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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 2 Contents Contents .................................................................................................................................. 2 FY26 Financial Snapshot .......................................................................................................... 3 About DUG .............................................................................................................................. 4 What We Do ............................................................................................................................ 5 A Le?er from our MD .............................................................................................................. 6 OperaEonal and Financial Review ........................................................................................... 8 Risk Management .................................................................................................................. 11 Directors’ Report ................................................................................................................... 14 RemuneraEon Report (Audited) ........................................................................................... 21 Auditor’s Independence DeclaraEon .................................................................................... 30 Consolidated Statement of Profit or Loss and Other Comprehensive Income .................... 32 Consolidated Statement of Financial PosiEon ...................................................................... 33 Consolidated Statement of Changes in Equity ...................................................................... 34 Consolidated Statement of Cashflows .................................................................................. 35 Notes to the Consolidated Financial Statements ................................................................. 36 Directors’ DeclaraEon ............................................................................................................ 89 Independent Auditor’s Report .............................................................................................. 90 Corporate Governance Statement ........................................................................................ 93 Shareholder InformaEon ....................................................................................................... 94 Company Directory ................................................................................................................ 96 All financial numbers are expressed in US Dollars unless otherwise stated
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 3 FY26 Financial Snapshot Revenue FY26 US$86.4 million +38% FY25 $62.6 million Normalised EBITDA FY26 $27.4 million +78% FY25 $15.4 million OperaHng cash inflow FY26 $20.9 million +275% FY25 $5.6 million Profit / (loss) aVer tax FY26 $2.6 million +US$7.0m FY25 US$(4.4) million Net debt FY26 US$13.0 million FY25 US$3.9 million Order Book FY26 US$33.6 million (38%) FY25 $52.0 million
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 4 About DUG
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 5 What We Do
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 6 A Letter from our MD Suggested pull quote: "Our intellectual property is at the centre of everything we do. While we have several revenue streams, they are not unique businesses. Each one is a way of moneEsing our core technology. We help clients choose the soluEon that best fits their business needs." Dear fellow shareholders, FY26 was a record year for DUG. Revenue grew 38% to US$86.4 million and normalised EBITDA grew 78% to US$27.4 million, liding our margin to 32% from 25%. We returned to profit, posEng a net profit ader tax of US$2.6 million against a loss of US$4.4 million last year, and generated US$20.9 million of cash from operaEons. Earnings grew at twice the rate of revenue, showing the operaEng leverage within the business. These results are the product of a prolonged period of through-the-cycle investment, not just a single good year . One of the core drivers of our business today is mulE-parameter full waveform inversion imaging ("MP-FWI imaging"), a technology that the Company has now been working on for over a decade. This technology delivers be?er business outcomes for our clients: superior data, delivered faster, that materially reduces drilling risk. DUG ElasEc MP-FWI Imaging, released in FY25, has pushed that further again. The research is now paying for itself many Emes over, and it will keep doing so. Regarding MP-FWI, this year our strategic focus has been on efficiency, producEvity, and quality. Efficiency relates to using fewer compute hours to achieve the same output; producEvity to reducing the amount of man-hours required for each project; and quality to delivery of the best possible results. The code’s robust, full-featured framework, allows us to consistently apply rigorous standards across all iniEaEves. Our intellectual property is at the centre of everything we do. While we have several revenue streams, they are not unique businesses. Each one is a way of moneEsing our core technology. We help clients choose the soluEon that best fits their business needs. In Services, our geoscienEsts apply our IP to our clients' data to deliver superior results. It remains our anchor, growing 23% to US$63.8 million. We conEnue to win a growing share of 4D work, which is typically repeated every eighteen months and gives us a recurring base of projects rather than a pipeline we rebuild each year. In Sodware, clients apply our IP to their own data, in their own environment. DUG Insight revenue grew 33% to US$11.1 million. In High Performance CompuEng as a Service ("HPCaaS"), clients run that same sodware and those same algorithms on our infrastructure, which is purpose-built for the job. HPCaaS revenue grew 383% to US$11.5 million.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 7 Together, Sodware and HPC contributed US$22.6 million, or 26% of Group revenue, compared with 17% in FY25. These products make our earnings more stable and predictable than they have ever been. The Malaysian contract signed in September 2025 shows how these pieces fit together in pracEce. The client licenses our sodware, runs it on our HPC cluster, and works alongside DUG geoscienEsts who are embedded within their teams, helping them get the most out of both. With a total contract value of US$43.3 million over an iniEal three-year term it is the largest sodware and HPC award in our history. FY26 included three quarters at full run-rate. It is the clearest demonstraEon yet that our technology can be sold at scale in whatever form a client needs it. MulE-Client completes the picture, and it is one of the aspects of our business that I am most excited about. Here we apply our IP to exclusive data and license the result to many clients. One dataset, many customers, high margins and revenue that repeats. Following the acquisiEon of mulE-client seismic assets from MulE-Client Resources (Australia), we spent FY26 building the library and associated commercial partnerships. I'm pleased to share that we now have twelve projects in our library at varying stages of compleEon. This is a long-term build in a market considerably larger than the one we serve today. This business will become a significant part of DUG. The industry is busier than it has been in years. Oil prices are higher, exploraEon budgets are rising, and ader a long period of restraint our clients are acEvely looking for new resources again. Reserve life is falling across the majors and the supply gap has to be filled. This means exploraEon in harder places, where imaging quality decides whether a prospect is drillable. That is precisely the problem we built our technology to solve. We enter FY27 within an energised industry, a large pipeline of opportuniEes, a contracted sodware and HPC base, and a growing mulE-client library. My thanks to shareholders for their conEnued support, and I look forward to another year of success and progress.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 8 Operational and Financial Review SUMMARY OF FINANCIAL PERFORMANCE FY26 US$’000 FY25 US$’000 % change Services revenue 63,779 51,866 23% Sodware revenue 11,120 8,332 33% HPCaaS revenue 11,488 2,379 383% Total revenue 86,387 62,577 38% Other income 4,574 3,515 30% Total income 90,961 66,092 38% Employee benefits (39,328) (32,078) 23% Other expenses (25,711) (18,569) 38% EBITDA1 25,922 15,445 68% EBITDA1 margin 30% 25% +5 ppts Normalised EBITDA2 27,422 15,445 78% Normalised EBITDA2 margin 32% 25% +7 ppts DepreciaEon and amorEsaEon (13,710) (12,875) 6% OperaEng profit 12,212 2,570 375% Finance expense (3,634) (4,011) (9%) Profit / (loss) before tax 8,578 (1,441) n.m. Tax expense (5,937) (2,967) 100% Profit / (loss) ader tax 2,641 (4,408) n.m. 1 These items are categorised as non-IFRS informa8on prepared in accordance with ASIC Regulatory Guidance 230 – Disclosing non-IFRS financial informa8on. 2 Normalised EBITDA excludes a US$1.5 million one-off expense rela8ng to the MP2 legal maQer . Please refer to the Company’s ASX release “Update on legal proceedings” released on 25 February 2026 for further informa8on. REVENUE Revenue reached a record US$86.4 million, 38% ahead of FY25, with growth across all three business lines. Services revenue grew 23% to US$63.8 million in FY26. Growth was driven by strong performance in the emerging markets of Brazil and the Middle East, and the conEnued development of the Company’s MulE-Client business.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 9 In FY26 Sodware revenue grew 33% to US$11.1 million and HPCaaS revenue increased 383% to US$11.5 million. Together, Sodware and HPCaaS accounted for 26% of Group revenue, up from 17% in FY25. These products are recurring in nature, giving the Group a more predictable revenue base than in prior years. The services order book was US$33.6 million at 30 June 2026. The order book measures contracted Services work only, and captures neither the contracted Sodware and HPCaaS revenue nor the full value of the growing mulE-client library. The pipeline of opportuniEes entering FY27 is large. Higher oil prices and rising exploraEon budgets are increasing client acEvity, and falling reserve life across the industry is driving exploraEon into more complex seongs where imaging quality determines whether a prospect is drillable. This is where the superior data quality from MP-FWI imaging makes the biggest impact. OPERATING EXPENSES Normalised EBITDA of US$27.4 million was 78% ahead of FY25, with the normalised EBITDA margin expanding from 25% to 32%. The Group returned to profitability in FY26, recording a profit ader tax of US$2.6 million against a loss of US$4.4 million in FY25 (an increase of US$7.0 million). Employee benefits rose 23% to US$39.3 million as headcount was added to support growth. The increase was below the 38% growth in revenue, reflecEng greater employee producEvity and the change in sales mix. Other expenses grew 38% to US$25.7 million (up 30% on a normalised basis) in FY26. This growth was driven by the MP2 se?lement expense, increased partner costs, and incremental IT expenditure due to increased compute capacity. FINANCIAL POSITION Net assets increased to US$51.1 million at 30 June 2026 from US$47.3 million at 30 June 2025. Contract assets increased due to a few projects with milestone-based billing where invoices were only able to be sent early in FY27. Property, Plant, and Equipment (“PPE”) has grown because of investments made in HPC infrastructure during the year and HPC assets coming off lease, which were then transferred from Right-of-Use to PPE. Trade and Other Payables has increased due to HPC infrastructure that was delivered in the final week of June 2026, for which financing was only arranged in FY27. Cash at 30 June 2026 was US$10.5 million, with total asset financing of US$23.5 million. Net debt was US$13.0 million at 30 June 2026, compared with US$3.9 million at 30 June 2025. The growth in net debt reflects the asset financing drawn to fund the compute expansion.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 10 CASH FLOW Net cash generated from operaEng acEviEes was US$20.9 million (up from US$5.6 million in FY25), reflecEng the increased revenue and profitability of the business in FY26. Net cash invested in property, plant and equipment was US$11.6 million (FY25: US$8.4 million), with investments made into the HPC cluster and data storage capacity. Net cash used in financing acEviEes was US$15.2 million, comprising lease repayments of US$11.5 million and lease interest of US$3.5 million.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 11 Risk Management DUG’s risk management processes support the Group in idenEfying, assessing, and miEgaEng risks that may impact strategic objecEves and operaEonal performance. The framework is overseen by the Audit and Risk Commi?ee and the Board, and is embedded in the decision-making processes across all levels of the business. It enables management to monitor key risks and implement appropriate controls and miEgaEon strategies. DUG operates in a dynamic and compeEEve global environment, and recognises the importance of proacEvely managing risk to maintain resilience, support sustainable growth, and safeguard shareholder value. The Company’s approach balances risk with opportunity, helping ensure innovaEve soluEons and strategic iniEaEves are delivered effecEvely. The Group maintains a structured risk register, which is regularly reviewed and updated to reflect emerging risks, including cybersecurity, geopoliEcal factors, climate-related risks, and supply chain challenges. The Company is confident that the disciplined risk management pracEces, underpinned by strong governance and a commi?ed workforce, posiEon DUG to navigate uncertainty and pursue growth. The risks below are those the Board considers significant to the Group. They are not listed in order of priority and the list is not exhausEve: Cyber Security and Data Privacy Cyber security is a top priority for DUG, reflecEng the importance of protecEng client data and enabling reliability of services. Cyber threats and data breaches are constant risks in today's digital landscape. Acknowledging the rising prevalence of cyber threats, DUG proacEvely invests in a suite of technical and organisaEonal controls, including penetraEon tesEng, phishing simulaEons, mulE-factor authenEcaEon and regular sodware patching. Ongoing staff training and awareness programs support cyber resilience and help embed a strong security culture across the organisaEon. Supply Chain Disruption Timely and economic supply of key products and services, such as computers, computer components, power and water, is integral to DUG’s ability to effecEvely service its customers. While most client workloads are serviced using exisEng infrastructure, occasional just-in-Eme procurement is required to meet increased demand. To miEgate the risk of supply chain disrupEon, DUG engages with mulEple vendors to avoid reliance on a single supplier and conEnuously tests hardware from key partners to streamline procurement decisions. The organisaEon maintains the experEse to operate across a variety of hardware types, generaEons, and vendors, enhancing flexibility and resilience in sourcing. Business Continuity and Disaster Recovery DUG recognises the potenEal operaEonal impacts of unforeseen events, including extreme weather and natural disasters, parEcularly on the Company’s high-performance compuEng infrastructure
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 12 and office locaEons. To miEgate these risks, DUG has implemented robust business conEnuity and disaster recovery plans to minimise downEme and enable seamless conEnuity of services. Talent Acquisition and Retention DUG’s success relies heavily on the skills, experEse, and organisaEonal knowledge of its employees. The technology sector is known for its compeEEve talent market, and recruiEng and retaining top-Eer talent can be challenging. To address this risk, DUG invests in employee development programs, implements succession planning, offers compeEEve compensaEon packages, and fosters a supporEve and inclusive work environment. Geopolitical Instability and Regulatory Compliance OperaEng across mulEple jurisdicEons, DUG is subject to a wide range of legal, regulatory, and tax requirements, including anE-bribery laws, sancEons, and withholding tax obligaEons. The Company proacEvely engages with internal and external legal and tax advisors to monitor and respond to regulatory developments and emerging risks. Recent global events have highlighted the growing importance of managing geopoliEcal risk, including the potenEal for trade restricEons, sancEons, or regulatory changes that could disrupt operaEons or market access. DUG monitors developments in key regions through trusted sources and legal counsel, and has established conEngency plans and contractual safeguards where appropriate. These measures enable compliance, business conEnuity, and the ability to adapt to an evolving global risk landscape. Execution of Projects and New Technologies As DUG brings acousEc and elasEc MP-FWI Imaging to market, the successful and consistent delivery of high-quality projects is criEcal to maintaining client trust and securing future opportuniEes. To miEgate the risk of project execuEon failures, the Company has implemented strict quality control processes and reporEng structures across projects. Each engagement is overseen by technical leads who are responsible for approving key project milestones. Post-project client feedback is acEvely sought to assess saEsfacEon and idenEfy areas for improvement. Ongoing internal training for GeoscienEsts and Project Leads supports delivery excellence and reinforces DUG’s commitment to quality. Artificial Intelligence Rapid advances in arEficial intelligence present both opportunity and risk: compeEtors and new entrants may use AI to add funcEonality and bring products to market more quickly. DUG miEgates this through deep technical research, which provides a barrier to rapid replicaEon, and through conEnued investment in AI and machine learning within its products and services. The Company applies AI tools internally to support sodware development and shorten project turnaround, and monitors compeEtor, academic and vendor developments closely. Internal use also risks exposing confidenEal client data or proprietary code to third-party models. This is managed through an acceptable use policy, enterprise-grade tooling contracted so that inputs are not used for model training, and controls over what data may be entered. Intellectual Property DUG holds patents and has patents pending to support key innovaEons, including the innovaEve immersion cooling system, and sodware soluEons. It is criEcal to the Company that its intellectual
