Financial Analysis

NOTE 10 ACQUISITION AND RELATED TRANSACTIONS On April 1, 2025, the Company acquired 100 % of the outstanding equity interests of Las Villas Health Care, LLC (Las Villas) and DOCConsultations, LLC (DOCConsultations) for total cash consideration of $ 200,000 . The transactions were accounted for as business combinations in accordance with ASC 805. The transactions resulted in the recognition of goodwill of $ 117,694 . On April 1, 2025, the Company also acquired an 80 % controlling interest in MagneChef through the acquisition of Magnefuse LLC and Alicat, LLC for total cash consideration of $ 240,500 . This transaction was also accounted for as a business combination in accordance with ASC 805. The acquisition resulted in the recognition of goodwill of $2 34,068 and a noncontrolling interest of $ 60,126 . The following table summarizes the preliminary allocation of the aggregate purchase price to the estimated fair value of the assets acquired and liabilities assumed: Assets and Liabilities acquired from Villas, DOC, Magnefuse, LLC. and Alicat, LLC, are as follows: SCHEDULE OF ASSETS AND LIABILITIES ACQUIRED Cash $ 32,434 Inventory 36,605 Property and equipment 71,682 Intangibles assets 72,842 Total assets acquired 213,563 Accounts payable (64,699 ) Net Assets 148,864 Aggregate purchase consideration and noncontrolling interest 500,626 Goodwill $ 351,762 Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired and is primarily …

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NOTE 11 COMMITMENTS AND CONTINGENCIES Commitments and contingencies The Company accounts for contingencies in accordance with ASC 450, Contingencies. A liability is recorded when it is probable that a loss has been incurred, and the amount can be reasonably estimated. If a loss is reasonably possible but not probable, or if the amount cannot be estimated, the nature of the contingency and an estimate of the possible loss, if determinable, is disclosed. Remote contingencies are generally not disclosed unless related to guarantees. Legal Matters: From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. As of March 31, 2026, there were no pending or threatened legal actions that, in managements opinion, are expected to have a material adverse effect on the Companys financial position, results of operations, or cash flows. Derivatives and Short Positions: From time to time, the Company sells call options against its investments in publicly traded equity securities and maintains short positions in publicly traded equity securities. The open derivative contracts and short positions on March 31, 2026, were not material to the consolidated financial statements. …

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NOTE 9 DEBT The Company repaid in full its long-term debt - other during the year ended March 31, 2026. Prior to repayment, the outstanding balance consisted of an equipment loan bearing interest at 5.28 % per annum, with a contractual maturity date of March 12, 2027 . Interest expense related to this loan was de minimis for each of the years ended March 31, 2026, and 2025. The Company had no outstanding short-term business loans as of March 31, 2026. From time to time, the Company utilizes a margin loan facility with Charles Schwab, which bears interest at a floating rate, which was approximately 10 % per annum as of March 31, 2026. Borrowings under this facility are generally repaid from the proceeds of stock and option transactions and are collateralized by the Companys investments in equity securities. Interest expense related to the margin loan was approximately $ 14,000 and $ 10,000 for the years ended March 31, 2026, and 2025, respectively. …

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The Companys disaggregated revenue by category is as follows: SCHEDULE OF DISAGGREGATED REVENUE 2026 2025 For the Years Ending March 31, 2026 2025 Sale of pharmaceutical products and medical consultations $ 32,908,881 $ 30,027,373 Shipping and handling 2,485,908 3,090,251 Other 300,825 - Total revenue, net $ 35,695,614 $ 33,117,624 …

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NOTE 14 INCOME TAXES The components of the provision for income taxes for the years ended March 31, 2026, and 2025 are as follows: SCHEDULE OF COMPONENTS OF PROVISION FOR INCOME TAXES Components of Provision for Income Taxes 2026 2025 Current Federal $ 246,867 $ 85,581 State 13,753 31,195 Total Current Provision 260,620 116,776 Deferred Federal 1,297,697 (458,686 ) State (25,185 (120,132 ) Total Deferred Provision (Benefit) 1,272,512 (578,818 ) Change in Valuation allowance (2,044,808 ) 578,818 Total provision for Income Taxes $ -511,676 $ 116,776 The components of deferred tax assets and liabilities on March 31, 2026, and 2025, are approximately as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES 2026 2025 Year ending March, 31 2026 2025 Deferred Tax assets: Net Operating loss carry forwards $ 804,528 $ 1,446,256 Goodwill $ 0 $ 523,069 Depreciation $ (133,229 ) $ 33,700 Other $ 100,995 $ 66,966 Valuation allowance $ 0 $ (2,069,991 ) Net deferred tax asset $ 772,294 $ 0 A reconciliation of the U.S. statutory federal income tax rate to the Companys effective tax rate for the years ended March 31, 2026, and 2025 are as follows: SCHEDULE OF INCOME TAX EXPENSE RATES 2026 2025 Federal statutory income tax rate 21.0 % 21.0 % State taxes, net of federal benefit 4.32 % 4.35 % Change in Valuation Allowance (52.89 )% (17.17 )% Net effective tax rate (27.57 )% 8.18 % ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions. This fir …

