Mr. Brian Kalish reports

XIGEM TECHNOLOGIES UPDATES STATUS OF TRIPARTITE LOAN AGREEMENT: CUSTOMER HELD IN DEFAULT OF LOAN OBLIGATIONS

Xigem Technologies Corp. has updated the status of the tripartite loan agreement as it was detailed in its press release dated April 30, 2025. Under the terms of the TLA facility, Physiomed Health Inc., an entity controlled by Dr. Scott Wilson, a director of the company, provided a credit facility of up to $500,000 to Xigem, which in turn advanced funds to Carnance Inc., a dealer of used cars in Ontario, Canada, in support of the company's EchoDigital business unit. Funds advanced to Carnance were secured through general security agreements, including all inventory being registered under the Personal Property Security Act of Ontario. As previously disclosed in the company's financial statements for the three- and nine-month periods ended Sept. 30, 2025, the company recognized a $500,000 loan payable to Physiomed and a corresponding $500,000 loan receivable from Carnance in connection with the TLA facility.

Carnance is currently the only customer for the company's EchoDigital business unit and, pursuant to a royalty and service-based management agreement as previously disclosed on March 8, 2023, has provided management services relating to EchoDigital. The company has significant economic dependence on that relationship. Xigem has identified a number of defaults by Carnance pursuant to the TLA facility and is assessing the implications of these matters, including with respect to the company's EchoDigital business unit and related commercial arrangements. The outcome of these matters cannot currently be determined.

Seperately, as previously disclosed, Brian Kalish, the company's chief executive officer and a director, had arranged for and personally guaranteed a line of credit for Carnance from a financial institution in August, 2024. The company is not a party to, and has no obligations under, that line of credit.

About Xigem Technologies Corp.

With software capable of improving capacity, productivity and overall operations for businesses, consumers and organizations, Xigem aims to position itself to become a leading technology provider for the near-trillion-dollar remote digital economy. iAgent, the company's patented technology, and EchoDigital, its software-as-a-service automotive shopping platform, are intended to provide organizations, businesses and consumers with the tools necessary to thrive in a vast array of digital working, learning, shopping and treatment environments while the company continually looks to aggregate a portfolio of innovative technologies capable of disrupting traditional business models.

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