When did Pmgc Holdings Inc file this 10-Q?

Pmgc Holdings Inc (ELAB) filed this Quarterly Report (Form 10-Q) with the SEC on August 14, 2026. The accession number assigned by EDGAR is 0001213900-26-089530.

What does a 10-Q disclose?

Form 10-Q is the SEC's quarterly report. Public companies file it after each of the first three fiscal quarters to disclose unaudited financial statements and management's discussion of operations. The fourth-quarter results are rolled into the annual 10-K instead.

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Form 10-Q is filed three times a year (after Q1, Q2, and Q3 — the fourth quarter rolls into the 10-K). 10-Qs contain unaudited interim financial statements and a shorter MD&A. They're due 40 or 45 days after quarter end depending on filer size.

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Pmgc Holdings Inc (ELAB) 10-Q filed Aug 14, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-41875

PMGC HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Nevada		33-2382547
(State of incorporation)		(I.R.S. Employer Identification No.)

Graydon Bensler

120 Newport Center Drive

Newport Beach, CA 92660

(Address of principal executive office) (Zip code)

(888) 445-4886

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		ELAB		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, during the preceding 12 months (or for such shorter period than the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 14, 2026, there were 8,095,793 shares of our common stock, par value $0.0001 per share, issued and outstanding.

PMGC Holdings Inc. Quarterly Report on Form 10-Q

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

	Notes to Unaudited Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	42

Item 4.	Controls and Procedures	42

PART II - OTHER INFORMATION		43

Item 1.	Legal Proceedings	43

Item 1A.	Risk Factors	43

Item 2.	Recent Sales of Unregistered Securities; Use of Proceeds and Issuer Purchases of Equity Securities	43

Item 3.	Defaults Upon Senior Securities	43

Item 4.	Mine Safety Disclosures	43

Item 5.	Other Information	43

Item 6.	Exhibits	44

SIGNATURES		45

Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Quarterly Report”) of PMGC Holdings Inc. (“we,” “us,” “our,” “PMGC” and the “Company”) contains statements that constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. These statements appear in several different places in this Quarterly Report and, in some cases, can be identified by words such as “anticipates,” “estimates,” “projects,” “expects,” “contemplates,” “intends,” “believes,” “plans,” “may,” “will” or their negatives or other comparable words, although not all forward-looking statements contain these identifying words. Forward-looking statements in this Quarterly Report may include, but are not limited to, statements and/or information related to: our financial performance and projections; our business prospects and opportunities; our business strategy and future operations; the projection of timing and delivery of products in the future; projected costs; expected production capacity; expectations regarding demand and acceptance of our products; estimated costs of research and development to develop new pipeline products; trends in the market in which we operate; the plans and objectives of management; our liquidity and capital requirements, including cash flows and uses of cash; trends relating to our industry; and plans relating to our current products.

We have based these forward-looking statements on our current expectations about future events on information that is available as of the date of this Quarterly Report, and any forward-looking statements made by us speak only as of the date on which they are made. While we believe these expectations are reasonable, such forward-looking statements are inherently subject to risks and uncertainties, many of which are beyond our control. Our actual future results may differ materially from those discussed or implied in our forward-looking statements for various reasons, including, our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; our capital needs, and the competitive environment of our business. Additional factors that could contribute to such differences include, but are not limited to:

●

general economic and business conditions, including changes in interest rates;

●

prices of other competitive products, costs associated with research and development of our products and other economic conditions;

●

the effect of an outbreak of disease or similar public health threat, such as any future outbreak of COVID-19 on our business (natural phenomena, including the lingering effects of the COVID-19 pandemic);

●

the impact of political unrest, natural disasters or other crises, terrorist acts, acts of war and/or military operations, and our ability to maintain or broaden our business relationships and develop new relationships with strategic alliances, suppliers, customers, distributors or otherwise;

●

breaches in data security, failure of information security systems, cyber-attacks or other security or privacy-related incidents affecting us or our suppliers;

●

the ability of our information technology systems or information security systems to operate effectively;

●

actions by government authorities, including changes in government regulation;

●

uncertainties associated with legal proceedings;

●

changes in the size of the medical aesthetics, cosmetics and biotechnology market;

●

future decisions by management in response to changing conditions;

●

disruption of supply or shortage of raw materials;

●

the unavailability, reduction or elimination of government and economic incentives;

●

failure to manage future growth effectively; and

●

the other risks and uncertainties detailed from time to time in our filings with the U.S. Securities and Exchange Commission (“SEC”), including, but not limited to, those described under “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 30, 2026 (the “Form 10-K”).

Although management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary remarks expressly qualify, in their entirety, all forward-looking statements attributable to us or persons acting on our behalf. We do not undertake to update any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements, except as, and to the extent required by, applicable securities laws.

PART I - FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Condensed Consolidated Financial Statements of

PMGC Holdings Inc.

For the six months ended June 30, 2026, and 2025

(Unaudited - Expressed in United States Dollars)

PMGC Holdings Inc.

Condensed Consolidated Balance Sheets

(Unaudited - Expressed in United States dollars)

As of:	June 30, 2026			December 31, 2025
ASSETS
Current Assets
Cash	$	18,141,758		$	5,402,333
Receivables, net		421,859			245,423
Other receivables		181,628			95,108
Prepaids and deposits		504,599			461,239
Inventory		932,508			95,098
Investment in securities- current		650,598			572,054
Total Current Assets		20,832,950			6,871,255

Operating lease right-of-use-assets		4,800,629			1,241,527
Property and equipment, net		1,901,625			885,520
Intangibles, net		5,993,815			2,892,397
Goodwill		3,035,477			977,774
TOTAL ASSETS	$	36,564,496		$	12,868,473
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	$	1,272,099		$	697,633
Due to related parties		1,757,523			1,032,895
Current portion of consideration payable		1,785,277			206,250
Current portion of operating lease liability		647,472			247,627
Current portion of equipment financing payable		46,751			-
Derivative liabilities		743,942			418,412
Current portion of promissory notes payable		-			85,000
Convertible debt		9,075,483			1,254,479
Total Current Liabilities		15,328,547			3,942,296

Promissory notes payable		-			85,000
Operating lease liability		4,193,830			972,843
Equipment financing payable		274,248			-
Deferred tax liabilities		30,972			30,972
TOTAL LIABILITIES	$	19,827,597		$	5,031,111
Commitments and Contingencies
EQUITY
Preferred stock $0.0001 par value; 500,000,000 stock authorized:
Series B preferred stock, 6,372,874 and 6,372,874 shares issued and outstanding as of June 30, 2026, and December 31, 2025, respectively		637			637
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 6,153,780 and 80,699 shares issued and outstanding as of June 30, 2026, and December 31, 2025, respectively (1)		615			8
Additional paid-in capital		45,661,728			28,856,496
Accumulated other comprehensive income		-			(2,339	)
Accumulated deficit		(28,926,081	)		(21,017,440	)
TOTAL EQUITY		16,736,899			7,837,362
TOTAL LIABILITIES AND EQUITY	$	36,564,496		$	12,868,473

⁽¹⁾

Reflects the 1-for-3.5 reverse stock split that became effective on September 2, 2025, the 1-for-4 reverse stock split that became effective on January 6, 2026, and the 1-for-6 reverse stock split that became effective on March 10, 2026. On a combined basis, this reflects retrospectively a reverse stock split of 1-for-84

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

PMGC Holdings Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

For the three months and six months ended June 30, 2026 and June 30, 2025

(Unaudited - Expressed in United States dollars)

	Three months ended June 30, 2026			Three months ended June 30, 2025			Six months ended June 30, 2026			Six months ended June 30, 2025

Revenue	$	1,306,610			-			1,988,604			-
Total revenue		1,306,610			-			1,988,604			-

Cost of Goods Sold		920,919			-			1,372,439			-
Gross margin	$	385,691			-			616,165			-

Operating expenses
Bad debt expense		-			-			1,567			-
Depreciation and amortization		281,237			20			440,681			1,105
Marketing and promotion		25,403			82,329			59,767			117,923
Consulting fees		1,225,200			198,345			2,435,215			745,902
Office and administrative		1,605,320			319,839			2,987,056			528,870
Professional fees		552,556			284,175			1,144,579			550,643
Investor relations		29,265			46,827			45,398			116,777
Research and development		310,219			66,675			357,280			99,108
Repairs and maintenance		111,233			-			112,647			-
Foreign exchange (gain) loss		9,030			(883	)		20,580			(497	)
Travel and entertainment		63,437			16,191			171,778			55,411
Total operating expenses	$	4,212,900			1,013,518			7,776,548			2,215,242

Other income (expense)
Finance cost		(58,987	)		-			(620,909	)		-
Change in fair value of derivative liabilities		1,383,046			-			701,920			-
Dividend income		1,938			3,016			4,427			3,016
Gain on the termination of the intangible asset		-			-			-			129,613
Interest income		83,159			36,527			146,080			65,383
Interest expense		(582,241	)		(2	)		(1,056,411	)		(10,476	)
Realized gain (loss) on investments		63,241			95,184			86,392			(371,494	)
Unrealized gain (loss) on investments		(32,265	)		299,303			5,322			238,899
Gain(loss) on disposal of PP&E		900			-			(63,345	)		-
Other income		9,446			-			11,175			-
Net loss from continuing operations	$	(2,958,972	)		(579,490	)		(7,945,732	)		(2,160,301	)

Net income (loss) from discontinued operations (Note 4)		17,590			17,135			37,091			(10,509	)
Total net loss		(2,941,382	)		(562,355	)		(7,908,641	)		(2,170,810	)
Other comprehensive income (loss)
Currency translation adjustment		-			(406	)		2,339			(885	)
Total comprehensive loss	$	(2,941,382	)		(562,761	)		(7,906,302	)		(2,171,695	)

Basic and diluted loss per share
Continuing operations	$	(0.607	)		(39.138	)		(2.973	)		(202.484	)
Discontinued operations	$	0.004			1.157			0.014			(0.985	)
Weighted average shares outstanding⁽¹⁾		4,876,498			14,806			2,672,745			10,669

(1)

PMGC Holdings Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended June 30, 2026, and 2025

(Unaudited - Expressed in United States dollars)

	Common Stock				Series B Preferred Stock				Additional					Accumulated other
	Number of shares		Amount		Number of shares		Amount		paid-in capital		Accumulated deficit			comprehensive income			Total
	#		$		#		$		$		$			$			$
Balance, April 1, 2025		8,419		1		6,372,874		637		23,006,772		(14,878,082	)		(816	)		8,128,512
Issued and issuable shares for acquisition of intangible assets		143		-		-		-		-		-			-			-
Exercise of Pre-funded Warrants		1,968		-		-		-		-		-			-			-
Issuance of common shares under ATM program		7,062		1		-		-		1,467,581		-			-			1,467,582
Share-based compensation		-		-		-		-		15,842		-			-			15,842
Net loss for the period		-		-		-		-		-		(562,355	)		-			(562,355	)
Currency translation adjustment		-		-		-		-		-		-			(406	)		(406	)
Balance, June 30, 2025		17,592		2		6,372,874		637		24,490,195		(15,440,437	)		(1,222	)		9,049,175

Balance, April 1, 2026		1,936,771		194		6,372,874		637		38,590,322		(25,984,699	)		-			12,606,454
Issuance of common shares in the partial settlement of Pre-Paid Purchases		3,954,542		395		-		-		6,005,380		-			-			6,005,775
Issuance of registered shares		262,467		26		-		-		891,481		-			-			891,507
Share-based compensation		-		-		-		-		174,545		-			-			174,545
Net loss for the period		-		-		-		-		-		(2,941,382	)		-			(2,941,382	)
Balance, June 30, 2026		6,153,780		615		6,372,874		637		45,661,728		(28,926,081	)		-			16,736,899

PMGC Holdings Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the six months ended June 30, 2026, and 2025

(Unaudited - Expressed in United States dollars)

	Common Stock					Series B Preferred Stock				Additional						Accumulated other
	Number of shares			Amount		Number of shares		Amount		paid-in capital			Accumulated deficit			comprehensive income			Total
	#			$		#		$		$			$			$			$

Balance, January 1, 2025		5,227			1		-		-		19,929,527			(13,269,627	)		(337	)		6,659,564
Settlement of accrued bonus liability		-			-		6,372,874		637		149,363			-			-			150,000
Issued and issuable shares for acquisition of intangible assets		148			-		-		-		43,535			-			-			43,535
Exercise of Series A Warrants		1,649			-		-		-		1,698,058			-			-			1,698,058
Issued pursuant to the registered direct offering		1,538			-		-		-		1,245,306			-			-			1,245,306
Repurchase of shares		(1	)		-		-		-		(179	)		-			-			(179	)
Round up shares due to reverse stock splits		1			-		-		-		-			-			-			-
Exercise of Pre-funded Warrants		1,968			-		-		-		-			-			-			-
Issuance of common shares under ATM program		7,062			1		-		-		1,467,581			-			-			1,467,582
Share-based compensation		-			-		-		-		(42,996	)		-			-			(42,996	)
Net loss for the period		-			-		-		-		-			(2,170,810	)		-			(2,170,810	)
Currency translation adjustment		-			-		-		-		-			-			(885	)		(885	)
Balance, June 30, 2025		17,592			2		6,372,874		637		24,490,195			(15,440,437	)		(1,222	)		9,049,175

Balance, January 1, 2026		80,699			8		6,372,874		637		28,856,496			(21,017,440	)		(2,339	)		7,837,362
Reverse stock split effect		(4	)		-		-		-		(1	)		-			-			(1	)
Issuance of common shares in the partial settlement of the Pre-Paid Purchases		5,810,618			581		-		-		15,730,991			-			-			15,731,572
Issuance of registered shares		262,467			26		-		-		891,481			-			-			891,507
Share-based compensation		-			-		-		-		182,761			-			-			182,761
Net loss for the period		-			-		-		-		-			(7,908,641	)		-			(7,908,641	)
Currency translation adjustment		-			-		-		-		-			-			2,339			2,339
Balance, June 30, 2026		6,153,780			615		6,372,874		637		45,661,728			(28,926,081	)		-			16,736,899

⁽¹⁾

PMGC Holdings Inc.

