Form 8-K

8-K — PMGC Holdings Inc.

Accession: 0001213900-26-055405

Filed: 2026-05-13

Period: 2026-05-11

CIK: 0001840563

SIC: 2834 (PHARMACEUTICAL PREPARATIONS)

Item: Entry into a Material Definitive Agreement

Item: Completion of Acquisition or Disposition of Assets

Item: Regulation FD Disclosure

Item: Financial Statements and Exhibits

Documents

8-K — ea0290098-8k_pmgc.htm (Primary)

EX-10.1 — STOCK PURCHASE AGREEMENT DATED AS OF MAY 11, 2026, BY AND BETWEEN PMGC HOLDINGS INC., A&B AEROSPACE, INC., AND THE STOCKHOLDERS OF A&B AEROSPACE, INC (ea029009801ex10-1.htm)

EX-99.1 — UNAUDITED FINANCIAL STATEMENTS OF A&B AEROSPACE, INC. AS OF THE NINE MONTHS ENDED FEBRUARY 28, 2026 AND FEBRUARY 28, 2025 (ea029009801ex99-1.htm)

EX-99.2 — AUDITED FINANCIAL STATEMENTS OF A&B AEROSPACE, INC. AS OF THE FISCAL YEAR ENDED MAY 31, 2025 AND MAY 31, 2024 (ea029009801ex99-2.htm)

EX-99.3 — UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET OF PMGC HOLDINGS INC. FOR THE YEAR ENDED DECEMBER 31, 2025 AND UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2025 (ea029009801ex99-3.htm)

EX-99.4 — PRESS RELEASE DATED MAY 13, 2026 (ea029009801ex99-4.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — CURRENT REPORT

8-K (Primary)

Filename: ea0290098-8k_pmgc.htm · Sequence: 1

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0001840563

2026-05-11

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UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

WASHINGTON,

D.C. 20549

FORM

8-K

CURRENT

REPORT

PURSUANT

TO SECTION 13 OR 15(d) OF

THE

SECURITIES EXCHANGE ACT OF 1934

Date

of Report (Date of earliest event reported): May 11, 2026

PMGC Holdings Inc.

(Exact

name of registrant as specified in its charter)

Nevada

001-41875

33-2382547

(State

or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S.

Employer

Identification No.)

c/o 120 Newport Center Drive

Newport Beach, CA

92660

(Address

of principal executive offices)

(Zip

Code)

Registrant’s

telephone number, including area code: (888) 445-4886

N/A

(Former

name or former address, if changed since last report)

Check

the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under

any of the following provisions:

☐

Written communications

pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant

to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications

pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications

pursuant to Rule 13e-4© under the Exchange Act (17 CFR 240.13e-4©)

Securities

registered pursuant to Section 12(b) of the Act:

Title

of each class

Trading

Symbol(s)

Name

of each exchange on which registered

Common Stock, $0.0001 par value

ELAB

The Nasdaq Stock Market

LLC

Indicate

by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405

of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging

growth company ☒

an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying

with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01

Entry into a Material Definitive Agreement.

The

information set forth under Item 2.01 of this Current Report on Form 8-K (“Form 8-K) is incorporated herein by reference.

Item

2.01. Completion of Acquisition or Disposition of Assets.

May 12, 2026, PMGC Holdings Inc. (the “Company”) completed the acquisition (the “Acquisition”) of 100% of the

issued and outstanding shares (the “Shares”) of A&B Aerospace, Inc., a California corporation (the “Target”),

pursuant to a Stock Purchase Agreement dated as of May 11, 2026 (the “Purchase Agreement”), by and between the Company, the

Target, and stockholders of the Target owning the Shares (such stockholders, collectively, the “Sellers,” and, together with

the Company and the Target, the “Parties”).

The

Acquisition closed on May 12, 2026 (consummation of the Acquisition, “Closing” and such date, “Closing Date”).

The purchase consideration for the Shares consisted of: (i) $4,500,000 in cash, of which $4,275,000 was paid to the Sellers at Closing

(the “Closing Purchase Price”) and $225,000 was retained by the Company at Closing as an indemnification holdback (the “Indemnification

Holdback”) as to the Litigation (as defined below); plus (ii) the Estimated Closing Cash Balance (as defined below), which the

Sellers are required under Purchase Agreement to use commercially best efforts to cause to be at least $300,000 at the Closing;

plus (iii) the amount, if any, by which the Estimated Net Working Capital (as defined below) is greater than the Net Working Capital

Target (as defined below), less (iv) the amount, if any, by which the Estimated Net Working Capital is less than the Net Working Capital

Target (as defined below). The Purchase Agreement provides for a post-Closing true-up consisting of: (1) a Closing Cash Balance Adjustment

equal to the Final Cash Balance (as defined below) minus the Estimated Closing Cash Balance (as defined below), and (B) a Net Working

Capital Adjustment Amount equal to the Final Net Working Capital minus the Estimated Net Working Capital, with the sum of such two amounts

(the “Final Adjustment Amount”) settled in cash between the Company and the Sellers within five Business Days after final

determination.

After

Closing, the Target will continue operating its business at the Target’s existing facility, pursuant to a commercial lease agreement

entered into at Closing between the Target and certain lessors (the “Lease Agreement”). The President of the Target prior

to Closing will continue to serve as President of the Target following the Closing, pursuant to an employment agreement entered into

at Closing between such individual and the Target. Under the Purchase Agreement, the Sellers agreed to remain available to the Company

for a period of six (6) months after the Closing Date to provide reasonable transition services, including assistance with required financial

audits, operational knowledge transfer, and other reasonable matters for post-Closing transition. The Sellers also agreed to a three

(3)-year non-competition provision in the Purchase Agreement as to the information technology packaging business the State of California

and commencing on the Closing Date. The Sellers also agreed to a customary non-solicitation provision.

The

Parties agreed to certain customary closing conditions and representations and warranties. The Parties agreed to certain customary indemnification

provisions, and the Sellers agreed to indemnify the Company for, among other things: (i) all Taxes of the Target attributable to Pre-Closing

Tax Periods (as defined below), (ii) Losses related to any employee being ineligible or unauthorized to work in the United States as

of the Closing Date, and (iii) any claim with respect to a certain pending litigation of the Target.

“Balance

Sheet” means the balance sheet of the Target as of December 31, 2025.

“Closing

Cash Balance Adjustment” means the Final Cash Balance minus the Estimated Closing Cash Balance.

“Closing

Net Working Capital” means the calculation of the Target’s Net Working Capital as of the Closing, as set forth in the Closing

Statement.

“Closing

Statement” means a closing statement prepared by the Company and delivered to the Sellers within 90 days after the Closing, setting

forth the Closing Net Working Capital and the Final Cash Balance.

“Estimated

Closing Balance Sheet” means the balance sheet of the Target as of the Closing, prepared on a basis consistent with the preparation

of the Balance Sheet.

“Estimated

Closing Cash Balance” means the calculated cash and cash equivalents of the Target as of the Closing.

“Estimated

Net Working Capital” means the calculated net working capital of the Target based on the Estimated Closing Balance Sheet.

“Final

Cash Balance” means the Closing Cash Balance as set forth in the Closing Statement, as finally determined in accordance with Section

1.04(c) of the Purchase Agreement.

“Net

Working Capital Target” means an amount equal to $855,669.

“Pre-Closing

Tax Period” means any taxable period ending on or before the Closing Date and, with respect to any taxable period beginning before

and ending after the Closing Date, the portion of such taxable period ending on and including the Closing Date.

Capitalized

terms used but not otherwise defined in this Form 8-K shall have the respective meanings ascribed thereto by the Purchase Agreement,

filed in this Form 8-K as Exhibit 10.1. The foregoing

summary of the transactions contemplated by the Purchase Agreement do not purport to be complete and are subject to, and qualified in

their entirety by, the full text of the Purchase Agreement filed herein as Exhibit 10.1.

Item

7.01 Regulation FD Disclosure.

May 13, 2026, the Company issued a press release, a copy of which is furnished as Exhibit 99.4 to this Form 8-K.

The

information furnished pursuant to this Item 7.01, including Exhibit 99.1 shall not be deemed “filed” for purposes of

Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities

of that section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933,

as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item

9.01. Financial Statements and Exhibits.

(a)

Financial Statements of Business Acquired.

The

unaudited financial statements of A&B Aerospace, Inc. as of the nine months ended February 28, 2026 and February 28, 2025 are filed

herein as Exhibit 99.1 and incorporated herein by reference into this Item 9.01(a). The audited financial statements of A&B Aerospace,

Inc. as of the fiscal year ended May 31, 2025 and May 31, 2024 are filed herein as Exhibit 99.2 and incorporated herein by reference

into this Item 9.01(a).

(b)

Pro Forma Financial Information.

The

Unaudited Pro Forma Condensed Combined Balance Sheet of PMGC Holdings Inc. as of December 31, 2025 and the Unaudited Pro Forma Condensed

Combined Statements of Operations of PMGC Holdings Inc. for the year ended December 31, 2025 are filed herein as Exhibit 99.3 and incorporated

herein by reference into this Item 9.01(b).

(d)

Exhibits.

The

following exhibits are being filed herewith:

Exhibit

No.

Description

10.1*+

Stock Purchase Agreement dated as of May 11, 2026, by and between PMGC Holdings Inc., A&B Aerospace, Inc., and the stockholders of A&B Aerospace, Inc.

99.1

Unaudited financial statements of A&B Aerospace, Inc. as of the nine months ended February 28, 2026 and February 28, 2025.

99.2

Audited financial statements of A&B Aerospace, Inc. as of the fiscal year ended May 31, 2025 and May 31, 2024

99.3

Unaudited Pro Forma Condensed Combined Balance Sheet of PMGC Holdings Inc. for the year ended December 31, 2025 and Unaudited Pro Forma Condensed Combined Statements of Operations for the year ended December 31, 2025.

99.4

Press release dated May 13, 2026.

104

Cover Page Interactive

Data File (embedded with the Inline XBRL document).

The schedules, exhibits

or similar attachments have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. The Company will furnish

copies of any schedules, exhibits or similar attachments to the Securities and Exchange Commission upon request.

Portions of this exhibit

have been redacted.

SIGNATURES

Pursuant

to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by

the undersigned hereunto duly authorized.

Date:

May 13, 2026

PMGC Holdings, Inc.

By:

/s/

Graydon Bensler

Name:

Graydon Bensler

Title:

Chief Executive Officer, President and Director

EX-10.1 — STOCK PURCHASE AGREEMENT DATED AS OF MAY 11, 2026, BY AND BETWEEN PMGC HOLDINGS INC., A&B AEROSPACE, INC., AND THE STOCKHOLDERS OF A&B AEROSPACE, INC

EX-10.1

Filename: ea029009801ex10-1.htm · Sequence: 2

Exhibit 10.1

PORTIONS OF THIS EXHIBIT HAVE BEEN REDACTED BECAUSE IT IS NOT MATERIAL

AND OF A TYPE THAT PMGC HOLDINGS INC. TREATS AS PRIVATE OR CONFIDENTIAL. SUCH REDACTED PORTIONS ARE INDICATED WITH “[***].”

STOCK PURCHASE AGREEMENT

between

[***],

A&B AEROSPACE, INC.,

and

PMGC

Holdings Inc.

dated as of

May 11, 2026

STOCK PURCHASE AGREEMENT

This Stock Purchase

Agreement (this “Agreement”), dated as of [*], 2026, is entered into by and among A&B Aerospace, Inc., a

California corporation (the “Company”), [***], and [***],

constituting all of the stockholders of the Company (collectively, “Sellers”), and PMGC Holdings Inc., a Nevada

corporation (“Buyer”). Capitalized terms used in this Agreement have the meanings given to such terms herein,

including those set forth in Exhibit A attached hereto.

RECITALS

WHEREAS, Sellers own

100% of the issued and outstanding shares (the “Shares”), of the Company; and

WHEREAS, Sellers wish

to sell to Buyer, and Buyer wishes to purchase from Sellers, the Shares, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in

consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt

and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

Purchase and sale

Section 1.01 Purchase

and Sale. Subject to the terms and conditions set forth herein, at the Closing, Sellers shall sell to Buyer, and Buyer shall

purchase from Sellers, the Shares, free and clear of any mortgage, pledge, lien, charge, security interest, claim, community property

interest, option, equitable interest, restriction of any kind (including any restriction on use, voting, transfer, receipt of income,

or exercise of any other ownership attribute), or other encumbrance) (each, an “Encumbrance”), except for those items

set forth in Section 1.01 of the Disclosure Schedules, on a cash-free debt-free basis.

Section 1.02 Purchase

Price.

(a) The

aggregate purchase price for the Shares (the “Purchase Price”) is (1) $4,500,000 in cash, of which $4,275,0000 is

payable to the Sellers in cash at Closing (the “Closing

Purchase Price”), and $225,000 constituting the Holdback Amount (the “Indemnification

Holdback”), which shall be retained by Buyer at Closing; plus (2) the Estimated

Closing Cash Balance, it being agreed and understood that the Sellers shall use their commercially best efforts to cause the Company

to have an Estimated Closing Cash Balance of at least $300,000; plus

(3) the amount, if any, by which Estimated

Closing Net Working Capital is greater than the Net Working Capital Target less (4) the amount, if any, by which the Estimated Closing

Net Working Capital is less than the Net Working Capital Target as described in Section 1.04 (the “Closing

Payment”). The “Net Working Capital Target”

means an amount equal to $855,669.

(b) Buyer

shall pay the Closing Purchase Price to Sellers at the Closing by wire transfer of immediately available funds in accordance with the

wire transfer instructions set forth in Section 1.02 of the Disclosure Schedules. The term “Disclosure Schedules”

means the disclosure schedules, attached hereto and made a part of this Agreement, delivered by Sellers concurrently with the execution,

closing, and delivery of this Agreement.

Closing, the Buyer will retain the Indemnification Holdback to satisfy the indemnification under Section 7.01(d). In the event

that such indemnification claim is less than the Indemnification Holdback, Buyer shall pay over to the Sellers any remaining amounts of

the Indemnification Holdback within ten days of the final adjudication of such claim.

Section 1.03 Withholding

Taxes. Buyer is entitled to deduct and withhold from the Purchase Price all Taxes that Buyer may be required to deduct and

withhold under any provision of Tax Law. All such withheld amounts shall be treated as delivered to Sellers hereunder.

Section 1.04 Closing

Adjustment.

(a) No

later than three (3) Business Days prior to the Closing Date, Sellers shall deliver to Buyer a statement (the “Estimated Closing

Statement”) setting forth a reasonable good faith calculation of an estimate of (i) a balance sheet of the Company as of the

Closing prepared on a basis consistent with the preparation of the Balance Sheet (the “Estimated Closing Balance Sheet”)

and (ii) a calculation of the Net Working Capital based on the Estimated Closing Balance Sheet (the “Estimated Net Working Capital”).

The Estimated Net Working Capital will

be calculated as at the Closing Date, and applied on a basis consistent with the accounting, policies, principles, practices, procedures,

methodologies, and estimation techniques used in the preparation of the Balance Sheet, and shall include accounts receivable, works in

progress, booked but unfulfilled orders, less accounts payable and two payrolls of the Company, all as of the Closing Date, and (iii)

a calculation of the Cash of the Company at Closing (the “Estimated Closing Cash Balance”). The Parties acknowledge

that the Estimated Closing Statement shall be used for purposes of calculating the Closing Payment.

(b) Within

ninety (90) days after the Closing, Buyer shall prepare and deliver to Sellers a calculation of the Net Working Capital of the Company

as of the Closing (the “Closing Net Working Capital”), and a calculation of the Cash of the Company as of the Closing

(the “Final Closing Cash Balance”), collectively, the “Closing Statement”). After delivery of the

Closing Statement, Buyer shall permit Seller and its accountants reasonable access to the accounting records, work papers and computations

used by Buyer in the preparation of the Closing Statement.

Sellers dispute any amounts reflected on the Closing Statement as delivered by Buyer, Sellers shall so notify Buyer in writing (a “Notice

of Dispute”) not more than forty-five (45) days after the date Sellers receive the Closing Statement, specifying in reasonable detail

all points of disagreement and setting forth Sellers’ own calculations of the amounts it claims are proper for each such item in

the Closing Statement it disagrees with (any such disagreement hereinafter, a “Disagreement”). If Sellers fail to deliver

a Notice of Dispute within such forty-five (45)-day period, Sellers shall be deemed to have accepted the Closing Statement (and all amounts

and calculations set forth thereon) and the Closing Statement as originally delivered by Buyer (and all such amounts and calculations)

shall be final, binding, and non-appealable by the Parties. If a Notice of Dispute is timely delivered, Sellers and Buyer shall negotiate

in good faith to resolve any Disagreement (as evidenced by a written agreement between them). Only those items and calculations specifically

included in the Notice of Dispute as required herein shall be eligible for inclusion in the Disagreement. If the Disagreement is not resolved

by Buyer and Sellers in writing within thirty (30) days after Buyer receives the Notice of Dispute, they shall refer the Disagreement

to an independent nationally recognized accounting firm that is mutually agreed to by Buyer and Sellers in writing (the “Accountant”)

for resolution of such Disagreement in accordance with the terms of this Agreement. Buyer and Seller shall instruct the Accountant that

the determinations of such firm with respect to any Disagreement shall be rendered within fifteen (15) days after the referral of the

Disagreement or as soon thereafter as reasonably possible. The scope of the Accountant’s authority to act shall be strictly limited

to determining whether the unresolved items that remain in dispute in the Disagreement were prepared in accordance with this Agreement,

including the Accounting Principles, and the Accountant shall determine, on such basis, whether and to what extent the Closing Statement

requires adjustment. The Accountant’s decision shall be based solely on written submissions and presentations by Sellers and Buyer

and their respective representatives and not based on any independent review by the Accountant. The Accountant shall act as an expert,

not an arbitrator, and shall have authority only to address and calculate values for only those items that remain in dispute in the Disagreement

and may not assign a value greater than the greatest value claimed for such item by either Party or smaller than the smallest value for

such item claimed by either Party. The determination of the Accountant pursuant to this Section 1.04(c) shall be final and binding

on the Parties. The fees, costs and expenses of the Accountant shall be allocated between the Sellers, jointly and severally, on the one

hand, and Buyer, on the other hand, in the same proportion that the aggregate amount of the disputed items submitted to the Accountant

that is unsuccessfully disputed by each such Party (as finally determined by the Accountant) bears to the total amount of disputed items

so submitted; provided, that such fees, costs and expenses shall not include, so long as a Party complies with the procedures of this

Section 1.04(c), the other Party’s outside counsel or accounting fees. The Closing Net Working Capital and Closing Cash Balance,

each as set forth on the Closing Statement as finally determined in accordance with the terms of this Section 1.04(c), shall be

referred to as the “Final Net Working Capital” and the “Final Cash Balance” respectively.

(d) Final

Adjustment Amount.

(i)

The “Closing Cash Balance Adjustment,” which may be positive or negative, means the Final Cash Balance minus the Estimated

Closing Cash Balance.

(ii) The

“Net Working Capital Adjustment Amount,” which may be positive or negative, means the Final Net Working Capital minus

the Estimated Net Working Capital.

(iii) The

“Final Adjustment Amount”, which may be positive or negative, means the Closing Cash Balance Adjustment plus the Net

Working Capital Adjustment Amount.

(e) If

the Final Adjustment Amount is a positive number, Seller shall be entitled to receive from Buyer an amount in cash. If the Final Adjustment

Amount is a negative number, Buyer shall be entitled to receive from the Seller an amount in cash equal to such amount.

(f) If

either Party is entitled to receive a payment pursuant to Section 1.04(e), such Party shall, not more than five (5) Business Days

after determination of the Final Adjustment Amount, make payment of the value of the Final Adjustment Amount by wire transfer in immediately

available funds to the other Party as so directed by such Party.

ARTICLE II

CLOSING

Section 2.01 Closing.

The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place simultaneously

with the execution of this Agreement on the date of this Agreement (the “Closing Date”) remotely by exchange of documents

and signatures (or their electronic counterparts).

Section 2.02 Sellers’

Closing Deliverables. At the Closing, Sellers shall deliver to Buyer the following:

(a) Share

certificates evidencing the Shares, free and clear of all Encumbrances, duly endorsed in blank or accompanied by stock powers or other

instruments of transfer duly executed in blank;

(b) A

certificate of the Sellers or a Secretary (or other officer acting in such capacity) of the Seller if an entity certifying: (i) that attached

thereto are true and complete copies of all resolutions of the board of directors of the Sellers and its stockholders authorizing the

execution, delivery, and performance of this Agreement, and any other agreement, document or instrument entered into or delivered in connection

with the transactions contemplated in this Agreement (collectively, the “Transaction Documents”) to which the Sellers

or the Company is a party and the Closing, and that such resolutions are in full force and effect; (ii) the names, titles, and signatures

of the officers or other signatories of the Sellers authorized to execute the Transaction Documents; and (iii) that attached thereto are

true and complete copies of the governing documents of the Company, including any amendments or restatements thereof, and that such governing

documents are in full force and effect;

(d) A

duly executed Employment Agreement between the Company and [***]

in substantially the form attached hereto as Exhibit B (“[***] Employment

Agreement”);

(e) Copies

of all required consents or approvals;

(f) Resignations

of the directors and officers of the Company, effective as of the Closing

Date, provided, however, that [***] will remain as the President of the Company

pursuant to the terms of the [***] Employment Agreement; and

(g) A

good standing certificate (or its equivalent) for the Company from the secretary of state or similar Governmental Authority of the jurisdiction

in which the Company is organized and each jurisdiction where the Company is required to be qualified, registered, or authorized to do

business. The term “Governmental Authority” means any federal, state, local, or foreign government or political subdivision

thereof, or any agency or instrumentality of such government or political subdivision, or any arbitrator, court, or tribunal of competent

jurisdiction.

Section 2.03 Buyer’s

Deliveries. At the Closing, Buyer shall deliver the following to Seller:

(a) The

Closing Purchase Price; and

(b) A

certificate of the Secretary (or other officer) of Buyer certifying: (i) that attached thereto are true and complete copies of all resolutions

of the board of directors of Buyer authorizing the execution, delivery, and performance of this Agreement and the Transaction Documents

to which it is a party and the consummation of the transactions contemplated hereby and thereby, and that such resolutions are in full

force and effect; and (ii) the names, titles, and signatures of the officers of Buyer authorized to sign this Agreement and the other

Transaction Documents to which it is a party.

ARTICLE III

Representations and warranties of THE SELLERS AND THE COMPANY

The Sellers, jointly and severally,

represent and warrant to Buyer that the statements contained in this ARTICLE III are true and correct as of the date hereof. For

purposes of this ARTICLE III, “Seller’s knowledge,” “knowledge of Seller,” and any

similar phrases shall mean the actual knowledge of any Seller and any director or officer of the Company, after due inquiry.

Section 3.01 Organization

and Authority of the Company. The Company is a corporation duly organized, validly existing, and in good standing under the

Laws (as defined in Section 3.05) of California. The Company and the Seller each has full power and authority to enter into this

Agreement and the other Transaction Documents to which Company and the Seller is a party, to carry out its obligations hereunder and thereunder,

and to consummate the transactions contemplated hereby and thereby. The execution and delivery by the Company and by each Seller of this

Agreement and any other Transaction Document to which the Company and such Seller is a party, the performance by the Company and each

Seller of its respective obligations hereunder and thereunder, and the consummation by the Company and each Seller of the transactions

contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of the Company and each Seller.

