Annual financial statement
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Cynata Therapeutics Limited Office: L3 100 Cubitt St, Cremorne, VIC 3121, Australia T: +61 3 7067 6940 W: www.cynata.com ABN 98 104 037 372 Appendix 4E Preliminary final report 1. Details of reporting period Name of entity Cynata Therapeutics Limited (the Company) ABN 98 104 037 372 Reporting Period Year ended 30 June 202 6 Previous Corresponding Period Year ended 30 June 202 5 Presentation Currency Australian Dollars ($) 2. Results for announcement to the market Key information 30 June 202 6 $ 30 June 202 5 $ Increase/ (decrease) % Amount change $ Revenues from ordinary activities 1,791,103 2,112,839 (15.23) (321,736) Loss from ordinary activities after tax attributable to members 9,089,281 9,390,586 (3.21) (301,305) Net loss for the period attributable to members 9,089,281 9,390,586 (3.21) (301,305) Net tangible (deficiency)/ asset per share (0.003) 0.018 - - 3. Consolidated statement of profit or loss and other comprehensive income Refer to attached consolidated financial statements. 4. Consolidated statement of financial position Refer to attached consolidated financial statements. 5. Consolidated s tatement of cash flows Refer to attached consolidated financial statements. 6. Consolidated statement of changes in equity Refer to attached consolidated financial statements. 7. Dividends/Distributions No dividends declared in current or prior year. 8. Details of dividend reinvestment plans Not applicable.
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9. Details of entities over which control has been gained or lost during the period Not applicable. 10. Details of associate and joint venture entities Not applicable. 11. Any other significant information needed by an investor to make an informed assessment of the Company’s financial performance and financial position Refer to attached consolidated financial statements. 12. Foreign entities Refer to attached consolidated financial statements. 13. Commentary on results for period and explanatory information Cynata Therapeutics Limited (“Cynata ” or the “Company”) and its controlled entities (“the Group”) incurred a net loss from operations for the financial year ended 30 June 202 6 of $ 9,089,281 ( 2025: $9,390,586) after accounting for an R&D refund of $ 1,711,618 (2025: $1,885,140). At 30 June 2026, the Group had a cash balance of $ 897,418 ( 2025: $5,049,744) and net liabilities of $ 394,240 ( 2025: net assets of $5,981,735). The net cash outflow from operating activities for the financial year was $ 6,735,676 ( 2025 : $8,720,335). On 17 June 2026, the Company announced the primary evaluation results of the Phase 2 clinical trial of CYP -001 in patients with high-risk acute graft versus host disease (HR -aGvHD). While there were no safety concerns identified, with a similar adverse eve nt profile between groups, there were also no significant differences between the control and active groups in the primary or key secondary efficacy endpoints. On 19 June 2026, the Company received top-line results of this trial from USYD. Again, there were no safety concerns identified, with a similar adverse event profile between groups. However, there were also no statistically significant differences between the active and control groups in either of the co- primary endpoints, which assessed pain reduction and change in cartilage thickness, respectively, from baseline to 24 months. There was a substantial and durable reduction in knee pain intensity at all timepoints from 3 -24 months compared to baseline (secondary endpoint), but no significant differences between groups at any timepoint. For more information, including subsequent events to balance date, refer to the attached consolidated financial statements. 14. Audit This preliminary final report is based on accounts which are in the process of being audited. It is likely that the Auditor will issue an Independent Auditor’s Report that will contain an ‘Emphasis of Matter’ paragraph drawing attention to a material uncertainty that may cast a significant doubt about the Group’s ability to continue as a going conc ern. The attached preliminary final report has been prepared on a going concern basis. Please refer to note 2 Going Concern. Dr Geoff Brooke Non-Executive Chair 31 August 2026
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Contents Consolidated statement of profit or loss and other comprehensive income 1 Consolidated statement of financial position 2 Consolidated statement of changes in equity 3 Consolidated statement of cash flows 4 Notes to the consolidated financial statements 5
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1 Consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2026 Year ended Note 30 June 2026 $ 30 June 2025 $ Interest income 79,485 227,699 Other income 1,711,618 1,885,140 Total revenue and other income 1,791,103 2,112,839 Product development costs 3 (5,381,298) (7,398,004) Employee benefits expenses (1,848,277) (2,067,760) Amortisation expenses 4 (260,313) (282,964) Impairment expenses 4 (1,353,626) - Share based payment expenses (129,930) (260,415) Other expenses (1,906,940) (1,494,282) (Loss) before income tax (9,089,281) (9,390,586) Income tax expense - - (Loss) for the year (9,089,281) (9,390,586) Other comprehensive income, net of income tax Items that will not be reclassified subsequently to profit or loss - - Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations - - Other comprehensive income for the year, net of income tax - - Total comprehensive loss for the year (9,089,281) (9,390,586) (Loss) for the year attributable to: Owners of Cynata Therapeutics Limited (9,089,281) (9,390,586) Total comprehensive loss for the year attributable: Owners of Cynata Therapeutics Limited (9,089,281) (9,390,586) (Loss) per share: Basic and diluted (cents per share) (3.84) (4.58) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