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2026, and 2025

(Unaudited - Expressed in United States dollars)

	June 30, 2026			June 30, 2025
Operating activities
Net loss	$	(7,908,641	)	$	(2,170,810	)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense		1,567			-
Depreciation and amortization		479,307			1,622
Finance cost		620,503
Share-based compensation		182,761			(42,996	)
Straight-line rent expense		61,730			(230	)
Change in fair value of derivative liabilities		(701,920	)		-
Non-cash interest expense		1,040,865			9,684
Research and development costs for intangible assets		-			14,358
Gain on termination of intangible asset		-			(129,613	)
Loss on the sale of Skincare		-			39,676
Loss on disposal of PP&E		63,345			-
Realized loss (gain) on sale of investments		(86,392	)		371,494
Unrealized loss(gain) on investments		(5,322	)		(238,899	)

Changes in operating assets and liabilities:
Receivables and other receivables		529,958			(104,473	)
Prepaid expenses and deposits		(37,000	)		120,999
Inventory		(278,909	)		22,966
Accounts payable and accrued liabilities		1,081,564			(169,268	)
Customer deposits		-			(20,496	)
Due to related parties		(10,790	)		(397,728	)
Cash flows used in operating activities¹	$	(4,967,374	)	$	(2,693,714	)

Investing activities
Purchase of investments		(2,870,818	)		(995,100	)
Proceeds from sale of investments		2,883,988			1,109,921
Purchase of equipment		(335,518	)		-
Acquisition of businesses, net of cash acquired		(5,846,192	)		-
Issuance of promissory note		-			(127,300	)
Purchase of intangible assets		-			(6,000	)
Cash flows used in investing activities¹	$	(6,168,540	)	$	(18,479	)

Financing activities
Exercise of Series A warrants		-			1,938,772
Proceeds from the issuance of common stock and warrants		-			1,484,028
Share issuance costs		-			(531,290	)
Repurchase of shares and warrants		-			(179	)
Issuance of common shares under ATM agreement		-			1,519,437
Repayment towards promissory note		(170,000	)		-
Equipment financing proceeds		353,468			-
Repayment towards equipment financing		(131,585	)		-
Proceeds from the Pre-Paid Purchases of Equity Purchase Facility (“ELOC”), net		22,929,610			-
Proceeds from issuance of registered shares		891,507			-
Cash flows provided by financing activities	$	23,873,000		$	4,410,768
Effect of exchange rate changes on cash		2,339			(400	)

Increase in cash		12,739,425			1,698,175
Cash, beginning of period		5,402,333			3,984,453
Cash, ending of period	$	18,141,758		$	5,682,628

PMGC Holdings Inc.

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2026, and 2025

(Unaudited - Expressed in United States dollars)

Supplemental cash flow information:
Cash paid for interest	$	135,220	$	791
Cash paid for taxes		-		-

Non-cash Investing and Financing transactions:
Common stock issued and issuable on acquisition of intangible asset		-		43,535
Shares received as proceeds for the sale of Skincare		-		728,550
Series B preferred shares issues to settle accrued bonus liability		-		150,000
Consideration payable settled through termination of the agreement		-		894,151
Common stock issued to settle a portion of the ELOC		15,731,572		-

¹	Refer to Note 4 for disclosure of cash flows used in operating and investing activities of discontinued operations.

Organization and nature of operations

PMGC Holdings Inc. (formerly Elevai Labs Inc.) (“PMGC”) was incorporated under the laws of the State of Delaware on June 9, 2020. During 2024, PMGC completed a reorganization that included a name change and redomiciling from Delaware to Nevada. PMGC and its 100% owned subsidiaries, PMGC Research Inc. (formerly Elevai Research Inc) (“PMGC Research”), PMGC Impasse Corp (formerly Elevai Skincare Inc.), NorthStrive Biosciences Inc. (formerly Elevai Biosciences, Inc), “NorthStrive Biosciences”, PMGC Capital LLC (“Pacific Capital”), Pacific Sun Packaging Inc. (“Pacific Sun”), AGA Precision Systems LLC (“AGA”), ELAB Opportunity Holdings LLC (“ELAB Opportunity”) and SVM Machining Inc.(“SVM”), NorthStrive Defense Tech LLC (“NorthStrive Defense Tech”), A&B Aerospace, Inc. (“A&B”) and NorthStrive Sponsor I LLC (the “Sponsor”), together with NorthStrive Acquisition Corp I, which is 51% owned by PMGC, are collectively referred to in these consolidated financial statements as “the Company.”

As part of its diversification and growth strategy, the Company completed the following acquisitions during the six months ended June 30, 2026:

	●	On February 2, 2026, the Company completed the acquisition of SVM Machining, Inc., a California-based precision machining and aerospace manufacturing company (Note 5).

	●	On May 11, 2026, the Company completed the acquisition of A&B Aerospace, Inc., a California-based precision machining company serving aerospace customers (Note 5).

On April 2, 2026, the Company announced the formation of a new wholly owned subsidiary, NorthStrive Defense Tech LLC (“NorthStrive Defense Tech”). NorthStrive Defense Tech was established to operate in the defense technology sector, with an initial focus on drone technology, autonomous systems, and next-generation unmanned defense solutions. The Company intends for NorthStrive Defense Tech to serve as a platform to identify, acquire, license, and commercialize advanced defense technologies through acquisitions, licensing arrangements, strategic partnerships, and other commercialization pathways. The Company expects to leverage its existing operating subsidiaries, including AGA Precision Systems LLC and SVM Machining, Inc., which operate within the aerospace, defense, and space sectors, to support potential commercialization opportunities.

NorthStrive Sponsor I LLC (the “Sponsor”) is a wholly owned subsidiary of PMGC. The Sponsor acts as sponsor of NorthStrive Acquisition Corp I (“NorthStrive Acquisition”), a special purpose acquisition company incorporated as an exempted company with limited liability under the laws of the Cayman Islands with effect from April 27, 2026, and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. PMGC holds a 51% interest in NorthStrive Acquisition.

PMGC currently manages and operates a diverse portfolio of wholly owned subsidiaries:

●

NorthStrive BioSciences Inc. – a biopharmaceutical company focusing on the development and acquisition of cutting-edge aesthetic medicines and therapeutic products. Our lead asset, EL-22, is leveraging a first-in-class engineered probiotic approach to address obesity’s pressing issue of preserving muscle while on weight loss treatments, including GLP-1 receptor agonists.

●

PMGC Capital – a multi-strategy investment firm focused on direct investments, strategic lending, and acquiring undervalued companies and assets across diverse markets. Our mission is to identify and seize high-potential opportunities, delivering sustainable growth and maximizing returns on capital.

●

ELAB Opportunity - a wholly owned Utah subsidiary which was formed to facilitate and hold assets related to the Company’s secured pre-paid purchase and financing collateral arrangements. ELAB Opportunity supports the Company’s strategic financing structure and related treasury activities.

●

Pacific Sun- a California-based custom IT packaging company providing innovative, sustainable, and technology-driven packaging solutions to industrial and consumer markets.

●

AGA - a California-based precision engineering and CNC machining company specializing in the design and production of high-tolerance components for industrial and technology applications. In October 2025, AGA acquired substantially all the operating assets of Indarg Engineering, Inc. AGA expands PMGC’s advanced manufacturing footprint and enhances its capacity to deliver vertically integrated engineering and production solutions across multiple sectors.

●

SVM - a California-based precision machining and aerospace manufacturing company specializing in high-precision components and complex machining solutions for aerospace, defense, and industrial applications. SVM enhances PMGC’s advanced manufacturing capabilities and expands the Company’s footprint in the aerospace and defense sectors.

	●	NorthStrive Defense Tech - a wholly owned subsidiary focused on defense technology, including drone technology, autonomous systems, and next-generation unmanned defense solutions. NorthStrive Defense Tech was formed to identify, acquire, license, and commercialize advanced defense technologies.
	●	A&B - a California-based precision machining company producing high-tolerance machined components and assemblies for aerospace customers. A&B further extends PMGC’s aerospace manufacturing capacity and its qualification and certification base.
	●	NorthStrive Sponsor I - a wholly owned subsidiary that acts as the sponsor of NorthStrive Acquisition Corp I, a special purpose acquisition company. The Sponsor was formed to hold the Company’s sponsor interest in, and to fund the formation and offering costs of, that special purpose acquisition company.
	●	NorthStrive Acquisition Corp I - a special purpose acquisition company incorporated as an exempted company with limited liability under the laws of the Cayman Islands with effect from April 27, 2026, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.

Going Concern

These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders and the ability of the Company to obtain necessary equity financing to continue operations, and ultimately the attainment of profitable operations.

As of June 30, 2026, and December 31, 2025, the Company had net working capital of $5,504,403 and $2,928,959, respectively, and an accumulated deficit of $28,926,081 and $21,017,440, respectively. Furthermore, for the six months ended June 30, 2026, and 2025, the Company incurred net losses of $7,908,641 and $2,170,810, respectively, and used $4,967,374 and $2,693,714, respectively, in cash flows from operating activities. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The assessment of whether the going concern assumption is appropriate requires management to take into account all available information about the future, which is at least, but not limited to, twelve (12) months from the date the financial statements are issued. The Company is aware that material uncertainties related to events or conditions may cast substantial doubt upon the Company’s ability to continue as a going concern.

Management’s plans that alleviate substantial doubt about the Company’s ability to continue as a going concern include: (a) raising additional debt or equity financing and (b) the acquisition of cash flow generating assets or businesses. Although the Company has been successful in raising funds in the past, and expects to do so in the future, there are no guarantees that it will be able to raise funds as anticipated.

Summary of Significant Accounting Policies

Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and are expressed in United States dollars. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, we have included all adjustments considered necessary for a fair presentation and such adjustments are of a normal recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the years ended December 31, 2025, and 2024. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2026.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of PMGC and its 100% owned subsidiaries, PMGC Impasse, NorthStrive BioSciences, PMGC Capital, ELAB Opportunity, Pacific Sun, AGA, SVM, A&B, NorthStrive Sponsor LLC and NorthStrive Acquisition Corp I. All intercompany accounts, transactions and profits were eliminated in the unaudited condensed consolidated financial statements.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to revenue recognition, the collectability of receivables, valuation of inventory, fair value of investments in securities, derivative liabilities and stock options, useful lives and recoverability of long-lived assets, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgements about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the unaudited condensed consolidated financial statements in the period they are determined.

Foreign Currency Translation

The Company’s functional and reporting currency is the U.S. dollar. The functional currency of PMGC Research is the Canadian dollar. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets, liabilities, and items recorded in income arising from transactions denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income.