This Agreement and each Transaction Document to which Company and each Seller is a party constitute legal, valid, and binding obligations

of the Company and such Seller enforceable against Company and such Seller, respectively, in accordance with their respective terms,

except as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws

of general application affecting enforcement of creditors’ rights generally.

Section 3.02 Title to

Shares. All of the Shares owned by each Seller are owned of record and beneficially by each such Seller, free and clear of all Encumbrances.

Upon the transfer, assignment, and delivery of the Shares and payment therefore in accordance with the terms of this Agreement, Buyer

shall own all of the Shares, free and clear of all Encumbrances. Notwithstanding anything herein to the contrary, each Seller makes the

representation set forth in this Section 3.02 for himself only and not for any other Seller.

Section

3.03 Capitalization.

(a) The

authorized shares of the Company consist of 5,000 shares, of which 1,000 shares are issued and outstanding and constitute the Shares.

All of the Shares have been duly authorized, are validly issued, fully paid, and nonassessable.

(b) All

of the Shares were issued in compliance with applicable Laws. None of the Shares were issued in violation of any agreement or commitment

to which Seller or the Company is a party or is subject to or in violation of any preemptive or similar rights of any individual, corporation,

partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other

entity (each, a “Person”).

are no outstanding or authorized options, warrants, convertible securities, stock appreciation, phantom stock, profit participation, or

other rights, agreements, or commitments relating to the shares of the Company or obligating Seller or the Company to issue or sell any

shares of, or any other interest in, the Company. There are no voting trusts, stockholder agreements, proxies, or other agreements in

effect with respect to the voting or transfer of any of the Shares.

Section 3.04 No

Subsidiaries. The Company does not have, or have the right to acquire, an ownership interest in any other Person.

Section 3.05 No

Conflicts or Consents. The execution, delivery, and performance by the Company and Sellers of this Agreement and the other

Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will

not: (a) violate or conflict with any provision of the certificate of incorporation, by-laws, or other governing documents of any Seller

or the Company; (b) violate or conflict with any provision of any statute, law, ordinance, regulation, rule, code, treaty, or other requirement

of any Governmental Authority (collectively, “Law”) or any order, writ, judgment, injunction, decree, determination,

penalty, or award entered by or with any Governmental Authority (“Governmental Order”) applicable to any Seller or

the Company; (c) except as set forth on Schedule 3.05, require the consent, notice, or filing with or other action by any Person or require

any Permit, license, or Governmental Order; (d) violate or conflict with, result in the acceleration of, or create in any party the right

to accelerate, terminate, or modify any contract, lease, deed, mortgage, license, instrument, note, indenture, joint venture, or any other

agreement, commitment, or legally binding arrangement, whether written or oral (collectively, “Contracts”), to which

any Seller or the Company is a party or by which any Seller or the Company is bound or to which any of their respective properties and

assets are subject; or (e) result in the creation or imposition of any Encumbrance on any properties or assets of the Company or the Shares.

Section 3.06 Financial

Statements. Complete copies of: (i) the Company’s unaudited financial statements consisting of the balance sheet of the

Company as at December 31, 2024 and December 31, 2023, and the related statements of income and retained earnings, stockholders’

equity, and cash flow for the years then ended; and (ii) unaudited financial statements for each fiscal quarter of 2025 of the Company

prior to the Closing Date (the financial statements in clauses (i) and (ii) of this Section 3.06, collectively, the “Financial

Statements”) have been or will be delivered to Buyer prior to the Closing Date, to the satisfaction of Buyer. The Financial

Statements and any Audited Financial Statements delivered by the Seller prior to the Closing have been prepared in accordance with generally

accepted accounting principles in effect in the United States from time to time (“GAAP”), applied on a consistent basis

throughout the period involved. The Financial Statements and the Audited Financial Statements are based on the books and records of the

Company and fairly present the financial condition of the Company as of the respective dates they were prepared and the results of the

operations of the Company for the periods indicated. The balance sheet of the Company as of December 31, 2025 is referred to herein as

the “Balance Sheet” and the date thereof as the “Balance Sheet Date.” The Company maintains a standard

system of accounting established and administered in accordance with GAAP.

Section 3.07 Undisclosed

Liabilities. The Company has no liabilities, obligations, or commitments of any nature whatsoever, whether asserted, known,

absolute, accrued, matured, or otherwise (collectively, “Liabilities”), except: (a) those which are adequately reflected

or reserved against in the Balance Sheet as of the Balance Sheet Date; and (b) those which have been incurred in the ordinary course of

business consistent with past practice since the Balance Sheet Date and which are not, individually or in the aggregate, material in amount.

The Company does not have any Liabilities for borrowed money or other indebtedness.

Section 3.08 Absence

of Certain Changes, Events, and Conditions. Since the Balance Sheet Date, the Company has been operating in the ordinary course

of business consistent with past practice and there has not been, with respect to the Company, any change, event, condition, or development

that is, or could reasonably be expected to be, individually or in the aggregate, to have a material adverse effect on the business, results

of operations, condition (financial or otherwise), or assets of the Company.

Section

3.09 Material Contracts.

(a) Section

3.09(a) of the Disclosure Schedules lists each Contract that is material to the Company (such Contracts, together with all Contracts

concerning the occupancy, management, or operation of any Real Property (as defined in Section 3.10(a)), being “Material

Contracts”), including the following:

(i) each

Contract of the Company involving aggregate consideration in excess of $100,000.00 and which, in each case, cannot be cancelled by the

Company without penalty or without more than 60 days’ notice;

(ii) all

Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax (as defined in Section 3.19(a)),

environmental, or other Liability of any Person;

(iii) all

Contracts relating to Intellectual Property (as defined in Section 3.11(a)), including all licenses, sublicenses, settlements,

coexistence agreements, covenants not to sue, and permissions;

(iv) except

for Contracts relating to trade payables, all Contracts relating to indebtedness (including, without limitation, guarantees) of the Company;

and

(v) all

Contracts that limit or purport to limit the ability of the Company to compete in any line of business or with any Person or in any geographic

area or during any period of time.

(b) Each

Material Contract is valid and binding on the Company in accordance with its terms and is in full force and effect. None of the Company

or, to Seller’s knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default

under), or has provided or received any notice of any intention to terminate, any Material Contract. Complete and correct copies of each

Material Contract (including all modifications, amendments, and supplements thereto and waivers thereunder) have been made available to

Buyer.

Section

3.10 Real Property; Title to Assets; Condition and Sufficiency of Assets.

(a) Section

3.10(a) of the Disclosure Schedules lists all real property in which the Company has an ownership or leasehold (or subleasehold) interest

(together with all buildings, structures, and improvements located thereon, the “Real Property”), including: (i) the

street address of each parcel of Real Property; (ii) for Real Property that is leased or subleased by the Company, the landlord under

the lease, the rental amount currently being paid, and the expiration of the term of such lease or sublease, and any termination or renewal

rights of any party to the lease; and (iii) the current use of each parcel of Real Property. Seller has delivered or made available to

Buyer true, correct, and complete copies of all Contracts, title insurance policies, and surveys relating to the Real Property.

(b) The

Company has good and valid (and, in the case of owned Real Property, good and indefeasible fee simple) title to, or a valid leasehold

interest in, all Real Property and personal property and other assets used in the operation of the business of the Company or reflected

in the Financial Statements, or used in the operation of the business of the Company and acquired after the Balance Sheet Date (other

than properties and assets sold or otherwise disposed of in the ordinary course of business consistent with past practice since the Balance

Sheet Date). All Real Property and such personal property and other assets (including leasehold interests) are free and clear of Encumbrances

except for those items set forth in Section 3.10(b) of the Disclosure Schedules.

Company is not a sublessor or grantor under any sublease or other instrument granting to any other Person any right to possess, lease,

occupy, or use any leased Real Property. The use of the Real Property in the conduct of the Company’s business does not violate

in any material respect any Law, covenant, condition, restriction, easement, license, permit, or Contract and no material improvements

constituting a part of the Real Property encroach on real property owned or leased by a Person other than the Company.

(d) The

buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property currently

owned or leased by the Company are structurally sound, are in good operating condition and repair, and are adequate for the uses to which

they are being put, and none of such buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items

of tangible personal property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material

in nature or cost. The buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible

personal property currently owned or leased by the Company, together with all other properties and assets of the Company, are sufficient

for the continued conduct of the Company’s business after the Closing in substantially the same manner as conducted prior to the

Closing and constitute all of the rights, property and assets necessary to conduct the business of the Company as currently conducted.

Section

3.11 Intellectual Property.

(a) The

term “Intellectual Property” means any and all of the following in any jurisdiction throughout the world: (i) issued

patents and patent applications; (ii) trademarks, service marks, trade names, and other similar indicia of source or origin, together

with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of,

any of the foregoing; (iii) copyrights, including all applications and registrations; (iv) trade secrets, know-how, inventions (whether

or not patentable), technology, and other confidential and proprietary information and all rights therein; (v) internet domain names and

social media accounts and pages; and (vi) other intellectual or industrial property and related proprietary rights, interests, and protections.

(b) Section

3.11(b) of the Disclosure Schedules lists all issued patents, registered trademarks, domain names and copyrights, and pending applications

for any of the foregoing and all material unregistered Intellectual Property that are owned by the Company (the “Company IP Registrations”).

The Company owns or has the valid and enforceable right to use all Intellectual Property used in or necessary for the conduct of the Company’s

business as currently conducted (the “Company Intellectual Property”), free and clear of all Encumbrances. All of the

Company Intellectual Property is valid and enforceable, and all Company IP Registrations are subsisting and in full force and effect.

The Company has taken all necessary steps to maintain and enforce the Company Intellectual Property.

conduct of the Company’s business, as currently and formerly conducted, has not infringed, misappropriated, or otherwise violated

the Intellectual Property or other rights of any Person. No Person has infringed, misappropriated, or otherwise violated any Company Intellectual

Property.

Section 3.12 Material

Customers and Suppliers.

(a) Section

3.12(a) of the Disclosure Schedules sets forth each customer who has paid aggregate consideration to the Company for goods or services

rendered in an amount greater than or equal to $100,000.00 for each of the two (2) most recent fiscal years (collectively, the “Material

Customers”). The Company has not received any notice, and has no reason to believe, that any of its Material Customers has ceased,

or intends to cease after the Closing, to purchase or use its goods or services or to otherwise terminate or materially reduce its relationship

with the Company.

(b) Section

3.12(b) of the Disclosure Schedules sets forth each supplier to whom the Company has paid consideration for goods or services rendered

in an amount greater than or equal to $100,000.00 for each of the two (2) most recent fiscal years (collectively, the “Material

Suppliers”). The Company has not received any notice, and has no reason to believe, that any of its Material Suppliers has ceased,

or intends to cease, to supply goods or services to the Company or to otherwise terminate or materially reduce its relationship with the

Company.

Section 3.13 Insurance.

Section 3.13 of the Disclosure Schedules sets forth a true and complete list of all current policies or binders of insurance maintained

by Seller or its Affiliates (including the Company) and relating to the assets, business, operations, employees, officers, and directors

of the Company (collectively, the “Insurance Policies”). Such Insurance Policies: (a) are in full force and effect;

(b) are valid and binding in accordance with their terms; (c) are provided by carriers who are financially solvent; and (d) have not been

subject to any lapse in coverage. Neither Seller nor any of its Affiliates (including the Company) has received any written notice of

cancellation of, premium increase with respect to, or alteration of coverage under, any of such Insurance Policies. All premiums due on

such Insurance Policies have been paid. None of Seller or any of its Affiliates (including the Company) is in default under, or has otherwise

failed to comply with, in any material respect, any provision contained in any Insurance Policy. The Insurance Policies are of the type

and in the amounts customarily carried by Persons conducting a business similar to the Company and are sufficient for compliance with

all applicable Laws and Contracts to which the Company is a party or by which it is bound. For purposes of this Agreement: (x) “Affiliate”

of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is

under common control with, such Person; and (y) the term “control” (including the terms “controlled by”

and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction

of the management and policies of a Person, whether through the ownership of voting securities or other ownership interests, by contract,

or otherwise.

Section 3.14 Legal

Proceedings; Governmental Orders.

(a) Except

as set forth on Section 3.14 of the Disclosure Schedules, there are no claims, actions, causes of action, demands, lawsuits, arbitrations,

inquiries, audits, notices of violation, proceedings, litigation, citations, summons, subpoenas, or investigations of any nature, whether

at law or in equity (collectively, “Actions”) pending or, to Seller’s knowledge, threatened against or by the

Company, Seller, or any Affiliate of Seller: (i) relating to or affecting the Company or any of the Company’s properties or assets;

or (ii) that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement. To Seller’s

knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

(b) There

are no outstanding, and the Company is in compliance with all, Governmental Orders against, relating to, or affecting the Company or any

of its properties or assets.

Section 3.15 Compliance

with Laws; Permits.

(a) The

Company has complied, and is now complying, with all Laws applicable to it or its business, properties, or assets.

(b) All

permits, licenses, franchises, approvals, registrations, certificates, variances, and similar rights obtained, or required to be obtained,

from Governmental Authorities (collectively, “Permits”) in order for the Company to conduct its business, including,

without limitation, owning or operating any of the Real Property, have been obtained and are valid and in full force and effect. Section

3.15(b) of the Disclosure Schedules lists all current Permits issued to the Company and, to Seller’s knowledge, no event has

occurred that would reasonably be expected to result in the revocation or lapse of any such Permit.

Section

3.16 Environmental Matters.

(a) The

terms: (i) “Environmental Laws” means all Laws, now or hereafter in effect, in each case as amended or supplemented

from time to time, relating to the regulation and protection of human health, safety, the environment, and natural resources, including

any federal, state, or local transfer of ownership notification or approval statutes; and (ii) “Hazardous Substances”

means: (A) “hazardous materials,” “hazardous wastes,” “hazardous substances,” “industrial wastes,”

or “toxic pollutants,” as such terms are defined under any Environmental Laws; (B) any other hazardous or radioactive substance,

contaminant, or waste; and (C) any other substance with respect to which any Environmental Law or Governmental Authority requires environmental

investigation, regulation, monitoring, or remediation.

(b) The

Company has complied, and is now complying, with all Environmental Laws. Neither the Company nor Seller has received notice from any Person

that the Company, its business or assets, or any real property currently or formerly owned, leased, or used by the Company is or may be

in violation of any Environmental Law or any applicable Law regarding Hazardous Substances.

the knowledge of the Sellers, there has not been any spill, leak, discharge, injection, escape, leaching, dumping, disposal, or release

of any kind of any Hazardous Substances in violation of any Environmental Law: (i) with respect to the business or assets of the Company;

or (ii) at, from, in, adjacent to, or on any real property currently or formerly owned, leased, or used by the Company. There are no Hazardous

Substances in, on, about, or migrating to any real property currently or formerly owned, leased, or used by the Company, and such real

property is not affected in any way by any Hazardous Substances.

Section

3.17 Employee Benefit Matters.

Section 3.17(a)

of the Disclosure Schedules contains a true and complete list of each “employee benefit plan” as defined in Section 3(3)

of the Employee Retirement Income Security Act of 1974 (as amended, and including the regulations thereunder, “ERISA”),

whether or not written and whether or not subject to ERISA, and each supplemental retirement, compensation, employment, consulting, profit-sharing,

deferred compensation, incentive, bonus, equity, change in control, retention, severance, salary continuation, and other similar agreement,

plan, policy, program, practice, or arrangement which is or has been established, maintained, sponsored, or contributed to by the Company

or under which the Company has or may have any Liability (each, a “Benefit Plan”).

(a) For

each Benefit Plan, Seller has made available to Buyer accurate, current, and complete copies of each of the following: (i) the plan document

with all amendments, or if not reduced to writing, a written summary of all material plan terms; (ii) any written contracts and arrangements

related to such Benefit Plan, including trust agreements or other funding arrangements, and insurance policies, certificates, and contracts;

(iii) in the case of a Benefit Plan intended to be qualified under Section 401(a) of the Code, the most recent favorable determination

or national office approval letter issued by the Internal Revenue Service and any legal opinions issued thereafter with respect to the

Benefit Plan’s continued qualification; (iv) the most recent Form 5500 filed with respect to such Benefit Plan; and (v) any material

notices, audits, inquiries, or other correspondence from, or filings with, any Governmental Authority relating to the Benefit Plan.

(b) Each

Benefit Plan and related trust has been established, administered, and maintained in accordance with its terms and in compliance with

all applicable Laws (including ERISA and the Code). Nothing has occurred with respect to any Benefit Plan that has subjected or could

reasonably be expected to subject the Company or, with respect to any period on or after the Closing Date, Buyer or any of its Affiliates,

to a civil action, penalty, surcharge, or Tax under applicable Law or which would jeopardize the previously-determined qualified status

of any Benefit Plan. All benefits, contributions, and premiums relating to each Benefit Plan have been timely paid in accordance with

the terms of such Benefit Plan and all applicable Laws and accounting principles. Benefits accrued under any unfunded Benefit Plan have

been paid, accrued, or adequately reserved for to the extent required by GAAP.

Company has not incurred and does not reasonably expect to incur: (i) any Liability under Title I or Title IV of ERISA, any related provisions

of the Code, or applicable Law relating to any Benefit Plan; or (ii) any Liability to the Pension Benefit Guaranty Corporation. No complete

or partial termination of any Benefit Plan has occurred or is expected to occur.

(d) The

Company has not now or at any time since its inception contributed to, sponsored, or maintained: (i) any “multiemployer plan”

as defined in Section 3(37) of ERISA; (ii) any “single-employer plan” as defined in Section 4001(a)(15) of ERISA; (iii) any

“multiple employer plan” as defined in Section 413(c) of the Code; (iv) any “multiple employer welfare arrangement”

as defined in Section 3(40) of ERISA; (v) a leveraged employee stock ownership plan described in Section 4975(e)(7) of the Code; or (vi)

any other Benefit Plan subject to required minimum funding requirements.

(e) Other

than as required under Sections 601 to 608 of ERISA or other applicable Law, no Benefit Plan provides post-termination or retiree welfare

benefits to any individual for any reason.

(f) Neither

the execution of this Agreement nor any of the transactions contemplated by this Agreement will, either alone or in combination with any

other event: (i) entitle any current or former director, officer, employee, independent contractor, or consultant of the Company to any

severance pay, increase in severance pay, or other payment; (ii) accelerate the time of payment, funding, or vesting, or increase the

amount of compensation (including stock-based compensation) due to any such individual; (iii) limit or restrict the right of the Company

to amend or terminate any Benefit Plan; (iv) increase the amount payable under any Benefit Plan; (v) result in any “excess parachute

payments” within the meaning of Section 280G(b) of the Code; or (vi) require a “gross-up” or other payment to any “disqualified

individual” within the meaning of Section 280G(c) of the Code.

Section

3.18 Employment Matters.

(a) Section

3.18(a) of the Disclosure Schedules lists: (i) all employees, independent contractors, and consultants of the Company; and (ii) for

each individual described in clause (i), (A) the individual’s title or position, hire date, and compensation, (B) any Contracts

entered into between the Company and such individual, and (C) the fringe benefits provided to each such individual. All compensation payable

to all employees, independent contractors, or consultants of the Company for services performed on or prior to the Closing Date have been

paid in full.

(b) The

Company is not, and has not been, a party to or bound by any collective bargaining agreement or other Contract with a union or similar

labor organization (collectively, “Union”), and no Union has represented or purported to represent any employee of

the Company. There has never been, nor has there been any threat of, any strike, work stoppage, slowdown, picketing, or other similar

labor disruption or dispute affecting the Company or any of its employees.

Company is and has been in compliance with: (i) all applicable employment Laws and agreements regarding

hiring, employment, termination of employment, plant closings and mass layoffs, employment discrimination, harassment, retaliation, and

reasonable accommodation, leaves of absence, terms and conditions of employment, wages and hours of work, employee classification, employee

health and safety, engagement and classification of independent contractors, payroll taxes, and immigration with respect to all employees,

independent contractors, and contingent workers; and (ii) all applicable Laws relating to

the relations between it and any labor organization, trade union, work council, or other body representing employees of the Company.

Section

3.19 Taxes.

(a) All

returns, declarations, reports, information returns and statements, and other documents relating to Taxes (including amended returns and

claims for refund) (collectively, “Tax Returns”) required to be filed by the Company on or before the Closing Date

have been timely filed. Such Tax Returns are true, correct, and complete in all respects. All Taxes due and owing by the Company (whether

or not shown on any Tax Return) have been timely paid. No extensions or waivers of statutes of limitations have been given or requested

with respect to any Taxes of the Company. Seller has delivered to Buyer copies of all Tax Returns and examination reports of the Company

and statements of deficiencies assessed against, or agreed to by, the Company, for all Tax periods ending after December 31, 2021. The

term “Taxes” means all federal, state, local, foreign, and other income, gross receipts, sales, use, production, ad

valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment,

estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits,

customs, duties, or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest, additions, or penalties

with respect thereto.

(b) The

Company has not been a member of an affiliated, combined, consolidated, or unitary Tax group for Tax purposes. The Company has no Liability

for Taxes of any Person (other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision of state,

local, or foreign Law), as transferee or successor, by contract, or otherwise.

are no liens for Taxes (other than for current Taxes not yet due and payable) upon the assets of the Company.

(d) Seller

is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2. The Company is not, nor has it been,

a United States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period in Section

897(c)(1)(a) of the Code.

Section 3.20 Books

and Records. The minute books and share record and transfer books of the Company, all of which are in the possession of the

Company and have been made available to Buyer, are complete and correct.

Section 3.21 Related

Party Transactions. Except as set forth on Section 3.20 of the Disclosure Schedules, there are no Contracts or other

arrangements involving the Company in which Seller, its Affiliates, or any of its or their respective directors, officers, or employees

(or any immediate family members thereof) is a party, has a financial interest, or otherwise owns or leases any material asset, property,

or right which is used by the Company.

Section 3.22 Brokers.

Except as set forth on Section 3.22 of the Disclosure Schedules, no broker, finder, or investment banker is entitled to any brokerage,

finder’s, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction

Document based upon arrangements made by or on behalf of Seller.

Section 3.23 Full

Disclosure. No representation or warranty by Seller in this Agreement and no statement contained in the Disclosure Schedules

to this Agreement or any certificate or other document furnished or to be furnished to Buyer pursuant to this Agreement contains any untrue

statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances

in which they are made, not misleading.

ARTICLE IV

Representations and warranties of buyer

Buyer represents and warrants

to Sellers that the statements contained in this Article V are true and correct as of the date hereof. For purposes of this ARTICLE

IV, “Buyer’s knowledge,” “knowledge of Buyer,” and any similar phrases shall mean the

actual or constructive knowledge of any director or officer of Buyer, after due inquiry.

Section 4.01 Organization

and Authority of Buyer. Buyer is a corporation duly organized, validly existing, and in good standing under the Laws of the

state of Nevada. Buyer has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which

Buyer is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby.

The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by

Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and thereby have

been duly authorized by all requisite corporate action on the part of Buyer. This Agreement and each Transaction Document constitute legal,

valid, and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms.

