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ele NEWS RELEASE Else Nutrition Reports Second Quarter 2026 Results Highlighting Improved Margins , Lower Net Loss and Path Toward Profitability VANCOUVER , BC , September 15 , 2026 - ELSE NUTRITION HOLDINGS INC . ( BABY ) ( BABYF ) ( " Else " or the " Company " ) , today reported financial results for the 2026 second quarter ended June 30 , 2026. All figures are in Canadian dollars unless otherwise indicated . The financial statements and MD & A are available on SEDAR under the Company's profile . " The second quarter continued to demonstrate the meaningful impact of the restructuring and cost - efficiency initiatives we have implemented over the past year , ” said Hamutal Yitzhak , Chief Executive Officer of Else Nutrition . " While revenue remained constrained by our limited working capital and resulting inventory shortages , including out - of - stock positions across many of our products and several of our best sellers , the underlying economics of the business continued to improve . We are currently completing production to replenish inventory , and restoring product availability remains our immediate commercial priority . " " For the first six months of 2026 , gross margin increased to approximately 32 % from approximately 13 % in the first half of 2025 , despite revenue declining to $ 2.49 million from $ 3.59 million . At the same time , operating expenses declined by approximately 32 % to $ 2.43 million from $ 3.60 million , and net loss was reduced by approximately 69 % to $ 1.61 million from $ 5.10 million . We believe these results demonstrate that the cost efficiencies achieved through our restructuring are sustainable and provide a substantially stronger operating foundation from which to scale . Notwithstanding these operational improvements , the Company continues to face significant working capital constraints and limited liquidity , and its ability to restore inventory levels , fully satisfy customer demand and execute its growth plans remains dependent on securing additional capital " . " Our current revenue performance does not reflect the level of consumer demand we believe exists for Else products ; rather , it reflects our present ability to finance production and maintain adequate inventory . Subject to securing sufficient capital to fund production and working capital , we believe restoring consistent availability of our core products can drive a meaningful recovery in revenue without rebuilding the cost structure that existed historically . With adequate funding to support production , inventory replenishment and growth , management believes the Company has a pathway to achieving initial profitability within approximately 12 to 15 months . " " Looking ahead , our immediate priorities are securing capital , rebuilding inventory , restoring service levels to customers and retailers , and converting the operational efficiencies achieved over the past year into sustainable financial performance . We remain focused on positioning Else to achieve positive cash flow and long - term profitability , " concluded Ms. Yitzhak .