The accounts of PMGC Research are translated to U.S. dollars using the current rate method. Accordingly, assets and liabilities are translated into U.S. dollars at the period-end exchange rate while revenues and expenses are translated at the average exchange rates during the period. Related exchange gains and losses are included in a separate component of stockholders’ equity as accumulated other comprehensive income (loss).

There have been no material changes to the Company’s significant accounting policies as disclosed in our Form 10-K for the year ended December 31, 2025, filed with the SEC on March 30, 2026.

New Accounting Standards

Recently Adopted Accounting Standards

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), intended to improve reportable segments disclosure requirements primarily through enhanced disclosures about significant segment expenses.

In December 2023, the FASB issued “ASU 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures” (“ASU 2023-09”) which amends the Codification to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires additional disaggregation of the reconciliation between the statutory and effective tax rate for an entity and of income taxes paid, both of which are disclosures required by current GAAP. The amendments improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments in ASU 2023-09 apply to all entities that are subject to Topic 740, Income Taxes. For public business entities, the amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. The Company adopted the ASU prospectively for the period ending December 31, 2025, the effect being only related to our disclosures with no impact on our results of operations or financial condition.

ASU 2023-07 includes a requirement to disclose significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, the title and position of the CODM, an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources, and all segments’ profit or loss and assets disclosures. ASU 2023-07 is effective for all public companies for fiscal years beginning after December 15, 2023, and interim periods for the interim period beginning on January 1, 2025. Adoption of ASU 2023-07 did not have a material impact on the Company’s consolidated financial statement.

In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures (Subtopic 220-40), which requires enhanced disclosures of nature and composition of certain expense captions presented in the income statement, including inventory purchases, employee compensation, depreciation, and other significant expenses. The Company adopted this guidance during the year ended December 31, 2025. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements but resulted in additional disclosures in the notes to the consolidated financial statements.

Recently Issued Accounting Standards

The Company assesses the adoption impacts of recently issued, but not yet effective, accounting standards by the Financial Accounting Standards Board on the Company’s unaudited condensed consolidated financial statements.

There are no recently issued accounting standards which may have effect on the Company’s unaudited condensed consolidated financial statements

Assets and liabilities held for sale and Discontinued operations

Pursuant to an Asset Purchase Agreement with an unrelated third party, dated December 31, 2024, the Company agreed to sell its skincare business for (i) 1,267,040 shares of common stock of the buyer, having a market value of $728,550 at the closing of the agreement; (ii) buyer’s assumption of certain liabilities; and, (iii) $56,525 in cash, to be paid upon the sale of specified inventory existing as of the Closing.

Following the closing which occurred on January 16, 2025 (the “Closing” or “Closing Date”), buyer will pay additional earn-out consideration for the sale, if and when payable: (a) buyer will pay, for each year ending on the anniversary of the Closing Date during the five-year period following the Closing, an amount, if any, equal to 5% of the sales generated during such year from the existing products as of the Closing; and (b) buyer will pay a one-time payment of $500,000 if buyer achieves $500,000 in revenue from sales of the existing hair and scalp products as of the Closing on or before the 24-month anniversary of the Closing Date.

The following table summarizes the major line items for the skincare business that are included in loss from discontinued operations, net of taxes in the consolidated statements of operations:

	Three months ended June 30, 2026		Three months ended June 30, 2025		Six months ended June 30, 2026		Six months ended June 30, 2025
Revenue	$	-	$	-	$	-	$	152,381
Cost of goods sold		-		-		-		30,530
Gross profit	$	-	$	-	$	-	$	121,851

Expenses
Depreciation		-		-		-		517
Marketing and promotion		-		-		-		6,924
Consulting fees		-		-		-		-
Office and administrative		-		7,661		-		54,875
Professional fees		-		-		-		50,460
Investor relations		-		-		-
Research and development		-		-		-		16,921
Foreign exchange (gain) loss		-		-		-		1,875
Travel and entertainment		-		-		-		10,726
Total expenses	$	-	$	7,661	$	-	$	142,298

Other income (expense)
Other income		17,590		24,796		37,091		49,614
Interest expense		-		-		-		-
Loss on the sale of Skincare		-		-		-		(39,676	)
Net income (loss) from discontinued operations	$	17,590	$	17,135	$	37,091	$	(10,509	)

The Company recorded a loss on sale of discontinued operations of $39,676. The proceeds on sale, which was the fair value of the buyer shares received on Closing, amounted to $728,550, and the carrying amounts of the net assets and liabilities sold amounted to $768,226.

The following represents the cash flows from operating and investing activities of discontinued operations for the six months ended June 30, 2026 and 2025:

	June 30, 2026		June 30, 2025
Cashflows used in operating activities	$	-	$	(174,767	)
Cashflows used in investing activities		-		-

5.	Business combinations

Pacific Sun Packaging Inc.

On July 7, 2025, the Company completed the acquisition of 100% of the outstanding shares of Pacific Sun Packaging Inc. (“Pacific Sun”). The acquisition was accounted for under ASC 805, Business Combinations. Refer to Note 5 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for further details of the acquisition and related purchase price allocation.

The acquisition included contingent consideration with a maximum potential payment of $250,000, which was recognized at fair value as of the acquisition date and is classified as a liability. The fair value was initially estimated using a probability-weighted discounted cash flow approach.

The contingent consideration was recognized at fair value as of the acquisition date and is classified as a liability. The fair value was estimated using a probability-weighted discounted cash flow approach, incorporating management’s revenue projections and an estimated discount rate of approximately 11%.

As of June 30, 2026, the estimated fair value of the contingent consideration liability was $217,204. The Company remeasures the contingent consideration liability at each reporting date. Changes in the liability due to the passage of time are recognized as accretion expense, while other changes in fair value, if any, are recognized in earnings. For the three months ended June 30, 2026, the Company recognized accretion expense of $5,578. For the six months ended June 30, 2026, the Company recognized accretion expense of $10,955.

AGA

On July 18, 2025, the Company acquired 100 percent of the membership interests of AGA. The acquisition was accounted for under ASC 805. Refer to Note 5 in the Form 10-K for the year ended December 31, 2025 for further details of the acquisition and related purchase price allocation.

Indarg Engineering, Inc.

On October 26, 2025, AGA acquired substantially all of the operating assets of Indarg Engineering, Inc. The transaction was accounted for as a business combination under ASC 805. Refer to Note 5 in the Form 10-K for the year ended December 31, 2025 for further details, including the purchase price allocation.

As part of the acquisition, the Company issued a promissory note with a principal amount of $170,000, bearing interest at 8% per annum and payable in equal quarterly installments over a two-year term. As of June 30, 2026, the Company made repayments of $172,576 to settle the promissory note.

SVM

On February 2, 2026, the Company completed the acquisition of 100% of the outstanding common stock of SVM. As consideration for the acquisition, the Company paid cash of $2,000,000, recognized an indemnification holdback of $250,000, included a cash balance component of $130,000, recorded a net working capital adjustment of $69,148, and recognized contingent consideration with an acquisition-date fair value of $555,000. Total consideration was $3,004,148.

The contingent consideration is based on SVM’s 2026 revenue performance and has a maximum payout of $1,250,000. The contingent consideration was recognized at fair value as of the acquisition date and is classified as a liability. The fair value was estimated using a probability-weighted discounted cash flow approach based on projected revenue outcomes and a risk-adjusted discount rate of 14%. The liability will be remeasured at each reporting date, with changes in fair value recognized in earnings.

The following table summarizes the fair value of consideration transferred and the preliminary allocation of the purchase price to the assets acquired and liabilities assumed:

Cash	$	2,000,000
Target cash balance delivered with the company		130,000
Working capital adjustment		69,148
Indemnification holdback		250,000
Earnout payable		555,000
Total consideration	$	3,004,148

Net assets (liabilities) acquired of the Company:
Cash	$	179,239
Receivables, net		323,800
Inventory		43,890
Property and equipment		637,000
Intangible - customer relationships		252,000
Intangible – brand name		131,000
Intangible- backlog		127,000
Intangible- intellectual properties and certifications		487,000
Accounts payable and accrued liabilities		(56,747	)
Lease liability		(1,111,015	)
Total net assets (liabilities)	$	2,124,182

Goodwill	$	879,966

Goodwill recognized primarily reflects expected synergies from integrating SVM’s operations and workforce and is not expected to be deductible for tax purposes. The results of SVM’s operations are included in the consolidated financial statements beginning February 2, 2026.

A&B Aerospace, Inc.

On May 11, 2026, the Company completed the acquisition of 100% of the issued and outstanding shares of A&B, a California-based precision machining business serving aerospace customers, on a cash-free, debt-free basis. The transaction was accounted for as a business combination under ASC 805. Consideration comprised cash of $4,500,000, of which $4,275,000 was paid to the sellers at closing and $225,000 was retained by the Company as an indemnification holdback, plus the estimated closing cash balance of $748,717 and a net working capital adjustment of $89,357, being the amount by which estimated closing net working capital of $945,026 exceeded the net working capital target of $855,669. Total consideration was $5,338,073.

The purchase price allocation is provisional. The final adjustment amount contemplated by the stock purchase agreement had not been determined as of June 30, 2026, and the Company is continuing to evaluate the fair values assigned to the assets acquired and the liabilities assumed. Measurement period adjustments, if any, will be recognized within one year of the acquisition date.

The following table summarizes the fair value of consideration transferred and the preliminary allocation of the purchase price to the assets acquired and liabilities assumed:

Cash paid at closing	$	4,575,000
Indemnification holdback		225,000
Net working capital adjustment		538,073
Total consideration	$	5,338,073

Net assets (liabilities) acquired of the Company:
Cash	$	748,717
Receivables, net		470,681
Inventory		514,611
Prepaid expenses and deposits		6,360
Property and equipment		241,500
Intangible assets		2,434,159
Accounts payable and accrued liabilities		(156,576	)
Notes payable assumed		(99,116	)
Total net assets (liabilities)	$	4,160,336

Goodwill	$	1,177,737

Goodwill recognized primarily reflects expected synergies from integrating A&B’s operations, its assembled workforce and its qualification and certification base, and is not expected to be deductible for tax purposes. The results of A&B’s operations are included in the consolidated financial statements beginning May 11, 2026.

Receivables

As of June 30, 2026, and December 31, 2025, receivables consisted of trade receivables of $421,859 and $245,423, respectively. As of June 30, 2026, and December 31, 2025, the Company wrote off $1,567 and $55,380, respectively, of trade receivables deemed uncollectible. The remaining balance is considered collectible and therefore no further allowance for credit loss is deemed necessary.

Prepaids and Deposits

As of June 30, 2026, and December 31, 2025, prepaid and deposits consisted of the following:

	June 30, 2026		December 31, 2025
Prepaid expenses	$	333,600	$	363,314
Deposits		170,999		97,925
	$	504,599	$	461,239

8.	Inventory

As of June 30, 2026, and December 31, 2025, inventory consisted of the following:

	June 30, 2026		December 31, 2025
Finished goods	$	455,341	$	85,098
Work in progress		325,112		-
Raw materials		152,055		10,000
	$	932,508	$	95,098

Cost of inventory recognized as expense in cost of sales for the three months ended June 30, 2026 and 2025, totaled $771,174 and $nil and for the six months ended June 30, 2026 and 2025, totaled $1,186,557 and $nil, respectively. As at June 30, 2026 and December 31, 2025, the Company recorded an allowance for inventory of $nil.

9.	Investment in securities

The Company’s investments consist of publicly traded equity securities, warrants and a convertible debenture. These investments are reported under ASC 321 – Investments in Equity Securities and ASC 320 – Investments – Debt Securities, as applicable. The Company has classified the investments as held for trading.

The following table summarizes the changes in investments for the six months ended June 30, 2026:

	Public Company Investments			Private Company Investment		Convertible Debenture and Warrants			Total
Balance, December 31, 2025	$	398,943			125,000		48,111			572,054
Purchases	$	2,870,818			-		-			2,870,818
Proceeds on sale		(2,883,988	)		-		-			(2,883,988	)
Warrant exercise		48,111			-		(48,111	)		-
Realized gain		86,392			-		-			86,392
Unrealized gain		5,322			-		-			5,322
Balance, June 30, 2026	$	525,598			125,000		-			650,598

The Company accounts for investments in warrants as equity securities in accordance with ASC 321, Investments—Equity Securities, and measures such investments at fair value, with changes in fair value recognized in earnings.