Section 4.02 No

Conflicts; Consents. The execution, delivery, and performance by Buyer of this Agreement and the other Transaction Documents

to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or

conflict with any provision of the Articles of Incorporation, by-laws, or other governing documents of Buyer; (b) violate or conflict

with any provision of any Law or Governmental Order applicable to Buyer; or (c) require the consent, notice, declaration, or filing with

or other action by any Person or require any Permit, license, or Governmental Order.

Section 4.03 Investment

Purpose. Buyer is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for offer

or sale in connection with, any distribution thereof or any other security related thereto within the meaning of the Securities Act of

1933, as amended (the “Securities Act”). Buyer acknowledges that Seller has not registered the offer and sale of the

Shares under the Securities Act or any state securities laws, and that the Shares may not be pledged, transferred, sold, offered for sale,

hypothecated, or otherwise disposed of except pursuant to the registration provisions of the Securities Act or pursuant to an applicable

exemption therefrom and subject to state securities laws and regulations, as applicable.

Section 4.04 Brokers.

Except for Joseph Harmon of DAUM Commercial Real Estate, no broker, finder, or investment banker is entitled to any brokerage, finder’s,

or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based

upon arrangements made by or on behalf of Buyer.

ARTICLE V

Covenants

Section 5.01 Confidentiality.

From and after the Closing, the Sellers shall, and shall cause their respective Affiliates and its and their respective directors, officers,

employees, consultants, counsel, accountants, and other agents (collectively, “Representatives”) to, hold in confidence

any and all information, in any form, concerning the Company, except to the extent that the Sellers can show that such information: (a)

is generally available to and known by the public through no fault of the Sellers, any of their respective Affiliates, or their respective

Representatives; or (b) is lawfully acquired by Sellers, any of their respective Affiliates, or their respective Representatives from

and after the Closing from sources which are not prohibited from disclosing such information by any obligation. If Sellers or any of their

respective Affiliates or their respective Representatives are compelled to disclose any information by Governmental Order or Law, Sellers

shall promptly notify Buyer in writing and shall disclose only that portion of such information which is legally required to be disclosed;

provided, however, Sellers shall use reasonable best efforts to obtain as promptly as possible an appropriate protective order

or other reasonable assurance that confidential treatment will be accorded such information.

Section 5.02 Non-Competition;

Non-Solicitation.

(a) For

a period of three (3) years commencing on the Closing Date (the “Restricted Period”), Sellers will not, and will not

permit any of their respective Affiliates to, directly or indirectly: (i) engage in or assist others in engaging in the information technology

packaging business (the “Restricted Business”) in the State of California (the “Territory”); (ii)

have an interest in any Person that engages, directly or indirectly, in the Restricted Business in the Territory in any capacity, including

as a partner, stockholder, director, officer, member, manager, employee, contractor, principal, agent, volunteer, intern, advisor, or

consultant; or (iii) intentionally interfere in any material respect with the business relationships (whether formed prior to or after

the date of this Agreement) between the Company and customers or suppliers of the Company. Notwithstanding the foregoing, Sellers may

own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if such Seller

is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own two percent

(2)% or more of any class of securities of such Person.

(b) During

the Restricted Period, Sellers will not, and will not permit any of their respective Affiliates to, directly or indirectly, hire or solicit

any current or former employee of the Company or encourage any employee to leave the Company’s employment, except pursuant to a

general solicitation which is not directed specifically to any such employees; provided, however, nothing in this Section 5.02(b)

shall prevent any Seller or any of their respective Affiliates from hiring: (i) any employee terminated by the Company; or (ii) after

one hundred eighty (180) days from the date of resignation, any employee that has resigned from the Company.

acknowledge that a breach or threatened breach of this Section 5.02 would give rise to irreparable harm to Buyer, for which monetary

damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by any Seller of any such

obligations, Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach,

be entitled to equitable relief, including a temporary restraining order, an injunction, or specific performance (without any requirement

to post bond).

(d) Sellers

acknowledge that the restrictions contained in this Section 5.02 are reasonable and necessary to protect the legitimate interests

of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated by this

Agreement. In the event that any covenant contained in this Section 5.02 should ever be adjudicated to exceed the time, geographic,

product or service, or other limitations permitted by applicable Law in any jurisdiction or any Governmental Order, then any court is

expressly empowered to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic,

product or service, or other limitations permitted by applicable Law or such Governmental Order. The covenants contained in this Section

5.02 and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such

covenant or provision as written will not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such

invalidity or unenforceability in any jurisdiction will not invalidate or render unenforceable such covenant or provision in any other

jurisdiction.

Section

5.03 Audit. Sellers have agreed to cause the Company to cooperate with the Buyer and the Buyer’s

auditors in conducting an audit of the Company’s financial statements for the fiscal years ending December 31, 2024 and December

31, 2025 (the “Audit” and such audited financial statements referred to as

the “Audited Financial Statements”). In connection therewith, the Sellers

agreed to make all of its books and records of the Company available to the Buyer and its auditor and to make its employees and outside

accountants available to the Buyer and its auditor in connection therewith.

Section 5.04 Further

Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute

and deliver such additional documents and instruments and take such further actions as may be reasonably required to carry out the provisions

hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents.

ARTICLE VI

Tax matters

Section 6.01 Tax

Covenants.

(a) Without

the prior written consent of Buyer, Sellers will not, to the extent it may affect or relate to the Company: (i) make, change, or rescind

any Tax election; (ii) amend any Tax Return; (iii) take any position on any Tax Return; or (iv) take any action, omit to take any action,

or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer or the

Company, in respect of any taxable period that begins after the Closing Date or, in respect of any taxable period that begins before and

ends after the Closing Date (each such period, a “Straddle Period”), the portion of any Straddle Period beginning after

the Closing Date.

(b) All

transfer, documentary, sales, use, stamp, registration, value added, and other such Taxes and fees (including any penalties and interest)

incurred in connection with this Agreement and the other Transaction Documents shall be borne and paid by Sellers when due. Sellers shall,

at their own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with

respect thereto as necessary).

shall prepare, or cause to be prepared, all Tax Returns required to be filed by the Company after the Closing Date with respect to any

taxable period or portion thereof ending on or before the Closing Date and all Straddle Period Tax Returns. Any such Tax Return shall

be prepared in a manner consistent with past practice (unless otherwise required by Law) and without a change of any election or any accounting

method.

Section 6.02 Straddle

Period. In the case of Taxes that are payable with respect to a Straddle Period, the portion of any such Taxes that are allocated

to Pre-Closing Tax Periods (as defined in Section 6.04) for purposes of this Agreement is: (a) in the case of Taxes: (i) based

upon, or related to, income, receipts, profits, wages, capital, or net worth; (ii) imposed in connection with the sale, transfer, or assignment

of property; or (iii) required to be withheld, the amount of Taxes which would be payable if the taxable year ended with the Closing Date;

and (b) in the case of other Taxes, the amount of such Taxes for the entire period multiplied by a fraction, the numerator of which is

the number of days in the period ending on the Closing Date and the denominator of which is the number of days in the entire period.

Section 6.03 Termination

of Existing Tax Sharing Agreements. Any and all existing Tax sharing agreements (whether written or not) binding upon the Company

shall be terminated as of the Closing Date. After such date neither the Company, Sellers, nor any of Sellers’ Affiliates and their

respective Representatives shall have any further rights or liabilities thereunder.

Section 6.04 Tax

Indemnification. The Sellers shall indemnify the Buyer and each Buyer Indemnitee (as defined in Section 7.01) and hold

them harmless from and against (a) any loss, damage, liability, deficiency, Action, judgment, interest, award, penalty, fine, cost or

expense of whatever kind (collectively, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification

under this Agreement, “Losses”) attributable to any breach of or inaccuracy in any representation or warranty made

in Section 3.19; (b) any Loss attributable to any breach or violation of, or failure to fully perform, any covenant, agreement,

undertaking, or obligation in ARTICLE VI; (c) all Taxes of the Company or relating to the business of the Company for all Pre-Closing

Tax Periods (as defined below); (d) all Taxes of any member of an affiliated, consolidated, combined, or unitary group of which the Company

(or any predecessor of the Company) is or was a member on or prior to the Closing Date by reason of a liability under Treasury Regulation

Section 1.1502-6 or any comparable provisions of foreign, state, or local Law; and (e) any and all Taxes of any Person imposed on the

Company arising under the principles of transferee or successor liability or by contract, relating to an event or transaction occurring

before the Closing Date. In each of the above cases, together with any out-of-pocket fees and expenses (including attorneys’ and

accountants’ fees) incurred in connection therewith, the Sellers shall reimburse Buyer for any Taxes of the Company that are the

responsibility of Sellers pursuant to this Section 6.04 within ten business days after payment of such Taxes by Buyer or the Company.

The term “Pre-Closing Tax Period” means any taxable period ending on or before the Closing Date and, with respect to

any taxable period beginning before and ending after the Closing Date, the portion of such taxable period ending on and including the

Closing Date.

Section

6.05 Cooperation and Exchange of Information. The Sellers and Buyer shall provide each other with such cooperation and information

as either of them reasonably may request of the other in filing any Tax Return pursuant to this ARTICLE VI or in connection with

any proceeding in respect of Taxes of the Company, including providing copies of relevant Tax Returns and accompanying documents. Each

of Sellers and Buyer shall retain all Tax Returns and other documents in its possession relating to Tax matters of the Company for any

Pre-Closing Tax Period (collectively, “Tax Records”) until the expiration of the statute of limitations of the taxable

periods to which such Tax Records relate.

Section 6.06 Survival.

Notwithstanding anything in this Agreement to the contrary, the provisions of Section 3.19 and this ARTICLE VI shall survive

for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation, or extension thereof) plus sixty

(60) days.

Section

6.07 Further Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates

to, execute and deliver such additional documents and instruments and take such further actions as may be reasonably required to carry

out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents. For

the avoidance of doubt, Sellers shall remain available to the Buyer for a period of six (6) months after the Closing Date to provide reasonable

transition services to the Buyer, including assistance with the preparation and facilitation of any required financial audits, operational

knowledge transfer, and other reasonable matters necessary for post-Closing transition.

ARTICLE VII

Indemnification

Section 7.01 Indemnification

by Seller. Subject to the other terms and conditions of this ARTICLE VII, each Seller shall, jointly and severally (except

that with respect to the representation set forth in Section 3.02, each Seller shall be liable on a several, and not joint basis, only),

indemnify and defend each of Buyer and its Affiliates (including the Company) and their respective Representatives (collectively, the

“Buyer Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each

of them for, any and all Losses incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, arising out of, with respect

to, or by reason of:

(a) any

inaccuracy in or breach of any of the representations or warranties of Sellers or the Company contained in this Agreement or the other

Transaction Documents;

(b) any

breach or non-fulfillment of any covenant, agreement, or obligation to be performed by the Sellers or by the Company (prior to the Closing)

pursuant to this Agreement or the other Transaction Documents;

Losses arising out of or relating to any employee of the Business being, as of the Closing Date, ineligible or unauthorized to work in

the United States, including due to improper, incomplete, or inaccurate I-9 documentation or any other legal or regulatory reason, and

any corrective action to be taken by Buyer with respect to such employee, including termination, replacement, or remediation, together

with any direct costs associated therewith, such as government fines or penalties, recruiter or placement agency fees, wage adjustments,

training costs, and other reasonable and documented out-of-pocket expenses; or

(d) any

claim with respect to the [***] litigation claim disclosed on Section 3.14 of the Disclosure Schedules.

Section 7.02 Indemnification

by Buyer. Subject to the other terms and conditions of this ARTICLE VII, Buyer shall indemnify and defend each of the

Sellers and their respective Affiliates and their respective Representatives (collectively, the “Seller Indemnitees”)

against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred

or sustained by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to, or by reason of:

(a) any

inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or the other Transaction Documents;

(b) any

breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Buyer pursuant to this Agreement.

Section 7.03 Indemnification

Procedures. Whenever any claim shall arise for indemnification under this Agreement,

the indemnified party (“Indemnified Party”) shall promptly provide written notice of such claim to the indemnifying

party (the “Indemnifying Party”). Such notice by the Indemnified Party shall: (a) describe the claim in reasonable

detail; (b) include copies of all material written evidence thereof; and (c) indicate the estimated amount, if reasonably practicable,

of the Loss that has been or may be sustained by the Indemnified Party. In connection with any claim giving rise to indemnity hereunder

resulting from or arising out of any Action by a Person who is not a party to this Agreement, the Indemnifying Party, at its sole cost

and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory

to the Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and

at its own cost and expense, subject to the Indemnifying Party’s right to control the defense thereof. If the Indemnifying Party

does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in

such manner as it may deem appropriate, including settling such Action, after giving notice of it to the Indemnifying Party, on such terms

as the Indemnified Party may deem appropriate, and no action taken by the Indemnified Party in accordance with such defense and settlement

shall relieve the Indemnifying Party of its indemnification obligations herein provided with respect to any damages resulting therefrom.

Seller and Buyer shall cooperate with each other in all reasonable respects in connection with the defense of any claim, including: (i)

making available records relating to such claim; and (ii) furnishing, without expense (other than reimbursement of actual out-of-pocket

expenses) to the defending party, management employees of the Indemnified Party as may be reasonably necessary for the preparation of

the defense of such claim. Notwithstanding the foregoing, an Indemnifying Party shall not settle any Action without the Indemnified Party’s

prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed).

Section

7.04 Limitations. Notwithstanding anything herein to the contrary, no Indemnifying Party shall be liable under this Agreement

for any punitive, consequential, special, incidental or indirect damages, including, without limitation, lost profits, lost

revenues, lost opportunity or loss of business; provided, however, that this limitation shall not apply to (a) damages arising from

third-party claims for which indemnification is sought, or (b) damages resulting from the Indemnifying Party’s gross

negligence or willful misconduct. In the event of any losses or damages, or alleged losses or damages, giving rise to

indemnification or a claim for indemnification under this Agreement, the Indemnified Party hereby covenants and agrees to use

commercially reasonable efforts (not requiring material expense, litigation, or diversion of

significant internal resources) to mitigate such loss or damages, and the resulting indemnified losses or damages. The amount

of an Indemnified Party’s indemnification obligations hereunder will be offset by the amount of any insurance proceeds

actually recovered from insurers with respect to such losses or damages (net of any deductibles, co-payments or out-of-pocket costs

of collection and any increase in insurance premiums attributable to such recovery). The Indemnifying Party shall not be liable to

the Indemnified Party for indemnification under Section 7.01(a) or Section 7.02(a), as the case may be, until the aggregate

amount of all Losses in respect of indemnification under such applicable section exceeds $25,000 (the

“Deductible”), in which event the Indemnifying Party shall only be required to pay or be liable for Losses in

excess of the Deductible.

Section 7.05 Survival.

Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein and all related

rights to indemnification shall survive the Closing for a period of 12 (twelve) months; provided, however, the representations

and warranties in Section 3.01, Section 3.02, Section 3.03, Section 3.04, Section 3.05, Section

3.10(b), Section 3.19, Section 3.22, Section 4.01, Section 4.02 and Section 4.04 shall survive

indefinitely. Subject to ARTICLE VI, all covenants and agreements of the parties hereto contained herein shall survive the Closing

indefinitely unless another period is explicitly specified herein. Notwithstanding the foregoing, any claims which are timely asserted

in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period

will not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally

resolved.

Section 7.06 Tax

Claims. Notwithstanding any other provision of this Agreement, the control of any claim, assertion, event, or proceeding in

respect of Taxes of the Company (including, but not limited to, any such claim in respect of a breach of the representations and warranties

in Section 3.19 hereof or any breach or violation of or failure to fully perform any covenant, agreement, undertaking, or obligation

in ARTICLE VI) shall be governed exclusively by ARTICLE VI hereof.

Section

7.07 Cumulative Remedies. The rights and remedies provided for in this ARTICLE VII (and in ARTICLE VI) are

cumulative and are in addition to and not in substitution for any other rights and remedies available at Law or in equity or otherwise.

ARTICLE VIII

Miscellaneous

Section 8.01 Expenses.

All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party

incurring such costs and expenses.

Section 8.02 Notices.

All notices, claims, demands, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when

delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight

courier (receipt requested); (c) on the date sent by email of a PDF document (with confirmation of transmission) if sent during normal

business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third

day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid, if sent to the respective parties

at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section

8.02):

If to Sellers:

[***]

Email: [***]

Attention: [***]

[***]

Email: [***]

Attention: [***]

with a copy (which will not constitute notice) to:

[***]

[***]Email: [***]

Attention: Louis Brilleman, Esq.

If to Buyer:

PMGC Holdings Inc.

120 Newport Center Drive

Newport Beach, CA 92660

Email: [***]

Attention: Graydon Bensler

with a copy (which will not constitute notice) to:

Sichenzia Ross Ference Carmel LLP

1185 Avenue of the Americas, 31st Floor

New York, NY 10036

Email: [***]

Attention: Carl Kleidman, Esq.

Section 8.03 Interpretation;

Headings. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation

against the party drafting an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only

and will not affect the interpretation of this Agreement.

Section 8.04 Severability.

If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or

unenforceability will not affect any other term or provision of this Agreement.

Section 8.05 Entire

Agreement. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this

Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings

and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in

the body of this Agreement and those in the other Transaction Documents, and the Disclosure Schedules (other than an exception expressly

set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

Section 8.06 Successors

and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective

successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the

other party, which consent will not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its

obligations hereunder.

Section 8.07 Amendment

and Modification; Waiver. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by

each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and

signed by the party so waiving. No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall

operate or be construed as a waiver thereof. No single or partial exercise of any right or remedy hereunder shall preclude any other or

further exercise thereof or the exercise of any other right or remedy.

Section

8.08 Governing Law; Submission to Jurisdiction.

This Agreement shall be governed

by and construed in accordance with the internal laws of the State of California, without giving effect to any choice or conflict of law

provision or rule (whether of the State of California or any other jurisdiction). Any legal suit, action, proceeding, or dispute arising

out of or related to this Agreement, the other Transaction Documents, or the transactions contemplated hereby or thereby may be instituted

in the federal courts of the United States of America or the courts of the State of California, in each case located in the county of

Orange, and each party hereto irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or

dispute.

Section 8.09 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to

be one and the same agreement. A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed

to have the same legal effect as delivery of an original signed copy of this Agreement.

[signature page follows]

IN WITNESS WHEREOF,

the parties hereto have caused this Stock Purchase Agreement to be executed as of the date first written above.

/s/

[***]

/s/

[***]

A&B Aerospace, Inc.

By:

/s/

[***]

President and Chief Executive Officer

PMGC Holdings Inc.

By:

/s/ Graydon Bensler

Graydon Bensler

Chief Executive Officer

EX-99.1 — UNAUDITED FINANCIAL STATEMENTS OF A&B AEROSPACE, INC. AS OF THE NINE MONTHS ENDED FEBRUARY 28, 2026 AND FEBRUARY 28, 2025

EX-99.1

Filename: ea029009801ex99-1.htm · Sequence: 3

Exhibit 99.1

Financial

Statements of

A&B AEROSPACE, INC.

For the three and nine months ended February

28, 2026 and 2025 (Unaudited)

A&B AEROSPACE, INC.

Balance

Sheet (unaudited)

As of:

Note

Feb 28,

2026

May 31,

2025

ASSETS

Current Assets

Cash and cash equivalents

$ 681,509

$ 558,081

Accounts receivable, net

388,048

327,788

Other receivables

4,000

2,982

Investments, at fair value

344,336

178,657

Inventories, net

502,717

469,220

Prepaid expenses and other current assets

24,231

7,187

Total Current Assets

$ 1,944,841

$ 1,543,915

Non-current Assets

Property and equipment, net

$ 463,772

$ 543,627

TOTAL ASSETS

$ 2,408,613

$ 2,087,542

LIABILITIES

Current Liabilities

Accounts payable

$ 158,645

$ 127,201

Credit card payable

5,818

301

Notes payable

108,034

161,692

Customer deposits

6,135

Accrued settlement liability

225,000

Total Current Liabilities

$ 497,497

$ 520,329

TOTAL LIABILITIES

$ 497,497

$ 520,329

COMMITMENT AND CONTINGENCIES

STOCKHOLDERS’ EQUITY

Capital stock (no par value, 100,000 shares authorized; 10,000 shares issued and outstanding

at February 28, 2026 and May 31, 2025)

$ -

Paid-in Capital

10,000

Retained Earnings

1,901,116

1,557,213

TOTAL STOCKHOLDERS’ EQUITY

$ 1,911,116

$ 1,567,213

TOTAL LIABILITIES AND EQUITY

$ 2,408,613

$ 2,087,542

The accompanying notes are an integral

part of these statements.

A&B AEROSPACE, INC.

Statement of Operations (unaudited)

Three Months Ended

February 28,

Nine Months Ended

February 28,

Note

2026

2025

2026

2025

Revenue

$ 1,274,503

$ 1,015,933

$ 3,607,404

$ 3,197,393

Cost of goods sold

(1,003,914 )

(945,867 )

(2,139,952 )

(2,568,491 )

Inventory impairments and write-offs

(695,763 )

Total cost of goods sold

(1,003,914 )

(945,867 )

(2,835,715 )

(2,568,491 )

Gross profit

$ 270,589

$ 70,066

$ 771,689

$ 628,902

Other income, net

2,694

2,082

16,167

3,922

Litigation settlement expense

(225,000 )

Other operating expenses

(146,129 )

(157,068 )

(432,968 )

(504,900 )

Income (loss) before income taxes

$ 127,154

$ (309,920 )

$ 354,888

$ (97,076 )

Income tax expense

(3,662 )

(10,985 )

Net income (loss)

$ 123,492

$ (313,582 )

$ 343,903

$ (108,061 )

Earnings (loss) per share - basic and diluted

$ 12.35

$ (31.36 )

$ 34.39

$ (10.81 )

Weighted-average shares outstanding - basic and diluted

10,000

The accompanying notes are an integral

part of these statements.

A&B AEROSPACE, INC.

Statement of Changes in Stockholders’

Equity (unaudited)

Three Months Ended

February 28,

Nine

Months Ended

February 28,

2026

2025

2026

2025

Paid-in Capital

$ 10,000

Retained Earnings

Beginning Balance

$ 1,777,624

$ 1,874,512

$ 1,557,213

$ 1,668,991

Net Income (loss)

123,492

(313,582 )

343,903

(108,061 )

Ending Balance

$ 1,901,116

$ 1,560,930

$ 1,901,116

$ 1,560,930

Total Equity

$ 1,911,116

$ 1,570,930

$ 1,911,116

$ 1,570,930

The accompanying notes are an integral

part of these statements.

A&B AEROSPACE, INC.

