Annual report
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ASX Release SenSen Networks Limited ACN 121 257 412 www.sensen.ai +61 (0)3 9417 5368 Melbourne: Suite 2, 570 City Road, South Melbourne VIC 3205 Sydney: 3 Spring Street, Sydney NSW 2000 Las Vegas: Office #8, International Innovation Center, 300 South 4th St, Suite 180, Las Vegas NV 89101 27 August 2026 2026 Annual Report Melbourne, Australia – Live Awareness AI solutions provider SenSen Networks Limited (ASX:SNS) (“SenSen” or “the Company”) provides the attached Annual Report for the year ended 30 June 2026. This release is approved by the Board of SenSen Networks Limited. For further information, please contact: Leanne Ralph Company Secretary Email: info@sensen.ai About SenSen Networks Limited SenSen Networks Limited (ASX: SNS) is a leading Physical AI company. Its flagship platform, SenDISA® – The Physical AI Operating System for Government – transforms data from multiple sensing technologies into actionable intelligence, court-grade evidence and automated operational workflows. Designed as a sensor-agnostic platform, SenDISA integrates computer vision, ANPR, GPS, RFID, LiDAR, acoustic sensing and other contextual information to help governments understand, monitor and manage complex physical environments. Today, SenDISA powers applications across parking management, curb side management, heavy vehicle compliance, road safety, environmental regulation and smart mobility for government agencies across the globe. The Company’s AI-driven technology also generates substantial annual savings for major fuel retail brands operating across Australia. For more information, please visit www.sensen.ai. Disclaimer – forward-looking statements This release may contain forward-looking statements. These statements are based upon management’s current expectations, estimates, projections and beliefs regarding future events in respect to SenSen's business and the industry in which it operates. These forward-looking statements are provided as a general guide and should not be relied upon as an indication or guarantee of future performance. The basis for these statements is subject to risk and uncertainties that might be out of control of SenSen Networks Limited and may cause actual results to differ from the release. SenSen Networks Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release.
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Annual Report For the year ended 30 June 2026
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C O R P O R A T E I N F O R M A T I O N SenSen Networks Limited ACN 121 257 412 Directors Mr Mark Brayan, Non-Executive Director and Chair Dr Subhash Challa, Managing Director and CEO Mr David Smith, Non-Executive Director Ms Jennifer Martin, Non-Executive Director Company Secretary Ms Leanne Ralph Chief Financial Officer Mr Glen Dymond Registered Office and Principal Place of Business 2/570 City Road, South Melbourne, VIC 3205 Telephone: +61 3 9417 5368 Share Register Automic Pty Limited Level 5, 126 Phillip Street, Sydney NSW 2000 Australia: 1300 288 664 Overseas callers: +61 2 8072 1400 Internet: www.automicgroup.com.au Stock Exchange Listing SenSen Networks Limited shares are listed on the Australian Securities Exchange (ASX Code: SNS). Solicitors Thomson Geer Lawyers Level 16, Waterfront Place, 1 Eagle Street Brisbane QLD 4000 Auditors Hall Chadwick Level 40, 2 Park St Sydney NSW 2000 Bankers Commonwealth Bank of Australia Level 5, 435 Bourke Street Melbourne VIC 3000 Website www.sensen.ai SenSen Annual Report 2026 sensen.ai 02
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C O N T E N T S Letter from the Chair 04 Letter from the Managing Director and CEO 06 Corporate Values 08 Key Metrics 09 Directors’ Report 13 Auditor’s Independence Declaration 36 Consolidated Statement of Profit or Loss & Comprehensive Income 37 Consolidated Statement of Financial Position 38 Consolidated Statement of Changes in Equity 39 Consolidated Statement of Cash Flows 40 Notes to the Financial Statements 42 Consolidated Entity Disclosure Statement 79 Directors’ Declaration 80 Independent Auditor’s Report 81 FY26 Highlights 86 SenSen Annual Report 2026 sensen.ai 03 ASX Additional Information 10
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L E T T E R F R O M T H E C H A I R Dear Fellow Shareholders, FY26 was a year in which SenSen reshaped the foundations of its business. Having led the Company to profitability in FY25, our focus this year turned to the quality and durability of our growth, building a larger base of recurring revenue, deepening our relationships with existing customers, and extending our reach into new markets. The market we serve is moving in our direction. Independent research from Gartner now points to multimodal, AI-powered sensing – the fusion of data drawn from many cameras and sensors – as one of the defining technology shifts of the decade. Our SenDISA platform was built for precisely this task: extracting meaning from