PBK POWERBANK Corp

“Subsequent to the year-end June 30, 2025, the Company identified certain lease arrangements that had either not previously been accounted for under IFRS 16 Leases or for which upfront lease payments had been recorded as prepaid rent.”

“Subsequent to the year-end June 30, 2025, the Company reassessed the allocation of the impairment loss between property, plant and equipment and intangible assets, resulting in an increase in property, plant and equipment impairment and a corresponding decrease in intangible asset impairment of $ 5,229 .”

“Consolidated Statements of Financial Position (Expressed in thousands of Canadian dollars) As at June 30, 2026 and 2025 Note 2026 2025 (Restated - Note 2)”

“The Company has not retained sufficient documentary or corroborating evidence to demonstrate the consistent and timely performance of control activities. This undermines accountability in the control environment, reduces the reliability of control activities, limits the quality of information and communication, and prevents effective monitoring of whether controls are designed, implemented or operating as intended.”

“The Company does not have adequately formalized processes or sufficient experienced finance personnel to identify, analyze, and account for large or complex transactions. This reflects weaknesses in risk assessment and in review controls over non-routine transactions.”

“The Company does not have a sufficient complement of accounting and reporting personnel with the requisite knowledge and experience. This has weakened the control environment and contributed to inadequately designed or omitted control activities over the financial close and reporting process, including un-timely preparation, analysis, and review of account reconciliations.”

“Based on this evaluation, management concluded that the Company s ICFR was not effective as of June 30, 2026 due to the following material weaknesses.”

“Based on this evaluation, management concluded that the Company s DC&P was not effective as of June 30, 2026 due to the material weaknesses in internal control over financial reporting described below.”

“(2) The financial results were restated as a result of corrections made to the 2025 comparative. Refer to Note 2(e) of the consolidated financial statements for further details and impacts of the restatement.”

“(1) The total assets were restated as a result of corrections made to the prior year comparative. Refer to Note 2(e) of the consolidated financial statements for further details and impacts of the restatement.”

“Based on this evaluation, management concluded that the Company s internal controls over financial reporting were not effective as of June 30, 2026 due to certain material weaknesses that are disclosed in the MD&A for the year ended June 30, 2026.”

“Based on this evaluation, management concluded that the Company s internal controls over financial reporting were not effective as of June 30, 2026 due to certain material weaknesses that are disclosed in the MD&A for the year ended June 30, 2026.”