Fair Value Measurement

The following table presents the Company’s financial instruments measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, in accordance with the fair value hierarchy of ASC 820, Fair Value Measurement (“ASC 820”). which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for inputs used in measuring fair value:

	●	Level 1: Quoted prices in active markets for identical assets or liabilities.

	●	Level 2: Observable inputs other than Level 1, either directly or indirectly.

	●	Level 3: Unobservable inputs, used when observable inputs are not available.

The Company measures certain financial instruments at fair value on a recurring basis. When observable market data is available, such inputs are used to measure fair value. When observable inputs are not available, the Company applies valuation techniques which require management to develop significant estimates and assumptions.

Certain non-financial assets, including goodwill, intangible assets and long-lived assets, are measured at fair value on a non-recurring basis when indicators of impairment exist.

June 30, 2026	Level 1		Level 2		Level 3		Total
Equity securities	$	525,598		–		–		525,598
Total	$	525,598		-		–		525,598

December 31, 2025	Level 1		Level 2		Level 3		Total
Equity securities	$	398,943		–		–		398,943
Warrants		-		48,111		–		48,111
Total	$	398,943		48,111		–		447,054

10.

Property, plant and equipment

	Computers		Machinery & Equipment			Furniture and office equipment		Leasehold improvement		Total

Cost
Balance, December 31, 2025	$	43,626		791,828		$	55,578		48,020		939,052
Business combinations		-		878,500			-		-		878,500
Additions		-		393,114			2,734		-		395,848
Disposal		-		(100,000	)		-		-		(100,000	)
Balance, June 30, 2026	$	43,626		1,963,442			58,312		48,020		2,113,400

Accumulated depreciation
Balance, December 31, 2025	$	6,534		40,746			2,740		3,512		53,532
Depreciation		6,820		149,437			6,840		6,101		169,198
Disposal		-		(10,955	)		-		-		(10,955	)
Balance, June 30, 2026	$	13,354		179,228			9,580		9,612		211,775

Net book value
December 31, 2025	$	37,092		751,082			52,838		44,508		885,520
June 30, 2026	$	30,272		1,784,214			48,732		38,407		1,901,625

11.

Intangible assets, net

	License # 2 (IPR&D asset)		Customer relationship		Brand		Backlog		Intellectual properties, certifications and other		Total
Cost:
Balance, December 31, 2025	$	2,072,632		682,300		150,000		29,000		-		2,933,932
Additions		15,000		-		-		-		-		15,000
Business combinations		-		1,792,964		131,000		374,054		1,133,141		3,431,159
Balance, June 30, 2026	$	2,087,632		2,475,264		281,000		403,054		1,133,141		6,380,091


Accumulated amortization:
Balance, December 31, 2025	$	-		16,946		14,568		10,021		-		41,535
Amortization		-		55,738		20,312		173,378		95,313		344,741
Balance, June 30, 2026	$	-		72,684		34,880		183,399		95,313		386,276

Net book value:
December 31, 2025	$	2,072,632		665,354		135,432		18,979		-		2,892,397
June 30, 2026		2,087,632		1,966,784		246,120		120,331		1,572,948		5,993,815

License #2:

On March 24, 2026, the Company entered into a third amendment to an existing license agreement related to License #2. The third amendment to the license agreement revised certain development milestone timelines and milestone payment provisions associated with the licensed products in the human health field. Key changes included clarification that, with respect to the licensed product BLS-M22, the Company may initiate a Phase 2 clinical trial without first initiating a Phase 1 clinical trial, subject to providing supporting scientific, preclinical, or regulatory documentation reasonably acceptable to the licensor. The third amendment further clarified that, if Phase 1 clinical trials are bypassed for BLS-M22, the milestone payment associated with initiation of a Phase 1 clinical trial would become payable concurrently with the milestone payment due upon initiation of a Phase 2 clinical trial. In connection with the third amendment, the Company agreed to pay a one-time, non-creditable and non-refundable amendment fee of $15,000.

12.

Equipment financing

In October 2025, the Company’s subsidiary, AGA, entered into an equipment finance agreement with U.S. Bank Equipment Finance to finance the purchase of certain manufacturing equipment and the equipment is pledged as collateral under the financing arrangement.

The total cost of the financed equipment was approximately $651,754, including sales tax. In connection with the purchase, the Company traded in existing machinery and financed $353,468 of the purchase price. (Note 10). The remaining portion of the equipment cost was paid during the year 2025.

Monthly payments for the equipment financing loan are $8,502 and the stated effective annual interest rate is approximately 7.23%.

As of June 30, 2026, the outstanding principal balance under the equipment financing loan was $320,999. Interest expense recognized for the six months ended June 30, 2026 was $10,041.

As at June 30, 2026	Loan payments ($)
2026 (remaining six months)		51,012
2027		102,024
2028		102,024
2029		102,024
2030		8,283
Total future payments	$	365,367
Less: imputed interest		(44,368	)
Outstanding principal balance	$	320,999

Current portion	$	81,475
Non-current portion	$	239,524

13.

Operating Leases

The Company’s subsidiaries, AGA, Pacific Sun, SVM and A&B entered into non-cancelable operating leases for the office and warehouse spaces occupied to operate its business.

The Pacific Sun lease was executed on July 9, 2025, and the Company committed to monthly lease payments of $6,300 through June 30, 2026. Thereafter, monthly payments increase by 3% each year starting on July 1, 2026. The lease expires on June 30, 2030. On October 20, 2025, the lease was modified to expand the premises to the entire building. The modification revised the monthly base rent and shifted the remaining term to commence payments on January 1, 2026, and end on December 31, 2030. Modified monthly base rent is $7,415 for 2026, increasing 3% annually thereafter. The modification was accounted for as a lease remeasurement under ASC 842; the lease liability and right-of-use asset were adjusted using the incremental borrowing rate.

The AGA lease was executed on July 19, 2025, and the Company committed to monthly lease payments of $18,905 through August 31, 2026. Thereafter, monthly payments increase to $22,020 starting on September 1, 2026 and increase by 3% each year starting on September 1, 2027. The lease expires on August 31, 2029. The Company committed to paying common area maintenance cost which is currently $1,045 per month.

The SVM lease commenced on February 2, 2026, and the Company committed to monthly base lease payments of $25,000 through January 31, 2028. The lease includes two one-year renewal options which management determined are reasonably certain to be exercised; accordingly, the lease term was determined to be 48 months for accounting purposes. Monthly base rent increases by 5% annually. The Company is also responsible for its proportionate share of property operating expenses, including common area maintenance, utilities, insurance and real property taxes, which are currently approximately $3,957 per month.

The A&B lease was signed on May 21, 2026 and commenced on June 1, 2026, with monthly base rent of $28,900. The lease includes one five-year extension option which management determined is reasonably certain to be exercised; accordingly, the lease term was determined to be 121 months for accounting purposes, expiring June 30, 2036. The Company paid a security deposit of $50,000 in connection with the lease.

The Company used a discount rate of 8%, as the incremental cost of borrowing, to calculate the present value of the future lease payments and the resulting operating lease liabilities and right-of-use assets.

The Company recognized a total lease cost related to its non-cancelable operating leases of $205,081 for the six months ended June 30, 2026, included in office and administrative expenses.

The Company recognizes right-of-use (“ROU”) assets and corresponding lease liabilities for operating leases in accordance with ASC 842, Leases. ROU assets represent the Company’s right to use underlying leased assets over the lease term and are initially measured at the amount of the lease liability, adjusted for initial direct costs, prepaid lease payments, and lease incentives.

As of June 30, 2026, the Company’s operating lease ROU assets had a carrying value of $4,800,629. During the six months ended June 30, 2026, additions to ROU assets were $4,962,054, relating to the Pacific Sun, AGA, SVM and A&B leases. Amortization of ROU assets for the six months ended June 30, 2026 was $161,426, which is included in operating expenses, primarily within office and administrative. The Company’s ROU assets relate primarily to office and warehouse facilities used in its operations.

As of June 30, 2026 and December 31, 2025, the Company recorded a security deposit of $163,117 and $81,757, associated with these operating leases.

Future minimum lease payments under the Company’s operating leases that have an initial non-cancelable lease term in excess of one year at June 30, 2026, are as follows:

As at June 30, 2026	Lease payments ($)
2026		497,960
2027		1,015,015
2028		1,053,121
2029		1,016,387
2030 and thereafter		2,928,049
Total future payments	$	6,510,532
Less: imputed interest		(1,669,231	)
Operating lease liabilities	$	4,841,302

Operating lease liabilities-current	$	647,472
Operating lease liabilities- non-current	$	4,193,830

14.

Convertible debt under ELOC Agreements

On September 23, 2025, the Company entered into a securities purchase agreement, establishing an equity line of credit of up to $20,000,000 through one or more secured pre-paid purchases of the Company’s common stock (the “First ELOC Agreement”). Under the First ELOC Agreement, the Company may, from time to time, sell and issue common stock to the investor pursuant to individual pre-paid purchases, subject to the terms and conditions of the First ELOC Agreement. Principal amounts received under the First ELOC Agreement bear interest at 8.5% per annum and have a term of 3 years from the draw dates. Principal and accrued interest is convertible at any time during the three-year term at the option of the investor, in whole or in part, at a price that equals 88% of the lowest VWAP during the 10 trading days preceding the applicable measurement date. If that calculated price is below the applicable floor price per share, the investor may elect to have the applicable purchase amount settled in cash rather than in shares.

On April 16, 2026, the Company entered into a second securities purchase agreement, establishing a further equity line of credit with an aggregate commitment amount of up to $40,000,000 through one or more secured pre-paid purchases of the Company’s common stock over a two-year commitment period (the “second ELOC Agreement”). Subsequent pre-paid purchases under the facility are subject to the terms and conditions of the agreement, including applicable original issue discount, interest, Nasdaq-related pricing floors and shareholder approval requirements. The agreement also provides the investor with participation rights in certain future debt or equity financings and is secured by subsidiary equity interests, with certain wholly owned subsidiaries providing full guaranties. At closing the Company also issued 262,467 registered shares of common stock to the investor for a purchase price of $1,000,000 (Note 16). Principal amounts received under the Second ELOC Agreement bear interest at 7.5% per annum and have a term of 15 months from the draw dates. Principal and accrued interest is convertible at any time during the term at the option of the investor, in whole or in part, at a price that equals 97% of the lowest VWAP during the 5 trading days preceding the applicable measurement date. If that calculated price is below the applicable floor price per share, the investor may elect to have the applicable purchase amount settled in cash rather than in shares.

The Company is accounting for the convertible debt host contracts under ASC 470-20, , Debt with Conversion and Other Options, at amortized cost and has determined that the conversion options meets the definition of an embedded derivative liability which is separately accounted for at fair value in accordance with ASC 815-15 Derivatives and Hedging — Embedded Derivatives (Note 15).

A continuity of the amortized cost of the convertible debt hosts contract are as follows:

	First ELOC Agreement			Second ELOC Agreement			Total
Balance, January 1, 2026	$	1,254,479		$	-		$	1,254,479
Principal		16,890,768			10,730,000			27,620,768
Fair value of embedded derivative liability		(3,392,520	)		(331,856	)		(3,724,376	)
Allocation of original issue discount and issuance cost ⁽¹⁾		(2,235,109	)		(1,835,546	)		(4,070,655	)
Accretion		335,797			280,496			616,293
Interest expense		268,297			145,322			413,619
Repayment through common stock		(10,632,356	)		(2,402,289	)		(13,034,645	)
Balance, June 30, 2026	$	2,489,356		$	6,586,127		$	9,075,483

⁽¹⁾	Total original issuance discounts and issuance costs amounted to $4,070,655, of which $3,450,152 were allocated to the amortized cost of the convertible debt and $620,503 were allocated to the derivative liabilities and recorded as finance cost in the statement of operations.

15.

Derivative liabilities

Liability classified stock purchase warrants

As of June 30, 2026, the following liability classified stock purchase warrants were outstanding:

Outstanding		Expiry date	Weighted average exercise price ($)
	5	April 27, 2027		236,619.43
	1	November 21, 2028		470,400
	6			275,582.86

As of June 30, 2026 and December 31, 2025, the weighted average life of derivative liability classified stock purchase warrants outstanding was 1.09 and 1.66 years, respectively.

Embedded derivative liabilities

The Company determined that the conversion features embedded in the secured pre-paid purchase instruments issued in connection with the ELOC arrangements were required to be separated from the convertible debt host contracts and accounted for as derivative liabilities. The derivative liabilities were initially recognized at fair value and are remeasured at fair value at each reporting date, with changes in fair value recognized in the condensed consolidated statement of operations.

