{"url_path":"/sec/chai/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 EXHIBITS [TO BE UPDATED]**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1649009/0001493152-26-023908-index.html","accession_number":"0001493152-26-023908","cik":"0001649009","ticker":"CHAI","issuer_name":"Core AI Holdings, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1649009/0001493152-26-023908-index.html","primary_entity_key":"0001649009","primary_entity_name":"Core AI Holdings, Inc."},"word_count":10601,"has_tables":true,"body_markdown":"**ITEM\n19. EXHIBITS [TO BE UPDATED]**\n\n \n\n**Exhibit**\n \n**Description**\n\n3.1\n \n\n[Articles of Association of the Company (incorporated by reference to the Company’s Registration Statement on Form F-1/A filed on December 1, 2021)](https://www.sec.gov/Archives/edgar/data/1649009/000121390020023370/ea125930ex3-1_siyatamobile.htm)\n\n3.2\n \n[Notice\nOf Second Alteration of Articles of Siyata Mobile Inc., filed April 9, 2024 (incorporated by reference to Exhibit 3.1 of the\nCompany’s Current Report on Form 6-K filed on April 15, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024032954/ea020387701ex3-1_siyata.htm)\n\n3.3\n \n[Notice\nOf Fourth Alteration of Articles of Siyata Mobile Inc., filed October 29, 2024 (incorporated by reference to Exhibit 3.3 of\nAmendment No. 1 to the Company’s Registration Statement on Form F-1 filed on November 7, 2024).](http://www.sec.gov/Archives/edgar/data/1649009/000121390024091792/ea021876001ex3-3_siyata.htm)\n\n4.1\n \n[Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.1 to the Company’s Form 6-K filed on May 10, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024041837/ea020582301ex4-1_siyata.htm)\n\n4.2\n \n[Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.1 to the Company’s Form 6-K filed on July 2, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024052968/ea020791601ex4-1_siyata.htm)\n\n4.3\n \n[Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.1 of Amendment No. 1 to the Company’s Registration on Form F-1 filed on August 12, 2024).](http://www.sec.gov/Archives/edgar/data/1649009/000121390024064642/ea021034501ex4-1_siyata.htm)\n\n4.4\n \n\n[Form of Pre-funded Warrant to purchase 588,236 shares of Core AI Holdings Inc. at any exercise price of $0.00004](ex4-4.htm)\n\n10.01\n \n[Stock Option Plan (incorporated by reference to Exhibit 10.4 of the Company’s Registration on Form F-1 filed on November 18, 2021)](http://www.sec.gov/Archives/edgar/data/1649009/000121390020023370/ea125930ex10-4_siyatamobile.htm).\n\n10.02\n \n[Promissory Note, dated January 29, 2024 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 6-K filed on February 1, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024009100/ea192585ex4-1_siyata.htm)\n\n10.03\n \n[Securities\nPurchase Agreement, dated January 29, 2024, by and between the Company and the Investor (incorporated by reference to Exhibit 10.1\nto the Company’s Current Report on Form 6-K filed on February 1, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024009100/ea192585ex10-1_siyata.htm)\n\n10.04\n \n[Securities\nPurchase Agreement, dated May 7, 2024 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 6-K\nfiled on May 10, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024041837/ea020582301ex10-1_siyata.htm)\n\n10.05\n \n[Consulting\nAgreement, between the Company and IR Agency, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report\non Form 6-K filed on May 13, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024042381/ea020592801ex10-1_siyata.htm).\n\n10.06\n \n[Addendum to Consulting Agreement, between the Company and IR Agency, LLC (incorporated by reference to Exhibit 10.26 of the Company’s Amendment No. 3 to the Registration Statement on Form F-1 filed on June 26, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024052968/ea020791601ex10-26_siyata.htm).\n\n10.07\n \n[Securities\nPurchase Agreement, dated June 26, 2024 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 6-K\nfiled on July 2, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024054036/ea020813801ex10-1_siyata.htm)\n\n \n\n72\n\n \n\n \n\n10.08\n \n[Second\nAddendum to Consulting Agreement, between the Company and IR Agency, LLC (incorporated by reference to Exhibit 10.28 of Amendment\nNo. 1 to the Company’s Registration Statement on Form F-1 filed on August 12, 2024).](http://www.sec.gov/Archives/edgar/data/1649009/000121390024067419/ea021108001ex10-28_siyata.htm)\n\n10.09\n \n[Placement\nAgency Agreement by and between Siyata Mobile Inc. and Spartan Capital Securities, LLC dated August 13, 2024 (incorporated by\nreference to Exhibit 1.1 to the Company’s Current Report on Form 6-K filed on August 16, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024070124/ea021165301ex1-1_siyata.htm)\n\n10.10\n \n[Form\nof Securities Purchase Agreement by and between Siyata Mobile Inc. and the Purchasers dated August 13, 2024 (incorporated by\nreference to Exhibit 10.1 of Amendment No. 1 to the Company’s Registration Statement on Form F-1 filed on August 12,\n2024).](http://www.sec.gov/Archives/edgar/data/1649009/000121390024064642/ea021034501ex10-1_siyata.htm)\n\n10.11\n \n[Promissory\nNote, dated August 30, 2024 (incorporated by reference to Exhibit 10.31 of Amendment No. 1 to the Company’s Registration\nStatement on Form F-1 filed on November 7, 2024).](http://www.sec.gov/Archives/edgar/data/1649009/000121390024091792/ea021876001ex10-31_siyata.htm)\n\n10.12\n \n[Securities\nPurchase Agreement, dated August 30, 2024, by and between the Company and the Investor (incorporated by reference to Exhibit\n10.32 of Amendment No. 1 to the Company’s Registration Statement on Form F-1 filed on November 7, 2024).](https://www.sec.gov/Archives/edgar/data/1649009/000121390024091792/ea021876001ex10-32_siyata.htm)\n\n10.13\n \n[Equity Purchase Agreement between the registrant and Hudson Global Ventures, LLC, dated as of October 21, 2024 (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 6-K filed on October 25, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024090836/ea021868201ex10-1_siyata.htm)\n\n10.14\n \n[Amendment\nto the Equity Purchase Agreement between the registrant and Hudson Global Ventures, LLC, dated as of October 28,\n2024 (incorporated by reference to Exhibit 10.34 of Amendment No. 1 to the Company’s Registration Statement on Form F-1\nfiled on November 7, 2024).](https://www.sec.gov/Archives/edgar/data/1649009/000121390024091792/ea021876001ex10-34_siyata.htm)\n\n10.15\n \n[Registration\nRights Agreement between the registrant and Hudson Global Ventures, LLC, dated as of October 21, 2024 (incorporated herein by\nreference to Exhibit 10.2 to the Company’s Current Report on Form 6-K filed on October 25, 2024)](http://www.sec.gov/Archives/edgar/data/1649009/000121390024090836/ea021868201ex10-2_siyata.htm)\n\n10.16\n \n[Securities\nPurchase Agreement, dated October 31, 2024 (incorporated by reference to Exhibit 10.36 of Amendment No. 1 to the\nCompany’s Registration Statement on Form F-1 filed on November 7, 2024).](http://www.sec.gov/Archives/edgar/data/1649009/000121390024095452/ea022040001ex10-36_siyata.htm)\n\n10.17\n \n[First\nAmendment to the Equity Purchase Agreement between the registrant and Hudson Global Ventures, LLC, dated as of October 28,\n2024 (incorporated by reference to Exhibit 10.37 of Post-Effective Amendment to the Company’s Registration Statement on\nForm F-1 filed on November 18, 2024).](https://www.sec.gov/Archives/edgar/data/1649009/000121390024099685/ea022159401ex10-37_siyata.htm)\n\n10.18\n \n[Second\nAmendment to the Equity Purchase Agreement between the registrant and Hudson Global Ventures, LLC, dated as of November 18,\n2024 (incorporated by reference to Exhibit 10.38 of Post-Effective Amendment to the Company’s Registration Statement on\nForm F-1 filed on November 18, 2024).](http://www.sec.gov/Archives/edgar/data/1649009/000121390024099685/ea022159401ex10-38_siyata.htm)\n\n10.19\n \n[Equity\nPurchase Agreement dated January 14, 2025 (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on\nForm 6-K filed on January 21, 2025)](https://www.sec.gov/Archives/edgar/data/1649009/000121390025005001/ea022814301ex10-1_siyata.htm)\n\n10.20\n \n[Registration Rights Agreement dated January 14, 2025 (incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 6-K filed on January 21, 2025)](https://www.sec.gov/Archives/edgar/data/1649009/000121390025005001/ea022814301ex10-2_siyata.htm)\n\n10.21\n \n[Merger\nAgreement, by and among Siyata Mobile Inc., Siyata Core Acquisition U.S., Inc., and Core Gaming, Inc., dated February 26, 2025\n(incorporated herein by reference to Exhibit 2.1 to the Company’s Current Report on Form 6-K filed on February 26,\n2025)](https://www.sec.gov/Archives/edgar/data/1649009/000121390025017273/ea023219101ex2-1_siyata.htm)\n\n10.22\n     \n[Amended Merger Agreement, by and among Siyata Mobile Inc., Siyata Core Acquisition U.S., Inc., and Core Gaming, Inc., dated August 25, 2025 (incorporated herein by reference to Exhibit 2.1 to the Company’s Current Report on Form 6-K filed on August 29, 2025)](https://www.sec.gov/Archives/edgar/data/1649009/000164117225026072/ex2-1.htm)\n\n10.23\n     \n[Stock Purchase Agreement among Core AI Holdings Inc., Siyata PTT and Mr. Marc Seelenfreund dated December 29, 2025 (incorporated herein by reference to Exhibit 99.1 to the Company’s Current Report on Form 6-K filed on December 31, 2025)](https://www.sec.gov/Archives/edgar/data/1649009/000149315225029813/ex99-1.htm)\n\n12.1*\n \n[Certification of the Chief Executive Officer pursuant to rule 13a-14(a) of the Securities Exchange Act of 1934](ex12-1.htm)\n\n12.2*\n \n[Certification of the Chief Financial Officer pursuant to rule 13a-14(a) of the Securities Exchange Act of 1934](ex12-2.htm)\n\n13.1*\n \n[Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350.](ex13-1.htm)\n\n \n\n*\nfiled\nherewith.