CASCADIA BLOCKCHAIN GROUP CORP.
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian Dollars)

1

NOTICE TO READER OF THE UNAUDITED CONDENSED INTERIM CONOSLIDATED FINANCIAL STATEMENTS

The accompanying unaudited condensed interim consolidated financial statements of Cascadia Blockchain Group Corp. (the "Company") have been prepared by the Company's management and have not been reviewed by the Company's independent auditors. These condensed interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended January 31, 2025 which are available at the SEDAR+ website at www.sedarplus.ca.

CASCADIA BLOCKCHAIN GROUP CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
AS AT APRIL 30, 2025 AND JANUARY 31, 2025
(Expressed in Canadian dollars)

| | Notes | April 30, 2025
(Unaudited) | January 31, 2025
(Audited) |
| --- | --- | --- | --- |
| ASSETS | | | |
| Current assets | | | |
| Cash and cash equivalents | | $ 1,607 | $ 54,467 |
| Cryptocurrency | 3 | 998 | — |
| Other receivables | | 506 | 512 |
| Total current assets | | 3,111 | 54,979 |
| TOTAL ASSETS | | $ 3,111 | $ 54,979 |
| LIABILITIES AND EQUITY | | | |
| Current liabilities | | | |
| Accounts payable and accrued liabilities | 6 | $ 1,211,416 | $ 1,190,287 |
| Related party loan | 4 | 50,000 | 50,000 |
| Total current liabilities | | 1,261,416 | 1,240,287 |
| Equity | | | |
| Share capital | 5 | 14,181,763 | 14,181,763 |
| Contributed surplus | | 58,248 | 58,248 |
| Accumulated other comprehensive income (loss) | | 4,403 | (668) |
| Deficit | | (15,502,719) | (15,424,651) |
| Total deficiency | | (1,258,305) | (1,185,308) |
| TOTAL LIABILITIES AND DEFICIT | | $ 3,111 | $ 54,979 |

NATURE OF BUSINESS AND GOING CONCERN (NOTE 1)

On behalf of the Board:
(signed) Di Deng, Director
(signed) Hanxuan Wu, Director

(The accompanying notes are an integral part of these condensed interim consolidated financial statements.)

CASCADIA BLOCKCHAIN GROUP CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (UNAUDITED)
(Expressed in Canadian dollars)

(The accompanying notes are an integral part of these condensed interim consolidated financial statements.)

CASCADIA BLOCKCHAIN GROUP CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(Expressed in Canadian dollars)

(The accompanying notes are an integral part of these condensed interim consolidated financial statements.)

5

CASCADIA BLOCKCHAIN GROUP CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Expressed in Canadian dollars)

(The accompanying notes are an integral part of these condensed interim consolidated financial statements.)

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THESE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS CONTAIN THE FOLLOWING NOTES:

1. NATURE OF BUSINESS ... 7
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ... 7
3. CRYPTOCURRENCY ... 12
4. RELATED PARTY LOAN ... 12
5. SHARE CAPITAL ... 13
6. RELATED PARTY TRANSACTIONS AND BALANCES ... 13
7. RESEARCH AND DEVELOPMENT ... 13
8. FINANCIAL INSTRUMENTS ... 13
9. CAPITAL MANAGEMENT ... 15
10. SEGMENTED INFORMATION ... 15
11. SUBSEQUENT EVENT ... 15

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

1. NATURE OF BUSINESS

Cascadia Blockchain Group Corp. (the "Company" or "Cascadia") was incorporated on November 10, 2011 under the laws of British Columbia, Canada. Cascadia is a blockchain technology company operating in Vancouver, B.C., Canada. Its registered office is located at #530, 355 Burrard Street, Vancouver, British Columbia V6C 2G8. In September 2013, the Company was approved for listing on the Canadian Securities Exchange ("CSE"). The Company's common shares commenced trading on the CSE at the opening of markets on September 12, 2013 under the symbol "CK".

