Annual report
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Annual Report Year ending 30 June 2026 Trusted artificial intelligence — APAS ® Independence for pharmaceutical manufacturing
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Chair’s Letter to Shareholders .................................6 CEO and Managing Director’s Report ......................8 Directors’ Report ........................................................13 Remuneration Report ................................................25 Auditors’ Independence Declaration .....................32 Statement of Comprehensive Income/(Loss)......33 Statement of Financial Position ............................34 Statement of Changes in Equity ............................35 Statement of Cash Flows ....................................... 36 Notes to the Financial Statements .......................37 Directors’ Declaration ...............................................71 Independent Auditor’s Report ................................72 Shareholder Information ..........................................76 Contents Clever Culture Systems (CCS) provides intelligent automation solutions to microbiology laboratories. Headquartered in Australia, the Company has developed a best-in-class technology, Automated Plate Assessment System (APAS ® ) Independence, using validated artificial intelligence to automate the imaging, analysis and interpretation of microbiology culture plates for improved healthcare delivery. APAS Independence is the only US FDA-cleared artificial intelligence technology for automated culture plate reading. The product is currently in use globally in 9 countries and being sold to microbiology laboratories in the pharmaceutical manufacturing sector for the reading of environmental monitoring culture plates and to clinical laboratories as an in vitro diagnostic for infectious diseases. Clever Culture Systems ABN 95 107 670 673 Directors The names of the directors in office at the time of the Annual Report are: Rebecca Wilson Independent Chair of the Board of Directors Brenton Barnes Chief Executive Officer and Managing Director Ian Wisenberg Non-Executive Director Dan Hill Non-Executive Director Company Secretary Raymond Ridge Chief Financial Officer Raymond Ridge Principal Place of Business & Registered Office 16 Anster Street Adelaide SA 5000 Phone: +61 8 8227 1555 Website: cleverculturesystems.com Lawyers Thomson Geer Lawyers 19 Gouger Street Adelaide SA 5000 Auditors HLB Mann Judd Audit (SA) Pty Ltd 169 Fullarton Rd Dulwich SA 5065 Share Register Computershare Investor Services Pty Limited GPO Box 1903 Adelaide SA 5001 Listed Securities CC5: Ordinary Shares CC50A: Options expiring 15 November 2025
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Chair’s Letter to Shareholders .................................6 CEO and Managing Director’s Report ......................8 Directors’ Report ........................................................13 Remuneration Report ................................................25 Auditors’ Independence Declaration .....................32 Statement of Comprehensive Income/(Loss)......33 Statement of Financial Position ............................34 Statement of Changes in Equity ............................35 Statement of Cash Flows ....................................... 36 Notes to the Financial Statements .......................37 Directors’ Declaration ...............................................71 Independent Auditor’s Report ................................72 Shareholder Information ..........................................76 Contents Clever Culture Systems (CCS) provides intelligent automation solutions to microbiology laboratories. Headquartered in Australia, the Company has developed a best-in-class technology, Automated Plate Assessment System (APAS ® ) Independence, using validated artificial intelligence to automate the imaging, analysis and interpretation of microbiology culture plates for improved healthcare delivery. APAS Independence is the only US FDA-cleared artificial intelligence technology for automated culture plate reading. The product is currently in use globally in 9 countries and being sold to microbiology laboratories in the pharmaceutical manufacturing sector for the reading of environmental monitoring culture plates and to clinical laboratories as an in vitro diagnostic for infectious diseases. Clever Culture Systems ABN 95 107 670 673 Directors The names of the directors in office at the time of the Annual Report are: Rebecca Wilson Independent Chair of the Board of Directors Brenton Barnes Chief Executive Officer and Managing Director Ian Wisenberg Non-Executive Director Dan Hill Non-Executive Director Company Secretary Raymond Ridge Chief Financial Officer Raymond Ridge Principal Place of Business & Registered Office 16 Anster Street Adelaide SA 5000 Phone: +61 8 8227 1555 Website: cleverculturesystems.com Lawyers Thomson Geer Lawyers 19 Gouger Street Adelaide SA 5000 Auditors HLB Mann Judd Audit (SA) Pty Ltd 169 Fullarton Rd Dulwich SA 5065 Share Register Computershare Investor Services Pty Limited GPO Box 1903 Adelaide SA 5001 Listed Securities CC5: Ordinary Shares CC50A: Options expiring 15 November 2025 WHAT WE DO Support the safe manufacture of drug products, free from contamination, to ensure patient safety. Environmental monitoring of production facilities is a critical step in demonstrating contamination control. APAS® Independence provides reliable and scientifically validated automation to deliver efficiency’s and improve data quality in drug manufacture. Preparation of environmental monitoring plates during drug manufacture. 33
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A proven solution for environmental monitoring in pharmaceutical labs PHARMACEUTICAL MANUFACTURING Demonstrated to deliver enhanced performance and meet the regulatory requirements of pharmaceutical GMP manufacturing. Traditional laboratory APAS Independence equipped lab Analyst only need to read the 2-10% of plates with growth detected. Culture plates Clean rooms Incubation (~5 days) Two analysts read 100% plates to analyse growth Environmental monitoring Automated culture plate reading No growth > 90% Batch release automatically Growth detected ~2–10% confirmed manually Critical decision point APAS Independence provides automated imaging, analysis and interpretation of microbiology culture plates using AI. APAS validated AI has been demonstrated to meet the stringent regulatory requirements for use in GMP manufacturing processes. GMP validated AI for environmental monitoring 4
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Sterile manufacturing global market opportunity. APAS Independence is designed to meet the needs of the largest manufacturing facilities with the greatest to gain from automation. Pharmaceutical addressable market Value of instrument sale over 7 years Pharmaceutical market opportunity^ $1.2M $2.8B Upfront capex + recurring revenue model (SAAS and Service) Total addressable market 2,300 INSTRUMENTS >8% Est. CAGR - Attractive market dynamics Land and expand sales strategy Growing customer adoption with leading global manufacturers Land and expand sales strategy gaining traction with leading pharmaceutical manufacturers. AstraZeneca Boehringer Ingelheim Bristol Myers Squibb CSL Behring Novo Nordisk Pfizer Thermo Fisher (Patheon) Global pharma customer* ~100 APAS instruments ~$51M CAPEX Opportunity ~$10M ARR SaaS / Recurring Near term expand opportunity - global pharma customers AstraZeneca Validation complete APAS Independence instrument landed1 APAS Independence instruments installed globally12 *APAS Independence placement with Top-20 pharmaceutical manufacturer. Not named due to confidentiality restrictions. ^ Australian dollars (USD:AUD: 1.4). Market opportunity of AU$2.8B based on 2,300 APAS ® Independence over expected 7 years based on internal Company market research 5
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Chair’s Letter to Shareholders A particular achievement of the year was the continued delivery of our Land and Expand strategy. During FY26, we progressed placements and orders with leading global pharmaceutical companies, while also expanding within existing customer groups. This matters because each new customer relationship creates the opportunity not only for an initial deployment, but for broader adoption across global manufacturing networks over time. That dynamic is already evident in the growth of AstraZeneca’s installed base, and we expect the additional pharmaceutical companies engaged during FY26 to provide further expansion opportunities in the coming year. We finished the year with 11 new placements of APAS® Independence, eight of which were to leading pharmaceutical manufacturers including Novo Nordisk, Boehringer Ingelheim, Bristol Myers Squibb, and CSL Behring, who join additional top-20 global companies now in the process of adopting the technology. This takes our installed base to over 30 instruments, with AstraZeneca using APAS® Independence in routine operations and establishing it as best practice across their largest global manufacturing facilities. We were also encouraged to secure three new sales into the clinical laboratory sector, reflecting the strengthening profile of APAS® as a core platform in microbiology innovation. Equally as importantly, we are seeing multiple customers advocating for APAS® Independence. During the year, AstraZeneca, Bristol Myers Squibb and Pfizer presented positive data and operating experience with APAS® Independence at international industry conferences, while AstraZeneca’s implementation was also recognised through a major innovation award in Germany. This level of external customer advocacy is distinctive. It is powerful validation not only of the product’s technical performance, but also of its importance to the broader pharmaceutical industry as companies seek to improve environmental monitoring practices, strengthen data integrity and support the highest standards of global manufacturing quality. At the centre of this opportunity is APAS® Independence itself. The Board believes the Company is uniquely positioned through a technology that has been repeatedly demonstrated and validated in rigorous studies across a range of automated culture plate reading applications. In a market where trust, reproducibility and compliance are paramount, this differentiation is significant. It supports our proposition that APAS® Independence can play an increasingly important role as a halo technology for environmental monitoring across pharmaceutical manufacturing globally. The Company also maintained a strong focus on financial discipline throughout the year. We continued to manage capital prudently, supported recurring revenue growth from software licences and maintenance, repaid debt, and preserved a capital-efficient approach as we invested in commercial execution and customer support. That balance, ambition along with financial discipline, remains central to how the Board is thinking about growth. The year ahead is about converting progress into scale. With a broader base of high-quality pharmaceutical customers, increasing third-party validation and a growing installed footprint, the Company enters FY27 with momentum and clarity of purpose. Our focus will remain on sales execution and growth: landing additional strategic customers, expanding within existing accounts, and ensuring Clever Culture Systems continues to build its position as a trusted partner to the pharmaceutical industry. Finally, on behalf of the Board, I would like to thank our CEO Brent Barnes, his management team and employees for their commitment and professionalism, our customers for their trust and partnership, and our shareholders for their continued support. We believe the Company has strengthened its position meaningfully over FY26 and is well placed for the opportunities ahead. Best regards, Rebecca Wilson Chairperson FY26 was a year of disciplined progress for Clever Culture Systems. Building on the foundations established in FY25, the Company remained firmly focused on execution: broadening our pharmaceutical customer base, supporting existing customers as they advanced toward routine use, and continuing to demonstrate the value of APAS® Independence in one of the most highly regulated operating environments in the world. 6
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FY26 Highlights Doubling to 8 global pharmaceutical customers • Creating an opportunity of up to 100 APAS instrument sales for this customer group 11 APAS Independence placements achieved for the year • Met expectations and increasing annual recurring revenues Delivered complete environmental monitoring solution • Launched validated contact plate analysis module (Aug-25) New customer data demonstrates performances • Publications from AstraZeneca (Oct-25), Bristol Myers Squibb (Oct-25) and Pfizer (Nov-26) Growing industry recognition • APAS Independence awarded Professor Wallhäußer 2026 Pharmaceutical Technology Innovation Award (Mar-26) First EU APAS Discovery Day • >25 Attendees at AstraZeneca Macclesfield campus (Jun-25) FY27 Outlook Step change increase in sales growth expectations • Majority of sales to come from existing customers Growing revenue per customer • Expanded validation services and ARR with growing installed base Technology leadership in GMP validated AI • Building additional customer evidence, publications and data, impossible to replicate quickly APAS Pharmaceutical Product Timeline JANUARY 2023 AstraZeneca Product Development Partnership MARCH 2024 Settle plate AM validated and product launch AUGUST 2025 Contact plate AM launch Pfizer BMS OCTOBER 2025 Global customer data presented APRIL 2023 AstraZeneca development instrument purchased FEBRUARY 2024 First sale to Thermo Fisher AUGUST 2024 AstraZeneca purchase 5 instruments AstraZeneca order 2 more instruments Technology development DECEMBER 2024 AstraZeneca purchase 4 instruments Novo Nordisk Boehringer Ingelheim Big Pharma* JUNE 2026 CSL purchase APAS - 8 global pharma customers *Unnamed big pharma customer PRODUCT DEVELOPMENT AND VALIDATION INITIAL LAUNCH: EARLY ADOPTERS COME ON BOARD FULL PRODUCT AVAILABLE: GROWTH LED BY BIG PHARMA Sales: Land and expand strategy 2023 2024 2025 2026 7
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CEO and Managing Director’s Report FY26 was a year of strategic progress for Clever Culture Systems. We advanced the Land phase of our APAS Independence strategy by broadening our global pharmaceutical customer base, delivering 11 instrument placements across a more diversified customer set and adding new key accounts, including Novo Nordisk, Boehringer Ingelheim and CSL. This broader installed base now provides the foundation for the next phase of the strategy: expanding deployments across existing global accounts. Over the past two years, we have progressed from novel technology entrant into the pharmaceutical market, to an increasingly recognised leader for automated environmental monitoring plate reading. Importantly, customer advocacy and external conference participation have supported market awareness and credibility. We have established ourselves as leaders in the field of GMP-validated AI. Our 10+ years of experience developing AI solutions for medical and pharmaceutical applications has meant we have stayed current with best practice, following a data driven and scientific approach to product development. In a highly regulated market where validation, reliability and proven performance are critical to adoption, this experience represents an important competitive advantage that is difficult to replicate and a foundation for continued growth. Land and Expand foundations set FY2026 has been an important building block for the Company. In FY2025, we delivered 11 sales, however more than 80% of these sales were to a single customer. This showcased important customer adoption of APAS, however such customer concentration was limiting for a business with ambitions to build a scalable global platform. Our goal for FY2026 was to therefore execute on the “Land” phase of our Land and Expand strategy by bringing in new global pharmaceutical customers using APAS. We have made significant progress against our goal, delivering a further 11 APAS Independence placements but across a broader number of different customers. In the process, we have added new global key accounts to the business, such as Novo Nordisk, Boehringer Ingelheim and CSL that set the foundations for meaningful future sales growth potential. Each customer follows its own evaluation, validation and procurement process. Based upon currently identified sites and deployment opportunities, this expanded group of 8 global pharmaceutical customers alone represent the potential for approximately 100 additional instrument sales. This illustrates the strategic value of each individual global pharmaceutical customer being far more significant than the initial purchase of a single instrument. Our customers are evaluating the technology with a long-term, multiple year view, on a global site perspective. This is why the expansion of new global customers has been so critical in FY26. 8
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1. Australian dollars (USD:AUD: 1.4). Market opportunity of AU$2.8B based on 2,300 APAS® Independence over expected 7 years based on internal Company market research 2. Compound Annual Growth Rate of 8.1% from 2026 to 2033 (https://www.coherentmarketinsights.com/market-insight/sterile- injectables-market-201) 3. AUD$100,000 ARR per APAS® Independence sold multiplied by TAM of 2,300 APAS® Independence instruments = AUD$230M Sterile pharmaceutical manufacturing – $2.8bn addressable market The APAS Independence instrument is positioned to meet the requirements of the largest sterile manufacturers. These customers have the highest testing volumes and the most to gain, receiving the greatest economic value from automation (see image). We estimate the total market opportunity for APAS Independence in sterile drug manufacturing to be ~$2.8bn AUD1, with a CAGR of >8%2. This presents a large and growing market for our technology. With each unit sold generating approximately $1.2m over 7 years as a combination of an upfront capital equipment sale and ongoing revenues linked to the software service, there is an attractive annual recurring revenue opportunity building for the company, estimated at $230m per annum3. Targeting the highest value 50% of the market The most value to gain in an already large total addressable market. 30% 25% 20% 15% 10% 5% 0% <150 Small labs <300 plates/day Medium labs 300-1000 plates/day Large labs >1,000 plates/day 150-300 300-600 600-1000 >1000 SEGMENTATION BASED ON NUMBER OF ENVIRONMENTAL MONITORING CULTURE PLATES ASSESSED DAILY SAMPLES/DAY PERCENT OF TAM 15% 25% 10% Attractive market: Highest testing volumes Greatest economic return Largest lifetime value APAS Independence addresses the largest manufacturers: ~50% of the global opportunity TAM: 2,300 instrument opportunity 9 CEO and Managing Director’s Report
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Full product delivered for pharmaceutical market – Contact plate analysis module A critical R&D milestone for the Company was to complete the development and validation of the contact plate analysis module. Settle plates (90mm plate) and contact plates (55mm plate) are the two primary plate formats used by pharmaceutical manufacturers for environmental monitoring. Supporting both plate formats on a single, fully validated automation platform ensures we deliver a complete solution to our pharmaceutical customers. The new module was released to existing customers, available as a paid software and hardware upgrade on their existing APAS Independence instrument. For all new customers, the new capability was provided and the 90mm and 55mm analysis modules offered as a bundled software package to customers. Customer adoption has been strong with 100% of new APAS Independence instruments sold electing to purchase both settle and contact plate analysis modules. The availability of contact plates has been a critical decision factor for new customers, demonstrating the value of the full solution for our customers. Based upon customer adoption to date, we expect every customer will continue to buy APAS Independence with the bundled increased annual software license for both plate formats. Broader adoption increases our annual recurring revenues, delivering increased software licence fees associated with each installed instrument. Staying close to our customers The sales process for capital equipment in the pharmaceutical market takes time and requires a multi-layered decision-making process. This process is founded on decisions that will last many years, requiring value to be added to the business, but most importantly, to protect the safety of patients that use the products of our customers. As a result, the sales process is highly consultative, requiring us to build trust and confidence with the customer. This relationship is a long-term partnership. Customers typically enter a period of evaluation and validation before APAS is deployed into routine GMP use. During FY26, we further developed our validation services offering, creating an additional revenue opportunity for the Company while providing our customers with greater predictability and value through their technology implementation phase. This close engagement has been particularly important with our large global pharmaceutical customers. It provides us with a deep understanding of their implementation requirements and enables us to support customers through the validation and deployment process. These relationships are critical to delivering on our Land and Expand opportunity. During the year we established the APAS Expert User Group. This was customer led, designed to facilitate collaboration and opportunity and knowledge sharing on implementation, validation and regulatory strategies. The group met 3 times during FY26, including a face-to-face meeting hosted at AstraZeneca’s facility in the UK. The group provides direct insight into customer validation, deployment and regulatory requirements, helping CCS reduce implementation friction and improve the scalability of future enterprise deployments. APAS Discovery Day attendees at AstraZeneca, Macclesfield CEO and Managing Director’s Report cont. Annual Report 2026 10
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APAS - AI developed for pharmaceutical manufacturing Artificial intelligence has advanced significantly over the past decade and is now widely used across many aspects of everyday life. Adoption in high-risk, regulated industries such as pharmaceutical manufacturing has been more measured, reflecting the need for robust validation evidence and the potential patient-safety consequences of process failure. When manufacturing sterile drug products, manufacturers must follow Good Manufacturing Practices (or GMP). These standards are in place to ensure drugs are made safely and free from contamination. When these processes go wrong, the consequences are catastrophic, resulting in patient harm and at worst case, patient deaths4. Environmental monitoring is a critical control measure, designed to ensure drugs are made in a safe manufacturing environment. AI used in this context must be validated for use and supported by robust scientific data that demonstrates performance. APAS has always been developed and tested with this use case in mind. This is a major competitive advantage that differentiates our product from Generic AI applications and ensures our customers have trust in the product for deployment in their manufacturing environment. AI is a commodity technology – GMP validated AI is not Saying “our AI works” means nothing. Evidence and experience counts. 4. Another Death heading: https://edition.cnn.com/2023/05/19/health/ezricare-eye-drops-recall-update Generic AI applications Training on public unstructured data by generalists Performance generally limited to accuracy percentage performance Updated AI models released for whenever convenience No or limited audit trail requirements Fail gracefully with limited impacts, user simply tries again Months to launch GMP Regulated AI (APAS) Validated on specific organism data by experts (microbiologists) Performance proven to regulated pharmacopoeia requirements Strict change control, every change requiring evidence Full audit trail to 21 CFR Part 11 and Annex 1 requirements Failures risk patient safety and batch release of high-value products Years of method development, studies and internal controls vs 11 CEO and Managing Director’s Report