real-world visual and other sensor data at scale. SenSen’s vision remains - A world where cities leverage intelligent technology to create safer, more efficient, and sustainable urban environments for all citizens. Consistent with the vision, SenSen recently extended its SenDISA platform into the environmental enforcement market for the first time, trialing intelligent vehicle noise enforcement with EPA Victoria and prominent local councils in the state of Victoria, Australia. The engagement provides a pathway into a significant new market opportunity. We strengthened the underlying business in FY26. Annualised recurring revenue, a key metric for us, grew to $11.7 million, up 16.7% on the prior year, cash receipts reached a record $16.0 million and customer churn was just 5.6%; evidence that once SenSen is embedded in a customer’s operations, it tends to stay. Revenue for FY26 finished slightly ahead of the prior year due to a few projects being delayed by disruptions to global supply chains and EBITDA of $2.0 million was 23.6% up on last year. We continue to add to the Company’s governance with the appointment of Leanne Ralph as an experienced Company Secretary and continual focus on improvements to cyber security, risk and compliance and workplace health and safety. On behalf of the Board, I thank our Managing Director and CEO, Dr Subhash Challa, his executive team and every member of the SenSen team for their expertise and persistence. I also thank you, our shareholders, for your continued support. Our business is more durable than a year ago, and better positioned for the opportunities ahead. Thank you for your ongoing support. Sincerely, Mr Mark Brayan, Chair SenSen Annual Report 2026 sensen.ai 04
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S E N S E N A N N U A L R E P O R T 2 0 2 6 SenSen Annual Report 2026 sensen.ai 05 A solar-powered mobile trailer deployed for the National Heavy Vehicle Regulator safety and compliance program. Portable solar and battery powered enforcement technology monitoring council streets for compliance. A fixed multi-sensor unit pairing cameras with acoustic sensors. A solar-powered fixed pole monitoring a regional road corridor. SenFORCE vehicle. The roof-mounted camera bar brings mobile enforcement to standard fleet cars.
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L E T T E R F R O M T H E M A N A G I N G D I R E C T O R A N D C E O Dear Fellow Shareholders, FY26 was, above all, a year of execution. Not everything we achieved made headlines, nor should it. Much of the important work of building a company happens quietly – delivering for customers, improving products, strengthening recurring revenues, solving problems when things do not go to plan, and preparing the business for the opportunities ahead. That is what FY26 was about. Perhaps the most important change during the year was in the quality of our revenue. For many years, a significant part of SenSen’s revenue came from upfront project deployments. These projects remain important, but by their nature they can be lumpy and their timing difficult to predict. We have therefore been deliberately building a business with a larger recurring-revenue base – through software maintenance, subscriptions and, increasingly, usage-based revenues that grow as our customers use our platform more. During FY26, usage revenue grew 67.9%, annualised recurring revenue increased 16.7% to $11.7 million, and customer churn remained very low at 5.6%. Customer cash receipts reached a record $16.0 million. Combined with our FY26 gross margin of 81%, these numbers are important. They tell us that SenSen is gradually becoming the kind of business we have been working towards for many years: one with deeper customer relationships, predictable recurring revenues and attractive margins. Global supply-chain disruptions, particularly around the NVIDIA-based hardware used in many of our deployments, combined with more cautious customer spending, delayed several projects in Singapore and Australia moving some upfront revenue that we had expected in FY26 into FY27. Our North American operations were largely unaffected. North America continued to be an important growth engine for SenSen, largely through our channel partners. During the year we secured five new city contracts – Pittsburgh Parking Authority, Toronto Exhibition Place, Birmingham, Kitchener and Mississauga – taking our Smart City customer base in the region to 27. Four of these new deployments are already live, with Birmingham expected to follow shortly. In Australia, our fuel-retail business continued to grow, with Ampol and other brands adding sites during the year. More importantly, our technology is solving a very real problem for these customers, helping them recover several million dollars in otherwise lost fuel revenues. We are equally pleased by the customers who chose to stay with us. The multi-year renewals with Las Vegas, Cairns, Ipswich and Newcastle, among others, are particularly meaningful. Winning a customer is important. Having that customer renew after experiencing our technology and service is an even stronger validation that we are delivering what we promised. FY26 also saw us enter new markets. We completed our first Smart City deployment in India, supporting Pune Rural Police during a major international event, and we are now building a pipeline from that initial deployment. Closer to home, we commenced our first local-government trials in metropolitan Melbourne with Darebin and Port Phillip, together with another trial in Western Australia. More recently, we confirmed a new SenSen Annual Report 2026 sensen.ai 06