These interim consolidated financial statements are prepared on a going concern basis, which assumes that the Company will continue its operations for a reasonable period of time. For the three months ended April 30, 2025, the Company incurred a net loss of $78,068. The Company has a negative working capital of $1,258,305 and an accumulated deficit of $15,502,719 as at April 30, 2025. The Company received a US$50,000 unsecured loan from a director subsequent to April 30, 2025 for working capital purpose (Note 11). The Company's ability to continue as a going concern and to realize assets and discharge its liabilities in the normal course of business is dependent upon its generating profitable operations, obtaining additional financing or maintaining continued support from its shareholders and creditors, and identifying and acquiring other businesses or assets in the future. These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material.

The interim consolidated financial statements were approved by the Board of Directors and authorized for issuance on June 30, 2025.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

These unaudited condensed interim consolidated financial statements ("interim financial statements") have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). Accordingly, certain information and footnote disclosure normally included in annual financial statements prepared in accordance with IFRS Accounting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"), have been omitted or condensed. These interim financial statements should be read in conjunction with the Company's consolidated financial statements for the year ended January 31, 2025.

Basis of consolidation

These condensed interim consolidated financial statements incorporate the financial statements of the Company and its subsidiaries in the table below. All inter-company transactions, balances, income and expenses have been eliminated in full on consolidation.

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Company has:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee
• The ability to use its power over the investee to affect its returns

Generally, there is a presumption that a majority of voting rights results in control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

Basis of measurement

These interim consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

Functional and presentation currency

The presentation and functional currency of the Company is the Canadian dollar. The functional currency of its subsidiaries is also the Canadian dollar except for Tianjin Bocui Technology Ltd. ("Bocui") which is the Chinese Renminbi ("RMB").

Significant judgements and estimates

The preparation of these condensed interim consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses for the periods reported. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods.

Judgements are choices in accounting policies and disclosures which management believes are supported by facts and circumstances existing at the date of the consolidated financial statements.

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

Critical accounting judgements are accounting policies that have been identified as being complex or involve subjective judgments or assessments with a significant risk of material adjustment.

Significant judgement areas include:
- The ability of the Company to continue as a going concern.

Cash equivalents

Cash equivalents include short-term deposits with an original maturity of three months or less, which are readily convertible into a known amount of cash. There were no cash equivalents as of April 30, 2025 and January 31, 2025.

Cryptocurrency

Cryptocurrency meets the definition of intangible assets in IAS 38 Intangible Assets as it is an identifiable non-monetary asset without physical substance. It is initially recorded at cost and the revaluation method is used to measure the cryptocurrency subsequently. Under the revaluation method, increases in fair value of the cryptocurrency are recorded in other comprehensive income, while decreases are recorded in profit or loss. However, the decrease shall be recognized in other comprehensive income to the extent of any credit balance in the revaluation surplus in respect of the cryptocurrency. There is no recycling of gains from other comprehensive income to profit or loss. However, to the extent that an increase in fair value reverses a previous decrease in fair value that has been recorded in profit or loss, that increase is recorded in profit or loss.

The fair value of BTC is determined according to Bitcoin Reference Rate published by CME Group ("CME") on the reporting date, and the closing exchange rate between Canadian dollar and US dollar published by the Bank of Canada ("BOC") on the same day. The price of BTC is volatile, and it exposes the Company to market risk due to the fluctuation of cryptocurrency price.

USDC is a regulated stable coin and is collateralized and redeemable on a one-for-one basis for US dollars. USDC is a translated to Canadian dollar using the closing exchange rate published by BOC.

Financial instruments

All financial assets and liabilities are classified into the following categories: financial assets / liabilities measured at amortized cost or financial assets / liabilities measured at fair value through profit or loss ("FVTPL").

Financial assets / liabilities measured at amortized cost are initially recognized at fair value less directly attributable transaction costs. After initial recognition, the financial assets / liabilities are subsequently measured at amortized cost using the effective interest rate method. The effective interest rate method is a method of calculating the amortized cost of a financial asset / liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that discounts estimated future cash payments through the expected life of the financial assets / liabilities, or, where appropriate, a shorter period. The Company's accounts receivable and other receivables excluding GST recoverable are classified as financial assets measured at amortized cost, and accounts payable, loan payable and lease liability are classified as liabilities measured at amortized cost.