\n\n**\nfurnished\nherewith.\n\n#\nManagement\ncontracts or compensatory plans, contracts or arrangements.\n\n \n\n73\n\n \n\n \n\n**SIGNATURES**\n\n \n\nThe\nregistrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized\nthe undersigned to sign this annual report on Form 20-F filed on its behalf.\n\n \n\n \n**CORE AI HOLDINGS, INC.**\n\n \n \n \n\nDate:\nMay 15, 2026\nBy:\n*/s/\nAitan Zacharin*\n\n \n \nAitan Zacharin\n\n \n \nChief\nExecutive Officer\n\n \n\n74\n\n \n\n \n\n**Core\nAI Holdings, Inc. And Its Subsidiaries**\n\n** **\n\n**Consolidated\nFinancial Statements**\n\n**For\nThe Year Ended December 31, 2025 and 2024**\n\n \n\n**INDEX\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n**TABLE\nOF CONTENTS**\n\n \n\n**PAGE**\n\n \n \n \n\n[Report of Independent Registered Public Accounting Firm](#F_001) (PCAOB ID: 6797)\n \nF-2\n– F-3\n\n[Consolidated Statements of Financial Position As of December 31,2025 and 2024](#F_002)\n \nF-4\n\n[Consolidated Statement of Loss and Other Comprehensive Loss For the Years Ended December 31,2025 and 2024](#F_003)\n \nF-5\n\n[Consolidated Statement of Changes in Shareholder’s Equity For the Years Ended December 31, 2025 and 2024](#F_004)\n \nF-6\n\n[Consolidated Statement of Cash Flows For the Years Ended December 31, 2025 and 2024](#F_005)\n \nF-7\n\n[Notes to the Consolidated Financial Statements](#F_006)\n \nF-8\n\n \n\nF-1\n\n \n\n \n\n**Report\nof Independent Registered Public Accounting Firm**\n\n** **\n\nTo\nthe Board of Directors and Shareholders of\n\nCore AI Holdings, Inc.\n\n \n\n**Opinion\non the Financial Statements**\n\n** **\n\nWe\nhave audited the accompanying consolidated balance sheets of Core AI Holdings, Inc. and its subsidiaries (the “Company”)\nas of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, changes in stockholders’\nequity, and cash flows for each of the years then ended, including the related notes (collectively referred to as the “financial\nstatements”). We did not audit the combined financial statements of the Siyata PTT Business of Core AI Holdings Inc. and subsidiaries,\nwhich statements were prepared in conformity with International Financial Reporting Standards as issued by the International Accounting\nStandards Board and were audited by Barzily & Co., CPA, an independent registered public accounting firm. Those combined financial\nstatements reflect total revenues constituting approximately $2,957,573 for the three months between October 3, 2025 to December 29,\n2025 or 5%, of the related consolidated total revenues of Core AI Holdings, Inc of 55,239,839. Our opinion, insofar as it relates to\nthe amounts and disclosures in the accompanying consolidated financial statements that are derived from the Siyata PTT Business of Core\nAI Holdings Inc. and subsidiaries, is based solely on the report of Barzily & Co., CPA.\n\n \n\nIn\nour opinion, based on our audit and the report of the other auditors, the consolidated financial statements present fairly, in all material\nrespects, the financial position of Core AI Holdings, Inc. and its subsidiaries as of December 31, 2025 and 2024, and the results of\ntheir operations and their cash flows for each of the years then ended, in conformity with accounting principles generally accepted in\nthe United States of America.\n\n \n\n**Basis\nfor Opinion**\n\n** **\n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audits and the report of the other auditors. We are a public accounting firm registered with the Public\nCompany Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company\nin accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission\nand the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error\nor fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding\nthe amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits\nand the report of the other auditors provide a reasonable basis for our opinion.\n\n \n\n**Emphasis\nof Matter — Reverse Acquisition and Basis of Presentation**\n\n \n\nAs\ndiscussed in Notes 1 to the consolidated financial statements, the October 3, 2025 merger was accounted for as a reverse acquisition\nin which Core Gaming, Inc. was determined to be the accounting acquirer and Core AI Holdings, Inc. (formerly Siyata Mobile Inc.) was\ndetermined to be the accounting acquiree. Accordingly, the historical financial statements prior to the merger date are those of Core\nGaming, Inc., and the results of the former Siyata business were included only from October 3, 2025 through December 29, 2025, the date\ncontrol ceased.\n\n \n\nAs\nfurther described in Note 1, certain amounts and disclosures related to the Siyata PTT Business were derived from combined financial\nstatements that were carved out from the historical accounting records of the former parent and included allocations of certain corporate\ncosts and related-party balances and transactions. Those allocations may not necessarily be indicative of the financial position, results\nof operations, or cash flows that would have been obtained had the Siyata PTT Business operated as a separate stand-alone entity during\nthe periods presented.\n\n \n\nF-2\n\n \n\n \n\n**Emphasis\nof Matter — Going Concern**\n\n** **\n\nThe\naccompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed\nin Note 1 to the consolidated financial statements, the Company incurred a net loss from continuing operations of $7,185,202 and net\ncash used in operating activities from continuing operations of $3,642,455 for the year ended December 31, 2025, and had an accumulated\ndeficit of $31,963,651 as of December 31, 2025.These conditions raise substantial doubt about the Company’s ability to continue\nas a going concern within one year after the date the financial statements are issued. The consolidated financial statements do not include\nany adjustments that might result from the outcome of this uncertainty.\n\n \n\n**Critical\nAudit Matters**\n\n** **\n\nThe\ncritical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated\nor required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial\nstatements and (2) involved especially challenging, subjective, or complex judgments. The communication of critical audit matters does\nnot alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters\nbelow, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.\n\n \n\n**Reverse\nacquisition, deconsolidation, and discontinued operations presentation**\n\n** **\n\nAs\ndescribed in Notes 1, Note 15 and 16, the Company accounted for the October 3, 2025 transaction as a reverse acquisition and later deconsolidated\nthe former Siyata business on December 29, 2025. Auditing these matters involved especially challenging auditor judgment because of the\nsignificance of the transaction, the judgments required in identifying the accounting acquirer, determining the appropriate presentation\nof historical and post-merger results, evaluating deconsolidation and discontinued-operations accounting, and assessing the completeness\nand consistency of related disclosures.\n\n \n\nThe\nprimary procedures performed to address this critical audit matter included, among others, reading the merger agreement and related transaction\ndocuments, evaluating management’s accounting conclusions under the applicable accounting guidance, testing the amounts recorded\nin connection with the reverse acquisition and deconsolidation, evaluating management’s presentation of continuing and discontinued\noperations, considering the effect of the Siyata PTT carve-out/combined financial information audited by the other auditors, and assessing\nthe adequacy of the related disclosures.\n\n \n\nBush\n& Associates CPA LLC\n\n \n\nWe\nhave served as the Company’s auditor since 2024.