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L E T T E R F R O M T H E M A N A G I N G D I R E C T O R A N D C E O commercial partnership with EPA Victoria to trial intelligent vehicle-noise enforcement technology. Each of these may begin as a trial, a project or a single deployment. But that is how many of SenSen’s long- term customer relationships began. Our job now is to turn these footholds into enduring businesses. Behind all of this sits the technology platform we have spent many years building. During FY26 we introduced SenPIC, our low-cost, rapidly deployable fixed enforcement camera that complements our mobile enforcement solutions. We launched SenIQ, allowing customers to interact conversationally with their data and extract insights from years of historical information. And we introduced SenSCAN MLPR, a mobile licence- plate recognition solution designed for regional councils and private operators, opening another addressable market for SenSen. Being recognised in Gartner’s 2026 emerging- technology research was encouraging and validating. Recognition is welcome, but ultimately technology earns its value only when customers use it to solve real problems. That remains our measure of success. After many years of building SenSen, we continue to believe that our greatest opportunity lies in bringing intelligence to the physical world. Cities generate enormous amounts of information through cameras, sensors and other infrastructure. Our task is to turn those individual observations into useful understanding – and that understanding into better decisions, safer communities and more efficient cities. That opportunity is much larger today than when we started. We want to acknowledge the people behind these results. Our thanks to Justin Owen, who provided stability and leadership to our finance function during the first half of the year, and to Glen Dymond, who joined us as CFO in January and has quickly become an important member of our leadership team. We thank our Chair and Board for both their support and holding us to high standards of governance and performance. And above all, we thank the SenSen team. Building a technology company across multiple countries and markets requires persistence, patience and an enormous amount of work. Our people continued to deliver through the inevitable challenges that arise and we are deeply grateful to them. We enter FY27 with a larger recurring-revenue base, contracts already secured and moving into delivery, new products entering the market, and growing opportunities across North America, Australia and Asia. We will continue to strengthen the foundations of the business, create technology that customers genuinely value, and convert that value into sustainable growth. Thank you for your continued support and belief in SenSen. Sincerely, Dr Subhash Challa, Managing Director and CEO SenSen Annual Report 2026 sensen.ai 07
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C O R P O R A T E V A L U E S Integrity, ingenuity and excellence, and the Live Awareness Platform that carries them into every customer deployment. Integrity – Always doing the right thing and bring this value into all customer and employee relationships. Ingenuity – Solve problems considered impossible by our customers through innovation. Excellence – Deliver solutions and service that exceed our customer expectations. C O R P O R A T E I D E N T I T Y The Live Awareness Platform. Corporate Behaviour We are relentless in our pursuit of excellence and turning what seem like impossible problems into We do this by listening to the issues faced by customers, working intensely with them to resolve their pain points, and building inventions that work based on our deep understanding of AI, Machine Learning, Deep Learning and Data Fusion. Corporate Culture Our culture of constant reinvention is made possible by the ability and eagerness of our people to innovate and progress while strengthening relationships and commercial outputs. The conventional does not serve Unafraid of taking risks and learning from mistakes, we are ‘ingenious by design’ – a state of constant evolution as demonstrated by our many world-firsts. We are anti-fragile, our every setback made us come back stronger. SenSen Annual Report 2026 sensen.ai 08 working solutions. us, neither our customers nor staff.