Financial assets / liabilities classified as FVTPL are initially recorded and subsequently measured at fair value with unrealized gains and losses recognized through earnings. The Company's cash and cash equivalents are classified as a financial asset at FVTPL. The Company has no financial instruments classified as financial liabilities at FVTPL at April 30, 2025 and January 31, 2025.

Transactions costs associated with financial assets at FVTPL are expensed as incurred, while transaction costs associated with all other financial assets are included in the initial carrying amount of the asset.

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

Provisions

Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the consolidated statement of financial position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount receivable can be measured reliably.

Share capital

The Company records proceed from the issuance of its common shares as equity. Incremental costs directly attributable to the issue of new common shares are shown in equity as a deduction, net of tax, from the proceeds. Common shares issued for consideration other than cash are valued based on their market value at the date that the shares are issued.

The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the most easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component.

Financing costs

Professional, consulting, regulatory and other costs directly attributable to financing transactions are recorded as deferred financing costs until the financing transactions are completed, if the completion of the transaction is considered likely; otherwise, they are expensed as incurred. Share issue costs are charged to share capital when the related shares are issued. Deferred financing costs related to financing transactions that are not completed are charged to earnings.

Investment in associate

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The investment in its associate is accounted for using the equity method.

Foreign currency translation

Transactions denominated in foreign currencies are converted to the functional currency at exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate prevailing at the reporting date. Non-monetary assets and liabilities are translated at historical exchange rates prevailing at each transaction date. Revenues and expenses are translated at exchange rates prevailing on the date of transactions. All exchange gains and losses are included in the determination of profit or loss.

Financial statements of subsidiary companies prepared under their functional currencies are translated into Canadian dollars for consolidation purposes. Amounts are translated using the current rates of exchange for assets and liabilities and using the average rates of exchange for the period for revenues and expenses. Gains and losses resulting from translation adjustments are recorded as other comprehensive income (loss). In the event of a reduction of the Company's net investment in its foreign operations, the portion of accumulated other comprehensive income related to the reduction is realized and recognized in profit or loss.

Impairment of long-lived assets

Long-lived assets, including intangible assets, with finite lives are tested for impairment at the end of each reporting period. In addition, long-lived assets that are not amortized are subject to an annual impairment assessment. Any impairment loss is recognized in profit or loss, or the results of discontinued operations,

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

as appropriate, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost to sell or its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows ("cash-generating units" or "CGUs").

Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior periods. A reversal of an impairment loss is recognized immediately in profit or loss.

Share-based compensation

Share-based compensation to employees and others providing similar services are measured at the grant date fair value of the instruments issued and amortized over the vesting periods. Share-based compensation to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued if the fair value of the goods or services received cannot be reliably measured, and are recorded at the date the goods or services are received. The amount recognized as an expense is adjusted to reflect the number of options expected to vest. The offset to the recorded cost is to contributed surplus. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount ultimately recognized as an expense is based on the number of options that eventually vest. Consideration received on the exercise of stock options is recorded as share capital and the related amount of contributed surplus is transferred to share capital.

The fair value of the stock options is determined using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience), expected dividends, expected forfeiture rates and the risk-free interest rate (based on government bonds).

Research and Development

Research expenditures are expensed as incurred. These costs typically include activities undertaken to obtain new scientific or technical knowledge and understanding and do not meet the recognition criteria for an intangible asset.

Development expenditures are capitalized only when the Company can demonstrate all of the following:

• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• its intention to complete the asset and use or sell it;
• its ability to use or sell the asset;
• how the asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the asset; and
• its ability to measure reliably the expenditure attributable to the asset during its development.

Expenditures that do not meet these criteria are expensed as incurred.

Loss per share

The Company presents basic and diluted loss per share data for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted loss per share does not adjust the loss attributable to common shareholders or the weighted average number of common shares outstanding when the effect is anti-dilutive.

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

Standard and amendments to be adopted for its annual period beginning on February 1, 2026

Certain pronouncements were issued by the IASB or the IFRIC that are mandatory for accounting periods beginning on or after February 1, 2026 or later periods. Many are not applicable or do not have a significant impact to the Company and have been excluded below.

Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments

In May 2024, the International Accounting Standards Board ("IASB") issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). These amendments updated classification and measurement requirements in IFRS 9 Financial Instruments and related disclosure requirements in IFRS 7 Financial Instruments: Disclosures. The IASB clarified the recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash flow characteristics of financial assets in determining whether they meet the solely payments of principal and interest criterion, including financial assets that have environmental, social and corporate governance ("ESG")-linked features and other similar contingent features. The IASB added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs and amended disclosures relating to equity instruments designated at fair value through other comprehensive income.

The amendments are effective and are applicable to the Company for its annual periods beginning on February 1, 2026, with early application permitted. Management is currently assessing the effect of these amendments on the Company's financial statements.

IFRS 18 – Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure of Financial Statements (IFRS 18), which replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three defined categories of operating, investing and financing, and by specifying certain defined totals and subtotals. Where company-specific measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations around these measures, which are referred to as management-defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial statements and the notes. Retrospective application is required, and early application is permitted. Management is currently assessing the effect of this new standard on our financial statements.

The standard is effective is applicable to the Company for its annual periods beginning February 1, 2027 and thereafter, with an earlier application permitted, with early application permitted. Management is currently assessing the effect of the standard on the Company's financial statements.

3. CRYPTOCURRENCY

As at April 30, 2025, the Company had 697 USDC, equivalent to $998 (January 31, 2025: nil USDC), which has been converted to Canadian dollar for working capital purpose in May 2025.

4. RELATED PARTY LOAN

On June 2, 2023, the Company received an unsecured loan from a director of the Company of $50,000. The loan is due on demand and bears interest of 10% per annum. As at April 30, 2025, interest accrual of $9,548 (January 31, 2025: $8,329) is recorded in accounts payable and accrued liabilities.

Subsequent to the three months ended April 30, 2025, the Company received additional US$50,000 from the director. The loan is due on demand and bears interest of 10% per annum.

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

5. SHARE CAPITAL

Authorized:

The Company has authorized an unlimited number of common and preferred shares with no par value.

On February 21, 2024, the Company completed a private placement of $650,000 through issuance of 21,666,667 common shares at a price of $0.03 per share. The proceed of $650,000 was received in 480,840 USDC in cryptocurrency. As USDC is not cash or cash equivalents, this is a non-cash transaction and it's not reflected on the consolidated statements of cash flows.

Stock options

The Company adopted an incentive stock option plan, which provides that the Board of Directors of the Company may from time to time, in their discretion, and in accordance with the requirements of the CSE (the "Exchange"), grant to directors, officers, and technical consultants to the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed 10% of the issued and outstanding common shares of the Company. Options will be exercisable for a period of up to five years from the date of grant.

There are no stock options outstanding and exercisable as of April 30, 2025 and January 31, 2025.

6. RELATED PARTY TRANSACTIONS AND BALANCES

The salaries, consulting fee and benefits compensation of key management personnel of the Company was $63,000 for the three months ended April 30, 2025 (2024: $63,000).

Key management includes directors, the Chief Executive Officer ("CEO") and the Chief Financial Officer ("CFO") of the Company.

Included in accounts payable and accrued liabilities were salaries, consulting fee and benefits payable due to directors and officers of the Company for $1,032,011 (January 31, 2025: $987,511), and interest payable of $9,548 (January 31, 2025: $8,329) from a related party loan.

In May 2025, the Company received an unsecured loan from a director of the Company of US$50,000 (C$69,258 equivalent). The loan is due on demand and bears interest of 10% per annum.

These transactions are in the normal course of operations and are measured at the exchange amount established and agreed to by the related parties.

7. RESEARCH AND DEVELOPMENT

During the three months ended April 30, 2024, the Company engaged a third party to develop a platform to provide authentication services for non-fungible tokens ("NFTs"), and made a payment of USDC 301,200 (equivalent to $407,162 in Canadian dollars). The development fee was expensed due to the uncertainty regarding whether the platform would generate probable future economic benefits. The project was discontinued in the fourth quarter of fiscal 2025 as a result of a significant decline in market interest in NFTs.