\n\n \n\nLas Vegas,\nNevada\n\nMay\n15, 2026\n\n \n\nF-3\n\n \n\n \n\n**Core AI Holdings Inc. And Its Subsidiary**\n\n**Consolidated Statement of Financial Statement**\n\n**As of December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n  \nNote \n\n**December 31, 2025**\n\n**$**\n  \n\n**December 31, 2024**\n\n**$**\n \n\n  \n  \n   \nRestated \n\nASSETS \n  \n    \n   \n\nCurrent assets \n  \n    \n   \n\nCash and cash equivalents \n\n3\n \n 1,931,174  \n 5,559,276 \n\nAccounts receivable, net \n\n4\n \n 5,689,538  \n 9,120,543 \n\nPrepayments \n5 \n 1,326,916  \n 889,172 \n\nOther receivables, net \n\n6\n \n 3,871,729  \n 4,045,411 \n\nTotal current assets \n  \n 12,819,357  \n 19,614,402 \n\n  \n  \n    \n   \n\nNon-current assets \n  \n    \n   \n\nLong-term investment \n16 \n 294,429  \n - \n\nIntangible assets \n12 \n 477  \n 1,510 \n\nOperating lease right-of-use assets \n7 \n 291,081  \n - \n\nTotal non-current assets \n  \n 585,987  \n 1,510 \n\n  \n  \n    \n   \n\nTotal assets \n  \n 13,405,344  \n 19,615,912 \n\n  \n  \n    \n   \n\nLIABILITIES AND EQUITY \n  \n    \n   \n\nCurrent liabilities \n  \n    \n   \n\nAccount and other payables \n8 \n 10,118,046  \n 17,414,049 \n\nTaxes payable \n  \n 22,929  \n 21,269 \n\nCurrent operating lease liabilities \n7 \n 162,610  \n - \n\nTotal current liabilities \n  \n 10,303,585  \n 17,435,318 \n\n  \n  \n    \n   \n\nNon-current liabilities \n  \n    \n   \n\nWarrant and preferred share liability \n14 \n 100  \n   \n\nTotal non-current liabilities \n  \n 100  \n   \n\n  \n  \n    \n   \n\nTotal liabilities \n  \n 10,303,685  \n 17,435,318 \n\n  \n  \n    \n   \n\nEquity \n  \n    \n   \n\nShare capital \n13 \n 35,068,194  \n 2,569,566 \n\nAccumulated other comprehensive loss \n  \n (2,884) \n (16,652)\n\nAccumulated deficits \n  \n (31,963,651) \n (372,320)\n\nTotal Equity \n  \n 3,101,659  \n 2,180,594 \n\n  \n  \n    \n   \n\nTotal liabilities and equity \n  \n 13,405,344  \n 19,615,912 \n\n \n\n*The\naccompanying notes form an integral part of and should be read in conjunction with these financial statements.*\n\n \n\nF-4\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Consolidated Statement of Loss and Other Comprehensive\nLoss**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n(Expressed In United States Dollars)\n\n \n\n  \nNote \n2025  \n2024 \n\n  \n  \nFor The Fiscal Years Ended\nDecember 31, \n\n  \nNote \n2025  \n2024 \n\n  \n  \n   \nRestated \n\nContinuing operations \n  \n    \n   \n\n  \n  \n    \n   \n\nRevenue \n9 \n 55,239,839  \n 34,829,376 \n\nCost of providing services \n10 \n (55,542,501) \n (33,341,855)\n\nGross profit \n  \n (302,662) \n 1,487,521 \n\nGeneral and administrative expenses \n10 \n (6,571,187) \n (526,082)\n\nAllowance for credit loss \n  \n (820,987) \n (1,326,768)\n\nOther income \n  \n 653,390  \n 2,386 \n\nForeign exchange loss - net \n  \n (76,014) \n (6,209)\n\nOperating loss \n  \n (7,117,460) \n (369,152)\n\n  \n  \n    \n   \n\nInterest income \n  \n 1,861  \n 4,327 \n\nInterest expenses \n  \n (15,617) \n - \n\nOther expenses \n  \n (45,580) \n (5,430)\n\n  \n  \n    \n   \n\nLoss before income tax \n  \n (7,176,796) \n (370,255)\n\n  \n  \n    \n   \n\nIncome tax expenses \n11 \n (8,406) \n (2,065)\n\n  \n  \n    \n   \n\nNet loss and comprehensive loss from continuing operations, net of tax \n  \n (7,185,202) \n (372,320)\n\n  \n  \n    \n   \n\nDiscontinued operations \n  \n    \n   \n\n  \n  \n    \n   \n\nLoss from discontinued operations, net of income taxes \n16 \n (24,406,129) \n - \n\n  \n  \n    \n   \n\nNet loss and comprehensive loss for the year \n  \n (31,591,331) \n (372,320)\n\nLess: Net loss attributable to non-controlling interest \n  \n -  \n - \n\nNet loss attributable to Core AI Holdings Inc. \n  \n (31,591,331) \n (372,320)\n\n  \n  \n    \n   \n\nOther comprehensive income (loss) \n  \n    \n   \n\nForeign currency translation adjustment \n  \n 13,768  \n (16,652)\n\nTotal comprehensive loss \n  \n (31,577,563) \n (388,972)\n\n  \n  \n    \n   \n\nLoss per share \n  \n    \n   \n\nFrom continuing operations \n  \n    \n   \n\nOrdinary share - Basic \n  \n (0.41) \n (0.02)\n\nLoss per share from continuing operations ordinary share - Basic \n  \n (0.41) \n (0.02)\n\nOrdinary share - Diluted \n  \n (0.31) \n (0.02)\n\nLoss per share from continuing operations ordinary share - Diluted \n  \n (0.31) \n (0.02)\n\n  \n  \n    \n   \n\nFrom discontinued operations \n  \n    \n   \n\nOrdinary share – Basic and Diluted \n  \n (1.39) \n - \n\n \n\n*The\naccompanying notes form an integral part of and should be read in conjunction with these financial statements.*\n\n \n\nF-5\n\n \n\n \n\n**Core AI Holdings Inc. And Its Subsidiary**\n\n**Consolidated Statement of Change in Equity**\n\n**For The Financial Year Ended December 31, 2025\nand 2024**\n\n**(Expressed In United States Dollars, Expect\nShare Date)**\n\n \n\n  \n  \n   \n   \n   \nAccumulated  \n  \n\n  \nNote \n\n**Share capital**\n\n**#**\n  \n\n**Share capital**\n\n**$**\n  \n\n**Accumulated loss**\n\n**$**\n  \n\n**Other comprehensive loss**\n\n**$**\n  \n\n**Total Equity**\n\n**$**\n \n\n  \n  \n   \n   \n   \n   \n  \n\nBalance as of January 1, 2024 (Restated) \n  \n 16,825,577* \n 2,569,566  \n -  \n -  \n 2,569,566 \n\nNet loss \n  \n -  \n -  \n (372,320) \n -  \n (372,320)\n\nForeign currency translation \n  \n -  \n -  \n -  \n (16,652) \n (16,652)\n\nBalance as of December 31, 2024 (Restated) \n  \n 16,825,577  \n 2,569,466  \n (372,320) \n (16,652) \n 2,180,594 \n\nBalance \n  \n 16,825,577  \n 2,569,466  \n (372,320) \n (16,652) \n 2,180,594 \n\nIssuance of common stock in connection with the Reverse Merge \n15 \n 3,096,806  \n 29,448,487  \n -  \n -  \n 29,448,487 \n\nEquity transaction in connection with divestment entity\n \n  \n (2,549,859) \n    \n    \n    \n   \n\nRound up \n  \n 19  \n    \n -  \n -  \n - \n\nWarrants issued \n16 \n -  \n 5,600,000  \n -  \n -  \n 5,600,000 \n\nNet loss \n  \n -  \n    \n (31,591,331) \n -  \n (31,591,331)\n\nForeign currency translation \n  \n -  \n -  \n    \n 13,768  \n 13,768 \n\n**Balance as of December 31, 2025**** **\n** **** **\n** ****19,922,402**** **** **\n** **\n**35,068,194**\n** **** **\n** **\n**(31,963,651**\n**)**** **\n** ****(2,884****)**** **\n** **\n**3,101,659**\n** **\n\nBalance  \n  \n 19,922,402  \n 35,068,194  \n (31,963,651) \n (2,884) \n 3,101,659 \n\n \n\n*Share and per-share data for the year ended December 31,2024 have been retrospectively adjusted to\nreflect the exchange ratio resulting from the reverse recapitalization\n\n \n\n*The\naccompanying notes form an integral part of and should be read in conjunction with these financial statements.*\n\n \n\nF-6\n\n \n\n \n\n**Core AI Holdings Inc. And Its Subsidiary**\n\n**Consolidated Statement of Cash Flows**\n\n**For The Financial Year Ended December 31, 2025\nand 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n  \nNote \n2025  \n2024 \n\n  \n  \nFor The Fiscal Years Ended\nDecember 31, \n\n  \nNote \n2025  \n2024 \n\n  \n  \n   \n  \n\nNet Loss \n  \n (7,185,202) \n (372,320)\n\n  \n  \n    \n   \n\nAdjustments for non-cash effect \n  \n    \n   \n\nAmortization of intangible assets \n  \n 1,033  \n 925 \n\nAmortization of right-of-use assets \n7 \n 177,810  \n - \n\nReversal of credit loss \n  \n (283,118) \n (166,504)\n\nWarrants issuance \n  \n 5,600,000  \n - \n\nChanges in operating assets and liabilities: \n  \n    \n   \n\nAccounts receivable \n  \n 3,714,123  \n 3,429,127 \n\nPrepayments \n  \n (272,994) \n 1,920,375 \n\nOther receivables \n  \n 2,848,258  \n 2,283,100 \n\nAccounts payable and accrued liabilities \n  \n (7,937,744) \n (7,146,288)\n\nTax payables \n  \n 1,660  \n (1,320)\n\nOperating lease right-of-use assets \n  \n (468,891) \n - \n\nCurrent operating lease liabilities \n  \n 162,610  \n - \n\nCash flow used in operating activities from continuing operations \n  \n (3,642,455) \n (52,905)\n\nCash flow used in operating activities from discontinued operations \n  \n (3,008,812) \n - \n\nNet cash used in operating activities \n  \n (6,651,267) \n (52,905)\n\n  \n  \n    \n   \n\nCash used for investing activities \n  \n    \n   \n\nPurchase of intangible asset \n  \n -  \n (2,435)\n\nAcquisition of subsidiary, net of cash acquired \n  \n 585  \n 5,631,193 \n\nNet cash generated from investing activities from continuing operations \n  \n 585  \n 5,628,758 \n\nNet cash generated from investing activities from discontinued operations \n  \n 3,008,812  \n - \n\nNet cash generated from investing activities \n  \n 3,009,397  \n 5,628,758 \n\n  \n  \n    \n   \n\nCash flow from financing activities \n  \n    \n   \n\nCapital contribution from shareholders \n  \n -  \n 75 \n\nNet cash generated from financing activities \n  \n -  \n 75 \n\n  \n  \n    \n   \n\nEffect of exchange rate changes on cash and cash equivalents \n  \n 13,768  \n (16,652)\n\n  \n  \n    \n   \n\nNet increase (decrease) in cash \n  \n (3,628,102) \n 5,559,276 \n\nCash and Cash Equivalent at beginning of the year \n  \n 5,559,276  \n - \n\nCash and Cash Equivalent at end of the year \n  \n 1,931,174  \n 5,559,276 \n\n  \n  \n    \n   \n\nSupplemental disclosures of cash flow information: \n  \n    \n   \n\nIncome taxes paid \n  \n 21,280  \n 3,222 \n\nInterest paid \n  \n -  \n - \n\n  \n  \n    \n   \n\nSupplemental disclosures of non-cash flow information: \n  \n    \n   \n\nIssuance of common stock in connection with the Reverse Merge \n15 \n 29,448,487  \n - \n\n \n\n*The\naccompanying notes form an integral part of and should be read in conjunction with these financial statements.*\n\n \n\nF-7\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n**1.**\n**Corporation\ninformation**\n\n** **\n\nCore\nAI Holdings, Inc. (formerly Siyata Mobile Inc.) (the “Company”) was incorporated under the laws of British Columbia. On October\n3, 2025, the Company completed a merger (the “Merger”) with Core Gaming, Inc. (“Core Gaming”), a developer of\nAI-driven gaming technologies. Upon completion of the Merger, Core Gaming became a wholly-owned subsidiary of the Company. Newbyera Technology\nLimited (“Newbyera”), a developer of cloud-based gaming platforms, is the sole operating subsidiary of Core Gaming. In connection\nwith the Merger, the Company changed its name to Core AI Holdings, Inc\n\n \n\n**2.