Statement of Cash Flows (unaudited)

Nine Months Ended

February 28,

2026

2025

Operating activities

Net Income (Loss)

$ 343,903

$ (108,061 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

86,342

76,540

Provision for doubtful accounts

(198,042 )

Inventory reserves and write-downs

80,182

Non-cash adjustments to PP&E and inventory, net

(130,722 )

Reversal of non-cash accrual

225,000

Changes in operating assets and liabilities:

Decrease (increase) in accounts receivable

(60,260 )

172,533

Decrease (increase) in Inventories

(33,497 )

Increase in prepaid expenses and taxes

(17,044 )

(7,500 )

Decrease (Increase) in other receivables

(1,018 )

4,549

Increase in accounts payable and credit cards

36,961

42,001

Decrease in accrued expenses

(2,747 )

Decrease in customer deposits

(6,135 )

(19,498 )

Net cash (used in) provided by operating activities

$ 349,252

$ 134,235

Investing activities

Purchases of office equipment

(6,487 )

(7,891 )

Purchases of investments

(165,679 )

Net cash provided by (used in) investing activities

$ (172,166 )

$ (7,891 )

Financing activities

(Repayments) of Newlane Finance note payable

(16,013 )

(Repayments) of INTECH note payable

(25,893 )

(25,003 )

(Repayments) of US Bank Equipment loan

(15,179 )

(14,262 )

(Repayments) of SBA PPP loan

(12,586 )

(12,490 )

Net cash provided by (used in) financing activities

$ (53,658 )

$ (67,768 )

Net increase in cash

$ 123,428

$ 58,576

Cash, beginning of period

$ 558,081

$ 595,813

Cash, end of period

$ 681,509

$ 654,389

The accompanying notes are an integral part of

these statements.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Notes to the Financial Statements

As of February 28, 2026 and

May 31, 2025, and for the three and nine months ended February 28, 2026 and 2025 (Unaudited)

NOTE 1: Nature of Operations

A&B Aerospace, Inc. (the “Company”)

is a California corporation incorporated in 1992, operating as a precision CNC machining contractor serving the aerospace, defense, and

industrial end-markets. The Company manufactures close-tolerance machined components from customer-supplied and Company-procured raw materials,

principally aluminum, stainless steel, titanium, and high-temperature alloys, using CNC turning centers, Swiss-type automatic lathes,

and vertical machining centers at its facility in Southern California. The Company operates under an AS9100D-certified quality management

system and supplies both production and aftermarket components. The Company’s fiscal year ends on May 31. These interim financial statements

cover the three and nine months ended February 28, 2026 and the comparable prior-period three and nine months ended February 28, 2025.

The nine-month stub period extends from June 1, 2025 through February 28, 2026. The stub period financial statements have been prepared

in connection with a potential sale transaction.

NOTE 2: Summary of Significant Accounting Policies

Basis of presentation

The accompanying financial statements

have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and

are presented in U.S. dollars.

In accordance with Accounting Standards

Codification (ASC) 205-40, Presentation of Financial Statements, Going Concern, management has evaluated whether there are conditions

or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within

one year after the date these financial statements are available to be issued. The Company generated net income of $123,492 for the three

months ended February 28, 2026, compared to a net loss of $313,582 for the three months ended February 28, 2025. For the nine months ended

February 28, 2026, the Company generated net income of $343,903, compared to a net loss of $108,061 for the nine months ended February

28, 2025. The Company generated positive cash flow from operations of $349,252 for the nine months ended February 28, 2026, compared to

$134,235 for the nine months ended February 28, 2025, demonstrating an ability to fund its day-to-day operations from recurring revenue.

At February 28, 2026, the Company had

net working capital (current assets less current liabilities) of approximately $1,447,000, comprising total current assets of approximately

$1,945,000 and total current liabilities of approximately $497,000, resulting in a current ratio of approximately 3.9 to 1. Cash and cash

equivalents totaled $681,509 and the Company held an additional $344,000 in marketable equity securities, providing aggregate liquid resources

of approximately $1,026,000 against total current obligations of approximately $497,000.

Management has assessed the Company’s

available cash and cash equivalents, its investment portfolio, and projected operating cash requirements for the twelve months following

the date the financial statements are available to be issued. Based on this assessment (including the Company’s positive operating cash-flow

trend and its net working capital position) management believes the Company has sufficient liquidity to meet its obligations as they become

due, and accordingly the financial statements have been prepared on a going-concern basis.

Use of estimates

The preparation of

financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported

amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the

reported amounts of revenue and expenses during the reporting period. Areas requiring significant management judgment include the

allowance for credit losses on accounts receivable, the net realizable value of inventories (including the capitalized

manufacturing-overhead component), the useful lives and recoverability of property and equipment, the valuation of investments, and

the assessment of revenue recognition for consignment arrangements under ASC 606. Actual results could differ from those

estimates.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Cash and cash equivalents

Cash and cash equivalents include cash

on hand, cash held in demand deposit accounts at federally-insured financial institutions, and highly-liquid investments with original

maturities of three months or less at the date of acquisition. Money market funds held at Morgan Stanley are classified as cash equivalents

as they are redeemable on demand at net asset value and are invested in short-term, high-credit-quality

instruments.

Concentrations of credit risk

The Company is exposed to concentrations

of credit risk on cash deposits and trade accounts receivable. The Company’s accounting policy and the quantitative disclosures regarding

these concentrations are presented in Note 4.

Investments

Investments consist of marketable equity

securities and money market instruments held in a brokerage account at Morgan Stanley. Equity securities are measured at fair value with

changes in fair value recognized in the Statement of Operations as a component of Other Income, Net, in accordance with ASC 321, Investments

- Equity Securities. Fair values are determined based on quoted market prices in active markets (Level 1 inputs, see Note 9). Dividend

income is recognized when the Company’s right to receive payment is established.

Accounts receivable and allowance for credit losses

Accounts receivable are recorded at

the invoiced amount, net of an allowance for credit losses. The Company applies the current expected credit loss (“CECL”) model

under ASC 326, Financial Instruments - Credit Losses. Under CECL, the Company estimates lifetime expected credit losses at the reporting

date based on a combination of (i) a specific-reserve analysis for invoices aged greater than 90 days or where other indicators of collectability

risk exist, and (ii) a pooled historical-loss assessment for the remainder of the portfolio. Forward-looking economic indicators (including

aerospace end-market demand, customer-specific

financial condition, and general macroeconomic conditions) are incorporated where they would materially affect the expected loss estimate.

Invoices are charged off against the allowance when management determines, after exhausting commercially reasonable collection efforts,

that recovery is not probable.

Inventories

Inventories are stated at the lower

of cost or net realizable value, with cost determined using a first-in, first-out

(FIFO) method. Inventory cost includes direct materials, direct labor, and an allocation of manufacturing overhead under a full-absorption

costing model consistent with ASC 330, Inventory. Manufacturing overhead allocated to inventory includes, among other items, indirect

production labor, manufacturing utilities, plant rent, plant insurance, tooling, plant supplies, and depreciation on manufacturing equipment.

The Company periodically reviews inventory for excess and obsolete items and records an inventory reserve when necessary.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

The Company evaluates

its inventories for excess, slow-moving, and obsolete quantities at each reporting date. A reserve is recorded against inventories

where the estimated net realizable value is less than carrying cost based on management’s analysis of (i) ageing of finished goods,

(ii) historical and forecast usage by part number, (iii) customer-specific demand visibility (including consumption against open

vendor-managed inventory (“VMI”) replenishment commitments), and (iv) the salvage or scrap value of components for which

no further demand is anticipated. Write-downs are recognized in the period in which the reduction in net realizable value is

identified and are presented within Inventory impairments and write-offs in the Statements of Operations.

Raw material, work-in-process and finished

goods are held on the Company’s premises and measured using year-end physical counts. The Company applies a standard-cost system for routine

operational measurement; standard costs are reviewed at least annually and are designed to approximate actual cost. At each reporting

date, total purchase-price, labor, and overhead variances are analyzed and any portion attributable to inventory remaining on hand is

capitalized into inventory, with the remainder recognized in Cost of Goods Sold. Through this process, inventory is presented at amounts

that approximate actual cost in accordance with ASC 330. Consigned inventory (goods held at Honeywell and MOOG VMI bin locations but over

which the Company retains control per ASC 606-10-55-2) is reported as an asset until control transfers to the customer upon the customer’s

consumption of the inventory.

Property and Equipment

Property and equipment are stated at

cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets:

machinery and equipment, seven years; computer software (numerical control programming), three years; vehicles, five years; office equipment

and furniture and fixtures, five years; and leasehold improvements, the lesser of the estimated useful life of the improvement or the

remaining lease term. Maintenance and repairs are expensed as incurred; expenditures that extend an asset’s useful life or increase its

capacity are capitalized. Upon disposal, the cost and related accumulated depreciation are removed from the accounts and any resulting

gain or loss is recognized in the Statement of Operations.

The Company evaluates property and

equipment for impairment in accordance with ASC 360, Property, Plant, and Equipment, whenever events or changes in circumstances indicate

that the carrying value of an asset or asset group may not be recoverable. Recoverability is assessed by comparing the carrying amount

of the asset (or asset group) to the future undiscounted net cash flows expected to be generated by the asset. If the carrying amount

is not recoverable, an impairment loss is measured as the excess of the carrying amount over the asset’s fair value.

Revenue Recognition

The Company recognizes revenue in accordance

with ASC 606, Revenue from Contracts with Customers, when control of the promised goods transfers to the customer, in an amount that reflects

the consideration to which the Company expects to be entitled in exchange for those goods. See Note 3 for a detailed description of the

Company’s revenue policies.

Segment reporting

The Company operates as a single reportable

segment under ASC 280, Segment Reporting. The Company’s chief operating decision-maker, who is its president, reviews financial information

on a consolidated basis for purposes of allocating resources and assessing performance. All of the Company’s long-lived assets are located

in the United States and substantially all of its revenue is generated from customers located in the United States.

Income taxes

The Company is a C corporation and

accounts for income taxes under ASC 740, Income Taxes, using the asset-and-liability method. Deferred tax assets and liabilities are recognized

for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities

and their respective tax bases and to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using

enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. A valuation

allowance is established against any deferred tax asset to the extent that, on a more-likely-than-not

basis, the asset will not be realized.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

The Company assesses its income tax

positions in accordance with ASC 740-10 and recognizes the financial-statement effects of a tax position when it is more likely than not,

based on the technical merits, that the position will be sustained upon examination by the relevant taxing authority. Management has evaluated

the Company’s tax positions taken or expected to be taken in its tax returns and has concluded that no liability for unrecognized tax

benefits is required to be recorded at February 28, 2026 or May 31, 2025. The Company recognizes interest and penalties related to unrecognized

tax benefits, if any, within income tax expense. The Company’s federal income tax returns for fiscal years 2022 and forward, and California

franchise tax returns for fiscal years 2021 and forward, remain subject to examination by the applicable taxing authorities.

Leases

The Company evaluates its arrangements

at inception to determine whether a lease exists under ASC 842, Leases. An arrangement is a lease, or contains a lease, if it conveys

the right to control the use of an identified asset for a period of time in exchange for consideration. Operating-lease right-of-use assets

and lease liabilities are recognized at the commencement date based on the present value of fixed lease payments over the lease term,

using the Company’s incremental borrowing rate when the rate implicit in the lease is not readily determinable. The Company occupies its

principal manufacturing facility under a related-party arrangement with an entity wholly owned by the Company’s two officer-shareholders.

The arrangement is not documented by an enforceable written contract and is terminable at will by either party; accordingly, the Company

has accounted for the arrangement as a month-to-month tenancy and has not recognized a right-of-use asset or lease liability under ASC

842. Rent expense is recognized on a straight-line basis as incurred. See Note 11 for further detail on the related-party arrangement.

Fair value of financial instruments

The Company’s financial instruments

consist of cash and cash equivalents, accounts receivable, investments, accounts payable, and notes payable. The carrying values of cash,

accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. The carrying value

of notes payable approximates fair value based on their stated interest rates relative to current market rates for comparable instruments.

Fair-value measurements of investments are disclosed in Note 9.

Recent accounting pronouncements

In November 2023, the Financial Accounting

Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements

to Reportable Segment Disclosures, which expands segment disclosure requirements to include incremental information about significant

segment expenses. The Company adopted ASU 2023-07 on June 1, 2024 and applied the standard retrospectively to the comparative period.

Because the Company operates as a single reportable segment, the adoption did not have a material effect on the Company’s financial position,

results of operations, or cash flows other than enhanced footnote disclosure.

In December 2023, the FASB issued ASU

2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information about an entity’s

effective tax-rate reconciliation and income taxes paid. The standard is effective for the Company for annual periods beginning June 1,

2025. The Company is currently evaluating the effect of adoption on its income-tax footnote disclosures and does not expect the adoption

to have a material effect on its financial position or results of operations.

Management has reviewed other recently

issued accounting pronouncements and does not believe any other pronouncement issued but not yet effective will have a material effect

on the Company’s financial statements upon adoption.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

NOTE 3: Revenue from Contracts with Customers

Contracts and performance obligations

The Company enters into contracts with

customers pursuant to master supply agreements and individual purchase orders for the sale of machined components. Each purchase order

is treated as a separate contract for financial reporting purposes.

Principal versus agent considerations

The Company has assessed whether it

acts as a principal or as an agent in its arrangements with customers under ASC 606-10-55-36 through 55-40. The Company has concluded

that it is the principal in all of its revenue arrangements because it (i) is primarily responsible for fulfilling the promised goods,

(ii) has inventory risk before the goods are transferred to the customer, including with respect to consigned and VMI-held inventory over

which the Company retains control until customer consumption, and (iii) has discretion in establishing the price for its components. Accordingly,

revenue is recognized on a gross basis at the amount the Company expects to be entitled to in exchange for the components delivered. The

Company has determined that each identified part number within a purchase order represents a distinct performance obligation, as the customer

can benefit from each part separately and the parts are separately identifiable within the contract.

Transaction prices are fixed per the

unit prices stated in each purchase order. The Company’s contracts do not contain material variable consideration, significant financing

components, non-cash consideration, or consideration payable to the customer. Sales-related taxes collected from customers on behalf of

governmental authorities are excluded from revenue.

Standard shipments

For standard (non-consignment) purchase-order

shipments, the Company recognizes revenue at the point in time when control of the goods transfers to the customer. The Company’s customary

terms are F.O.B. shipping point, and control transfers, and revenue is recognized, upon shipment from the Company’s facility. Revenue

from standard shipments was $886,646 and $632,582 for the three months ended February 28, 2026 and 2025, respectively, and $2,567,153

and $2,194,460 for the nine months ended February 28, 2026 and 2025, respectively.

Vendor-managed inventory (VMI) consignment

The Company sells certain part numbers

to Honeywell International Inc. and MOOG, Inc. through vendor-managed

inventory (“VMI”) consignment programs. Under these programs, the Company ships goods to customer-operated stocking locations

but does not recognize a sale upon shipment. The Company has analyzed the VMI arrangements against the indicators in ASC 606-10-55-2 and

has concluded that control of the goods does not transfer to the customer upon shipment to the stocking location because:

(i) the Company retains legal title to the goods until the customer’s

consumption event;

(ii) the Company retains the right to recall or substitute inventory

held at the stocking location at any time prior to customer consumption;

(iii) the customer has no unconditional obligation to pay for goods

until it withdraws inventory for its own production use; and

(iv) risk of physical loss and obsolescence at the stocking location

is contractually borne by the Company until consumption.

Revenue on VMI

shipments is therefore recognized at the point in time when the customer draws goods from the stocking location for its own

production (the “pull event”), at which point the customer accepts the quantity and unit price reflected in an

auto-generated consumption invoice. Revenue from VMI consignment was $387,857 and $382,111 for the three months ended February 28,

2026 and 2025, respectively, and $1,040,251 and $1,001,693 for the nine months ended February 28, 2026 and 2025, respectively.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

The inventory held at

customer stocking locations but over which the Company retains control is reported within Inventories on the Balance Sheet as

“Consigned (Honeywell + MOOG).” Consigned inventory was $168,855 and $203,236 at February 28, 2026 and May 31, 2025,

respectively (see Note 6).

MOOG Philippines consignment

During fiscal year 2025, the Company

commenced a separate consignment arrangement with MOOG Philippines. Revenue is recognized on the same pull-event basis described above.

Revenue from this program was $0 and $1,240 for the three months ended February 28, 2026 and 2025, respectively, and $0 and $1,240 for

the nine months ended February 28, 2026 and 2025, respectively.

Contract balances

The Company does not have material

contract assets or contract liabilities. Customer deposits reported on the Balance Sheet ($0 at February 28, 2026; $6,135 at May 31, 2025)

represent advance payments received on specific purchase orders for which the related performance obligation had not yet been satisfied

at the respective balance sheet date. Customer deposits are recognized as revenue when control of the related goods transfers to the customer.

Disaggregation of revenue

Revenue disaggregated by revenue stream

for the three and nine months ended February 28 is as follows:

3-mo Feb 28, 2026

3-mo Feb 28, 2025

9-mo Feb 28, 2026

9-mo Feb 28, 2025

Sales - standard

$ 886,646

$ 632,582

$ 2,567,153

$ 2,194,460

Sales - VMI consignment (Honeywell + MOOG)

387,857

382,111

1,040,251

1,001,693

Sales - consignment (MOOG Philippines)

1,240

Total Revenue

$ 1,274,503

$ 1,015,933

$ 3,607,404

$ 3,197,393

NOTE 4: Concentrations of Credit Risk

Financial instruments that potentially

subject the Company to concentrations of credit risk consist of cash on deposit and accounts receivable. The Company maintains its cash

balances with high-credit-quality U.S. financial institutions. Deposits

at each institution may at times exceed federally insured limits ($250,000 per depositor, per institution under the Federal Deposit Insurance

Corporation); the Company has not experienced any losses on such accounts and does not believe it is exposed to significant credit risk

with respect to its cash balances.

The Company sells primarily to large

aerospace original equipment manufacturers and their tier-one suppliers. As a result, accounts receivable are concentrated among a limited

number of customers. The Company performs ongoing credit evaluations of its customers, maintains specific reserves for receivables deemed

uncollectible (see Note 5), and has not historically required collateral from its customers.

Customer and accounts

receivable concentrations. During the nine months ended February 28, 2026 and 2025, customers each individually exceeding 10% of

revenue accounted for the following approximate percentages of total revenue: Honeywell International Inc. (including authorized

distributor and VMI consignment programs), approximately 34% and 48%; The Boeing Company (through Boeing Distribution Services),

approximately 23% and 12%; and MOOG, Inc. (including its consignment program), approximately 16% and 15%. No other customer

accounted for more than 10% of revenue in either period. At February 28, 2026 and May 31, 2025, balances due from these same

customers represented the following percentages of trade accounts receivable: Honeywell International Inc., approximately 58% and

67%; The Boeing Company, approximately 14% and 8%; and MOOG, Inc., approximately 10% and 10%, respectively. Collectively, the three

customers represented approximately 83% of trade accounts receivable at February 28, 2026 and approximately 84% at May 31, 2025.

Substantially all trade accounts receivable at each balance sheet date is due from customers engaged in the aerospace and defense

industry.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Supplier and accounts payable concentrations.

The Company purchases raw materials (principally aluminum, stainless steel, titanium, and high-temperature alloys) and outside-process

services (heat treatment, surface finishing) from a limited number of qualified vendors. During the year ended May 31, 2025, the largest

single vendor balance represented approximately 12% of total accounts payable at May 31, 2025, and no other vendor exceeded 10% of total

accounts payable. At February 28, 2026, two vendors each represented approximately 19% and 18% of total accounts payable, respectively,

and no other vendor exceeded 10% of total accounts payable. The Company believes that, while the loss of any one of these suppliers could

temporarily disrupt operations, equivalent materials and services are available from alternate qualified sources and the impact of any

such disruption would not be material to its financial position or results of operations.

NOTE 5: Accounts Receivable

Accounts receivable, net consists of the following:

Feb 28,

2026

May 31,

2025

Trade accounts receivable, gross

$ 399,565

$ 346,574

Less: allowance for credit losses

(11,517 )

(18,786 )

Trade accounts receivable, net

$ 388,048

$ 327,788

The Company applies ASC 326 (Financial

Instruments - Credit Losses) to trade receivables. The allowance for credit losses is estimated using a specific-identification approach

supplemented by historical loss experience on aged balances. At each reporting date, management reviews the aging of customer balances,

known customer-specific credit issues, and reasonable-and-supportable

forecasts of economic conditions affecting the aerospace industry. Account balances are written off against the allowance when management

determines the receivable is not collectible.

NOTE 6: Inventories

Inventories are stated at the lower

of cost (first-in, first-out basis, applied on a full-absorption

standard) or net realizable value. Cost includes direct materials, direct labor, and an allocation of manufacturing overhead, including

indirect labor, factory occupancy costs (rent, utilities, repairs), production-employee benefits, production insurance, shop supplies,

and perishable tooling. Manufacturing overhead allocated to inventory totaled approximately $178,626 and $169,374 for the three months

ended February 28, 2026 and 2025, respectively, and $535,879 and $508,123 for the nine months ended February 28, 2026 and 2025, respectively.

Consigned inventory represents goods

physically located at customer-operated stocking locations but over which the Company retains control under the VMI arrangements described

in Note 3.

The Company does not

maintain a separate inventory valuation reserve; items identified as excess, slow-moving, obsolete, or otherwise unrecoverable are

written down directly against the related inventory accounts. Such charges, recognized within Inventory impairments and write-offs

in the Statements of Operations, totaled $0 and $0 for the three months ended February 28, 2026 and 2025, respectively, and $695,763

and $0 for the nine months ended February 28, 2026 and 2025, respectively.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Inventories consist of

the following:

Feb 28,

2026

May 31,

2025

Work in process

$ 140,089

$ 88,086

Finished goods

193,773

177,898

Consigned (Honeywell + MOOG)

168,855

203,236

Total inventories

$ 502,717

$ 469,220

NOTE 7: Property and Equipment

Property and equipment is stated at

cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the

assets, generally seven years for machinery and equipment, five years for office equipment and vehicles, and three years for computer

software. Expenditures for major additions and improvements are capitalized; expenditures for routine repairs and maintenance are charged

to operations as incurred. Upon retirement or disposal of an asset, the cost and related accumulated depreciation are removed from the

accounts, and any resulting gain or loss is reflected in the statement of operations.

Property and equipment consists of

the following:

Feb 28,

2026

May 31,

2025

Machinery and equipment

$ 2,523,587

Computer software (NC)

6,484

Vehicles

29,722

Office equipment & furniture

65,545

59,058

Total property and equipment, at cost

$ 2,625,338

$ 2,618,851

Less: Accumulated depreciation

(2,161,566 )

(2,075,224 )

Total property and equipment, net

$ 463,772

$ 543,627

Depreciation expense was $28,781 and

$25,513 for the three months ended February 28, 2026 and 2025, respectively, and $86,342 and $76,540 for the nine months ended February

28, 2026 and 2025, respectively, substantially all of which was included in cost of goods sold as manufacturing overhead.

NOTE 8: Notes Payable and SBA

Loan

The Company maintains financing arrangements

related to the acquisition of manufacturing equipment. These arrangements consist of term loans with INTECH Funding and U.S. Bank Equipment

Finance, and a residual U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loan balance.

All borrowings are classified as current based on management’s expectation that the outstanding balances will be settled within twelve

months of the balance sheet date.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Feb 28,

2026

May 31,

2025

INTECH Funding Corp - equipment note, 5.87% fixed, matures Oct 2027

$ 52,884

$ 78,777

U.S. Bank Equipment Finance - equipment note, 7.50% fixed, matures Aug 2028

55,150

70,329

California Bank & Trust - SBA PPP loan, 1.00% fixed, matures Feb 2026

—

12,586

Total notes payable, current portion

$ 108,034

$ 161,692

Non-current portion:

INTECH Funding Corp

—

U.S. Bank Equipment Finance

—

California Bank & Trust - SBA PPP

—

Total notes payable, non-current portion

$ —

Total notes payable

$ 108,034

$ 161,692

The INTECH Funding

note was entered into on October 31, 2022 in the original principal amount of $151,338 to finance the acquisition of a Star Swiss

automatic lathe. The note bears interest at a fixed annual rate of 5.87%, requires sixty monthly payments of $2,924, and is

collateralized by the financed equipment.