During the six months ended June 30, 2026, the Company recognized additional derivative liabilities of $3,724,376 (Note 14). In connection with share settlements during the period, the Company derecognized $2,696,926 of derivative liabilities, with the corresponding amounts recorded to common stock and additional paid-in capital. The derivative liabilities were remeasured at fair value as of June 30, 2026 using a binomial option pricing model. The net change in fair value recognized in the condensed consolidated statement of operations for the six months ended June 30, 2026 was a gain of $701,920.

The following table summarizes the activity in the Company’s embedded derivative liabilities during the six months ended June 30, 2026:

	Amount
Balance, January 1, 2026	$	418,412
Addition		3,724,376
Change in fair value		(701,920	)
Derecognition upon settlement of convertible debt		(2,696,926	)
Balance, June 30, 2026	$	743,942

16.

Equity

Common Stock

Authorized

As of June 30, 2026, and December 31, 2025, the Company had 1,000,000,000 and 83,333,334 authorized shares of common stock, par value $0.0001.

Issued and outstanding

As of June 30, 2026, and December 31, 2025, the Company had 6,153,780 and 80,699 shares of common stock issued and outstanding, respectively.

Transactions during the six months ended June 30, 2026

During the six months ended June 30, 2026, the Company issued an aggregate of 4,107,385 shares of common stock in settlement of amounts outstanding under its First ELOC arrangement (Note 14). The shares were issued in multiple tranches between January 2, 2026 and June 30, 2026 pursuant to purchase notices delivered under the First ELOC agreement. The shares issued settled outstanding principal of $15,223,148 and accrued interest of $199,350.

In addition, on April 17, 2026 the Company issued 262,467 registered shares of common stock to the investor under the Second ELOC Agreement for a purchase price of $1,000,000, of which $891,507 was allocated to the registered shares after offering costs. During the period the Company also issued 1,703,233 shares of common stock in settlement of outstanding principal of $2,812,079 and accrued interest of $113,921 under the Second ELOC Agreement (Note 14).

Transactions during the six months ended June 30, 2025

On January 28, 2025, the Company entered into and completed a warrant inducement transaction with the holders of its Series A Common Stock Purchase Warrants pursuant to a warrant inducement agreement (“Series A Warrants”). Under the warrant inducement agreement, the exercise price of the outstanding Series A Warrants was reduced from $1,646.40 to $1,176 per share of common stock as an incentive for immediate exercise. As a result, the holders exercised all outstanding Series A Warrants, and the Company issued 1,649 shares of common stock, generating gross proceeds of $1,938,772.

On February 2, 2025, the Company issued six (6) shares of common stock to a consultant in relation to the acquisition of the License # 2 IPR&D asset.

On March 7, 2025, the Company repurchased one (1) share of common stock each from two existing shareholders for total consideration of approximately $52. The shares were retired upon repurchase.

On March 18, 2025, the Company entered into a securities purchase agreement with an existing investor to repurchase one (1) share of common stock and a warrant to purchase one (1) share of common stock at an exercise price of $352,800 per share. The total consideration paid in the transaction was $127. The repurchased share and warrants were retired and cancelled. The transaction was initiated by the existing investor.

On March 21, 2025, the Company entered into a Securities Purchase Agreement between the Company and certain institutional investors with respect to a registered direct offering for the offer and sale of 1,538 shares of common stock and 1,968 prefunded warrants for gross proceeds of $1,484,028, with the issuance cost of $238,722.

On March 26, 2025, the Company entered into a first amendment to the exclusive license agreement covering License # 2 (Note 12), expanding its rights to include the growing animal health market. The Company issued 142 shares of common stock in exchange for the expansion of its rights under License # 2.

During the six months ended June 30, 2025, the Company sold an aggregate of 7,062 shares of common stock under its at-the-market (ATM) equity offering program, generating total gross proceeds of approximately $1,519,437. After deducting total commissions and fees of approximately $51,855, net proceeds amounted to approximately $1,467,582. The shares were issued in multiple tranches between April and June 2025.

Preferred Stock

Authorized

As of June 30, 2026, and December 31, 2025, the Company had 500,000,000 of all preferred stock authorized, respectively, each having a par value of $0.0001 per stock. Of this amount, 300,000,000 were designated as Series B Preferred Stock, which are not publicly traded and not convertible into shares of common stock (“Series B Preferred Stock”) as of June 30, 2026 and December 31, 2025, respectively.

Issued and outstanding

As at June 30, 2026, and December 31, 2025, the Company had 6,372,874 and nil Series B Preferred Stock issued and outstanding.

Transactions during the six months ended June 30, 2026, and 2025

On March 26, 2025, at a special meeting of the shareholders, the shareholders approved the issuance of 3,036,437 shares of Series B Preferred Stock to GB Capital Ltd. as a signing bonus pursuant to that certain Second Amended GB Capital Consulting Agreement dated October 25, 2024, as amended; and 3,336,437 shares of Series B Preferred Stock to NorthStrive Companies Inc. as a signing bonus pursuant to that certain Second Amended NorthStrive Companies Consulting Agreement dated October 25, 2024, as amended (6,372,874 total Series B Preferred Stock). These bonuses, in the amount of $150,000, were accrued and included in due to related parties as of December 31, 2024.

Equity Warrants

Transactions during the six months ended June 30, 2026.

There was no equity warrants activity during the six months ended June 30, 2026.

Transactions during the six months ended June 30, 2025.

On January 28, 2025, in connection with the warrant inducement agreement (see above) and the exercise of the Series A Warrants, the Company issued 1,649 replacement warrants with an initial exercise price of $1,617.12 and a five-year term. On April 29, 2025, the exercise price of the replacement warrants were reset to the contractual floor price of $270.48 per share. Following the adjustment, each of the five investors held 1,971 warrants, resulting in a total of 9,856 replacement warrants outstanding at the adjusted exercise price, maintaining the aggregate exercise value of $2,665,836.

As noted above, on March 18, 2025, the Company entered into a securities purchase agreement with an existing investor to repurchase one (1) share of common stock and a warrant to purchase 1 share of common stock at an exercise price of $352,800 per share for a nominal amount.

On March 24, 2025, the Company consummated a registered direct offering with institutional investors, issuing 1,538 shares of common stock and 1,969 pre-funded warrants. The pre-funded warrants are immediately exercisable at an exercise price of $0.0084 per share, subject to a beneficial ownership limitation of 4.99%, which may be increased to 9.99% at the holder’s election.

As of June 30, 2026, the following equity warrants were outstanding:

Outstanding		Expiry date	Weighted average exercise price ($)
	2	August 28, 2026		352,800
	1	March 12, 2027		352,800
	12	March 24, 2028		39,514
	9,855	August 25, 2030		158.88
	9,870			300.96

As of June 30, 2026, and December 31, 2025, the weighted average life of equity warrants outstanding was 4.15 and 4.65 years, respectively.

Stock Options

The Company has a stock option plan included in the Company’s 2025 Equity Incentive Plan (the “Plan”) where the Board of Directors or any of its committees can grant Incentive Stock Options, Nonstatutory Stock Options, and Restricted Stock to employees, advisors and directors of the Company. As of June 30, 2026, the aggregate number of shares reserved for issuance pursuant to awards granted under the Plan was 1,112,636 shares (December 31, 2025 – 7,054 shares). The Plan shall remain in effect until it is terminated by the Board of Directors.

Transactions during the six-month ended June 30, 2026

On June 1, 2026, the Company granted 1,125,692 stock options to directors and officers of the Company under the Plan. The options have an exercise price of $1.77 per share, expire on June 1, 2031, and vest in 36 equal monthly tranches commencing July 1, 2026. The grant-date fair value was $1.3504 per option, or $1,520,085 in aggregate, estimated using the Black-Scholes option pricing model with the following assumptions: share price of $1.77, exercise price of $1.77, expected life of five years, expected volatility of 100%, expected dividend yield of nil, and a risk-free interest rate of 4.18%.

Transactions during the six-month ended June 30, 2025

There was no stock option activity during the six months ended June 30, 2025.

The continuity of stock options for the six months ended June 30, 2026, and December 31, 2025, is summarized below:

	Number of stock options		Weighted average exercise price
Outstanding, December 31, 2025		6		265,384
Granted		1,125,692		1.77
Forfeited		-		-
Exercised		-		-
Outstanding, June 30, 2026		1,125,698		3.18

As of June 30, 2026, the following options were outstanding, entitling the holders thereof the right to purchase one common stock for each option held as follows:

Outstanding		Vested		Expiry date	Weighted average exercise price ($)
	2		2	08-Feb-31		70,560
	1		1	30-Sep-32		157,584
	1		1	30-Sep-32		588,000
	1		1	1-May-33		588,000
	1		1	5-Mar-34		117,600
	1,125,692		-	1-Jun-31		1.77
	1,125,698		6			3.18

As of June 30, 2026, and December 31, 2025, the weighted average life of stock options outstanding was 4.92 years and 5.98 years, respectively.

Compensation cost for the June 1, 2026 grant is recognized on a graded-vesting basis, with each monthly tranche expensed over its respective vesting period.

For the six months ended June 30, 2026, the Company recognized share-based compensation of $182,761 (June 30, 2025 – $36,616), of which $168,268 related to the June 1, 2026 grant and $14,493 related to options granted in prior periods. As of June 30, 2026, unrecognized compensation cost related to unvested stock options was $1,351,817, which is expected to be recognized over the remaining vesting period through June 1, 2029.

17.

Related Party Transactions

Related parties consist of the following individuals and corporations:

●

Braeden Lichti, Non-executive, Non-employee Chairman

●

Jordan Plews, Former Director (resigned December 23, 2024) and CEO of Skincare and BioSciences (resigned January 16, 2025)

●

Graydon Bensler, Non-employee CFO, CEO and Director

●

Jeffrey Parry, Director (appointed June 1, 2023)

●

Julie Daley, Director (appointed June 1, 2023)

●

George Kovalyov, Director (appointed March 1, 2024)

●

GB Capital Ltd., controlled by Graydon Bensler

●

JP Bio Consulting LLC, controlled by Jordan Plews

●

BWL Investments Ltd., controlled by Braeden Lichti

●

NorthStrive Companies Inc., controlled by Braeden Lichti

●

Mystic Marine Advisors, controlled by Jeffrey Parry

Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company’s Board of Directors, corporate officers, and individuals with more than 10% control.

Remuneration attributed to key management personnel are summarized as follows:

	Three months ended June 30, 2026		Three months ended June 30, 2025		Six months ended June 30, 2026		Six months ended June 30, 2025
Consulting fees	$	175,200	$	147,700	$	352,800	$	295,400
Management fees		99,091		-		182,199		-
Director fees		41,640		83,290		83,280		83,290
Bonus		1,050,000		-		2,082,415		300,000
Salaries		-		-		-		26,228
Share-based compensation		174,545		15,842		182,761		36,616
	$	1,540,476	$	246,832	$	2,883,455	$	741,533

During the six months ended June 30, 2026:

The Company incurred consulting fees and contracted performance bonuses of $1,165,957 (June 30, 2025 - $281,000) to GB Capital Ltd., a company controlled by Graydon Bensler, CEO, CFO and Director.

The Company incurred consulting fees and contracted performance bonuses of $1,269,257 (June 30, 2025 - $314,400) to NorthStrive Companies Inc., a company controlled by the Company’s Chairman and former President.

The Company incurred director’s fees of $27,750 (June 30, 2025 – $27,750) to George Kovalyov, a director of the Company.

The Company incurred director’s fees of $27,780 (June 30, 2025 – $27,790) to Julie Daley, a director of the Company.

During the six months ended June 30, 2026, the Company reimbursed health insurance costs, for the benefit of Graydon Bensler, of $14,110 (June 30, 2025 - $nil) to GB Capital Ltd., a company controlled by Graydon Bensler, CEO, CFO and Director. In addition, the Company incurred housing costs, for the benefit of Graydon Bensler, of $47,767 (June 30, 2025 - $nil).

The Company incurred director’s fees of $27,750 (June 30, 2025 – $27,750) to Mystic Marine Advisors, LLC, a company owned and controlled by Jeffrey Parry, a director of the Company.

The Company incurred management fees of $78,788 (June 30, 2025 - $nil) to GB Capital Ltd., a company controlled by Graydon Bensler, CEO, CFO and Director, under a Secondment Agreement for management services.