**\n**Summary\nof Significant Accounting Policies**\n\n \n\n**1)\nBasis Presentation**\n\n \n\n(a)\nBusiness Combination\n\n \n\nOn\nFebruary 26, 2025, Core Gaming, Inc. (“Core Gaming”) entered into a Merger Agreement (the “Merger Agreement”)\nwith Siyata Mobile Inc.(“Siyata Mobile”) and Siyata Core Acquisition U.S., Inc., a wholly-owned subsidiary of Siyata Mobile\n(“Merger Sub”) (the “Merger”). Upon completion of the Merger on October 3, 2025, (i) Core Gaming merged with\nand into Merger Sub, with Core Gaming continuing as the surviving entity and a wholly owned subsidiary of Siyata Mobile, and (ii) in\nexchange for the outstanding shares of Core Gaming’s common stock, Siyata Mobile issued 16,825,577 common shares (67,302,300 before\nthe 4-1 reverse stock split that occurred on October 7, 2025) to the shareholders of Core Gaming based on an exchange ratio calculated\nas $160,000,000 divided by the volume-weighted average closing price of Siyata Mobile’s common shares on the Nasdaq Stock Market\nLLC for the 10-day trading period immediately preceding the effective time of the Merger. In connection with the Merger, Siyata Mobile\nInc. was re-named Core AI Holdings, Inc. (“Core Holdings”), and effected a 4-1 reverse stock split on October 7, 2025. Newbyera\nTechnology Limited is the sole operating subsidiary of Core Gaming.\n\n \n\n(b)\nBasis of Accounting\n\n \n\nThe\nMerger is accounted for as a reverse acquisition and a business combination using the acquisition method of accounting in accordance\nwith ASC 805. While Core AI Holdings, Inc (formerly Siyata Mobile Inc) is the legal acquirer and Core Gaming was determined to be the\naccounting acquirer based on an evaluation of the following facts and circumstances:(1) Relative voting rights, since the former shareholders\nof Core Gaming own 84.5% of Core Holdings’ outstanding common shares immediately following the closing of the Merger; (2) Composition\nof the management ,the management of Core Gaming will assume key positions in the management of Core Holdings; (3) Premium, $160,000,000\nfair value of the consideration issued significantly exceeded the pre-merger market capitalization of Siyata Mobile. Consequently, Core\nGaming is deemed to be the acquiring company for accounting purposes, and the Merger is accounted for as a reverse acquisition under\nthe acquisition method of accounting for business combinations. The historical financial statements of the Group prior to the merger\ndate are those of Core Gaming, Inc., and the results of Core AI Holdings Inc (formerly Siyata Mobile Inc) are consolidated only from\nthe closing date of October 3, 2025.\n\n \n\nThe\nconsideration transferred for the acquisition of a subsidiary or business comprises the fair value of the assets transferred, the liabilities\nincurred and the equity interests issued by the Group. The consideration transferred also includes any contingent consideration arrangement\nand any pre-existing equity interest in the subsidiary measured at their fair values at the acquisition date. Acquisition-related costs\nare expensed as incurred.\n\n \n\nIdentifiable\nassets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially\nat their fair values at the acquisition date. The excess of (a) the consideration transferred, the amount of any non-controlling interest\nin the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the (b) fair value of the identifiable\nnet assets acquired is recorded as goodwill. Refer to note 15 for additional information.\n\n \n\nF-8\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n(c)\nPrincipal of Consolidation\n\n \n\nSubsidiaries\nare all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed\nto, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power\nover the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated\nfrom the date on that control ceases.\n\n \n\nThe\nconsolidated financial statements include the accounts of Core AI Holdings, Inc. (formerly Siyata Mobile Inc.) and its wholly-owned subsidiaries,\nCore Gaming, Inc. and Newbyera Technology Limited (collectively, the “Company”). All intercompany transactions, balances\nand unrealized gains have been eliminated in consolidation. Accounting policies of subsidiaries have been changed where necessary to\nensure consistency with the policies adopted by the Group.\n\n \n\n(d)\nUse of Estimates\n\n \n\nThe\npreparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that\naffect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of these consolidated\nfinancial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from\nthose estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes\nin facts and circumstances may cause the Company to revise its estimates. In accordance with ASC 250, the changes in estimates will be\nrecognized in the same period of changes in facts and circumstances. The Company bases its estimates on past experiences and on various\nother assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values\nof assets and liabilities. Estimates are used when accounting for items and matters including, but not limited to, useful lives and collectability\nevaluation of accounts receivables. Actual results could differ from those estimates.\n\n \n\n(e)\nForeign Currency Translation\n\n** **\n\nThe\nGroup’s function currency is United States dollars. The Group translates the financial statements of the Group entities (none of\nwhich has the currency of a hyperinflationary economy) that have a different functional currency different from the presentation currency\ninto United States dollars. Assets and liabilities denominated in foreign currencies are translated at the exchange rates in effect at\nthe consolidated balance sheet dates. Revenues and expenses are translated at the average exchange rates prevailing during the period.\nUnrealized gains or losses arising from currency translation are included in other comprehensive loss.\n\n \n\n**2)\nDiscontinued Operation**\n\n \n\nIn\naccordance with ASC 205-20, a disposal of a component or a group of components is reported as a discontinued operation if the disposal\nrepresents a strategic shift that has (or will have) a major effect on the Group’s operations and financial results. The Group\nevaluates ‘major effect’ by considering qualitative and quantitative factors, including whether the disposal involves a major\nline of business, a major geographical area, or a major equity method investment. Results of discontinued operations, including any gain\nor loss recognized on the disposal, are reported separately from continuing operations for all periods presented to ensure comparability.\n\n \n\nThe\nGroup classifies a disposal group as a discontinued operation if the disposal represents a strategic shift that has, or will have, a\nmajor effect on the Group’s operations and financial results. On December 29, 2025, the Group completed the divestiture of its\nmobile hardware business unit (the ‘Siyata subsidiary’). Management determined that this transaction represents a fundamental\nstrategic shift from hardware manufacturing toward artificial intelligence infrastructure. This assessment is considered a critical accounting\nestimate as it required significant management judgment to evaluate qualitative and quantitative factors. Specifically, the Group concluded\nthat the total exit from the Push-to-Talk (PoC) hardware sector constitutes the disposal of a major line of business under ASC 205-20.\n\n \n\nClassification\nas a discontinued operation occurs upon divestment or when the operation meets the criteria to be classified as held for sale, if earlier.\nIn the consolidated statements of operations and comprehensive loss, the results from discontinued operations are reported separately\nfrom the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinued\noperations are presented separately in the consolidated statements of cash flows. Unless otherwise noted, discussion in the notes to\nconsolidated financial statements refers to the Group’s continuing operations. Refer to note 16 for additional information.\n\n** **\n\n****\n\nF-9\n\n \n\n** **\n\n****\n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n** **\n\n**3)\nGoing Concern**\n\n** **\n\nThe\nGroup incurred a net loss from the continuing operations of US$7,185,202 and a net cash outflow from operating activities of US$3,642,455\nfor the year ended December 31, 2025, and the accumulated deficit was US$31,963,651 as of December 31, 2025. These factors raise substantial\ndoubts about the Group’s ability to continue as a going concern.