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F Y 2 6 H I G H L I G H T S SenSen Annual Report 2026 sensen.ai 09 01 C O R E E N F O R C E M E N T S C A L E D North America is the growth engine Five new city wins (Pittsburgh, Toronto Exhibition Place, Birmingham, Kitchener and Mississauga) take region to 27 Smart City customers. Renewals locked in for five years Las Vegas, Cairns, Ipswich and Newcastle contracts all extended. Fuel retail scaling in Australia 54 new sites. $2.5m+ recovered for customers in FY26. 02 N E W A P P L I C A T I O N S O N T H E S A M E P L A T F O R M Environment protection opened EPA Victoria signed in August 2026, adding a sixth application to the platform. Six council-facing applications now run on SenDISA Parking and compliance, local laws, asset management, roads and infrastructure, waste, and environment. One engine, one back office, one audit trail. 03 N E W G E O G R A P H I E S O P E N E D First India Smart City deployment Pune Rural Police, Pune Grand Challenge Tour 2026. First Victorian local-government trials Darebin and Port Phillip, plus a further trial in Western Australia. 04 R E V E N U E M O D E L T R A N S I T I O N I N G Recurring revenue now 69% of total Up from 63% in FY25. The transition to more recurring platform revenue and less lumpy upfront revenue continues. Annualised Recurring Revenue up to $11.7M, up 16.7% year on year Customer contract lengths averaging around five years, with high retention and high margins.
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K E Y M E T R I C S $15.4m Revenue 0.2% YoY Revenue ($'000) 10,796 12,144 15,359 15,393 FY23 FY24 FY25 FY26 $12.5m Gross Profit 3.0% YoY Gross Profit ($'000) 7,482 8,777 12,142 12,507 FY23 FY24 FY25 FY26 $2.0m EBITDA 23.6% YoY EBITDA ($'000) (5,439) (1,672) 1,620 2,003 FY23 FY24 FY25 FY26 $16.0m Customer Cash Receipts 10.1% YoY Customer Cash Receipts ($'000) 11,245 12,440 14,540 16,003 FY23 FY24 FY25 FY26 All figures in $'000 unless stated. FY23 to FY26 audited results. SenSen Annual Report 2026 sensen.ai 10
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93% 93% 88% 89% 94% K E Y M E T R I C S $(0.2)m Operating Cashflow 111.9% YoY Operating Cash Flow ($'000) (4,784) (1,272) 1,694 (202) FY23 FY24 FY25 FY26 $11.7m ARR1 16.7% YoY ARR ($'000) 7,446 8,485 10,055 10,581 11,730 Jun -24 Dec -24 Jun -25 Dec -25 Jun -26 111% NRR2 12.0% YoY NRR Jun -24 Dec -24 Jun -25 Dec -25 Jun -26 94% GRR3 6.0% YoY GRR 1. ARR – Annualised Recurring Revenue consists of contracted recurring maintenance and usage revenue, calculated at period end. 2. NRR – Net Revenue Retention is the percentage of recurring revenue retained from existing customers including expansion/upsells. 3. GRR – Gross Revenue Retention is the percentage of recurring revenue retained from existing customers excluding expansion/upsells. SenSen Annual Report 2026 sensen.ai 11 106% 110% 123% 114% 111% Jun -24 Dec -24 Jun -25 Dec -25 Jun -26
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Directors’ Report
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D I R E C T O R S ’ R E P O R T The directors present their report, together with the financial statements of the consolidated entity (referred to hereafter as “the Group”) consisting of SenSen Networks Limited (“the Company”) and the entities it controlled at the end of, or during, the year ended 30 June 2026. Directors and Company Secretary The following persons were directors of SenSen Networks Limited during the whole financial year and up to the date of this report, unless noted: Mr Mark Brayan Non-Executive Director and Chair Dr Subhash Challa Managing Director and CEO Mr David Smith Non-Executive Director Ms Jennifer Martin Non-Executive Director Mr Mark Brayan Appointed 1 May 2024 Non-Executive Director and Chair Qualifications: MBA, Australian Graduate School of Management. First-Class Honours Bachelor of Surveying, University of New South Wales. Experience: Mark is a proven leader of technology businesses including AI, software, services and outsourcing in his various roles as CEO, Managing