The Company incurred management fees of $103,411 (June 30, 2025 - $nil) to NorthStrive Companies Inc., a company controlled by the Company’s Chairman and former President, under a Secondment Agreement for management services.

Jordan Plews, Former Director and former CEO of Skincare and BioSciences, earned a salary of $nil and $26,228 respectively during the six months ended June 30, 2026 and 2025.

During the six months ended June 30, 2026, the Company granted 1,125,692 stock options under the 2025 Equity Incentive Plan, all of which were granted to related parties, being five directors and officers of the Company. The options were granted on June 1, 2026, have an exercise price of $1.77 per share and a five-year term expiring June 1, 2031, and vest monthly in 36 equal tranches commencing June 1, 2026. The aggregate grant date fair value of these options was $1,520,085, determined using the Black-Scholes option pricing model, of which $168,268 was recognized as share-based compensation expense during the six months ended June 30, 2026.

Details of the fair value, as calculated on the grant date, to each related party in the current and prior periods, and the related expense recorded for the six months ended June 30, 2026, and 2025 are as follows:

	Six Months Ended June 30, 2026		Six Months Ended June 30, 2025		Grant date fair value
Braeden Lichti, Non-executive Chairman	$	67,307	$	11	$	659,029
Graydon Bensler, CEO, CFO and Director		67,307		11		659,029
Jordan Plews, Former Director and former CEO of Skincare and BioSciences²		-		11		50,995
Jeffrey Parry, Director		13,145		6,428		209,008
Julie Daley, Director		19,424		19,592		311,584
George Kovalyov, Director		15,578		10,562		121,243
	$	182,761	$	36,616	$	2,010,888

As of June 30, 2026 and December 31, 2025, the Company had $861,254 and $642,925, respectively due to companies controlled by Braeden Lichti, of which $861,254 and $642,925 respectively is unsecured, non-interest bearing and are due on demand.

As of June 30, 2026, the Company had $849,630 (December 31, 2025 - $342,077) due to GB Capital Ltd. controlled by Graydon Bensler, CEO, CFO and Director.

As of June 30, 2026, the Company recorded accrued director fees payable to related parties of $46,640, including $13,890 payable to Julie Daley (December 31, 2025- $13,890), $18,875 (December 31, 2025- $18,875) payable to George Kovalyov and $13,875 payable to Mystic Marine Advisors LLC controlled by Jeffrey Parry. These balances are unsecured, non-interest bearing, and due on demand.

These amounts are unsecured, non-interest bearing and are due on demand.

18.

Commitments and Contingencies

There were no commitments as of June 30, 2026, and December 31, 2025, or during the periods then ended.

As of June 30, 2026, the Company had an ongoing dispute that arose in the normal course of business and mediation discussions are ongoing. It is not yet possible to predict the likelihood of an unfavorable outcome, or the amount or range of potential loss.

19.

Concentrations

Customers

For the six months ended June 30, 2026, the Company had 1 key customer that represented approximately 11.93% of the Company’s revenue. The Company recorded 11.93% of its revenue from its largest customer. The Company’s largest customer, representing $237,245 of revenue, relates to precision machining and engineering work performed for a customer during the period.

The six months
Ended
June 30,

2026

Customer 1

11.93

Suppliers

During the six months ended June 30, 2026, the Company had 1 key supplier that represented approximately 12.60% of the cost incurred in the purchase of inventory. The table below represents a breakdown of each supplier as a percentage of the cost incurred:

	The six months Ended June 30, 2026
Supplier 1		12.60	%
		12.60	%

The Company continually evaluates the performance of its suppliers and the availability of alternatives to substitute or supplement its inventory production supply chain. The Company believes that a breakdown in supply from one of its key suppliers would be overcome in a short amount of time given the availability of alternatives.

20.

Reportable Segments and Geographic Areas

The Company’s continuing operations consist of three reportable segments: (i) corporate, treasury and biosciences (ii) IT packaging solutions (iii) precision engineering and machining. The Chief Executive Officer has been identified as the Chief Operating Decision Maker (CODM).

The following is a summary of the Company’s operations for the six months ended June 30, 2026, and assets and liabilities as of June 30, 2026, split between reportable segments:

	Corporate, Treasury and Biosciences			IT Packaging Solutions			Precision Engineering and Machining			Total
Revenue	$	-		$	364,567		$	1,624,037		$	1,988,604
Cost of sales	$	-		$	188,445		$	1,183,994		$	1,372,439
Gross profit	$	-		$	176,122		$	440,043		$	616,165

Expenses	$	5,557,467		$	222,916		$	1,996,165		$	7,776,548
Other income (expense)	$	(717,271	)	$	-		$	(68,078	)	$	(785,349	)
Net loss from continuing operations	$	(6,274,738	)	$	(46,794	)	$	(1,624,200	)	$	(7,945,732	)

Current Assets	$	17,962,603		$	386,430		$	2,483,917		$	20,832,950
Non-current assets	$	2,107,242		$	1,483,782		$	12,140,522		$	15,731,546
Total Assets	$	20,069,845		$	1,870,212		$	14,624,439		$	36,564,496

Current liabilities	$	13,110,256		$	30,308		$	2,187,983		$	15,328,547
Non-current liabilities	$	30,972		$	356,982		$	4,111,096		$	4,499,050
Total Liabilities	$	13,141,228		$	387,290		$	6,299,079		$	19,827,597

Total Equity	$	6,928,617		$	1,482,922		$	8,325,360		$	16,736,899

All of the Company’s revenue is generated with customers located in the United States. The majority of the Company’s continuing operations are conducted from and its assets are located in the United States. PMGC Research, the Company’s Canadian subsidiary, was located in Canada and provided limited operational support and research.

21.

Subsequent Events

Management has evaluated events subsequent to the six months ended June 30, 2026, up through August 13, 2026, for transactions and other events that may require adjustment of and/or disclosure in the consolidated financial statements.

Subsequent to June 30, 2026, the Company issued 1,942,055 shares of common stock in settlement of $2,114,000 of the outstanding balance under the second ELOC Agreement (Note 14). The shares were issued pursuant to six purchase notices delivered between July 1, 2026 and July 10, 2026 at share purchase prices of $1.07 to $1.10 per share. Following these settlements, the outstanding balance under the instrument was $5,849,641.

On July 2, 2026, AGA Precision Systems LLC and A&B Aerospace, Inc., both wholly owned subsidiaries of the Company, entered into a merger agreement pursuant to which AGA merged into A&B, with A&B continuing as the surviving entity. All membership interests in AGA were cancelled without consideration and all outstanding shares of A&B remain outstanding and unaffected. The merger was approved by the Company’s Board of Directors, acting as the sole shareholder of A&B and the sole member of AGA, and the effect and effective date of the merger are as prescribed by California law. As both entities are wholly owned subsidiaries of the Company, the merger has no effect on the consolidated financial statements.

On July 24, 2026, NorthStrive Acquisition Corp I, in which the Company holds a 51% interest through its wholly owned subsidiary NorthStrive Sponsor I LLC, publicly filed a registration statement with the SEC in respect of a proposed initial public offering of 10,000,000 units at a proposed price of $10.00 per unit, for gross proceeds of $100,000,000. The offering had not priced as of the date these condensed consolidated financial statements were issued, and there can be no assurance that it will be completed.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and the notes to those statements included elsewhere in this Quarterly Report and the audited consolidated financial statements and the other information set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission on March 30, 2026.

Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Organization and Overview of Operations

PMGC currently manages and operates a diverse portfolio of wholly owned subsidiaries:

●

NorthStrive BioSciences Inc. (“NorthStrive Bio”) – a biopharmaceutical company focusing on the development and acquisition of cutting-edge aesthetic medicines and therapeutic products. Our lead asset, EL-22, is leveraging a first-in-class engineered probiotic approach to address obesity’s pressing issue of preserving muscle while on weight loss treatments, including GLP-1 receptor agonists.

●

PMGC Capital LLC – a multi-strategy investment firm focused on direct investments, strategic lending, and acquiring undervalued companies and assets across diverse markets. Our mission is to identify and seize high-potential opportunities, delivering sustainable growth and maximizing returns on capital.

●

ELAB Opportunity Holdings LLC - a wholly owned Utah subsidiary - was formed to facilitate and hold assets related to the Company’s secured pre-paid purchase and financing collateral arrangements. ELAB Opportunity supports the Company’s strategic financing structure and related treasury activities.

●

Pacific Sun Packaging Inc. (“Pacific Sun”) - a California-based custom IT packaging company providing innovative, sustainable, and technology-driven packaging solutions to industrial and consumer markets.

●

AGA Precision Systems LLC. (“AGA”) - a California-based precision engineering and CNC machining company specializing in the design and production of high-tolerance components for industrial and technology applications. In October 2025, AGA acquired substantially all the operating assets of Indarg Engineering, Inc. AGA expands PMGC’s advanced manufacturing footprint and enhances its capacity to deliver vertically integrated engineering and production solutions across multiple sectors. On July 2, 2026, subsequent to the reporting period, AGA merged into A&B Aerospace, Inc., another wholly owned subsidiary of the Company, with A&B continuing as the surviving entity.

●

SVM Machining, Inc. (“SVM”) - a California-based precision machining and aerospace manufacturing company specializing in high-precision components and complex machining solutions for aerospace, defense, and industrial applications. SVM enhances PMGC’s advanced manufacturing capabilities and expands the Company’s footprint in the aerospace and defense sectors.

	●	NorthStrive Defense Tech LLC - a wholly owned subsidiary focused on defense technology, including drone technology, autonomous systems, and next-generation unmanned defense solutions. NorthStrive Defense Tech was formed to identify, acquire, license, and commercialize advanced defense technologies.

	●	A&B Aerospace, Inc. (“A&B”) - a California-based precision machining company producing high-tolerance machined components and assemblies for aerospace customers. A&B further extends PMGC’s aerospace manufacturing capacity and its qualification and certification base. A&B was acquired on May 11, 2026 (Note 5). On July 2, 2026, subsequent to the reporting period, AGA Precision Systems LLC merged into A&B, with A&B continuing as the surviving entity.

	●	NorthStrive Sponsor I LLC - a wholly owned subsidiary that acts as the sponsor of NorthStrive Acquisition Corp I, a special purpose acquisition company. The Sponsor was formed to hold the Company’s sponsor interest in, and to fund the formation and offering costs of, that special purpose acquisition company.

	●	NorthStrive Acquisition Corp I - a special purpose acquisition company incorporated as an exempted company with limited liability under the laws of the Cayman Islands with effect from April 27, 2026, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. PMGC holds a 51% interest in NorthStrive Acquisition Corp I; the remaining 49% interest is held by others.

Outlook

Management’s Plans

Over the next twelve months, we intend to focus on:

	●	Increasing revenue by achieving successful returns on capital through PMGC Capital LLC, our multi-strategy investment vehicle, by acquiring and managing undervalued assets, public and private investments, and structured financing opportunities.

	●	Establishing new wholly owned subsidiaries to develop and commercialize newly acquired or licensed assets across various industries.

	●	Utilizing clinical validation studies to strengthen the commercial potential and scientific credibility of our portfolio companies’ technologies.

	●	Advancing clinical development to progress NorthStrive Biosciences’ clinical assets toward Investigational New Drug (IND) applications.

	●	Pursuing additional acquisitions of operating business-to-business companies with positive EBITDA.

	●	Evaluating potential opportunities such as out licensing our biotechnology applications, potential spin-offs, and creating new publicly traded companies, such as Special Purpose Acquisition Corporations (“SPACs”)

Results of Operations

Comparison of the six months ended June 30, 2026 and 2025.