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 13 property is protected. The Group addresses this through intellectual property provisions in employment contracts and security protocols designed to retain intellectual property within the business. Oil Prices and Macro-economic Factors Oil prices have a direct impact on a large porEon of DUG’s customers’ operaEons. Higher oil prices tend to lead to greater exploraEon and evaluaEon acEviEes, and thus greater demand for DUG’s services business. In addiEon to this, global economic fluctuaEons and geopoliEcal tensions can influence business condiEons and market stability. The Company’s risk management approach includes scenario planning to assess the potenEal impact of various economic and geopoliEcal developments on DUG’s business operaEons and devise appropriate response strategies. Environmental Sustainability and Energy Efficiency DUG recognises the importance of environmental sustainability and the need to manage the carbon intensity of its global operaEons. The Company conEnues to implement its proprietary single-phase immersion cooling technology across its data centres, reducing energy usage and associated emissions. DUG purchases renewable energy offsets for energy consumed at its largest data centre in Houston, materially reducing the total emissions of the group. The sodware development team works hard to improve the efficiency of compute intense algorithms, with the aim to minimise compute hours consumed per unit output for key pieces of code. DUG is excited to be able to contribute to the reducEon in the environmental impact of customers and embrace the opportuniEes to help organisaEons, Governments, and businesses to adopt a more environmentally conscious approach to HPC. Reputation ReputaEonal risk refers to the potenEal for adverse impacts on the organisaEon’s reputaEon due to various internal or external factors. DUG maintains an internal code of ethics seong expectaEons for employee behaviour and the handling of disputes, holds regular progress meeEngs with clients to idenEfy and address concerns early, and monitors media and communicaEon plasorms so that it can respond promptly. Contractual Liabilities Contractual liabiliEes could arise from unfavourable terms, unfair obligaEons and risk allocaEon. EffecEve management of these risks is criEcal to enabling compliance with contractual obligaEons, minimising exposure to potenEal claims and protecEng the Company’s business interests. DUG focuses on proacEve measures (e.g. new client due diligence), effecEve management and robust contract review mechanisms to minimise exposure to contractual liabiliEes. CERTIFICATIONS ISO 9001:2015 Quality Management System (QMS) cerEficaEon ISO 27001:2022 InformaEon Security Management System (ISMS) cerEficaEon
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 14 Directors’ Report The Directors hereby present their report together with the consolidated financial statements of the Group consisEng of DUG Technology Ltd (DUG, or the Company), and its subsidiaries for the year ended 30 June 2026 and the auditor’s report thereon. The use of the words Company and Group are interchangeable for the purposes of this report. DIRECTORS The Directors of the Company at any Eme during or since the year ended 30 June 2026 are set out below. Directors were in office for the enEre period unless otherwise stated. Francesco (Frank) Sciarrone BCom INDEPENDENT NON-EXECUTIVE CHAIRMAN (APPOINTED AS DIRECTOR JULY 2015, NON-EXECUTIVE CHAIRMAN FROM 1 SEPTEMBER 2022) Over the past 38 years Mr Sciarrone has held senior management posiEons in the banking, funds management and investment advisory industries. In addiEon to this he has held numerous board posiEons on both public, private, large scale superannuaEon funds and corporate enEEes including as Chair, member and Chair of Audit and Risk Commi?ees and member and Chair of Investment and Finance Commi?ees. OTHER CURRENT DIRECTORSHIPS o ExecuEve Chairman of Vantage Wealth Management Pty Ltd (since April 2008) Mr Sciarrone has not held any other ASX-listed directorships in the three years preceding the date of this report. SPECIAL RESPONSIBILITIES o Member of the Audit and Risk Commi?ee o Chair of the RemuneraEon and NominaEon Commi?ee Dr Matthew Lamont PhD MANAGING DIRECTOR Co-founder and Managing Director, Dr Lamont defines the Company’s strategic direcEon and remains inEmately involved in its research and development iniEaEves. His extensive experEse includes key technical roles at Woodside in Perth and BHP Billiton. Dr Lamont holds a PhD in geophysics from CurEn University of Technology. Dr Lamont has not held any other ASX-listed directorships in the three years preceding the date of this report.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 15 Ms Louise Bower HBCompt, CA INDEPENDENT NON-EXECUTIVE DIRECTOR Ms Bower is a chartered accountant with over 30 years’ experience. Ms Bower was the Company’s CFO between 2009 and 2021. Ms Bower was responsible for global commercial operaEons including financial planning, management of financial risks and governance. Prior to joining DUG, Ms Bower held financial roles in different industry sectors and jurisdicEons, including South Africa and the United Kingdom. OTHER CURRENT DIRECTORSHIPS o Non-ExecuEve Director and Audit Commi?ee Chair and Member of the RemuneraEon Commi?ee of Lycopodium Ltd (ASX:LYL) (since August 2022) FORMER DIRECTORSHIPS o Non-ExecuEve Director and Audit and Risk Commi?ee Chair and Member of the RemuneraEon Commi?ee of Babylon Pump & Power Ltd (ASX:BPP) (resigned December 2025) SPECIAL RESPONSIBILITIES o Member of the Audit and Risk Commi?ee o Member of the RemuneraEon and NominaEon Commi?ee Mr Mark Puzey FCA, FAICD, CGEIT INDEPENDENT NON-EXECUTIVE DIRECTOR Mr Puzey has been an independent non-execuEve director for over 10 years full Eme, and has been a Chartered Accountant for 40 years in finance, internal/ external audit, risk management, governance and digital strategy; focused on ASX listed companies. He is currently Chair of three Audit and Risk Commi?ees. Mark brings experEse in IT governance, cyber security, data governance, business transformaEon and fund raising due diligence; including having been Asia Pacific IT governance and strategy leader, and naEonal leader of IT product heads. OTHER CURRENT DIRECTORSHIPS o Deputy Chair & Audit and Risk Management Chair of Horizon Power (since December 2021) o Quality, Audit & Risk Commi?ee Chair, Council member, and Governance & NominaEons Commi?ee member of Edith Cowan University (since May 2025) Mr Puzey has not held any other ASX-listed directorships in the three years preceding the date of this report. SPECIAL RESPONSIBILITIES o Chair of the Audit and Risk Commi?ee o Member of the RemuneraEon and NominaEon Commi?ee
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 16 Dr David Monk PhD INDEPENDENT NON-EXECUTIVE DIRECTOR Dr Monk holds a PhD in Physics from Noongham University in the UK and served as director of geophysics and as a disEnguished advisor at Apache CorporaEon, unEl his reErement in October 2019. Dr Monk started his career on seismic crews in West Africa and has subsequently been involved in seismic processing and acquisiEon in most parts of the world including significant ongoing Eme in the Middle East. Throughout his career, he has retained an interest in developing innovaEve ways to acquire, process and uElise seismic data to improve final interpretaEon. Author of more than 250 technical papers and patents, he was selected to deliver the SEG’s DisEnguished Instructor Short Course (DISC) for 2020. He served as President of the Society of ExploraEon Geophysicists in 2012-2013. He currently serves as a technical advisor for several geophysical companies including ACTeQ (a seismic survey design sodware company where he was co-founder) and GTI (a seismic node manufacturer). Dr Monk has not held any other ASX-listed directorships in the three years preceding the date of this report. Interests in the shares of the Company and related bodies corporate As at the date of this report, the direct and indirect interests of the directors in the shares of DUG were: Number of Ordinary Shares Issued under Loan Funded Share Plan Total Ordinary Shares OpQons over Ordinary Shares MaRhew Lamont 21,153,397 237,570 21,390,967 537,982 Francesco Sciarrone 780,000 - 780,000 - Louise Bower 60,553 840,483 901,036 - Mark Puzey 132,300 - 132,300 - David Monk 383,541 - 383,541 - COMPANY SECRETARY Ms Jacqueline Barry CertGovPrac, GIA (Affiliated) Ms Barry has over 18 years’ experience in company secretarial, compliance and corporate governance roles. Before joining DUG, Ms Barry was joint Company Secretary of Magnum Mining and ExploraEon Ltd (ASX:MGU) and held assistant company secretarial posiEons for several resources companies listed on ASX and AIM.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 17 PRINCIPAL ACTIVITIES DUG is an ASX-listed technology company, headquartered in Australia, that specialises in seismic data analysis, analyEcal sodware development, and high-performance compuEng (HPC). DUG is built on a strong foundaEon of applied science and a history of converEng research into pracEcal, real-world soluEons. The Company is truly global, with offices in Abu Dhabi, Houston, Kuala Lumpur, London, Perth and Rio de Janeiro, supporEng a global and diverse industrial client-base. DUG delivers a comprehensive geoscience offering backed by over two decades of experience and a focus on R&D. DUG maximises the value of seismic data with customised services, MulE-Client data, sodware and HPCaaS soluEons enabled by innovaEve technology – including MP-FWI Imaging. The Company also has emerging businesses, with DUG Nomad, a high-density, mobile data centre in a shipping container and a royalty stream from BalEmore Aircoil Company who exclusively licence DUG’s single-phase immersion cooling IP . SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS In the opinion of the Directors, there were no significant changes in the state of affairs of the Group that occurred during the financial year under review. REVIEW OF OPERATIONS A review of and informaEon about the operaEons of the Group during FY26 is contained in pages 8 to 10, which form part of this Director’s Report. DIVIDENDS No dividends were paid or declared during the year ended 30 June 2026 and up to the date of signing this report (30 June 2025: Nil). LIKELY DEVELOPMENTS AND EXPECTED RESULTS The Group intends to build on the posiEon established in FY26 through conEnued investment in its proprietary technology and the infrastructure on which it is delivered, and through the further development of its global operaEons. Further informaEon about likely developments in the operaEons of the Group and the expected results of those operaEons in future financial years has not been included in this report because disclosure of that informaEon would be likely to result in unreasonable prejudice to the Group.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 18 EVENTS SUBSEQUENT TO REPORTING DATE Ader 30 June 2026, DUG received a US$9.3 million sodware and HPC infrastructure award from a NaEonal Oil Company. The award has a two-year term commencing in the first quarter of FY27, under which DUG will provide hosted HPC infrastructure and access to the DUG Insight processing and imaging toolkit. Refer to the Company's ASX announcement "US$9.3 million Sodware and HPC Infrastructure Award" dated 26 August 2026. The award is a non-adjusEng subsequent event. No other ma?er or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect, the Group's operaEons, the results of those operaEons, or the Group's state of affairs in future financial years. ENVIRONMENTAL REGULATION The Group is not subject to any significant environmental regulaEon under Australian Commonwealth or State law. Based on the results of enquiries made, the board is not aware of any significant breaches during the period covered by this report. INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS The Company has, in respect of any person who is or has been an officer or auditor of the Company or a related body corporate: o indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings; or o paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs or expenses to defend legal proceedings. Premiums paid are not disclosed because disclosure is prohibited by the insurance contract. PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied to the Court under secEon 237 of the CorporaEons Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. ROUNDING OF AMOUNTS The Company is of a kind referred to in ASIC CorporaEons (Rounding in Financial / Directors’ Reports) Instrument 2026/183 and in accordance with that instrument, amounts in the Consolidated Financial Statements and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 19 DIRECTORS’ MEETINGS The number of meeEngs of directors (including meeEngs of commi?ees of directors) held during the year and the number of meeEngs a?ended by each director were as follows: Board Audit and Risk Commi?ee RemuneraEon and NominaEon Commi?ee Eligible to A?end1 A?ended2 Eligible to A?end1 A?ended2 Eligible to A?end1 A?ended2 Francesco Sciarrone 6 5 3 3 2 2 Ma?hew Lamont 6 6 - - - - Louise Bower 6 6 3 3 2 2 Mark Puzey 6 6 3 3 2 2 David Monk 6 6 - - - - 1. No. of mee8ngs held while the director was a member of the board / commiQee. 2. No. of mee8ngs aQended. SHARE OPTIONS Unissued shares under options At the date of this report, unissued shares of the Group under opEon are: Expiry date Exercise price Number of opEons 11 Apr 2029 A$4.00 328,121 30 Jun 2037 A$0.00 857,579 30 Nov 2038 A$0.00 854,338 30 Nov 2039 A$0.00 908,561 30 Nov 2040 A$0.00 1,409,314 Balance the date of report 4,357,913 All unissued shares are ordinary shares of the Company. For details of the share-based payment arrangements operated by the Company, please refer to Note 29. Shares issued on exercise of options Since the end of the financial year, the Group issued ordinary shares of the Company as a result of the exercise of opEons as follows (there are no amounts unpaid on the shares issued): Number of ordinary shares Amount paid on each share 53,736 A$0.00 Shares forfeited on resignation from the Group Since the end of the financial year, 10,615 opEons were forfeited due to staff resignaEons.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 20 AUDITOR’S INDEPENDENCE DECLARATION The Lead auditor’s independence declaraEon is set out on page 30 and forms part of the Directors’ Report for the Financial Statements for the year ended 30 June 2026. NON-AUDIT SERVICES No non-audit services were provided by the enEty’s auditor Grant Thornton Audit Pty Ltd during the year ended 30 June 2026 and 30 June 2025. REMUNERATION REPORT The RemuneraEon Report is set out on pages 21 to 29 and forms part of this Directors’ Report. Dated at Perth on the 27th of August 2026. Signed in accordance with a resoluEon of the Directors. _______________________ Mark Puzey DIRECTOR
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 21 Remuneration Report (Audited) PERSONS ADDRESSED AND SCOPE OF THE REMUNERATION REPORT This remuneraEon report (the Report) forms part of the Directors’ Report for the year ended 30 June 2026 and has been audited in accordance with secEon 300A of the CorporaEons Act 2001. The Report has been prepared in accordance with the CorporaEons Act, applicable regulaEons and the Company’s policies regarding key management personnel (KMP) remuneraEon governance. The Company’s KMP are the non-execuEve directors (NEDs), execuEve directors, and senior execuEve employees who have authority and responsibility for planning, direcEng and controlling the acEviEes of the Company and Group. On that basis, the following roles/individuals are addressed in this report: Name PosiQon Term as KMP Independent Non-ExecuQve Directors: Francesco Sciarrone NED, Chairman, Chair of RNC, ARC member Full financial year Louise Bower NED, ARC member, RNC member Full financial year Mark Puzey NED, Chair of ARC, RNC member Full financial year David Monk NED Full financial year ExecuQve Directors and other Senior ExecuQves: MaRhew Lamont Managing Director Full financial year Daniel Lamont AcQng Chief Financial Officer Full financial year EXECUTIVE REMUNERATION POLICIES AND STRUCTURES DUG rewards its execuEves with a level and mix of remuneraEon appropriate to their posiEon, responsibility and performance, in a way that aligns with the business strategy and the creaEon of value for shareholders. The execuEve remuneraEon has three components; fixed remuneraEon including superannuaEon and variable remuneraEon consisEng of short-term bonus and long-term incenEve through equity. HOW REMUNERATION IS GOVERNED ExecuEve remuneraEon is reviewed annually with reference to the guiding principles set out in the RemuneraEon and NominaEon Commi?ee (RNC) charter together with market movements. The RNC is provided with remuneraEon recommendaEons as an input into decision making. The RNC consider the recommendaEons, along with other factors, in making its remuneraEon decisions.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 22 VOTING AT THE AGM The Company’s remuneraEon report for the financial year ended 30 June 2025 was approved at the 2025 Annual General MeeEng with 99.16% votes in favour . The company did not receive any specific feedback at the AGM or throughout the year in relaEon to its remuneraEon pracEces. PERFORMANCE INDICATORS 30 June 2026 US$‘000 30 June 2025 US$‘000 30 June 2024 US$‘000 30 June 2023 US$‘000 30 June 2022 US$‘000 Revenue 86,387 62,577 65,501 50,948 33,752 Total income 90,961 66,092 68,316 53,468 37,603 Earnings before interest, tax, depreciaEon and amorEsaEon (EBITDA1) 25,922 15,445 16,610 15,070 2,813 Net profit / (loss) ader tax 2,641 (4,408) 3,324 4,941 (9,332) Basic earnings / (loss) per share (cents) 1.35 (3.01) 2.34 4.24 (8.07) Dividends per share (cents) - - - - - Share price at start of year (A$) 1.36 2.76 1.17 0.47 1.34 Share price at end of year (A$) 2.40 1.36 2.76 1.17 0.47 1 These items are categorised as non-IFRS informa8on prepared in accordance with ASIC Regulatory Guidance 230 – Disclosing non-IFRS financial informa8on.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 23 EMPLOYMENT TERMS FOR EXECUTIVE KMPS The remuneraEon and other terms of employment for execuEve KMPs are covered in formal employment contracts of an ongoing nature. Details of remuneraEon and employment arrangements for KMPs at 30 June 2026 are as follows: Matthew Lamont - Managing Director Term DescripEon RemuneraEon and other benefits Under the terms of his employment contract, Dr Lamont is enEtled to receive annual fixed remuneraEon of A$490,800 gross (exclusive of superannuaEon). Dr Lamont is also enEtled to a vehicle up to a lease value of A$3,200 per month ader tax (converEble to salary at employee’s discreEon). Short-Term IncenEves are payable up to 50% of Total Fixed RemuneraEon and Long-Term IncenEves are payable up to 50% of Total Fixed RemuneraEon. TerminaEon and noEce periods Employment may be terminated by either party giving six months’ noEce. No addiEonal payments are made on terminaEon. Restraints For six months following terminaEon of employment, Dr Lamont cannot solicit or work for any client of DUG, nor solicit any employee of DUG. Daniel Lamont – Acting Chief Financial Officer Term DescripEon RemuneraEon and other benefits Under the terms of his employment contract, Mr Lamont is enEtled to receive annual fixed remuneraEon of A$230,000 gross (exclusive of superannuaEon). Mr Lamont receives an allowance of A$2,000 (exclusive of superannuaEon) in recogniEon of his addiEonal responsibiliEes in performing the role of AcEng Chief Financial Officer . This allowance is payable for the duraEon of the acEng arrangement and does not form part of Total Fixed RemuneraEon. Short-Term IncenEves are payable up to 30% of Total Fixed RemuneraEon and Long-Term IncenEves are payable up to 30% of Total Fixed RemuneraEon. TerminaEon and noEce periods Employment may be terminated by either party giving three months’ noEce. No addiEonal payments are made on terminaEon. Restraints For six months following terminaEon of employment, Mr Lamont cannot solicit or work for any client of DUG, nor solicit any employee of DUG.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 24 SHORT-TERM COMPENSATION The Company operates a Short-Term IncenEve Plan to: o Reward eligible parEcipants for their contribuEon in ensuring that DUG achieves its annual performance targets; o Enhance DUG’s opportunity to a?ract, moEvate and retain high calibre and high performing execuEves; and o Link part of execuEve remuneraEon directly with the achievement of DUG and individual key performance indicators (KPIs). The Board has absolute discreEon to determine the eligible parEcipants for the Short-Term IncenEve Plan. ParEcipants who resign or are terminated during a plan year are not eligible for any payments. All payments under the Short-Term IncenEve Plan will be paid in cash. The Board determined the award of payments under the Short-Term IncenEve Plan for the year ended 30 June 2026 based on the below performance hurdles: STI PERFORMANCE HURDLES Performance Hurdle WeighEng Financial FY26 EBITDA Margin [29%] 20% FY26 Revenue [US$76.5 million] 20% OperaEonal Pass internal and external ISO 27001 and 9001 audits with minimal non-conformiEes 10% Individual Performance Leadership & Teamwork 25% Project Delivery 25% Total 100% Where performance falls between two hurdles, the payout is pro-rated on a straight-line basis. PAYOUT 50% OF STI PAYOUT 100% of STI PAYOUT 150% of STI FY26 Base FY26 Expected FY26 Stretch US$'000 US$'000 US$'000 EBITDA margin 23% 29% 30% Revenue 71,990 76,500 87,640