8. FINANCIAL INSTRUMENTS

The Company classifies its cash and cash equivalents as financial asset measured at FVTPL, accounts receivable and other receivables (excluding GST recoverable) as financial assets measured at amortized cost, its accounts payable and accrued liabilities, and loans payable as financial liabilities measured at amortized cost. The carrying amount of financial assets and liabilities carried at amortized cost is a reasonable approximation of their fair value due to the relatively short period to maturity of these financial

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

instruments.

Fair value

The following table summarizes the carrying values of the Company's financial instruments:

(i) Cash and cash equivalents
(ii) Other receivables
(iii) Accounts payable and accrued liabilities, and related party loan

Financial instruments measured at fair value on a recurring basis are classified into one of three levels in the fair value hierarchy based on the degree to which the inputs used to determine the fair value are observable. The three levels of the fair value hierarchy are:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Cash and cash equivalents and USDC are classified as Level 1. There were no transfers into or out of Level 2 or Level 3 during the three months ended April 30, 2025. The fair value of other receivables, accounts payable and accrued liabilities and related party loan approximate their carrying values due to the short-term to maturities of these financial instruments.

Financial risk management

The Company's financial risks arising from its financial instruments are market risk, credit risk, liquidity risk and interest rate risk. The Company's exposure to these risks and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure appropriate measures are implemented in a timely and effective manner.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk consists of currency risk, which is the risk that exposes the Company to financial risk related to the fluctuation in exchange rates.

The Company minimal currency risk as neither the Company nor its subsidiaries have any financial instruments denominated in currencies other than their functional currency as at April 30, 2025.

Credit risk

Credit risk is the risk of potential loss to the Company if the counter party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company's credit risk with respect to its cash is minimal as it is held with a large financial institution. The Company's maximum exposure to credit risk for the components of the condensed interim consolidated statement of financial position at April 30, 2025 and 2024 is the carrying value of each class of financial assets disclosed in the condensed interim consolidated financial statements.

14

CASCADIA BLOCKCHAIN GROUP CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED APRIL 30, 2025 AND 2024
(Expressed in Canadian dollars)

Liquidity risk

Liquidity risk is the risk that the Company will not meet its obligations associated with its financial liabilities as they fall due. The Company manages liquidity risk through the management of its capital structure and financial leverage, as outlined in Note 10. Management closely monitors the liquidity position and expects to have adequate sources of funding to finance the Company's projects and operations. As at April 30, 2025, the Company had a working capital deficit of $1,258,305 (January 31, 2025: deficit $1,185,308). All of the Company's financial liabilities are classified as current.

Interest rate risk

The Company has no interest-bearing debt. The Company has not entered into any derivative instruments to manage interest rate fluctuations. The Company is not exposed to significant interest rate risk.

9. CAPITAL MANAGEMENT

The Company's objective when managing capital is to safeguard its ability to continue as a going concern while exploring to develop and provide proprietary, secured and legally compliant trading platforms around globe for selected digital assets and cryptocurrencies, so that it can continue to provide returns to shareholders and benefits for other stakeholders. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In management of capital, the Company's capital includes shareholders' equity.

The Company's objective is met by retaining adequate equity to provide for the possibility that cash flows from assets will not be sufficient to meet future cash flow requirements. The Board of Directors does not establish quantitative return on capital criteria for management. Currently, the Company is relying on private placements and advances from the directors and officers to continue its operations. The Company is not subject to any externally imposed capital requirements.

10. SEGMENTED INFORMATION

IFRS 8 - Operating Segments requires operating segments to be determined based on internal reports that are regularly reviewed by the chief operating decision maker for the purpose of allocating resources to the segment and to assessing its performance. For the three months ended April 30, 2025, the Company operated in one segment in the development of blockchain technology platform in the digital asset and cryptocurrency sectors.

11. SUBSEQUENT EVENT

On May 12, 2025, the Company received an unsecured loan from a director of the Company of US$50,000 ($69,258 equivalent). The loan is due on demand and bears interest of 10% per annum.