The U.S. Bank Equipment Finance note

was entered into on July 24, 2023 in the original principal amount of $100,000 to finance the acquisition of a Hyundai WIA HD2200 CNC

lathe and ATS bar feeder. The note bears interest at a fixed annual rate of 7.50%, requires fifty-eight monthly payments of $2,086.64,

and is collateralized by the financed equipment.

The Company also previously held an

equipment note with Newlane Finance Company that financed the acquisition of manufacturing equipment in a prior fiscal year. Scheduled

monthly principal and interest payments of $16,013 in aggregate were made during the nine months ended February 28, 2025, fully extinguishing

the outstanding balance prior to May 31, 2025. No balance remained outstanding at May 31, 2025 or February 28, 2026, and accordingly the

note is not reflected in the table above.

The California Bank & Trust note

represents the remaining balance of a Small Business Administration Paycheck Protection Program loan obtained during fiscal year 2021.

The loan bears interest at 1.00% per annum and requires monthly payments of $1,408 through final maturity in February 2026.

Interest expense on the notes payable

described above totaled $1,949 and $2,372 for the three months ended February 28, 2026 and 2025, respectively, and $7,041 and $9,009 for

the nine months ended February 28, 2026 and 2025, respectively, and is included within Other operating expenses on the Statements of Operations.

All interest was expensed as incurred (no interest was capitalized into property and equipment), and no accrued but unpaid interest was

outstanding at either balance sheet date.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

NOTE 9: Fair Value Measurements

The Company applies ASC 820 (Fair Value

Measurement) to financial assets and liabilities measured at fair value on a recurring basis and to non-financial assets subject to non-recurring

fair-value measurement (e.g., long-lived asset impairment). ASC 820 defines fair value as the price that would be received to sell an

asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a

three-level fair-value hierarchy:

Level 1 - quoted prices in active markets

for identical assets or liabilities;

Level 2 - observable inputs other than

Level 1 quoted prices, including quoted prices for similar assets in active markets, quoted prices in markets that are not active, or

other directly observable inputs; and

Level 3 - unobservable inputs reflecting

the Company’s own assumptions about the assumptions market participants would use.

Financial assets measured at fair value

on a recurring basis consist of the Company’s investments in marketable securities held in a managed brokerage account with Morgan Stanley.

The Company’s investments are classified within Level 1 of the hierarchy as fair value is determined by reference to quoted market prices

on active exchanges at each reporting date. The Company had no financial liabilities measured at fair value on a recurring basis and no

Level 2 or Level 3 recurring measurements at either balance sheet date.

Financial assets measured at fair value

on a recurring basis consist of the following:

Feb 28,

2026

May 31,

2025

Investments - marketable securities (Level 1)

$ 344,336

$ 178,657

Total recurring fair value measurements

$ 344,336

$ 178,657

The amounts presented

on the Balance Sheet represent the period-end fair value of the Company’s marketable equity securities as reported on the Morgan

Stanley brokerage statements at each measurement date. The Company marks its investment portfolio to market at each reporting date

with the resulting unrealized gains and losses recognized in the Statements of Operations within other income, net. For the nine

months ended February 28, 2026, the Company recognized a net realized gain of $26,378 on investment sales and reversed the

prior-period cumulative unrealized loss of $15,252 through the Statements of Operations. The net increase in the carrying value of

the investment portfolio of $165,679 between May 31, 2025 ($178,657) and February 28, 2026 ($344,336) reflects net purchases and

reinvested earnings, net realized gains of $26,378, the reversal of the prior-period cumulative unrealized loss of $15,252, and the

mark-to-market adjustment recognized during the period.

NOTE 10: Stockholders’ Equity

Capital stock

The Company is authorized to issue

100,000 shares of capital stock, no par value. At February 28, 2026 and May 31, 2025, there were 10,000 shares issued and outstanding.

Because the shares have no par value, no amount is allocated to capital stock; the aggregate consideration of $10,000 received on issuance

is reported in paid-in capital.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Distributions

No distributions to shareholders were

declared or paid during the nine months ended February 28, 2026 and 2025.

Changes in retained earnings

Retained earnings

increased by $123,492 during the three months ended February 28, 2026 (reflecting net income of $123,492 for the quarter) and

increased by $343,903 during the nine months ended February 28, 2026 (reflecting net income of $343,903 for the nine-month period).

Retained earnings decreased by $313,582 during the three months ended February 28, 2025 (reflecting the net loss for the quarter)

and decreased by $108,061 during the nine months ended February 28, 2025 (reflecting the net loss for the nine-month period). See

the Statement of Changes in Stockholders’ Equity for a complete roll forward.

NOTE 11: Commitments and Contingencies

Operating lease - manufacturing facility

The Company occupies

its principal manufacturing facility under a related-party arrangement with an entity wholly owned by the Company’s two

officer-shareholders (the “Lessor Entity”). The arrangement provides for monthly rental payments of $12,000, or $144,000

per annum, payable in arrears. Rent expense under this arrangement was $36,000 for each of the three months ended February 28, 2026

and 2025 and $108,000 for each of the nine months ended February 28, 2026 and 2025, and is classified within cost of goods sold as

manufacturing overhead. The Company has determined that, in substance, the arrangement is a lease under ASC 842 because it conveys

the right to control the use of an identified facility for consideration over a period of time, notwithstanding the absence of an

enforceable written contract. The arrangement is terminable at will by either party and operates as a month-to-month tenancy. The

Company has elected the short-term lease recognition exemption available under ASC 842-20-25-2 for leases with a term of twelve

months or less, and accordingly does not recognize a right-of-use asset or lease liability for this arrangement. Rent expense is

recognized on a straight-line basis as incurred.

Legal proceedings

During fiscal year 2025, the Company

agreed to settle a wage-and-hour class action. The Company accrued $225,000, management’s best estimate of the probable loss, recognized

as litigation settlement expense and recorded within accrued settlement liability in current liabilities, with payment expected within

twelve months.

Other than the matter described above,

the Company is not a party to any material legal proceedings. From time to time the Company may become involved in routine litigation

incidental to the conduct of its business; management does not believe any such matters currently pending are likely to have a material

adverse effect on the Company’s financial position, results of operations, or cash flows.

Customer warranties and product-liability claims

The Company’s machined components are

subject to product-acceptance inspection by its aerospace customers and, in certain cases, source inspection by the customer’s representative

prior to shipment. Rejected parts are reworked or replaced at the Company’s cost; historical rework and rejection costs are not material

(approximately $0 and $2,100 for the three months ended February 28, 2026 and 2025, respectively, and a net recovery of approximately

$12,500 and costs of approximately $36,900 for the nine months ended February 28, 2026 and 2025, respectively, representing less than

1% of net revenue in each period) and are expensed as incurred. The Company does not provide extended warranties beyond those implied

by industry custom and has not recorded a warranty accrual at either balance sheet date.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

NOTE 12: Related Party Transactions

The Company has the following related

parties: (i) the Lessor Entity, an entity wholly owned by the Company’s two officer-shareholders that owns the manufacturing facility

leased to the Company, and (ii) the two officer-shareholders themselves, who serve as the Company’s sole directors and officers and provide

payroll services to the Company.

Facility lease. The Company occupies

its principal manufacturing facility under a month-to-month arrangement with the Lessor Entity. Total related-party rent expense recognized

was $36,000 for each of the three months ended February 28, 2026 and 2025 and $108,000 for each of the nine months ended February 28,

2026 and 2025. No amounts were payable to, or receivable from, the Lessor Entity at either balance sheet date. The rental rate is believed

by management to approximate market terms for comparable light-industrial space in the Company’s geographic area; however, the arrangement

was not negotiated at arm’s length and could be modified at the discretion of the parties. See Note 11 for the lease accounting conclusion.

Officer-shareholder

compensation. Officer-shareholder compensation, including salary and employer payroll taxes, totaled $67,650 for the three months

ended February 28, 2026 and 2025, respectively, and $202,950 for the nine months ended February 28, 2026 and 2025, respectively, and

is included within operating expenses.

NOTE 13: Income Taxes

The Company is taxed as a C corporation in the United States

and is subject to United States federal income tax and California franchise and income tax. The Company files separate United States federal

and California corporate income tax returns on a fiscal-year basis ending May 31.

Current income tax

expense totaled $3,662 for each of the three months ended February 28, 2026 and 2025, comprising United States federal income tax of

$3,454 and California franchise tax of $208 in each quarter. Current income tax expense for the nine months ended February 28, 2026

and 2025 totaled $10,985 and $10,985, respectively, comprising United States federal income tax of $10,363 and $10,363 and

California franchise tax of $622 and $622. The Company has recognized deferred tax assets attributable to its net operating loss

carryforwards, against which a full valuation allowance has been recorded (see “Deferred tax assets and valuation

allowance” below). The Company has not yet quantified deferred tax assets or liabilities for other temporary differences

between the financial-reporting and income-tax bases of its assets and liabilities, principally inventory write-offs, accumulated

depreciation, and the allowance for credit losses. Such amounts will be quantified once the Company’s tax provider has prepared a

tax-basis balance sheet that reconciles the book-basis adjustments reflected in these financial statements to the corresponding

amounts reported on the United States federal income tax return.

Effective income tax rate

The Company’s

effective income tax rate differs from the United States federal statutory rate of 21 per cent principally because of the following:

(a) significant book-to-tax adjustments arising from inventory write-offs and other items that are recognized in the financial

statements but treated differently for income-tax purposes; (b) a full valuation allowance maintained against the Company’s deferred

tax assets, which eliminates any income tax benefit that would otherwise arise from the net operating loss carryforwards; (c) state

income taxes; and (d) non-deductible permanent differences, including officer life-insurance premiums and the disallowed portion of

meals expense. As a result, the Company recorded income tax expense of $10,985 for each of the nine months ended February 28, 2026

and February 28, 2025, an effective rate below the statutory rate when measured against pre-tax income for financial-reporting

purposes.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Components of income tax expense

Income tax expense for the three and nine months ended February

28, 2026 and 2025 consists entirely of current income tax, as follows:

Three Months Ended

February 28,

Nine Months Ended

February 28,

2026

2025

2026

2025

Current United States federal

$ 3,454

$ 10,363

California franchise tax

208

622

Total current income tax expense

3,662

10,985

There were no income taxes paid in

cash during the nine months ended February 28, 2026 and 2025.

Net operating loss carryforwards

United States federal net operating

loss carryforwards available to the Company at the beginning of the nine months ended February 28, 2026 totaled approximately $1,000.

The Company does not expect material utilization of the remaining carryforward during the stub period, leaving a remaining federal net

operating loss carryforward of approximately $1,000 at February 28, 2026. These carryforwards arose in tax years beginning after December

31, 2017 and accordingly carry forward indefinitely; however, their utilization in any given year is limited to 80 per cent of taxable

income under Section 172(a) of the Internal Revenue Code, as amended by the Tax Cuts and Jobs Act.

No California net operating loss carryforward remained at

May 31, 2025, the carryforwards available at the beginning of fiscal year 2025 having been fully utilized in prior periods. During the

nine months ended February 28, 2026, the Company generated a California net operating loss of approximately $4,815, leaving a California

net operating loss carryforward of approximately $4,815 at February 28, 2026.

California net operating losses generated in tax years beginning

on or after January 1, 2020 are available for a twenty-year carryforward period and accordingly will expire on or about December 31, 2046

if not utilized.

Deferred tax assets and valuation allowance

The Company’s only identified deferred tax asset arises

from the net operating loss carry forwards described above. At February 28, 2026, the gross deferred tax asset totaled $1,632, comprising

a federal deferred tax asset of $1,206 on a federal net operating loss carry forward of $5,745 measured at the statutory rate of 21 per

cent and a California deferred tax asset of $426 on a California net operating loss carry forward of $4,815 measured at the statutory

rate of 8.84 per cent. At May 31, 2025, the gross deferred tax asset totaled $195, comprising a federal deferred tax asset of $195 on

a federal net operating loss carry forward of $930 measured at the statutory rate of 21 per cent. No other material temporary differences

between the financial-reporting and income-tax bases of the Company’s assets and liabilities were identified at either balance-sheet date.

A&B AEROSPACE, INC.

Notes to the Financial Statements (unaudited)

Management assessed the realizability of these deferred

tax assets in accordance with ASC 740-10-30-5. Although the Company generated net income for financial-reporting purposes during the nine

months ended February 28, 2026, management concluded that, in light of the limited magnitude of the underlying net operating loss carry

forwards, the absence of a sustained history of taxable income at the federal level, and the inherent uncertainty in projecting future

taxable income against which the carry forwards would be utilized, a full valuation allowance was warranted. Accordingly, a valuation

allowance equal to the gross deferred tax asset was recorded at each balance-sheet date, reducing the net deferred tax asset to zero.

The valuation allowance increased by $1,437 during the nine months ended February 28, 2026, from $195 to $1,632 (with no material change

during the three months ended February 28, 2026), as the Company generated a federal net operating loss of approximately $4,815 and a

California net operating loss of approximately $4,815 during the nine-month period. The valuation allowance decreased by $91,481 during

the year ended May 31, 2025, from $91,676 to $195, as the underlying net operating loss carry forwards were utilized against taxable income.

No deferred tax liabilities were identified at February

28, 2026 or May 31, 2025.

The utilization of the Company’s remaining net operating

loss carryforwards may be subject to annual limitation under Sections 382 and 383 of the Internal Revenue Code if the Company experiences

an ownership change, generally defined as a cumulative change of more than 50 percentage points by certain stockholders during a rolling

three-year period. The Company has not completed a formal Section 382 and 383 study; however, the Company is not aware of any ownership

change events that would limit the utilization of these carryforwards.

Uncertain tax positions

The Company recognizes the financial statement benefit of

a tax position only when the position is more likely than not to be sustained on examination by the relevant taxing authority. As of February

28, 2026 and May 31, 2025, the Company had no unrecognized tax benefits, and no tax positions are reported on Schedule UTP of the Company’s

federal income tax return. The Company records interest related to uncertain tax positions within interest expense and any related penalties

within general and administrative expenses; no such amounts were recognized during the nine months ended February 28, 2026 and 2025.

Open tax years

The Company is subject to taxation in the United States

federal jurisdiction and in California. The Company’s federal tax returns for fiscal years ended May 31, 2022 through May 31, 2025 and

California tax returns for fiscal years ended May 31, 2021 through May 31, 2025 remain open to examination by the United States Internal

Revenue Service and the California Franchise Tax Board, respectively. There were no examinations in progress at February 28, 2026.

NOTE 14: Subsequent Events

The Company has evaluated subsequent

events through May 12, 2026, the date these financial statements were available to be issued. No events have occurred subsequent to February

28, 2026 that require recognition or disclosure in these financial statements.

EX-99.2 — AUDITED FINANCIAL STATEMENTS OF A&B AEROSPACE, INC. AS OF THE FISCAL YEAR ENDED MAY 31, 2025 AND MAY 31, 2024

EX-99.2

Filename: ea029009801ex99-2.htm · Sequence: 4

Exhibit

99.2

Financial

Statements of

A&B

AEROSPACE, INC.

For

the years ended May 31, 2025 and May 31, 2024

REPORT

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Members and Stockholders of

A&B Aerospace, Inc.

Opinion

on the Financial Statements

have audited the accompanying balance sheets of A&B Aerospace, Inc. (the Company) as of May 31, 2025 and 2024, and the related statements

of operations, equity, and cash flows for the years ended May 31, 2025 and 2024, and the related notes (collectively referred to as the

financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the

Company as of May 31, 2025 and 2024, and the results of its operations and its cash flows for the years ended May 31, 2025, in conformity

with accounting principles generally accepted in the United States of America.

Basis

for Opinion

These

financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s

financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board

(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities

laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company

is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,

we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion

on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our

audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error

or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding

the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant

estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits

provide a reasonable basis for our opinion.

Critical

Audit Matters

critical audit matter is a matter arising from the current period audit of the financial statements that were communicated or required

to be communicated to the audit committee or the Company’s governance and that: (1) relate to accounts or disclosures that are

material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication

of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating

a critical audit, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. We

determined that there are no critical audit matters communicated or required to be communicated to the audit committee.

/s/

HTL International, LLC

HTL

International, LLC

have served as the Company’s auditor since 2025.

Houston,

May

12, 2026

PCAOB

ID: 7000

Balance

Sheet

of May 31, 2025 and May 31, 2024

(Expressed

in U.S. dollars)

Note

May

31,

2025

May

31,

2024

ASSETS

Current

Assets

Cash

and cash equivalents

$ 558,081

$ 595,813

Accounts

receivable, net

327,788

424,854

Other

receivables

2,982

4,550

Investments,

at fair value

178,657

148,682

Inventories,

net

469,220

456,886

Prepaid

expenses and other current assets

7,187

27,710

Total

Current Assets

$ 1,543,915

$ 1,658,495

Non-current

Assets

Property

and equipment, net

$ 543,627

$ 507,049

TOTAL

ASSETS

$ 2,087,542

$ 2,165,544

LIABILITIES

Current

Liabilities

Accounts

payable

$ 127,201

$ 234,858

Credit

card payable

301

1,706

Notes

payable

161,692

81,214

Customer

deposits

6,135

7,083

Accrued

settlement liability

225,000

Total

Current Liabilities

$ 520,329

$ 324,861

Long-term

Liabilities

Notes

payable

$ -

161,692

Total

Long-term Liabilities

$ -

$ 161,692

TOTAL LIABILITIES

$ 520,329

$ 486,553

COMMITMENTS

AND CONTINGENCIES

STOCKHOLDERS’

EQUITY

Capital

stock (no par value, 100,000 shares authorized; 10,000 shares issued and outstanding at May 31, 2025 and 2024)

$ -

Paid-in

capital

10,000

Retained

earnings

1,557,213

1,668,991

Total

Stockholders’ Equity

$ 1,567,213

$ 1,678,991

TOTAL

LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 2,087,542

$ 2,165,544

The

accompanying notes are an integral part of these statements

Statement

of Operations

For

the years ended May 31, 2025 and May 31, 2024

(Expressed

in U.S. dollars)

Note

May

31,

2025

May

31,

2024

Revenue

$ 4,284,780

$ 4,188,062

Cost

of products sold

3,338,795

3,161,942

Inventory

impairments and write-offs

650,284

752,953

Gross

profit

$ 295,701

$ 273,167

Other

income, net

21,097

7,004

Litigation

settlement expense

(225,000 )

Other

operating expenses

(188,929 )

(198,311 )

Income

(loss) before income taxes

$ (97,131 )

$ 81,860

Income

tax expense

(14,647 )

(11,526 )

Net

income (loss)

$ (111,778 )

$ 70,334

Earnings

(loss) per share - basic and diluted

$ (11.18 )

$ 7.03

Weighted-average

shares outstanding - basic and diluted

10,000

The

accompanying notes are an integral part of these statements

Statement

of Changes in Stockholders’ Equity

For

the years ended May 31, 2025 and May 31, 2024

(Expressed

in U.S. dollars)

Paid-in

Capital

Retained

Earnings

Total

Equity

Balance - May

31, 2023

$ 10,000

$ 1,598,657

$ 1,608,657

Net income

70,334

Distributions

to shareholders

Balance - May 31, 2024

$ 10,000

$ 1,668,991

$ 1,678,991

Net loss

(111,778 )

Distributions

to shareholders

Balance

- May 31, 2025

$ 10,000

$ 1,557,213

$ 1,567,213

The

accompanying notes are an integral part of these statements

Statement

of Cash Flows

For

the years ended May 31, 2025 and May 31, 2024

(Expressed

in U.S. dollars)

May

31,

2025

May

31,

2024

Operating

activities

Net income (loss)

$ (111,778 )

$ 70,334

Adjustments

to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation

and amortization

102,054

75,737

Inventory

impairments and write-offs (non-cash)

650,284

752,953

Non-cash

adjustments

Inventory

roll-forward

(115,013 )

(129,691 )

consignment & opening true-ups

(264,056 )

(327,232 )

PP&E

reconciliation

106,909

77,289

Leasehold

cleanup & full-absorption COGS reclass

(137,872 )

69,258

Unrealized

(gain) / loss on investments (non-cash)

(15,252 )

(3,365 )

Changes

in operating assets and liabilities:

Decrease

in accounts receivable

97,066

352,012

Decrease

(increase) in inventory

(12,334 )

(300,080 )

Decrease

in prepaid expenses and deposits

20,523

8,779

Decrease

(increase) in other receivables

1,568

(4,550 )

(Decrease)

increase in accounts payable and credit card payable

(109,062 )

110,706

Increase

(decrease) in accrued expenses

Decrease

in customer deposits

(948 )

(7,917 )

Net cash

(used in) provided by operating activities

$ 212,089

$ 744,233

Investing

activities

Purchases

of machinery and equipment

(130,741 )

(292,222 )

Purchases

of office equipment

(7,891 )

(1,869 )

Purchases

of investments

(29,975 )

(148,682 )

Net cash

provided by (used in) investing activities

$ (168,607 )

$ (442,773 )

Financing

activities

Repayments

of Newlane Finance note payable

(16,013 )

(24,020 )

Repayments

of INTECH note payable

(29,421 )

(25,471 )

Proceeds

(repayments) of US Bank Equipment loan

(19,105 )

89,434

Repayments

of SBA PPP loan

(16,675 )

(16,510 )

Net

cash (used in) provided by financing activities

$ (81,214 )

$ 23,433

Net (decrease)

increase in cash

$ (37,732 )

$ 324,893

Cash,

beginning of period

595,813

270,920

Cash,

end of period

$ 558,081

$ 595,813

The

accompanying notes are an integral part of these statements

Notes

to the Financial Statements

For

the Years ended May 31, 2025 and 2024

NOTE

1: Nature of Operations

A&B

Aerospace, Inc. (the “Company”) is a California corporation incorporated in 1992, operating as a precision CNC machining

contractor serving the aerospace, defense, and industrial end-markets. The Company manufactures close-tolerance machined components from

customer-supplied and Company-procured raw materials, principally aluminum, stainless steel, titanium, and high-temperature alloys, using

CNC turning centers, Swiss-type automatic lathes, and vertical machining centers at its facility in Southern California. The Company

operates under an AS9100D-certified quality management system and supplies both production and aftermarket components. The Company’s

fiscal year ends on May 31.

NOTE

2: Summary of Significant Accounting Policies

Basis

of presentation

The

accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States

of America (“US GAAP”) and are presented in U.S. dollars.

Going

concern

accordance with Accounting Standards Codification (ASC) 205-40, Presentation of Financial Statements, Going Concern, management has evaluated

whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to

continue as a going concern within one year after the date these financial statements are available to be issued. The Company incurred

a net loss of $111,778 for the year ended May 31, 2025 and recognized net income of $70,334 for the year ended May 31, 2024. The Company

generated positive cash flow from operations of $212,089 and $744,233 in fiscal year 2025 and fiscal year 2024, respectively, demonstrating

an ability to fund its day-to-day operations from recurring revenue.