The following table provides certain selected financial information for continuing operations for the periods presented and does not include activity from the skincare business of the Company:

	Six Months Ended June 30, 2026			Six Months Ended June 30, 2025			Change
Revenue	$	1,988,604		$	-		$	1,988,604
Cost of goods sold	$	1,372,439		$	-		$	1,372,439
Gross margin	$	616,165		$	-		$	616,165
Consulting Fees	$	2,435,215		$	745,902		$	1,689,313
Office and Administration	$	2,987,056		$	528,870		$	2,458,186
Professional Fees	$	1,144,579		$	550,643		$	593,936
Investor Relations	$	45,398		$	116,777		$	(71,379	)
Research and Development	$	357,280		$	99,108		$	258,172
Marketing and Promotion	$	59,767		$	117,923		$	(58,156	)
Repairs and Maintenance	$	112,647		$	-		$	112,647
Travel and Entertainment	$	171,778		$	55,411		$	116,367
Foreign Exchange (Gain) Loss	$	20,580		$	(497	)	$	21,077
Bad Debt Expense	$	1,567		$	-		$	1,567
Total operating expenses	$	7,776,548		$	2,215,242		$	5,561,306
Other income (expense)¹	$	(785,349	)	$	54,941		$	(840,290	)
Net loss from continuing operation	$	(7,945,732	)	$	(2,160,301	)	$	(5,785,431	)
Basic and dilutive loss per common share- continuing operations	$	(2.973	)	$	(202.484	)	$	199.51
Weighted average number of shares outstanding – basic and diluted		2,672,745			10,669

Other income (expense) relates to finance cost, interest income, interest expense, dividend income, unrealized fair value gain/loss on investments, realized gain/loss on sale of investments, fair value change on derivative liabilities, gain on the termination of the intangible asset, gain and loss on disposal of PP&E, and other income.

Revenue

Revenue for the six months ended June 30, 2026, was $1,988,604 as compared to $nil for the six months ended June 30, 2025, an increase of $1,988,604. Revenue was generated by the Company’s newly acquired subsidiaries — Pacific Sun Packaging, AGA Precision Systems, SVM Machining and A&B Aerospace — none of which formed part of the Company in the comparative period, when the Company had no continuing revenue-generating operations following the disposal of the skincare business.

Our revenue by category is as follows:

	For the six months ended June 30, 2026
Pacific Sun – Sale of IT packaging	$	364,567
AGA – Machine work		496,645
SVM-Machine work		832,104
A&B – Aerospace components		295,288
Total Revenue	$	1,988,604

Cost of Revenue

Cost of revenue for the six months ended June 30, 2026, was $1,372,439 as compared to $nil for the six months ended June 30, 2025

The increase in cost of revenue is directly attributed to the revenue recognized by the newly acquired manufacturing subsidiaries during the six months ended June 30, 2026, compared to 2025. The following is a breakdown of the components of the cost of revenue:

For the six months ended June 30, 2026	Pacific Sun – Sale of IT packaging			AGA – Machine work		SVM – Machine work		A&B – Aerospace components		Total
Cost of inventory	$	132,884		$	344,109	$	602,451	$	226,300	$	1,305,744
Sales commission		10,361			-		-		-		10,361
Assembly and manufacturing expense		4,216			-		-		-		4,216
Shipping and handling cost		45,607			164		7,963		3,007		56,741
Inventory write down and wastage		(4,623	)		-		-		-		(4,623	)
Total Cost of Revenue	$	188,445		$	344,273	$	610,414	$	229,307	$	1,372,439

Gross Profit

Gross profit for the six months ended June 30, 2026, was $616,165, as compared to $nil for the six months ended June 30, 2025, an increase of $616,165. This represents an overall gross margin percentage of 30.98% for the six months ended June 30, 2026, compared to $nil in 2025. The increase in gross profit and gross margin percentage was primarily attributable to the inclusion of revenues generated from the newly acquired subsidiaries.

The following is a breakdown of gross profit percentage by category:

	For the six months ended June 30, 2026
Pacific Sun – Sale of IT packaging		48.31	%
AGA – Machine work		30.68	%
SVM-Machine work		26.64	%
A&B – Aerospace components		22.34	%
Overall Gross Profit Percentage		30.98	%

Research and Development Expenses

Research and development expenses for the six months ended June 30, 2026, were $357,280 compared to $99,108 for the six months ended June 30, 2025, an increase of $258,172. Research and development relates to the Company’s spending on clinical validation studies and product development. The increase is primarily attributable to research and professional services provided by INmune Bio Inc. to NorthStrive BioSciences at $12,000 per month, the continued advancement of the EL-22 research program, and development activity at the newly acquired subsidiaries, none of which were part of the Company in the comparative period.

Office and Administrative Expenses

Office and administrative expenses for the six months ended June 30, 2026 were $2,987,056, compared to $528,870 for the six months ended June 30, 2025, an increase of $2,458,186. The increase was primarily due to higher corporate activity at PMGC Holdings, including the costs of the Company’s financing initiatives and the management and integration of the newly acquired businesses, which drove general office and administrative costs to $2,405,949 from $458,639. Rent expense increased to $398,346 from $33,627, reflecting the leased premises of Pacific Sun, AGA, SVM and A&B Aerospace, none of which were part of the Company in the comparative period. Share-based compensation included in office and administration increased to $182,761 from $36,604, principally in respect of the options granted on June 1, 2026.

Consulting Fees

Consulting fees for the six months ended June 30, 2026 were $2,435,215, compared to $745,902 for the six months ended June 30, 2025, an increase of $1,689,313. The Company’s Chief Executive Officer, Chief Financial Officer, and Chairman provide services in a consulting capacity. The increase was primarily driven by bonus-related consulting expenses of $2,082,415, compared to $300,000 in the prior-year period, representing contractual bonuses approved by the Board of Directors and the Compensation Committee. The increases were partially offset by a decrease in external consulting services.

Professional Fees

Professional fees for the six months ended June 30, 2026 were $1,144,579, compared to $550,643 for the six months ended June 30, 2025, an increase of $593,936. The increase was primarily due to higher legal fees of $510,892 (2025 – $291,933) incurred on the acquisitions completed during the period, the equity line of credit financings and intellectual property matters; higher audit fees of $183,005 (2025 – $113,500) and accounting and tax fees of $93,937 (2025 – $61,856) reflecting the increased level of compliance activity; and $300,618 (2025 – $nil) of acquisition-related professional services, including staff placement fees, valuation fees, IT contracting, ISO management services and business transition consulting. This increase was partially offset by lower filing fees of $56,127 (2025 – $83,354).

Investor Relations

Investor relations expenses for the six months ended June 30, 2026 were $45,398, compared to $116,777 for the six months ended June 30, 2025, a decrease of $71,379. The decrease was primarily due to the reduction in the NASDAQ listing fee to $4,666 per month from $7,166 per month, together with the absence of certain investor relations costs incurred in the prior-year period, including $36,142 related to Broadridge and $10,000 related to Investor Hub.

Marketing and Promotion

Marketing and promotion expenses for the six months ended June 30, 2026 were $59,767, compared to $117,923 for the six months ended June 30, 2025, a decrease of $58,156. The decrease is attributable to the absence of comparable marketing agreements in the current period; the comparative period included two $125,000 promotional agreements that were not renewed.

Repairs and Maintenance

Repairs and maintenance expenses for the six months ended June 30, 2026 were $112,647, compared to $nil for the six months ended June 30, 2025. The increase reflects repairs and maintenance on the plant and machinery of the newly acquired manufacturing subsidiaries. The Company held no manufacturing assets in the comparative period.

Travel and Entertainment

Travel and entertainment expenses for the six months ended June 30, 2026 were $171,778, compared to $55,411 for the six months ended June 30, 2025, an increase of $116,367. The increase is due to a higher volume of business travel during the current period, primarily related to the acquisitions completed and the financing activities undertaken.

Other income (expense)

Other income (expense) for the six months ended June 30, 2026 was a net expense of $785,349, compared to net income of $54,941 for the six months ended June 30, 2025, an unfavorable variance of $840,290. The variance was primarily due to interest expense of $1,056,411 (2025 – $10,476), representing accretion of discount and contractual interest on the convertible debt host under the pre-paid purchases issued under the Company’s two equity line of credit facilities together with interest on the equipment financing obligations; finance costs of $620,909 (2025 – $nil) representing the original issue discount and transaction costs allocated to the bifurcated derivatives on those pre-paid purchases; and a loss on disposal of property and equipment of $63,345 (2025 – $nil). The unfavorable variance was partially offset by a fair value gain on derivative liabilities of $701,920 (2025 – $nil), a realized gain on investments of $86,392, compared to a realized loss of $371,494 in the prior-year period, and higher interest income of $146,080 (2025 – $65,383) earned on the substantially higher cash balances held following the financings. The prior-year period also included a $129,613 gain on the termination of an intangible asset and an unrealized gain on investments of $238,899, compared to $5,322 in the current period.

Comparison of the three months ended June 30, 2026 and 2025.

The following table provides certain selected financial information for continuing operations for the periods presented and does not include activity from the skincare business of the Company:

	Three Months Ended June 30, 2026			Three Months Ended June 30, 2025			Change
Revenue	$	1,306,610		$	-		$	1,306,610
Cost of goods sold	$	920,919		$	-		$	920,919
Gross margin	$	385,691		$	-		$	385,691
Consulting Fees	$	1,225,200		$	198,345		$	1,026,855
Office and Administration	$	1,605,320		$	319,839		$	1,285,481
Professional Fees	$	552,556		$	284,175		$	268,381
Investor Relations	$	29,265		$	46,827		$	(17,562	)
Research and Development	$	310,219		$	66,675		$	243,544
Depreciation and Amortization	$	281,237		$	20		$	281,217
Marketing and Promotion	$	25,403		$	82,329		$	(56,926	)
Repairs and Maintenance	$	111,233		$	-		$	111,233
Travel and Entertainment	$	63,437		$	16,191		$	47,246
Foreign Exchange (Gain) Loss	$	9,030		$	(883	)	$	9,913
Total operating expenses	$	4,212,900		$	1,013,518		$	3,199,382
Other income (expense)¹	$	868,237		$	434,028		$	434,209
Net loss from continuing operation	$	(2,958,972	)	$	(579,490	)	$	(2,379,482	)
Basic and dilutive loss per common share- continuing operations	$	(0.607	)	$	(39.138	)	$	38.532
Weighted average number of shares outstanding – basic and diluted		4,876,498			14,806

¹	Other income (expense) relates to finance cost, interest income, interest expense, dividend income, unrealized fair value gain/loss on investments, realized gain/loss on sale of investments, fair value change on derivative liabilities, gain and loss on disposal of PP&E, and other income.

Revenue, Cost of Revenue and Gross Margin

Refer to the analysis under the six months ended June 30, 2026 above.

Research and Development Expenses

Research and development expenses for the three months ended June 30, 2026 were $310,219, compared to $66,675 for the three months ended June 30, 2025, an increase of $243,544. The increase is primarily attributable to research and professional services provided by INmune Bio Inc. to NorthStrive BioSciences at $12,000 per month, together with development activity at the newly acquired subsidiaries.

Office and Administrative Expenses

Office and administrative expenses for the three months ended June 30, 2026 were $1,605,320, compared to $319,839 for the three months ended June 30, 2025, an increase of $1,285,481. The increase was primarily due to higher corporate activity at PMGC Holdings, including the costs of the financing initiatives and the management and integration of the newly acquired businesses, which drove general office and administrative costs to $1,243,205 from $296,806. Rent expense increased to $187,570 from $7,191, reflecting the leased premises of the newly acquired subsidiaries, including the A&B Aerospace facility taken on during the quarter. Share-based compensation included in office and administration increased to $174,545 from $15,842.

Consulting Fees

Consulting fees for the three months ended June 30, 2026 were $1,225,200, compared to $198,345 for the three months ended June 30, 2025, an increase of $1,026,855. The Company’s Chief Executive Officer, Chief Financial Officer, and Chairman provide services in a consulting capacity. The increase was primarily attributable to bonus-related consulting expenses of $1,050,000 (2025 – $nil), representing contractual bonuses approved by the Board of Directors and the Compensation Committee. The increases were partially offset by a decrease in external consulting services.

Professional Fees

Professional fees for the three months ended June 30, 2026 were $552,556, compared to $284,175 for the three months ended June 30, 2025, an increase of $268,381. The increase was primarily due to higher legal fees of $254,379 (2025 – $154,816) incurred on the A&B Aerospace acquisition, the new equity line of credit facility and intellectual property matters; higher audit fees of $82,000 (2025 – $53,500); and $157,330 (2025 – $nil) of acquisition-related professional services, including staff placement fees, valuation fees and business transition consulting. These increases were partially offset by lower accounting and tax fees of $33,920 (2025 – $61,856).

Investor Relations

Investor relations expenses for the three months ended June 30, 2026 were $29,265, compared to $46,827 for the three months ended June 30, 2025, a decrease of $17,562. The decrease is primarily attributable to the reduction in the NASDAQ listing fee to $4,666 per month from $7,166 per month in the comparative quarter.