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2 Consolidated statement of financial position as at 30 June 2026 Note 30 June 2026 $ 30 June 2025 $ Current assets Cash and cash equivalents 897,418 5,049,744 Trade and other receivables 70,546 104,650 Prepayments 151,672 194,618 Total current assets 1,119,636 5,349,012 Non-current assets Intangibles 4 234,965 1,848,904 Total non-current assets 234,965 1,848,904 Total assets 1,354,601 7,197,916 Current liabilities Trade and other payables 1,016,991 941,058 Provisions 5 731,850 275,123 Total current liabilities 1,748,841 1,216,181 Total liabilities 1,748,841 1,216,181 Net (liabilities)/ assets (394,240) 5,981,735 Equity Issued capital 6 92,102,583 89,519,207 Option reserves 8,296,835 8,166,905 Foreign currency translation reserve 4,724 4,724 Accumulated losses (100,798,382) (91,709,101) Total (deficiency)/equity (394,240) 5,981,735 The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
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3 Consolidated statement of changes in equity for the year ended 30 June 2026 Issued Capital Option Reserve Foreign currency translation reserve Accumulated losses Total $ $ $ $ $ Balance at 1 July 2024 81,624,596 7,906,430 4,724 (82,318,515) 7,217,235 Loss for the year - - - (9,390,586) (9,390,586) Other comprehensive income for the year, net of tax - - - - - Total comprehensive income/(loss) for the year - - - (9,390,586) (9,390,586) Issue of ordinary shares (refer to note 6) 8,416,875 - - - 8,416,875 Share issue costs (522,264) - - - (522,264) Share based payments - 260,475 - - 260,475 Balance at 30 June 2025 89,519,207 8,166,905 4,724 (91,709,101) 5,981,735 Balance at 1 July 2025 89,519,207 8,166,905 4,724 (91,709,101) 5,981,735 Loss for the year - - - (9,089,281) (9,089,281) Other comprehensive income for the year, net of tax - - - - - Total comprehensive income/(loss) for the year - - - (9,089,281) (9,089,281) Issue of ordinary shares (refer to note 6) 2,704,000 - - - 2,704,000 Share issue costs (120,624) - - - (120,624) Share based payments - 129,930 - - 129,930 Balance at 30 June 2026 92,102,583 8,296,835 4,724 (100,798,382) (394,240) The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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4 Consolidated statement of cash flows for the year ended 30 June 2026 Year ended Note 30 June 2026 $ 30 June 2025 $ Cash flows from operating activities Payments to suppliers and employees (3,033,092) (3,560,896) Interest received 106,810 253,852 Research and development tax refund received 1,711,618 1,885,140 Development costs paid (5,521,012) (7,298,431) Net cash (used in) operating activities (6,735,676) (8,720,335) Cash flows from investing activities Payments to acquire intellectual property - (50,000) - (50,000) Cash flows from financing activities Proceeds from issue of equity instruments of the Company 6 2,704,000 8,136,935 Payment for share issue costs (120,624) (522,264) Net cash provided by financing activities 2,583,376 7,614,671 Net (decrease) in cash and cash equivalents (4,152,300) (1,155,664) Cash and cash equivalents at the beginning of the year 5,049,744 6,205,418 Effects of exchange rate changes on the balance of cash held in foreign currencies (26) (10) Cash and cash equivalents at the end of the year 897,418 5,049,744 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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5 Notes to the consolidated financial statements for the year ended 30 June 2026 Note 1. General information Cynata Therapeutics Limited (“Cynata” or the “Company”) and its controlled entities (“the Group”) is a for profit company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange. Note 2. Basis of preparation The preliminary final report has been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. The preliminary final report also complies with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). This preliminary final report has been prepared in accordance with ASX Listing Rules as they relate to the Appendix 4E and in accordance with the recognition and measurement requirements of the Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. As such, this preliminary final report does not include all the notes of the type included in an annual financial report and accordingly, should be read in conjunction with the annual report for the year ended 30 June 2025 and any ASX announcements made by the Company during the period. Going concern The preliminary final report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. As at 30 June 2026, the Group had negative working capital of $629,205 (2025: positive $4,132,831) and in the year then ended incurred a loss after tax of $9,089,281 (2025: $9,390,586) and had net operating cash outflows of $6,735,676 (2025: $8,720,335). As at 30 June 2026, the Group had cash and cash equivalents of $897,418 (2025: $5,049,744) and net liabilities of $394,240 (2025: net assets of $5,981,735). During the financial year, the Company announced the primary evaluations results of the Phase 2 clinical trial of CYP-001 in patients with aGvHD. While there was no safety concerns identified, with a similar adverse event profile between groups, there were also no significant differences between the control group and active groups in the primary or key secondary efficacy endpoints. Furthermore, the Company also announced top-line results of the Phase 3 trial of CYP-004 in osteoarthritis. Again, there were no safety concerns identified, with a similar adverse event profile between groups. However, there were also no statistically significant differences between the active and control groups in either of the co -primary endpoints, which assessed pain reduction and change in cartilage thickness, respectively, from baseline to 24 months. There was a substantial and durable reduction in knee pain intensity at all timepoints from 3 -24 months compared to baseline (secondary endpoint), but no significant differences between groups at any timepoint.