Director and Non- Executive Director in public and private companies. Mark has M&A, strategy, investor relations and capital markets experience and a successful track record with technology company founders. Mark is currently a director of Integrated Research Limited (ASX:IRI), Chair and Director of Shorthand Holding Pty Ltd. There were no other listed company directorships in the last three years. Special responsibilities: Chair of the Board of Directors since 1 May 2024. Member of the Audit and Risk Committee since 1 May 2024 Member of the Nomination and Remuneration Committee since 26 August 2025. Interest in shares and options: 5,923,777 Ordinary shares and 2,900,000 options over ordinary shares. 13 sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Dr Subhash Challa Appointed 13 October 2017 Managing Director and CEO Qualifications: B. Tech (Electrical and Electronics Engineering), JNTU College of Engineering, Hyderabad, India. PhD (Aerospace and Electronic Systems, Signal Processing), Queensland University of Technology. Subhash founded SenSen Networks in 2007 as a spin-off from the University of Technology Sydney where he was Professor of Computer Systems. Subhash is a world-leading authority in data fusion specialising in the analysis and fusion of video and sensor data and is a regular speaker at international industry and academic conferences, and is a charter member of entrepreneurship organisation TIE. Born and raised in Hyderabad, India, Subhash received his PhD from Queensland University of Technology, Brisbane, Australia in 1999. Part of his PhD studies were conducted at Harvard University (1997). He started his professional career as a Research Fellow at the University of Melbourne in 1998 where he led a number of defence industry projects. Subhash received the Tan-Chin Tau Fellowship in Engineering from Nanyang Technological University in Singapore (2003) where he worked with NTU researchers on traditional and underwater robotics. He holds a Bachelor’s Degree in Electrical Engineering from JNTU, Kukatpally, India. Subhash was the Professor of Computer Systems Engineering at the University of Technology Sydney from 2004-2007 where he mentored several doctoral students to completion in the areas of Bayesian Estimation Theory, Object Tracking, Sensor Networks, Computer Vision, License Plate Recognition, Facial Recognition and Data Fusion. He has co-authored more than 150 papers and is co-author of the reference text, ‘Fundamentals of Object tracking’ Cambridge University Press, 2011, unifying disparate advances in estimation theory and object tracking into a recursive Bayesian framework. Subhash left his successful career in academia to join SenSen full-time as CEO in January 2012. He has led the development of the company’s video-IoT platform SenDISA and pioneered applications in diverse market segments. As the CEO and CTO of the company, he led SenSen to win a number of innovation awards including iAwards Victoria for SenFORCE and SenSIGN products in 2014 and 2017 respectively; Parking Australia Innovation Award in 2015; and Security Industry Innovation Award in 2014. Subhash is a member of the Australian Institute of Company Directors (MAICD). Subhash has no other current or previous listed company directorships in the last three years. Member of the Audit and Risk Committee until 26 August 2025. 110,545,360 Ordinary shares, 5 performance rights and nil options over ordinary shares. Experience: Special responsibilities: Interest in shares and options: 14sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Mr David Smith Appointed 18 August 2011 Non-Executive Director Qualifications: B Econ, The University of Sydney Dip Mgmt – Exec MBA, Australian Graduate School of Management Experience: David is Managing Director and CEO of Vigo Connect, the Australian operating entity of Vigocare, an AI-powered rhythm monitoring healthtech company, and holds Non-Executive Director roles at 20Cube Logistics and RAW Capital Partners (UK). David served as Executive Director and COO of SenSen Networks from 2017 to 