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FY27 Outlook – Expand opportunity sets expectations for growth Entering FY27, the Company has a strong qualified pipeline, including expansion opportunities across its global pharmaceutical customer base. Conversion timing will continue to depend on individual customer evaluation, validation, procurement and deployment processes. The Company remains focused on progressing these opportunities while maintaining disciplined cost and working-capital management. Annual recurring revenue has increased to $1.4 million as at the date of this report. Our eight existing customers represent an estimated opportunity for approximately 100 additional APAS Independence instruments. In addition, the Company enters FY27 with its strongest and most robust sales pipeline to date, comprising 180 qualified opportunities. Our focus remains on executing against our sales strategy to target the largest pharmaceutical customers globally. With our established installed base, our sales pipeline is maturing and we expect to deliver meaningful sales growth in FY27, driven through sales within existing customer networks. Disciplined financial management The Company has remained committed to a conservative approach to managing cash flows, and keeping costs aligned with future expected sales delivery. This is in an important focus for the Company, intended to protect shareholder value as we work towards consistent cash flow positive operations. Aligned with this strategy, we have invested selectively to ensure the Company can fulfill future sales orders. During FY26 we commenced the purchasing of instrument parts for a further 10 APAS instruments. Purchasing is phased, focussing initially on long-lead items providing manufacturing readiness while avoiding unnecessary inventory build. This commitment reflects the positive sales outlook that we have as we enter the 2027 Financial Year. CEO and Managing Director’s Report cont. Annual Report 2026 12
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Directors’ Report Your Directors present their report on Clever Culture Systems Ltd (CCS or the Company) and its 100% owned subsidiary Clever Culture Systems AG (together the Group) for the year ended 30 June 2026 (the Year) as at the date of this report. Directors The names of the Directors of CCS, in office at any time during or since the end of the year, are: Rebecca Wilson Independent Chair and Non-Executive Director Brenton Barnes Chief Executive Officer and Managing Director Daniel Hill Non-Executive Director Ian Wisenberg Non-Executive Director Directors have been in office since the start of the financial year to the date of this report, unless otherwise stated. Company Secretary The names of the individuals holding the position of Company Secretary at any time during or since the end of the year are: Raymond Ridge Principal Activities The principal activities of the Group during the Year remained those of developing and commercialising the APAS® Independence. There were no significant changes in the nature of the Group’s principal activities during the Year. Operating Results The Group recorded a net loss after tax for the year of $2.24 million (2025: $1.68 million profit). Dividends Paid or Recommended No dividends were paid, nor recommended to be paid for the year ended 30 June 2026. Director’s Report 13
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Review of Operations The 2026 financial year, has been an important year for Clever Culture Systems (CCS or the Company), moving from a year of Product Launch in 2025 financial year, to a year focussed on customer expansion. As part of the Company’s long-stated Land and Expand sales strategy, CCS set out a clear intent to build a customer base focussed on the largest pharmaceutical companies globally. This targeted approach focusses on customers that present the greatest sales opportunity, with the resources to validate new technologies and the potential to purchase multiple instruments across their manufacturing network. In this respect, 2026 financial year delivered customer expansion by adding a further 4 global pharmaceutical manufacturers to the Company’s APAS® Independence customer base (including Novo Nordisk, Boehringer Ingelheim, CSL and one unnamed top-20 customer), doubling the number from the prior year to 8. These global pharmaceutical manufacturers underpin the Company’s future sales pipeline, representing approximately 100 of the Company’s 180 qualified instrument sales opportunities. Moving into the 2027 financial year, the Company anticipates this broader existing customer base to be a significant contributor to sales growth, building upon the achievements delivered in FY25 and FY26. During the year, the Company completed 11 APAS® Independence instrument sales in total. This comprised of 3 sales to existing pharmaceutical customers, 4 new global pharmaceutical customers (new “Land” sales), one single site pharmaceutical customer and 3 clinical sales. The customer mix (pharmaceutical vs clinical) and instruments being sold for evaluation or under a lease arrangement resulted in a lower overall sales revenue compared to 2025 financial year with $4.3 million in revenue from customers (2025: $5.5 million). The continued sales progress has increased the Company’s annual recurring revenues from software and service to $1.3 million per annum (2025: $0.7 million). An important focus for the Company throughout the 2026 financial year has been supporting customers to progress through their evaluation and validation of the technology. This is a critical process for customers as the regulators require evidence that both demonstrates and documents the performance of the technology within their own manufacturing process. While this process takes time, once validated and implemented, APAS® is expected to remain embedded in the customer’s processes for up to seven years, reflecting the instrument’s engineering useful life. This means customers are making a long-term technology decision, adding significant value to each customer won and supporting the durability of CCS’s customer relationships. In total, the Company has 22 APAS® instruments deployed with pharmaceutical customers, with 10 now progressed into routine GMP use. Supporting customers into routine use of the APAS® will be an ongoing priority for the Company as an additional revenue contributor through support services and to execute on the Expand phase of the Land and Expand strategy. Presenting third-party customer performance data highlighting the performance of the APAS® technology has been a key goal for the Company. This independent validation of performance builds trust with new customers and serves to de-risk implementation for new customers. During the year, new Customer data was presented and shared at major conferences in the US, Europe and Australia. This included presentations from AstraZeneca, Bristol Myers Squibb and Pfizer. In addition, the Company has established an APAS® Expert User Group. This group was initiated and formed by existing large global pharmaceutical APAS® customers to share insights and collaborate on the integration of APAS® within their businesses. The group has the potential to act as a collective voice to industry and regulators on the benefits that APAS® and automation brings to pharmaceutical quality control process. The group met 3 times during the year, discussing validation, regulatory strategies and new product pipeline. The forum also participated in the Company’s inaugural APAS® Discovery Day, held at AstraZeneca’s facility in Macclesfield in June. This provided the opportunity to showcase the APAS® instrument in a real GMP laboratory setting and share direct user experience with new prospective customers. Product expansion has remained a critical R&D priority as the Company established APAS® Independence in the pharmaceutical market. In August 2025, the Company launched it’s contact plate analysis module, enabling APAS® Independence to analyse both 90mm (settle plates) and 55mm (contact plates). Together these plates cover the vast majority of environmental monitoring tests. The launch was a major milestone in the Company’s commercialisation strategy and completed a key component of the minimum viable product required for broad pharmaceutical market adoption. Importantly, the added capability has been a key driver for sales conversion throughout the year and has contributed to further increasing the annual recurring revenues for the Company. 14 Annual Report 2026
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Throughout the year the Company has maintained a disciplined cost management approach for the business. This has included balancing the holding inventory, and ordering of long lead time items to align with anticipated future sales timing. CCS finished the year with a cash balance of $1.7 million at 30 June 2026 and over $3.4 million in known or committed cash inflows expected over the subsequent two quarters. With the progress made during the 2026 Financial Year, the Company has laid the foundations to set sales growth expectations moving into 2027 Financial Year and beyond. Existing customers are expected to underpin future sales growth alongside the conversion of qualified sales opportunities. Financial Overview The consolidated net loss after income tax for the Year was $2.24 million, comprising a loss before income tax of $4.72 million and income tax benefit of $2.48 million. The loss before income tax of $4.72 million comprises: • $4.67 million in total income, as detailed above in the review of operations; • ($1.21) million for cost of goods sold; • ($0.63) million marketing and travel; • ($0.91) million customer support, sustaining engineering and development • ($3.81) million cash-based employee expenses; • ($1.26) million corporate, finance and other expenses; and • ($1.57) million non-cash based expenses including depreciation and share based payments. Compared to the prior year ended 30 June 2025, the loss before income tax has increased from a loss of ($0.09) million to a loss of ($4.72) million. The ($4.63) million change in the loss before income tax is attributable to: • ($1.00) million government grants included in the prior year, supporting the Contact plate development; • ($0.61) million reduction in revenue, net of cost of goods sold, maintenance and marketing expenses; • ($1.15) million more in staff expenses had been capitalised as part of the Contact plate development in the prior year; • ($0.36) million increase in development and sustaining engineering expenses following release of the Contact plates enhancement; • ($0.39) million increase in foreign exchange losses and finance expenses; • ($0.45) million increase in various other expenses including a new marketing resource based in the US; and • ($0.67) million increase in non-cash costs (depreciation, amortisation and share based payments). Financial Position Net assets of the Group increased by $1.9 million from $5.6 million at 30 June 2025 to $7.5 million at 30 June 2026. The increase largely reflects the $1.8 million increase in the net deferred tax asset associated with benefit of tax losses available to offset future taxable income. At 30 June 2026, the Group had available cash of $1.7 million together with expected cash inflows of at least $3.4 million in the next two quarters comprising trade receivables, the FY26 Research and Development Tax Incentive claim and committed inflows from customers. On the 30 June 2026, the Group entered an unsecured loan of $1.6 million to assist manage short-term working capital requirements. The loan is due for repayment on 31 December 2026, together with interest of $80,000. During the Year, CCS received $3.2 million in proceeds from options exercised, with $1.0 million of these proceeds being used to repay the South Australian Government loan. The loan is now closed (refer Note 13 of the annual financial statements). Director’s Report 15
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Significant Changes in State of Affairs There have been no significant changes in the state of affairs of the Group during the year. After Balance Date Events On 1 July 2026, the Company issued 16,000,000 unlisted options. The options have an exercise price of $0.033 and expire 30 June 2028. The options were associated with the establishment of a unsecured short term loan on 30 June 2026. The value of these options was fully expensed in the year ended 30 June 2026 (refer Notes 16 and 22). On 7 August 2026, 1,500,000 options expired (exercise price $0.157). The options were held by the Company’s CEO / Managing Director. On 13 August 2026, the Company issued 2,632,340 ordinary shares under the annual incentive plan for the Executive Team. The value of the incentive payment was awarded by the Board considering the performance of the Company against pre-set objectives, and the price per ordinary share was determined by the VWAP for the month of July 2026. Other than the above, there has not arisen any other matters or circumstances, since the end of the financial year, which significantly affected or could affect the operations of the Group, the results of those operations, or the state of the Group in future years. About CCS Clever Culture Systems (CCS) provides intelligent automation solutions to microbiology laboratories. Based in Adelaide, South Australia, the Company has developed a best-in-class technology, the Automated Plate Assessment System (APAS® Independence), using artificial intelligence and machine learning software to automate the imaging, analysis and interpretation of microbiology culture plates. The technology remains the only US FDA-cleared artificial intelligence technology for automated culture plate reading. The product is currently being sold to microbiology laboratories in the pharmaceutical manufacturing sector for the reading of environmental monitoring culture plates and to clinical laboratories as an in vitro diagnostic for infectious diseases. Thermo Fisher Scientific, Inc is the distributor of the APAS® Independence to clinical customers in the United States and selected countries in Europe. Environmental Issues The Group’s operations are not subject to significant environmental regulation under the laws of Australia. Key Risks This section contains an outline of the material business risks that may impact on CCS achieving its strategic objectives and business operations. Business Specific Risks Key risks relating to CCS are set out below. It is not, however, possible to describe all the risks to which CCS and its business may become subject to, and which may impact adversely on CCS’s prospects and performance. Specific risk factors which may have a significant impact on the future performance of CCS include the following: Funding risk The future viability of the Group is largely dependent on the number and timing of APAS® instrument sales, and on its ability to raise capital to finance its operations if required. An inability to achieve the Group's expected level or timing of sales, or to raise capital if needed, could have a negative impact on its financial condition and its ability to pursue its business strategies Risks relating to expansion in the pharmaceutical market Whilst expansion of sales into the pharmaceutical market are expected to drive the Group’s future sales growth, the level of sales that may be achieved remain impacted by several risks including the wider commercial appeal of the APAS® instrument and general economic and other conditions impacting end customers, including the potential re-emergence of a pandemic or other factors disrupting global trade. 16 Annual Report 2026
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However, the level of uncertainty associated with the commercial appeal of the APAS® instrument has reduced over the past year, noting the successful installation of nine instruments at AstraZeneca, an increased number of global pharmaceutical customers and an expanding pipeline of other advanced sales opportunities. Development risk In August 2025, the Group completed the development of an additional Analysis Module for use in environmental monitoring in the pharmaceutical industry. This new Analysis Module is considered critical to underpinning the commercial attractiveness of the APAS® Independence and a reduced risk remains that the desired level of performance and reliability may not be achieved in the coming customer evaluations of the new Analysis Module for Contact Plates. This may delay the adoption of the technology and the timing of sales. Supply chain risk The COVID-19 pandemic highlighted supply chain risks in many industries. The Group is reliant on domestic and international supply chains for the parts used in the manufacture of the APAS® instrument. Any factors that disrupt global trade generally or that impact particular suppliers, may result in prolonged lead times for instrument parts. The Group has taken pragmatic and cost-conscious risk mitigation measures for known long lead time parts. However, despite this mitigation strategy, there remains an inherent risk that lack of availability of parts may impact the Group's ability to fulfill sales demand, resulting in reduced or delayed sales, or may result in increased cost of parts. Competitor risk The APAS® Independence is the only automated instrument with off-the-shelf validated Analysis Modules available, with capacity to process both plate types commonly used in environmental monitoring. To date, the Group's main competitors have chosen different technology approaches. As sales of the APAS® instrument grow, it is possible the Group's competitors will seek to develop similar technologies that may compete directly or indirectly with the Group's products. This has the potential to impact the future growth prospects of the APAS® instrument. If competitors develop products or technologies that are more effective, the Group's current or future products may become obsolete or uncompetitive. Exchange rate risk The Group operates internationally and therefore fluctuations in prevailing exchange rates may negatively affect the Group’s profitability and financial position. Unhedged and unfavourable movements in foreign exchange rates may have an adverse effect on the Group's revenue and/ or cost of operating. The most common foreign currency utilised is US dollars. Regulatory risk In the pharmaceutical market, the APAS® instrument is not directly regulated, however there is an indirect risk that changes in the highly regulated processes for microbial quality control testing within pharmaceutical manufacturing, may impact demand for the APAS® instrument. In the clinical market, where the Group has an installed base of 15 instruments, the Group’s APAS® instrument and each Analysis Module is subject to regulatory clearance, product surveillance and registration. Although the APAS® instrument and certain Analysis Modules are already cleared and registered for sale in its key markets, there is a risk that regulatory requirements may change, increasing the costs and resources associated with maintaining regulatory compliance in this market. In addition, if regulators took the view that the Group had failed to comply with regulatory requirements, this could lead to enforcement action resulting in public warnings, infringement notices or the imposition of a pecuniary penalty. Director’s Report 17
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Intellectual property risk The Group seeks to protect its intellectual property through patents, trademarks, trade secrets, copyright and know-how. In particular, the Group has registered patents over the core APAS® technology for image capture and AI assisted software development for image reading and interpretation. Whilst the Group protects its intellectual property through these measures, there can be no guarantee that there will not be any unauthorised use or misuse of its intellectual property or reverse engineering of its software by competitors. If the Group fails to protect its intellectual property, competitors may gain access to proprietary information which could harm the Group’s business. There is a risk that the Group will not be able to register or otherwise protect new intellectual property it develops in the future. Competitors may be able to work around any of the applications or other intellectual property rights used by the Group, or independently develop technologies or competing products that are not covered by the Group's intellectual property rights. If the Group believes its intellectual property rights have been infringed, it may initiate or otherwise be involved in litigation against third parties for infringement, or to establish the validity, of the Group's rights. Any litigation, whether or not successful, could result in significant expense to the Group and divert the efforts of its personnel. In addition, any infringement could result in revenue loss and may be detrimental to CCS's reputation and brand value. The Group’s commercial success is, to a large extent, reliant upon its intellectual property being suitably protected and providing the Group with enforceable rights (through the registration of patents and trademarks). The Group cannot give assurance that the patents, trademarks or other intellectual property in existence today, or created in the future, will be able to be adequately protected. Artificial Intelligence Risk The increasing adoption of artificial intelligence (AI) in imaging presents both opportunities and risks for Clever Culture Systems. There is a risk that rapid advancements in AI technologies, coupled with evolving regulatory requirements, may outpace the Company’s product development and approval processes, potentially impacting competitiveness. Furthermore, reliance on AI- driven outputs without rigorous validation may expose the Company to compliance, reputational, or legal consequences if clinical outcomes do not meet required standards. To mitigate this risk, the Company maintains ongoing oversight of AI developments, regulatory trends, and ensures strict validation of AI applications in its solutions. General Risks Economic and government risks The future viability of the Group is also dependent on a number of other factors affecting performance of all industries including, but not limited to, the following: a) general economic conditions in jurisdictions in which the Group operates; b) changes in government policies, taxation and other laws in jurisdictions in which the Group operates; c) the interpretation of taxation laws by the relevant taxation authority differing from the Group's interpretation; d) the strength of the equity and share markets in Australia and throughout the world; e) movement in, or outlook on, exchange rates, import duties, interest rates and inflation rates in jurisdictions in which the Group operates; and f) natural disasters, industrial disputes, social upheaval or war in jurisdictions in which the Group operates. 18 Annual Report 2026