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 25 LONG-TERM COMPENSATION The Board also operates a Long-Term IncenEve Plan to reward DUG’s employees by issuing equity incenEves. The Long-Term IncenEve Plan is designed to align the interests of eligible parEcipants with shareholders through the sharing of personal interest in the future growth and development of DUG and to provide a means of a?racEng and retaining skilled and experienced eligible parEcipants. ZERO EXERCISE PRICED OPTIONS (“ZEPOS”) The following ZEPOs were issued during the financial year ended 30 June 2026: Name Number Grant Date VesQng Date and Exercise Date Expiry Date Exercise Price A$ Fair value per ZEPO at Grant Date A$ Ma?hew Lamont 115,749 30 Nov 2025 30 Nov 2028 30 Nov 2040 0.00 $2.001 Daniel Lamont 34,352 30 Nov 2025 30 Nov 2028 30 Nov 2040 0.00 $2.001 These opEons require the holders to remain conEnuously employed or engaged with the Group at all Emes to 30 November 2028 and are subject to the following hurdles: Total Shareholder Return (TSR) Performance Target ProporEon of Awards that saEsfy the performance condiEons 2% outperformance and below Nil > 2% and < 6% Pro-rata 6% outperformance 100% vesEng > 6% and above Pro-rata (capped at 200%) Return on Capital Employed (ROCE) Performance Target ProporEon of Awards that saEsfy the performance condiEons Less than 15% Nil From 15% to 24% Pro-rata 25% 100% vesEng > 25% and above Pro-rata and capped at 200%
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 26 The following ZEPOs were issued during the financial year ended 30 June 2025: Name Number Grant Date VesQng Date and Exercise Date Expiry Date Exercise Price A$ Fair value per ZEPO at Grant Date A$ Ma?hew Lamont 105,711 31 Dec 2024 30 Nov 2027 30 Nov 2039 0.00 $1.570 Daniel Lamont 31,237 31 Dec 2024 30 Nov 2027 30 Nov 2039 0.00 $1.570 These opEons require the holders to remain conEnuously employed or engaged with the Group at all Emes to 30 November 2027 and are subject to the following hurdles: Total Shareholder Return (TSR) Performance Target ProporEon of Awards that saEsfy the performance condiEons 2% outperformance and below Nil > 2% and < 6% Pro-rata 6% outperformance 100% vesEng > 6% and above Pro-rata (capped at 200%) Return on Capital Employed (ROCE) Performance Target ProporEon of Awards that saEsfy the performance condiEons Less than 15% Nil From 15% to 24% Pro-rata 25% 100% vesEng > 25% and above Pro-rata (e.g. 30% is 20% above 25%, therefore, award will be 120%) NED POLICY COMPENSATION DUG’s NED fee policy is designed to a?ract and retain high-calibre directors who can discharge the roles and responsibiliEes required in terms of good governance, strong oversight, independence and objecEvity. The RNC reviews NED remuneraEon annually against comparable companies. The Board also considers advice from external advisors when undertaking the review process. NED fees consist of a base fee and commi?ee fees. The commi?ee fee recognises the addiEonal Eme commitment required by NEDs who serve on Board commi?ees.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 27 The tables below summarise Board and Commi?ee fees payable to NEDs (superannuaEon is payable in addiEon to the Board and Commi?ee fees) for the year ended 30 June 2026: Base Fees A$ Chairperson $120,000 (including Commi?ee Fees) Non-ExecuEve Director $75,000 Commi?ees Fees Chairperson (A$) Member (A$) Audit and Risk $20,000 $5,000 (if not serving on any other Board Commi?ee) RemuneraEon and NominaEon - (Chair of the RNC is also Chair of the Board) $5,000 (if not serving on any other Board Commi?ee) NED fees are determined within an aggregate NED fee pool limit which is periodically approved by shareholders. The maximum aggregate amount that may be paid to NEDs for their services is A$600,000 per annum. The Board will not seek an increase to the aggregate NED fee pool limit at the 2026 AGM. STATUTORY AND SHARE-BASED REPORTING Reporting currency In this report, remuneraEon has been presented in US dollars, unless otherwise stated. This is consistent with the funcEonal and presentaEon currency of the Company. CompensaEon for all KMPs is paid in Australian dollars and, for reporEng purposes, converted to US dollars at the applicable exchange rate on date of payment. Movements in that rate affect the reported US dollar amounts between the years. Executive KMP Remuneration for the years ended 30 June 2026 and 30 June 2025 Year Cash Salary Super-annua:on Others1 Cash Bonus Long Service Leave Op:ons2 Total Remunera:on Total Remunera:on Performance Related US$ US$ US$ US$ US$ US$ US$ A$ % Ma#hew Lamont 2026 333,793 20,403 49,275 106,510 7,149 150,600 667,730 981,813 39% 2025 317,797 19,381 27,711 229,472 6,755 109,966 711,082 1,098,183 48% Daniel Lamont3 2026 156,423 19,995 22,561 45,015 3,181 27,305 274,480 403,588 26% 2025 125,824 17,380 15,549 9,713 2,421 13,487 184,374 284,744 13% Ajesh Raithatha4 2026 - - - - - - - - - 2025 43,167 4,845 145,849 24,157 - 30,522 248,540 383,841 22% Total 2026 490,216 40,398 71,836 151,525 10,330 177,905 942,210 1,385,401 35% 2025 486,788 41,606 189,109 263,342 9,176 153,975 1,143,996 1,766,768 36% 1. Includes motor vehicle benefits, changes in accrued annual leave, allowances, and termina8on payments. 2. Op8ons relate to the accoun8ng expense for op8ons granted. Refer to 'Op8ons held by Execu8ve KMP' below for the movement during the year . 3. Mr Daniel Lamont commenced as a KMP on appointment as Ac8ng Chief Financial Officer on 29 August 2024. 4. Mr Ajesh Raithatha ceased to be a KMP on 29 August 2024.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 28 NED Remuneration for the years ended 30 June 2026 and 30 June 2025 NED’S STATUTORY REMUNERATION Year Board and Commi?ee Fees US$ SuperannuaEon US$ Total RemuneraEon US$ Total RemuneraEon A$ Francesco Sciarrone 2026 81,612 9,793 91,405 134,399 2025 77,701 8,936 86,637 133,801 Louise Bower 2026 54,408 6,529 60,937 89,600 2025 51,801 5,957 57,758 89,200 Mark Puzey 2026 64,610 7,753 72,363 106,401 2025 61,513 7,074 68,587 105,925 David Monk 2026 51,008 - 51,008 75,000 20251 32,482 - 32,482 50,165 Total 2026 251,638 24,075 275,713 405,400 2025 223,497 21,967 245,464 379,091 1. Dr David Monk was appointed on 18 October 2024. OTHER TRANSACTIONS WITH DIRECTORS AND THEIR RELATED PARTIES During the financial year, a consultaEon fee of A$13,225 (including GST and out-of-pocket expenses) was paid to Comsen SoluEons Pty Ltd, a company held by Ms. Louise Bower, for her consulEng services in reviewing and advising on a subsidiary’s corporate and tax structure. Loan-Funded Shares The table below discloses the number of shares granted, vested or lapsed during the year under the Company’s loan-funded share plans (LFSP). Year Opening Balance Lapsed & not Vested Loan repayments Closing Balance Vested & Exercisable Shares sold to repay loans Shares converted to ordinary shares MaRhew Lamont1 2026 413,572 - (176,002) - 237,570 209,620 2025 413,572 - - - 413,572 385,622 Louise Bower 2026 840,483 - - - 840,483 821,691 2025 1,034,329 - (193,846) - 840,483 821,691 Total 2026 1,254,055 - (176,002) - 1,078,053 1,031,311 2025 1,447,901 - (193,846) - 1,254,055 1,207,313 1 Shares were sold to repay a limited recourse loan under the Company's Loan Funded Share Plan that had reached the end of its term.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 29 Zero Exercise Priced Options The table below shows a reconciliaEon of ZEPOs held by each KMP from the beginning to the end of FY26. Name Balance at start of the year Granted as compensaEon Exercised Lapsed Balance at the end of the year unvested Ma?hew Lamont 744,004 115,749 - (321,771) 537,982 Daniel Lamont 81,869 34,352 - (14,190) 102,031 Total 825,873 150,101 - (335,961) 640,013 Shareholdings of KMPs Balance 1 July 2025 Other AcquisiEons Divested Balance 30 June 2026 NEDs: Francesco Sciarrone 780,000 - - 780,000 Louise Bower 901,036 - - 901,036 Mark Puzey 132,300 - - 132,300 David Monk 365,541 19,918 (1,918) 383,541 ExecuEves: Ma?hew Lamont 21,566,969 - (176,002) 21,390,967 Daniel Lamont 14,815 - - 14,815 Total 23,760,661 19,918 (177,920) 23,602,659 End of remuneraEon report
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AUDITOR’S INDEPENDENCE DECLARATION DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 30 Auditor’s Independence Declaration
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 31
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 32 Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2026 Note 30 June 2026 US$‘000 30 June 2025 US$‘000 Income Revenue from contracts with customers 2 86,387 62,577 Other income 3 4,574 3,515 Total income 90,961 66,092 Expenses DepreciaEon and amorEsaEon (13,710) (12,875) Employee benefits 4 (39,328) (32,078) Other expenses 5 (25,711) (18,569) OperaEng profit 12,212 2,570 Finance income 58 213 Finance expense (3,692) (4,224) Net finance expense 7 (3,634) (4,011) Profit / (Loss) before tax 8,578 (1,441) Tax expense 8 (5,937) (2,967) Profit / (Loss) for the year 2,641 (4,408) A?ributable to: Equity holders of the parent 1,820 (3,892) Non-controlling interest 821 (516) Total comprehensive income / (loss) 2,641 (4,408) Basic earnings / (loss) per share (cents) 9 1.35 (3.01) Diluted earnings / (loss) per share (cents) 9 1.31 (3.01) The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunc8on with the accompanying Notes to the Consolidated Financial Statements.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 33 Consolidated Statement of Financial Position As at 30 June 2026 Note 30 June 2026 US$‘000 30 June 2025 US$‘000 ASSETS Current assets Cash and cash equivalents 10 10,501 16,410 Trade and other receivables 11 12,462 11,667 Prepayments 1,386 1,241 Contract assets 12 9,257 4,319 Current tax assets - 505 Other current assets 16 962 1,945 Total current assets 34,568 36,087 Non-current assets Property, plant and equipment 13 43,064 14,274 Right-of-use assets 14 41,273 37,450 Intangible assets 15 700 534 Deferred tax asset 8 1,339 1,339 Other non-current assets 16 3,247 1,766 Total non-current assets 89,623 55,363 Total assets 124,191 91,450 LIABILITIES Current liabiliQes Trade and other payables 17 18,699 4,861 Loans and borrowings 18 - 40 Contract liabiliQes 12 7,971 3,090 Current tax liabiliQes 761 - Lease liabiliQes 19 12,518 11,163 Provisions 20 2,825 2,338 Total current liabiliQes 42,774 21,492 Non-current liabiliQes Lease liabiliQes 19 30,184 22,606 Provisions 20 113 76 Total non-current liabiliQes 30,297 22,682 Total liabiliQes 73,071 44,174 NET ASSETS 51,120 47,276 EQUITY Share capital 21 76,625 76,240 Reserves 21 (92) (526) Accumulated losses (26,581) (28,393) Equity aRributable to equity holders of the parent 49,952 47,321 Non-controlling interests 1,168 (45) TOTAL EQUITY 51,120 47,276 The Consolidated Statement of Financial Posi8on is to be read in conjunc8on with the Notes to the accompanying Consolidated Financial Statements.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 34 Consolidated Statement of Changes in Equity For the year ended 30 June 2026 Note Share Capital US$‘000 TranslaQon Reserve US$‘000 Share-based Payment Reserve US$‘000 Accumulated Losses US$‘000 Total US$‘000 Non-controlling Interests US$‘000 Total Equity US$‘000 Balance at 30 June 2025 76,240 (2,177) 1,651 (28,393) 47,321 (45) 47,276 Profit for the year ended 30 June 2026 - - - 1,820 1,820 821 2,641 Total comprehensive income for the year - - - 1,820 1,820 821 2,641 Share-based payments 29 - - 977 - 977 - 977 Employee loan funded shares sold 21 226 - - - 226 - 226 Issued shares from opQons exercised 21 159 - (159) - - - - Transfer of share-based payments on expired opQons 21 - - (384) 384 - - - AcquisiQon of non-controlling interest - - - (392) (392) 392 - Total transacQons with equity holders 385 - 434 (8) 811 392 1,203 Balance at 30 June 2026 76,625 (2,177) 2,085 (26,581) 49,952 1,168 51,120 Balance at 30 June 2024 55,362 (2,177) 955 (24,590) 29,550 471 30,021 Loss for the year ended 30 June 2025 - - - (3,892) (3,892) (516) (4,408) Total comprehensive loss for the year - - - (3,892) (3,892) (516) (4,408) Share based payments 21 - - 785 - 785 - 785 Employee loan funded shares sold 21 731 - - - 731 - 731 Issue of share capital 21 20,849 - - - 20,849 - 20,849 Cost of issuing shares, net of tax 21 (702) - - - (702) - (702) Transfer of share-based payments on expired opQons 21 - - (89) 89 - - - Total transacQons with equity holders 20,878 - 696 89 21,663 - 21,663 Balance at 30 June 2025 76,240 (2,177) 1,651 (28,393) 47,321 (45) 47,276 The Consolidated Statement of Changes in Equity is to be read in conjunc8on with the Notes to the accompanying Consolidated Financial Statements.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 35 Consolidated Statement of Cashflows For the year ended 30 June 2026 Note 30 June 2026 US$‘000 30 June 2025 US$‘000 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 83,518 59,486 Cash paid to suppliers (26,382) (20,421) Cash paid to employees (36,254) (30,922) Income tax paid, net (35) (2,748) Interest received 55 185 Net cash generated from operaQng acQviQes 31 20,902 5,580 CASH FLOWS FROM INVESTING ACTIVITIES AcquisiQon of property, plant and equipment (11,508) (8,298) AcquisiQon of intangible assets (109) (105) Net cash used in invesQng acQviQes (11,617) (8,403) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of shares 21 - 20,849 Proceeds from borrowings and leases - 6,688 Proceeds from repayment of loan funded shares 430 416 TransacQon costs relaQng to issue of shares - (1,113) TransacQon costs relaQng to borrowings (53) (17) Repayment of borrowings (526) (1,654) Repayment of lease liabiliQes (11,539) (11,213) Interest paid on lease liabiliQes (3,495) (4,143) Interest paid on borrowings - (14) Net cash (used in)/from financing acQviQes (15,183) 9,799 Net (decrease) / increase in cash and cash equivalents (5,898) 6,976 Cash and cash equivalents at the beginning of the year 16,410 9,385 Effect of changes in foreign currency (11) 49 Cash and cash equivalents at the end of the year 10 10,501 16,410 The Consolidated Statement of Cashflows is to be read in conjunc8on with the Notes to the accompanying Consolidated Financial Statements.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 36 Notes to the Consolidated Financial Statements For the year ended 30 June 2026 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES a) ReporEng EnEty The consolidated financial statements of DUG Technology Ltd for the financial year ended 30 June 2026 comprise of DUG Technology Ltd (the Company) and its subsidiaries (together referred to as the Group) and were authorised for issue in accordance with a resoluEon of the directors on the 27th of August 2026. The Group is a for-profit company limited by shares, incorporated and domiciled in Australia, whose shares are traded on ASX. The Group is principally engaged in the provision of seismic data analysis, analyEcal sodware development, and high-performance compuEng as a service (HPCaaS). AddiEonal informaEon on the Group’s principal acEviEes is provided in Note 30. The Financial Report includes consolidated financial statement of the Group. Notes accompanying the Consolidated Financial Statements and the Directors’ declaraEon form part of the Financial Report. b) Basis of PreparaEon The Consolidated Financial Statements are a general-purpose Financial Report, have been prepared in accordance with the CorporaEons Act 2001, Australian AccounEng Standards and other authoritaEve pronouncements of the Australian AccounEng Standards Board (AASB). The Consolidated Financial Statements comply with InternaEonal Financial ReporEng Standards (IFRS) as issued by the InternaEonal AccounEng Standards Board (IASB). Where a material accounEng policy is specific to one note, the policy is described in the note to which it relates. Only material accounEng policies are included in the financial statements. c) Going Concern The consolidated financial statements have been prepared on a going concern basis which assumes the conEnuity of normal business acEvity and the realisaEon of assets and the se?lement of liabiliEes in the ordinary course of business. d) FuncEonal and PresentaEon Currency All enEEes within the Group have a United States dollars (US$) funcEonal currency. The consolidated financial statements are presented in US$, which is the parent enEty’s and subsidiaries’ funcEonal and presentaEon currency.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 37 e) Foreign Currency TransacEons in foreign currencies are translated to the respecEve funcEonal currencies of Group enEEes at exchange rates at the dates of the transacEons. Monetary assets and liabiliEes denominated in foreign currencies at the reporEng date are translated to the funcEonal currency at the exchange rate at the reporEng date. Non-monetary assets and liabiliEes that are measured at fair value in a foreign currency are translated to the funcEonal currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognised in profit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are not translated. Foreign currency differences are recognised in other comprehensive income and accumulated in the translaEon reserve. f) Basis of Measurement The consolidated financial statements have been prepared on an accrual basis and are based on historical costs unless otherwise stated in the notes. g) Rounding The Company is of a kind referred to in ASIC CorporaEons (Rounding in Financial / Directors’ Reports) Instrument 2026/183 and in accordance with that instrument, amounts in the Consolidated Financial Statements and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated. h) ComparaEve Figures When required by AccounEng Standards, comparaEve figures have been adjusted to conform to changes in presentaEon for the current financial year . Where necessary, comparaEve informaEon has been re-presented to be consistent with the current period disclosure. Where the Group retrospecEvely applies an accounEng policy, makes a retrospecEve restatement of items in the financial statements or reclassifies items in its financial statements, a third statement of financial posiEon as at the beginning of the preceding period in addiEon to the minimum comparaEve financial statement is presented. i) New, Revised or Amending AccounEng Standards and InterpretaEons not yet Adopted New and amended accounting standards and interpretations adopted by the Group The accounEng policies adopted are consistent with those followed in the preparaEon of the Group’s annual consolidated financial statements for the year ended 30 June 2025, unless otherwise stated. The Group has adopted all new or amended AccounEng Standards and InterpretaEons issued by the AccounEng Standards Board that are mandatory for the current accounEng period. The Group has not elected to early adopt any new standards or amendments during the current financial year .
