments across South Asia, the Middle East and Africa;
• A letter of intent with Brightside Group SA for strategic defence, public safety and digital infrastructure projects in the Philippines; and
• The introduction of its counterdrone detection platform to the Gulf region.

Chief executive officer quote

"The filing of our fiscal 2025 audit marks an important milestone as we work to restore normal course trading and refocus on execution," said Jay Hutton, CEO of Vsblty. "While our top-line revenue remained consistent year over year, the composition of that revenue changed meaningfully -- professional services more than doubled and hardware-related revenue grew nearly fivefold. That shift reflects real deployments on the ground and a maturing business model. Combined with the significant cost reductions our team achieved, we are building a leaner, more focused company. The pipeline of opportunities we have announced in 2026 -- from sovereign defence contracts to partnerships spanning three continents -- represents the most compelling set of near-term revenue opportunities in the company's history. We are confident that the momentum we have established will continue to accelerate."

About the cease trade order

On May 5, 2026, the B.C. Securities Commission issued a cease trade order in connection with the company's delay in filing its audited annual financial statements and related filings for the fiscal year ended Dec. 31, 2025. With the filing of these documents complete, the company intends to apply for revocation of the cease trade order and expects trading of its common shares to resume on the Canadian Securities Exchange promptly thereafter.

About Vsblty Groupe Technologies Corp.

Headquartered in Philadelphia, Vsblty is a software provider of AI-driven security and retail analytic technology. Leveraging its proprietary computer vision and machine learning platform, Vsblty develops solutions that transform camera networks into intelligent, real-time data sources. The company's technology is deployed across security, defence and retail environments globally.

We seek Safe Harbor.