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Financial markets risks Share market conditions may affect the value of the Company’s quoted Shares regardless of the Group’s operating performance. Share market conditions may be affected by many factors including, but not limited to, the following: a) general economic outlook; b) interest rates and inflation rates; c) currency fluctuations; d) changes in investor sentiment toward particular market sectors; e) the demand for, and supply of, capital; and f) terrorism or other hostilities. The market price of securities can fall as well as rise and may be subject to varied and unpredictable influences on the market for equities in general. Neither the Company, nor the directors warrant the future performance of the Company or any return on an investment in the Company. Reputational risk Various issues may arise that could pose reputational risk and negatively impact the Group’s business dealings and prospects. These issues include appropriately dealing with potential conflicts of interest, legal and regulatory requirements, issues of ethics, money laundering laws, trade sanctions legislation, privacy, information security policies, trading practices and conduct by companies in which the Group holds strategic collaboration interests. Failure to address these issues appropriately could give rise to additional legal risk, subject entities within the Group to regulatory actions, fines and penalties, or harm the reputation of CCS or the Group among its shareholders, customers and investors. Risk of litigation, claims and disputes The Group is exposed to the risk of actual or threatened litigation or legal disputes in the form of claims by shareholders, regulatory authorities, employees, customers, competitors or partners, personal injury and property damage claims, environmental and indemnity claims, employee claims and other litigation and disputes. The Group may also need to institute proceedings from time to time, such as to defend a proprietary right. There is a risk that such litigation, claims and disputes could materially and adversely affect the Group's operating and financial performance due to the cost of defending and/or settling such claims, and could affect the Group's reputation. Legislative risk Changes in government regulations and policies, including potential changes to Australia’s tax laws and foreign tax laws relevant to the Group, may adversely affect the financial performance or the current and proposed operations of the Group. Force majeure Events may occur within or outside Australia that could impact upon the Australian economy, the Group’s operations and the price of the Company’s Shares. These events include but are not limited to acts of terrorism, an outbreak of international hostilities, fires, floods, earthquakes, labour strikes, civil wars, natural disasters, outbreaks of disease or other natural or man-made events or occurrences that can have an adverse effect on the Group’s ability to conduct business. Director’s Report 19
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Direct Interests Nil Ordinary Shares 3,814,286 Options Expiring 10 December 2027 Indirect Interests (Third Party Holdings) Parker and Wilson Investments Pty Ltd 27,194,800 Ordinary Shares 1,250,000 Options Expiring 19 December 2033 Directorships held in Other Listed Entities Alcidion Limited (ASX: ALC) Hansen Technologies (ASX: HSN) Vitura Health Ltd (ASX: VIT) Interest in Contracts Nil Rebecca Wilson Independent Chair of the Board of Directors Qualifications Bachelor of Arts (Deakin University) Post Graduate Certificate Applied Finance & Investment (FINSIA) GAICD (Australian Institute of Company Directors) Experience Rebecca Wilson is an experienced company director with private, ASX listed and not-for-profit organisations and has significant experience leading companies in important commercial activation phases working with CEOs as both an advisor and Non-executive Director to develop and execute effective business strategies that support accelerated and sustained growth. In an executive career that spanned 25 years, Rebecca held global leadership roles in marketing communication, investor relations, ESG, capital management, and corporate affairs. Rebecca is the Non-Executive Chair of global healthcare enterprise technology company Alcidion Limited (ASX ALC), Non-Executive Director of ASX listed enterprise technology company Hansen Technologies (ASX HSN), and Vitura Health (ASX VIT). She is also an Independent Non-Executive Director of Not-for-profit Tomisich Foundation and Veski. Information on Directors Information on the Directors of CCS as at the date of this report is as follows. 20 Annual Report 2026
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Information on Directors cont. Brenton Barnes Chief Executive Officer and Managing Director Direct Interests 98,545,581 Ordinary Shares 40,000,000 Options Expiring 10 December 2028 10,000,000 Performance Shares Expiring 10 December 2028 Indirect Interests (Third Party Holdings) Barnes' Love Work Live 713,606 Ordinary Shares Hawkeye SMSF Pty Ltd 40,000,000 Ordinary Shares Directorships held in Other Listed Entities Nil Interest in Contracts Nil Qualifications Master of Project Management (University of Adelaide) Diploma of Commerce (Sydney Institute of Business and Technology) Graduate, Australian Institute of Company Directors (Australian Institute of Company Directors) Experience Brent became CEO and Managing Director of Clever Culture Systems in 2016 and is a major shareholder. He brings a global, big-company vision and is strongly backing the Company’s growth potential. Brent has led the successful transition of its flagship AI and machine vision technology, APAS®, from invention to commercialisation. His focus on global commercial execution is driving sales growth while maintaining the Company’s leadership in technology innovation. Previously, Brent spent 11 years at Cochlear Limited (ASX:COH) as a Senior Executive, overseeing a broad range of global operational and strategic functions. Director’s Report 21
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Daniel Hill Non-Executive Director Direct Interests Nil Ordinary Shares 2,314,286 Options Expiring 10 December 2027 Indirect Interests (Third Party Holdings) Viking BCM PTY LTD 212,665,188 Ordinary Shares Directorships held in Other Listed Entities Nil Interest in Contracts Nil Qualifications Member of the Institute of Chartered Accountants Australia and New Zealand Masters of Applied Finance Masters of Business Administration Fellow of FINSIA Certificate in Governance Practice Experience Dan has a background working in finance, funds management and private equity. He is an experienced investor and business owner, with a track record of building successful businesses across a variety of industry sectors. With an entrepreneurial mindset, Dan brings a focus on revenue generation to drive the commercialisation and growth of the Company’s APAS® technology in the pharmaceutical and clinical markets. Dan is an experienced Company Director, having held board and company secretarial positions on a number of public and private companies. He strengthens the Board’s skillset through his business acumen and expertise in company strategy. Information on Directors cont. 22 Annual Report 2026
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Ian Wisenberg Non-Executive Director Direct Interests Nil Ordinary Shares 2,314,286 Options Expiring 10 December 2027 Indirect Interests (Third Party Holdings) Nil Directorships held in Other Listed Entities Nil Interest in Contracts Nil Qualifications Bachelor of Commerce (University of Cape Town) Certificate in Theory of Accounting (University of Cape Town) CPA (Certified Public Accountant – USA) – retired Experience Ian is an experienced life sciences executive, company director and adviser with more than 35 years of international business, corporate development, financing and investment experience. His career has focused on biotechnology and healthcare, including company formation and growth, access to capital, strategic partnerships, international expansion and advanced biomanufacturing. Ian has held senior executive and investment roles with BioCina, BioDuro and Bridgewest Group, with responsibilities spanning company formation, biotechnology manufacturing, strategic development, financing and international expansion. Ian has extensive relationships across the life sciences, investment and corporate sectors in Australia, the United States, Europe and Asia. He works with Australian and international life sciences companies on strategy, financing, commercialisation and global partnerships. Ian is Chairman and Chief Executive Officer of Triovance, Inc., a San Diego-based biotechnology company developing an advanced biologic therapy for chronic wounds. He is also a Director and investor in Preview Health, an Australian precision- health company focused on the earlier detection and monitoring of neurodegenerative disease, and Managing Director of BioGlobal Consulting Group. Information on Directors cont. Director’s Report 23
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Raymond Ridge Qualifications Bachelor’s Degree, Accounting and Finance at the University of South Australia. Member of the Institute of Chartered Accountants Australia and New Zealand Certificated Member of the Governance Institute of Australia. Experience Ray has held senior executive positions in finance, compliance and commerce across a range of industries. Ray is currently Company Secretary for one other ASX listed company and has previously held the role of Company Secretary for a number of other ASX listed companies. Company Secretary The following person held the position of Company Secretary at the end of the financial year: 24 Annual Report 2026
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Remuneration Report (Audited) This report details the nature and amount of remuneration of each Key Management Person of the Group. Remuneration Policy The Remuneration Policy of the Group has been designed to align Key Management Personnel objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific short-term incentives (STI) and long-term incentives (LTI) based on key performance areas affecting the Group’s financial performance. The key Nominations and Remuneration objectives of the Board are to appropriately and effectively attract and retain the best Executives and Directors to lead and manage the Group. This Remuneration Policy has been approved by the Board and has been tailored to ensure alignment between management and shareholder interests through: • Executive annual performance incentives based on key performance indicators (KPIs) comprising of financial and non-financial elements, and • Issue of options to Directors and Executives to encourage the alignment of personal and shareholder interests. 2026 2025 2024 2023 2022 Revenue & Other Income $4.67m $6.63m $1.71m $2.27m $2.90m Net Profit / (Loss) for the Year $2.24m $1.68m ($3.74m) ($22.52m) ($6.64m) Available Cash $1.70m $1.27m $2.35m $2.02m $2.79m Year-End Share Price $0.023 $0.016 $0.015 $0.030 $0.078 The year ended 30 June 2026 was an important period for CCS, expanding the penetration of its APAS® technology across the pharmaceutical market. In this context, the following milestones were considered most relevant in assessing the Group's performance for the Year and were taken into account in the assessment of the STI award for the CEO\Managing Director and the Executive Team: • Completion of the development of an APAS® Analysis Module for the Contact Plates application in the pharmaceutical market, including upgraded instrument hardware and operating system software. This has been the Company’s primary R&D priority and was released in August 2025. This was a significant milestone for the Group, with the now two completed Analysis Modules ensuring that the APAS® Independence is able to provide a complete solution for all culture plates used in environmental monitoring within pharmaceutical manufacturing globally. This was critical to enabling the progress of a number of customer opportunities. • Eight of the top 20 global pharmaceutical companies are now engaged as active customers. In particular, the Group supported the successful completion of four customer instrument evaluations and commenced another two customer evaluations during the Year. • While the Group did achieve 11 instrument placements in the Year (consistent with the 11 sales in the prior year ended 30 June 2025), and doubled the number of large global pharmaceutical customers from four to eight, only six of these placements resulted in full sales recognition in the Year. Of the five placements not fully recognised as sales in the Year, non-refundable deposits were received for two placements whilst the customers undertake an evaluation, one instrument was placed under a lease revenue model and two placements were to clinical customers through Thermo Fisher (using the last of their inventory). While this had a disappointing impact on the Group’s financial result for the Year, all of these five placements are expected to add to the Group’s sales prospects for the year ended 30 June 2027, as the evaluations to progress to full sales, lease income is received and any additional clinical sales now requiring an instrument purchase from CCS. The fixed remuneration component is determined by market conditions, with advice from remuneration specialists as required, so that the Group may recruit and retain the best available talent. The Board is responsible for approving remuneration structures and processes for short term and long term incentives. The Board is responsible for setting the CEO & Managing Director's annual key performance targets and assessing/measuring annually the achievement of the CEO & Managing Director against those targets. The relationship between the Board’s policy and the Group’s performance in terms of earnings and shareholder wealth is illustrated by the following table that shows the gross revenue, profits/(losses), available cash and closing CCS share prices on 30 June for the past five years. During the financial year, CCS’s share price traded between a low of $0.016 and a high of $0.037. Director’s Report 25
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Remuneration Report (Audited) cont. Non-Executive Director Terms and Conditions The Board’s policy is to remunerate Non-Executive Directors at market rates for comparable companies for time, commitment and responsibilities. The Board determines payments to Non-Executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate remuneration pool for Non-Executives Directors is $400,000, as approved by shareholders at CCS's 2023 AGM. Amounts in excess of this maximum, or a change to this maximum, are subject to approval by shareholders. Fees paid to Non-Executive Directors are $54,000 per annum and $89,000 for the Chair. Board approved an increase in fees paid to Non- Executive Directors to $59,400 per annum and $97,000 for the Chair, effective 1 July 2026. Director fees were last revised in October 2021. Fees for Non-Executive Directors are not linked to the performance of the Group to maintain independence. Directors’ fees for Australian resident Non-Executive Directors are inclusive of the superannuation guarantee contribution required by the government, which was 12% in the 2025/26 financial year. They do not receive any other retirement benefits. To align Directors’ interests with shareholder interests, the Board has set a framework where options are proposed to be issued to all existing Non-Executive Directors and newly appointed Non-Executive Directors in the future, subject to shareholder approval. The number of options are to be calculated as 60% of the Non-Executive Director’s annual fees divided by the exercise price. The exercise price being set by the 10-day VWAP immediately prior to Board approval. The options will vest two years following their issue date provided continued service as a Director and will expire three years following their issue date. The options are to be granted every two years and are next due to be issued in the year ended 30 June 2027 (subject to shareholder approval). To further strengthen alignment between Directors’ interests with that of shareholders, Non-Executive Directors are required to hold shares in CCS. This was formalised as a Board policy in March 2021, requiring all Non-Executive Directors to acquire the equivalent of one year's Directors fees within the first four years of their engagement as a Director. All Directors are in compliance with this requirement, subject to shareholder approval for the issue of 2,820,513 shares to a Director, Mr Wisenberg, in lieu of Director’s fees of $67,500 otherwise owing for the period 1 April 2025 to 30 June 2026, the number of shares proposed to be issued based on a monthly VWAP applicable to each month’s fees owing. Executive Terms and Conditions CEO and Managing Director The remuneration for the CEO and Managing Director has four components: • A salary package of $363,825 inclusive of statutory superannuation applied for the year ended 30 June 2026. The Board approved an increased to $410,000, effective 1 July 2026. • A maximum cash based annual incentive of 30% of the CEO and Managing Director's annual salary package. The maximum annual incentive was $109,148 for the year ended 30 June 2026. The proportion of the maximum incentive that is awarded each year is determined by the Board, based on their assessment of the achievement of preset objectives. At the commencement of each financial year, the objectives are set by the Board in key result areas of Sales & Distribution, Finance, Partnering/Pipeline Development and Corporate Strategy with an emphasis on achieving the Group’s financial goals. For the year ended 30 June 2026, Mr Barnes was awarded 45% of his maximum potential incentive amount or $49,117, taking into account the milestones as noted above. Mr Barnes has elected to receive 2,468,170 shares as payment of the incentive, subject to shareholder approval. The number of shares being based on the July 2026 VWAP of $0.0199 per share. • The Long-Term Incentive (LTI) consists of 40,000,000 unlisted options and 10,000,000 performance shares to incentivise, retain and reward the Company's CEO / Managing Director. The 40,000,000 options have an exercise price of $0.024, vested 10 June 2026 and expire 10 December 2028. The 10,000,000 performance shares vest into the same number of ordinary shares on 10 December 2028, subject to a share price performance hurdle $0.07 (based on a 90-day VWAP immediately prior to 10 December 2028) and continuity of service. 26 Annual Report 2026
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Executives All Executives receive a base salary, based upon performance, professional qualifications and experience, and superannuation, fringe benefits, options and performance incentives. The Managing Director reviews Executive packages annually with reference to the Group’s performance, individual performance, and comparable information from industry sectors and other listed companies in similar industries. There is an established annual incentive and LTI for the Executive team that aligns with performance targets, consistent with the Group's and the Managing Director's objectives for adding shareholder value. The purpose of the annual incentive and LTI for the Executive team is to align and motivate/reward performance in contributing to the Group's objectives and to assist with retention of Executives that are key to building shareholder value. All Executives participate in the annual incentive structure of up to a maximum of 10% of an individual’s base remuneration including superannuation. KPIs for the Executive Team are set in alignment with the CEO and Managing Director’s KPIs. The CEO/Managing Director assesses the performance of each individual against these KPI’s, which is then reviewed and approved by the Board. All Executive annual bonuses are payable in shares, with the number of shares being calculated by reference to the July VWAP following the end of the financial year. The Executive Team LTI aligns with the CEO/ Managing Director LTI options. Under the Executive Team LTI, 10,000,000 unlisted options were issued to each of the four Executives on 15 January 2025. The options have an exercise price of $0.024, vest 10 June 2027 subject to continuity of service and expire 10 December 2028. During the prior year ended 30 June 2025, 1,474,716 performance shares were issued to the Executive Team to minimise cash-based remuneration increases. These performance shares vested on 31 July 2025, resulting in the issue of 1,474,716 ordinary shares on 4 August 2025. Executive Key Performance Indicators (KPIs): KPIs are set annually by the Board: • To target areas believed to hold greater potential for business expansion and profit; • To cover financial and non-financial as well as short and long-term goals; and • Compared to budgeted figures for the Group and respective industry standards. Performance in relation to the KPIs is formally assessed annually, with annual incentives being awarded depending on an assessment of the KPIs achieved. KPIs are reviewed by the Board considering their desired and actual outcomes. The efficacy of the KPIs is assessed in relation to the Group’s goals and shareholder wealth, before the KPIs are set for the following year. KPIs for the Executive Team are set in alignment with the CEO and Managing Director’s KPIs, where appropriate these are adapted as appropriate for each individual. Any incentive payment is negotiated in line with achievement of KPIs and is approved by the Board. Superannuation Executives receive a superannuation guarantee contribution required by the government, which was 12% in the year ended 30 June 2026, they do not receive any other retirement benefits. Individuals may choose to sacrifice part of their salary to increase payments towards superannuation. Valuation of Shares and Options Shares are valued at the fair value of the services provided, or otherwise valued based on the market price of the shares provided, at the date of Board or shareholder approval to issue the shares, as applicable. Performance Shares are valued by reference to the underlying share price at the date of Board or shareholder approval to issue the shares, as applicable. Options are valued at their fair value using the Binomial option-pricing model. However, where Performance Shares or Options contain share-based hurdles, the valuation is determined using a Monte Carlo simulation. Director’s Report 27
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Remuneration Report (Audited) cont. Key Management Personnel Remuneration 2026 Cash Salary & Fees Cash Annual Incentive Superannuation Contributions Shares Options & Performance Shares Total Proportion Performance Based $000 $000 $000 $000 $000 $000 % Directors Mr B Barnes (1) (3) 334 - 30 49 216 629 13% Ms Wilson (4) (5) 89 - - - 23 112 - Mr D Hill (5) 54 - - - 13 67 - Mr I Wisenberg (5) (6) - - - 54 13 67 - Other Key Management Personnel Mr R Ridge (8) (10) (11) (12) 200 - - 11 47 258 4% Total 677 - 30 114 312 1,133 2025 Cash Salary & Fees Cash Annual Incentive Bonus Superannuation Contributions Shares Options & Performance Shares Total Proportion Performance Based $000 $000 $000 $000 $000 $000 % Directors Mr B Barnes (1) (2) (3) 313 - 33 91 143 580 19% Ms Wilson (4) (5) 89 - - - 16 105 - Mr D Hill (5) (13) 54 - - - 8 62 - Mr I Wisenberg (5) (6) 27 - - 14 8 49 - Mr B O’Dwyer (7) 20 - - - - 20 - Other Key Management Personnel Mr R Ridge (8) (9) (10) (11) (12) 132 - - 22 43 197 15% Total 635 - 33 127 218 1,013 (1) The Board determined an annual incentive payment for the CEO and Managing Director, based on an assessment of performance against the annual Corporate KPI’s, up to a maximum of 30% of his annual salary. The annual incentive for the year ended 30 June 2026 was $49,000 (2025: $91,000). Mr Barnes has elected to receive 2,468,170 shares as payment for the annual incentive, subject to shareholder approval (2025: 3,545,581 shares). The number of shares was based on the July VWAP following the end of the financial year of $0.0199 per share (2025: $0.0258). The remuneration under the annual incentive is considered performance based. (2) Based on the conclusions of a report from a Remuneration Specialist, 6,000,000 unlisted options were previously issued to the Company's CEO/Managing Director as a Long Term Incentive (LTI) in the year ended 30 June 2021. These options were voluntarily relinquished on 8 October 2024, ahead of shareholder consideration of a new LTI structure for the Company's CEO/Managing Director at the AGM held 14 November 2024 (refer Footnote 3 for details of the new LTI structure for the CEO/Managing Director). In accordance with AASB 2 “Share based Payments”, the $418,000 fair value of the options was being expensed over the vesting period through to 25 November 2025. Expensing of the Options ceased upon the relinquishment date of 8 October 2024, with $8,000 being expensed in the year ended 30 June 2025. (3) As part of a refreshed Long-Term Incentive (LTI), the Company issued 40,000,000 unlisted options and 10,000,000 performance shares to incentivise, retain and reward the Company's CEO / Managing Director. This follows the voluntary relinquishment of the previous LTI structure (refer Footnote 2). The securities were issued on 10 December 2024, following shareholder approval on 14 November 2024. The options have an exercise price of $0.024, vest on 10 June 2027 subject to continued service and expire 10 December 2028. The fair value of the options was calculated as $473,000, using the Binomial method. In accordance with AASB 2 “Share based Payments”, the $473,000 fair value of the options is being expensed over the vesting period through to 10 June 2027, with $184,000 expensed in the year ended 30 June 2026 (2025: $115,000). The 10,000,000 performance shares vest into the same number of ordinary shares on 10 December 2028, subject to a share price performance hurdle of $0.07 (based on a 90-day VWAP immediately prior to 10 December 2028) and continuity of service. The fair value of the performance shares was calculated as $130,000, using a Monte Carlo simulation. In accordance with AASB 2 “Share based Payments”, the $130,000 fair value of the shares is being expensed over the vesting period through to 10 December 2028, with $32,000 expensed in the year ended 30 June 2026 (2025:$20,000). Due to the vesting hurdles, the performance shares are considered performance based. (4) 1,250,000 options issued to CCS Chair, Ms Rebecca Wilson, as approved by shareholders on 29 November 2023. The options have a two-year vesting period and an expiry date of 19 December 2033. The combined fair value of the options was calculated to be $6,000. In accordance with AASB 2 “Share based Payment”, the fair value of the options is being expensed from the date of engagement on 1 July 2023 to the vesting date of 19 December 2025, with $1,000 being expensed in the year ended 30 June 2026 (2025: $2,000). (5) An issue of 3,814,286 options to Ms Rebecca Wilson (Non-Executive Chair) and 2,314,286 options each of Messrs Dan Hill and Ian Wisenberg (Non-Executive directors) on 10 December 2024, following shareholder approval. The options have a two-year vesting period and an expiry date of 10 December 2027. The fair value of the options was calculated to be $45,000 for the options issued to Ms Wilson , and $27,000 each for Messrs Hill and Wisenberg. In accordance with AASB 2 “Share based Payment”, the fair value of the options are being expensed over the two-year vesting period. For the year ended 30 June 2026, $22,000 being expensed for Ms Wilson (2025: $14,000) and $13,000 being expensed for each of Messrs Hill and Wisenberg (2025: $8,000). 28 Annual Report 2026