2024, having played a central role in listing the company on the ASX. Previously an investment banker with more than 25 years of experience across capital markets and M&A globally, David was consistently ranked among Australia’s Top 20 investment bankers and raised more than $4 billion for corporate clients. With an extensive background in advising companies across technology, healthcare, financial services, resources, and logistics, he has been integrally involved in the evolution of numerous emerging companies into large, successful businesses. David is a member of the Australian Institute of Company Directors (MAICD). David has no other current or previous listed company directorships in the last three years. Special responsibilities: Member of the Audit and Risk Committee Chair of Nomination and Remuneration Committee since 26 August 2025. Interest in shares and options: 22,285,416 Ordinary shares and nil options over ordinary shares. Ms Jennifer Martin Appointed 28 January 2025 Non-Executive Director Qualifications: Graduate of the Australian Institute of Company Directors (GAICD) Chartered Accountant Bachelor of Accounting, Monash University Experience: Jenny brings significant experience in financial management and governance of technology and professional services organisations, along with cross functional leadership of legal, people and culture, information technology and cyber security teams. Jenny is Incoming Chief Financial Officer at Integral Diagnostics Limited (ASX:IDX), having commenced on 10 August 2026 and formally taking on the role effective 5 October 2026. Previous to this, she was Chief Financial Officer and Chief Operating Officer of Citadel Edge, a privately owned technology company previously listed on the ASX as The Citadel Group Limited (ASX:CGL). Prior to this, she was CFO and Company Secretary at Barristers’ Chambers Limited and Money3 Limited (now Solvar) (ASX:SVR), and held the positions of Group Financial Controller and Company Secretary at Southern Cross Media Group Limited (ASX:SXL). Jenny commenced her career at Deloitte. Special responsibilities: Chair of the Audit and Risk Committee since 25 February 2025 Member of Nomination and Remuneration Committee since 26 August 2025 Interest in shares and options: 1,448,279 Ordinary shares and nil options over ordinary shares. 15sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Ms Leanne Ralph Appointed 8 July 2025 Company Secretary Qualifications: B Bus, UTS Fellow, Governance Institute of Australia Graduate of the Australian Institute of Company Directors (GAICD). Experience: Leanne is a highly experienced Company Secretary with a demonstrated history of working with ASX listed companies across a diverse range of industries. A strong business professional with a Bachelor of Business with Accounting & Finance Majors from University of Technology, Sydney. Leanne was the founder and director of Boardworx Australia Pty Ltd until her sale of the business in July 2017. She currently provides Company Secretarial services to a select group of ASX listed entities in addition to SenSen Networks Limited, including Integrated Research Limited, Appen Limited, and ImpediMed Limited, and private groups, Estia Health and Alspec. Leanne was previously an independent non- executive director of Dicker Data Limited. Special responsibilities: Nil. Interest in shares and options: Nil. 16sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Directors’ equity participation and other relevant interests As of the date of this report, directors have relevant interests in ordinary shares, options and performance rights to subscribe for ordinary shares in SenSen Networks Limited, as outlined in the following table. Each option entitles the holder to subscribe for one ordinary share of SenSen Networks Limited subject to the holder paying the exercise price. Each performance right entitles the holder to receive one ordinary share upon certain vesting conditions being met. Non-Executive Director Ordinary Shares Performance Rights Options Mark Brayan 5,923,777 - 2,900,000 