2025 Annual Report Against Forced Labour and Child Labour in Supply Chains

---

1. Structure, Activities, and Supply Chains

Psycho Bunny Inc. is a Canadian corporation, incorporated under the Canada Business Corporations Act as of January 6, 2021. We operate as a direct-to-consumer business within the luxury menswear and kids’ wear sectors. In the United States, our operations are conducted through our fully owned subsidiary, Eighteen Hundred, Inc. Together, the organization maintains a robust retail and wholesale presence across North America and beyond. In Canada, we are present in approximately 100 points of sale with approximately 300 employees, while our US operations via Eighteen Hundred, Inc. include over 1,000 points of sale and nearly 900 employees. Our international reach is further supported by partnerships in the United Kingdom, Latin America, the Middle East, South Africa, and Japan.

Our supply chain is anchored by high-quality Pima cotton primarily sourced from Peru, where we manufacture the majority of our signature polos and shirts made of cotton. Additional manufacturing for fleece, outerwear, and accessories is conducted in China, with specialized production in Portugal, Turkey, and Vietnam.

Responsibility for identifying, assessing, and responding to forced labour and child labour risks is a joint responsibility managed by our Sourcing team, with assistance from special projects, procurement, and legal departments. This collaborative framework provides the governance structure required for senior-level oversight and the integrated management of these risks.

2. Policies in Relation to Forced Labour and Child Labour

Psycho Bunny opposes all forms of forced labour and child labour, as further detailed in our Supplier Code of Conduct enforcing our commitment to ensure that all those involved in our supply chain are not subject to forced or child labour, benefit from a safe working environment and adequate wages. As a first step to prevent and reduce the risk of forced labour and child labour in relation to our activities and in our supply chain, we conduct periodic internal reviews of where any associated risks could be present. This review entails assessing our suppliers and requesting the contact information of any upstream factories used for manufacturing Psycho Bunny products. A third-party auditor conducts social compliance audits on our suppliers and any upstream factories, and issues any corrective action plans required subsequent to the findings of the audits. Psycho Bunny reserves its right to terminate its relationship with a supplier that fails to participate in such audits or fails to respond to the corrective action plans.

Psycho Bunny’s policies and due diligence process were strengthened during the 2024 reporting period by the implementation and execution of our Supplier Code of Conduct, mandating an independent accredited auditor to monitor supplier’s compliance with the Supplier Code of Conduct, and gathering the contact information of our suppliers’ upstream factories.

During the 2025 Reporting Period, we have advanced our governance by implementing a new onboarding process for all prospective suppliers. In addition to executing the Supplier Code of Conduct, any new supplier undergoes a rigorous social compliance review and a third-party audit before being integrated into our production cycle.

3. Risk Management Processes

We recognize that identifying risks to people is a dynamic process that requires visibility beyond our direct suppliers. While our finished goods manufacturers are closely monitored, we acknowledge that the most significant risks for forced or child labour often exist further upstream in the raw material extraction and textile processing phases. To address this, we have successfully gathered location and contact information for our upstream factories during the 2025 Reporting Period. This data allows us to evaluate transit risks and the involvement of labour intermediaries in deeper tiers of our supply chain. These risk management processes are updated annually to account for shifts in global sourcing and are managed by a cross-functional team with senior-level oversight.

4. Due Diligence and Remediation

Our due diligence framework relies on a combination of internal oversight and third-party social compliance audits. In the 2025 Reporting Period, we achieved a significant milestone by auditing 100% of our Peruvian factories for social compliance matters. As a result, 58% of our total unit goods produced during the year originated from facilities that underwent a formal audit in 2025. We utilize a color-coded grading system — Green, Yellow, Orange, and Red — to monitor supplier performance. Any factory receiving an Orange or Red rating is immediately required to enter a Corrective Action Plan (CAP). We are currently managing two factories on active CAPs to address identified compliance gaps. While we aim to support suppliers through remediation, we reserve the right to terminate relationships if progress is not maintained. To date, we have not identified any instances of forced or child labour that necessitated the remediation of income loss for vulnerable families.

5. Training Provided to Employees

Training is a cornerstone of our efforts to prevent and reduce risks within our operations. Psycho Bunny provides a mandatory training session on forced labour and child labour for all corporate employees and field employees in certain jurisdictions, and optional training sessions for the remaining employees. Developed in partnership with an external organization, the curriculum is designed to educate staff on forced labour, child labour and on identifying indicators of exploitation and understanding the impact of purchasing practices on modern slavery risks. The training is integrated into our ongoing professional development package, ensuring that frontline retail staff, procurement teams and senior management remain vigilant and informed of their roles in maintaining a clean supply chain.

In the 2025 Reporting Period, this training was further reinforced by the implementation of our Employee Code of Conduct, ensuring a cohesive approach to internal accountability. By integrating these modules into our annual professional development package, we ensure that our entire organization, from frontline retail staff to corporate teams, remains vigilant, informed, and actively engaged in maintaining a clean and ethical supply chain.

6. Assessing Effectiveness

We assess the effectiveness of our actions by tracking key performance indicators such as audit coverage percentages and the successful closure of corrective action items. The successful audit of 100% of our Peruvian production sites in 2025 demonstrates the measurable impact of our targeted due diligence. To further refine our assessment, we are implementing a supplier performance scorecard that includes specific compliance metrics. Looking forward to the 2026 reporting period, we have leveraged the information gathered this year to plan audits for our upstream factories with our third-party partners. This shift toward auditing Tiers 2 and 3 represents our commitment to continuous improvement and enhanced transparency in the global supply chain.

7. Approval and Attestation

This report was approved by the Board of Directors of Psycho Bunny Inc., in its capacity as the principal governing body for Psycho Bunny Inc. and on behalf of its subsidiary, Eighteen Hundred, Inc., on May 7, 2026.

In accordance with the requirements of the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act, and in particular section 11 thereof, I attest that I have reviewed the information contained in the report for the entities listed above. Based on my knowledge, and having exercised reasonable diligence, I attest that the information in the report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above.