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(6) Mr Wisenberg commenced as Non-Executive Director on 1 October 2024. Mr Wisenberg elected to receive ordinary shares in lieu of cash based Director’s fees of $68,000 owing for the period 1 April 2025 to 30 June 2026, subject to shareholder approval. $54,000 was expensed in the year ended 30 June 2026 (2025: $14,000). Accordingly, the Company will seek shareholder approval, at the 2026 AGM, to issue 2,820,513 ordinary shares to Mr Wisenberg. The number of ordinary shares was based on a monthly VWAP applicable to each month’s fees owing. (7) Mr O’Dwyer retired as Non-Executive Director on 14 November 2024. (8) An Executive team LTI was implemented to mirror the LTI share price growth targets for the CEO and Managing Director. As part of this LTI, 550,000 options were issued on 14 January 2022 to Mr Ridge, to take up ordinary shares at an exercise price of $0.12 each. The options were to vest on 14 January 2026, subject to share price performance hurdles, and if not exercised expire on 14 April 2026. These options were voluntarily relinquished on 15 January 2025, as part of a refreshed Executive Team LTI options (refer Footnote 12). The fair value of the options was calculated as $30,000, using a Monte Carlo simulation, and was being expensed over the vesting period through to 14 January 2026. The expensing of the options ceased on the date of relinquishment, with the expense for the year ended 30 June 2025 being $4,000. Due to the vesting hurdles, these options were considered performance based. (9) The performance shares were granted on 15 February 2024 to Mr Ridge as part of a wider incentive provided to a number of staff in relation to the development of additional analysis module for use on the APAS® Independence in the pharmaceutical industry. The performance shares converted into the same number of ordinary shares on 31 January 2025, following successful completion of the analysis module. The performance shares were valued at $0.015 each, being the ASX closing price of the Company’s Ordinary Shares the day prior to Board approval to offer the performance shares. The total value of $5,000 was being expensed over the vesting period through to 31 January 2025, with $3,000 expensed in the year ended 30 June 2025. Due to the vesting hurdles, these options were considered performance based. (10) All Executives participate in the annual incentive structure up to a maximum of 10% of an individual’s base remuneration including superannuation. KPIs for the Executive Team are set in alignment with the CEO and Managing Director’s KPIs. The CEO/Managing Director assesses the performance of each individual against these KPI’s, which is then reviewed and approved by the Board. All Executive annual incentives are payable in shares. The annual incentive for Mr Ridge for the year ended 30 June 2026 was assessed as $11,000 (2025: $22,000), payable through the issue of 572,291 shares (2025: 856,473 shares). The number of shares was based on the July VWAP following the end of the financial year of $0.0199 per share (2025: $0.0258). The remuneration under the annual incentive is considered performance based. (11) 1,474,716 performance shares were issued to four executives on 30 August 2024 as part of their annual remuneration review, to minimise cash-based remuneration increases. 438,269 of these shares were issued to Mr Ridge. The fair value of the shares issued to Mr Ridge was calculated as $8,000, being the estimated cash renumeration increase otherwise forgone. The number of shares issued was based on $0.01688 per share, being 5-day VWAP of the Company’s ordinary shares immediately prior to Board approval. In accordance with AASB 2 “Share based Payments”, the fair value of the performance shares is being expensed over the vesting period through to 31 July 2025, with $1,000 expensed in the year ended 30 June 2026 (2025: $7,000). The resulting shares were issued on 4 August 2025. (12) 40,000,000 options were issued to four executives on 15 January 2025, as a refreshed Executive Team LTI to incentivise, retain and reward key staff. The option terms align with that of the LTI options issued to the Company's CEO / Managing Director (refer Footnote 3), with an exercise price of $0.024, vesting on 10 June 2027 subject to continuity of service and expire 10 December 2028. Mr Ridge received 10,00,000 of these options. The options were valued at $0.0118 per option or $118,000 in total using the binomial method on 14 November 2024, being the date the Board approved the offer to employees. In accordance with AASB 2 “Share based Payments”, the $118,000 total fair value of the options is being expensed over the vesting period through to 10 June 2027, with $46,000 expensed in the year ended 30 June 2026 (2025: $29,000). The previously issued Executive Team LTI was voluntarily relinquished (refer Footnote 8). (13) Mr Hill commenced as Non-Executive Director on 14 December 2023. Voting at 2025 AGM CCS received 98.8% of ‘yes’ votes on its remuneration report for the 2025 financial year. CCS did not receive any specific feedback at the AGM on its remuneration report. This concludes the Remuneration Report, which has been audited. Meetings of Directors During the financial year to 30 June 2026, twelve meetings of Directors were held. Attendances by each Director during the reporting period were: Number Eligible to Attend Number Attended Ms R Wilson 12 12 Mr B Barnes 12 12 Mr D Hill 12 12 Mr Ian Wisenberg 12 12 The functions of the Audit and Risk Committee are being performed by the Board. The functions of the Nominations and Remuneration Committee being performed by the Board. Indemnifying Officers or Auditor CCS has paid a premium to insure each of the Directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct, while acting in the capacity of Director of CCS or any subsidiary, other than conduct involving a willful breach of duty. The amount of premium has not been disclosed as it is confidential under the terms of the insurance policy. The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Director’s Report 29
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Meetings of Directors cont. Option Details At the date of this report, the unissued ordinary shares of CCS under option are as follows: Date of Expiry Exercise Price Number of Options No of Shares due on Conversion 22/12/2026 $0.320 100,000 100,000 28/02/2027 $0.400 100,000 100,000 23/03/2027 $0.050 7,500,000 7,500,000 22/05/2027 $0.025 11,500,000 11,500,000 10/12/2027 $0.014 8,442,858 8,442,858 23/06/2028 $0.034 9,600,000 9,600,000 30/06/2028 $0.033 16,000,000 16,000,000 10/12/2028 $0.024 80,000,000 80,000,000 28/11/2029 $0.080 500,000 500,000 28/11/2029 $0.063 500,000 500,000 29/12/2031 $0.136 500,000 500,000 19/12/2033 $0.033 1,250,000 1,250,000 135,992,858 135,992,858 No person entitled to exercise an option had or has any right by virtue of the option to participate in any share issue of CCS or any other body corporate. Performance Shares At the date of this report, 10,000,000 performance shares are held by the CEO / Managing Director. Each performance share converts to one Ordinary Share for nil consideration on 10 December 2028, contingent on achievement of a $0.07 share price hurdle (based on a VWAP of 90 calendar days immediately prior to that date). Proceedings on behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the Company or any subsidiary company, or to intervene in any proceeding to which the Company or a subsidiary company is a party, for the purpose of taking responsibility on behalf of the Company or any subsidiary company for all or any part of those proceedings. The Company nor its subsidiary were a party to any proceedings during the reporting period. Non-Audit Services There were no fees for non-audit services paid/payable to the external auditors during the years ended 30 June 2026 and 30 June 2025. 30 Annual Report 2026
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Auditor Independence Declaration The auditor’s independence declaration for the year ended 30 June 2026 has been received and can be found on the following page. Rounding of Amounts CCS has applied the relief available to it under ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2026/183. Accordingly, amounts in the financial statements have been rounded off to the nearest $1,000. Signed in accordance with a resolution of the Board of Directors. Rebecca Wilson Brenton Barnes Chair Chief Executive Officer and Managing Director Dated at Adelaide this 31st day of August 2026. Director’s Report 31
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Auditor’s Independence Declaration To the Members of Clever Culture Systems Limited AUDITOR’S INDEPENDENCE DECLARATION In accordance with section 307C of the Corporations Act 2001, I provide the following declaration of independence to the members of Clever Culture Systems Limited. As the lead audit partner for the audit of the financial report of Clever Culture Systems Limited for the year ended 30 June 202 6, I declare that, to the best of my knowledge and belief, there have been no contraventions of: i. the auditor independence requirements of the Corporations Act 2001, in relation to the audit; and ii. any applicable code of professional conduct in relation to the audit. HLB Mann Judd Audit (SA) Pty Ltd Travis Rickard Chartered Accountants Director Adelaide, South Australia 31 August 2026 LBT INNOVATIONS LIMITED ABN 95 107 670 673 AUDITOR’S INDEPENDENCE DECLARATION As the lead auditor for the audit of the financial report of LBT Innovations Limited and controlled entity for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. HLB Mann Judd Audit (SA) Pty Ltd Travis Rickard Chartered Accountants Director Adelaide, South Australia 28 August 2024 32 Annual Report 2026
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26 | Page CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR ENDED 30 JUNE 2026 Note 2026 2025 $000 $000 Revenue 2 4,619 4 5,461 4 Other Income 2 48 1,169 Cost of Sales (1,214) (1,497) Employee Benefits Expense 3b (4,702) (2,993) Corporate Expenses 3a (806) (728) Research & Development Expenses (316) (69) Marketing Expenses (243) (329) Finance Expenses 3c (186) (80) Other Expenses 3d (1,237) (794) Depreciation & Amortisation Expense (678) (225) Consolidated Profit (Loss) Before Income Tax (4,715) (85) Income Tax (Expense) Benefit 4 2,477 1,769 Consolidated Net Profit (Loss) (2,238) 1,684 Basic Earnings (Loss) per Share (cents per share) 18 (0.109) 0.098 Diluted Earnings (Loss) per Share (cents per share) 18 (0.109) 0.079 The accompanying notes form part of the financial statements. 33 Financial Statements
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27 | Page CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2026 Note 2026 2025 $000 $000 Assets Current Assets Cash and Cash Equivalents 5 1,697 1,265 Trade and Other Receivables 6 2,027 1,490 Inventory 7 1,914 1,428 Current Tax Asset 765 1,077 Total Current Assets 6,403 5,260 Non-Current Assets Trade and Other Receivables 151 233 Property Plant and Equipment 8 160 34 Right of Use Assets 9 1,152 1,209 Deferred Tax Assets 19a 3,195 1,584 Intangible Assets 10 2,486 2,449 Total Non-Current Assets 7,144 5,509 Total Assets 13,547 10,769 Current Liabilities Trade and Other Payables 11 1,053 1,101 Lease Liabilities 12a 216 226 Other Financial Liabilities 13a 2,332 656 Provisions 14a 369 371 Total Current Liabilities 3,970 2,354 Non-Current Liabilities Lease Liabilities 12b 1,167 1,014 Other Financial Liabilities 13b - 798 Deferred Tax Liabilities 19b 851 914 Provisions 14b 36 44 Total Non-Current Liabilities 2,054 2,770 Total Liabilities 6,024 5,124 Net Assets 7,523 5,645 Equity Issued Capital 15 57,549 54,164 Share Based Payments Reserves 16 2,115 1,673 Accumulated Losses (52,141) (50,192) Total Equity 7,523 5,645 The accompanying notes form part of the financial statements. Annual Report 2026 34
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28 | Page CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2026 Share Based Payments Reserve Share Capital Accumulated Losses Total $000 $000 $000 $000 Balance at 30 June 2024 2,087 53,106 (52,770) 2,423 New Shares Issued - 1,065 - 1,065 Shares Granted as Remuneration expensed in F24 - 60 - 60 Share Based Payments (Options & Performance Shares) 480 - - 480 Options Relinquished (523) - 523 - Options Forfeited (5) - 5 - Options Lapsed (278) - 278 - Performance Shares Vested (88) 88 Capital Raising Costs - (4) - (4) Tax Effect Attributable to Capital Raising Costs - (63) - (63) Net Profit for the Year - - 1,684 1,684 Balance at 30 June 2025 1,673 54,164 (50,192) 5,645 New Shares Issued - 3,247 - 3,247 Shares Granted as Remuneration expensed in F25 - 175 - 175 Share Based Payments (Options & Performance Shares) 731 - - 731 Options Relinquished - - - - Options Exercised (38) - 38 - Options Lapsed (163) - 163 - Performance Shares Vested (88) 88 - Capital Raising Costs - - - - Tax Effect Attributable to Capital Raising Costs - (37) - (37) Net Profit for the Year - - (2,238) (2,238) Balance at 30 June 2026 2,115 57,549 (52,141) 7,523 The accompanying notes form part of the financial statements. 35 Financial Statements
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29 | Page CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2026 Note 2026 2025 $000 $000 Cash Flows from Operating Activities Revenue from Customers 4,897 4,650 Government Grants Received - 1,170 Payments to Suppliers and Employees (8,582) (5,669) Research and Development Tax Concession 1,071 953 Interest Received 42 57 Net Cash used in Operating Activities 17 (2,572) 1,161 Cash Flows from Investing Activities APAS® Analysis Module Development (intangible asset) (466) (2,299) Payments for Plant and Equipment (9) (27) Net Cash used in Investing Activities (475) (2,326) Cash Flows from Financing Activities Cash Proceeds from New Shares Issued 3,247 1,065 Loan Received 1,500 - Loan Transaction Costs (77) - Loan Repayments (975) (768) Repayment of Lease Principal (216) (210) Capital Raising Costs - (4) Net Cash provided by Financing Activities 3,479 83 Net Increase (Decrease) in Cash and Cash Equivalents 432 (1,082) Cash and Cash Equivalents at Beginning of Year 1,265 2,347 Cash and Cash Equivalents at End of Year 5 1,697 1,265 The accompanying notes form part of the financial statements. Annual Report 2026 36
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30 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 1. Statement of Material Accounting Policies The financial reports present the financial information of Clever Culture Systems Limited (CCS Ltd or the Company), consolidated with its 100% owned company, Clever Culture Systems AG (CCS AG) (collectively, CCS or the Group). CCS Ltd is a public company incorporated and domiciled in Australia and the consolidated financial report was authorised for issue on 31st August 2026 by the Directors of CCS. The following is a summary of the material accounting policies adopted by the Group in the preparation of the consolidated financial report. The accounting policies have been consistently applied, unless otherwise stated. Basis of Preparation The consolidated report is a general-purpose financial report that has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, and the Corporations Act 2001. The consolidated financial report complies with all International Financial Reporting Standards (IFRS) in their entirety and are presented in Australian dollars, which is the Group’s functional and presentation currency. The consolidated financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. Parent Entity Information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in Note 24. Principles of Consolidation The consolidated financial statements incorporate the results, assets and liabilities of all subsidiaries of CCS Ltd for the year ended 30 June 2026. The consolidated financial statements incorporate the assets and liabilities of both CCS Ltd and its subsidiary CCS AG as at 30 June 2026, together they are referred to in these financial statements as the 'Group'. Subsidiaries are any entity over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Non-controlling interests in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance. Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interests in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Notes to the Financial Statements 37
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31 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. Going Concern basis of Accounting The Group’s financial statements have been prepared on the basis of continuity of operations, the realisation of assets and the satisfaction of liabilities in the ordinary course of business. As disclosed in the financial statements, for the year ended 30 June 2026 the Group has incurred a net loss before taxes of $4,715,000 and net cash outflows from operating and investing activities of $3,047,000. At 30 June 2026, the Company has a cash balance of $1,697,000 and net assets of $7,523,000. Whilst the Group’s results are a significant improvement since its pivot to the pharmaceutical industry, the Directors believe these conditions do continue to create some uncertainty as to the ability of the Group to continue as a going concern whilst the Company continues to build its customer base in the pharmaceutical industry. The future viability of the Group is largely dependent on the number and timing of sales, and on its ability to raise capital to finance its operations if needed. The Group believes that it has access to sufficient liquidity to prepare the financial statements on a going concern basis based on available cash and receivables, together with sales prospects. If these sales do not proceed as expected, the Group may be required to delay, reduce or eliminate research and development programs, reduce costs, reduce or eliminate commercialisation efforts, obtain funds through arrangements with collaborators, pursue merger or acquisition strategies or cease operations. As the Group believes that it has sufficient liquidity to prepare the financial statements on a going concern basis, the financial statements do not include adjustments relating to the recoverability and classification of recorded assets amounts, nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. Accounting Policies a) Income Tax The income tax expense or benefit for the period is the tax payable on that period's taxable income or loss based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, where there is no effect on accounting or taxable profit or loss. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred tax assets arise from deductible temporary differences and previously booked tax losses, for both CCS AG and CCS Ltd. The benefit of these future tax deductions are only recognised as a deferred tax asset to the extent that it is probable that future taxable profits will be available against which the deferred tax assets may be utilised. In the current year ended 30 June 2026, the Group has recognised the value of its deferred tax assets to the extent that the recoverability is supported by an estimate of future net cash inflows and profitability of the Group, underpinned by potential pharmaceutical sales. The assessment of the potential pharmaceutical sales is based on 1) the widening of the customer base of large global pharmaceutical companies creating a platform for future sales and 2) the Group’s existing pipeline of advanced and qualified sales prospects in the pharmaceutical market. b) Plant and Equipment Plant and equipment is measured on the cost basis less, where applicable, any accumulated depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by the Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. All repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Depreciation The depreciable amount of all plant and equipment is depreciated on a straight-line basis over its useful life to the Group, commencing from the time the asset is held ready for use. Annual Report 2026 38