\n\n \n\nIn\nconnection with the Group’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s\nAccounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue\nas a Going Concern,” the Group has determined that management of the Group has evaluated the sufficiency of additional capital\nresources, such as fund raising. The Group lacks the financial resources it needs to sustain operations for a reasonable period of time,\nwhich is considered to be one year from the date of the issuance of the financial statements. Despite the Group’s effort to obtain\nadditional funding and reduce operating costs, there is no assurance that the Group’s plans and actions will be successful. The\nconsolidated accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue\nas a going concern. In addition, there can be no assurance that in the event additional sources of funds are needed they will be available\non acceptable terms, if at all.\n\n** **\n\n**4)\nRevenue Recognition**\n\n \n\nThe\nGroup recognizes revenue in accordance with ASC606, Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized\nwhen control of the promised services is transferred to our customers, in an amount that reflects the consideration the Company expects\nto be entitled to in exchange for those services. The following five steps are applied to achieve that core principle:\n\n \n\nStep\n1: Identify the contract with the customer\n\n \n\nStep\n2: Identify the performance obligations in the contract\n\n \n\nStep\n3: Determine the transaction price\n\n \n\nStep\n4: Allocate the transaction price to the performance obligations in the contract\n\n \n\nStep\n5: Recognize revenue when the Company satisfies a performance obligation.\n\n \n\nRevenue\nis measured at the fair value of the consideration received or receivable for the sales of services in the ordinary course of the Group’s\nactivities.\n\n \n\nThe\nGroup generates its revenue through publishing advertisements on various advertising platforms. The Group’s performance obligation\nis to provide customers with access to the advertising solutions. The transaction price is the product of either the number of completions\nof agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit. Revenues are recognized\nat the point-in-time the advertisements are displayed in the game or the services has been completed as the customer simultaneously receives\nand consumes the benefits provided from these services. The revenue is estimated based on advertising data for each month and revised\nafter confirmation of revenues with various advertising agencies.\n\n \n\nF-10\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\nWhen\nanother party is involved in providing goods or services to a customer, the Group determines whether the nature of its promise is a performance\nobligation to provide the specified services itself (i.e. the Group is a principal) or to arrange for those services to be provided by\nthe other party (i.e. the Group is an agent).\n\n \n\nThe\nGroup is a principal if it controls the specified services before those services are transferred to a customer. The Group is an agent\nif its performance obligation is to arrange for the provision of the specified services by another party. In this case, the Group does\nnot control the specified services provided by another party before those services are transferred to the customer. When the Group acts\nas an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging\nfor the specified services to be provided by the other party. This evaluation is performed separately for each performance obligation\nidentified. For the years ended December 31, 2025 and 2024, there was no revenue recognized on a net basis where the Group is acting\nas an agent.\n\n \n\n**5)\nCash and Cash Equivalents**\n\n** **\n\nCash\nconsists of cash on hand and cash in banks. The Group considers highly liquid investments such as time deposits and certificates of deposit\nwith original maturities of three months or less to be cash equivalents.\n\n** **\n\n**6)\nAccounts Receivable and Expected Credit Loss**\n\n \n\nTrade\nreceivables are amounts due from customers for services performed in the ordinary course of business. Majority of trade receivables are\nfrom advertising services. They are generally due for settlement within one year (or in the normal operating cycle of the business if\nlonger) and therefore all classified as current. The Group usually grants credit to customers with 30 days to 60 days after invoicing\nand determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends.\n\n \n\nIn\nJune 2016, the FASB issued ASU 2016-13: Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected\ncredit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and\nsupportable forecasts. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in\ncredit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the\nnext 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial\nrecognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing\nof the default (a lifetime ECL).\n\n \n\nThe\nGroup applies a simplified approach in calculating ECL and the Group does not track changes in credit risk, but instead recognises a\nloss allowance based on lifetime ECL at each reporting date. The Group has established a provision matrix that is based on its historical\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment which could affect\ndebtors’ ability to pay.\n\n** **\n\n**7)\nAccount and Other Payables**\n\n** **\n\nAccounts\nPayable primarily consist of amounts due to advertising platforms and agencies for marketing services, as well as game development fees\nowed to third-party game suppliers. Other payables represent liabilities for goods and services provided to the Group prior to the end\nof financial year which are unpaid. These payables are typically settled within the standard payment terms contracted with the respective\nsuppliers. These payables do not bear interests.\n\n \n\n**8)\nLeases**\n\n \n\nThe\nright-of-use assets and related lease liability are recognized at the lease commencement date. The Group recognizes operating lease expenses\non a straight-line basis over the lease term.\n\n \n\nF-11\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\nRight-of-use\nof assets\n\n \n\nThe\nGroup recognizes right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use).\nRight-of-use assets are measured at cost, less any accumulated depreciation and impairment losses and adjusted for any remeasurement\nof lease liability. The cost of right-of-use assets includes the amount of lease liability recognized, initial direct costs incurred,\nand lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on\na straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. All right-of-use assets are reviewed\nfor impairment annually. There was no impairment for right-of-use lease assets for the years ended December 31,2025 and 2024.\n\n \n\nLease\nliability\n\n \n\nLease\nliability is initially measured at the present value of the outstanding lease payments at the commencement date, discounted using the\nGroup’s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed lease payments,\nvariable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee and any exercise\nprice under a purchase option that the Group is reasonably certain to exercise. Lease liability is measured at amortized cost using the\neffective interest rate method. It is re-measured when there is a change in future lease payments, if there is a change in the estimate\nof the amount expected to be payable under a residual value guarantee, or if there is any change in the Group assessment of option purchases,\ncontract extensions or termination options.\n\n \n\nThe\nGroup elected not to recognize short-term leases with an initial lease term of twelve months or less.\n\n** **\n\n**9)\nIntangible assets**\n\n \n\nPatents\nand licenses\n\n \n\nCost\nfor applying and registering patents, trade mark and copyright are capitalized at cost and are subsequently carried at cost less accumulated\namortization and accumulated impairment losses. These costs are amortized to profit or loss using the straight-line method over 20 years,\nwhich is the shorter of their estimated useful lives and periods of contractual rights.\n\n \n\n**10)\nIncome Taxes**\n\n** **\n\nIncome\ntax expense represents the sum of the tax currently payable and deferred tax.\n\n \n\nThe\ntax currently payable is based on taxable profit for the financial year. Taxable profit differs from profit as reported profit or loss\nbecause it excludes items of income or expense that are taxable or deductible in other financial years and it further excludes items\nthat are not taxable or tax deductible. The Group’s liability for current tax is calculated using tax rates (and tax laws) that\nhave been enacted or substantively enacted in countries where the Group operates by the end of the financial year.\n\n \n\nDeferred\nincome tax is recognized for temporary differences arising between the tax bases of assets and liabilities and their carrying amounts\nin the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability\nin a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.\nDeferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which\nthe deductible temporary differences and tax losses can be utilized.\n\n \n\n**11)\nFinancial assets**\n\n \n\n(a)\nClassification and measurement\n\n \n\nThe\nGroup classifies its financial assets in the following measurement categories:\n\n \n\n●\nAmortized cost;\n\n●\nFair value through other comprehensive income (FVOCI); and\n\n●\nFair value through profit or loss (FVPL).