May 31, 2025, the Company had net working capital (current assets less current liabilities) of approximately $1,024,000, comprising total

current assets of approximately $1,544,000 and total current liabilities of approximately $520,000, resulting in a current ratio of approximately

2.9 to 1. Cash and cash equivalents totaled $558,081 and the Company held an additional $179,000 in marketable equity securities, providing

aggregate liquid resources of approximately $737,000 against total current obligations of approximately $520,000.

Management

has assessed the Company’s available cash and cash equivalents, its investment portfolio, and projected operating cash requirements

for the twelve months following the date the financial statements are available to be issued. Based on this assessment (including the

Company’s positive operating cash-flow trend and its net working capital position) management believes the Company has sufficient

liquidity to meet its obligations as they become due, and accordingly the financial statements have been prepared on a going-concern

basis.

Use

of estimates

The

preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the

reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,

and the reported amounts of revenue and expenses during the reporting period. Areas requiring significant management judgment include

the allowance for credit losses on accounts receivable, the net realizable value of inventories (including the capitalized manufacturing-overhead

component), the useful lives and recoverability of property and equipment, the valuation of investments, and the assessment of revenue

recognition for consignment arrangements under ASC 606. Actual results could differ from those estimates.

Cash

and cash equivalents

Cash

and cash equivalents include cash on hand, cash held in demand deposit accounts at federally-insured financial institutions, and highly-liquid

investments with original maturities of three months or less at the date of acquisition. Money market funds held at Morgan Stanley are

classified as cash equivalents as they are redeemable on demand at net asset value and are invested in short-term, high-credit-quality

instruments.

Concentrations

of credit risk

Financial

instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits and accounts receivable.

The Company maintains cash balances in excess of federally-insured limits ($250,000 per depositor, per institution under the Federal

Deposit Insurance Corporation) at a commercial bank. The Company has not experienced losses on its cash balances and management considers

the credit risk to be minimal based on the financial strength of the institutions.

Accounts

receivable credit risk is concentrated among a limited number of aerospace OEMs and authorized distributors. For the years ended May

31, 2025 and 2024, three customers collectively accounted for a substantial portion of the Company’s revenue: Honeywell International

Inc. and its authorized distributor, The Boeing Company (through Boeing Distribution Services), and MOOG, Inc. Management performs ongoing

credit evaluations of its customers and generally does not require collateral.

Investments

consist of marketable equity securities and money market instruments held in a brokerage account at Morgan Stanley. Equity securities

with readily determinable fair values are measured at fair value at each balance sheet date in accordance with ASC 321, Investments —

Equity Securities, with all changes in fair value — both realized gains and losses on sale and unrealized gains and losses arising

from changes in market prices during the period — recognized in the Statement of Operations within Other income as they occur.

The carrying amount of the portfolio at each balance sheet date therefore represents its period-end fair value. Fair values are determined

by reference to quoted market prices on active exchanges (Level 1 inputs; see Note 9). Dividend income is recognized when the Company’s

right to receive payment is established.

Accounts

receivable and allowance for credit losses

Accounts

receivable are recorded at the invoiced amount, net of an allowance for credit losses. The Company applies the current expected credit

loss (“CECL”) model under ASC 326, Financial Instruments - Credit Losses. Under CECL, the Company estimates lifetime expected

credit losses at the reporting date based on a combination of (i) a specific-reserve analysis for invoices aged greater than 90 days

or where other indicators of collectability risk exist, and (ii) a pooled historical-loss assessment for the remainder of the portfolio.

Forward-looking economic indicators (including aerospace end-market demand, customer-specific financial condition, and general macroeconomic

conditions) are incorporated where they would materially affect the expected loss estimate. Invoices are charged off against the allowance

when management determines, after exhausting commercially reasonable collection efforts, that recovery is not probable.

Inventories

are stated at the lower of cost or net realizable value, with cost determined using a first-in, first-out (FIFO) method. Inventory cost

includes direct materials, direct labor, and an allocation of manufacturing overhead under a full-absorption costing model consistent

with ASC 330, Inventory. Manufacturing overhead allocated to inventory includes, among other items, indirect production labor, manufacturing

utilities, plant rent, plant insurance, tooling, plant supplies, and depreciation on manufacturing equipment. The Company periodically

reviews inventory for excess, slow-moving, and obsolete items and writes such items down directly against the related inventory accounts,

with the charge recognized in cost of goods sold.

The

Company evaluates its inventories for excess, slow-moving, and obsolete quantities at each reporting date. A write-down is recorded directly

against the carrying amount of the affected inventory where the estimated net realizable value is less than carrying cost based on management’s

analysis of (i) ageing of finished goods, (ii) historical and forecast usage by part number, (iii) customer-specific demand visibility

(including consumption against open vendor-managed inventory (“VMI”) replenishment commitments), and (iv) the salvage or

scrap value of components for which no further demand is anticipated. Write-downs are recognized in the period in which the reduction

in net realizable value is identified and are included within Cost of goods sold in the Statement of Operations, presented separately

on the face of the Statement of Operations as Inventory impairments and write-offs in accordance with ASC 330.

Work-in-process

and finished goods held on the Company’s premises are measured using year-end physical counts. The Company applies a standard-cost

system for routine operational measurement; standard costs are reviewed at least annually and are designed to approximate actual cost.

At each reporting date, total purchase-price, labor, and overhead variances are analyzed and any portion attributable to inventory remaining

on hand is capitalized into inventory, with the remainder recognized in cost of goods sold. Through this process, inventory is presented

at amounts that approximate actual cost in accordance with ASC 330. Consigned inventory (goods held at Honeywell and MOOG VMI bin locations

but over which the Company retains control per ASC 606-10-55-2) is reported as an asset until control transfers to the customer upon

the customer’s consumption of the inventory.

Property

and equipment

Property

and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated

useful lives of the assets: machinery and equipment, seven years; computer software (numerical control programming), three years; vehicles,

five years; office equipment and furniture and fixtures, five years; and leasehold improvements, the lesser of the estimated useful life

of the improvement or the remaining lease term. Maintenance and repairs are expensed as incurred; expenditures that extend an asset’s

useful life or increase its capacity are capitalized. Upon disposal, the cost and related accumulated depreciation are removed from the

accounts and any resulting gain or loss is recognized in the Statement of Operations.

The

Company evaluates property and equipment for impairment in accordance with ASC 360, Property, Plant, and Equipment, whenever events or

changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. Recoverability is assessed

by comparing the carrying amount of the asset (or asset group) to the future undiscounted net cash flows expected to be generated by

the asset. If the carrying amount is not recoverable, an impairment loss is measured as the excess of the carrying amount over the asset’s

fair value.

Revenue

recognition

The

Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, when control of the promised goods transfers

to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods.

See Note 3 for a detailed description of the Company’s revenue policies.

Segment

reporting

The

Company operates as a single reportable segment under ASC 280, Segment Reporting. The Company’s chief operating decision-maker,

who is its president, reviews financial information on a consolidated basis for purposes of allocating resources and assessing performance.

All of the Company’s long-lived assets are located in the United States and substantially all of its revenue is generated from

customers located in the United States.

Income

taxes

The

Company is a C corporation and accounts for income taxes under ASC 740, Income Taxes, using the asset-and-liability method. Deferred

tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement

carrying amounts of existing assets and liabilities and their respective tax bases and to operating loss and tax credit carryforwards.

Deferred

tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary

differences are expected to reverse. A valuation allowance is established against any deferred tax asset to the extent that, on a more-likely-than-not

basis, the asset will not be realized.

The

Company assesses its income tax positions in accordance with ASC 740-10 and recognizes the financial-statement effects of a tax position

when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the relevant

taxing authority. Management has evaluated the Company’s tax positions taken or expected to be taken in its tax returns and has

concluded that no liability for unrecognized tax benefits is required to be recorded at May 31, 2025 or May 31, 2024. The Company recognizes

interest and penalties related to unrecognized tax benefits, if any, within income tax expense. The Company’s federal income tax

returns for fiscal years 2021 and forward, and California franchise tax returns for fiscal years 2020 and forward, remain subject to

examination by the applicable taxing authorities.

Leases

The

Company evaluates its arrangements at inception to determine whether a lease exists under ASC 842, Leases. An arrangement is a lease,

or contains a lease, if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Operating-lease right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of fixed

lease payments over the lease term, using the Company’s incremental borrowing rate when the rate implicit in the lease is not readily

determinable. The Company occupies its principal manufacturing facility under a related-party arrangement with an entity wholly owned

by the Company’s two officer-shareholders. The arrangement is not documented by an enforceable written contract and is terminable

at will by either party; accordingly, the Company has accounted for the arrangement as a month-to-month tenancy and has not recognized

a right-of-use asset or lease liability under ASC 842. Rent expense is recognized on a straight-line basis as incurred. See Note 11 for

further detail on the related-party arrangement.

Fair

value of financial instruments

The

Company’s financial instruments consist of cash and cash equivalents, accounts receivable, investments, accounts payable, and notes

payable. The carrying values of cash, accounts receivable, and accounts payable approximate fair value due to the short-term nature of

these instruments. The carrying value of notes payable approximates fair value based on their stated interest rates relative to current

market rates for comparable instruments. Fair-value measurements of investments are disclosed in Note 9.

Recent

accounting pronouncements

November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07,

Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands segment disclosure requirements to include

incremental information about significant segment expenses. The Company adopted the new guidance effective June 1, 2024 and applied it

retrospectively to the comparative period presented. As the Company operates as a single reportable segment, management does not expect

the adoption of ASU 2023-07 to have a material effect on the Company’s recognition or measurement of segment results, and the adoption

did not have a material effect on the Company’s financial position, results of operations, or cash flows. The impact of adoption

was limited to enhanced footnote disclosure of significant segment expenses (see Segment reporting above).

December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated

information about an entity’s effective tax-rate reconciliation and income taxes paid. The standard is effective for the Company

for annual periods beginning June 1, 2025. As ASU 2023-09 affects only income-tax footnote disclosures and does not change the recognition

or measurement of income taxes, the adoption will not have a material effect on the Company’s financial position, results of operations,

or cash flows. The impact is expected to be limited to expanded disclosure of the effective tax-rate reconciliation and income taxes

paid.

Management

has reviewed other recently issued accounting pronouncements and does not believe any other pronouncement issued but not yet effective

will have a material effect on the Company’s financial statements upon adoption.

NOTE

3: Revenue from Contracts with Customers

Contracts

and performance obligations

The

Company enters into contracts with customers pursuant to master supply agreements and individual purchase orders for the sale of machined

components. Each purchase order is treated as a separate contract for financial reporting purposes.

Principal

versus agent considerations

The

Company has assessed whether it acts as a principal or as an agent in its arrangements with customers under ASC 606-10-55-36 through

55-40. The Company has concluded that it is the principal in all of its revenue arrangements because it (i) is primarily responsible

for fulfilling the promised goods, (ii) has inventory risk before the goods are transferred to the customer, including with respect to

consigned and VMI-held inventory over which the Company retains control until customer consumption, and (iii) has discretion in establishing

the price for its components. Accordingly, revenue is recognized on a gross basis at the amount the Company expects to be entitled to

in exchange for the components delivered. The Company has determined that each identified part number within a purchase order represents

a distinct performance obligation, as the customer can benefit from each part separately and the parts are separately identifiable within

the contract.

Transaction

prices are fixed per the unit prices stated in each purchase order. The Company’s contracts do not contain material variable consideration,

significant financing components, non-cash consideration, or consideration payable to the customer. Sales-related taxes collected from

customers on behalf of governmental authorities are excluded from revenue.

Standard

shipments

For

standard (non-consignment) purchase-order shipments, the Company recognizes revenue at the point in time when control of the goods transfers

to the customer. The Company’s customary terms are F.O.B. shipping point, and control transfers, and revenue is recognized, upon

shipment from the Company’s facility. Revenue from standard shipments was $3,022,207 and $3,393,013 for the years ended May 31,

2025 and 2024, respectively.

Vendor-managed

inventory (VMI) consignment

The

Company sells certain part numbers to Honeywell International Inc. and MOOG, Inc. through vendor-managed inventory (“VMI”)

consignment programs. Under these programs, the Company ships goods to customer-operated stocking locations but does not recognize a

sale upon shipment. The Company has analyzed the VMI arrangements against the indicators in ASC 606-10-55-2 and has concluded that control

of the goods does not transfer to the customer upon shipment to the stocking location because:

(i) the

Company retains legal title to the goods until the customer’s consumption event;

(ii) the

Company retains the right to recall or substitute inventory held at the stocking location

at any time prior to customer consumption;

(iii) the

customer has no unconditional obligation to pay for goods until it withdraws inventory for

its own production use; and

(iv) risk

of physical loss and obsolescence at the stocking location is contractually borne by the

Company until consumption.

Revenue

on VMI shipments is therefore recognized at the point in time when the customer draws goods from the stocking location for its own production

(the “pull event”), at which point the customer accepts the quantity and unit price reflected in an auto-generated consumption

invoice. Revenue from VMI consignment was $1,261,333 and $795,049 for the years ended May 31, 2025 and 2024, respectively. The year-over-year

increase reflects the ramp of a new Honeywell program that began recurring consumption during fiscal year 2025.

The

inventory held at customer stocking locations but over which the Company retains control is reported within Inventories on the Balance

Sheet as “Consigned (Honeywell + MOOG).” Consigned inventory was $203,237 and $205,581 at May 31, 2025 and 2024, respectively

(see Note 6).

MOOG

Philippines consignment

During

fiscal year 2025, the Company commenced a separate consignment arrangement with MOOG Philippines. Revenue is recognized on the same pull-event

basis described above. Revenue from this program was $1,240 for the year ended May 31, 2025 (no comparable activity in fiscal year 2024).

Contract

balances

The

Company does not have material contract assets or contract liabilities. Customer deposits reported on the Balance Sheet ($6,135 at May

31, 2025; $7,083 at May 31, 2024) represent advance payments received on specific purchase orders for which the related performance obligation

had not yet been satisfied at the respective balance sheet date. Customer deposits are recognized as revenue when control of the related

goods transfers to the customer.

Disaggregation

of revenue

Revenue

disaggregated by revenue stream for the years ended May 31 is as follows:

May

31,

2025

May

31,

2024

Sales

- standard

$ 3,022,207

$ 3,393,013

Sales -

VMI consignment (Honeywell + MOOG)

1,261,333

795,049

Sales

- consignment (MOOG Philippines)

1,240

Total

revenue

$ 4,284,780

$ 4,188,062

NOTE

4: Concentrations of Credit Risk

Financial

instruments that potentially subject the Company to concentrations of credit risk consist of cash on deposit and accounts receivable.

The Company maintains its cash balances with high-credit-quality U.S. financial institutions. Deposits at each institution may at times

exceed federally insured limits; the Company has not experienced any losses on such accounts and does not believe it is exposed to significant

credit risk with respect to its cash balances.

The

Company sells primarily to large aerospace original equipment manufacturers and their tier-one suppliers. As a result, accounts receivable

are concentrated among a limited number of customers. The Company performs ongoing credit evaluations of its customers, maintains specific

reserves for receivables deemed uncollectible (see Note 5), and has not historically required collateral from its customers.

Customer

and accounts receivable concentrations. During the years ended May 31, 2025 and 2024, customers each individually exceeding 10% of revenue

accounted for the following percentages of total revenue: Honeywell International Inc. (including authorized distributor and VMI consignment

programs), approximately 33% and 22%; The Boeing Company (through Boeing Distribution Services), approximately 27% and 19%; and MOOG,

Inc. (including its consignment program), approximately 13% and 22%. No other customer accounted for more than 10% of revenue in either

fiscal year. At May 31, 2025 and May 31, 2024, balances due from these same customers represented the following percentages of trade

accounts receivable: Honeywell International Inc., approximately 67% and 64%; The Boeing Company, approximately 8% and 6%; and MOOG,

Inc., approximately 10% and 16%, respectively. Collectively, the three customers represented approximately 84% of trade accounts receivable

at May 31, 2025 and approximately 86% at May 31, 2024. Substantially all trade accounts receivable at each balance sheet date is due

from customers engaged in the aerospace and defense industry.

Supplier

and accounts payable concentrations. The Company purchases raw materials (principally aluminum, stainless steel, titanium, and high-temperature

alloys) and outside-process services (heat treatment, surface finishing) from a limited number of qualified vendors. During the year

ended May 31, 2024, one vendor (Star CNC Machine Tool Corp.) represented approximately 67% of total accounts payable at May 31, 2024.

During the year ended May 31, 2025, the largest single vendor balance represented approximately 12% of total accounts payable at May

31, 2025, and no other vendor exceeded 10% of total accounts payable. The Company believes that, while the loss of any one of these suppliers

could temporarily disrupt operations, equivalent materials and services are available from alternate qualified sources and the impact

of any such disruption would not be material to its financial position or results of operations.

NOTE

5: Accounts Receivable

Accounts receivable, net consists of the

following at May 31:

May

31,

2025

May

31,

2024

Trade

accounts receivable, gross

$ 346,574

$ 480,726

Less:

allowance for credit losses

(18,786 )

(55,872 )

Trade

accounts receivable, net

327,788

424,854

The

Company applies ASC 326 (Financial Instruments - Credit Losses) to trade receivables. The allowance for credit losses is estimated using

a specific-identification approach supplemented by historical loss experience on aged balances. At each reporting date, management reviews

the aging of customer balances, known customer-specific credit issues, and reasonable-and-supportable forecasts of economic conditions

affecting the aerospace industry. Account balances are written off against the allowance when management determines the receivable is

not collectible. Write-offs against the allowance totaled $56,192 and $69,930 for the years ended May 31, 2025 and May 31, 2024, respectively,

principally representing previously-reserved invoices from a small number of customers that were ultimately determined to be uncollectible.

NOTE

6: Inventories

Inventories

are stated at the lower of cost (first-in, first-out basis, applied on a full-absorption standard) or net realizable value. Cost includes

direct materials, direct labor, and an allocation of manufacturing overhead, including indirect labor, factory occupancy costs (rent,

utilities, repairs), production-employee benefits, production insurance, shop supplies, and perishable tooling. Manufacturing overhead

allocated to inventory totaled $677,497 and $646,588 for the years ended May 31, 2025 and 2024, respectively.

Consigned

inventory represents goods physically located at customer-operated stocking locations but over which the Company retains control under

the VMI arrangements described in Note 3.

The

Company does not maintain a separate inventory valuation reserve; items identified as excess, slow-moving, obsolete, or otherwise unrecoverable

are written down directly against the related inventory accounts. Such charges, recognized within Cost of goods sold in the Statement

of Operations as Inventory impairments and write-offs (a component of cost in accordance with ASC 330), totaled $650,284 and $752,953

for the years ended May 31, 2025 and May 31, 2024, respectively.

Inventories

consist of the following at May 31:

May

31,

2025

May

31,

2024

Work

in process

$ 88,086

$ 114,954

Finished

goods

177,897

136,351

Consigned

(Honeywell + MOOG)

203,237

205,581

Total

inventories

$ 469,220

$ 456,886

NOTE

7: Property and Equipment

Property

and equipment is stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated

useful lives of the assets, generally seven years for machinery and equipment, five years for office equipment and vehicles, and three

years for computer software. Expenditures for major additions and improvements are capitalized; expenditures for routine repairs and

maintenance are charged to operations as incurred. Upon retirement or disposal of an asset, the cost and related accumulated depreciation

are removed from the accounts, and any resulting gain or loss is reflected in the statement of operations.

Property

and equipment consists of the following at May 31:

May

31,

2025

May

31,

2024

Machinery

and equipment

$ 2,523,587

$ 2,595,374

Computer

software (NC)

6,484

Vehicles

29,722

Office

equipment

59,058

51,166

Total

property and equipment, at cost

$ 2,618,851

$ 2,682,746

Less:

Accumulated depreciation

(2,075,224 )

(2,175,697 )

Property

and equipment, net

$ 543,627

$ 507,049

Depreciation

expense was $102,054 and $75,737 for the years ended May 31, 2025 and 2024, respectively, substantially all of which was included in

cost of goods sold as manufacturing overhead.

Disposal

of Miyano CNC lathe

May 2025, the Company disposed of a fully depreciated Miyano CNC lathe with a historical cost of $202,528 and accumulated depreciation

of an equal amount. No gain or loss was recognized on the disposal, and the asset and related accumulated depreciation were removed from

property and equipment during fiscal year 2025.

NOTE

8: Notes Payable

Notes

payable consist of equipment-financing obligations and a Small Business Administration Paycheck Protection Program (“PPP”)

loan, each collateralized as described below.

Notes

payable balances at May 31, segregated between current maturities (principal amounts contractually due within twelve months of the balance

sheet date) and non-current portions, are as follows:

May

31,

2025

May

31,

2024

Current portion:

INTECH Funding

Corp - equipment note, 5.87% fixed, matures Oct 2027

$ 78,777

$ 29,421

U.S. Bank Equipment Finance

- equipment note, 7.50% fixed, matures Aug 2028

70,329

19,105

California Bank & Trust

- SBA PPP loan, 1.00% fixed, matures Feb 2026

12,586

16,675

Newlane Finance - equipment

note (paid in full during fiscal year 2025)

16,013

Total

notes payable, current portion

$ 161,692

$ 81,214

Non-current

portion:

INTECH Funding Corp

$ 78,777

U.S. Bank Equipment Finance

70,329

California Bank & Trust

- SBA PPP

12,586

Newlane Finance

Total

notes payable, non-current portion

$ -

$ 161,692

Total

notes payable

$ 161,692

$ 242,906

The

INTECH Funding note was entered into on October 31, 2022 in the original principal amount of $151,338 to finance the acquisition of a

Star Swiss automatic lathe. The note bears interest at a fixed annual rate of 5.87%, requires sixty monthly payments of $2,924, and is

collateralized by the financed equipment.

The

U.S. Bank Equipment Finance note was entered into on July 24, 2023 in the original principal amount of $100,000 to finance the acquisition

of a Hyundai WIA HD2200 CNC lathe and ATS bar feeder. The note bears interest at a fixed annual rate of 7.50%, requires fifty-eight monthly

payments of $2,086.64, and is collateralized by the financed equipment.

The

California Bank & Trust note represents the remaining balance of a Small Business Administration Paycheck Protection Program loan

obtained during fiscal year 2021. The loan bears interest at 1.00% per annum and requires monthly payments of $1,408 through final maturity

in February 2026.

Interest

expense on the notes payable described above totaled $11,894 and $15,197 for the fiscal years ended May 31, 2025, and May 31, 2024, respectively,

and is included within Other operating expenses on the Statement of Operations. All interest was expensed as incurred (no interest was

capitalized into property and equipment), and no accrued but unpaid interest was outstanding at either balance sheet date.

NOTE

9: Fair Value Measurements

The

Company applies ASC 820 (Fair Value Measurement) to financial assets and liabilities measured at fair value on a recurring basis and

to non-financial assets subject to non-recurring fair-value measurement (e.g., long-lived asset impairment). ASC 820 defines fair value

as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants

at the measurement date and establishes a three-level fair-value hierarchy:

Level

1 - quoted prices in active markets for identical assets or liabilities;

Level

2 - observable inputs other than Level 1 quoted prices, including quoted prices for similar assets in active markets, quoted prices in

markets that are not active, or other directly observable inputs; and

Level

3 - unobservable inputs reflecting the Company’s own assumptions about the assumptions market participants would use.