David Smith 22,285,416 - - Jennifer Martin 1,448,279 - - Executive Director Subhash Challa 110,545,360 5 - Meeting of directors The number of meetings of the Company’s board of directors and each board committee held during the year ended 30 June 2026, and the number of meetings attended by each director were: Director Board of Directors Audit and Risk Committee Nomination and Remuneration Committee Number eligible to attend Attended Number eligible to attend Attended Number eligible to attend Attended Mark Brayan 15 15 4 4 4 4 David Smith 15 15 4 4 4 4 Jennifer Martin 15 15 4 4 4 4 Subhash Challa 15 15 1 1 - - Principal activities The principal activities of the group during the year were to develop and sell SenDISA platform-based products and services into Smart Cities in North America, Asia and Australia. Smart Cities services include civic compliance, traffic data and law enforcement solutions to city councils, national parks, road authorities and transit agencies across the globe as well as anti-fuel theft solutions for fuel retailers. Dividends – SenSen Networks Limited No dividends have been declared or paid in the 2026 financial year (2025: no dividend declared or paid). 17sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’R E P O R T Review of operations for the year Operating Results 1. EBITDA is a non-IFRS measure and is calculated by adding back depreciation, amortisation, interest and tax from net profit after tax. Commentary • Revenue was slightly up compared to the prior corresponding period (PCP) with upfront revenue of $4,777,977 being 17.0% lower than PCP; recurring revenue of $10,614,954 being 10.5% higher than PCP. Usage revenue was 67.9% higher than PCP. • This change of revenue mix reflected a transition to more recurring (maintenance and usage) revenue and less lumpy, upfront project revenue; a steadier, more predictable, higher-quality earnings base. • Other income mainly consists of R&D grant revenue and has increased in FY26 due to greater R&D resources utilised for continued developments of the group’s SenDISA platform. • Gross margin increased from 79.1% to 81.3% due to the lower proportion of upfront revenue compared to PCP • Operating expenses increased due to investment in strengthened executive, sales and technical support roles to support growth in North America and Singapore, higher contractor costs to deliver customer projects and greater investment in information technology and cyber-security resources. • The Group continued to improve its profitability in FY26 with significant EBITDA, EBIT and NPAT growth achieved in FY26. 18 FY26 $ FY25 $ Movement $ Movement % Revenue 15,392,931 15,359,069 33,862 0.2% Cost of sales and providing service (2,886,022) (3,216,439) 330,417 10.3% Gross profit 12,506,909 12,142,630 364,279 3.0% Gross profit % 81.3% 79.1% 2.2% Other income 3,012,331 2,017,111 995,220 49.3% Operating expenses (13,516,256) (12,539,750) (976,506) (7.8%) EBITDA1 2,002,984 1,619,991 382,993 23.6% Depreciation and amortisation (539,594) (723,936) 184,342 25.5% EBIT 1,463,390 896,055 567,335 63.3% Net finance costs (458,544) (380,766) (77,778) (20.4%) Net profit before tax 1,004,846 515,289 489,557 95.0% EBITDA1 before share-based payments expense 1,930,548 3,008,245 (1,077,697) (35.8%) sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Operating Expenses FY26 $ FY25 $ Movement $ Movement % Administration expense 852,813 1,058,402 (205,589) (19.4%) Advertising & marketing expense 746,518 633,727 112,791 17.8% Other expenses 2,294,178 1,637,503 656,675 40.1% Occupancy cost 179,980 218,853 (38,873) (17.8%) Staff cost 7,529,894 6,051,286 1,478,608 24.4% Technology costs 1,985,309 1,551,725 433,584 27.9% Share-based payments expense (72,436) 1,388,254 (1,460,690) (105.2%) Total Operating Expenses 13,516,256 12,539,750 976,506 7.8% • Administration expenses were lower than PCP due to a reduction in insurance and travel costs. • Advertising & marketing expenses were higher than PCP due to greater investment in marketing activities including conferences and trade marketing activities