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 38 New standards and interpretations not yet adopted The new and amended standards and interpretaEons that are issued, but not yet effecEve, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpretaEons, if applicable, when they become effecEve. AASB 18 PresentaEon and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18, which replaces IAS 1 PresentaEon of Financial Statements. AASB 18 introduces new requirements for presentaEon within the statement of profit or loss, including specified totals and subtotals. Furthermore, enEEes are required to classify all income and expenses within the statement of profit or loss into one of five categories: operaEng, invesEng, financing, income taxes, and disconEnued operaEons, whereof the first three are new. It also requires disclosure of newly defined management-defined performance measures, subtotals of income and expenses, and includes new requirements for aggregaEon and disaggregaEon of financial informaEon based on the idenEfied ‘roles’ of the primary financial statements (PFS) and the notes. In addiEon, narrow-scope amendments have been made to AASB 107 Statement of Cash Flows, which include changing the starEng point for determining cash flows from operaEons under the indirect method, from ‘profit or loss’ to ‘operaEng profit or loss’ and removing the opEonality around classificaEon of cash flows from dividends and interest. In addiEon, there are consequenEal amendments to several other standards. AASB 18, and the amendments to the other standards, is effecEve for reporEng periods beginning on or ader 1 January 2027, but earlier applicaEon is permi?ed and must be disclosed. AASB 18 will apply retrospecEvely. The Group is currently working to idenEfy all impacts the amendments will have on the primary financial statements and notes to the financial statements. j) Consolidated EnEty AccounEng Policy Subsidiaries are enEEes controlled by the Company. The Company controls an enEty when it is exposed to, or has rights to, variable returns from its involvement with the enEty and has the ability to affect those returns through its power over the enEty. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences unEl the date on which control ceases. k) TransacEons Eliminated on ConsolidaEon Intra-group balances and transacEons, and any unrealised income and expenses arising from intra-group transacEons, are eliminated. l) Current versus Non-Current ClassificaEon The Group presents assets and liabiliEes in the statement of financial posiEon based on a current or non-current classificaEon. Asset and liabiliEes that do not meet the following definiEons of current are classed as non-current.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 39 An asset is classified as current when it is: o expected to be realised, or intended to be sold or consumed in the Group’s normal operaEng cycle; o expected to be realised within 12 months ader the balance date through use or sale; or o cash or a cash equivalent (unless restricted for at least 12 months ader the reporEng period). A liability is current when: o it is expected to be se?led in the Group’s normal operaEng cycle; o it is due to be se?led within 12 months ader the reporEng date; or o there is no uncondiEonal right to defer the se?lement of the liability for at least 12 months ader the reporEng period. m) Goods and Services Tax (“GST”) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxaEon authority. In this case it is recognised as part of the cost of acquisiEon of the asset or as a part of the expense incurred. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxaEon authority is included with other receivables or payables in the balance sheet, as applicable. n) CriEcal AccounEng Judgements, EsEmates and AssumpEons The preparaEon of financial statements requires management to make judgements, esEmates and assumpEons that affect the applicaEon of accounEng policies and the reported amounts of assets, liabiliEes, income and expenses. Actual results may differ from these esEmates. EsEmates and underlying assumpEons are reviewed on an ongoing basis and are based on historical experience and various other factors that are believed to be reasonable under the current circumstances. Revisions to accounEng esEmates are recognised in the period in which the esEmate is revised and in any future periods affected. InformaEon about significant areas of esEmaEon uncertainty and criEcal judgements in applying accounEng policies that have the most significant effect on the amounts recognised in the financial informaEon are described in the following notes: o Note 2 – Revenue o Note 3 – Other income (R&D tax concession) o Note 8 – Income taxes o Note 11 – Trade and other receivables o Note 13 – Property, plant and equipment o Note 19 – Lease liabiliEes o Note 20 – Provisions o Note 22 – Impairment of non-current assets
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 40 2. REVENUE FROM CONTRACTS WITH CUSTOMERS 30 June 2026 US$‘000 30 June 2025 US$‘000 Services 63,779 51,866 Sodware 11,120 8,332 HPCaaS 11,488 2,379 Revenue from contracts with customers 86,387 62,577 Over Eme1 80,392 56,549 At a point in Eme2 5,995 6,028 Revenue from contracts with customers 86,387 62,577 1 Rela8ng to revenue from Services, HPCaaS, and Cloud Sohware. 2 Rela8ng to revenue from sales of Insight sohware licenses. Geographic InformaPon 30 June 2026 US$‘000 30 June 2025 US$‘000 Australia 4,982 4,922 United Kingdom 19,230 19,567 United States of America 28,286 27,829 Malaysia 25,348 10,203 United Arab Emirates 2,611 13 Brazil 5,930 43 Revenue from contracts with customers 86,387 62,577 Revenue Performance ObligaPons (Contract LiabiliPes) 30 June 2026 US$‘000 30 June 2025 US$‘000 Revenue expected to be recognised in next 12 months following the end of financial year: Services 5,800 1,137 Sodware 997 740 HPCaaS1 322 360 Revenue from contracts with customers 7,119 2,237 1 Excludes $0.85m funding received from the Western Australian State Government received during the financial year ended 30 June 2024.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 41 ACCOUNTING POLICY Revenue from contracts with customers is recognised when the Group saEsfies a performance obligaEon by transferring a promised good or service to the customer, which is when the customer gains control of the good or service. A performance obligaEon may be saEsfied at a point in Eme or over Eme. The amount of revenue recognised is the amount allocated to the saEsfied performance obligaEon. If a contract has mulEple performance obligaEons, the transacEon price is allocated to each performance obligaEon idenEfied in the contract on a relaEve stand-alone selling price basis. The principles applied for each of the main types of contracts with customers are described in more detail below. a) Services Revenue The Group provides services to customers by way of contracts in accordance with customer specificaEons, which are normally considered one performance obligaEon. This performance obligaEon is considered to be saEsfied over Eme because the Group performs the service at the customer specificaEon, the resultant data is owned by the customer and the Group has no alternaEve right to otherwise use or benefit from the resultant data. The Group recognises contract revenue over Eme as the services are performed by reference to the Group’s progress towards compleEon of the contract and its enEtlement to the compensaEon under the contract. The measure of progress is determined based on the proporEon of services delivered to or consumed by the customer to date compared to the esEmated total services to be delivered under the contract (output method). In addiEon, certain revenue contracts entered by the Group require judgement in the idenEficaEon and separaEon of performance obligaEons and the allocaEon of revenue to each of the performance obligaEons. Whilst there is a degree of esEmaEon and judgement applied by management in determining revenue recognised, such esEmates and judgements applied are not overly criEcal to the Eming of revenue recognised in the financial statements. Depending on the nature of the contract, progress is measured based on working duraEon and compute processing. When it is reasonably certain that total contract costs will exceed total contract revenue, the contract is considered onerous and the present obligaEon under the contract is recognised immediately as a provision. Contract modificaEons that do not add disEnct goods or services are accounted for as a conEnuaEon of the original contract, and the change is recognised as a cumulaEve adjustment to revenue at the date of modificaEon. Variable consideraEon is typically constrained and only recognised as revenue to the extent that it is highly probable that a significant reversal in the amount of revenue recognised will not occur when the uncertainty associated with the variable consideraEon is subsequently resolved. This typically occurs when contracts contain requirements for customers to pay addiEonal fees upon specific future events such as discovery, change of ownership or third-party data access ader the data services have already been delivered to the customer. The variable consideraEon is only recognised when these future events have taken place.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 42 b) Sodware Revenue Revenue from the sale of sodware is predominantly in the form of annual licence fees. Where the Group sells sodware licences for users to install on their own infrastructure, revenue is recorded at a point in Eme, being the commencement of the licence period. Revenue for sodware licences provided to customers alongside HPCaaS services is recognised on a daily basis over the term of the agreement, as the Group considers that such agreements provide customers with a right to access the Group’s sodware products and as such the performance obligaEon is fulfilled over the contract term. c) HPCaaS Revenue Through the DUG HPC Cloud plasorm, clients connect to and access DUG’s HPC infrastructure and storage under a commi?ed or on-demand business model. For on-demand contracts, revenue is recognised when the customers use services based on quanEty of services rendered and the contracted transacEon prices (agreed rate per node hour for HPC services or an agreed rate per terabyte for storage services). When variable consideraEon is included in HPCaaS contracts, this is assessed at contract incepEon and factored in while determining the transacEon price. This esEmate is reassessed and updated periodically. d) Associated Contract Balances Under AASB 15, the Eming of revenue recogniEon, customer invoicing and cash collecEons results in the recogniEon of trade receivables, contract assets and contract liabiliEes on the Group’s Consolidated Statement of Financial PosiEon. The contract liabiliEes mostly represent non-refundable payments received or receivable in advance from customers for sodware licences which have not yet commenced and will be recognised in future periods and not a future cash ouslow. In the event most of the consideraEon under the contract is received more than 12 months in advance of saEsfying the related performance obligaEon, a financing factor is accrued and included in the value of the revenue recognised upon saEsfying the performance obligaEon. The Group applies the pracEcal expedient for short-term advances received from customers in that the promised amount of consideraEon is not adjusted for the effects of a significant financing component if the period between saEsfying the performance obligaEon and the payment is one year or less.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 43 3. OTHER INCOME 30 June 2026 US$‘000 30 June 2025 US$‘000 Government grant - non-cash R&D tax concession 4,315 3,515 Gain on lease remeasurement 259 - Other income 4,574 3,515 ACCOUNTING POLICY Government Grants Government grants that are non-cash research and development (R&D) tax incenEves are recognised at their fair value where there is a reasonable assurance that the grant will be approved and the Group will comply with all a?ached condiEons. Non-cash government grants relaEng to R&D costs are recognised in profit and loss, rather than being recorded as a tax offset in income tax expense, over the period necessary to match them with the costs that they are intended to compensate. Government grants that relate to the purchase of property, plant and equipment and any capitalised development costs are deducted from the cost of the asset and are credited to profit and loss over the expected lives of the related assets. The R&D acEviEes with the Australian Government provide a non-cash tax rebate against taxable income. The rules for claiming this grant are complex and necessitate certain judgements to be made upon the costs incurred by the Group on R&D acEviEes. The Group periodically reviews the judgements made in respect to R&D costs and engages consultants to provide the Group with advice on calculaEons brought to account and lodged annually with the Australian Tax Office. 4. EMPLOYEE BENEFITS 30 June 2026 US$‘000 30 June 2025 US$’000 Salaries, incenEves and fees 30,328 24,292 SuperannuaEon 2,381 1,899 Payroll tax 1,842 1,669 Other benefits 3,862 3,605 Share-based payments 915 613 Employee benefits 39,328 32,078
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 44 ACCOUNTING POLICY Short-term Employee Benefits Provision is made for the Group’s obligaEon for short-term employee benefits. Short-term employee benefits are benefits (other than terminaEon benefits) that are expected to be se?led wholly before twelve months ader the end of the reporEng period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligaEon is se?led. The Group’s obligaEons for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other payables in the Consolidated Statement of Financial PosiEon. a) Other Long-term Employee Benefits Provision is made for employees’ statutory long service leave and annual leave enEtlements not expected to be se?led wholly within twelve months ader the end of the reporEng period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anEcipated future wage and salary levels, duraEons of service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporEng period on corporate bonds that have maturity dates that approximate the terms of the obligaEons. Upon the remeasurement of obligaEons for other long-term employee benefits, the net change in the obligaEon is recognised in profit or loss as a part of employee benefits expense. The Group’s obligaEons for long-term statutory employee benefits are presented as non-current provisions in its Consolidated Statement of Financial PosiEon, except where the Group does not have an uncondiEonal right to defer se?lement for at least twelve months ader the end of the reporEng period, in which case the obligaEons are presented as current provisions. b) Defined ContribuEon Plans/Pension ObligaEons Defined contribuEon plans are post-employment benefit plans under which the Company pays fixed contribuEons into separate enEEes or funds and will have no legal or construcEve obligaEon to pay further contribuEons if any of the funds do not hold sufficient assets to pay all employee benefits relaEng to employee services in the current and preceding financial periods. Such contribuEons are recognised as an expense in the period in which the related service is performed. c) Share-Based Payments The Company issue long-term incenEves to certain employees. The grant date fair value of the incenEves issued is recognised as an employee share-based payment in the profit and loss with a corresponding increase in equity, over the vesEng period. The fair value of the incenEves granted is measured using a Monte Carlo or Black Scholes pricing model, taking into account the terms and condiEons upon which the incenEves were granted. Under the Company’s Loan Funded Share Plan, employees have been granted limited recourse loans to acquire the shares. The loans have not been
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 45 recognised as the Company only has recourse to the value of the shares. Refer to Note 29 for details of long-term incenEves. 5. OTHER EXPENSES 30 June 2026 US$‘000 30 June 2025 US$‘000 General and administraEve expenses 9,061 7,233 Sales and markeEng expenses 6,459 3,373 IT, faciliEes and related costs 10,482 7,260 Foreign exchange (gain) / loss – net (291) 703 Other expenses 25,711 18,569 6. AUDITOR’S REMUNERATION 30 June 2026 US$‘000 30 June 2025 US$‘000 Amounts received or due and receivable by auditors of the Group (Grant Thornton Audit Pty Ltd) for audit services: Fees for audiEng the statutory financial report of the parent covering the Group and audiEng the statutory financial reports of controlled enEEes 274 238 Total remuneraEon paid to auditors 274 238 7. FINANCE EXPENSE 30 June 2026 US$‘000 30 June 2025 US$‘000 Interest expense – asset financing leases 2,496 3,131 Interest expense – facility leases 1,000 1,012 Interest expense – borrowings 11 12 Others 185 69 Interest income (58) (213) Net finance expense 3,634 4,011