Financial

assets measured at fair value on a recurring basis consist of the Company’s investments in marketable securities held in a managed

brokerage account with Morgan Stanley. The Company’s investments are classified within Level 1 of the hierarchy as fair value is

determined by reference to quoted market prices on active exchanges at each reporting date. The Company had no financial liabilities

measured at fair value on a recurring basis and no Level 2 or Level 3 recurring measurements at either balance sheet date.

Financial

assets measured at fair value on a recurring basis consist of the following at May 31:

May

31,

2025

May

31,

2024

Marketable

equity securities, at fair value (Level 1)

$ 178,657

$ 148,682

Total

recurring fair value measurements

$ 178,657

$ 148,682

The

Company’s marketable equity investments are measured at fair value, with all changes in fair value recognized in the Statement

of Operations in the period of change in accordance with ASC 321, Investments - Equity Securities. The portfolio is presented on the

Balance Sheet at its period-end fair value: $178,657 at May 31, 2025 and $148,682 at May 31, 2024. The carrying amount of the portfolio

increased by $29,975 during the year ended May 31, 2025, comprising net cash invested in the portfolio of $29,975 as reflected in investing

activities on the Statement of Cash Flows. For the year ended May 31, 2025, the Company recognized within “Gain/(Loss) on Investments”

a $15,252 unrealized gain on securities still held at year-end and $1,939 of realized gains on securities sold during the year; together

with dividend and interest income of $3,906, these amounts contributed to total other income of $21,097 for the year. The unrealized

component is reversed as a non-cash adjustment in the reconciliation of net income (loss) to cash provided by operating activities.

NOTE

10: Stockholders’ Equity

Capital

stock

The

Company is authorized to issue 100,000 shares of capital stock, no par value. At May 31, 2025 and 2024, there were 10,000 shares issued

and outstanding. Because the shares have no par value and no stated value has been assigned, no amount is allocated to capital stock;

the aggregate consideration of $10,000 received on issuance is reported in paid-in capital.

Distributions

distributions to shareholders were declared or paid during the years ended May 31, 2025 and 2024.

Changes

in retained earnings

Retained

earnings decreased by $111,778 during the year ended May 31, 2025, reflecting the net loss for the year. Retained earnings increased

by $70,334 during the year ended May 31, 2024, reflecting net income for the year.

NOTE

11: Commitments and Contingencies

Operating

lease - manufacturing facility

The

Company occupies its principal manufacturing facility under a related-party arrangement with an entity wholly owned by the Company’s

two officer-shareholders (the “Lessor Entity”). The arrangement provides for monthly rental payments of $12,000, or $144,000

per annum, payable in arrears. Rent expense under this arrangement was $144,000 for each of the years ended May 31, 2025 and 2024 and

is classified within cost of goods sold as manufacturing overhead. Although the arrangement is not documented by a written contract,

the absence of a written agreement does not mean the arrangement does not meet the definition of a lease under ASC 842; ASC 842 evaluates

leases on the substance of the arrangement rather than the form of documentation, and management has concluded that the arrangement conveys

the right to control the use of an identified facility for a period of time in exchange for consideration. Either party may terminate

the arrangement at any time without substantive penalty (i.e., a month-to-month tenancy), and accordingly the enforceable lease term

is one month. The Company has elected the short-term lease practical expedient under ASC 842-20-25-2 for this class of underlying asset

and recognizes the related rental payments as expense on a straight-line basis over the lease term. Accordingly, no right-of-use asset

or lease liability has been recognized at either balance sheet date.

Legal

proceedings

During

fiscal year 2025, the Company agreed to settle a wage-and-hour class action. The Company accrued $225,000, management’s best estimate

of the probable loss, recognized as litigation settlement expense and recorded within accrued settlement liability in current liabilities.

Although the final timing of payment remains uncertain pending completion of the administrative settlement process, the obligation is

classified as current as the Company expects to settle the liability within the twelve months following the balance sheet date.

Other

than the matter described above, the Company is not a party to any material legal proceedings. From time to time the Company may become

involved in routine litigation incidental to the conduct of its business; management does not believe any such matters currently pending

are likely to have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

Customer

warranties and product-liability claims

The

Company’s machined components are subject to product-acceptance inspection by its aerospace customers and, in certain cases, source

inspection by the customer’s representative prior to shipment. Rejected parts are reworked or replaced at the Company’s cost;

historical rework and rejection costs are not material (totaling approximately $38,700 and $12,900 for the years ended May 31, 2025 and

2024, respectively, representing less than 1% of net revenue in each period) and are expensed as incurred. The Company does not provide

extended warranties beyond those implied by industry custom and has not recorded a warranty accrual at either balance sheet date.

NOTE

12: Related-Party Transactions

The

Company has the following related parties: (i) the Lessor Entity, an entity wholly owned by the Company’s two officer-shareholders

that owns the manufacturing facility leased to the Company, and (ii) the two officer-shareholders themselves, who serve as the Company’s

sole directors and officers and provide payroll services to the Company.

Facility

lease. The Company occupies its principal manufacturing facility under a month-to-month arrangement with the Lessor Entity. Total related-party

rent expense recognized was $144,000 for each of the years ended May 31, 2025 and May 31, 2024. No amounts were payable to, or receivable

from, the Lessor Entity at either balance sheet date. The rental rate is believed by management to approximate market terms for comparable

light-industrial space in the Company’s geographic area; however, the arrangement was not negotiated at arm’s length and

could be modified at the discretion of the parties. See Note 11 for the Company’s application of the short-term lease practical

expedient to this arrangement.

Officer-shareholder

compensation. Officer-shareholder compensation, including salary and employer payroll taxes, totaled $270,600 and $265,396 for the years

ended May 31, 2025 and 2024 and is included within Other operating expenses on the Statement of Operations.

NOTE

13: Income Taxes

The

Company is taxed as a C corporation in the United States and is subject to United States federal income tax and California franchise

and income tax. The Company files separate United States federal and California corporate income tax returns on a fiscal year basis ending

May 31.

Current

income tax expense for the years ended May 31, 2025 and May 31, 2024 totaled $14,647 and $11,526, respectively, comprising United States

federal income tax of $13,817 and $10,726 and California franchise tax of $830 and $800. The Company’s income tax expense for the

years ended May 31, 2025 and May 31, 2024 is entirely current; no deferred income tax expense or benefit was recognized in either period.

Components

of income tax expense

Income

tax expense for the years ended May 31, 2025 and May 31, 2024 consists entirely of current income tax, as follows:

Year

ended

May 31,

Year

ended

May 31,

2025

2024

Current

United States federal

$ 13,817

$ 10,726

California

franchise tax

830

800

Total

current income tax expense

$ 14,647

$ 11,526

Income

taxes paid in cash (including amounts applied from prior-year overpayments) totaled $16,884 and $20,560 during the years ended May 31,

2025 and May 31, 2024, respectively.

Effective

income tax rate

The

Company’s effective income tax rate differs from the United States federal statutory rate of 21 per cent principally because of

the following: (a) significant inventory impairments and write-offs that are recognized as expenses for financial-reporting purposes

but are not currently deductible for income-tax purposes, resulting in taxable income for income-tax purposes despite a pre-tax loss

for financial-reporting purposes in fiscal year 2025; (b) a full valuation allowance maintained against the Company’s deferred

tax assets, which eliminates any income tax benefit that would otherwise arise from the net operating loss carryforwards; (c) state income

taxes; and (d) non-deductible permanent differences, including officer life-insurance premiums and the disallowed portion of meals expense.

As a result, the Company recorded income tax expense of $14,647 and $11,526 for the years ended May 31, 2025 and May 31, 2024, respectively,

notwithstanding a pre-tax loss for financial-reporting purposes in the year ended May 31, 2025 and a modest pre-tax income for financial-reporting

purposes in the year ended May 31, 2024.

Net

operating loss carryforwards

United

States federal net operating loss carryforwards available to the Company at the beginning of the year ended May 31, 2025 totaled approximately

$264,104. During the year, approximately $263,174 of these carryforwards was utilized against current-year taxable income, leaving a

remaining federal net operating loss carryforward of approximately $930 at May 31, 2025. These carryforwards arose in tax years beginning

after December 31, 2017 and accordingly carry forward indefinitely; however, their utilization in any given year is limited to 80 per

cent of taxable income under Section 172(a) of the Internal Revenue Code, as amended by the Tax Cuts and Jobs Act.

California

net operating loss carryforwards available to the Company at the beginning of the year ended May 31, 2025 totaled approximately $409,661

(originating in tax years 2021 and 2022). These carryforwards were fully utilized against California-source taxable income during the

year ended May 31, 2025, and no California net operating loss carryforward remained at May 31, 2025.

Deferred

tax assets and valuation allowance

The

Company’s only identified deferred tax asset arises from the net operating loss carryforwards described above. At May 31, 2025,

the gross deferred tax asset totaled $195, comprising a federal deferred tax asset of $195 on the remaining federal net operating loss

carryforward of $930 measured at the statutory rate of 21 per cent. At May 31, 2024, the gross deferred tax asset totaled $91,676, comprising

a federal deferred tax asset of $55,462 (on a federal net operating loss carryforward of $264,104 at 21 per cent) and a California deferred

tax asset of $36,214 (on a California net operating loss carryforward of approximately $410,000 at 8.84 per cent). No other material

temporary differences between the financial-reporting and income-tax bases of the Company’s assets and liabilities were identified

at either balance-sheet date.

Management

assessed the realizability of these deferred tax assets in accordance with ASC 740-10-30-5 and concluded that, in light of the Company’s

cumulative book losses and the variability of recent operating results, a full valuation allowance was warranted. Accordingly, a valuation

allowance equal to the gross deferred tax asset was recorded at each balance-sheet date, reducing the net deferred tax asset to zero.

The valuation allowance decreased by $91,481 during the year ended May 31, 2025, from $91,676 to $195, and decreased by $43,839 during

the year ended May 31, 2024, from $135,515 to $91,676, in each case as the underlying net operating loss carryforwards were utilized

against taxable income.

deferred tax liabilities were identified at May 31, 2025 or May 31, 2024.

The

utilization of the Company’s remaining net operating loss carryforwards may be subject to annual limitation under Sections 382

and 383 of the Internal Revenue Code if the Company experiences an ownership change, generally defined as a cumulative change of more

than 50 percentage points by certain stockholders during a rolling three-year period. The Company has not completed a formal Section

382 and 383 study; however, the Company is not aware of any ownership change events that would limit the utilization of these carryforwards.

Uncertain

tax positions

The

Company recognizes the financial statement benefit of a tax position only when the position is more likely than not to be sustained on

examination by the relevant taxing authority. As of May 31, 2025 and May 31, 2024, the Company had no unrecognized tax benefits, and

no tax positions are reported on Schedule UTP of the Company’s federal income tax return. The Company’s policy is to record

interest and penalties related to uncertain tax positions within Other operating expenses on the Statement of Operations; no such amounts

were recognized during the years ended May 31, 2025 and May 31, 2024.

Open

tax years

The

Company is subject to taxation in the United States federal jurisdiction and in California. The Company’s federal tax returns for

fiscal years ended May 31, 2022 through May 31, 2025 and California tax returns for fiscal years ended May 31, 2021 through May 31, 2025

remain open to examination by the United States Internal Revenue Service and the California Franchise Tax Board, respectively. There

were no examinations in progress at May 31, 2025.

NOTE

14: Subsequent Events

The

Company has evaluated subsequent events through May 12, 2026, the date these financial statements were available to be issued. No events

have occurred subsequent to May 31, 2025 that require recognition or disclosure in these financial statements.

EX-99.3

Filename: ea029009801ex99-3.htm · Sequence: 5

Exhibit 99.3

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL

INFORMATION

On May 11, 2026, PMGC Holdings Inc., a Nevada corporation (the “Buyer”

or the “Company”), entered into a Stock Purchase Agreement (the “Stock Purchase Agreement” or the “SPA”)

to acquire 100% of the issued and outstanding shares (the “Shares”) of A&B Aerospace, Inc., a California corporation (the

“Target” or “A&B”). The SPA was entered into by and among the Buyer, the Target, and Kennith Edward Smith

and Jack Joseph Badeau, constituting all of the stockholders of the Target (collectively, the “Sellers”). The Buyer’s

acquisition of the Target is referred to as the “Transaction,” and the Buyer, the Target, and the Sellers are referred to

collectively as the “Parties.”

Upon the closing of the Transaction (the “Closing”), the

aggregate purchase price for the Shares (the “Purchase Price”) consists of: (i) $4,275,000 in cash payable to the Sellers

at Closing (the “Closing Purchase Price”); plus (ii) $225,000 retained by the Buyer at Closing as an indemnification holdback

(the “Indemnification Holdback”); plus (iii) the Estimated Closing Cash Balance, defined in the SPA as the cash and cash equivalents

of the Target as of the Closing, which the Sellers are required under the SPA to use commercially best efforts to cause to be at least

$300,000 at Closing, and which for purposes of the unaudited pro forma condensed combined financial statements is presented at such $300,000

floor; plus or minus (iv) the amount, if any, by which Estimated Closing Net Working Capital is greater than, or less than, the Net Working

Capital Target of $855,669, in each case as defined in the SPA. The SPA additionally provides for a post-closing true-up under Section

1.04(d) consisting of (A) a Closing Cash Balance Adjustment equal to the Final Cash Balance minus the Estimated Closing Cash Balance,

and (B) a Net Working Capital Adjustment Amount equal to the Final Net Working Capital minus the Estimated Net Working Capital, with the

aggregate of such two amounts (the “Final Adjustment Amount”) settled in cash between the Parties within five Business Days

after final determination.

Following the Closing, the Target will continue

operating its business at the Target’s existing facility pursuant to a duly executed commercial Lease Agreement to be entered into

at Closing between the Target and Malcolm E Smith and Mary B Smith; Malcolm and Mary Smith Trust (the “Lease Agreement”),

as required by the SPA. Mr. Badeau will continue to serve as President of the Target following the Closing pursuant to an Employment Agreement

to be entered into at Closing in substantially the form attached as Exhibit B to the SPA (the “Badeau Employment Agreement”).

Under the SPA, the Sellers have agreed to remain available to the Buyer for a period of six (6) months after the Closing Date to provide

reasonable transition services, including assistance with required financial audits, operational knowledge transfer, and other reasonable

post-Closing transition matters, and have agreed to a three-year non-competition restriction within the State of California commencing

on the Closing Date. In addition to the Indemnification Holdback, the Sellers have agreed to indemnify the Buyer under the SPA for, among

other matters, (i) all Taxes of the Target attributable to Pre-Closing Tax Periods under ARTICLE VI of the SPA, (ii) Losses related to

any employee being ineligible or unauthorized to work in the United States as of the Closing Date under Section 7.01(c) of the SPA, and

(iii) the Salvador Rivera litigation matter under Section 7.01(d) of the SPA, the Indemnification Holdback being earmarked as collateral

for clause (iii).

The foregoing description of the SPA and the Transaction

does not purport to be complete and is qualified in its entirety by reference to the full text of the SPA, which is filed as an exhibit

to the Buyer’s Current Report on Form 8-K originally filed with the SEC reporting the entry into the Transaction, and is incorporated

herein by reference.

The following unaudited pro forma condensed combined

financial information has been prepared to illustrate the effect of the Transaction and has been derived by applying pro forma adjustments

to the historical consolidated financial statements and other financial information of the Buyer and the Target. The historical financial

information has been adjusted in the unaudited pro forma condensed combined financial statements to give effect to pro forma adjustments

that are (1) directly attributable to the Transaction, (2) factually supportable, and (3) with respect to the statements of operations,

expected to have a continuing impact on the combined results of the Buyer.

The unaudited pro forma condensed combined balance

sheet combines the historical audited consolidated balance sheet of the Buyer as of December 31, 2025 with the historical reviewed balance

sheet of the Target as of February 28, 2026, and has been prepared to reflect the Transaction as if it occurred on December 31, 2025.

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2025 combines the historical audited

consolidated results of operations of the Buyer for the year ended December 31, 2025 with the historical results of operations of the

Target for the trailing twelve months ended February 28, 2026, in each case giving effect to the Transaction as if it occurred on January

1, 2025. The Target’s fiscal year ends May 31, which differs from the Buyer’s December 31 fiscal year end. The Target’s

trailing twelve months ended February 28, 2026 has been constructed by taking the Target’s audited results of operations for the

fiscal year ended May 31, 2025, subtracting the Target’s reviewed results of operations for the nine months ended February 28, 2025,

and adding the Target’s reviewed results of operations for the nine months ended February 28, 2026. This presentation aligns the

Target’s historical period in length with the Buyer’s twelve-month reporting period and brings the Target’s period end

to within ninety-three days of the Buyer’s fiscal year end, as permitted by Rule 11-02(c)(3) of Regulation S-X. Because the Buyer’s

and Target’s respective periods nonetheless have different period-ends, with an approximately two-month period of overlap (December

31, 2025 to February 28, 2026), the unaudited pro forma condensed combined statement of operations is presented for illustrative purposes

only; the basis of presentation, including the residual period mismatch between the Buyer’s and Target’s reporting periods,

is described further in the accompanying notes.

The unaudited pro forma condensed combined financial

statements are presented for illustrative purposes only and are based on the estimates and assumptions set forth in the accompanying notes.

They do not purport to indicate the results that would actually have been obtained had the Transaction been completed on the assumed dates

or for the periods presented, nor do they purport to project the future operating results or financial position of the Buyer following

the consummation of the Transaction.

The unaudited pro forma condensed combined financial

statements should be read in conjunction with:

● the accompanying notes to the unaudited pro forma

condensed combined financial statements;

● the historical audited consolidated financial

statements of the Buyer as of and for the year ended December 31, 2025 (with comparative information as of and for the year ended December

31, 2024), and the related notes, included in the Buyer’s Annual Report on Form 10-K filed with the SEC on March 30, 2026;

● the historical reviewed financial statements

of the Target as of and for the nine months ended February 28, 2026 (with comparative information for the nine months ended February 28,

2025), and the related notes, included as Exhibit 99.1 to this Current Report;

● the historical audited financial statements of

the Target as of and for the fiscal year ended May 31, 2025 (with comparative information as of and for the fiscal year ended May 31,

2024), and the related notes, included as Exhibit 99.2 to this Current Report; and

● the Acquisition Agreement filed as Exhibit 10.1 to this Current Report.

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE

SHEET

AS OF DECEMBER 31, 2025

Buyer

Historical

Target

Historical

Acquisition

Pro Forma

Adjustments

Pro Forma

Combined

ASSETS

Current assets:

Bank

$ 5,402,333

$ 681,509

$ (4,956,509 )

$ 1,127,333

Account Receivables, net

245,423

388,048

633,471

Other receivables

95,108

4,000

99,108

Prepaids and deposits

461,239

24,232

485,471

Inventory

95,098

502,717

50,272

648,087

Investments in securities

572,054

344,336

916,390

Total current assets

6,871,255

1,944,841

(4,906,238 )

3,909,859

Fixed Assets, net

885,520

463,772

250,000

1,599,292

Right-of-use-asset

1,241,527

Intangibles, net

2,892,397

1,500,000

4,392,397

Goodwill

977,774

1,362,087

2,339,861

Total assets

$ 12,868,473

$ 2,408,613

$ (1,794,150 )

$ 13,482,936

LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$ 782,633

$ 164,463

$ -

$ 947,096

Due to related parties - current

1,032,895

Consideration Payable

206,250

225,000

431,250

Notes payable – current

108,034

(108,034 )

Lease liability - short term

247,627

Accrued settlement liability

225,000

Derivative liabilities and convertible debt

1,672,891

Total current liabilities

3,942,296

497,497

116,966

4,556,759

Lease liability - long term

972,843

Notes payable – non-current

85,000

Deferred tax liabilities

30,972

Total liabilities

5,031,111

497,497

116,966

5,645,574

Common stock

645

Retained earnings

1,901,116

(1,901,116 )

Additional paid-in capital

28,856,496

10,000

(10,000 )

28,856,496

Accumulated other comprehensive income

(2,339 )

Accumulated deficit

(21,017,440 )

Total stockholders’ (deficit) equity

7,837,362

1,911,116

(1,911,116 )

7,837,362

Total liabilities and stockholders’ equity

$ 12,868,473

$ 2,408,613

$ (1,794,150 )

$ 13,482,936

The accompanying notes are an integral part of

these financial statements

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT

OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

Buyer Historical

Year Ended

December 31, 2025

Target Historical

Twelve Months

Ended

February 28,

2026

Acquisition

Pro Forma

Adjustments

Note

Pro Forma

Combined

Revenue

$ 590,084

$ 4,694,791

$ -

$ 5,284,875

Cost of Goods Sold (1)

404,770

4,256,303

4,661,073

Gross Profit

185,314

438,488

623,802

Operating expenses:

Selling, general and administrative

6,253,463

116,998

(330,999 )

(a)

6,039,462

Depreciation and amortization

96,145

Repairs and maintenance

717,654

Total operating expenses

7,067,262

116,998

(330,999 )

6,853,261

Loss from operations

(6,881,948 )

321,490

330,999

(6,229,459 )

Other income (expense):

Total other income (expense), net

(867,820 )

33,342

9,926

(b)

(824,552 )

Loss from continuing operations before income taxes

(7,749,768 )

354,832

340,925

(7,054,011 )

Income tax expense

(30,972 )

(14,647 )

(45,619 )

Loss from continuing operations

(7,780,740 )

340,185

340,925

(7,099,630 )

Income from discontinued operations, net of tax

32,927

Net profit / (loss)

(7,747,813 )

340,185

340,925

(7,066,703 )

Foreign currency translation adjustment

(2,002 )

Total comprehensive loss

$ (7,749,815 )

340,185

340,925

(7,068,705 )

Net loss per share - basic and diluted:

Continuing operations

$ (382.32 )

$ (348.84 )

Discontinued operations

1.62

Weighted average of common shares outstanding - basic and diluted

20,352

(1) Includes a non-recurring inventory write-down of approximately

$750,588 within the Target’s historical Cost of Goods Sold. See Note 4(c) to the unaudited pro forma condensed combined financial

statements.

The accompanying notes are an integral part of

these financial statements

Notes

to Unaudited Pro Forma Condensed Combined Financial Statements

Note 1 - Accounting for the Acquisition

The unaudited pro forma condensed combined financial statements give

effect to the acquisition of A&B Aerospace, Inc. (the “Target” or “A&B”) by PMGC Holdings Inc. (the “Buyer”

or the “Company”) under the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations, with

the Buyer treated as the accounting acquirer. Under the acquisition method, the total purchase consideration is allocated to the identifiable

assets acquired and liabilities assumed based on their estimated fair values as of the Closing Date. The excess of the total purchase

consideration over the estimated fair value of the net identifiable assets acquired, if any, is recorded as goodwill.

For purposes of estimating fair value, where applicable, of the assets

acquired and liabilities assumed reflected in the unaudited pro forma condensed combined financial information, the Company has applied

the guidance in ASC 820, Fair Value Measurement, which establishes a framework for measuring fair value. Fair value represents an exit

price and is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market

participants at the measurement date.