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32 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. Plant and Equipment cont. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Per Annum Plant and Equipment 20 – 33% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Any asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. c) Intangibles APAS® Independence Development Costs Capitalised APAS® Development costs include software development, consulting and some internal salaries incurred from December 2013. Development costs are capitalised only when technical feasibility studies identify that the project will deliver future economic benefits and these costs can be reliably measured. The development was finalised for the APAS® Independence instrument in August 2019, and amortisation commenced at that point. At that time, the Group conservatively assessed the useful life of the instrument to be 8 years, based on a review of other similarly priced capital items involving new technology within the same culture plate process. The amortisation was calculated on a straight-line basis as being the most appropriate method to reflect the realisation of the future economic benefits arising from the development of the APAS® technology. APAS® Analysis Module Development Costs – Clinical Market The APAS® Independence instrument will not function without the Analysis Module software. A separate AM needs to be developed for each particular type of culture plate media used. These development costs for Analysis Modules for use in the clinical market were capitalised as a separate asset from August 2018 onwards. CCS AG Development Costs (Fair Value on Acquisition) CCS AG Development costs include costs incurred by CCS AG for the engineering and design of the physical APAS® Independence instrument, and the costs associated with clinical trials and regulatory clearance for Analysis Modules. These costs were restated to fair value as at 31 December 2021, being the date that CCS Ltd obtained control of CCS AG through the completion of its full acquisition of CCS. Impairment of Development Costs At 30 June 2023 the Company reviewed sales performance and sales projections and it became evident that there was not a “reasonable and supportable” basis for forecast future sales within the context of Australian Accounting Standard AASB 136 Impairment of Assets, and as such the Group wrote down the carrying value of the intangible assets to nil. As such, amortisation was paused from 30 June 2023. APAS® Analysis Module Development Costs – Pharmaceutical Market The development of an Analysis Module for use on the APAS Independence in the environmental monitoring process for pharmaceutical manufacturing was completed in March 2024. This was part of a strategic pivot from the clinical market to the pharmaceutical market. The development costs associated with this first Analysis Module (for the analysis of Settle Plates) were expensed as incurred, given the lack of a “reasonable and supportable” basis for forecast future sales into this new market. However, development costs incurred during the year ended 30 June 2025 have been capitalised. These costs relate to the development of a second Analysis Module for the pharmaceutical market (for the analysis of Contact Plates). As the Group has expanded further into the pharmaceutical market, the ability to estimate future sales potential within this market has improved, and the importance of having that second Analysis Module became clear. License Fees and Option Fees Licence fees and option fees are valued in the accounts at cost of acquisition and are amortised over the period in which their benefits are expected to be realised. Research Expenditure Expenditure during the research phase of a project is recognised as an expense when incurred. Notes to the Financial Statements 39
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33 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. d) Financial Instruments Financial instruments are initially measured at fair value on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Trade and Other Receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 60 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Borrowings Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method. e) Impairment of Non-Financial Assets At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset. An impairment test is also performed annually for intangible assets with indefinite lives and intangible assets not yet available for use. The Group performed a formal impairment test as at 30 June 2026. An impairment test compares the recoverable amount of the asset, being the higher of the asset's fair value less costs of disposal and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in the profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash- generating unit to which the asset belongs. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit or loss. Critical Accounting Estimates and Judgements. f) Critical Accounting Estimates and Judgements The Directors evaluate managements' estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Key Estimates – Impairment The carrying amount for intangible assets before any provision for impairment is $15.9 million (2025: $15.9 million), relating to expenditure incurred in developing the APAS Independence instrument and the Software (Analysis Modules) that enables the APAS Independence to read and interpret specific types of culture plates. The carrying amount before any provision for impairment comprises: $13.4 million (30 June 2025: $13.4 million) for the capitalised development costs for the physical APAS® instrument and the development costs for the initial analysis modules for the clinical market (Pre-Pharma Market Expenditure); and $2.5 million (30 June 2025: $2.5 million) for costs incurred in the development of the second analysis module for the pharmaceutical market, including enhancements to the physical instrument to enable processing of the smaller contact plates (Pharma Contact Plates Expenditure). The recoverability of these intangible assets are dependent on sufficient future cash flows generated through repeatable sales of the APAS® instrument, ongoing license fees for the analysis modules and income from providing maintenance services. Annual Report 2026 40
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34 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. CCS originally targeted the clinical microbiology market, with the development of Analysis Modules for the reading and interpretation of culture plates for infectious diseases, routinely used in clinical microbiology laboratories. Sales into the clinical market did not meet expectations and a step change in sales potential was achieved in March 2024 with the development of an Analysis Module for the reading and interpretation of 'settle' culture plates used in environmental monitoring within pharmaceutical manufacturing. As this was a new market, the expenditure incurred in the development of an Analysis Module for settle plates was expensed as incurred. The Group has since focused its sales resources on this significant new market and based on early market feedback, CCS developed a second Analysis Module for the pharmaceutical market, for the reading and interpretation of 'contact' culture plates which was completed and made available for sale in August 2026. This is a significant development as contact plates account for approximately 50% of the global volume of culture plates used in environmental monitoring within pharmaceutical industry, while the settle plates account for the other half of the volume. With this development now completed, the APAS® Independence is the only automated instrument with off- the-shelf validated Analysis modules available, with capacity to process both plate types used in environmental monitoring. Expenditure incurred in the development of contact plates Analysis Module, including associated enhancements to the physical instrument to enable processing of the smaller contact plates, have been capitalised as an intangible asset. The carrying value for all intangible assets are assessed against their estimated recoverable amount, consistent with Accounting Standard AASB 136 Impairment of Assets. This formal assessment is undertaken whereby the recoverable amount is assessed using a value-in-use calculation, comprising a forecast of cash flows associated with future sales of the APAS® instrument, discounted to net present value. For this purpose, the cash generating unit has been identified as comprising the Group in its entirety. This assessment has been considered for the following intangible assets: Pharma Contact Plates Expenditure: $2.5 million (30 June 2025: $2.5 million). Based on the expanding base of large global pharmaceutical customers and a growing pipeline of advanced sales prospects, following the extension of the instrument’s capability to processing of contact plates, the Group considers there to be a “reasonable and supportable” level of forecast future sales to support the carrying amount of this intangible asset. The discounted cash flow forecast at 30 June 2026 indicated a recoverable amount well in excess of the $2.5 million carrying value. At this early stage of sales into the pharmaceutical market some uncertainty naturally exists with regards forecast sales volumes and sales growth rates. However, sales outcomes would need to fall materially short of expectations, before impacting the carrying value of the $2.5 million intangible asset. On this basis, Directors concluded an impairment of this intangible asset was not required. At 30 June 2026, Board and management are not aware of any circumstances that would indicate that the $2.5 million carrying value is not recoverable from net cashflows from future sales. In particular, the implied market value of CCS at 30 June 2026, based on it’s ASX traded share value, is well in excess of the $2.5 million carrying value. Pre-Pharma Market Expenditure: $13.4 million (30 June 2025: $13.4 million). This carrying amount was last assessed against its estimated recoverable amount, at 30 June 2023. At that date, the Board determined that the Group was not in a position to provide a “reasonable and supportable” forecast for a level of sales to the clinical microbiology market that would indicate a recoverable amount of the APAS® assets. Accordingly, a non-cash impairment expense of $13.4 million was recognised in the Group's Statement of Comprehensive Income/(Loss) in that financial year. The Group’s sales strategy is now targeting the pharmaceutical market and is focussed on continuing to grow its customer base of large pharmaceutical companies, progressing through customer evaluations and global deployment of multiple instruments within those large pharmaceutical customers. The customer base and customer pipeline are growing as planned, and AstraZeneca is the first example of the ‘land and expand’ sales strategy, with twelve sales to date (including a further one finalise post 30 June 2026). However, at this stage of the pharmaceutical sales cycle, it remains too early to confidently know the extent to which this experience with AstraZeneca will be repeated within the expanding customer base. Given this level of uncertainty, Directors and management do not believe that there is a sufficient level of “reasonable and supportable” evidence to consider reversing the impairment provision of $13.4 million. The Group will reconsider this recoverable amount assessment as existing pharmaceutical customers complete their evaluation of the APAS® technology and progress to a global deployment of multiple instruments. The Group expects to progress the ‘expand’ stage of its ‘land and expand’ sales strategy over the next 12 months and will become better informed of a “reasonable and supportable” cash flow forecast more reflective of the Group’s expectations. Notes to the Financial Statements 41
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35 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. Key Forecast Assumptions A description of the assumptions underlying the forecast cash flows is described below. Sales Projections The context for the sales projection is important, being an impairment assessment of the $2.5 million carrying amount of the intangible asset. With this carrying value in mind, an impairment specific sales forecast has been considered to understand the extent to which a base case sales forecast supports that carrying value. Accordingly, for the purposes of the impairment assessment, total sales have been assumed at 69 instruments over the four year forecast period, with peak annual sales of 17 instruments. These sales assumptions represent just 69% of the Group’s estimated 100 instrument sales potential from its eight existing global pharmaceutical customers and 38% of the Group’s 180 qualified instrument sales opportunities. Even with these impairment specific sales assumptions, the net present value of the cash flow model provides a value of $10.6 million, being well in excess of the $2.5 million carrying amount of the intangible asset. These sales assumptions are below the Group’s expectations for a step change increase in sales revenue commencing in FY27 and beyond as it builds on the progress made with global pharmaceutical customers and expands the adoption of APAS globally. Revenue estimates are based on a price for an APAS Independence of USD350,000 ($510,000) per instrument , an annual Analysis Module license fee of USD50,000 ($73,000) and annual maintenance support fees of up to USD21,000 ($31,000). Other incidental revenue estimates are allowed for installation and validation support services. The recurring annual revenues continue over the four-year forecast period, although the physical instrument has an expected minimum useful life of at least 7 years. Terminal Value To keep the cashflow model on a simple and conservative basis, there has been no terminal value calculation included in the cashflow model for the impairment assessment at 30 June 2026, providing a total net present value of $10.6 million. In the prior year ended 30 June 2025, a terminal value of $6.7 million or 35% was included in the total net present value of $18.9 million. Discount Rate A real post-tax discount rate of 17.5% has been used in the discounted cash flow modelling (2025: 17.5%). This is based on the discount rate used by independent valuer, engaged by the Group during the year ended 30 June 2025, to value the CCS AG business to support a corporate restructure. The discount rate factored in a rate appropriate to an ASX listed entity. Sensitivity of Assumptions Sensitivity of the discounted cash flow forecast to separate changes in the above assumptions is provided as follows: • The post-tax real discount rate can be increased to 160% (2025: 160%) per annum before the discounted cash flow forecast approximates the carrying value of $2.5 million; • The number of units sold can be reduced by 27% (2025: 57%) across the forecast period before the discounted cash flow forecast approximates the carrying value of $2.5 million; • The average sales price per instrument together with the ongoing license fees and maintenance fees can be reduced by 20% (2025: 38%) before the discounted cash flow forecast approximates the carrying value of $2.5 million; or • AUD exchange rate against the USD would need to increase by 27% (2025:80%), without any increase in the instrument pricing, before the discounted cash flow forecast approximates the carrying value of $2.5 million. For example, the AUD:USD would need to increase from 0.6869 to 0.8730. Key Estimates – Deferred Tax Asset Recoverability In addition to the carrying value of the intangible assets noted above, the Group also has net deferred tax assets of $2,344,000 (30 June 2025: $670,000), predominantly arising from unused carried forward tax losses for CCS Ltd, together with other deductible temporary differences. These are recognised to the extent that it is probable that future tax profits will be available against which the deductible temporary differences and carried forward tax losses may be utilised. The Group recognises the carrying value of its deferred tax assets on the basis of an estimate of future net cash inflows and profitability of the Group, underpinned by potential pharmaceutical sales. The assessment of the potential pharmaceutical sales is based on the Group’s existing pipeline of advanced and qualified sales prospects in the pharmaceutical market. Future sales outcomes would need to fall materially short of expectations, before impacting the carrying value of the $2,344,000 net deferred tax asset. Annual Report 2026 42
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36 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. Key Estimates – Share Based Payments A key area of judgement relates to the calculation of the market value of the unlisted options and performance shares granted to Directors, employees and other service providers. The fair value of each option series was assessed using the Binomial method and for performance shares with vesting conditions linked to the achievement of CCS share price hurdles, a Monte Carlo pricing model was used to calculate the fair value. A key assumption used in both the Binomial and Monte Carlo calculations is the Company’s future share price volatility. Future volatility was based on the historic daily price movements of the Company’s ASX listed shares prior to th e relevant valuation date. For further information in relation to the options and performance shares granted , refer to Note 1 (i), Note 16 and Note 22. g) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and at call deposits with banks or financial institutions. h) Revenue Recognition Revenue from Contracts with Customers Revenue from contracts with customers is recognised in accordance with AASB 15 when (or as) the Group satisfies a performance obligation by transferring control of a promised good or service to a customer. The Group's contracts for the APAS® Independence instrument are structured under two commercial models — outright sales and trial / evaluation sales. The transaction price is allocated to each distinct performance obligation on a relative stand-alone selling price basis. The Group applies substance over form when allocating consideration; the contractual label attaching to a payment does not, of itself, determine the timing of revenue recognition. Performance obligations Performance obligations identified across the Group's contracts comprise: (i) supply of the APAS® Independence instrument (manufacture, delivery, installation and commissioning); (ii) installation, commissioning, training and commissioning-phase support services delivered under the trial / evaluation model ('Installation Services'); (iii) maintenance and support services, recognised on a straight-line basis over 12 months. This includes attributing part of the total contracted instrument sale price to this service based on an assessed value of $40,000 per annum for annual maintenance and support following the one- year ‘free’ maintenance and support included in the instrument contract price.; (iv) Analysis Module licences, recognised on commencement of the annual end-user licence agreement; and (v) accessories and consumables, recognised on delivery. Outright sale model Under outright sale arrangements, the customer commits to acquire the instrument under a binding purchase order supported by an upfront non- refundable deposit. The deposit is recognised as a contract liability on receipt and released to revenue at the point in time the customer obtains control of the instrument, being delivery and installation at the customer's site. Installation and commissioning are inputs into the bundled instrument performance obligation and form part of the cost to fulfil the contract. Evaluation sale model Under evaluation arrangements, the customer pays an upfront non-refundable deposit at contract inception. The Group manufactures, delivers, installs, commissions and trains the customer on the instrument at the customer's site, after which a substantive evaluation period commences. The customer subsequently elects whether to proceed with the purchase. Legal title is retained by the Group until the contracted price is received in full. Having regard to the indicators of control transfer under AASB 15 and the substantive customer acceptance condition embedded in the evaluation period, the Group has assessed that control of the instrument does not transfer during the evaluation period. The Group has identified the installation, commissioning, training and commissioning-phase support activities as a distinct performance obligation. Applying substance over form, the upfront non-refundable deposit is allocated to this performance obligation and recognised as revenue upon customer acceptance following commissioning. The remaining balance of the contracted instrument price represents variable consideration and is constrained from the transaction price during the evaluation period. On election to proceed, that balance is recognised as instrument revenue at the point control transfers. If the customer elects not to proceed, no further revenue is recognised. Significant judgements Significant judgements applied by the Group include: the identification of Installation Services as a distinct performance obligation under the trial / evaluation model; the substance-over-form allocation of the upfront non-refundable deposit to that performance obligation; the conclusion that control of the instrument does not transfer during the evaluation period; the application of the variable consideration constraint to the contracted balance; and the determination of stand-alone selling prices. These conclusions are reassessed at each reporting date. Notes to the Financial Statements 43
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37 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. Interest Income Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Government Grants Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expenses are recognised as income over the periods necessary to match grants to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straight-line basis. Other Income Other revenue is recognised when it is received or when the right to receive payment is established. i) Share-Based Payments Equity Settled Transaction The Group currently has a Directors and Employee Incentive Plan in place to provide benefits to Directors and Executives in the form of share-payments whereby they render services in exchange for shares or rights over shares (equity-settled transactions). The Group may also provide options to selected consultants in exchange for their services. The cost of these equity-settled transactions is measured by reference to the fair value of the equity instruments at the date Board approval or in the case of options subject to shareholder approval, then fair value is determined at the date of shareholder approval. The fair value is determined using the Binomial option pricing model. The market value of performance shares are generally determined by reference to the underlying CCS share price on the valuation date. For more complex options and performance shares that include market vesting conditions, the Group utilises a Monte Carlo simulation together with a net present value calculation. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant party becomes fully entitled to the award (the vesting period). No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a market condition. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share. j) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the assets or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. k) Foreign Currency Transactions and Balances Foreign currency transactions during the year were converted to Australian currency at the rates of exchange applicable at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date were converted at the rates of exchange ruling at that date. Exchange differences arising on the translation of monetary items are recognised in the statement of comprehensive income. l) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year. Annual Report 2026 44
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38 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 1. Statement of Material Accounting Policies cont. m) Leases - the Group as lessee At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a corresponding lease liability is recognised by the Group. However, all contracts that are classified as short-term leases (i.e. a lease with a lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a straight-line basis over the term of the lease. Initially, the lease liability is measured at the present value of the lease payments still to be paid at commencement date. The lease payments are discounted at the interest rate implicit in the lease. Lease payments included in the measurement of the lease liability are as follows: • fixed lease payments less any lease incentives; • variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; • the amount expected to be payable by the lessee under residual value guarantees; • the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; • lease payments under extension options, if lessee is reasonably certain to exercise the options; and • payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any lease payments made at or before the commencement date, as well as any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest. Where a lease transfers ownership of the underlying asset, or the cost of the right-of-use asset reflects that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset. n) Adoption of New and Revised Accounting Standards (issued but not yet effective) Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2026. The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below. AASB 18 Presentation and Disclosure in Financial Statements This standard is applicable to annual reporting periods beginning on or after 1 January 2027 and early adoption is permitted. The standard replaces AASB 101 'Presentation of Financial Statements', with many of the original disclosure requirements retained and there will be no impact on the recognition and measurement of items in the financial statements. But the standard will affect presentation and disclosure in the financial statements, including introducing five categories in the statement of profit or loss and other comprehensive income: operating, investing, financing, income taxes and discontinued operations. The standard introduces two mandatory sub-totals in the statement: 'Operating profit' and 'Profit before financing and income taxes'. There are also new disclosure requirements for 'management-defined performance measures', such as earnings before interest, taxes, depreciation and amortisation ('EBITDA') or 'adjusted profit'. The standard provides enhanced guidance on grouping of information (aggregation and disaggregation), including whether to present this information in the primary financial statements or in the notes. The consolidated entity will adopt this standard from 1 July 2027 and it is expected that there will be a significant change to the layout of the statement of profit or loss and other comprehensive income. Notes to the Financial Statements 45
