Mr. William Hogan reports

NEPRA FOODS INC. REPORTS Q2 FISCAL 2026 FINANCIAL RESULTS WITH CONTINUED REVENUE GROWTH

Nepra Foods Inc. has released its financial results for the three and six months ended Sept. 30, 2025 (Q1 (first quarter) and Q2 (second quarter) of fiscal 2026). The unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) have been filed on SEDAR+.

For the six-month period ended Sept. 30, 2025, Nepra reported total revenue of $3,741,439 (Canadian) ($2.73-million (U.S.), based on average exchange rates for the period), representing a 49-per-cent increase compared with $2,511,736 (Canadian) ($1.84-million (U.S.)) for the same period in fiscal 2025 and a 60-per-cent increase from Q1. This growth was primarily driven by expanded sales of the company's core custom starch ingredients and plant proteins to key commercial customers for gluten-free and better-for-you consumer food products.

Gross profit for the six-month period rose to $1,218,894 (Canadian) ($890,000 (U.S.)), up from $513,288 (Canadian) ($376,000 (U.S.)) in the prior year, reflecting improved operational efficiencies and a higher gross margin of 33 per cent, compared with 20 per cent in the six months ended Sept. 30, 2024. These enhancements stem from optimized production processes and better sourcing of raw materials, which have helped mitigate input cost pressures in the plant-based ingredients market.

For the three-month period ended Sept. 30, 2025 (Q2 fiscal 2026), revenue totalled $1,925,448 (Canadian) ($1.41-million (U.S.)), a 60-per-cent increase from $1,206,553 (Canadian) ($884,000 (U.S.)) in Q2 fiscal 2025. Gross profit was $661,144 (Canadian) ($483,000 (U.S.)), with a margin of 34 per cent, compared with $281,712 (Canadian) ($206,000 (U.S.)) and a 23-per-cent margin in the prior-year quarter.

The increased net loss for the quarter was primarily due to non-cash fair value adjustments of U.S.-dollar-denominated outstanding warrants and the absence of the one-time gains from debt settlement and lease forgiveness in the prior period. Cash position strengthened to $118,983 from $44,737 at March 31, 2025, bolstered by $170,067 in equity issuances. Full details are available in our filings on SEDAR+.

"We are encouraged by the 49-per-cent year-over-year revenue growth to $3.74-million (Canadian) in the first half of fiscal 2026, underpinned by expanded sales to key commercial customers. The improvement in gross margins to 33 per cent demonstrates our progress in optimizing production and supply chain efficiencies, positioning us well for continued advancement toward sustainable profitability," said David Wood, chief financial officer

Nepra continues to prioritize operational cash flow generation and strategic financing to support expansion. Investors are encouraged to review the full financial statements and MD&A for detailed segment analysis, risk factors and forward-looking information.

About Nepra Foods Inc.

Nepra Foods is a specialty food company focused on innovative and proprietary allergen- and gluten-free food ingredient technologies. The company supports food manufacturers globally with formulations, ingredients and technical support to produce the next generation of healthy, nutritious foods.

We seek Safe Harbor.