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 46 8. INCOME TAX 30 June 2026 US$‘000 30 June 2025 US$‘000 a) Amounts recognised in consolidated profit or loss and other comprehensive income The components of tax expense comprise: Current tax expense 5,937 (154) Deferred tax expense - 3,121 Tax expense 5,937 2,967 b) Numerical reconciliaEon of tax expense Profit before tax 8,578 (1,441) Tax using the Company’s domesEc tax rate of 30% 2,573 (432) Add/(Less) the tax effect of: Effect of tax rates in foreign jurisdicEons 502 (3,990) Tax exempt income (1,448) (884) Research and development, net 1,476 1,325 Other non-deducEble expenses 1,397 2,626 Non-assessable income - (24,151) Other differences 1,200 1,104 Prior year tax adjustment (73) (163) Unabsorbed tax losses uElised (7,181) (614) Net deferred tax assets not recognised 7,491 28,146 Tax expense 5,937 2,967 Non-cash government grants relaEng to R&D costs are recognised in profit or loss (within other income) over the period necessary to match them with the related expenditure, rather than being recorded as a tax offset in income tax expense. Refer to Note 3 for further details on the Group’s R&D tax incenEve recogniEon policy.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 47 c) Movement in temporary differences At 30 June 2026, the Group has unrecognised net deferred tax assets amounEng to $41.9 million (30 June 2025: $41.6 million). The movement in temporary differences is outlined below: Balance 1 July 2025 US$‘000 Recognised in Profit or Loss US$‘000 Balance 30 June 2026 US$‘000 Deferred tax assets / (liabiliEes) Property, plant and equipment, intangible assets (5,860) (625) (6,485) Trade, other receivables and current assets - 31 31 Leases 293 278 571 Accruals and provisions 1,123 809 1,932 Tax losses carried forward 47,084 80 47,164 Others 274 (263) 11 Net deferred tax asset not recognised (41,575) (310) (41,885) 1,339 - 1,339 Balance 1 July 2024 US$‘000 Recognised in Profit or Loss US$‘000 Balance 30 June 2025 US$‘000 Deferred tax assets / (liabiliEes) Property, plant and equipment, intangible assets (7,382) 1,522 (5,860) Trade, other receivables and current assets 36 (36) - Trade and other payables (117) 117 - Leases 551 (258) 293 Accruals and provisions 1,019 104 1,123 Tax losses carried forward 20,702 26,382 47,084 Others - 274 274 Net deferred tax asset not recognised (14,043) (27,532) (41,575) 766 573 1,339 d) Franking credit balance The franking account balance of the Company as at the end of the financial year is A$4.5million (2025: A$4.6 million). ACCOUNTING POLICY Income tax expense comprises current and deferred tax. It is recognised in profit and loss except to the extent that it relates to items recognised directly in equity or other comprehensive income.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 48 a) Current Tax Current tax comprises the expected tax payable or receivable on the taxable income or loss for the period and any adjustment to tax payable or receivable in respect of previous periods. It is measured using tax rates enacted or substanEvely enacted at the reporEng date. Current tax also includes any tax arising from dividends. Current tax assets and liabiliEes are offset only if certain criteria are met. b) Deferred Tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabiliEes for financial reporEng purposes and the amounts used for taxaEon purposes. Deferred tax is not recognised for: o temporary differences on the iniEal recogniEon of assets or liabiliEes in a transacEon that is not a business combinaEon and that affects neither accounEng nor taxable profit or loss; o temporary differences related to investments in subsidiaries and associates; o temporary differences where the Company is unable to control the Eming of the reversal and it is probable that they will not reverse in the foreseeable future; and o temporary differences arising on the iniEal recogniEon of goodwill. Deferred tax assets are recognised for unused tax losses, unused tax credits and deducEble temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Significant management judgment is required to esEmate the amount of deferred tax assets that can be recognised, based upon the likely Eming and level of future taxable profit in the nearer term. Deferred tax assets are reviewed at each reporEng date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substanEvely enacted at the reporEng date. The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at the reporEng date, to recover or se?le the carrying amount of its assets and liabiliEes. Deferred tax assets and liabiliEes are offset only if certain criteria are met. The Company and its wholly owned Australian resident enEEes are part of a tax-consolidated group. As a consequence, all members of the tax-consolidated group are taxed as a single enEty. The head enEty within the tax-consolidated group is DUG Technology Ltd.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 49 9. EARNINGS PER SHARE 30 June 2026 US$‘000 30 June 2025 US$‘000 Profit / (loss) a?ributable to equity holders of the Company 1,820 (3,892) Basic/Diluted Earnings per Share (“EPS”) 30 June 2026 cents 30 June 2025 cents Basic earnings / (loss) earnings per share 1.35 (3.01) Diluted earnings / (loss) earnings per share 1.31 (3.01)1 Weighted Average Number of Shares 30 June 2026 No. 30 June 2025 No. Weighted average number of shares used in basic EPS 134,901,786 129,174,218 Weighted average number of shares used in diluted EPS 138,792,839 129,174,2181 1 Diluted loss per share is equal to basic loss per share for the year ended 30 June 2025, as the effect of all poten8al ordinary shares is an8-dilu8ve due to the net loss incurred. OpEons granted to employees under Long-Term IncenEve Plans are considered to be potenEal ordinary shares and have been included in the determinaEon of diluted EPS as at 30 June 2026 to the extent to which they are diluEve. The opEons have not been included in the determinaEon of basic EPS. Details are set out in Note 29. ACCOUNTING POLICY Basic earnings per share is calculated as a net profit or loss a?ributable to members, adjusted to exclude any costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is calculated as net profit or loss a?ributable to members, adjusted for: o costs of servicing equity (other than dividends); o the ader-tax effect of dividends and interest associated with diluEve potenEal ordinary shares that have been recognised as expenses; and o other non-discreEonary changes in revenues or expenses during the period that would result from the diluEon of potenEal ordinary shares; divided by the weighted average number of ordinary shares and diluEve potenEal ordinary shares, adjusted for any bonus element. PotenEal ordinary shares shall be treated as anE-diluEve and excluded from the calculaEon of diluted earnings per share when their inclusion would increase earnings per share or decrease loss per share.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 50 10. CASH AND CASH EQUIVALENTS 30 June 2026 US$‘000 30 June 2025 US$‘000 Cash at bank 10,501 16,410 Total cash and cash equivalents 10,501 16,410 ACCOUNTING POLICY Cash and short-term deposits in the Consolidated Statement of Financial PosiEon comprise cash at bank and short-term highly liquid deposits with a maturity of three months or less, that are readily converEble to a known amount of cash and subject to an insignificant risk of changes in value. For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrads as they are considered an integral part of the Group’s cash management. 11. TRADE AND OTHER RECEIVABLES 30 June 2026 US$‘000 30 June 2025 US$‘000 Current assets: Trade receivables 12,286 11,565 Provision for expected credit losses (126) (130) Trade receivables – net 12,160 11,435 Other receivables 302 232 Trade and other receivables 12,462 11,667 ACCOUNTING POLICY Receivables which generally have 30-day terms are recognised and carried at original invoice amount less an allowance for any uncollecEble amounts. Expected credit losses are recognised using the simplified approach. The expected credit loss assessment requires, in some cases, a significant degree of esEmaEon and judgement. The level of provision is assessed by applying the Expected Credit Loss (ECL) model which takes into account forward looking a?ributes of the individual debtor as well as historical data such as recent sales experience, the ageing of receivables, historical collecEon rates, and specific knowledge of the individual debtor’s financial posiEon.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 51 The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are based on days past due for groupings of various customer segments that have similar loss pa?erns (i.e. by geography, product type, customer type and raEng). The provision matrix is iniEally based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking informaEon. At every reporEng date, the historical observed default rates are updated and changes in the forward-looking esEmates are analysed. The assessment of the correlaEon between historical observed default rates, forecast economic condiEons and ECLs is a significant esEmate. The amount of ECLs is sensiEve to changes in circumstances and of forecast economic condiEons. The Group’s historical credit loss experience and forecast of economic condiEons may also not be representaEve of customer’s actual default in the future. Bad debts are wri?en off as incurred. Credit terms for trade receivables average 30 days. The following table shows the movement in lifeEme expected credit loss that has been recognised for trade and other receivables in accordance with the simplified approach set out in AASB 9: Financial Instruments. 30 June 2026 US$‘000 30 June 2025 US$‘000 As at 1 July 130 128 (Decrease) / Increase during the year (4) 2 Total expected credit loss 126 130 The main source of credit risk to the Group is considered to relate to the class of assets described as “trade and other receivables” (also referred to in Note 23). At 30 June 2026, a total of 37% of year end trade receivables were concentrated to the top five customers (30 June 2025: 40%). The table below details the Group’s trade and other receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided for thereon. Amounts are considered as “past due” when the debt has not been se?led within the terms and condiEons agreed between the Group and the customer or counterparty to the transacEon. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicaEng that the debt may not be fully repaid to the Group. The balances of receivables that remain within iniEal trade terms (as detailed in the table below) are considered to be of high credit quality.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 52 The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9: Financial Instruments, which permits the use of the lifeEme expected loss provision for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characterisEcs and the days past due. The loss allowance provision as at 30 June 2026 is determined as follows. The expected credit losses below also incorporate forward-looking informaEon. 30 June 2026 Current US$‘000 1-31 days US$‘000 31-60 days US$‘000 61-90 days US$‘000 >90 days US$‘000 Total US$‘000 Gross carrying amount 7,060 2,041 2,196 750 239 12,286 Expected credit loss provision - - (21) (8) (97) (126) Net carrying amount 7,060 2,041 2,175 742 142 12,160 Expected loss rate - - 1.0% 1.1% 40.6% 1.0% 30 June 2025 Current US$‘000 1-31 days US$‘000 31-60 days US$‘000 61-90 days US$‘000 >90 days US$‘000 Total US$‘000 Gross carrying amount 5,533 2,914 1,698 905 515 11,565 Expected credit loss provision - - (16) (12) (102) (130) Net carrying amount 5,533 2,914 1,682 893 413 11,435 Expected loss rate - - 0.9% 1.3% 19.8% 1.1% Financial assets measured at amorEsed cost 30 June 2026 US$‘000 30 June 2025 US$‘000 Trade and other receivables - current 12,462 11,667 Total financial assets classified as loans and other receivables 12,462 11,667
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 53 12. CONTRACT ASSETS / LIABILITIES 30 June 2026 US$‘000 30 June 2025 US$‘000 Contract Assets – Current Services 9,284 4,332 Provision for expected credit losses (27) (13) Total 9,257 4,319 Contract LiabiliEes – Current Services 5,800 1,137 Sodware 997 740 HPCaaS1 1,174 1,213 Total 7,971 3,090 1 Includes $0.85m funding received from the Western Australian State Government received during the financial year ended 30 June 2024. ACCOUNTING POLICY Contract liabiliEes represent the fair value of consideraEon received from its customers in advance of the Group meeEng its performance obligaEons to deliver goods or services. Contract assets represent the fair value of consideraEon in exchange for goods or services that the Group has transferred to its customer, but contractually is not enEtled to invoice. Impairment of contract assets The Group has applied the expected credit loss model based on lifeEme expected loss allowance for contract assets. The contract asset balance at year-end represents the unbilled balance with eleven reputable customers. The provision for expected credit losses takes into account the customer’s operaEonal reputaEon, past historical experience and the short-term nature of the contract assets.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 54 13. PROPERTY, PLANT AND EQUIPMENT Data Centre Infrastructure and HPC US$‘000 Leasehold Improvements US$‘000 Office Equipment US$‘000 Under ConstrucQon US$‘000 Total US$‘000 Cost At 1 July 2024 64,329 3,328 1,576 2,007 71,240 AddiQons 570 262 36 1,084 1,952 Transfer to rights-of-use assets - - - (1,315) (1,315) Disposals (117) - - - (117) At 30 June 2025 64,782 3,590 1,612 1,776 71,760 At 1 July 2025 64,782 3,590 1,612 1,776 71,760 AddiQons 7,186 1,174 55 18,643 27,058 Transfer from rights-of-use assets 10,213 - - 10,213 Disposals (6) - (1) (841) (848) At 30 June 2026 82,175 4,764 1,666 19,578 108,183 Accumulated DepreciaQon At 1 July 2024 49,331 3,025 1,558 - 53,914 DepreciaQon 3,472 180 10 - 3,662 Disposals (90) - - - (90) At 30 June 2025 52,713 3,205 1,568 - 57,486 At 1 July 2025 52,713 3,205 1,568 - 57,486 DepreciaQon 4,474 259 17 - 4,750 Transfer from rights-of-use assets 2,888 - - - 2,888 Disposals (4) - (1) - (5) At 30 June 2026 60,071 3,464 1,584 - 65,119 Carrying amounts As 30 June 2025 12,069 385 44 1,776 14,274 At 30 June 2026 22,104 1,300 82 19,578 43,064 Please refer to Note 14 for informaEon on HPC right-of-use assets at 30 June 2026 and 30 June 2025.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 55 ACCOUNTING POLICY Recognition and Measurement Items of property, plant and equipment are measured at cost less accumulated depreciaEon and accumulated impairment losses. Cost is the fair value of consideraEon given to acquire the assets at the Eme of its acquisiEon. If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Any gain and loss on disposal of an item of property, plant and equipment is recognised in profit and loss. Subsequent Expenditure Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Depreciation DepreciaEon is calculated to reduce the cost of property, plant and equipment less their residual values over their esEmated useful lives and is generally recognised in profit and loss. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. The HPC pool comprises compute, storage, NOMAD and data centre infrastructure. The leasehold improvement pool is made up of the Group’s office fit-out costs. The esEmated useful lives of property, plant and equipment are as follows: o HPC - Compute and storage 5 years o NOMAD 10 years o Data centre infrastructure 20 years o Leasehold improvements No longer than term of lease o Office equipment and motor vehicles 5 years The Group determines the esEmated useful lives and related depreciaEon and amorEsaEon charges for its property, plant and equipment, as well as intangible assets (Note 15). The useful lives could change significantly because of technical innovaEons or some other event. The depreciaEon and amorEsaEon charge will decrease where the useful lives are greater than previously esEmated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be wri?en off or wri?en down. The Group periodically reviews and changes the esEmated useful lives of assets with any changes being treated as a change in accounEng esEmates and accounted for in a prospecEve manner . Security General security agreements, and their equivalents, exist worldwide throughout the Group’s property, plant and equipment assets (Refer Notes 18 and 19). Impairment Assessment Refer to Note 22 for informaEon on how the Group assesses impairment of non-financial assets.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 56 14. RIGHT-OF-USE ASSETS HPC US$‘000 Offices US$‘000 Data Centre US$‘000 Global Fibre Links US$‘000 Total US$‘000 Cost: At 1 July 2024 27,836 7,585 8,319 779 44,519 AddiEons 5,869 4,137 - - 9,996 Transfer from property, plant and equipment 1,315 - - - 1,315 At 30 June 2025 35,010 11,722 8,319 779 55,830 At 1 July 2025 35,010 11,722 8,319 779 55,830 AddiEons 11,770 4,131 552 118 16,570 Transfer to property, plant and equipment (10,213) - - - (10,213) Remeasurement - 4,956 - - 4,956 Disposal - (5,138) - (52) (5,190) At 30 June 2026 36,567 15,671 8,871 845 61,954 Accumulated depreciaEon: At 1 July 2024 1,151 5,716 2,129 311 9,307 DepreciaEon 7,024 1,528 406 115 9,073 At 30 June 2025 8,175 7,244 2,535 426 18,380 At 1 July 2025 8,175 7,244 2,535 426 18,380 DepreciaEon 6,209 1,825 641 124 8,799 Transfer to property, plant and equipment (2,888) - - - (2,888) Disposal - (3,558) - (52) (3,610) At 30 June 2026 11,496 5,511 3,176 498 20,681 Carrying amounts: At 30 June 2025 26,835 4,478 5,784 353 37,450 At 30 June 2026 25,071 10,160 5,695 347 41,273 ACCOUNTING POLICY The accounEng policy for Right-of-Use Assets is disclosed together with the accounEng policy for Leases at Note 19.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 57 15. INTANGIBLE ASSETS Website US$‘000 Sodware US$‘000 Patents and Trademarks US$‘000 Total US$‘000 Cost At 1 July 2024 20 1,325 908 2,253 AddiEons - - 103 103 At 30 June 2025 20 1,325 1,011 2,356 At 1 July 2025 20 1,325 1,011 2,356 AddiEons - 223 104 327 At 30 June 2026 20 1,548 1,115 2,683 Accumulated amorEsaEon At 1 July 2024 20 1,214 344 1,578 AmorEsaEon - 80 164 244 At 30 June 2025 20 1,294 508 1,822 At 1 July 2025 20 1,294 508 1,822 AmorEsaEon - 63 98 161 At 30 June 2026 20 1,357 606 1,983 Carrying amounts At 30 June 2025 - 31 503 534 At 30 June 2026 - 191 509 700 ACCOUNTING POLICY Intangible assets acquired separately are measured at cost. Following iniEal recogniEon, intangible assets are carried at cost less any accumulated amorEsaEon and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or infinite. Intangible assets with finite lives are amorEsed over the useful life and assessed for impairment whenever there is an indicaEon that the intangible asset may be impaired. The amorEsaEon period and the amorEsaEon method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pa?ern of consumpEon of future economic benefits embodied in the asset are accounted for by changing the amorEsaEon period or method, as appropriate, which is a change in accounEng esEmate. The amorEsaEon expense on intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the funcEon of the intangible asset.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 58 Patents Legal costs directly a?ributable to establishing or renewing patent registraEons are recognised as intangible assets when it is probable that the patent will generate future economic benefits, is separable from other rights and obligaEons, and its costs can be reliably measured. Other expenditure that does not meet these criteria are recognised as an expense as incurred. AmorEsaEon is calculated using the straight-line method to allocate the costs of intangible over its esEmated useful life. Other Intangible Assets Other intangible assets acquired separately are measured at cost. Following iniEal recogniEon, other intangible assets are carried at cost less any accumulated amorEsaEon and any accumulated impairment losses. The useful lives of other intangible assets are assessed to be either finite or infinite. Other intangible assets with finite lives are amorEsed over the useful life and assessed for impairment whenever there is an indicaEon that the intangible asset may be impaired. The amorEsaEon period and the amorEsaEon method for other intangible assets with a finite useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pa?ern of consumpEon of future economic benefits embodied in the asset are accounted for by changing the amorEsaEon period or method, as appropriate, which is a change in accounEng esEmate. The amorEsaEon expense on other intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the funcEon of the intangible asset. Subsequent Expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill, is recognised in profit and loss as incurred. Amortisation AmorEsaEon is calculated to reduce the value of intangible assets less their esEmated residual values over the esEmated useful life of the asset. The esEmated useful lives for current and comparaEve periods are as follows: o Sodware and Website 2.5 to 4 years o Trademarks / Patents 10 years AmorEsaEon methods, useful lives and residual values are reviewed at each reporEng date and adjusted if appropriate.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 59 16. OTHER ASSETS 30 June 2026 US$‘000 30 June 2025 US$‘000 Current: Bonds and security deposits 960 1,943 Other current assets 2 2 962 1,945 Non-current: Bonds and security deposits 3,247 1,766 Current bonds and security deposits relate to certain Group premises where the lease expires within 12 months. All other bonds and security deposits are classified as non-current. Included in the bond and security deposits is $1.6 million (2025: $2.8 million) deposits for the Group’s asset financing leases. These deposits will cover the last two to four lease repayments at the end of the leases. ACCOUNTING POLICY Bonds and security deposits relate to cash paid to meet the collateral requirements for occupancy leased assets, equipment leases and project requirements. Bonds and security deposits are non-interest bearing. 17. TRADE AND OTHER PAYABLES 30 June 2026 US$‘000 30 June 2025 US$‘000 Current: Trade payables 1,757 1,220 Other payable 12,875 - Accruals 3,386 3,206 Payroll-related payables 697 583 GST / VAT payable 12 (148) Others (28) - Trade and other payables 18,699 4,861 The normal trade credit terms granted by trade creditors to the Group is 30 days. “Other payable” at 30 June 2026 relates to the acquisiEon of compute assets which were recognised as asset-in-transit at the end of financial year .