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39 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 2. Revenue 2026 2025 $000 $000 Instrument Sales 2,889 4,570 Instrument Leasing - 128 License Fees 553 232 Maintenance Revenue 673 445 Revenue from Consulting Services - 50 Instrument Accessories 504 36 Revenue 4,619 5,461 Government Grants (1) - 996 Foreign Exchange Gain (Loss) - 108 Interest 33 56 Other 15 9 Other Income 48 1,169 1. In the prior year ended 30 June 2026, grant income related to matched funding provided by the government under the CTCM grant for the development of an analysis module for the reading and interpretation of the smaller 55mm Contact Plates, being the second plate type routinely used in environmental monitoring within pharmaceutical manufacturing. Annual Report 2026 46
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40 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 3. Loss for the Year Loss Before Income Tax Benefit includes the following Items: 2026 2025 $000 $000 (a) Corporate Expenses ASX Fees and Share Registry costs 90 94 Auditors Remuneration (1) 57 63 Insurance 82 85 Corporate Consulting and Legal 284 247 General Office Expenses and Other 293 239 Total Corporate Expenses 806 728 (b) Employee Benefits Expense Cash Based Employee Benefits Expense includes Directors’ Fees, Salaries and Wages, including Executive Bonuses. (3) Cash Based Employee Benefits Expense (includes directors' fees, contractor fees, salaries and wages, executive bonuses) (2) (3) 3,971 2,513 Share Based Payments (refer Note 22) (4) 731 480 Total Employee Benefits Expense 4,702 2,993 (c) Finance Expenses Interest Expense 110 80 Loan Establishment Fees (refer Note 13) (5) 76 - Total Finance Expenses 186 80 (d) Other Expenses Travel and Accommodation 391 358 Patents and Trademarks 88 78 APAS® Independence customer maintenance and support 407 285 Sustaining Engineering 179 65 Foreign Exchange (Gain) Loss 172 - Other - 8 Total Other Expenses 1,237 794 1. The Auditor did not provide any Non-Audit Services to the Group during the Year. 2. For the comparative period ending 30 June 2025, a larger amount of employee costs were capitalised for employees working on the Contact Plate Development project (rather than expensed). The development project was completed on 31 August 2025 and therefore such costs were only capitalised for two months of the current year ending 30 June 2026. 3. Employee benefits expense includes $155,000 (2025: $188,000) of remuneration to Directors and Executives proposed to be settled through the issuance of CCS Shares (refer Note 13), consisting of the following: • $53,000 (2025: $14,000) of Directors Fees, where a Director, Mr Ian Wisenberg, has elected to receive part of his cash-based Directors fees in CCS shares. The total $67,000 relating to the years ending 30 June 2026 and 2025 is proposed to be settled though the issue of CCS shares, subject to shareholder approval at the 2026 AGM. • $49,000 (2025: $91,000) payable as an annual cash bonus to the CEO/Managing Director. The maximum annual bonus is 30% of the CEO/Managing Director’s annual salary, with the actual amount awarded by the Board considering the performance of the Company against pre-set objectives. The CEO/Managing Director elected to receive the annual incentive in CCS Shares, subject to approval by shareholders at the Company’s 2026 AGM. • $53,000 (2025: $83,000) payable in CCS Shares as an annual incentive for the Executive Team. The maximum annual bonus is 10% of an individual’s annual salary, with the actual amount awarded by the Board considering the performance of the Company against pre-set objectives . The Shares owing for the year ended 30 June 2025 were issued during August 2025. 4. Share-based payments relate to amounts expensed in the period, relating to options and performance shares granted to employees and Directors (refer Notes 16 and 22). 5. On 30 June 2026, the Company entered into a number of loan agreements to provide total funding of $1,600,000 to assist with short term working capital requirements. (refer Note 13). Notes to the Financial Statements 47
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41 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 4. Income Tax 2026 2025 $000 $000 a) The Components of Tax Benefit Comprise: Current Tax 765 1,077 Deferred Tax - Origination and Reversal of Temporary Differences 1,711 733 Adjustment Recognised for Prior Periods 1 (41) Income Tax (Expense) Benefit 0 2,477 1,769 b) The Prima Facie Income Tax Benefit on the Pre-Tax Accounting Loss is Reconciled to the Income Tax as follows: Prima Facie Income Tax Benefit (Expense) on the Pre-Tax Accounting Loss, at the domestic tax rates applicable in the countries concerned 1,179 (176) Adjusted for the Tax Effect of: R&D Concession Claim 399 274 Capital Raising Costs 37 63 Non-Deductible Expenses (167) (826) Derecognition of Deferred Tax Assets - 107 Deferred Tax Asset on Losses Recognised - 2,368 Intangible Asset Depreciation 1,100 - Other 0 (71) (41) Income Tax Benefit 2,477 1,769 5. Cash and Cash Equivalents Cash on Hand and at Bank 1,617 1,185 Cash on Deposit 80 80 Total Cash and Cash Equivalents 1,697 1,265 Annual Report 2026 48
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42 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 6. Trade and Other Receivables 2026 2025 $000 $000 Trade Receivables 1,366 1,329 Other Receivables 290 143 GST Refundable 371 18 Trade and Other Receivables 2,027 1,490 Credit Risk All material receivables are within agreed payment terms. The Group currently has no significant concentration of credit risk with respect to any single counterparty or group of counterparties, other than as disclosed in this Note 6. The class of assets described as "Trade and Other Receivables" is considered to be the main source of credit risk related to the Group. On a geographical basis, the Group has credit risk exposures in Australia, the EU and the US. The Group always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtor, general economic conditions of the industry in which the debtor operates and an assessment of both the current and the forecast direction of conditions at the reporting date. As at 30 June 2026, the Group has determined that no credit loss provision is required. 7. Inventory 2026 2025 $000 $000 Finished Goods 663 402 Work in Progress 363 93 Spare Parts 888 933 Total Inventory 1,914 1,428 Notes to the Financial Statements 49
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43 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 8. Plant and Equipment 2026 2025 $000 $000 Plant and Equipment at Cost 240 231 Less: Accumulated Depreciation (215) (197) Operating Leased APAS Unit 135 - Total Plant and Equipment 160 34 Movements in Carrying Amount Movements in carrying amounts of plant and equipment between the beginning and the end of the financial year were as follows: Opening Balance 34 25 Additions 9 27 Disposals - - Depreciation Expense (18) (18) Operating Leased APAS Unit 135 - Closing Balance 160 34 9. Right of Use Assets The Group’s right of use assets is a property lease for its sole office in Adelaide CBD, which commenced 15 April 2021 and was renewed for a further five-year period from 15 April 2026. The lease is cancellable effective 15 July 2027, at the option of CCS. The full five-year period is assumed in the calculation of the lease liability and right to use asset only to the extent management are reasonably certain not to exercise that cancellation option The rent increases on an annual basis by 3.5% or CPI whichever is the greater. Variable Lease Payments The Group does not have any variable lease payments. (i) AASB 16 related amounts recognised in the Statement of Financial Position Leased Building 2,088 2,088 CPI Rental Increase 314 - Less: Accumulated Depreciation (1,250) (879) Total Right of Use Assets 1,152 1,209 Annual Report 2026 50
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44 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 9. Right of Use Assets (cont.) Movements in Carrying Amount Movements in carrying amounts of Right of Use Assets between the beginning and the end of the year were as follows: 2026 2025 $000 $000 Opening Balance 1,209 1,416 CPI Rental Increase 314 - Depreciation Expense (371) (207) Closing Balance 1,152 1,209 (ii) AASB 16 related amounts recognised in the Statement of Statement of Comprehensive Income/(Loss) Depreciation Charge related to Right of Use Assets (371) (207) Interest Expense on Lease Liabilities (Finance Expense) (96) (45) (iii) Total Year Cash Outflows for Leases (216) (210) 10. Intangible Assets 2026 2025 $000 $000 APAS® Development Costs 18,491 18,491 Less: Accumulated Amortisation (11,419) (11,419) 7,072 7,072 Analysis Module Development 4,038 4,038 Less: Accumulated Amortisation - - 4,038 4,038 CCS AG Development Costs (Fair Value on Acquisition) 3,416 3,416 Less: Accumulated Amortisation (1,118) (1,118) 2,298 2,298 Contact Plate Development (1) 2,775 2,449 Less: Accumulated Amortisation (289) - 2,486 2,449 Provision for Impairment (13,408) (13,408) Total Intangible Assets 2,486 2,449 Notes to the Financial Statements 51
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45 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 10. Intangible Assets (cont.) Movements in Carrying Amount AM Development Costs $000 APAS® Development Costs $000 CCS Development Costs $000 Contact Plate Development Costs $000 Total Intangible Assets $000 Balance 30 June 2024 - - - - - Additions 1 - - - 2,449 2,449 Disposals - - - - - Amortisation Expense - - - - - Balance 30 June 2025 - - - 2,449 2,449 Additions 1 - - - 326 326 Disposals - - - - - Amortisation Expense - - - (289) (289) Balance 30 June 2026 - - - 2,486 2,486 1. Costs associated with the development of an analysis module for the reading and interpretation of Contact plates on the APAS® Independence. 11. Trade and Other Payables 2026 2025 $000 $000 Trade Creditors 396 587 Annual Leave Entitlements 286 253 Other 371 261 1,053 1,101 12. Lease Liability The Group's Lease Liability relates to the lease of CCS’s office space (refer Note 9 for further details). The lease liability has been calculated with the assumption that the lease will be extended to 2031. 2026 2025 $000 $000 a) Current Lease Liability 216 226 b) Non-Current Lease Liability 1,167 1,014 Total Lease Liability 1,383 1,240 Annual Report 2026 52
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46 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 13. Other Financial Liabilities 2026 2025 $000 $000 a) Current South Australian Government Loan (1) - 177 Working Capital Loan (2) 1,600 - Unearned Income (3) 563 291 Share-Based Liability to Directors and Executives (4) 169 188 Total Current Other Financial Liabilities 2,332 656 b) Non-Current South Australian Government Loan (1) - 798 Total Non-Current Other Financial Liabilities - 798 1. The loan from the South Australian Government included an early repayment clause, where all proceeds received by CCS on the exercise of options issued under the rights issue (ASX: CC5OA, expiring 15 November 2025) were to be first applied to repayment of the loan. During the year ended 30 June 2026, CCS received proceeds of $3,199,000 from the exercise of these options, of which $975,000 was utilised to repay the loan. 2. On 30 June 2026, the Company entered into a number of unsecured loan agreements to provide total funding of $1,600,000 to assist with the Group’s short-term working capital requirements. An amount of $1,680,000 is due for repayment on 31 December 2026, comprising the loan amount of $1,600,000 together with interest of $80,000. Under the loan agreements, the Company agreed to issue 16,000,000 unlisted options. The options have an exercise price of $0.033 and expire 30 June 2028. The value of these options was fully expensed in the year ended 30 June 2026 (refer notes 16 and 22). The options were subsequently issued on 1 July 2026. 3. Unearned income consists of $259,000 unearned maintenance income (2025: $291,000). Customers pay an annual fee for CCS to provide maintenance and support services. The revenue is recognised by CCS as the services are provided over the course of the year. The remaining amount of $304,000 at 30 June 2026 consists of a deposit for an instrument purchase, software invoiced in advance of the relevant renewal date and fees received in advance for integration of the instrument to a customer’s laboratory information system. 4. Accrued liabilities of $169,000 (2025: $188,000) to be settled through the issue of shares comprising: 1) $53,000 for the executive team annual incentive (2025: $83,000); 2) $49,000 payable to the Managing Director who elected to receive his annual incentive in CCS Shares (2025: $91,000) and 3) $67,000 where a Director, Mr Ian Wisenberg, has elected to receive part of his cash- based Directors fees in CCS shares (2025: $14,000). The latter two items are subject to approval by shareholders at the Company’s 2026 AGM. Refer Note 3(b) and the Remuneration Report. 14. Provisions 2026 2025 $000 $000 a) Current Employee Provisions – Long Service Leave 369 371 b) Non-Current Employee Provisions – Long Service Leave 36 44 Total Provisions 405 415 Notes to the Financial Statements 53
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47 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 15. Issued Capital 2026 2025 $000 $000 Issued and Paid Up Capital 2,179,622,833 (30 June 2025: 1,766,590,293) Ordinary Shares Fully Paid 61,895 58,473 Less: Costs Associated with Capital Raising Opening Balance (4,309) (4,242) Capital Raising Costs - (4) Tax Effect of Capital Raising Costs (37) (63) Total Issued Capital 57,549 54,164 Ordinary Shares No. No. At the Beginning of the Reporting Period 1,766,590,293 1,553,986,346 New Shares Issued during the Period: Executive Annual Incentive Plan (1) 3,252,326 3,561,955 CEO/Managing Director Annual Incentive Plan (2) 3,545,581 - Executive Remuneration Performance Shares Vested (3) 1,474,716 5,850,000 Executive Retention Performance Shares Vested (4) 4,200,000 - Exercise of Unlisted Options 5,000,000 Exercise of Listed Options 395,559,917 203,191,992 At Balance Date 2,179,622,833 1,766,590,293 1. The issue of shares to Executives under an Annual Incentive Plan. The value of the shares to be awarded to each Executive is set by the Board following an assessment of performance against preset KPI's. The number of shares issued in the year ended 30 June 2026, related to the short-term incentive of $83,910 awarded for the prior year ended 30 June 2025 and was previously recognised as an expense in that year (2025: $53,549). The number of shares subsequently issued in the year ended 30 June 2026 was determined using the VWAP for the month of July 2025 of $0.0258 per CCS Share (2025: $0.015). 2. The issue of shares to the CEO / Managing Director under an Annual Incentive Plan. The value of the shares to be awarded is set by the Board following an assessment of performance against preset KPI's. The CEO / Managing Director may elect to receive his annual incentive in CCS Shares, subject to shareholder approval, otherwise is payable in cash. The number of shares issued in the year ended 30 June 2026, related to the short-term incentive of $91,476 awarded for the prior year ended 30 June 2025 and was previously recognised as an expense in that year. The number of shares subsequently issued in the year ended 30 June 2026 was determined using the VWAP for the month of July 2025 of $0.0258. No CCS Shares were issued in the year ended 30 June 2025, as the annual incentive was paid in cash. 3. 1,474,716 performance shares were issued to four executives on 30 August 2024, as part of their annual remuneration review, to minimise cash-based remuneration increases. The performance shares vested on 31 July 2025. The fair value of the shares was calculated as $24,900, being the cash renumeration increase otherwise forgone. The number of shares issued was based on the 5- day VWAP of the CCS shares traded on the ASX immediately prior to Board approval. The resulting shares were issued on 4 August 2025. 4. 4,200,000 performance shares were granted on 15 February 2024 to a key technical employee as part of a retention strategy. These performance shares converted into the same number of ordinary shares on 7 February 2026, subject to continued employment through to that date. The resulting shares were issued on 11 February 2026. Annual Report 2026 54
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48 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 15. Issued Capital (cont.) Voting Rights The voting rights attached to each class of equity security are as follows: Ordinary Shares Each ordinary share is entitled to one vote when a poll is called. CCS decides all resolutions at a general meeting by a poll, consistent with ASX Corporate Governance Principles 4th edition. Option Holders Each option entitles the holders to subscribe for one ordinary share in the capital of CCS. Options do not have voting rights attached, however ordinary shares issued on conversion carry the same voting rights as described above. Capital Management Management controls the capital of the Group with the objective of the Group funding its operations and continuing as a going concern. The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets. There are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels and share issues. Notes to the Financial Statements 55
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49 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 16. Share Based Payments Reserve The share-based payments reserve represents the cumulative amortised value of share options and performance shares issued as share based remuneration (refer Note 22). The following details the change during the Year of the number and value of options and performance shares comprising the Share Based Payments Reserve: Number of options and performance shares Value $000 Share Based Payments Share Based Payments Reserve Opening Balance 1 July 2025 133,854,241 1,673 Share Based Payments Expensed in the Profit or Loss Statement: Options Granted to Incoming Chair (1) - 1 Options Granted to a Consultant (2) - 57 Options Granted to Directors (3) - 48 CEO / Managing Director Long Term Incentive Options (4) - 184 CEO / Managing Director Long Term Incentive – Performance Shares (4) - 32 Executive Team Long Term Incentive Options (5) - 184 Executive Remuneration – Performance Shares (6) - 2 Executive Retention - Performance Shares (7) - 34 Options Issued for Payment of Services (8) - 13 Options Issued for Payment of Services (9) 9,600,000 38 Options Issued for Finance Costs (10) 16,000,000 138 Total Share Based Payments Expensed in the Profit or Loss Statement 731 Executive Remuneration – Performance Shares Vested (6) (1,474,716) (25) Executive Retention – Performance Shares Vested (7) (4,200,000) (63) Options Exercised (8) (2,500,000) (27) Options Exercised (11) (2,500,000) (11) Options Lapsed (1,286,667) (163) Share Based Payments Reserve Closing Balance 30 June 2026 147,492,858 2,115 The total of $731,000 (2025: $480,000) for employee options is included in the share-based payments expense for the Year (refer to Note 3(b)). Other Options (Non-Share Based Payments) Other Options Opening Balance 1 July 2025 397,502,346 Listed options lapsed (ASX: CC5OA) (1,942,429) Listed options exercised (ASX: CC5OA) (395,559,917) Other Options Closing Balance 30 June 2026 - Total Options and Performance Shares Closing Balance 30 June 2026 147,492,858 Annual Report 2026 56