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Recently issued accounting pronouncements In 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which updates the guidance for capitalizing internal-use software costs by introducing a principles-based recognition threshold that focuses on management authorization and committed funding and the probability of project completion and intended use, with explicit consideration of development uncertainty. The ASU also enhances related disclosures for capitalized software and does not change the guidance for software to be sold, leased, or otherwise marketed. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and for interim periods within those fiscal years, with early adoption permitted and multiple transition options available. The Company has not early adopted this guidance and is evaluating its impact on capitalization policies, expense recognition timing, and related disclosures; the impact is not expected to be material to the consolidated financial statements but will require additional disclosures. In 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which requires public business entities to present in the notes a tabular disaggregation of each relevant income-statement expense caption within continuing operations into specified natural categories ( …

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NOTE 13 RELATED PARTY TRANSACTIONS The Company pays compensation for service provided by two officers to the officers solely owned LLCs, Point96 Consulting, LLC and Tabraue Consulting, LLC. The Company leases office space under a short-term operating lease from an office of the Company from Zoolzy, LLC, an entity controlled by an officer of the Company, under a sub-lease agreement. Lease payments of $ 64,094 and $ 0 were made during the years ended March 31, 2026, and March 31, 2025, respectively and are included in selling, general and administrative expenses on the accompanying statements of income. …

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NOTE 15 SEGMENT REPORTING During the years ended March 31, 2026, and 2025 our Company was operated and managed as a 1 single reportable segment. Our Chief Operating Decision Maker (CODM), the Chief Executive Officer (CEO), evaluates performance and allocates resources on the basis of consolidated financial results. Because the Company has a single reportable segment, all segment financial information required by ASC 280 is already included in the consolidated financial statements. The Company is evaluating options for the reorganization of segments for the year ended March 31, 2027. …

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NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Principles of consolidation The accompanying consolidated financial statements include all the accounts of the Earth Science Tech, Inc. and its wholly owned subsidiaries RxCompound, Peaks, Avenvi, Mister Meds, Villas Health, DOConsultations, and majority owned subsidiary Magnechef (collectively, the Company). All intercompany transactions have been eliminated during consolidation. Use of estimates and assumptions The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas requiring material estimates are impairment of goodwill, provision for taxation, useful lives of depreciable assets, useful lives of intangible assets, recoverability of inventory and long-lived assets available for sale, commitments and contingencies, and going concern assessment. The estimates and underlying ass …

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NOTE 12 EQUITY Preferred stock: Preferred stock, par value $ 0.001 per share, 1,000,000 shares authorized; 1,000,000 and 1,000,000 shares issued and outstanding as of March 31, 2026, and March 31, 2025, respectively. The Company is authorized to issue 1,000,000 shares of Series B Preferred Stock, par value $ 0.001 per share. As of March 31, 2026, 1,000,000 shares of Series B Preferred Stock were issued and outstanding. The Series B Preferred Stock has a stated value of $ 0.001 per share and is not entitled to receive dividends. Holders of the Series B Preferred Stock have no conversion or exchange rights. In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Company, the Series B Preferred Stock is entitled to receive payment or distribution of a preferential amount prior to any payments or distributions to holders of common stock or other classes or series of capital stock, unless such class or series is expressly designated as senior to the Series B Preferred Stock. The Series B Preferred Stock ranks senior to the Companys common stock with respect to distributions upon liquidation and dissolution. The holders of the Series B Preferred Stock vote together with the holders of the Companys common stock and any other voting class of preferred stock as a single class on all matters submitted to shareholders, including the election of directors. Pursuant to the Certificate of Designation, the aggregate voting power of the outstanding Series …

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NOTE 16- SUBSEQUENT EVENTS On May 1, 2026, the Company entered into a privately negotiated agreement to repurchase 715,000 shares of its common stock at a purchase price of $ 0.07 per share, for aggregate consideration of $ 50,050 . On June 1, 2026, the Company entered into a second privately negotiated agreement to repurchase 600,000 shares of its common stock at a purchase price of $ 0.08 per share, for aggregate consideration of $ 48,000 . On May 26, 2026, the Company entered into a third privately negotiated agreement to repurchase an additional 450,000 shares of its common stock at a purchase price of $ 0.09 per share, for aggregate consideration of $ 40,500 . In addition, the Company repurchased and retired 1,385,392 shares of its common stock through open-market transactions at an average purchase price of approximately $ 0.15 per share. As a result of these transactions, the Company repurchased and retired an aggregate of 3,150,392 shares of its common stock for total consideration of approximately $ 346,359 .

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