\n\n \n\nThe\nclassification depends on the Group’s business model for managing the financial assets as well as the contractual terms of the\ncash flows of the financial asset.\n\n \n\nF-12\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n*At\ninitial recognition*\n\n \n\nAt\ninitial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value\nthrough profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs\nof financial assets carried at fair value through profit or loss are expensed in profit or loss.\n\n \n\n*At\nsubsequent measurement*\n\n \n\nCash\nand cash equivalents, trade and other receivables are carried at amortized cost subsequently.\n\n \n\n(b)\nDerecognition\n\n \n\nFinancial\nassets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the\nGroup has transferred substantially all risks and rewards of ownership.\n\n \n\n**12).\nLoss per share**\n\n \n\nThe\nGroup presents basic and diluted loss per share data for its common shares. Basic loss per share is calculated by dividing the profit\nor loss attributable to common shareholders of the Group by the weighted average number of common shares outstanding during the period,\nadjusted for own shares held. Diluted loss per share is calculated by dividing the loss by the weighted average number of common shares\noutstanding assuming that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common\nshares at the average market price during the period.\n\n \n\nThe\nweighted average number of common shares outstanding used in the calculation of basic and diluted net loss per share for the years ended\nDecember 31, 2025 and 2024 has been retroactively restated to reflect the 16,825,577 shares of common stock issued to the shareholders\nof the accounting acquirer in connection with the reverse merge closed on October 3, 2025.\n\n \n\nShares\nof the legal acquirer outstanding prior to the reverse merge, including 196,933 shares originally outstanding, 2,619,876 shares issued\nin a pre-merger equity line fund raising, and 279,997 shares resulting from the conversion of the Preferred C common stock, are reflected\nin the weighted average share count only from the date of the merger (October 3, 2025) through December 31, 2025\n\n \n\nThe\nweighted average number of shares was retroactively changed to reflect the 1-to-4 reverse stock split that occurred on October 7, 2025.\n\n \n\n**13).\nFair value of assets and liabilities**\n\n \n\nThe\nfair values of applicable assets and liabilities, are determined and categorized using a fair value hierarchy as follows:\n\n \n\n \n(a)\nLevel 1 - the fair values of assets and liabilities with standard\nterms and conditions and which trade in active markets that the Group can access at the measurement date are determined with reference\nto quoted market prices (unadjusted).\n\n \n \n \n\n \n(b)\nLevel 2 - in the absence of quoted market prices, the fair\nvalues of the assets and liabilities are determined using the other observable, either directly or indirectly, inputs such as quoted\nprices for similar assets/liabilities in active markets or included within Level 1, quoted prices for identical or similar assets/liabilities\nin non-active markets.\n\n \n \n \n\n \n(c)\nLevel 3 - in the absence of quoted market prices included within\nLevel 1 and observable inputs included within Level 2, the fair values of the remaining assets and liabilities are determined in accordance\nwith generally accepted pricing models.\n\n \n\nF-13\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\nFair\nvalue measurements that use inputs of different hierarchy levels are categorized in its entirety in the same level of the fair value\nhierarchy as the lowest level input that is significant to the entire measurement.\n\n \n\nExcept\nas disclosed in the respective notes, the carrying amounts of the current financial assets and financial liabilities, including cash\nand bank balances, trade and other receivables, trade and other payables approximate their respective fair values due to their short\nmaturity nature.\n\n \n\n**14)\nProvision**\n\n \n\nProvisions\nare recognized when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that\nan outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.\n\n \n\n**15)\nRecent accounting pronouncement**\n\n \n\nIn\nJuly 2025, the FASB issued ASU 2025-05 - Financial Instruments—Credit Losses (Topic 326). The amendments in this Update provide\n(1) all entities with a practical expedient and (2) entities other than public business entities with an accounting policy election when\nestimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for\nunder Topic 606. An entity that elects the practical expedient and the accounting policy election, if applicable, should apply the amendments\nin this Update prospectively. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim\nreporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in\nwhich financial statements have not yet been issued or made available for issuance. The Group is evaluating the impact of the adoption\nof this guidance. We believe the future adoption of this ASU is not expected to have a material impact on its consolidated financial\nstatements.\n\n \n\nIn\nNovember 2024, the Financial Accounting Standards Board (the “FASB”) issued ASU 2024-03, “Income Statement—Reporting\nComprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This pronouncement introduces new disclosure\nrequirements aimed at enhancing transparency in financial reporting by requiring disaggregation of specific income statement expense\ncaptions. Under the new guidance, entities are required to disclose a breakdown of certain expense categories, such as: employee compensation;\ndepreciation; amortization, and other material components. The disaggregated information can be presented either on the face of the income\nstatement or in the notes to the financial statements, often using a tabular format. The ASU is effective for fiscal years beginning\nafter December 15, 2025, and interim periods within those fiscal years. Early adoption is permitted. The Group is currently evaluating\nthese new disclosure requirements and does not expect the adoption to have a material impact. In January 2025, the FASB issued ASU 2025-01,\nwhich revises the effective date of ASU 2024-03 (on disclosures about disaggregation of income statement expenses) “to clarify\nthat all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and\ninterim periods within annual reporting periods beginning after December 15, 2027.” Entities within the ASU’s scope are permitted\nto early adopt the ASU.\n\n \n\n \n\n**3.**\n**Cash\nand cash equivalents**\n\nSchedule of cash and cash equivalents\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nCash in bank \n 1,931,174  \n 5,559,276 \n\nTotal \n 1,931,174  \n 5,559,276 \n\n \n\nF-14\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n**4.**\n**Accounts\nReceivable**\n\n \n\nAccounts\nreceivable, net, consists of the following:\n\n Schedule\nof accounts receivable\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nAccounts receivable \n 5,897,665  \n 9,611,788 \n\nLess: allowance for credit loss \n (208,127) \n (491,245)\n\nAccounts receivable, net \n 5,689,538  \n 9,120,543 \n\n \n\n \n\n \n\n**5.**\n**Prepayments,\nnet**\n\n \n\nPrepayments\nconsist of the following:\n\n Schedule\nof Prepayments, net\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nAdvance to suppliers \n 1,326,916  \n 889,172 \n\nTotal \n 1,326,916  \n 889,172 \n\n \n\n \n\n**6.**\n**Other\nreceivables, net**\n\n \n\nOther\nreceivables, net consist of the following:\n\n Schedule\nof Other receivables, net\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nOther receivables \n 3,871,729  \n 4,045,411 \n\nTotal \n 3,871,729  \n 4,045,411 \n\n \n\n \n\n**7.**\n**Lease**\n\n \n\nLeases\nare classified as operating leases or finance leases in accordance with ASC 842. The Group’s operating leases are mainly related\nto office facilities. For leases with terms greater than 12 months, the Group records the related asset and liability at the present\nvalue of lease payments over the term. The Group’s lease agreements do not contain any material guarantees or restrictive covenants.\n\n Schedule\nof operating lease right-of-use assets\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nOperating lease right-of-use assets \n    \n   \n\nOffices \n 468,891  \n - \n\nTotal \n 468,891  \n - \n\nAccumulated amortization \n (177,810) \n - \n\nTotal \n 291,081  \n - \n\n \n\nF-15\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nOperating Lease liabilities \n    \n   \n\nOperating lease liabilities, current \n 162,610  \n - \n\nOperating lease liabilities, non-current \n -  \n - \n\nTotal \n 162,610  \n - \n\n \n\n \n\n**8.**\n**Account\nand other payables**\n\n Schedule\nof Account and other payables\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nAccount payable \n 8,251,166  \n 15,043,931 \n\nPayroll Payable \n 43,530  \n 24,221 \n\nOther payables \n 1,823,350  \n 2,335,745 \n\nContract liabilities \n -  \n 10,152 \n\nTotal \n 10,118,046  \n 17,414,049 \n\n \n\n \n\n**9.