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50 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 16. Share Based Payments Reserve (cont.) 1. 1,250,000 options issued to incoming CCS Chair, Ms Rebecca Wilson, as approved by shareholders on 29 November 2023. The options have a two-year vesting period and an expiry date of 19 December 2033. The combined fair value of the options was calculated to be $6,000. In accordance with AASB 2 “Share based Payment”, the fair value of the options is being expensed over the two-year vesting period, with $1,000 being expensed in the year ended 30 June 2026 (2025: $2,000). 2. Options issued to a consultant on 22 May 2025 as part of their contract. 5,750,000 options vested immediately and 5,750,000 options vested on 8 November 2025 upon both parties agreeing to continue with the contract for the second 6-month term. The options have an exercise price of $0.025 and expire on 22 May 2027. The combined fair value of the options was calculated to be $113,000. In accordance with AASB 2 “Share based Payment”, $56,500 has been expensed in the prior year and the remaining fair value of $56,500 was expensed when the remaining 5,750,000 options vested in the period ending 30 June 2026. 3. An issue of 3,814,286 options to Ms Rebecca Wilson (Non-executive Chair) and 2,314,286 options each of Messrs Dan Hill and Ian Wisenberg (Non-executive directors) on 10 December 2024, following shareholder approval. The options have a two-year vesting period and an expiry date of 10 December 2027. The fair value of the options was calculated to be $45,031 for the options issued to Ms Wilson, and $27,322 each for Messrs Hill and Wisenberg. In accordance with AASB 2 “Share based Payment”, the fair value of the options are being expensed over the two-year vesting period, with $48,000 being expensed in the year ended 30 June 2026 (2025: $30,000). 4. As part of a refreshed Long-Term Incentive (LTI), the Company issued 40,000,000 unlisted options and 10,000,000 performance shares to incentivise, retain and reward the Company's CEO / Managing Director. The securities were issued on 10 December, following shareholder approval on 14 November 2024. The options have an exercise price of $0.024, vest on 10 June 2027 subject to continued service and expire 10 December 2028. The fair value of the options was calculated as $473,000, using the Binomial method. In accordance with AASB 2 “Share based Payments”, the fair value of the options is being expensed over the vesting period through to 10 June 2027, with $184,000 expensed in the year ended 30 June 2026 (2025: $115,000). The 10,000,000 performance shares vest into the same number of ordinary shares on 10 December 2028, subject to a share price performance hurdle of $0.07 (based on a 90-day VWAP immediately prior to 10 December 2028) and continuity of service. The fair value of the performance shares was calculated as $130,000, using a Monte Carlo simulation. In accordance with AASB 2 “Share based Payments”, the fair value of the performance shares is being expensed over the vesting period through to 10 December 2028, with $32,000 expensed in the year ended 30 June 2026 (2025: $20,000). Due to the vesting hurdles, the performance shares are considered performance based. 5. The Company issued 40,000,000 unlisted options to four executives on 15 January 2025, as a refreshed LTI to incentivise, retain and reward key staff. The option terms align with that of the refreshed LTI options issued to the Company's CEO / Managing Director (refer Footnote 4), with an exercise price of $0.024, vesting on 10 June 2027, subject to continuity of service and expire 10 December 2028. The options were valued at $0.0118 per option or $473,000 in total using the binomial method on 14 November 2024, being the date the Board approved LTI offer. In accordance with AASB 2 “Share based Payments”, the total fair value of the options is being expensed over the vesting period through to 10 June 2027, with $184,000 expensed in the year ended 30 June 2026 (2025: $115,000). 6. 1,474,716 performance shares were issued to four executives on 30 August 2024, as part of their annual remuneration review, to minimise cash-based remuneration increases. The performance shares vested on 31 July 2025. The fair value of the performance shares was calculated as $25,000, being the cash renumeration increase otherwise forgone. The number of shares issued was based on the 5-day VWAP of the CCS shares traded on the ASX immediately prior to Board approval. In accordance with AASB 2 “Share based Payments”, the fair value of the performance shares was being expensed over the vesting period through to 31 July 2025, with $2,000 expensed in the year ended 30 June 2026 (2025: $23,000). The resulting shares were issued on 4 August 2025 and the fair value of the options was removed from the options reserve. 7. 4,200,000 performance shares were granted on 15 February 2024 to a key technical employee as part of a retention strategy. The performance shares converted into the same number of ordinary shares on 7 February 2026, subject to continued employment through to that date. The performance shares were valued at $0.015 each, being the ASX closing price of the Company’s ordinary Shares the day prior to Board approval to offer the performance shares. The total value of $63,000 was expensed over the vesting period through to 7 February 2026, with $35,000 expensed in the year ended 30 June 2026 (2025: $16,000). The resulting shares were issued on 11 February 2026 and the fair value of the options was removed from the options reserve. 8. Options issued to an investor relations consultant on 15 January 2025, as part of their contract. The options will vest on 15 January 2026 which were subject to the continued provision of services by the consultant over the preceding 12-month period. The options have an exercise price of $0.019 (based on the VWAP of the Company's shares in the month of December 2024) and expire on 15 January 2027. The fair value of the options was calculated to be $27,000, based on the binomial method determined at the date of signing the contract. In accordance with AASB 2 “Share based Payment”, the fair value of the options was expensed over the vesting period to 15 January 2026, with $13,000 expensed in the year ended 30 June 2026 (2025: $14,000). These options were exercised on 13 May 2026 and the $27,000 fair value of the options was removed from the options reserve. 9. Options issued to a consultant on 23 June 2026 as part of their contract. 4,800,000 options vested immediately and 4,800,000 options vest upon both parties agreeing to continue with the contract for the second 6-month term. The options have an exercise price of $0.034 and expire on 23 June 2028. The combined fair value of the options was calculated to be $76,000. In accordance with AASB 2 “Share based Payment”, $38,000 has been expensed in the current year ended 30 June 2026 and the remaining fair value of $38,000 will be expensed when the remaining 4,800,000 options vest in the period ending 30 June 2027. 10. On 30 June 2026, the Company entered into a number of unsecured loan agreements to provide total funding of $1,600,000 to assist with the Group’s short-term working capital requirements (refer Note 13). Under the loan agreements, the Company agreed to issue 16,000,000 unlisted options. The options have an exercise price of $0.33 and expire 30 June 2028. The value of these options was accounted for and fully expensed in the year ended 30 June 2026. The options were subsequently issued on 1 July 2026. 11. Options exercised on 23 December 2025 at an exercise price of $0.014. The fair value of the options was removed from the options reserve. Notes to the Financial Statements 57
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51 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 17. Cash Flow Information 2026 2025 $000 $000 Reconciliation of Cash Flow from Operations with Profit (Loss) after Income Tax Net Profit (Loss) for the Year (2,238) 1,684 Add Back Non-Cash Items Amortisation 289 - Depreciation 389 225 Share Based Payments Expense 731 480 CCS Shares Issued to Employees 175 60 Finance Costs 76 - Tax Effect Attributable to Capital Raising Costs (37) (63) Changes in Assets and Liabilities (Increase) / Decrease in Current Trade and Other Receivables (537) (933) (Increase) / Decrease in Non-current Trade and Other Receivables 82 (233) (Increase) / Decrease in Inventory (489) 190 (Increase) / Decrease in Deferred Tax Asset (1,611) (617) (Increase) / Decrease in Current Tax Asset 312 (76) Increase / (Decrease) in Current Trade and Other Payables (48) 418 Increase / (Decrease) in Provisions (10) 79 Increase / (Decrease) in Deferred Tax Liability (63) (53) Decrease / (Increase) in the above related to investing and financing activities 407 - Cash Flow used in Operating Activities (2,572) 1,161 18. Profit (Loss) Per Share 2026 2025 $000 $000 Reconciliation of Net Profit (Loss) to Earnings (Loss) per Share Net Profit (Loss) (2,238) 1,684 Net Profit (Loss) used in the Calculation of Basic Earnings per Share (2,238) 1,684 Net Profit (Loss) used in the Calculation of Diluted Earnings per Share (2,238) 1,684 Weighted Average Number of Ordinary Shares used in Calculating Basic Earnings (Loss) per Share 2,052,200,445 1,726,329,475 Adjustments for calculation of Diluted Earnings per Share: Weighted Average Number of Options over Ordinary Shares - 393,052,311 Weighted Average Number of Performance Shares - 5,432,297 Weighted Average Number of Ordinary Shares Outstanding used in the Calculating Diluted Earnings (Loss) per Share 2,052,200,445 2,124,814,083 In the year ended 30 June 2026, the number of ordinary shares used in the calculation of Diluted Loss per Share is the same as the number used in the calculation of Basic Loss per Share, as options and performance shares are not considered dilutive where a loss is incurred. Annual Report 2026 58
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52 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 19. Tax 2026 2025 $000 $000 a) Assets Deferred Tax Assets Comprise: Accrued Expenses 12 27 Leave Entitlements 173 167 Capital Raising Costs 62 99 Lease Liabilities 346 310 CCS Intangible Assets Fair Value Adjustment - - Tax losses 2,270 693 Other 332 288 Derecognised Deferred Tax Asset in excess of Deferred Tax Liability - - Total Deferred Tax Assets 3,195 1,584 b) Liabilities Deferred Tax Liabilities Comprise: Intangible Assets 563 612 Right of Use Assets 288 302 Other - - Total Deferred Tax Liabilities 851 914 c) Reconciliations i Gross Movements The Overall Movement in the Net Deferred Tax balance is as follows: Opening Balance (Net Deferred Tax Liability) 670 - CCS Intangible Assets Fair Value Adjustment (refer Note 26) - CCS Tax losses Acquired (refer Note 25) - (Charge) / Credit to Income Statement 1,711 733 (Charge) / Credit to Equity (37) (63) Closing Balance – Net Deferred Tax Asset / (Net Deferred Tax Liability) 2,344 670 ii Deferred Tax Assets The Movement in Deferred Tax Assets for Each Temporary Difference During the Year is as follows: Accrued Expenses Opening Balance 27 40 (Charge) / Credit to Income Statement (15) (13) Closing Balance 12 27 Provision for Leave Opening Balance 167 143 (Charge) / Credit to Income Statement 6 24 Closing Balance 173 167 Capital Raising Costs Opening Balance 99 162 (Charge) / Credit to Income Statement - - (Charge) / Credit to Equity (37) (63) Closing Balance 62 99 Notes to the Financial Statements 59
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53 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 19. Tax (cont.) 2026 2025 $000 $000 c) Reconciliations cont. ii Deferred Tax Assets cont. The Movement in Deferred Tax Assets for Each Temporary Difference During the Year is as follows: Lease Liabilities Opening Balance 310 362 (Charge) / Credit to Income Statement 36 (52) Closing Balance 346 310 CCS Intangible Assets Fair Value Adjustment Opening Balance - 641 CCS Acquisition (Charge) / Credit to Income Statement - (641) Closing Balance - - Tax Losses Opening Balance 693 - (Charge) / Credit to Income Statement 1,577 693 Closing Balance 2,270 693 Other Opening Balance 288 550 (Charge) / Credit to Income Statement 44 (262) (Charge) / Credit to Equity - - Closing Balance 332 288 Derecognised Deferred Tax Asset in excess of Deferred Tax Liability Opening Balance - (931) (Charge) / Credit to Income Statement - 931 (Charge) / Credit to Equity - - Closing Balance - - iii Deferred Tax Liabilities Capitalised development expenditure The Movement in Deferred Tax Liabilities for Each Temporary Difference During the Year is as follows: Intangible Assets Opening Balance 612 - Charge / (Credit) to Income Statement (49) 612 Closing Balance 563 612 Right of Use Asset Opening Balance 302 354 Charge / (Credit) to Income Statement (14) (52) Closing Balance 288 302 Other Opening Balance - 613 Charge / (Credit) to Income Statement - (613) Closing Balance - - Annual Report 2026 60
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54 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 20. Related Party Transactions Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. a) Names and positions of key management personnel of CCS in office at any time during the financial year: Directors Mr B Barnes Chief Executive Officer and Managing Director Ms R Wilson Independent Chair and Director – Non-Executive Mr D Hill Independent Director – Non-Executive Mr I Wisenberg Independent Director – Non-Executive Key Management Personnel Mr R Ridge Chief Financial Officer and Company Secretary Key Management Personnel (KMP) remuneration has been included in the remuneration section of the Directors’ Report. The totals of remuneration paid to KMP of the Group during the year was as follows: 2026 2025 $000 $000 Short-Term Employee Benefits 677 635 Post-Employment Benefits 30 33 Share-Based Payments (Shares) 114 127 Share-Based Payments (Options and Performance Shares) 312 218 Total KMP Compensation 1,133 1,013 Short-Term Employee Benefits These amounts include fees and benefits payable to the Non-Executive Directors as well as all salary, paid leave benefits, fringe benefits and cash based annual incentives awarded to the CEO / Managing Director and other KMP. Post-Employment Benefits These amounts are superannuation contributions made during the year. Notes to the Financial Statements 61
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55 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 20. Related Party Transactions (cont.) b) Option Holdings 2026 Directors Balance 01/07/25 Options Granted (2) Options Exercised (1) Options Relinquished Options Expired Balance 30/06/26 Total Vested & Exercisable 30/06/26 Total Unvested 30/06/26 Mr B Barnes 76,500,000 - (35,000,000) - - 41,500,000 1,500,000 40,000,000 Ms R Wilson 11,862,986 - (6,798,700) - - 5,064,286 - 5,064,286 Mr I Wisenberg 2,314,286 - - - - 2,314,286 - 2,314,286 Mr D Hill 2,314,286 - - - - 2,314,286 - 2,314,286 Key Management Personnel Mr R Ridge 20,148,700 1,500,000 (10,098,700) - (50,000) 11,500,000 1,500,000 10,000,000 113,140,258 1,500,000 (51,897,400) - (50,000) 62,692,858 3,000,000 59,692,858 2025 Directors Balance 01/07/24 Granted as Remuneration Options Exercised (1) Options Relinquished Options Expired Balance 30/06/25 Total Vested & Exercisable 30/06/25 Total Unvested 30/06/25 Mr B Barnes (3) (4) 77,500,000 40,000,000 (35,000,000) (6,000,000) - 76,500,000 36,500,000 40,000,000 Ms R Wilson (5) 8,048,700 3,814,286 - - - 11,862,986 6,798,700 5,064,286 Mr I Wisenberg (5) (6) - 2,314,286 - - - 2,314,286 - 2,314,286 Mr B O’Dwyer (7) 500,000 - - - - 500,000 500,000 - Mr D Hill (5) - 2,314,286 - - - 2,314,286 - 2,314,286 Key Management Personnel Mr R Ridge 20,897,400 10,000,000 (10,098,700) (550,000) (100,000) 20,148,700 10,148,700 10,000,000 106,946,100 58,442,858 (45,098,700) (6,550,000) (100,000) 113,640,258 53,947,400 59,692,858 1. Exercise of options previously received through participation in the underwritten renounceable entitlement offer to eligible shareholders or underwriting thereof. 2. On 30 June 2026, the Company entered into a number of unsecured loan agreements to provide total funding of $1,600,000 to assist with the Group’s short-term working capital requirements (refer Note 13). Under the loan agreements, the Company agreed to grant 10 unlisted options for every $1 of the loan. The options have an exercise price of $0.33 and expire 30 June 2028. Mr Ridge contributed $150,000 of the total loan proceeds and received 1,500,000 options. The options were accounted for in the year ended 30 June 2026, while the options were formally issued 1 July 2026. 3. 6,000,000 unlisted options were previously issued to the Company's CEO/Managing Director as a Long Term Incentive (LTI) in the year ended 30 June 2021. These options were voluntarily relinquished on 8 October 2024, ahead of shareholder consideration of a new LTI structure for the Company's CEO/Managing Director at the AGM held 14 November 2024 (refer Footnote 4 below for details of the new LTI structure). 4. As part of a refreshed Long-Term Incentive (LTI), the Company issued 40,000,000 unlisted options and 10,000,000 performance shares to incentivise, retain and reward the Company's CEO / Managing Director. This follows the voluntary relinquishment of the previous LTI structure (refer Footnote 3 above). Shareholder approval was obtained on 14 November 2024. The options have an exercise price of $0.024, vest on 10 June 2027 subject to continued service and expire 10 December 2028. 5. An issue of 3,814,286 options to Ms Rebecca Wilson (Non-Executive Chair) and 2,314,286 options each of Messrs Dan Hill and Ian Wisenberg (Non-executive directors) on 10 December 2024, following shareholder approval. The options have a two-year vesting period and an expiry date of 10 December 2027. 6. Mr Wisenberg commenced as a director on 1 October 2024. 7. The ending balance for Mr B O’Dwyer for the 2025 financial year is as at the date of his retirement, being 14 November 2024. This ending balance for the year ended 30 June 2025 is not included in the opening balance for the year ended 30 June 2026. Annual Report 2026 62
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56 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 20. Related Party Transactions (cont.) c) Shareholdings 2026 Directors Balance 30/06/25 Received as Remuneration Options Exercised (1) Net Change Other Balance 30/06/26 (or date of retirement) Mr B Barnes (2) 100,713,606 3,545,581 35,000,000 - 139,259,187 Ms R Wilson 20,396,100 - 6,798,700 - 27,194,800 Mr I Wisenberg - - - - - Mr D Hill 212,665,188 - - - 212,665,188 Key Management Personnel Mr R Ridge (3) 32,266,518 1,294,742 10,098,700 - 43,659,960 Total 366,041,412 4,840,323 51,897,400 - 422,779,135 2025 Directors Balance 30/06/24 Received as Remuneration Options Exercised (1) Net Change Other (7) Balance 30/06/25 (or date of retirement) Mr B Barnes 73,153,047 - 35,000,000 (7,439,441) 100,713,606 Ms R Wilson 20,396,100 - - - 20,396,100 Mr I Wisenberg (4) - - - - - Mr B O’Dwyer (5) 805,053 - - - 805,053 Mr D Hill 212,665,188 - - - 212,665,188 Key Management Personnel Mr R Ridge (6) 20,877,089 1,290,729 10,098,700 - 32,266,518 Total 327,896,477 1,290,729 45,098,700 (7,439,441) 366,846,465 1. The exercise of options previously received through participation in the underwritten renounceable entitlement offer to eligible shareholders or the underwriting thereof. 2. The CEO / Managing Director is eligible for a maximum annual cash incentive of 30% of his annual salary, subject to achievement of performance targets set annually by the Board. For the prior year ended 30 June 2025, the board awarded a cash bonus of $91,476. The incentive was recognised as an expense in the prior year ended 30 June 2025. Mr Barnes elected to receive this cash bonus in ordinary shares, at the price per share of $0.0258, being a VWAP of the Company’s ordinary shares for the month of July 2025. The shares were issued on 3 December 2025 following shareholder approval at the AGM held on 17 November 2025. 3. The 1,294,742 shares were issued to Mr Ridge in the year ended 30 June 2026, comprising two amounts: 1) participation in the in the Executive Team annual incentive receivable in shares. The value of the shares to be awarded by the Board is based on an assessment of corporate performance against preset KPI's. Mr Ridge was awarded an amount of $22,097 relating to performance in the prior year ending 30 June 2025. The incentive was recognised as an expense in the prior year ended 30 June 2025. 856,473 ordinary shares were issued on 5 August 2025 based on a price per share of $0.0258, being a VWAP of the Company’s ordinary shares for the month of July 2025; and 2) participation in the granting of performance shares to the executive team on 4 August 2024, to minimise cash-based remuneration increases. The 438,269 performance shares granted to Mr Ridge vested on 31 July 2025 and the resulting 438,269 ordinary shares were issued on 4 August 2025. 4. Mr Wisenberg commenced as a Director on 1 October 2024. From 1 April 2025 Mr Wisenberg has elected to receive his cash-based Directors fees in ordinary shares, subject to shareholder approval at the Company’s 2026 AGM. The total Director’s fees owing to Mr Wisenberg over this period is $67,500, proposed to be settled through the issue of 2,820,513 ordinary shares in the year ended 30 June 2027. The number of shares being based on a monthly VWAP applicable to the Director’s fees owing for each month. 5. The ending balance for Mr B O’Dwyer for the 2025 financial year is as at the date of his retirement, 14 November 2024. This ending balance for the year ended 30 June 2025 is not included in the opening balance for the year ended 30 June 2026. 6. The 1,290,729 shares issued to Mr Ridge in the year ended 30 June 2025 comprised two amounts: 1) participation in the in the Executive Team annual incentive received in shares. The value of the shares to be awarded by the Board is based on an assessment of corporate performance against preset KPI's. Mr Ridge was awarded 940,729 ordinary shares relating to performance in the prior financial year ended 30 June 2024; and 2) participation in the granting of performance shares on 15 February 2024 to a number of staff in relation to the development of an additional analysis module for use on the APAS® Independence in the pharmaceutical industry. The 350,000 performance shares granted to Mr Ridge converted into the same number of ordinary shares on 31 January 2025, following achievement of the required development milestones. 7. Ordinary shares sold on market. Notes to the Financial Statements 63
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57 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 20. Related Party Transactions (cont.) d) Performance Shares 10,000,000 performance shares were granted to Mr Barnes on 10 December 2024 as part of a refreshed LTI. The 10,000,000 performance shares vest into the same number of ordinary shares on 10 December 2028, subject to achievement of $0.07 share price performance hurdle (based on a 90 day VWAP immediately prior to that date) and continuity of service. Directors’ Related Entity Transactions with the Group There were no Director related entity transactions during the year. 21. Financial Risk Management a) Financial Risk Management Policies The Group’s financial instruments consist mainly of deposits with banks, and accounts receivable, borrowings and payables. The Group does not invest in any derivative instruments. ii) Treasury Risk Management The Board receives regular reports to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts. The Board’s overall risk management strategy seeks to assist the Group in meeting its financial targets, while minimising potential adverse effects on financial performance. ii) Financial Risk Exposures and Management The main risks the Group is exposed to through its financial instruments are interest rate risk, foreign currency risk, liquidity risk and credit risk. Interest Rate Risk Interest rate risk is managed with a mixture of short-term fixed and floating rate deposits. At 30 June 2026 $0.08 million (2025: $0.08 million) of the Group’s cash was held in short-term deposits with a fixed interest rate. At the current level of cash this is not considered a material risk. On 30 June 2026, the Company entered into a number of unsecured loan agreements to provide total funding of $1,600,000 to assist with the Group’s short-term working capital requirements (refer Note 13). The amount of $1,680,000 is due for repayment on 31 December 2026, comprising the loan amount of $1,600,000 together with a fixed interest amount of $80,000. Under the loan agreements, the Company agreed to issue 16,000,000 unlisted options. As such there is no existing exposure to interest rates. The loan from the South Australian Government included an early repayment clause, where all proceeds received by CCS on the exercise of options issued under the rights issue (ASX: CC5OA, expiring 15 November 2025) were to be first applied to repayment of the loan. During the year ended 30 June 2026, CCS received proceeds of $3,199,000 from the exercise of these options, of which $975,000 was utilised to repay the loan. As such, there is no existing exposure to interest rates. Foreign Currency Risk The consolidated Group is exposed to the impact of fluctuations in exchange rates on instrument sales which are predominantly denominated or quoted based on a list price of US$350,000 as at 30 June 2026. This is equivalent to AU$508,000 based on the USD:AUD exchange rate of 0.6885 at 30 June 2026. A 10% increase in the USD:AUD exchange rate to 0.7574 would impact revenue by reducing the instrument price to AU$462,000. Conversely a 10% decrease in the USD:AUD exchange rate to 0.6197 would impact revenue by increasing the instrument price to AU$565,000. Liquidity Risk The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash deposits are maintained. Annual Report 2026 64
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58 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 21. Financial Risk Management (cont.) a) Financial Risk Management Policies cont. Credit Risk The Group manages credit risk by reviewing exposures and ensuring it maintains sufficient cash deposits to meet its operational needs. The maximum exposure to credit risk is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Board monitors credit risk by actively assessing the rating quality and liquidity of counter parties: • Only banks and financial institutions with a credit rating of ‘A’ long term (Standard and Poors rating) are used; and • All potential customers are assessed for credit worthiness, taking into account their size, market position and financial standing. b) Financial Instrument Composition and Maturity Analysis The tables below provide the amounts related to the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments. As such, the amounts may not reconcile to the statement of financial position. Weighted Average Effective Interest Rate % Floating Interest Rate $ 000 Within 1 Year $ 000 1 to 5 Years $ 000 Over 5 Years $ 000 Non-Interest Bearing $ 000 Total $ 000 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Financial Assets Cash and Cash Equivalents 2.2% % 0.7% 1,697 1,265 - - - - - - - - 1,697 1,265 Receivables 0% 0% - - - - - - - - 1,993 1,457 1,993 1,457 Total Financial Assets 1,697 1,265 - - - - - - 1,993 1,457 3,690 2,722 Financial Liabilities Trade Payables 0% 0% - - - - - - - - 1,458 1,516 1,458 1,516 Lease Liabilities 3.3% 3.4% - - 216 226 1,167 981 - 32 - - 1,383 1,239 Share-based Liability 0% 0% - - - - - - - - 169 104 169 104 Loan 10% 2.8% - - 1,600 - 974 - - - - 1,600 974 Total Financial Liabilities - - 1,816 226 1,167 1,955 - 32 1,627 1,620 4,610 3,833 All current trade payables are expected to be paid within four months of balance date. c) Net Fair Values The net fair values of all current financial assets and liabilities approximate their carrying value, except where otherwise stated. Notes to the Financial Statements 65