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6 The failure to demonstrate efficacy in the Phase 2 clinical trial of CYP-001 in aGvHD and the Phase 3 clinical trial of CYP-004 in osteoarthritis indicates that the economic performance of the Company’s assets may be less positive than previously expected. Specifically, this relates to the value of the patents licensed to Cynata by WARF. In light of the results of these 2 trials and subsequent to the year end, the board of Cynata made all of the Company’s employee positions redundant to reduce costs significantly. It included the position of Chief Executive Officer and Managing Director and other key management personnel positions. Board members also agreed to waive their directors’ fees effective 1 July 2026. Subsequent to the year end, the Company entered into a Research and Development Tax Incentive (R&D TI) loan facility of $600,000 with a commercial lender, secured against the assets of the Company including the anticipated FY26 R&D TI rebate (expected to be approximately $1.7 million). The Company has limited financial resources and does not currently generate operating revenue to fund material development activities. Its ability to execute its strategy, including maintaining and seeking to realise value from its existing technology and acquiring or in-licensing new development opportunities, will depend on careful management of its existing resources and access to additional funding. Such funding may include capital raisings, strategic transactions, partnering or licensing arrangements or other sources of funding. The directors have reviewed the business outlook and cashflow forecasts , including the Group’s expected expenditure and existing contractual obligations and have considered the funding initiatives available to the Group. On this basis, the directors consider that there are reasonable grounds to believe that the Company will be able to continue as a going concern. However, the matters described above, including the Group’s limited financial resources, existing contractual obligations and dependence on obtaining additional funding, indicate the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, whether it will be able to realise its assets and discharge its liabilities in the normal course of business. In the event that the Group is unable to obtain sufficient funding for on-going operational and capital requirements, there is material uncertainty that may cast significant doubt as to whether the Group will continue as a going concern and therefore proce ed with realising its assets and discharging its liabilities in the normal course of business at the amounts stated in the financial report. The preliminary final report do not include any adjustments relating to the recoverability or classification of recorded asset amounts or to the amounts or classification of liabilities that may be necessary should the Group not be able to continue as a going concern. 3. Product development costs 2026 2025 $ $ Research and development expenses 4,963,636 6,565,975 Consultants 168,013 362,913 Travel and accommodation expenses 87,770 284,002 License fees 122,854 137,774 Patent costs 39,025 47,340 5,381,298 7,398,004
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7 4. Intangibles 2026 2025 $ $ Carrying value at beginning of year (i) 1,848,904 1,851,868 Additions (ii) - 280,000 Amortisation (iii) (260,313) (282,964) Impairment charge (iv) (1,353,626) - Net book value of research and development at end of year 234,965 1,848,904 (i) The carrying value at beginning of year represents the fair value attributable to interests in research and development of stem cells is due to, and in recognition of, the successful development activities and data generated by Cynata Incorporated as at the acquisition date (1 December 2013), representing progress toward the eventual commercialisation of the relevant technology less accumulated amortisation. (ii) On 31 July 2024, Cynata issued 916,335 fully paid ordinary shares at a price of $0.251 each for a value of $230,000 to acquire wound dressing technology developed by TekCyte Limited. This technology is a core component of Cynata’s Cymerus iPSC -derived MSC topical wound dressing product candidate, CYP -006TK. Cynata also paid $50,000 cash in addition to the issue of the shares. (iii) An amortisation expense of $ 260,313 has been recognised in profit or loss (20 25: $282,964). (iv) During the financial year, the Group carried out a review of the intangibles considering the results of the Phase 2 clinical trial of CYP -001 in aGvHD and the Phase 3 clinical trial of CYP -004 in osteoarthritis. The failure to demonstrate efficacy in the abovementioned trials indicates that the economic performance of the Company’s assets may be less positive than previously expected. As a result of this review, the Group determined that the carrying value of these relevant intangible assets were impaired and recognised an impairment loss of $1,353,626, reducing their carrying value to nil as at 30 June 2026. Specifically, this relates to the carrying value of the patents licensed to Cynata by WARF. The carrying value of the intellectual propert y rights acquired from TekCyte is unaffected by the recent aGvHD and osteoarthritis results, as those intellectual property rights are applicable only to the Company’s wound dressing product. 5. Provisions 2026 2025 $ $ Provisions for employee entitlements 285,054 275,123 Redundancy provisions (i) 446,796 - 731,850 275,123 (i) On 6 July 2026, the Company announced substantial reductions in expenditure, including board and management changes and the establishment of a Research and Development Tax Incentive (R&D TI) loan facility. All of the Company’s employee positions were made redundant including the positions of Chief Executive Officer and Managing Director, Chief Medical Officer and Chief Business Officer.