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 60 ACCOUNTING POLICY Trade and other payables are carried at amorEsed cost and represent liabiliEes for goods and services provided to the Group prior to the end of the financial period that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. Goods and Services Tax (GST) and Value Added Tax (VAT) Revenue, expenses and assets are recognised net of the amount of GST or VAT, except where the amount of GST or VAT incurred is not recoverable from the relevant tax authoriEes. Receivables and payables are stated inclusive of the amount of GST or VAT receivable or payable. The net amount of GST or VAT recoverable from, or payable to, the relevant tax authoriEes is included with other receivables or payables in the Consolidated Statement of Financial PosiEon. Cash flows are presented on a gross basis. The GST or VAT components of cash flows arising from invesEng or financing acEviEes, which are recoverable from or payable to the relevant tax authoriEes, are presented as operaEng cash flows included in receipts from customers or payments to suppliers. 18. LOANS AND BORROWINGS Other loan faciliEes US$‘000 Total US$‘000 30 June 2026 Current - - 30 June 2025 Current 40 40 Bank Facilities As at 30 June 2026, the Group has the following bank faciliEes in place: o An overdrad facility of A$1.0 million (30 June 2025: A$1.0 million) which was not drawn at 30 June 2026 and 30 June 2025. o Total conEngent instrument faciliEes of $4.5 million (30 June 2025: $1.4 million). At 30 June 2026, bank guarantees issued on behalf of the Group enEEes totalled $2.2 million (30 June 2025: $1.1 million). The overdrad and conEngent instrument faciliEes are subject to annual review by the financier who in their absolute discreEon can determine to roll over for a further 12 months.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 61 The Group has provided the following security in relaEon to the bank faciliEes: o A first ranking general security to a financier over all present and future rights, property and undertakings. o There is a fixed charge on all freehold, leasehold, book debts and other assets of the Group, in respect of a bank loan drawdown. The bank also has a floaEng charge over all the assets of the Group. There is a security carve-out for the financing of specific assets through third party financiers. o Cash collateral deposit of $0.4 million secured against a conEngent instrument facility. Interest on overdrad facility is calculated at secured overnight financing rate (SOFR) plus a line fee of 2.76%. Other loan facilities As at 30 June 2026, the Group has a loan facility of $40,000 (30 June 2025: $156,000) secured against storage assets purchased in Australia, which matured during the year. The weighted average effecEve interest rate on this facility at 30 June 2025 was 11.68% per annum. ACCOUNTING POLICY a) Loans and Borrowings Borrowings are iniEally recognised at fair value, net of transacEon costs incurred. Borrowings are subsequently measured at amorEsed cost. Any difference between the proceeds (net of transacEon costs) and the redempEon amount is recognised in the Consolidated Statement of Profit or Loss over the period of the borrowings using the effecEve interest method. Borrowings are classified as current liabiliEes unless the Group has an uncondiEonal right to defer se?lement of the liability for at least 12 months ader the reporEng date. b) Finance Costs Finance costs directly a?ributable to the acquisiEon, construcEon or producEon of an asset that necessarily takes a substanEal period of Eme to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other finance costs are expensed in the period in which they occur . Finance costs consist of interest and other costs incurred in connecEon with the borrowing of funds.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 62 19. LEASE LIABILITIES 30 June 2026 US$‘000 30 June 2025 US$‘000 Current Property and global network links 1,549 1,709 HPC asset financing 10,969 9,454 12,518 11,163 Non-current Property and global network links 17,663 11,747 HPC asset financing 12,521 10,859 30,184 22,606 The Group’s lease porsolio includes buildings, which their remaining lease term ranges from less than 1 year to 14 years. The maturity analysis of lease liabiliEes is disclosed in Note 23. Right-of-use Assets The Group’s lease porsolio includes: o buildings with remaining lease terms ranging from less than 1 year to 14 years. o compute assets acquired through asset financing faciliEes totalling $33.8 million (2025: $29.7 million), secured against the financed compute assets of the Group and the deposits set out in Note 17. The leases have repayment terms ranging from 24 months to 60 months, with maturity between April 2027 and July 2029. Average interest rate during the period was 9.65% (30 June 2025: 13.49%). Options to Extend The opEon to extend the lease term is contained in the property leases of the Group. These clauses provide the Group opportuniEes to manage leases in order to align with its strategies. All of the extension opEons are only exercisable by the Group. The extension opEons which were probable to be exercised have been included in the calculaEon of the right-of-use asset. Set out below are the undiscounted potenEal future rental payments relaEng to periods following the exercise date of extension opEons that are not included in the lease term: Within Five Years US$‘000 More than Five Years US$‘000 Extension opEons expected not to be exercised - -
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 63 AASB 16 Related Amounts Recognised in the Statement of Profit or Loss 30 June 2026 US$‘000 30 June 2025 US$‘000 DepreciaEon charge related to right-of-use assets 8,799 9,073 Interest expense on lease liabiliEes 3,495 4,143 Total Cash Outflow for Leases 30 June 2026 US$‘000 30 June 2025 US$‘000 Total cash ouslow for leases including interest 15,034 15,356 ACCOUNTING POLICY Leases (the Company as a Lessee) At incepEon of a contract, the Company 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 Company where the Company is a lessee. However, all contracts that are classified as short-term leases (i.e. a lease with a remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operaEng expense on a straight-line basis over the term of the lease. IniEally, the lease liability is measured at the present value of the lease payments sEll to be paid at commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Company uses the incremental borrowing rate. Lease payments included in the measurement of the lease liability are as follows: o fixed lease payments less any lease incenEves; o variable lease payments that depend on an index or rate, iniEally measured using the index or rate at the commencement date; o the amount expected to be payable by the lessee under residual value guarantees; o the exercise price of purchase opEons, if the lessee is reasonably certain to exercise the opEons; and o payments of penalEes for terminaEng the lease if the lease term reflects the exercise of an opEon to terminate the lease. The right-of-use assets comprise the iniEal measurement of the corresponding lease liability as menEoned above, any lease payments made at or before the commencement date, as well as any iniEal direct costs. The subsequent measurement of the right-of-use assets is at cost less accumulated depreciaEon 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 Company anEcipates exercising a purchase opEon, the specific asset is depreciated over the useful life of the underlying asset.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 64 The Group is required to determine the measurement of lease liabiliEes based on the present value of the remaining lease payments, discounted using the interest rate implicit in the lease, if readily available. Where the implicit interest rate is not readily available, the Group is required to use the Group’s incremental borrowing rate. Judgement is required to determine the appropriate discount rate to apply. The discount rate must reflect the rate of interest that a lessee would have to pay to borrow the funds necessary to purchase the right-of-use asset, over a similar term with a similar security, in a similar economic environment. Another AASB 16 area that requires judgment relates to the assessment of the likelihood of the Group exercising, or not exercising any extension or terminaEon opEons available within a lease. In performing these reasonably certain assessments, management considers all facts and circumstances that create an economic incenEve to either exercise, or not exercise an extension or terminaEon opEon. 20. PROVISIONS 30 June 2026 US$ ‘000 30 June 2025 US$‘000 Current Provision for annual leave 1,771 1,539 Provision for long service leave 1,054 799 2,825 2,338 Non-current Provision for long service leave 113 76 113 76 ACCOUNTING POLICY Provisions are recognised when the Group has a present obligaEon (legal or construcEve) as a result of a past event, it is probable that an ouslow of resources embodying economic benefits will be required to se?le the obligaEon and a reliable esEmate can be made of the amount of the obligaEon. When the Group expects all or some of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relaEng to any provision is presented in the Consolidated Income Statement net of any reimbursement. If the effect of the Eme value of money is material, provisions are discounted using a current interest rate that reflects the risks specific to the liability. When discounEng is used, the increase in the provision due to the passage of Eme is recognised as a borrowing cost.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 65 21. CAPITAL AND RESERVES a) Share Capital Share capital comprises ordinary shares. 30 June 2026 30 June 2025 No. US$‘000 No. US$‘000 Fully paid-up shares As at 1 July 132,850,143 76,240 115,710,853 55,362 Issued shares from opEons exercised 847,571 159 - - Employee loan funded shares sold 229,544 226 605,075 731 Issue on capital raise - - 16,534,215 20,849 Cost of capital raising issued, net of tax - - - (702) As at 30 June 133,927,258 76,625 132,850,143 76,240 Issued under loan funded share plans As at 1 July 1,807,458 - 2,412,533 - Employee loan funded shares repayment (229,544) - (605,075) - As at 30 June 1,577,914 - 1,807,458 - Total shares issued 135,505,172 76,625 134,657,601 76,240 Refer to Note 29 for the share opEon incenEve arrangement operated by the Company. ACCOUNTING POLICY Ordinary share capital is recognised at the fair value of the consideraEon received by the Group. Any transacEon costs arising on the issue of ordinary shares are recognised directly in equity as a reducEon of the share proceeds received. When an opEon is exercised, the Company issues new ordinary shares to the employee. The accumulated balance previously recognised in the share-based payment reserve for those specific opEons is transferred to share capital.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 66 b) Reserves 30 June 2026 US$‘000 30 June 2025 US$‘000 Share-based payments reserve 2,085 1,651 TranslaEon reserve (2,177) (2,177) Total (92) (526) o The share-based payment reserve comprises: i. expenses incurred from the issue of the Company’s shares under employee loan funded share and opEons plans, and ii. a transfer of $384,000 within equity from the share-based payments reserve to accumulated losses, represenEng the porEon of equity-se?led awards that expired unexercised based on the share-price hurdle achieved. These transacEons are treated as vested irrespecEve of whether the market condiEons are saEsfied, provided all other performance and service condiEons have been met. Please refer to Note 29 for further details of the share-based payment arrangements operated by the Company. o The translaEon reserve comprises all foreign exchange differences arising from the translaEon of the financial statements of the Group where the funcEonal currencies are different to the presentaEon currency for reporEng purposes. As all enEEes within the Group have a United States dollars (US$) funcEonal currency, there are not expected to be movements in this reserve. 22. IMPAIRMENT OF NON-CURRENT ASSETS The Group assesses impairment of non-financial assets at each reporEng date by evaluaEng condiEons specific to each of its cash-generaEng units (CGU) and to the parEcular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculaEons, which incorporate a number of key esEmates and assumpEons such as expected future cash flows from CGUs, discount rates used to calculate the present value of those cash flows, future revenue, margins and esEmated long-term growth rate. As at 30 June 2026, the Group’s main cash-generaEng units (CGUs) are: o HPCaaS; o Sodware; and o Services The carrying values of CGUs are reviewed for impairment at each reporEng date, with the recoverable amount being esEmated when events or changes in circumstances indicate an impairment trigger and that the carrying value may be impaired.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 67 The recoverable amount of a CGU is the greater of fair value less costs of disposal and value in use. In assessing value in use, the esEmated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the Eme value of money and the risks specific to the asset. At 30 June 2026, no impairment triggers were idenEfied. 23. FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT a) Financial risk management The Group’s financial instruments consist mainly of cash and cash equivalents, trade and other receivables, trade and other payables, loans and borrowings and lease liabiliEes. The total carrying amount, which is a reasonable approximaEon of fair value, for each category of the financial instruments are as follows: 30 June 2026 US$‘000 30 June 2025 US$‘000 Financial assets at amorEsed cost: Cash and cash equivalents 10,501 16,410 Trade and other receivables 12,462 11,667 Bonds and security deposits 4,206 3,709 27,169 31,786 Financial liabiliEes at amorEsed cost: Trade and other payables (17,971) (4,426) Lease liabiliEes (42,702) (33,769) Loans and borrowings - (40) (60,673) (38,235) b) Financial risk management policies The Directors’ overall risk management strategy seeks to assist the Group in meeEng its financial targets, while minimising potenEal adverse effects on financial performance. Risk management is reviewed by the Board of Directors on a regular basis, including monitoring credit risk and future cash flow requirements. The main purpose of non-derivaEve financial instruments is to raise finance for company operaEons. The Group does not have any derivaEve instruments as at 30 June 2026 (30 June 2025: nil).
