Mr. William Hogan reports

NEPRA FOODS INC. REPORTS PRELIMINARY UNAUDITED FISCAL 2026 FOURTH QUARTER REVENUE OF $1.85 MILLION, DEMONSTRATING CONTINUED GROWTH MOMENTUM

Nepra Foods Inc. has released its preliminary, unaudited financial results for the fourth quarter ended March 31, 2026. All figures are in United States dollars unless otherwise noted. Nepra reported record quarterly revenue of $1,851,237. These numbers represent a 15-per-cent increase over the previous quarter and the same quarter in the previous year.

FY2026 highlights (preliminary, unaudited -- U.S. dollars)

• Q4 revenue: $1,851,237 (plus 15 per cent versus fiscal Q4 2025: $1,695,629): This revenue growth was accompanied by an estimated preliminary gross profit of approximately $525,000 for Q4. Management notes that gross margins in recent quarters of FY2026 have generally ranged between 28 per cent and 34 per cent. These margin trends, along with the company's first quarterly net income recorded in Q3 FY2026, support continuing progress toward sustainable profitability.
• Full-year revenue: $6,181,225 (plus 35 per cent vs. fiscal 2025: $4,565,250): For context, the company's gross profit for the nine months ended Dec. 31, 2025, was approximately $1.35-million (31.1-per-cent gross margin) on $4.36-million revenue, with the company achieving its first quarterly net income of $62,875 in that period. Full-year gross profit, operating expenses and net results for FY2026 will be confirmed upon audit completion.

Sequential revenue: fiscal Q3 2026 approximately $1,651,464 to Q4 $1,851,237

What drove Q4 performance?

The increase in Q4 revenue was driven by a combination of expanding ingredient sales, increased R&D (research and development) project activity, and continued engagement from returning customers as their brands scale and require additional production. These revenue gains were supported by operational improvements that have helped enhance gross margins in recent periods through better supply chain management and higher-margin activities, such as custom formulation and technical services. The company has seen growing demand across its core ingredient platforms, with multiple customers increasing order volumes and re-engaging for new product development initiatives. These R&D projects contribute to both near-term revenue generation and the development of longer-term, repeatable commercial opportunities.

In parallel, Nepra has continued to streamline its supply chain and operational processes, enabling the company to deliver more consistently in full and on time, supporting improved customer retention and increased order frequency.

The company believes this combination of increasing customer demand, repeat business and operational improvements positions Nepra for continued revenue growth and further progress toward sustainable profitability heading into fiscal 2027.

Building momentum into fiscal 2027

Nepra's Q4 performance reflects continued momentum from prior quarters, with revenue increasing from approximately $1,651,464 in Q3 FY2026 to $1,851,237 in Q4 2026, alongside sustained year-over-year growth. Recent quarters have shown expanding gross margins and, in the third quarter, the company's first-ever quarterly net income. The company is actively preparing to leverage its in-house capabilities to support new e-commerce revenue channels while managing associated costs.

Important notice regarding preliminary results

These financial results are preliminary and unaudited; they are subject to change upon completion of the company's year-end audit. Nepra expects to file its audited financial statements and management's discussion and analysis (MD&A) on SEDAR+ in accordance with applicable securities regulations. Final audited results, including full details on cost of sales, gross profit, operating expenses and net income/loss for Q4 and the full fiscal year, may differ, potentially materially, from these preliminary figures and remain subject to completion of the year-end audit.

About Nepra Foods Inc.

Nepra Foods is a vertically integrated functional nutrition company delivering clean-label solutions. The company partners with category leaders, emerging brands and technology innovators to build resilient, ethically driven supply chains and bring advanced food solutions to market. From early stage product development through large-scale commercialization, Nepra provides tailored capabilities including formulation, ingredient technology, co-manufacturing, e-commerce management and retail distribution. The company collaborates with leading ag-tech partners to translate innovation into real-world applications, supporting the development of high-quality, nutritious products.

Nepra is committed to expanding the reach of forward-thinking food brands while advancing more sustainable and responsible industry practices, delivering solutions that benefit consumers, producers and the environment.

We seek Safe Harbor.