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8 6. Issued capital 2026 2025 $ $ 243,454,369 fully paid ordinary shares (2025: 225,954,369) 92,102,583 89,519,207 Fully paid ordinary shares 30 June 2026 30 June 2025 No. $ No. $ Balance at beginning of year 225,954,369 89,519,207 179,631,786 81,624,596 Issue of shares (i) - - 3,150 945 Issue of shares (ii) - - 916,335 230,000 Issue of shares (iii) - - 125,000 25,000 Issue of shares (iv) - - 125,000 25,000 Placement (v) - - 44,444,445 8,000,000 Issue of shares (vi) - - 638,886 115,000 Issue of shares (vii) - - 69,767 20,930 Issue of shares (viii) 11,500,000 - - - Set-off shares (ix) (4,300,000) - - - Issue of set-off shares(x) 4,300,000 1,204,000 - - Issue of shares (xi) 6,000,000 1,500,000 - - Share issue costs - (120,624) - (522,264) Balance at end of the year 243,454,369 92,102,583 225,954,369 89,519,207 (i) Exercise of listed 1 April 2025 options at $0.30 each on 19 July 2024. (ii) Issue of shares on 31 July 2024 pursuant to a Deed of Assignment of Intellectual Property Rights. Refer to note 12 for more information. (iii) Issue of shares on 2 September 2024 in consideration for the first instalment for the provision of investor relations services. (iv) Issue of shares on 8 November 2024 in consideration for the second instalment for the provision of investor relations services. (v) Issue of shares on 16 December 2024 pursuant to an Institutional Placement at $0.18 per share. (vi) Issue of Director shares on 23 January 2025 pursuant to a participation of Directors in the Institutional Placement at $0.18 per share. (vii) Exercise of listed 1 April 2025 options at $0.30 each on 20 February 2025. (viii) Issue of shares on 21 August 2025 pursuant to the At -the-Market Subscription Agreement (“ATM”) at nil consideration. The ATM provides Cynata with up to $7,500,000 of standby equity capital over the coming five years to 31 July 2030. Cynata has ful l discretion as to whether to utilize the ATM, the maximum number of shares to be issued, the minimum issue price of shares and the timing of each subscription. The shares can be bought back at nil consideration at the expiry of the facility. (ix) Set-off shares on 23 January 2026 pursuant to At -the-Market Subscription Agreement with Acuity Capital. (x) Issue of Set -off shares on 23 January 2026 pursuant to At -the-Market Subscription Agreement with Acuity Capital at $0.28 per share. (xi) Issue of shares on 8 May 2026 pursuant to a Placement at $0.25 per share. 7. Events after the reporting period On 6 July 2026, the Company announced substantial reductions in expenditure, including board and management changes and the establishment of a Research and Development Tax Incentive (R&D TI) loan facility. All of the Company’s employee positions were made redundant including the positions of Chief Executive Officer and Managing Director, Chief Medical Officer and Chief Business Officer. The R&DTI loan is for a total of $600,000 and is secured against the Company’ s assets including its anticipated R&D TI rebate for the 2026 financial year. On 6 July 2026, Dr Darryl Maher resigned as director of the Company. Other than the above, there has not been any matter or circumstance occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or state of affairs of the Group in future financial years.