**\n**Revenue**\n\n \n\nThe\nfollowing table disaggregates the revenue for the years ended December 31, 2025 and 2024 are as follows:\n\n Schedule\nof Disaggregates the revenue\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nAdvertisement publishing service \n 55,239,839  \n 34,875,639 \n\nTotal \n 55,239,839  \n 34,875,639 \n\n \n\n \n\n**10.**\n**Expense\nby nature**\n\n Schedule\nof Expense by nature\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nAdvertisement publishing cost \n 41,905,250  \n 20,057,933 \n\nSoftware technology cost \n 13,178,874  \n 13,084,218 \n\nOther service cost \n 458,377  \n 199,704 \n\nCost of providing services \n 55,542,501  \n 33,341,855 \n\n  \n    \n   \n\nWarrant Expense \n 5,600,000  \n - \n\nStaff cost \n 426,859  \n 288,810 \n\nResearch and Development \n 325,513  \n - \n\nLease Expense \n 163,308  \n - \n\nProfessional fees \n 29,720  \n 50,888 \n\nPromotion cost \n 7,254  \n 102,922 \n\nOffice expense \n 6,811  \n 82,531 \n\nOthers \n 11,722  \n 931 \n\nGeneral and administrative expenses \n 6,571,187  \n 526,082 \n\n \n\nF-16\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n**11.**\n**Income\ntax**\n\n Schedule\nof income tax\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\n  \n   \n  \n\nIncome tax expense: \n    \n   \n\nCurrent year \n 8,406  \n 2,065 \n\n \n\nThe\nincome tax on the results for the financial year differs from the amount of income tax determined by applying the Hong Kong standard\nrate of income tax, where the Group’s primary operation is based, due to the following factors:\n\n Schedule\nof Reconciliation of income tax\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nProfit before income tax \n (7,176,796) \n (370,255)\n\nTax at the applicable tax rate of 16.5% \n (1,184,171) \n (61,092)\n\nTax effect of: \n    \n   \n\n- non-deductible expenses \n 135,463  \n 218,916 \n\n- non-taxable income \n (23,082) \n (393)\n\n- others \n 1,080,196  \n (155,366)\n\nIncome tax expense \n 8,406  \n 2,065 \n\n \n\n \n\n**12.**\n**Intangible\nassets**\n\n \n\nIntangible\nassets consist of capitalized patent application fees.\n\n Schedule\nof Intangible assets\n\n  \nAs of December 31  \nAs of December 31 \n\n  \n2025  \n2024 \n\n  \nUSD  \nUSD \n\nCost \n    \n   \n\nTrademark right \n 498  \n 487 \n\nCopyright \n 356  \n 348 \n\nPatent right \n 1,636  \n 1,600 \n\nTotal \n 2,490  \n 2,435 \n\nLess: Accumulated depreciation \n (2,013) \n (925)\n\nProperty and equipment, net \n 477  \n 1,510 \n\n \n\nF-17\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n**13.**\n**Share\ncapital**\n\n \n\n*(a)\nCommon Stock*\n\n \n\nAs\nof December 31, 2025, the Group issued 19,922,402 outstanding shares with authorized unlimited number of common shares without par value.\n\n \n\nDuring\nthe year ended December 31, 2025, the Group issued 2,619,876 common shares (10,479,504 before the 4-1 reverse stock split that occurred\non October 7, 2025) under Equity Line of Credit agreement with Hudson Global Ventures, LLC. for total proceeds of $23,027,502.\n\n \n\nOn\nOctober 3, 2025, the Group issued 16,825,577 common shares (67,302,300 before the 4-1 reverse stock split that occurred on October 7,\n2025) for the Merge of Core Gaming as a Reverse Takeover.\n\n \n\nAll\nshare and per-share amounts in these financial statements have been retroactively adjusted to reflect this split for all periods presented,\nunless otherwise noted as “pre-consolidation.”.\n\n \n\n*(b)\nPreferred C shares*\n\n \n\nOn\nJanuary 14, 2025, the Group completed a registered offering for an equity line of credit with one investor, Hudson Global Ventures, LLC.\nA commitment fee of 540 Class C preferred share was given to the investor with a fair value of these preferred shares at an 85% discount\nto their stated value and converted into of the Group’s common stock\n\n \n\nFor\nthe above 540 Class C preferred shares, on February 3, 2025, March 24, 2025 and July 14, 2025, the investor converted into 50,000, 49,723\nand 308,243 shares of the Group’s common stock, respectively. In connection with the conversion, the Group credited $276,470, $105,882\nand $252,136 to share capital with no gain or loss on the transaction, respectively.\n\n \n\nDuring\nthe year ended December 31, 2025, the Group redeemed 209 Class C Preferred Shares for total cash disbursements of $209,000.\n\n \n\nFor\nthe year ended December 31,2025, holders of 1,025 Class C preferred shares converted their shares into 811,743 common shares of the Group.\nThe Group credited $1,205,355 to share capital for the conversion. There was no gain or loss recognized on this transaction.\n\n \n\n**14.**\n**Common\nStock Warrant**\n\n** **\n\nThe\nGroup accounts for common stock warrants as equity instruments in accordance with ASC 815-40, Contracts in Entity’s Own Equity.\nThe warrants are (i) indexed to the Group’s own stock and (ii) meet the criteria for equity classification, as the Group maintains\nthe ability to settle the warrants in shares and no cash-settlement triggers exist that are outside the Group’s control. Accordingly,\nthese warrants are recorded in additional paid-in capital at their relative fair value on the date of issuance and are not subject to\nsubsequent remeasurement.\n\n \n\nIn\nconnection with the Merger on October 3, 2025, the Company issued an aggregate value of $5,600,000 pre-funded common stock purchase option\nto BSD Capital Ltd which are subject to a one-year lock-up period from the date of issuance with an exercise price of $0.0001 per share.\nThe Option has a term of seven years and expires on October 3, 2032.\n\n \n\nF-18\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\nThe\nbalance of the warrants are as follow:\n\n Schedule\nof Common Stock Warrant\n\n　 \n#of units  \nAmount  \n#of units  \nAmount  \n#of units  \nAmount  \n**#of\nunits**  \nAmount \n\n  \nWarrants  \nPre-funded warrants  \nPre-funded warrants  \n  \n\n  \n11-Jan-22  \n31-Oct-23  \n3-Oct-25  \nTotal \n\n　 \n#of units  \nAmount  \n#of units  \nAmount  \n#of units  \nAmount  \n**#of\nunits**  \nAmount \n\nBalance, December 31, 2024 \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n - \n\nWarrant arising from acquisition of Siyata PTT \n 80  \n -  \n 56  \n 100  \n -  \n -  \n 136  　  \n 100 \n\nIssuance of warrants \n -  \n -  \n -  \n -  \n 3,435,583  \n 5,600,000  \n 3,435,583  　  \n 5,600,000 \n\nBalance, December 31, 2025 \n 80  \n 0  \n 56  \n 100  \n 3,435,583  \n 5,600,000  \n 3,435,719  　  \n 5,600,100 \n\n \n\n \n\n**15.**\n**Acquisition\nof Siyata Mobile**\n\n \n\nThe\ntotal consideration transferred for accounting purposes was determined based on the fair value of the equity interests that Core Gaming\nwould have been required to issue to the former shareholders of Siyata Mobile to provide them with the same percentage ownership interest\nin the combined entity that they received as a result of the merger. The fair value of Core Gaming’s outstanding equity interests\nimmediately before the merger was $160,000,000, representing an 84.46% ownership interest in the combined entity post-merger. Consequently,\nthe total fair value of the combined entity’s equity was derived as approximately $189,448,487. The implied fair value of the deemed\nconsideration attributable to the former shareholders of Siyata Mobile was calculated based on the remaining 15.54% ownership interest,\namounting to $29,448,487.\n\n \n\nGoodwill\narising from the transaction was calculated as the excess of the deemed consideration over the fair value of Siyata Mobile’s identifiable\nnet assets acquired. As of the acquisition date, the fair value of Siyata Mobile’s net assets was $15,438,987. Accordingly, goodwill\nof $14,009,500 was recognized.\n\n \n\nThe\nfollowing summarizes the identified assets acquired and liabilities assumed pursuant to the accounting acquiree as of October 3, 2025:\n\n Schedule\nof Identified Assets Acquired and Liabilities Assumed\n\n  \n   \n\nCash \n 3,510,499 \n\nTrade and other receivables \n 2,744,789 \n\nPrepaid expenses \n 270,878 \n\nInventory \n 2,523,487 \n\nAdvance to suppliers \n 329,260 \n\nLong term receivable \n 170,414 \n\nRight of use assets \n 448,883 \n\nEquipment \n 142,484 \n\nIntangible Assets \n 10,067,545 \n\nTotal assets \n 20,208,239 \n\nLoans to financial institutions \n 1,642,477 \n\nAccounts payable and accrued liabilities \n 2,616,250 \n\nLease obligations \n 381,178 \n\nWarrant and preferred share liability \n 100 \n\nLong term lease liability \n 129,247 \n\nTotal liability \n 4,769,252 \n\nNet assets \n 15,438,987 \n\n** **\n\n****\n\nF-19\n\n \n\n** **\n\n****\n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n** **\n\n**16.**\n**Discontinued\nOperation**\n\n \n\nDeconsolidation\nof subsidiary In accordance with ASC 810-40, deconsolidation of a subsidiary occurs when: (a) some or all of the ownership interests\nof the subsidiary are sold resulting in the loss of a controlling financial interest; (b) a contractual agreement granting control of\nthe subsidiary expires; (c) the subsidiary issues its shares to outsiders reducing the parent’s ownership interest resulting in\nthe loss of a controlling financial interest; or (d) the subsidiary becomes subject to the control of a government, court, administrator\nor regulator. The parent should recognize a gain or loss measured as the difference between: (a) the aggregate of: (i) the fair value\nof any consideration received, (ii) the fair value of any retained non-controlling interest, and (iii) the carrying amount of any non-controlling\ninterest at the date the subsidiary is deconsolidated; and (b) the carrying amount of the subsidiary’s assets and liabilities.