Mr. Mike Marchelletta reports

JACK NATHAN HEALTH ANNOUNCES ITS Q4 AND YEAR END FISCAL 2025 FINANCIAL RESULTS

Jack Nathan Medical Corp. today released its audited consolidated annual financial results for the fourth quarter of fiscal 2025, and fiscal year ended Jan. 31, 2025. Jack Nathan Health's financial statements are prepared in accordance with international financial reporting standards (IFRS).

Disclosure regarding filing timing

As previously disclosed in a press release issued on June 9, 2025, the company was unable to file its annual financial statements, MD&A (management's discussion and analysis), and related CEO (chief executive officer) and CFO (chief financial officer) certifications for the fiscal year ended Jan. 31, 2025, by the prescribed filing deadline of May 31, 2025. The delay was due to operational restructuring, resource realignment and transition impacts following the divestiture of its Canadian primary care operations and the winding down of Mexico operations. The company is pleased to confirm that it has now completed the filings within the 90-day permitted period, and all required documents are available on SEDAR+.

Management commentary

Mike Marchelletta, chief executive officer, commented:

"Fiscal 2025 was a pivotal year of transition for Jack Nathan Health. We successfully completed the divestiture of our Canadian primary care and licensee business, which significantly improved our balance sheet and eliminated legacy obligations. Following year-end, we also ceased all clinic operations in Mexico after the termination of our agreement with Walmart Mexico. With both legacy business segments now exited, our current focus is on internal restructuring, stabilizing our operations and preserving cash while evaluating future strategic opportunities. We believe these actions have positioned the company for a more focused path forward."

For the fiscal year ended Jan. 31, 2025, total consolidated revenues were $19.1-million, consistent with the prior year. Revenues from continuing operations increased 26 per cent to $8.7-million driven by the full-year contribution from MedSpa operations and the continued activity of the Mexico division through fiscal year-end. MedSpa revenues were $1.03-million, up 90 per cent year over year. Discontinued operations contributed $10.4-million in revenue prior to the sale of the Canadian medical clinic and licensee business on Dec. 1, 2024.

Note on Mexico operations

The 2025 financial statements reflect the Mexico clinic operations as part of continuing operations, as these locations were active through Jan. 31, 2025. However, subsequent to year-end, all operations in Mexico were fully ceased as of June 30, 2025, following the formal termination of the company's agreement with Walmart Mexico. As such, the Mexico division is no longer part of Jack Nathan Health's active business going forward.

The company reported a loss from continuing operations of $2.5-million, compared with $1.3-million in the prior year. However, discontinued operations yielded a net gain of $9.99-million, largely driven by a $16.4-million gain on the sale of the Canadian operations.

Balance sheet as of Jan. 31, 2025:

• Cash of $2.2-million (Jan. 31, 2024 -- $3.06-million);
• Total assets of $3.54-million (Jan. 31, 2024 -- $11.19-million);
• Total liabilities of $2.22-million (Jan. 31, 2024 -- $17.13-million).

Working capital improved to $1.4-million, compared with a working capital deficit of $500,000 the year prior.

Shares outstanding

As of Jan. 31, 2025, the company had 87,099,159 common shares outstanding, 1.65 million stock options outstanding and 335,004 DSUs (deferred share units) outstanding.

For further information regarding the company's financial results for fiscal year ended Jan. 31, 2025, please refer to the audited annual consolidated financial statements of the company as at and for the 12 months ended Jan. 31, 2025, together with the corresponding MD&A, available at SEDAR+ and the Jack Nathan website.

About Jack Nathan Medical Corp.

Jack Nathan Health is a provider of medspa services in Canada and a former operator of one of the largest retail medical clinic networks in North America. Established in 2006 the company expanded its international footprint, delivering exceptional, state-of-the-art, turnkey medical centers in 253 locations globally, with 193 corporately owned and operated. In Canada, the company grew to 82 locations, including 80 clinics in Walmart locations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec, and two independent locations, with 22 corporate owned and operated clinics of which three included rehab services and six included medspa services. In Mexico, the company grew to 171 corporate owned clinics across Mexico within three divisions, including 165 retail clinics, five clinics inside Walmart distribution centres servicing Walmart associates and one multidisciplinary clinic. In December, 2024, Jack Nathan Health restructured its Canadian medical operations through an asset sale to Well Health Technologies Corp. Following the exit from its Walmart Mexico operations in May, 2025, the company continues to operate its Canadian medspa clinics and is actively evaluating strategic opportunities for its future business in Canada, Mexico and the United States.

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