As of the date of this Current Report on Form 8-K/A (this “Current

Report”), the Company has not finalized the valuation work necessary to determine the final fair values of the assets acquired and

liabilities assumed. Accordingly, the preliminary purchase price allocation included in these unaudited pro forma condensed combined financial

statements is based on management’s preliminary estimates. The preliminary purchase price allocation is subject to adjustment as

additional information becomes available and as additional analyses are completed during the measurement period (not to exceed one year

from the Closing Date). There can be no assurance that the finalization of the valuation work will not result in material changes from

the preliminary purchase price allocation.

As of the Closing Date, the total consideration

for the Acquisition included the following:

Cash consideration at Closing

$ 4,275,000

Indemnification Holdback

225,000

Cash paid to Sellers in respect of Estimated Closing Cash Balance

300,000

Total consideration

$ 4,800,000

The Indemnification Holdback of $225,000 is retained

by the Buyer at Closing and constitutes part of the total purchase consideration under ASC 805. The Holdback Amount is held by the Buyer

specifically to satisfy the Sellers’ indemnification obligations under Section 7.01(d) of the SPA in respect of the litigation matter

described in Section 3.14 of the Disclosure Schedules to the SPA, and is recognized at the Closing Date as a liability of the Buyer to

the Sellers, included within Consideration Payable on the unaudited pro forma condensed combined balance sheet. Pursuant to the SPA, in

the event that the indemnification claim resolves for an amount less than the Holdback Amount, the Buyer shall pay over to the Sellers

any remaining portion of the Indemnification Holdback within ten days of the final adjudication of such claim. The Target is being acquired

on a cash-free, debt-free basis. Accordingly, the unaudited pro forma condensed combined balance sheet reflects the Buyer’s assumption

of the $225,000 accrued litigation liability (Salvador Rivera), which is recoverable by the Buyer from the Indemnification Holdback under

Section 7.01(d) of the SPA, the pre-Closing payoff of the Target’s outstanding equipment notes payable totaling $108,034, and the

Sellers’ pre-Closing sweep of the Target’s cash balances down to the $300,000 minimum cash threshold required under the SPA.

The Estimated Closing Cash Balance and the at-Closing Net Working Capital adjustment are determined based on the Target’s actual

cash and net working capital balances as of the Closing Date as set forth on the Estimated Closing Statement delivered by the Sellers

prior to Closing pursuant to Section 1.04 of the SPA, with the Net Working Capital component compared to the Net Working Capital Target

of $855,669. The SPA additionally contemplates a post-closing true-up under Section 1.04(d) consisting of (i) a Closing Cash Balance Adjustment

equal to the Final Cash Balance minus the Estimated Closing Cash Balance, and (ii) a Net Working Capital Adjustment Amount equal to the

Final Net Working Capital minus the Estimated Net Working Capital. Because the Closing has not yet occurred and the foregoing amounts

cannot be determined as of the date of these unaudited pro forma condensed combined financial statements, no post-closing true-up amount

is reflected and the Estimated Closing Cash Balance is presented at the $300,000 minimum cash floor specified in the SPA.

The preliminary allocation of the purchase consideration

to the estimated fair values of assets acquired and liabilities assumed is as follows:

Assets acquired:

Cash and cash equivalents

$ 300,000

Accounts receivable, net

388,048

Inventory (at fair value)

552,988

Investments and other current assets

372,567

Property and equipment (at fair value)

713,772

Identifiable intangible assets

1,500,000

Liabilities assumed:

Accounts payable and accrued liabilities

(164,463 )

Accrued settlement liability assumed (Salvador Rivera)

(225,000 )

Goodwill (preliminary, residual)

1,362,087

Total consideration

$ 4,800,000

Note 2 - Basis of Presentation

The unaudited pro forma condensed combined financial

information has been prepared in accordance with Article 11 of Regulation S-X and has been derived from the historical financial statements

of PMGC Holdings Inc. (the “Buyer”) and A&B Aerospace, Inc. (the “Target”). The Buyer’s fiscal year

ends December 31. The Target’s fiscal year ends May 31. The Target’s reviewed balance sheet as of February 28, 2026 has been

combined with the Buyer’s audited consolidated balance sheet as of December 31, 2025, with an endpoint difference of fifty-nine

days, within the ninety-three day tolerance permitted by Rule 11-02(c)(3) of Regulation S-X. The Target’s historical results of

operations for the trailing twelve months ended February 28, 2026 have been combined with the Buyer’s audited consolidated results

of operations for the year ended December 31, 2025. The Target’s trailing twelve-month period has been constructed by taking the

Target’s audited results of operations for the fiscal year ended May 31, 2025, subtracting the Target’s reviewed results of

operations for the nine months ended February 28, 2025, and adding the Target’s reviewed results of operations for the nine months

ended February 28, 2026. Although the Target’s constructed twelve-month period is equal in length to the Buyer’s twelve-month

period, the period-ends differ, with an approximately two-month period of overlap (December 31, 2025 to February 28, 2026); the unaudited

pro forma condensed combined statement of operations is therefore presented for illustrative purposes only and is not necessarily indicative

of the results that would have been reported had the Target’s historical results of operations been presented over a period coterminous

with the Buyer’s. The pro forma adjustments have been identified and presented to provide relevant information necessary for an

illustrative understanding of the Buyer upon consummation of the acquisition of the Target pursuant to the Stock Purchase Agreement (the

“SPA”), in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The unaudited pro forma condensed combined financial statements are presented at the major caption level for the Target as permitted by

Rule 11-02(c)(3) of Regulation S-X.

The assumptions and estimates underlying the pro

forma adjustments are described in the accompanying notes. The unaudited pro forma condensed combined financial information has been presented

for illustrative purposes only and is not necessarily indicative of the operating results or financial position that would have been achieved

had the acquisition occurred on the dates indicated. Further, the unaudited pro forma condensed combined financial information does not

purport to project future operating results or financial position following the consummation of the acquisition. The pro forma adjustments

represent management’s estimates based on information available as of the date of this unaudited pro forma condensed combined financial

information and are subject to change as additional information becomes available and analyses are performed.

The Buyer and the Target had no historical relationship

prior to the Transaction; accordingly, no adjustments were required to eliminate activities between the Buyer and the Target.

Note 3 - Reclassification Adjustments

The unaudited pro forma condensed combined balance

sheet and condensed combined statements of operations have been adjusted to reflect certain reclassifications of the Target’s historical

financial statements to conform to the Buyer’s financial statement presentation.

Note 4 - Pro Forma Adjustments

Adjustments to Unaudited Pro Forma Condensed

Combined Balance Sheet

1. Reflects the cash and consideration entries arising from the Transaction. The Buyer pays $4,275,000 in

cash to the Sellers at Closing (the Closing Purchase Price) and an additional $300,000 to the Sellers in respect of the Estimated Closing

Cash Balance, and retains the $225,000 Indemnification Holdback as a liability of the Buyer to the Sellers, recorded within Consideration

Payable. Pursuant to the SPA, the Sellers, prior to Closing, (i) sweep $381,509 of the Target’s cash on hand in excess of the $300,000

minimum cash threshold and (ii) cause the Target’s outstanding equipment notes payable, totaling $108,034, to be paid off in full

out of the swept proceeds, with the result that the Target enters Closing on a cash-free, debt-free basis with $300,000 of cash and no

equipment notes payable. The Buyer assumes the $225,000 accrued litigation liability (Salvador Rivera) included in the Target’s

historical balance sheet; that liability remains on the unaudited pro forma condensed combined balance sheet and is recoverable by the

Buyer from the Indemnification Holdback under Section 7.01(d) of the SPA. The aggregate cash adjustment of $4,956,509 reflected in the

unaudited pro forma condensed combined balance sheet equals the $4,275,000 Closing Purchase Price plus the $300,000 paid by the Buyer

in respect of the Estimated Closing Cash Balance plus the $381,509 cash swept by the Sellers.

2. Reflects the preliminary allocation of the total purchase consideration of $4,800,000 to the estimated

fair values of the assets acquired and liabilities assumed under ASC 805, and the elimination of the Target’s pre-merger equity

remaining after the Sellers’ pre-Closing cash sweep described in Adjustment 1 (Additional Paid-In Capital of $10,000 and Retained

Earnings of $1,519,607, aggregating $1,529,607, the latter representing the Target’s historical Retained Earnings of $1,901,116

less the $381,509 cash swept by the Sellers and charged to Retained Earnings). The preliminary fair value adjustments to the Target’s

historical balances are: (i) an inventory step-up of $50,272 to reflect estimated selling price less cost to complete and reasonable margin

in accordance with ASC 805-20-30-1; (ii) a property and equipment fair value increase of $250,000 to reflect estimated fair value based

on management’s preliminary assessment pending an independent appraisal; (iii) recognition of $1,500,000 of identifiable intangible

assets, expected to comprise customer relationships, trade name, and backlog, with useful lives to be determined upon completion of an

independent valuation; and (iv) recognition of $1,362,087 of goodwill as the residual of consideration over the fair value of the net

identifiable assets acquired. The Company has not yet completed the valuation work necessary to finalize the fair values of the assets

acquired and liabilities assumed or to determine the useful lives of the identifiable intangible assets. The preliminary purchase price

allocation is subject to change as additional information becomes available, and the final allocation may differ materially from the preliminary

amounts presented herein, including reallocations between identifiable intangibles and goodwill and changes in inventory and property

and equipment fair values.

3. Reflects the period differences between the Buyer’s and Target’s respective reporting periods.

The Target’s reviewed balance sheet as of February 28, 2026 has been combined with the Buyer’s audited consolidated balance

sheet as of December 31, 2025, an endpoint difference of fifty-nine days, within the ninety-three day tolerance permitted by Rule 11-02(c)(3)

of Regulation S-X. The Target’s results of operations for the trailing twelve months ended February 28, 2026, constructed as described

in Note 2, have been combined with the Buyer’s audited consolidated results of operations for the year ended December 31, 2025.

The Target’s trailing twelve month period and the Buyer’s fiscal year overlap by approximately ten months and differ in their

respective endpoints by fifty-nine days; accordingly, the unaudited pro forma condensed combined statement of operations is presented

for illustrative purposes only, and the combined results are not indicative of the results that would have been reported had the Target’s

results of operations been presented over a period coterminous with the Buyer’s.

Pro Forma Condensed Combined Statements of

Operations

The following transaction accounting adjustments

have been reflected in the Acquisition Pro Forma Adjustments column of the unaudited pro forma condensed combined statement of operations:

(a) Owner compensation reduction and elimination of factoring fees.

Reflects a net reduction of $330,999 to Selling, general and administrative expense, comprising (i) a net reduction of $290,934 in owner

compensation expense, reflecting the elimination of the historical fully-loaded compensation of both Mr. Smith and Mr. Badeau as the

Target’s owner-employees less Mr. Badeau’s continuing compensation as President pursuant to the Badeau Employment Agreement

at his historical annual rate of $171,546, and (ii) the elimination of $40,066 of third-party invoice factoring fees incurred by the

Target during the trailing twelve months ended February 28, 2026, which the Buyer expects to discontinue post-Closing by funding the

Target’s working capital from cash on hand. With respect to clause (i), the historical combined fully-loaded owner compensation

of the Sellers (Mr. Smith and Mr. Badeau) for the Target’s fiscal year ended May 31, 2025 was approximately $463,826, comprising

base wages and employer payroll taxes derived from the Target’s ADP payroll records. The Sellers’ historical owner compensation

applicable to the trailing twelve months ended February 28, 2026 has been derived using the same build-up methodology described in Note

2 (i.e., the Target’s fiscal year ended May 31, 2025 of $463,826, less an estimate of the comparable nine months ended February

28, 2025 of $347,870 derived as nine-twelfths of fiscal 2025 (owner compensation having been substantially flat year-over-year), plus

actual owner compensation for the nine months ended February 28, 2026 of $346,524), resulting in trailing twelve month historical owner

compensation of approximately $462,480. The $290,934 owner compensation adjustment represents the difference between such trailing twelve

month historical owner compensation and Mr. Badeau’s continuing compensation under the Badeau Employment Agreement at his historical

annual rate of $171,546. Both components of the adjustment are directly attributable to the Transaction, factually supportable, and expected

to have a continuing impact on the combined results.

(b) Interest expense reversal. Reflects the elimination of $9,926

of interest expense recognized during the Target’s trailing twelve months ended February 28, 2026 on the Target’s INTECH

Funding and US Bank Equipment Financing notes payable, which the Sellers are required under the SPA to pay off in full prior to Closing

on a cash-free, debt-free basis. The adjustment is directly attributable to the Transaction, factually supportable, and expected to have

a continuing impact on the combined results.

Cost of Goods Sold for the trailing twelve months ended February 28, 2026 includes a non-recurring inventory write-down of approximately

$750,588, comprising the write-off of scrap inventory and the reclassification and write-off of orphan inventory items identified during

a comprehensive physical inventory review performed by the Target during the period. Management considers this charge to be non-recurring

in nature and does not expect it to recur in future periods. The $750,588 charge is reflected within the Target Historical column of the

unaudited pro forma condensed combined statement of operations and is not separately captioned on the face of the statement. No pro forma

adjustment has been made to remove this charge from the Target’s historical results, as the write-down does not meet the definition

of a Transaction Accounting Adjustment under Rule 11-02(a)(6) of Regulation S-X (i.e., it does not reflect the accounting for the Transaction

and would otherwise constitute a normalization of the Target’s historical operating results). Had the $750,588 charge been excluded

from the Target’s historical Cost of Goods Sold, the Target’s historical Gross Profit and Loss from operations for the trailing

twelve months ended February 28, 2026 would each have been higher by $750,588 on a pre-tax basis, and the pro forma combined Loss from

continuing operations before income taxes for the year ended December 31, 2025 would have been reduced accordingly. This disclosure is

provided for transparency with respect to the comparability of the Target’s historical results of operations and is not, and should

not be construed as, a pro forma adjustment under Article 11 of Regulation S-X.

(d) Other items not reflected. The unaudited pro forma condensed

combined statement of operations does not reflect adjustments for amortization of identifiable intangible assets, depreciation of the

property and equipment fair value step-up, or recognition of inventory fair value step-up in cost of goods sold, in each case because

the Company has not yet completed the valuation work necessary to determine the useful lives of the identifiable intangible assets, the

remaining useful life of the stepped-up property and equipment, or the timing of inventory turnover. These adjustments will be reflected

upon finalization of the purchase price allocation and may have a material impact on future periods.

EX-99.4 — PRESS RELEASE DATED MAY 13, 2026

EX-99.4

Filename: ea029009801ex99-4.htm · Sequence: 6

Exhibit 99.4

PMGC Holdings (NASDAQ: ELAB) Acquires A&B

Aerospace, Inc.

● Precision

machining and aerospace, defense manufacturing company contracted by long standing Tier 1

customers that include Boeing, Honeywell International Inc., and Moog Inc.*

● AS9100D

and ISO 9001:2015 certified

NEWPORT

BEACH, CA, May 13, 2026 (GLOBE NEWSWIRE) – PMGC Holdings Inc. (Nasdaq: ELAB) (“PMGC” or the “Company”),

a diversified holding company currently executing a targeted roll-up strategy in U.S.-based precision manufacturing companies, has acquired

A&B Aerospace, Inc. (“A&B Aerospace” or “A&B”),

Founded

in 1948, A&B Aerospace is a precision machining and aerospace manufacturing company specializing in high-tolerance parts and assemblies

for the aerospace industry. Headquartered in Azusa, California, the company provides advanced CNC machining, honing, grinding,

and precision deburring services, supporting a wide range of aerospace and defense applications. A&B Aerospace operates more than

twenty modern CNC machines with full 5-axis machining capabilities and maintains AS9100 and ISO 9001 certifications. Known for its long-standing

reputation for quality, reliability, and on-time delivery, the company serves leading aerospace customers with both metal and non-metal

machining solutions while maintaining tolerances as tight as ±0.0001”.

The acquisition of A&B Aerospace marks PMGC’s

fifth acquisition in the past twelve months and advances the Company’s previously announced roll-up strategy focused on assembling

a U.S. precision manufacturing platform of AS9100D-certified CNC machining businesses serving the aerospace, defense, and industrial end

markets.

A&B Summary Financial Information

For the trailing twelve-month period ended February

28, 2026, A&B Aerospace recorded approximately $5.0M in revenue and approximately $610K in management-adjusted EBITDA**.

** Management-adjusted EBITDA is a non-GAAP

financial measure. The figures above are unaudited and have not been audited or reviewed by an independent registered public accounting

firm. See “Non-GAAP Financial Measures and Unaudited Financial Information” below.

Summary of Transaction

PMGC acquired 100% of the issued and outstanding

shares of A&B Aerospace from its selling shareholders, on a cash-free, debt-free basis. The base purchase price is $4,500,000 in cash,

consisting of $4,275,000 paid at closing and a $225,000 indemnification holdback retained by PMGC at closing. The purchase price is subject

to a customary post-closing adjustment based on a final cash balance and a net working capital adjustment relative to a net working capital

target, as set forth in the acquisition agreement. In connection with the closing, Jack Badeau, the current President and long-tenured

leader of A&B Aerospace, will continue serving in his role pursuant to an employment agreement. A&B Aerospace will also continue

operating from its existing facility in Azusa, California under a lease entered into at closing.

Strategic Rationale: A&B Aerospace Fits

PMGC’s Platform Thesis

PMGC’s acquisition strategy targets businesses

positioned within durable, high-value industrial verticals. PMGC believes A&B Aerospace exemplifies the core attributes the Company

seeks in its precision manufacturing platform: high technical barriers to entry, mission-critical applications, an established blue-chip

customer base, and direct exposure to U.S. industrial and defense supply chain demand. As prime defense contractors and Tier 1 aerospace

customers increasingly prioritize onshoring and supply chain security, demand for certified, U.S.-based precision shops continues to grow.

The Company believes that once a precision machining supplier is qualified on a customer program, customer retention is materially reinforced

by the rigorous requalification processes and first article inspection requirements associated with changing manufacturers, creating durable,

hard-to-displace customer relationships. PMGC believes A&B Aerospace, with 76 years of continuous operating history, AS9100D and ISO

9001:2015 certifications, and entrenched relationships with Tier 1 customers including Boeing, Honeywell, and Moog, reflects exactly this

profile.

Aerospace and Defense Market Tailwinds

Commercial aerospace is in the midst of a multi-year

production ramp. Boeing’s 2025 Commercial Market Outlook forecasts global demand for approximately 43,600 new commercial aircraft

over the 20-year period from 2025 through 2044, with the global commercial fleet projected to nearly double to approximately 49,600 aircraft.¹

Sustained backlog growth at the major airframers is translating into higher build rates and a corresponding step-up in demand across the

aerospace component supply chain.

On the defense side, U.S. budget authority continues

to expand. Congress enacted approximately $839 billion in discretionary FY2026 appropriations for the U.S. Department of Defense under

the Department of Defense Appropriations Act, 2026.² PMGC believes federal reshoring and onshoring initiatives, supply

chain security priorities, and continued procurement and sustainment funding for legacy and next-generation programs are driving a structural

increase in demand for certified, U.S.-based precision manufacturers.

On the supply side, qualified domestic manufacturers

holding AS9100D certification represent a narrow segment of the broader U.S. machining industry. OEMs and Tier 1 aerospace and defense

customers are increasingly consolidating onto a smaller number of reliable, scalable, qualified suppliers, and the rigorous requalification

and first article inspection requirements associated with changing manufacturers create durable, hard-to-displace customer relationships.

PMGC believes the combination of expanding aerospace and defense demand and a structurally constrained supply of qualified domestic precision

manufacturers creates a favorable long-term backdrop for the Company’s precision manufacturing platform.

About A&B Aerospace, Inc.

Founded in 1948, A&B Aerospace is a precision

aerospace manufacturing company specializing in high-tolerance machining, complex assemblies, and engineered components for the aerospace

and defense industries. Headquartered in Azusa, California, the company provides advanced CNC machining, grinding, honing, and precision

deburring services for mission-critical applications. With decades of manufacturing expertise, A&B Aerospace supports leading aerospace

customers through a commitment to quality, reliability, and on-time delivery. The company operates a modern manufacturing platform with

advanced multi-axis machining capabilities and maintains AS9100 and ISO 9001 certifications to meet the rigorous standards of the global

aerospace industry.

For more information, visit https://www.abaerospace.com.

About PMGC Holdings Inc.

PMGC Holdings Inc. is a diversified holding company

that manages and grows its portfolio through strategic acquisitions, investments, and development across various industries. We are committed

to exploring opportunities in multiple sectors to maximize growth and value. For more information, please visit https://www.pmgcholdings.com.

Non-GAAP Financial Measures and Unaudited Financial

Information

This press release contains certain financial

information that has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including

a reference to “management-adjusted EBITDA.” Management-adjusted EBITDA is a non-GAAP financial measure that reflects customary

adjustments, including normalizations for non-recurring items, owner-related compensation and benefits, and other adjustments customary

in private company transactions. The financial figures presented in this press release are preliminary, unaudited, and have not been audited

or reviewed by an independent registered public accounting firm. The trailing twelve-month period presented does not necessarily correspond

to A&B Aerospace’s fiscal year. Non-GAAP financial measures are not intended as a substitute for, or superior to, financial

measures prepared in accordance with GAAP, may differ from similarly titled measures used by other companies, and are subject to inherent

limitations. Actual results, including those that will be reflected in PMGC’s subsequent SEC filings under purchase accounting and

on a GAAP basis, may differ materially from the figures presented above. Investors should not place undue reliance on the preliminary,

unaudited figures contained in this press release and should refer to PMGC’s filings with the U.S. Securities and Exchange Commission

for financial information prepared in accordance with GAAP.

Forward-Looking Statements

Statements contained in this press release regarding

matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation

Reform Act of 1995, as amended. Words such as “believes,” “expects,” “plans,” “potential,”

“would” and “future” or similar expressions such as “look forward” are intended to identify forward-looking

statements. Forward-looking statements are made as of the date of this press release and are neither historical facts nor assurances of

future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business,

future plans and strategies, projections, anticipated events and trends, the economy, activities of regulators and future regulations

and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks

and changes in circumstances that are difficult to predict and many of which are outside of our control. Although the Company believes

that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn

out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. Therefore,

you should not rely on any of these forward-looking statements. These and other risks are described more fully in PMGC’s filings

with the United States Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the

Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 30, 2026, and its other documents

subsequently filed with or furnished to the SEC. Investors and security holders are urged to read these documents free of charge on the

SEC’s web site at www.sec.gov. All forward-looking statements contained in this press release speak only as of the date on which

they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events

that occur or circumstances that exist after the date on which they were made.

IR Contact: IR@pmgcholdings.com

Sources

Boeing, 2025 Commercial Market Outlook, June 2025. Available at https://www.boeing.com/commercial/market/commercial-market-outlook.

U.S. Senate Committee on Appropriations, “Congress Approves FY 2026 Defense Appropriations Bill,” February 3, 2026; Department of Defense Appropriations Act, 2026 (Division A of P.L. 119-75).

As referenced in the company’s financial statements and company website, www.abaerospace.com, A&B is contracted by Tier 1 customers that include Boeing, Honeywell, and Moog.

The acquisition was previously announced in the

Company’s press release dated June 24, 2025, regarding the signing of a non-binding letter of intent to acquire the target company.

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