\nA subsidiary should be deconsolidated from the date a controlling financial interest is lost and should also consider the equity components\nincluded in the non-controlling interest.\n\n \n\nOn\nDecember 23, 2025, the Group entered into a Stock Purchase Agreement with Core AI Holdings, Inc. (“Seller”), the then-sole\nshareholder of the Group, and Mr. Marc Seelenfreund (the “Buyer”), pursuant to which the Seller disposed a portion of its\nentire equity interest in the Group to the Buyer, representing 90% of the outstanding common stock, while retaining the remaining 10%.\nThe transaction was completed on December 29,2025, at which point the Group ceased to be a subsidiary of the Seller. The retained 10%\nnon-controlling interest was recorded at its fair value of $294,429 on the deconsolidation date and is presented as a long term investment\nin accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic\n323. The carrying value of the net assets disposed of was $7,354,681, and the resulting loss on divestment of $18,419,967 was recognized\nin the consolidated statement of operations.\n\n \n\nThe\nfollowing tables set forth statement of operations of discontinued operations which were included in the Company’s consolidated\nfinancial statements:\n\n** **Schedule\nof Statement of Operations of Discontinued Operations\n\n  \n\nFor the period from\n\nOctober 3, 2025 to\n\nDecember 31, 2025\n \n\n  \nUSD \n\nRevenue \n 2,957,573 \n\nCost of sales \n (2,079,574)\n\nGross profit \n 877,999 \n\n  \n   \n\nOperating expenses \n   \n\nAmortization And Depreciation \n (433,349)\n\nDevelopment expenses \n (276,384)\n\nSelling expenses \n (1,643,611)\n\nGeneral and administrative expenses \n (1,225,463)\n\nAllowance for credit loss \n (4,313)\n\nInventory Impairment loss \n (266,135)\n\nTotal operating expenses \n (3,836,620)\n\n  \n   \n\nNet operating loss \n (2,958,621)\n\n  \n   \n\nOther expenses \n   \n\nFinance Expense \n (301,014)\n\nOther expenses, net \n (18,419,893)\n\nTransaction costs \n (2,745,803)\n\nForeign exchange \n 19,202 \n\nTotal other expenses \n (21,447,508)\n\n  \n   \n\nNet Loss from discontinued operations \n (24,406,129)\n\n  \n   \n\nLoss from divestment of subsidiaries\nunder discontinued operations: \n   \n\n  \n  \n\nConsiderations  Received \n 2,649,859 \n\nLess: Net assets divestment \n 7,354,681 \n\nGood will generated from acquisition \n 14,009,500 \n\nAdd: Fair value of 10% minority interest in divestment \n 294,429 \n\nLoss from divestment of subsidiaries \n (18,419,967)\n\n \n\nF-20\n\n \n\n** **\n\n****\n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n** **\n\n**17.**\n**Financial\ninstruments and financial risks**\n\n** **\n\nThe\nGroup’s activities expose it to a variety of financial risks from its operation. The key financial risk relevant to the Group is\ncredit risk.\n\n \n\nThe\nmanagement team reviews and agrees policies and procedures for the management of financial risks. There has been no change of the Group’s\nexposure to the financial risks or the manner in which it manages and measures the risks.\n\n** **\n\n**Credit\nrisk**\n\n \n\nCredit\nrisk refers to the risk that the counterparty will default on its contractual obligations resulting in a loss to the Group. The Group’s\nexposure to credit risk arises primarily from trade and other receivables. For other financial assets (including cash and cash equivalents),\nthe Group minimizes credit risk by dealing exclusively with high credit rating counterparties.\n\n \n\nThe\nGroup has adopted a policy of only dealing with creditworthy counterparties. The Group performs ongoing credit evaluation of its counterparties’\nfinancial condition and generally does not require a collateral.\n\n \n\nThe\nGroup considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit\nrisk on an ongoing basis throughout each reporting period.\n\n \n\nPayment\nterms are specified in agreements between the Group and the platforms and agencies. The Group generally reconciles with the platforms\nand agencies at the end of each month for the price of impressions filled in that month. Specific payment terms may vary by agreement\nbut are generally sixty days or less.\n\n \n\nAs\nof December,31, 2025, Accounts receivables amounted to $5,689,538, and are unsecured, and do not bear interest. The allowance for doubtful\naccounts is reviewed monthly, requires judgment, and is based on the best estimate of the amount of probable credit losses in existing\naccounts receivable. The Group reviews the status of the then-outstanding accounts receivable on a customer-by-customer basis, taking\ninto consideration the aging schedule of receivables, its historical collection experience, current information regarding the client,\nsubsequent collection history, and other relevant data, in establishing the allowance for doubtful accounts. Accounts receivables are\npresented net of an allowance for doubtful accounts. Accounts receivables are written off against the allowance for doubtful accounts\nwhen the Group determines amounts are no longer collectible.\n\n \n\nThe\nmovements in credit loss allowance are as follows:\n\n Schedule\nof Movements in Credit Loss Allowance\n\n  \nCredit loss allowance \n\n  \n$ \n\nBalance as of December 31, 2024 \n 491,245 \n\nChanges in credit risk \n 820,987 \n\nWritten off \n (1,110,558)\n\nExchange rate difference \n 6,453 \n\nBalance as of December 31, 2025 \n 208,127 \n\n** **\n\nF-21\n\n \n\n \n\n**Core AI Holdings, Inc. And Its Subsidiary**\n\n**Notes to The Consolidated Financial Statements**\n\n**For The Year Ended December 31, 2025 and 2024**\n\n**(Expressed In United States Dollars)**\n\n \n\n**Liquidity\nrisk**\n\n \n\nLiquidity\nrisks refer to the risks in which the Group and Group encounters difficulties in meeting its short-term obligations. Liquidity risks\nare managed by matching the payment and receipt cycle.\n\n \n\nThe\ntable below summarizes the maturity profile of the Group and Group’s financial assets and liabilities at the reporting date based\non contractual undiscounted repayment obligations:\n\n Schedule\nof Maturity Profile of the Group’s Financial Assets and Liabilities\n\n  \n\n**Less than**\n\n**1 year**\n  \n\nMore than 1\n\nyears but less\n\nthan 5 years\n  \n\nMore than\n\n5 years\n  \nTotal \n\nGroup \n$  \n$  \n$  \n$ \n\n  \n   \n   \n   \n  \n\nFinancial assets \n    \n    \n    \n   \n\nCash and cash equivalents \n 1,931,174  \n -  \n -  \n 1,931,174 \n\nOther receivables \n 2,748,769  \n 1,122,960  \n -  \n 3,871,729 \n\nTrade receivables \n 5,689,538  \n -  \n -  \n 5,689,538 \n\nAs of December 31, 2025 \n 10,361,481  \n 1,122,960  \n -  \n 11,492,441 \n\n  \n    \n    \n    \n   \n\nFinancial liabilities \n    \n    \n    \n   \n\nTrade and other payables \n 8,788,681  \n 1,329,365  \n -  \n 10,118,046 \n\nTaxes payables \n 22,929  \n -  \n -  \n 22,929 \n\nAs of December 31, 2025 \n 8,811,610  \n 1,329,365  \n -  \n 10,140,975 \n\n  \n    \n    \n    \n   \n\nNet undiscounted financial assets as of December 31, 2025 \n 1,557,871  \n (206,405) \n -  \n 1,351,466 \n\n \n\n**Market\nrisks**\n\n \n\nMarket\nrisk is the risk that changes in market prices, such as interest rates and foreign exchange rates that will affect the Group’s\nincome or the value of its holdings of financial instruments. The Group’s activities expose it primarily to the financial risks\nof changes in foreign currency exchange rates. The objective of market risk management is to manage and control market risk exposures\nwithin acceptable parameters, while optimizing the return on risk.\n\n \n\nThe\nGroup entities transact business in certain foreign currencies, mainly United State dollars, other than the respective functional currencies\nof the Group entities, and hence is exposed to foreign currency risks. Since the financial assets and liabilities of the Group entities\nare short-term in nature, their exposure to foreign currency risk is not significant. The Group ensures that the net exposure is kept\nto an acceptable level by buying or selling foreign currencies at spot rates where necessary to address short-term imbalances.\n\n \n\n**18.**\n**Commitments\nand Contingencies**\n\n \n\nThe\nGroup’s agreements with platforms and agencies typically obligate the Group to provide indemnity and defense for losses resulting\nfrom claims of intellectual property infringement, damages to property or persons, business losses, or other liabilities. No material\ndemands have been made upon the Group to provide indemnification under such agreements and there are no claims that the Group is aware\nthat could have a material effect on the Group’s financial statements.\n\n \n\n**19.**\n**Subsequent\nevents**\n\n \n\nThe\nGroup has evaluated subsequent events through the date of issuance of the consolidated financial statements, and did not identify any\nother subsequent events with material financial impact on the Group’s consolidated financial statements.\n\n \n\nF-22"}