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 68 c) Specific financial risk exposures and management The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk, and market risk relaEng to interest rate risk. There have been no substanEve changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objecEves, policies and processes for managing or measuring the risks from the previous year . CREDIT RISK Exposure to credit risk relaEng to financial assets arises from the potenEal non-performance by counterparEes of contract obligaEons that could lead to a financial loss to the Group. Credit risk is managed through maintaining procedures ensuring, to the extent possible, that customers and counterparEes to transacEons are of sound credit worthiness, granEng and renewal of credit limits, the regular monitoring of exposures against such limits and the monitoring of the financial stability of significant customers and counterparEes. Such monitoring is used in assessing receivables for impairment. Credit terms are generally 30 days from the date of invoice. Risk is also minimised through invesEng surplus funds into financial insEtuEons that maintain an investment credit raEng. The Group trades with recognised, creditworthy third parEes. Receivable balances are monitored on an ongoing basis, with the result that the Group’s bad debt exposure is not significant. At 30 June 2026 a total of 37% of year end trade receivables were concentrated to the top five customers (30 June 2025: 40%). The Group is confident these receivables are collectable and are acEvely managing these amounts. Credit risk related to balances with banks and other financial insEtuEons is managed in accordance with approved Board policy. Such policy requires that surplus funds are only invested with counterparEes with high credit raEngs assigned by internaEonal credit raEng agencies. Days past due 30 June 2026 Carrying Amount US$‘000 Current US$‘000 1-30 days US$‘000 31-60 days US$‘000 61-90 days US$‘000 >90 days US$‘000 Trade receivables 12,286 7,060 2,041 2,196 750 239 ECL provision (126) - - (21) (8) (97) Contract assets 9,257 9,257 - - - - Bonds / security deposits 4,209 4,209 - - - - 25,626 20,526 2,041 2,175 742 142
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 69 Days past due 30 June 2025 Carrying Amount US$‘000 Current US$‘000 1-30 days US$‘000 31-60 days US$‘000 61-90 days US$‘000 >90 days US$‘000 Trade receivables 11,565 5,533 2,914 1,698 905 515 ECL provision (130) - - (16) (12) (102) Contract assets 4,319 4,319 - - - Bonds / security deposits 3,709 3,709 - - - 19,463 13,561 2,914 1,682 893 413 LIQUIDITY RISK Liquidity risk arises from the possibility that the Group might encounter difficulty in se?ling its debts or otherwise meeEng its obligaEons related to financial liabiliEes. The Group manages this risk through the following mechanisms: o Preparing forward-looking cash flow analyses in relaEon to its operaEng, invesEng and financing acEviEes; o Monitoring undrawn debt faciliEes; o Obtaining funding from a variety of sources; o Maintaining a reputable credit profile; o Managing credit risk related to financial assets; o Only invesEng surplus cash with major financial insEtuEons; and o Comparing the maturity profile of financial liabiliEes with the realisaEon profile of financial assets. The table below reflects an undiscounted contractual maturity analysis for non-derivaEve financial liabiliEes. The Emings of cash flows presented in the table to se?le financial liabiliEes reflect the earliest contractual se?lement dates. 30 June 2026 Carrying Amount US$‘000 Contractual Cash Ounlows US$‘000 6 Months or Less US$‘000 6-12 Months US$‘000 1-2 Years US$‘000 2-5 Years US$‘000 More than 5 Years US$‘000 Lease liabiliEes 42,702 46,466 5,601 5,625 14,098 13,169 7,973 Trade and other payables 17,971 17,971 17,971 - - - - 60,673 64,437 23,572 5,625 14,098 13,169 7,973
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 70 30 June 2025 Carrying Amount US$‘000 Contractual Cash Ounlows US$‘000 6 Months or Less US$‘000 6-12 Months US$‘000 1-2 Years US$‘000 2-5 Years US$‘000 More than 5 Years US$‘000 Bank loans and asset financing 40 40 40 - - - - Lease liabiliEes 33,769 45,496 7,673 6,120 13,801 5,611 12,291 Trade payables and accruals 4,426 4,426 4,426 - - - - 38,235 49,962 12,139 6,120 13,801 5,611 12,291 Financial assets pledged as collateral Certain financial assets have been pledged as security for debt and their realisaEon into cash may be restricted subject to terms and condiEons a?ached to the relevant debt contracts (refer to Notes 18 and 19 for further details). MARKET RISK Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabiliEes recognised at the end of the reporEng period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Group is also exposed to earnings volaElity on floaEng rate instruments. The financial instruments that expose the Group to interest rate risk are limited to loans and borrowings, and cash and cash equivalents. The following table illustrates sensiEviEes to the Group’s exposures to changes in interest rates. The table indicates the impact on how profit and equity values reported at the end of the reporEng period would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. 30 June 2026 US$‘000 30 June 2025 US$‘000 Impact on profit 2.0% increase in interest rates (235) (443) 2.0% decrease in interest rates 235 443 There have been no changes in any of the assumpEons used to prepare the above sensiEvity analysis from the prior year . The Group also manages interest rate risk by ensuring that, whenever possible, payables are paid within any pre-agreed credit terms.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 71 CAPITAL MANAGEMENT Management effecEvely manages the Group's assets by assessing the Group's financial risks and adjusEng its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, monitoring of undrawn debt faciliEes, distribuEons to shareholders and share issuances. Management controls the capital of the Company in order to maintain a good debt to equity raEo, provide the shareholders with adequate returns and ensure that the Group can fund its operaEons and conEnue as a going concern. There have been no changes in the strategy adopted by management to manage the capital of the Company. ACCOUNTING POLICY a) IniEal RecogniEon and Measurement Financial assets and financial liabiliEes are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounEng is adopted). Financial instruments (except for trade receivables) are iniEally measured at fair value plus transacEon costs, except where the instrument is classified "at fair value through profit or loss", in which case transacEon costs are expensed to profit or loss immediately. Where available, quoted prices in an acEve market are used to determine fair value. In other circumstances, valuaEon techniques are adopted. Trade receivables are iniEally measured at the transacEon price if the trade receivables do not contain significant financing component or if the pracEcal expedient was applied as specified in AASB 15.63. b) ClassificaEon and Subsequent Measurement i. Financial LiabiliEes Financial liabiliEes are subsequently measured at: o amorEsed cost; or o fair value through profit and loss. A financial liability is measured at fair value through profit and loss if the financial liability is: o a conEngent consideraEon of an acquirer in a business combinaEon to which AASB 3: Business CombinaEons applies; o held for trading; or o iniEally designated as at fair value through profit or loss.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 72 All other financial liabiliEes are subsequently measured at amorEsed cost using the effecEve interest method. The effecEve interest method is a method of calculaEng the amorEsed cost of a debt instrument and of allocaEng interest expense in profit or loss over the relevant period. The effecEve interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the esEmated future cash flows through the expected life of the instrument to the net carrying amount at iniEal recogniEon. A financial liability is held for trading if it is: o incurred for the purpose of repurchasing or repaying in the near term; o part of a porsolio where there is an actual pa?ern of short-term profit-taking; or o a derivaEve financial instrument (except for a derivaEve that is in a financial guarantee contract or a derivaEve that is in effecEve hedging relaEonships). Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relaEonship. The change in fair value of the financial liability a?ributable to changes in the issuer's credit risk is taken to other comprehensive income and is not subsequently reclassified to profit or loss. Instead, it is transferred to retained earnings upon derecogniEon of the financial liability. If taking the change in credit risk in other comprehensive income enlarges or creates an accounEng mismatch, then these gains or losses are taken to profit or loss rather than other comprehensive income. A financial liability cannot be reclassified. ii. Financial Assets Financial assets are subsequently measured at: o amorEsed cost; o fair value through other comprehensive income; or o fair value through profit and loss on the basis of the two primary criteria, being: • the contractual cash flow characterisEcs of the financial asset; and • the business model for managing the financial asset A financial asset is subsequently measured at amorEsed cost when it meets the following condiEons: o the financial asset is managed solely to collect contractual cash flows; o the contractual terms within the financial asset give rise to cash flows that are solely payments of principal; and o interest on the principal amount outstanding on specified dates.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 73 A financial asset is subsequently measured at fair value through other comprehensive income when it meets the following condiEons: o the contractual terms within the financial asset give rise to cash flows that are solely payments of principal; and o interest on the principal amount outstanding on specified dates; and o the business model for managing the financial asset comprises both contractual cash flows collecEon and the selling of the financial asset. By default, all other financial assets that do not meet the condiEons of amorEsed cost and the fair value through other comprehensive income's measurement condiEon are subsequently measured at fair value through profit or loss. The Group iniEally designates financial instruments as measured at fair value through profit or loss if: o it eliminates or significantly reduces a measurement or recogniEon inconsistency (oden referred to as “accounEng mismatch”) that would otherwise arise from measuring assets or liabiliEes or recognising the gains and losses on them on different bases; o it is in accordance with the documented risk management or investment strategy and informaEon about the groupings was documented appropriately, so the performance of the financial liability that was part of a group of financial liabiliEes or financial assets can be managed and evaluated consistently on a fair value basis; and o it is a hybrid contract that contains an embedded derivaEve that significantly modifies the cash flows otherwise required by the contract. The iniEal designaEon of the financial instruments to measure at fair value through profit and loss is a one-Eme opEon on iniEal classificaEon and is irrevocable unEl the financial asset is derecognised. iii. Equity Instruments Regular way purchases and sales of financial assets are recognised and derecognised at se?lement date in accordance with the Group’s accounEng policy.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 74 iv. DerecogniEon DerecogniEon refers to the removal of a previously recognised financial asset or financial liability from the statement of financial posiEon. DerecogniEon of financial liabiliEes A liability is derecognised when it is exEnguished (i.e. when the obligaEon in the contract is discharged, cancelled or expires). An exchange of an exisEng financial liability for a new one with substanEally modified terms, or a substanEal modificaEon to the terms of a financial liability, is treated as an exEnguishment of the exisEng liability and recogniEon of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideraEon paid and payable, including any non-cash assets transferred or liabiliEes assumed, is recognised in profit or loss. DerecogniEon of financial assets A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substanEally transferred. All of the following criteria need to be saEsfied for derecogniEon of a financial asset: o the right to receive cash flows from the asset has expired or been transferred; o all risk and rewards of ownership of the asset have been substanEally transferred; and o the EnEty no longer controls the asset (i.e. it has no pracEcal ability to make unilateral decisions to sell the asset to a third party). On derecogniEon of a financial asset measured at amorEsed cost, the difference between the asset's carrying amount and the sum of the consideraEon received and receivable is recognised in profit or loss. On derecogniEon of an investment in equity which the Group elected to classify under fair value through other comprehensive income, the cumulaEve gain or loss previously accumulated in the investment revaluaEon reserve is not reclassified to profit or loss, but is transferred to retained earnings.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 75 v. Impairment The Group recognises a loss allowance for expected credit losses on: o financial assets that are measured at amorEsed cost or fair value through other comprehensive income; o lease receivables; o contract assets (e.g. amount due from customers under construcEon contracts); o loan commitments that are not measured at fair value through profit or loss; and o financial guarantee contracts that are not measured at fair value through profit or loss. Loss allowance is not recognised for: o financial assets measured at fair value through profit or loss; or o equity instruments measured at fair value through other comprehensive income. Expected credit losses are the probability-weighted esEmate of credit losses over the expected life of a financial instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effecEve interest rate of the financial instrument. The Group uses the simplified approach to impairment, as applicable under AASB 9: Financial Instruments. Simplified approach The simplified approach does not require tracking of changes in credit risk in every reporEng period, but instead requires the recogniEon of lifeEme expected credit loss at all Emes. This approach is applicable to: o contract assets, and o trade receivables. In measuring the expected credit loss a provision matrix for trade receivables and contract assets (work in progress) has been used, taking into consideraEon various data to get to an expected credit loss (i.e. diversity of its customer base, appropriate groupings of its historical loss experience, etc). For intergroup loan receivables, the Group recognises 12 month expected credit losses i.e. the porEon of lifeEme expected credit losses that represent the expected credit losses that result from default events on a financial instrument that are possible within 12 months ader the reporEng date.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 76 vi. RecogniEon of Expected Credit Losses in Financial Statements At each reporEng date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss and other comprehensive income. The carrying amount of financial assets measured at amorEsed cost includes the loss allowance relaEng to that asset. Assets measured at fair value through other comprehensive income are recognised at fair value with changes in fair value recognised in other comprehensive income. An amount in relaEon to change in credit risk is transferred from other comprehensive income to profit or loss at every reporEng period. For financial assets that are unrecognised (e.g. loan commitments yet to be drawn, financial guarantees), a provision for loss allowance is created in the statement of financial posiEon to recognise the loss allowance. 24. KEY MANAGEMENT PERSONNEL COMPENSATION The total of remuneraEon paid to key management personnel of the Group during the year is as follows: 30 June 2026 US$‘000 30 June 2025 US$’000 Short-term benefits 965 1,162 Post-employment benefits 65 64 Other long-term benefits 10 9 Share-based payments 178 154 Total compensaEon paid to key management personnel 1,218 1,389 Comprising: Senior execuEves 942 1,141 Non-execuEve directors 276 245 1,218 1,389 During the financial year, a consultaEon fee of A$13,225 (including GST and out-of-pocket expenses) was paid to a company held by a non-execuEve director, for her consulEng services in reviewing and advising on a subsidiary’s corporate and tax structure. Other than the above, there are no other key management compensaEon transacEons for the year ended 30 June 2026 or 30 June 2025.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 77 25. RELATED PARTY TRANSACTIONS The Group’s main related parEes are as follows: a) EnEEes exercising control over the Group The ulEmate Parent EnEty, which exercises control over the Group, is DUG Technology Ltd. b) Key management personnel Any person(s) having authority and responsibility for planning, direcEng and controlling the acEviEes of the enEty, directly or indirectly, including any Director (whether execuEve or otherwise) of that enEty, is considered key management personnel. 26. CONSOLIDATED ENTITIES Name of EnEty Country of IncorporaEon Ownership Interest 30 June 2026 % 30 June 2025 % Parent enEty: DUG Technology Ltd Australia Subsidiaries: DUG Technology (Australia) Pty Ltd Australia 100 100 DownUnder GeoSoluEons (UK) Ltd United Kingdom 100 100 DownUnder GeoSoluEons (London) Pty Ltd United Kingdom 100 100 DownUnder GeoSoluEons (America) LLC USA 100 100 DownUnder GeoSoluEons (Asia) Sdn Bhd Malaysia 100 100 DownUnder GeoSoluEons (Malaysia) Sdn Bhd Malaysia 49 49 DUG Technology (24N) Ltd UAE 100 100 DUGEO SoluEons (India) Private Limited India 100 100 DUG DO Brasil LTDA Brazil 100 80
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 78 27. PARENT ENTITY DISCLOSURES As at, and throughout, the year ended 30 June 2026 the parent enEty of the Group was DUG Technology Ltd. 30 June 2026 US$‘000 30 June 2025 US$‘000 Results of parent enEty: Profit for the year 3,622 3,488 Other comprehensive income/(expense) - - Total comprehensive income for the year 3,622 3,488 Financial posiEon of parent enEty: Current assets 55,706 50,825 Non-current assets 4,070 4,070 Total assets 59,776 54,895 Current liabiliEes 13 42 Total liabiliEes 13 42 Net assets 59,763 54,937 Total equity of parent enEty comprising of: Share capital 76,625 76,240 Reserves 1,017 582 Accumulated losses (17,879) (21,885) Total equity 59,763 54,937 a) Parent enEty conEngent liabiliEes Provisions are not required in respect of these ma?ers, as it is not probable that a future sacrifice of economic benefits will be required, or the amount is not capable of reliable measurement. The parent enEty has guaranteed lease obligaEons of its US subsidiary in relaEon to compute purchased in the year. b) Parent enEty capital commitments for acquisiEon of property, plant and equipment There were no capital commitments of the parent enEty as at 30 June 2026 or 30 June 2025.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 79 28. FAIR VALUE MEASUREMENTS The methods for esEmaEng fair value are outlined in the relevant notes to the financial statements. The carrying amounts of financial assets and liabiliEes of the Group carried at amorEsed cost reasonably approximate their fair values. Fair value of an asset or a liability, except for share-based payment and lease transacEons, is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transacEon between market parEcipants at the measurement date. The measurement assumes that the transacEon to sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal market, in the most advantageous market. For a non-financial asset, the fair value measurement takes into account a market parEcipant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market parEcipant that would use the asset in its highest and best use. When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair value is categorised into different levels in a fair value hierarchy based on the input used in the valuaEon technique as follows: o Level 1: Quoted prices (unadjusted) in acEve markets for idenEcal assets or liabiliEes that the Company can access at the measurement date. o Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. o Level 3: Unobservable inputs for the asset or liability. The Group recognises transfers between levels of the fair value hierarchy as of the date of the event or change in circumstances that caused the transfers. 29. SHARE-BASED PAYMENTS The Company operates a Long-Term IncenEve Plan to reward DUG’s employees by issuing equity incenEves. The Long-Term IncenEve Plan is designed to align the interests of eligible parEcipants with shareholders through the sharing of personal interest in the future growth and development of DUG and to provide a means of a?racEng and retaining skilled and experienced eligible parEcipants. There are two incenEve arrangements operated by the company under the Long-Term IncenEve Plan. From financial year ended 30 June 2022, the Company uElises ZEPOs as the primary arrangement. Prior to this the Company offered a share plan to select employees.