Marketing and Promotion

Marketing and promotion expenses for the three months ended June 30, 2026 were $25,403, compared to $82,329 for the three months ended June 30, 2025, a decrease of $56,926. The decrease is attributable to the absence in the current quarter of the promotional agreements incurred in the comparative quarter, which were not renewed.

Repairs and Maintenance

Repairs and maintenance expenses for the three months ended June 30, 2026 were $111,233, compared to $nil for the three months ended June 30, 2025. The increase reflects repairs and maintenance on the plant and machinery of the newly acquired manufacturing subsidiaries.

Travel and Entertainment

Travel and entertainment expenses for the three months ended June 30, 2026 were $63,437, compared to $16,191 for the three months ended June 30, 2025, an increase of $47,246. The increase is due to a higher volume of business travel in the current quarter, primarily related to the A&B Aerospace acquisition and the equity line of credit financing.

Other income (expense)

Other income (expense) for the three months ended June 30, 2026 was net income of $868,237, compared to net income of $434,028 for the three months ended June 30, 2025, a favorable variance of $434,209. The favorable variance was primarily due to a fair value gain on derivative liabilities of $1,383,046 (2025 – $nil), partially offset by interest expense of $582,241 (2025 – $2), comprising accretion of discount and contractual interest on the convertible debt host under the pre-paid purchases together with interest on the equipment financing obligations; finance costs of $58,987 (2025 – $nil) on Secured Pre-Paid Purchase #1 issued in April 2026 under the new $40 million equity line of credit facility; and an unrealized loss on investments of $32,265, compared to an unrealized gain of $299,303 in the comparative quarter. These items were partially offset by interest income of $83,159 (2025 – $36,527) and a realized gain on investments of $63,241 (2025 – $95,184).

Liquidity and Capital Resources

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and ultimately the attainment of profitable operations.

As of June 30, 2026, we had cash of $18,141,758 and as of December 31, 2025, we had cash of $5,402,333. The increase between December 31, 2025 and June 30, 2026 was attributable to cash provided by financing activities exceeding cash used in operating and investing activities. As of June 30, 2026 and December 31, 2025, the Company had a net working capital of $5,504,403 and $2,928,959, respectively, and has an accumulated deficit of $28,926,081 and $21,017,440, respectively. Furthermore, for the six months ended June 30, 2026, and 2025, the Company incurred a net loss of $7,908,641 and $2,170,810, respectively and used $4,967,374 and $2,693,714, respectively of cash flows for operating activities. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company believes it will have sufficient funds for at least the next 12 months from the issuance date of the unaudited condensed consolidated financial statements.

Our principal liquidity requirements are for working capital, capital expenditure and research and development. We fund our liquidity requirements primarily through cash on hand and the issuance of common and preferred stock.

The following table provides selected financial data as of June 30, 2026, and December 31, 2025, respectively

	June 30, 2026		December 31, 2025		Change
Current assets	$	20,832,950	$	6,871,255	$	13,961,695
Current liabilities	$	15,328,547	$	3,942,296	$	11,386,251
Working capital	$	5,504,403	$	2,928,959	$	2,575,444

The following table summarizes our cash flows from operating, investing and financing activities from continuing operations:

	Six Months Ended June 30, 2026			Six Months Ended June 30, 2025			Change
Cash used in operating activities	$	(4,967,374	)	$	(2,693,714	)	$	(2,273,660	)
Cash used in investing activities	$	(6,168,540	)	$	(18,479	)	$	(6,150,061	)
Cash provided by financing activities	$	23,873,000		$	4,410,768		$	19,462,232

Cash Flow from Operating Activities

For the six months ended June 30, 2026, net cash flows used in operating activities was $4,967,374 compared to $2,693,714 used during the six months ended June 30, 2025, respectively, primarily due to the net loss for the period and the timing of settlement of assets and liabilities.

Cash Flows from Investing Activities

During the six months ended June 30, 2026, net cash used in investing activities was $6,168,540, compared to $18,479 for the same period in 2025. The increase was primarily driven by the Company’s acquisition of SVM for cash consideration of $2,019,909, the acquisition of A&B Aerospace for cash consideration of $3,826,283, purchases of investment securities through PMGC Capital, and purchases of property and equipment, partially offset by cash proceeds from the sale of investments. In comparison, investing activities during the six months ended June 30, 2025 were limited, with no business acquisitions; the Company made strategic investments in publicly traded companies of $995,100 and advanced $127,300 under a short-term promissory note, offset by proceeds from the sale of investments of $1,109,921.

Cash Flows from Financing Activities

During the six months ended June 30, 2026, net cash provided by financing activities was $23,873,000, compared to $4,410,768 for the same period in 2025. The increase was primarily attributable to net cash proceeds of approximately $14.09 million from the second, third and fourth Pre-Paid Purchases under the Company’s $20 million equity line of credit facility, a further $9.73 million from the first Pre-Paid Purchase and the concurrent sale of registered shares under the new $40 million facility entered into on April 16, 2026, and $353,468 of equipment financing proceeds.

These inflows were partially offset by the settlement in full of the promissory notes payable on April 16, 2026 and repayments made toward the equipment financing loan during the period. During the six months ended June 30, 2025, financing activities consisted primarily of $1,245,306 in proceeds from the issuance of common stock and pre-funded warrants, $1,698,058 in proceeds from the exercise of Series A warrants and $1,467,583 from the sale of common shares under the At-the-Market share sales agreement.

Critical Accounting Policies and Significant Judgments and Estimates

This discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to revenue recognition, the collectability of receivables, valuation of inventory, fair value of investments in securities, derivative liabilities and stock options, useful lives and recoverability of long-lived assets, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgements about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined.

The Company’s policy for intangible assets require judgement in determining whether the present value of future expected economic benefits exceeds capitalized costs. The policy requires management to make certain estimates and assumptions about future economic benefits related to its operations. Estimates and assumptions may change if new information becomes available. If information becomes available suggesting that the recovery of capitalized cost is unlikely, the capitalized cost is written off/impaired to the consolidated statement of operations.

The assessment of whether the going concern assumption is appropriate requires management to take into account all available information about the future, which is at least, but not limited to, 12 months from the date the financial statements are issued. The Company is aware that material uncertainties related to events or conditions may cast substantial doubt upon the Company’s ability to continue as a going concern.

Foreign Currency Translation

The Company’s functional and reporting currency is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets, liabilities, and items recorded in income arising from transactions denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income.

Stock-Based Compensation

Employees - The Company accounts for share-based compensation under the fair value method which requires all such compensation to employees, including the grant of employee stock options, to be calculated based on its fair value at the measurement date (generally the grant date), and recognized in the consolidated statement of operations over the requisite service period.

Nonemployees - During June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”) to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees. Under the requirements of ASU 2018-07, the Company accounts for share-based compensation to non-employees under the fair value method which requires all such compensation to be calculated based on the fair value at the measurement date (generally the grant date) and recognized in the statement of operations over the requisite service period.

During the six months ended June 30, 2026 and 2025, the Company recorded $182,761 and ($42,996), respectively, in share-based compensation expense, of which $182,761 and $36,604, is included in office and administration and $nil and ($79,600), respectively, is included in discontinued operations. Within discontinued operations for the six months ended June 30, 2025, ($73,768) and ($5,832) is included in office and administration and research and development, respectively. Share-based compensation recognized in the current period relates principally to the 1,125,692 options granted on June 1, 2026 at an exercise price of $1.77, having a grant-date fair value of $1,520,085 and vesting monthly over 36 tranches.

Determining the appropriate fair value model and the related assumptions requires judgment. During the six months ended June 30, 2026 and the year ended 2025, the fair value of each option grant was estimated using a Black-Scholes option-pricing model.

The expected volatility represents the historical volatility of comparable publicly traded companies in similar industries, adjusted for variables such as stock price, market capitalization and life cycle. Due to limited historical data, the expected term for options granted is equal to the contractual life. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of stock options. The Company has not paid and does not anticipate paying cash dividends on its shares of common stock; therefore, the expected dividend yield is assumed to be zero.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditure or capital resources that is material to investors.

JOBS Act

On April 5, 2012, the Jumpstart Our Business Startups Act (the “JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, eases certain reporting requirements for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Future Related Party Transactions

The Board of Directors is required to approve all related party transactions. All related party transactions are made or entered into on terms that are no less favorable to use than can be obtained from unaffiliated third parties.

Impact of Inflation

We do not believe the impact of inflation on our Company is material.

Inflation Risk

We are also exposed to inflation risk. Inflationary factors, such as increases in labor costs, could impair our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses.

Market Risk

Market risk is the risk of loss arising from adverse changes in market rates and prices. Our market risk exposure is generally limited to those risks that arise in the normal course of business, as we do not engage in speculative, non-operating transactions, nor do we utilize financial instruments.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at the end of the period covered by this Quarterly Report.

Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures (as defined in § 240.13a-15(e) or 240.15d-15(e) of Regulation S-K) were effective to provide reasonable assurance that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information (i) is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures and (ii) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

We recognize that any controls system, no matter how well designed and operated, can provide only reasonable assurance of achieving its objectives, and our management necessarily applies its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the period covered by this Quarterly Report that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act).

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not currently a party to any pending legal proceedings that we believe will have a material adverse effect on our business or financial conditions. We may, however, be subject to various claims and legal actions arising in the ordinary course of business from time to time.

ITEM 1A. RISK FACTORS

As a smaller reporting company, we are not required to make disclosures under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) There have been no sales of unregistered equity securities which took place in the fiscal quarter beginning on April 1, 2026 to June 30, 2026 that we have not previously disclosed in a Current Report on Form 8-K filed with the SEC.

(b) Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) Not applicable.

(b) Not applicable.

(c) During the fiscal quarter ended June 30, 2026, none of the Company’s directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted, modified or terminated any “Rule 10b5-1 trading arrangement” or any “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

Item 6. Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.

EXHIBIT INDEX

Exhibit No.		Description
3.1		Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s registration statement on Form S-1 filed on February 12, 2025).
3.2		Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s registration statement on Form S-1 filed on February 12, 2025).
3.3		Certificate of Designations, Rights, and Preferences of Series B Preferred Stock (incorporated by reference to Exhibit 3.3 to the Company’s registration statement on Form S-1 filed on February 12, 2025).
3.4		Amended and Restated Certificate of Designations, Rights, and Preferences of Series B Preferred Stock (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K filed on February 21, 2025).
3.5		Certificate of Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Form 8-K filed on March 6, 2025).
3.6		Certificate of Amendment filed on August 28, 2025 (included as Exhibit 3.1 to the current report on Form 8-K filed on September 4, 2025 and incorporated herein by reference).
3.7		Certificate of Amendment filed on September 15, 2025 (included as Exhibit 3.1 to the current report on Form 8-K filed on September 17, 2025 and incorporated herein by reference).
3.8		Certificate of Amendment filed on January 6, 2026 (included as Exhibit 3.1 to the current report on Form 8-K filed on January 6, 2026 and incorporated herein by reference).
3.9		Certificate of Amendment filed on March 4, 2026 (included as Exhibit 3.1 to the current report on Form 8-K filed on March 10, 2026 and incorporated herein by reference).
10.1		Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K filed on April 17, 2026).
10.2		Form of Secured Pre-Paid Purchase #1 (incorporated by reference to Exhibit 10.2 to the current report on Form 8-K filed on April 17, 2026).
10.3		Stock Purchase Agreement for A&B Aerospace, Inc. dated as of May 11, 2026 (incorporated by reference to the current report on Form 8-K filed on May 13, 2026).
31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document.
101.SCH		Inline XBRL Schema Document.
101.CAL		Inline XBRL Calculation Linkbase Document.
101.DEF		Inline XBRL Definition Linkbase Document.
101.LAB		Inline XBRL Label Linkbase Document.
101.PRE		Inline XBRL Presentation Linkbase Document.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document filed as Exhibit 101).

#	Management contract or compensatory plan.

*	The schedules, exhibits or similar attachments have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. The Company will furnish copies of any schedules, exhibits, or similar attachments to the SEC upon request. Certain portions of this exhibit have been redacted.

+	Portions of this exhibit have been redacted.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PMGC Holdings Inc.

Date: August 14, 2026	By:	/s/ Graydon Bensler
	Name:	Graydon Bensler
	Title:	Chief Executive Officer and Chief Financial Officer
		(Principal Executive, Accounting and Financial Officer)

Pmgc Holdings Inc — Quarterly Report (Form 10-Q)

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