Ms. Hamutal Yitzhak reports

ELSE NUTRITION REPORTS SECOND QUARTER 2026 RESULTS HIGHLIGHTING IMPROVED MARGINS, LOWER NET LOSS AND PATH TOWARD PROFITABILITY

Else Nutrition Holdings Inc. has released its financial results for the 2026 second quarter ended June 30, 2026. All figures are in Canadian dollars unless otherwise indicated. The financial statements and MD&A (management's discussion and analysis) are available on SEDAR+ under the company's profile.

"The second quarter continued to demonstrate the meaningful impact of the restructuring and cost-efficiency initiatives we have implemented over the past year," said Hamutal Yitzhak, chief executive officer of Else Nutrition. "While revenue remained constrained by our limited working capital and resulting inventory shortages, including out-of-stock positions across many of our products and several of our best sellers, the underlying economics of the business continued to improve. We are currently completing production to replenish inventory and restoring product availability remains our immediate commercial priority.

"For the first six months of 2026, gross margin increased to approximately 32 per cent from approximately 13 per cent in the first half of 2025, despite revenue declining to $2.49-million from $3.59-million. At the same time, operating expenses declined by approximately 32 per cent to $2.43-million from $3.60-million and net loss was reduced by approximately 69 per cent to $1.61-million from $5.10-million. We believe these results demonstrate that the cost-efficiencies achieved through our restructuring are sustainable and provide a substantially stronger operating foundation from which to scale. Notwithstanding these operational improvements, the company continues to face significant working capital constraints and limited liquidity, and its ability to restore inventory levels, fully satisfy customer demand and execute its growth plans remains dependent on securing additional capital.

"Our current revenue performance does not reflect the level of consumer demand we believe exists for Else products; rather, it reflects our present ability to finance production and maintain adequate inventory. Subject to securing sufficient capital to fund production and working capital, we believe restoring consistent availability of our core products can drive a meaningful recovery in revenue without rebuilding the cost structure that existed historically. With adequate funding to support production, inventory replenishment and growth, management believes the company has a pathway to achieving initial profitability within approximately 12 to 15 months.

"Looking ahead, our immediate priorities are securing capital, rebuilding inventory, restoring service levels to customers and retailers, and converting the operational efficiencies achieved over the past year into sustainable financial performance. We remain focused on positioning Else to achieve positive cash flow and long-term profitability," concluded Ms. Yitzhak.

2026 second quarter and first-half financial results

Revenue for the three months ended June 30, 2026, was $1.02-million, compared with $1.50-million in the second quarter of 2025. Revenue for the first six months of 2026 was $2.49-million, compared with $3.59-million in the first six months of 2025. The decrease primarily reflects inventory shortages and out-of-stock positions resulting from working capital constraints.

Operating expenses for the second quarter of 2026 decreased to $1.24-million from $1.34-million in the second quarter of 2025. For the first six months of 2026, operating expenses decreased approximately 32 per cent to $2.43-million from $3.60-million in the comparable prior-year period.

Gross profit for the second quarter of 2026 was $224,000, representing a gross margin of approximately 22 per cent, compared with a gross loss of $55,000 in the second quarter of 2025. For the first six months of 2026, gross profit increased to $809,000, representing a gross margin of approximately 32 per cent, compared with gross profit of $454,000 and a gross margin of approximately 13 per cent in the first half of 2025.

Net loss for the second quarter of 2026 decreased to $1.05-million from $1.44-million in the second quarter of 2025. For the first six months of 2026, net loss decreased approximately 69 per cent to $1.61-million from $5.10-million in the first half of 2025.

Cash and cash equivalents as of June 30, 2026, were $116,000, including restricted cash.

The company filed its second quarter 2026 financial statements and related filings on Sept. 14, 2026, resulting in the lifting of the cease trade order effective Sept. 16, 2026, at which time the company's common shares will return to normal trading. The financial statements and MD&A are available on SEDAR+ under the company's profile.

About Else Nutrition Holdings Inc.

Else Nutrition Holdings is a food and nutrition company in the international expansion stage focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

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