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59 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 22. Share-Based Payments The total of $731,000 (2025: $480,000) was expensed as Share Based Payments relating to options and performance shares granted to Directors, employees and consultants – refer to Note 16 which contains detailed disclosures related to the share-based payment expenses. A further $155,000 (2024: $188,000) is included in Employee Benefits Expense relating to remuneration planned to be satisfied through the issue of CCS Shares subsequent to the end of the financial year (refer Note 3(b)). During the financial year $175,000 (2025: $60,000) in amounts owing to Directors and employees were satisfied through the issue of CCS Shares, having been expensed in a prior year (refer Note 15). The following tables detail the unlisted options and performance shares issued as share-based payments. Unlisted options Grant Date Expiry Date Exercise Price Balance 30 June 2025 Granted Exercised Expired Balance 30 June 2026 31 August 2020 26 August 2025 $0.175 786,667 - - (786,667) - 8 January 2024 8 January 2026 (1) $0.014 2,500,000 - (2,500,000) - 9 May 2016 11 April 2026 $0.141 500,000 - - (500,000) - 18 November 2016 7 August 2026 $0.157 1,500,000 - - - 1,500,000 31 January 2016 22 December 2026 $0.320 100,000 - - - 100,000 15 January 2025 15 January 2027 (1) $0.019 2,500,000 - (2,500,000) - - 1 March 2017 28 February 2027 $0.400 100,000 - - - 100,000 23 March 2023 23 March 2027 $0.050 7,500,000 - - - 7,500,000 22 May 2025 22 May 2027 $0.025 11,500,000 - - - 11,500,000 10 December 2024 10 December 2027 $0.014 8,442,858 - - - 8,442,858 23 June 2026 23 June 2028 (2) $0.034 - 9,600,000 - - 9,600,000 30 June 2026 30 June 2028 (3) $0.033 - 16,000,000 - - 16,000,000 10 December 2024 10 December 2028 $0.024 40,000,000 - - - 40,000,000 15 January 2025 10 December 2028 $0.024 40,000,000 - - - 40,000,000 27 November 2019 28 November 2029 $0.630 500,000 - - - 500,000 27 November 2019 28 November 2029 $0.080 500,000 - - - 500,000 29 December 2021 29 December 2031 $0.136 500,000 - - - 500,000 19 December 2023 19 December 2033 $0.033 1,250,000 - - - 1,250,000 118,179,525 25,600,000 (5,000,000) (1,286,667) 137,492,858 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price 2026 $ 2025 $ Options Outstanding at the Beginning of the Year 118,179,525 0.029 33,811,667 0.138 Exercised (5,000,000) 0.017 - - Granted 25,600,000 0.033 102,442,858 0.023 Forfeited & Relinquished - - (9,140,000) 0.147 Expired (1,286,667) 0.162 (8,935,000) 0.249 Options Outstanding at Year End 137,492,858 0.029 118,179,525 0.029 Options Exercisable at Year End 44,250,000 0.042 20,236,667 0.060 The options outstanding at 30 June 2026 had a weighted average exercise price of $0.029 (2025: $0.029) and a weighted average remaining contractual life of 2.1 years (2025: 3.0 years). Exercise prices range from $0.014 to $0.400 (2025: $0.014 to $0.400). The weighted average exercise price of options granted during the year was $0.033 (2025: $0.023). The weighted average exercise price of options exercised during the year was $0.017 (2025: NIL exercised). Annual Report 2026 66
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60 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 22. Share-Based Payments (cont.) Performance shares Grant Date Vesting Date Exercise Price Balance 30 June 2025 Granted Forfeited Vested Balance 30 June 2026 30 August 2024 31 July 2025 (4) Nil 1,474,716 - - (1,474,716) - 15 February 2024 7 February 2026 (5) Nil 4,200,000 - - (4,200,000) - 10 December 2024 10 December 2028 Nil 10,000,000 - - - 10,000,000 15,674,716 - - (5,674,716) 10,000,000 1. 2,500,000 options were exercised on 23 December 2025 (exercise price $0.014) and 2,500,000 were exercised on 13 May 2026 (exercise price $0.019). Options were previously issued to an investor relations consultant as part of their contracted remuneration over a two-year period. The options vested on 8 January 2025 following the continued provision of services over a 12- month period. 2. Options issued to a consultant on 23 June 2026 for services being provided over a 12-month period. 4,800,000 options vested immediately and 4,800,000 options vest upon both parties agreeing to continue with the contract for the second 6-month term. The options have an exercise price of $0.034 and expire on 23 June 2028. 3. On 30 June 2026, the Company entered into a number of unsecured loan agreements to provide total funding of $1,600,000 to assist with the Group’s short-term working capital requirements (refer Note 13). Under the loan agreements, the Company agreed to issue 16,000,000 unlisted options. The options have an exercise price of $0.33 and expire 30 June 2028. 4. The performance shares issued to four executives in the prior year, as part of their annual remuneration review, to minimise cash-based remuneration increases. The performance shares vested on 31 July 2025. 5. The performance shares were granted in the prior year, to a key technical employee as part of a retention strategy. The performance shares converted into the same number of ordinary shares on 7 February 2026, subject to continued employment through to that date. 23. Segment Reporting a) The Group operates in one business segment, being the development and commercialisation of innovative technologies. b) Revenue by Geographic Region 2026 2025 $000 $000 US 2,087 1,016 UK 867 1,553 Germany 685 229 Denmark 568 - Australia 272 1,994 Netherlands 74 448 Sweden 44 896 China 35 494 France 35 - Total Revenue 4,667 6,630 c) Assets by Geographical Region The main business operations, including product development and manufacturing operations is based in Australia, with three sales executives based overseas. d) Major Customers The Group recognised $1,466,000 in sales revenue from AstraZeneca (2025: $4,035,000). Notes to the Financial Statements 67
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61 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 24. Parent Entity Information Set out below is the supplementary information in relation to the parent entity, Clever Culture Systems Limited. Statement of Profit or Loss and Other Comprehensive Income Parent Parent 2026 2025 $000 $000 Profit (Loss) After Income Tax (2,312) 26,889 Total Comprehensive Loss (2,312) 26,889 Statement of Financial Position Total Current Assets 6,399 5,054 Total Non-Current Assets 44,186 41,200 Total Assets 50,584 46,254 Total Current Liabilities 3,981 2,364 Total Non-Current Liabilities 3,675 2,766 Total Liabilities 7,656 5,130 Net Assets 42,928 41,124 Equity Issued Capital 57,549 54,164 Option Reserve 2,115 1,673 Accumulated Losses (16,736) (14,713) Total Equity 42,928 41,124 Contingent Liabilities The parent entity had no contingent liabilities as at 30 June 2026. Capital Commitments - Property, Plant and Equipment The parent entity had no capital commitments for property, plant and equipment as at 30 June 2026. Material Accounting Policies The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in Note 1. 25. Credit Standby Arrangements The Group has a credit card facility of $50,000. This facility was used to the extent of $21,000 at balance date. Annual Report 2026 68
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62 | Page NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2026 (CONT.) 26. Events After the Balance Sheet Date On 1 July 2026, the Company issued 16,000,000 unlisted options. The options have an exercise price of $0.33 and expire 30 June 2028. The options were associated with the establishment of an unsecured short-term loan on 30 June 2026. The value of these options was fully expensed in the year ended 30 June 2026 (refer Notes 16 and 22). On 7 August 2026, 1,500,000 options expired (exercise price $0.157). The options were held by the Company’s CEO / Managing Director. On 13 August 2026, the Company issued 2,632,340 ordinary shares under the annual incentive plan for the Executive Team. The value of the incentive payment was awarded by the Board considering the performance of the Company against pre-set objectives, and the price per ordinary share was determined by the VWAP for the month of July 2026. Other than the above, there has not arisen any other matters or circumstances, since the end of the financial year, which significantly affected or could affect the operations of the Group, the results of those operations, or the state of the Group in future years. 28. Group Details The registered office and principal place of business of the Group is: 16 Anster Street, Adelaide SA 5000 Phone: +61 8 8227 1555 Website: www.cleverculturesystems.com Notes to the Financial Statements 69
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63 | Page Consolidated Entity Disclosure Statement The following information is provided in accordance with the requirements of Section 295 of the Corporations Act 2001. Entity Name Entity Type Place of Incorporation Ownership Interest Tax Residency Clever Culture Systems Limited (parent entity) Body Corporate Australia N/A Australia Clever Culture Systems AG Body Corporate Switzerland 100% Australia & Switzerland At 30 June 2026, no entity within the consolidated group was a trustee of a trust, a partner in a partnership, or a participant in a joint venture. Annual Report 2026 70
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64 | Page Directors' Declaration The Directors of the Company declare that: 1. The financial statements and notes are in accordance with the Corporations Act 2001 and: • comply with Accounting Standards, which as stated in accounting policy Note 1 to the financial statements constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS) and the Corporations Regulations 2001; and • give a true and fair view of the financial position as at 30 June 2026 and of the performance for the year ended on that date of the Company; 2. The CEO and Managing Director and Chief Finance Officer have each declared that: • the financial records of the Company for the financial year have been properly maintained in accordance with section 286 of the Corporations Act 2001; • the financial statements and notes for the financial year comply with the Accounting Standards; and • the financial statements and notes for the financial year give a true and fair view; 3. In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. 4. With regard to the Consolidated entity disclosure statement, the statement is true and correct and complies with the requirements of Section 295 of the Corporations Act 2001. The Board has received assurance from the CEO and Managing Director and the Chief Financial Officer that the declaration is founded on a sound system of risk management and internal control and that system is operating effectively in all material respects in relation to financial reporting risks. This declaration is made in accordance with a resolution of the Board of Directors. Chief Executive Officer and Managing Director Brenton Barnes Chair Rebecca Wilson Dated at Adelaide this 31st day of August 2026. Notes to the Financial Statements 71
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LBT INNOVATIONS LIMITED ABN 95 107 670 673 AUDITOR’S INDEPENDENCE DECLARATION As the lead auditor for the audit of the financial report of LBT Innovations Limited and controlled entity for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. HLB Mann Judd Audit (SA) Pty Ltd Travis Rickard Chartered Accountants Director Adelaide, South Australia 28 August 2024 Annual Report 2026 72 Independent Auditor’s Report Independent Auditor’s Report to the Members of Clever Culture Systems Limited REPORT ON THE AUDIT OF THE FINANCIAL REPORT Opinion We have audited the financial report of Clever Culture Systems Limited (“the Company”) and its controlled entity (“the Group”) which comprises the consolidated statement of financial position as at 30 June 202 6, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of material accounting policy information, the consolidated entity disclosure statement, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Group’s financial position as at 30 June 202 6 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Group, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 1 in the financial report, which indicates that the Group incurred a net loss before tax of $4,715,000 and had net cash outflows from operating and investing activities of $3,047,000 during the year ended 30 June 2026. These events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Group’s a bility to continue as a going concern. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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LBT INNOVATIONS LIMITED ABN 95 107 670 673 AUDITOR’S INDEPENDENCE DECLARATION As the lead auditor for the audit of the financial report of LBT Innovations Limited and controlled entity for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. HLB Mann Judd Audit (SA) Pty Ltd Travis Rickard Chartered Accountants Director Adelaide, South Australia 28 August 2024 Independent Auditor’s Report 73 Independent Auditor’s Report Key Audit Matter How our audit addressed the key audit matter Impairment of Intangible Assets Note 10 Intangible Assets The carrying value and subsequent impairment of Intangible Assets is a key audit matter as: - These assets related to the capitalised development costs in respect of APAS Contact Plates. - Under Australian Accounting Standards, an entity is required to assess throughout the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, an entity shall estimate the recoverable amount of the asset. The impairment testing process is complex and highly judgemental and is based on assumptions and estimates that are affected by expected future performance and market conditions. Our procedures included but were not limited to the following: - Evaluated and assessed the key assumptions used in management’s estimates, including assessing whether sales forecasts were reasonable and supportable. - Performed sensitivity analysis on the key assumptions and assessed the effect on the carrying value. - Assessed the discount rate used in the impairment assessment. - Considered the adequacy of the financial report disclosure regarding impairment and the carrying value for the APAS Contact Plates. - Tested amounts capitalised to ensure they have been recorded in accordance with AASB 138 Intangible Assets. - Tested amortisation of the APAS Contact Plate to ensure amortisation commenced when the asset became available for use. Equity Note 16 Share Based Payments Reserve The accounting treatment for the valuation of options is complex due to the need for an accurate valuation, measurement, compliance with accounting standards and comprehensive financial statements disclosures. Our procedures included but were not limited to the following: - Reviewed the terms and conditions of all new share - based payment arrangements entered into during the financial year. - Reviewed and assessed the key assumptions used in the valuation of options issued. - Recalculated management’s valuations of the options and performance shares issued during the financial year. - Reviewed the appropriateness of vesting expense recognised during the period to ensure this is being appropriately recognised over the vesting period. - Reviewed management’s accounting treatment for options/performance rights that were cancelled/lapsed during the financial year. - Reviewed the related financial report disclosures and ensured the disclosures are in accordance with the requirements of AASB 2 Share-based payments. Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Director’s Report for the year ended but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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LBT INNOVATIONS LIMITED ABN 95 107 670 673 AUDITOR’S INDEPENDENCE DECLARATION As the lead auditor for the audit of the financial report of LBT Innovations Limited and controlled entity for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. HLB Mann Judd Audit (SA) Pty Ltd Travis Rickard Chartered Accountants Director Adelaide, South Australia 28 August 2024 Annual Report 2026 74 Independent Auditor’s Report Responsibilities of the Directors for the Financial Report The directors of the Group are responsible for the preparation of: a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: i. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ii. the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the d irectors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggre gate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis fo r our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our o pinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
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LBT INNOVATIONS LIMITED ABN 95 107 670 673 AUDITOR’S INDEPENDENCE DECLARATION As the lead auditor for the audit of the financial report of LBT Innovations Limited and controlled entity for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. HLB Mann Judd Audit (SA) Pty Ltd Travis Rickard Chartered Accountants Director Adelaide, South Australia 28 August 2024 Independent Auditor’s Report 75 Independent Auditor’s Report Auditor’s Responsibilities for the Audit of the Financial Report (continued) We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s repor t unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. REPORT ON THE REMUNERATION REPORT Opinion on the Remuneration Report We have audited the Remuneration Report included within the Directors’ Report for the year ended 30 June 2026. In our opinion, the Remuneration Report of Clever Culture Systems Limited for the year ended 30 June 2026 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. HLB Mann Judd Audit (SA) Pty Ltd Travis Rickard Chartered Accountants Director Adelaide, South Australia 31 August 2026
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Statement of Issued Securities The number of shareholders is 2,619 and there are 2,182,255,173 ordinary fully paid shares on issue (ASX: CC5). The number of unlisted option holders is 33 and there are 135,992,858 unlisted options as follows: Options expiry date No of holders Number on issue Number of restricted securities Release/vesting date 22 December 2026 1 100,000 28 February 2027 1 100,000 23 March 2027 1 7,500,000 22 May 2027 1 11,500,000 10 December 2027 3 8,442,858 8,442,858 10 December 2026 23 June 2028 1 9,600,000 4,800,000 23 December 2026 30 June 2028 16 16,000,000 10 December 2028 5 80,000,000 80,000,000 10 June 2027 28 November 2029 2 1,000,000 29 December 2031 1 500,000 19 December 2033 1 1,250,000 33 135,992,858 93,242,858 The total number of holders of unlisted performance shares is 1 and there are 10,000,000 performance shares as follows: Number of holders Number on issue Number of restricted securities Release date 11 10,000,000 10,000,000 10 December 2028 1 The performance shares were issued to the Company's CEO / Managing Director on 14 November 2024 as part of a refreshed Long Term Incentive structure. The performance shares vest into the same number of ordinary shares on 10 December 2028, subject to a share price performance hurdle of $0.07 (based on a 90-day VWAP immediately prior to 10 December 2028) and continuity of service. 76 Shareholder Information As at 14 August 2026 Annual Report 2026
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Distribution of Securities Equity Distribution No of Share-holders Number of Option holders Expiry 22/12/26 Expiry 28/02/27 Expiry 23/03/27 Expiry 22/05/27 Expiry 10/12/27 Expiry 23/06/28 Expiry 30/06/28 1 – 1,000 160 - - - - - - - 1,001 – 5,000 297 - - - - - - - 5,001 – 10,000 382 - - - - - - - 10,001 – 100,000 1,044 1 1 - - - - 2 100,001 and over 736 - - 1 1 3 1 14 2,619 1 1 1 1 3 1 16 Equity Distribution Number of Option holders Expiry 10/12/28 Expiry 28/11/29 Expiry 29/12/31 Expiry 19/12/33 1 – 1,000 - - - - 1,001 – 5,000 - - - - 5,001 – 10,000 - - - - 10,001 – 100,000 - - - - 100,001 and over 5 2 1 1 5 2 1 1 The number of shareholdings held in less than marketable parcels is 1,348 totaling 14,779,329 shares. Shareholder Information 77 Shareholder Information As at 14 August 2026
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Substantial Shareholders The most recent substantial holder notifications as at 14 August 2026 are as follows: Equity Distribution Notification date Number of shares held Percentage of total issued capital Richard Green and associated entities* 15/01/2026 288,668,353 13.28% Unicore Investments Pty Ltd 13/11/2025 293,920,000 13.40% Viking BCM Pty Ltd 13/11/2025 212,665,188 10.04% Brenton Barnes and associated entities 01/10/2025 135,713,606 7.11% *Richard Green includes the holding of Viking BCM Pty Ltd, as an associated entity. The number of shares held and/or percentage of total issued capital in the table above is at the date of the last substantial shareholder notice and may differ from the top 20 shareholder report on the following page. Voting Rights Refer to Note 15 of the Annual Financial Report. On Market Buy Back There is no current on market buy back. 78 Shareholder Information As at 14 August 2026 Annual Report 2026
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Top 20 Shareholders Rank Name Number of Shares % of Shares 1 UNICORE INVESTMENTS PTY LTD 280,323,520 12.85 2 VIKING BCM PTY LTD 212,665,188 9.75 3 B MORAN PTY LTD 104,180,499 4.77 4 MR BRENTON BARNES 98,545,581 4.52 5 FABIAN WISPLINGHOFF 87,586,800 4.01 6 HILMAR WISPLINGHOFF 87,586,800 4.01 7 JATAYCO NOMINEES PTY LTD <GREEN SF A/C> 75,503,165 3.46 8 MR MARK FRANK CAPOLUPO 63,500,000 2.91 9 CHAG PTY LTD 62,815,772 2.88 10 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 57,423,390 2.63 11 MR RAYMOND ROBERT RIDGE <RIDGE FAMILY A/C> 43,659,960 2.00 12 HAWKEYE SMSF PTY LTD 40,000,000 1.83 13 MR ROBERT ANDREW FINDER 31,394,800 1.44 14 HETTICH HOLDING BETEILIGUNGS-UND VERWALTUNGS-GMBH\C 30,660,377 1.40 15 RJE AEROSPACE PTY LTD <EQUID SUPER A/C> 28,117,366 1.29 16 PARKER AND WILSON INVESTMENTS PTY LTD <PARKER AND WILSON S/FUND A/C> 27,194,800 1.24 17 MRS CATHERINE MARY COSTELLO 25,290,272 1.16 18 MR BRIAN THOMAS CLAYTON + MRS JANET CLAYTON 25,014,759 1.15 19 BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT> 24,081,565 1.10 20 SPICEME CAPITAL PTY LTD 20,000,000 0.92 1,425,544,614 65.32 Shareholder Information 79 Shareholder Information As at 14 August 2026
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Top 20 Unlisted Option-holders Rank Name Units % Units 1 MR BRENTON JOHN BARNES 40,000,000 29.41% 2 L39 PTY LTD <NO 12 A/C> 21,785,000 16.02% 3 MR RAYMOND ROBERT RIDGE <RIDGE FAMILY A/C> 11,500,000 8.45% 4 STEVEN GIGLIO 10,100,000 7.43% 5 MR RHYS HILL 10,100,000 7.43% 6 JACK BROWN 10,000,000 7.35% 7 LIND GLOBAL FUND II (AU) LLC 7,500,000 5.51% 8 JATAYCO NOMINEES ATF RG FAMILY TRUST 5,000,000 3.68% 9 REBECCA WILSON 3,814,286 2.80% 10 MR DANIEL HILL 2,314,286 1.70% 11 MR IAN WISENBERG 2,314,286 1.70% 12 G CHAN PENSION PTY LIMITED <CHAN SUPERANNUATION FUND A/C> 1,800,000 1.32% 13 PARKER AND WILSON PTY LTD 1,250,000 0.92% 14 LOLLYWATCH PTY LTD <PST SUPER A/C> 1,000,000 0.74% 15 RETIRE PTY LTD <120 RETIREMENT FUND A/C> 1,000,000 0.74% 16 DINWOODIE INVESTMENTS PTY LTD 1,000,000 0.74% 17 NICHOLAS DERMOTT MCDONALD 1,000,000 0.74% 18 GAILFORCE MARKETING & PR PTY LIMITED <HALE AGENCY SUPER FUND A/C> 800,000 0.59% 19 ONMELL PTY LTD <ONM BPFAM A/C> 750,000 0.55% 20 MR SIMON ARKELL 500,000 0.37% 133,527,858 98.19% Register of Securities The register of securities is located at: Computershare Investor Services Pty Limited GPO Box 1903 Adelaide, South Australia 5001, Australia Enquiries (within Australia) 1300 729 063 Enquiries (outside Australia) +61 3 9415 4675 Facsimile +61 8 8236 2305 web.queries@computershare.com.au computershare.com.au 80 Shareholder Information As at 14 August 2026 Annual Report 2026
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Annual Report Year ending 30 June 2026 Trusted artificial intelligence — APAS ® Independence for pharmaceutical manufacturing
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Annual Report Year ending 30 June 2026 Trusted artificial intelligence — APAS ® Independence for pharmaceutical manufacturing