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 80 ZEPO awards are shown in full on the assumpEon that all vesEng condiEons will be met. Award balances are only reduced or removed once a condiEon has failed to be met. . The expense recognised for equity se?led share-based payments during the year is shown in the following table: 30 June 2026 US$‘000 30 June 2025 US$‘000 Total expense arising from share-based payment transacEons 977 785 ZEPO movements during the year: 30 June 2026 Number 30 June 2025 Number Balance at beginning of year 4,542,770 4,146,022 Granted during the year 1,461,636 1,335,821 Forfeited during the year (734,571) (939,073) Exercised during the year (847,571) - Balance at end of year 4,422,264 4,542,770 Zero Exercise Priced OpEons Details of the ZEPOs offered at the respecEve grant dates are shown in the following table: Grant date Number of options Issued to Vesting condition 11 Oct 2022 1,162,702 Employees All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2025. These are subject to a share price hurdle. 11 Oct 2022 248,641 Chief Financial Officer All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2025. These are subject to a share price hurdle. 11 Oct 2022 967,245 Employees All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2025. 21 Dec 2022 381,352 Managing Director All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2025. These options are subject to a share price hurdle. 21 Dec 2022 310,802 Employee & Consultants All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2025. These options are subject to a share price hurdle. 28 Aug 2023 167,786 Employee These options were issued to the holder as a sign on incentive to join the Group. 18 Oct 2023 793,831 Employees All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2026. These options are subject to a share price hurdle. 18 Oct 2023 470,441 Employees All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2026. 6 Nov 2023 50,280 Chief Financial Officer All options require the holder to remain continuously employed or engaged with the Group at all times to 31 October 2026 or terminated earlier by the company. These options were issued to the holder as a sign-on incentive to join the Group. 23 Nov 2023 256,941 Managing Director All options require the holder to remain continuously employed or engaged with the Group at all times to 30 June 2026. These options are subject to a share price hurdle. 11 Apr 2024 400,000 Consultant These options require the holder to meet certain performance related criteria. These options are exercised at A$4.00 per option.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 81 Grant date Number of options Issued to Vesting condition 15 Nov 2024 460,382 Employees All options require the holder to remain continuously employed or engaged with the Group at all times to 30 Nov 2029. 31 Dec 2024 369,728 Employees All options require the holder to remain continuously employed or engaged with the Group at all times to 30 Nov 2027. These options are subject to total shareholder return and return on capital employed hurdles (“Financial Performance Hurdles”). 31 Dec 2024 105,711 Managing Director All options require the holder to remain continuously employed or engaged with the Group at all times to 30 Nov 2027. These options are subject to the Financial Performance Hurdles. 30 Nov 2025 115,749 Managing Director All options require the holder to remain continuously employed or engaged with the Group at all times to 30 Nov 2028. These options are subject to the Financial Performance Hurdles. 30 Nov 2025 1,345,887 Employees All options require the holder to remain continuously employed or engaged with the Group at all times to 30 Nov 2028. 441,007 options are subject to the Financial Performance Hurdles. The opEons were valued using Monte Carlo or Black Scholes model at the grant date with inputs and outputs as below: Grant date Performance Condidons Performance period Vesdng date Number of opdons Expiry date Esdmated voladlity Share price at grant date Risk-free interest rate Fair value per share 11 Oct 2022 Share Price Oct 22 - Jun 25 30 Jun 25 1,411,343 30 Jun 2037 60% A$0.420 2.87% A$0.137 11 Oct 2022 Tenure Oct 22 - Jun 25 30 Jun 25 967,245 30 Jun 2037 60% A$0.420 2.87% A$0.420 21 Dec 2022 Share Price Dec 22 -Jun 25 30 Jun 25 692,154 30 Jun 2037 60% A$0.440 3.00% A$0.128 28 Aug 2023 Sign- On Aug 23 - Jun 26 28 Aug 26 167,786 30 Jun 2038 55% A$1.680 4.18% A$1.680 18 Oct 2023 Share Price Oct 23 - Jun 26 30 Jun 26 793,831 30 Jun 2038 55% A$1.900 4.07% A$1.250 18 Oct 2023 Tenure Oct 23 - Jun 26 30 Jun 26 470,441 30 Jun 2038 55% A$1.900 4.07% A$1.900 6 Nov 2023 Tenure Nov 23 - Oct 26 31 Oct 26 50,280 30 Jun 2038 55% A$1.730 4.18% A$1.730 23 Nov 2023 Share Price Nov 23 - Jun 26 30 Jun 26 256,941 30 Jun 2038 55% A$2.120 4.18% A$1.250 11 Apr 2024 Financial Performance Hurdles Apr 24 - Apr 26 11 Apr 26 400,000 11 Apr 2029 55% A$2.750 3.82% A$1.134 15 Nov 2024 Tenure Nov 24 - Nov 29 30 Nov 29 460,382 30 Nov 2039 55% A$1.755 4.17% A$1.755 31 Dec 2024 Financial Performance Hurdles Dec 24 - Nov 27 30 Nov 27 475,439 30 Nov 2039 43% A$1.400 3.85% A$1.570 30 Nov 2025 Tenure Dec 25 - Nov 28 30 Nov 28 904,880 30 Nov 2039 n/a A$2.030 n/a A$2.030 30 Nov 2025 Financial Performance Hurdles Dec 25 - Nov 28 30 Nov 28 556,756 30 Nov 2040 50% A$2.001 4.13% A$2.001
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 82 Loan Funded Share Plans Under the previously offered plan, the Company invited key employees to acquire shares in DUG Technology Ltd under loan funded share plans. Up unEl 30 June 2020, shares were offered in terms of the Company’s Loan Share Plan. Upon compleEon of the Company’s iniEal public offering of shares in August 2020, all shares issued under the Loan Share Plan vested and no further offers of shares will be made under this plan. The shares were granted at market value with the assistance of a limited recourse loan for a term of ten years under the Loan Share Plan and six years under the Long-Term IncenEve Plan. Any dividends payable in respect of these shares are repayable against the loan, unEl the loan is fully repaid. Loan share plan terms are stated in A$ and converted to US$ at the closing spot rate on 30 June each year. The tables below details the shares issued under the Loan Share Plan (LFSP) and the Long-Term IncenEve Plan (LTIP) and the related loans. Plan Tranche Number of Shares and Balance of Recourse Loans on 30 June 2026 No. of Shares Price per Share A$ Loan A$‘000 Loan US$‘000 Loan Maturity LFSP 17A 208,157 1.25 368 254 30/6/2028 LFSP 17B 704,148 1.49 1,690 1,165 19/2/2027 LFSP 18A 457,461 1.99 1,156 797 30/6/2029 LFSP 20A 62,300 2.05 147 101 19/3/2030 LTIP 21A 145,848 1.35 239 165 26/7/2026 Total 1,577,914 3,600 2,482 Plan Tranche Number of Shares and Balance of Recourse Loans on 30 June 2025 No. of Shares Price per Share A$ Loan A$‘000 Loan US$‘000 Loan Maturity LFSP 15A 176,002 1.04 324 212 30/6/20251 LFSP 17A 227,043 1.25 392 257 30/6/2028 LFSP 17B 704,148 1.49 1,690 1,107 19/2/2027 LFSP 18A 492,117 1.99 1,225 803 30/6/2029 LFSP 20A 62,300 2.05 147 96 19/3/2030 LTIP 21A 145,848 1.35 239 157 26/7/2026 Total 1,807,458 4,017 2,632 1 Repayment was made via sale of shares in the market on 1 July 2025.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 83 Repayment of Loans The loan can be voluntarily repaid at any Eme, however compulsory repayment is required on an occurrence of: o The date on which the recipient’s shares are compulsorily divested, if required under the Loan Share Plan rules; o The date the recipient disposes or a?empts to dispose of its shares; and o The date which is either 6 or 10 years ader the date the shares were issued to the recipient of the loan. The loan is a limited recourse loan and the Company, in seeking repayment, will have recourse only to the proceeds paid or payable for a disposal of shares and ader-tax dividends and distribuEons connected with the shares (unless it has waived its enEtlement to such dividends or distribuEons). The fair value of the shares granted under the loan funded share plan are measured using the Monte Carlo method. Expected volaElity is esEmated by considering historic average share price volaElity. 30. SEGMENT INFORMATION For management purposes, the Group is organised into business segments based on its products and services and has three reportable segments as follows: 1. The HPCaaS segment, allows clients to connect to the Group’s HPC and storage in a complete HPC environment. The Group’s supercomputers, located in three global locaEons, provide substanEal compute and storage capabiliEes. DUG also provides sodware and algorithm support and development to enable a client to successfully operate on DUG’s HPC. 2. The Services segment, provides clients with two types of services: o Data loading, quality control and management, and o ScienEfic data analysis. 3. The Sodware segment, has two main products: o DUG Insight – A modern, intuiEve and interacEve sodware package for scienEfic processing and visualisaEon, and o DUG Cluster Sodware – high end algorithms for the processing of scienEfic data on large HPC installaEons.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 84 The Group monitors the operaEng results of its business segments separately for the purpose of making decisions about resource allocaEon and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the consolidated financial statements. The Group’s financing (including finance costs, finance income and other income) and income taxes are managed on a Group basis and are not allocated to operaEng segments. No operaEng segments have been aggregated to form the above reportable segments. The Services segment is a significant user of compute and sodware and is therefore charged by the HPCaaS and Sodware segments for their use. This results in inter-segment revenue reported in the HPCaaS and Sodware segments with the corresponding costs recorded in other expenses in the Services segment. These inter-segment values eliminate on consolidaEon. Over Eme, internal charges made from the HPCaaS and Sodware segments to the Services segment change based on commercial discussions between the segments to enable fair market value pricing. OperaEng segments HPCaaS Services Sodware EliminaEon Consolidated 30 June 2026 US$‘000 US$‘000 US$‘000 US$‘000 US$‘000 Income Revenue from contracts with external customers 11,488 63,779 11,120 - 86,387 Inter-segment 32,618 - 2,734 (35,352) - Other income 6 170 4,398 - 4,574 Total income 44,112 63,949 18,252 (35,352) 90,961 Segment EBITDA1 22,507 (4,459) 7,874 - 25,922 Segment operaEng profit/(loss) 10,546 (5,990) 7,656 - 12,212 Segment assets 62,415 37,965 11,971 - 112,351 Segment liabiliEes 24,068 40,450 7,792 - 72,310 1. These items are categorised as non-IFRS informa8on prepared in accordance with ASIC Regulatory Guidance 230 - Disclosing non-IFRS financial informa8on.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 85 HPCaaS Services Sodware EliminaEon Consolidated 30 June 2025 US$‘000 US$‘000 US$‘000 US$‘000 US$‘000 Income Revenue from contracts with external customers 2,379 51,866 8,332 - 62,577 Inter-segment 25,065 - 2,137 (27,202) - Other income 260 - 3,255 - 3,515 Total income 27,704 51,866 13,724 (27,202) 66,092 Segment EBITDA1 14,923 (3,581) 4,102 - 15,444 Segment operaEng profit/(loss) 3,619 (4,898) 3,849 - 2,570 Segment assets 48,574 16,297 8,325 - 73,196 Segment liabiliEes 23,756 9,441 10,977 - 44,174 1. These items are categorised as non-IFRS informa8on prepared in accordance with ASIC Regulatory Guidance 230 - Disclosing non-IFRS financial informa8on. 30 June 2026 US$‘000 30 June 2025 US$‘000 ReconciliaEon of assets Segment assets 112,351 73,196 Cash and cash equivalents 10,501 16,410 Current tax asset - 505 Deferred tax asset 1,339 1,339 Total assets 124,191 91,450 ReconciliaEon of liabiliEes Segment liabiliEes 72,310 44,174 Current tax liabiliEes 761 - Total liabiliEes 73,071 44,174 ReconciliaEon of profit / (loss) Segment operaEng profit 12,212 2,570 Net finance expense (3,634) (4,011) Tax expense (5,937) (2,967) Profit / (loss) ader tax 2,641 (4,408)
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 86 Geographic Segments 30 June 2026 US$‘000 30 June 2025 US$‘000 Geographic locaEon of non-current operaEng assets Australia 10,638 7,638 United Kingdom 3,600 1,490 United States of America 48,398 41,767 Malaysia 23,622 1,378 United Arab Emirates 3,343 3,090 Others 22 - Total non-current assets 89,623 55,363 Non-current assets for this purpose consist mainly of property, plant and equipment, right-of-use assets and intangible assets. ACCOUNTING POLICY OperaEng segments are reported in a manner consistent with the internal reporEng provided to the chief operaEng decision maker . The chief operaEng decision maker, who is responsible for allocaEng resources and assessing performance of the operaEng segments, has been idenEfied as the Managing Director 31. CASH FLOW INFORMATION ReconciliaEon of profit ader tax to net cash flows from operaEons 30 June 2026 US$‘000 30 June 2025 US$‘000 Profit / (loss) ader tax 2,641 (4,408) Adjustments for: DepreciaEon and amorEsaEon 13,710 12,875 Net finance expense 3,634 4,011 Tax expense 5,937 2,967 Other one-off revenue 259 - Unrealised foreign exchange (gain)/loss (291) 703 Loss on disposal of property, plant and equipment - 25 Share based payments 977 554 Government grant (non-cash) (4,315) (3,515) 22,552 13,212 Movements in working capital: Increase in trade and other receivables (5,872) (3,690) Increase / (decrease) in trade and other payables 4,223 (3,942) Net cash flows from operaEng acEviEes 20,903 5,580
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 87 32. CONTINGENT LIABILITIES AND COMMITMENTS The Group has no material conEngent liabiliEes, conEngent assets or commitment as at the reporEng date. 33. SUBSEQUENT EVENTS Ader 30 June 2026, DUG received a US$9.3 million sodware and HPC infrastructure award from a NaEonal Oil Company. The award has a two-year term commencing in the first quarter of FY27, under which DUG will provide hosted HPC infrastructure and access to the DUG Insight processing and imaging toolkit. Refer to the Company's ASX announcement "US$9.3 million Sodware and HPC Infrastructure Award" dated 26 August 2026. The award is a non-adjusEng subsequent event. No other ma?er or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect, the Group's operaEons, the results of those operaEons, or the Group's state of affairs in future financial years.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 88 CONSOLIDATED ENTITIES DISCLOSURE STATEMENT Name of EnEty EnEty Type Country of IncorporaEon & Tax residency Ownership Interest 30 June 2026 % 30 June 2025 % Parent enEty: DUG Technology Ltd Body Corporate Australia Subsidiaries: DUG Technology (Australia) Pty Ltd Body Corporate Australia 100 100 DownUnder GeoSoluEons (UK) Ltd Body Corporate United Kingdom 100 100 DownUnder GeoSoluEons (London) Pty Ltd Body Corporate United Kingdom 100 100 DownUnder GeoSoluEons (America) LLC Body Corporate United States 100 100 DownUnder GeoSoluEons (Asia) Sdn Bhd Body Corporate Malaysia 100 100 DownUnder GeoSoluEons (Malaysia) Sdn Bhd Body Corporate Malaysia 49 49 DUG Technology (24N) Ltd Body Corporate UAE 100 100 DUGEO SoluEons (India) Private Limited Body Corporate India 100 100 DUG DO Brasil LTDA Body Corporate Brazil 100 80 Basis of preparaEon The consolidated enEty disclosure statement (CEDS) has been prepared in accordance with subsecEon 295(3A)(a) of the CorporaEons Act 2001. The enEEes listed in the statement are DUG Technology Ltd and all the enEEes it controls in accordance with AASB 10 Consolidated Financial Statements.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 89 Directors’ Declaration In accordance with a resoluEon of the Directors of DUG Technology Ltd (the Company), we state that: In the opinion of the Directors: (a) the financial statements and notes of the Company and its subsidiaries (collecEvely the Group) are in accordance with the CorporaEons Act 2001, including: i. giving a true and fair view of the consolidated enEty’s financial posiEon as at 30 June 2026 and of its performance for the year ended on that date; and ii. complying with AccounEng Standards and CorporaEons RegulaEons 2001; and (b) the Consolidated EnEEes Disclosure Statement on page 88 is true and correct as at 30 June 2026; and (c) the financial statements and notes also comply with InternaEonal Financial ReporEng Standards as disclosed in Note 1; and (d) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaraEon has been made ader receiving the declaraEons required to be made to the directors by the Managing Director and AcEng Chief Financial Officer in accordance with secEon 295A of the CorporaEons Act 2001 for the financial year ended 30 June 2026. Dated at Perth on the 27th of August 2026. Signed in accordance with a resoluEon of the Directors. ________________________ Mark Puzey DIRECTOR
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 90 Independent Auditor’s Report
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 91 Ind Report
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 92 Independent Auditor’s Report
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 93 Corporate Governance Statement DUG Technology Ltd has established a strong governance framework and conEnues to be commi?ed to a high level of integrity and ethical standards in all its business pracEces. EffecEve and transparent corporate governance is of criEcal importance to DUG and its Board of Directors. The Board fully supports the intent of the Australian SecuriEes Exchange (ASX) Corporate Governance Council’s 4th ediEon of Corporate Governance Principles and RecommendaEons. The Corporate Governance Framework conEnues to evolve as it seeks conEnual improvement in the way it conducts its business. Further details on DUG’s governance principles can be found in the Company’s Corporate Governance Statement available at www.dug.com.
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 94 Shareholder Information The shareholder informaEon set out below is based on the informaEon recorded in the DUG Technology Ltd share register as at the 6th of August 2026. ORDINARY SHARES DUG has on issue 135,521,145 fully paid ordinary shares. VOTING RIGHTS The voEng rights a?ached to each class of equity security are set out below: 1. Ordinary shares – on a show of hands every member present at a meeEng in person or by proxy shall have one vote and upon a poll each share shall have one vote 2. OpEons and rights – no voEng rights ON MARKET BUY-BACK None. SUBSTANTIAL SHAREHOLDERS The following is a summary of the current substanEal shareholders pursuant to noEces lodged with the ASX in accordance with secEon 671B of the CorporaEons Act: Name Number of ordinary shares1 Percentage Regal Funds Management Pty Ltd 21,963,748 16.21% Dr MaRhew Gordon Lamont 21,390,967 15.89% Perennial Value Management Ltd 15,713,616 11.60% Acorn Capital Limited 6,796,818 5.02% 1 As disclosed in the last no8ce lodged with the ASX by the substan8al shareholder 2 The percentage set out in the no8ce lodged with the ASX is based on the total issued share capital of DUG at the date of interest
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 95 DISTRIBUTION OF SECURITIES HELD Analysis of number of ordinary shareholders by size of holding: Range of Fully Paid Shares Number of Investors Number of SecuriQes Percentage 1 - 1,000 1,029 535,441 0.40 1,001 - 5,000 950 2,536,546 1.87 5,001 - 10,000 366 2,801,229 2.07 10,001 - 100,000 413 11,894,087 8.78 100,001 Over 54 117,753,842 86.89 Total 2,812 135,521,145 100 Unmarketable parcels 194 21,152 TOP 20 LARGEST SHAREHOLDERS Ordinary Shareholders Fully paid Number Percentage HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 24,585,437 18.14 CITICORP NOMINEES PTY LIMITED 22,163,628 16.35 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 13,341,947 9.84 MR MATTHEW GORDON LAMONT 12,300,000 9.08 UBS NOMINEES PTY LTD 9,712,241 7.17 MS SHEILA TERESA LAMONT 8,200,000 6.05 MR CALAN LESLIE MCINTYRE <SCR MCINTYRE A/C> 3,230,000 2.38 WARBONT NOMINEES PTY LTD <UNPAID ENTREPOT A/C> 3,020,645 2.23 PALM BEACH NOMINEES PTY LIMITED 2,754,569 2.03 BNP PARIBAS NOMS PTY LTD 1,582,649 1.17 BNP PARIBAS NOMINEES PTY LTD <HUB24 CUSTODIAL SERV LTD> 1,461,811 1.08 THORNEY INTERNATIONAL PTY LTD 1,415,217 1.04 GRANDALBERO PTY LTD <THE THOMPSON FAMILY A/C> 1,263,481 0.93 LYTTON NOMINEES PTY LTD <LYTTON SUPER FUND A/C> 1,021,418 0.75 SANDHURST TRUSTEES LTD <MILLEX ETHICAL FUND A/C> 1,000,000 0.74 KAYNADAN PTY LTD <THE BOWER FAMILY A/C> 890,510 0.66 FIRST SAMUEL LTD ACN 086243567 <ANF ITS MDA CLIENTS A/C> 771,523 0.57 NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT> 686,052 0.51 SARODA HOLDING PTY LTD <SCIARRONE FAMILY S/F A/C> 670,000 0.49 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 601,515 0.44 TOP 20 HOLDERS OF ORDINARY FULLY PAID SHARES (Total) 110,672,643 81.66
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 96 Company Directory DIRECTORS Francesco Sciarrone Independent Non-ExecuEve Chairman Ma?hew Lamont Managing Director Louise Bower Independent Non-ExecuEve Director Mark Puzey Independent Non-ExecuEve Director David Monk Independent Non-ExecuEve Director COMPANY SECRETARY Jacqueline Barry COUNTRY OF INCORPORATION Australia COMPANY REGISTRATION NUMBER 169 944 334 LEGAL FORM Limited Company REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS 76 Kings Park Road West Perth WA 6005 AUSTRALIA +61 8 9287 4100 AUDITORS Grant Thornton Audit Pty Ltd Level 43 Central Park 152-158 St Georges Terrace Perth WA 6000 AUSTRALIA SHARE REGISTRY Computershare Investor Services Level 11, 172 St Georges Terrace Perth WA 6000 AUSTRALIA ASX CODE ASX CODE: DUG
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DUG TECHNOLOGY LTD | ABN 99 169 944 334 | FY26 ANNUAL REPORT 97