to drive revenue growth. • Other expenses were higher than PCP due to higher consultant spend to cover vacant senior roles and higher contractor costs to deliver customer projects. • Staff costs were higher than PCP due to strengthened executive roles, and additional sales and technical support roles to support growth in North America and Singapore. • Technology costs were higher than PCP due to increased cloud and data costs from higher recurring revenue and customer growth, and higher cyber security costs to strengthen the Company’s cyber security. • Share-based payments expense was a credit writeback in FY26 reflecting the final year of the three-year LTI plan, higher amounts accrued in prior years and only the service period component being satisfied in FY26. Financial position FY26 $ FY25 $ Movement $ Movement % Current assets 8,891,498 7,981,896 909,602 11.4% Current liabilities (5,980,084) (6,128,884) 148,800 2.4% Net current assets 2,911,414 1,853,012 1,058,402 57.1% Total tangible assets 9,127,109 8,200,295 926,814 11.3% Net tangible assets 3,279,513 2,270,001 1,009,512 44.5% Operating cash flow FY26 $ FY25 $ Movement $ Movement % Cash from / (used in) operating activities (201,882) 1,694,782 (1,896,664) 111.9% Following the significant improvement in operating results, the Group’s net tangible asset position has significantly improved by 44.5% from $2,270,001 to $3,279,513. Further to this the Group’s net current asset position has also Customer cash receipts were $16,002,799 in FY26, up 10.1% on PCP of $14,540,282. For FY26, operating cash flow was an outflow of $201,882. This was primarily due to staff payments being impacted by an additional pay cycle in H1 FY26, which was a timing difference only. Excluding this payment, FY26 operating cash flow would have been approximately $400,000. 19 improved by 57.1% from $1,853,012 to $2,911,414. sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Shares The following shares were issued during the year: Number of Shares Balance as of 1 July 2025 793,037,475 Share issued under long term incentive plan 36,894,860 Balance as of 30 June 2026 829,932,335 Shares under option Unissued ordinary shares of SenSen Networks Limited under option at the date of this report are as follows: Grant date Expiry date Exercise price ($) Number under option 23 Dec 24 23 Dec 27 0.040 1,500,000 23 Dec 24 23 Dec 27 0.075 800,000 23 Dec 24 23 Dec 27 0.100 600,000 Total 2,900,000 Significant changes in the state of affairs There were no other significant changes in the state of affairs of the Group in the year. Events after the Reporting Period On 24 August 2026, the Company announced that it had signed a two -year contract with the Environment Protection Authority (EPA) Victoria, with a total contract value of approximately $889,000, to trial an intelligent vehicle noise (acoustic camera) enforcement solution. The trial involves the deployment of seven acoustic enforcement cameras across Victorian noisy vehicle hotspots, extending the Company's SenDISA platform into environmental enforcement. No other significant events took place after the reporting period that were outside of the ordinary course of business. Likely developments and review of operations While the Board focuses on improving the Group’s financial performance, no significant developments outside the ordinary course of business are expected at this time. 20sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Material business risks SenSen Networks Limited is subject to risks, a number of which may have a material adverse effect on operating and financial performance. It is not possible to identify every risk that could affect the business or shareholders and the actions taken to mitigate these risks cannot provide absolute assurance that a risk will not materialise or have a material adverse effect on business strategies, assets or future performance of SenSen. A non-exhaustive list (in no particular order) of material risks and relevant mitigation strategies implemented by the Group are set out below. RISK DESCRIPTION AND POTENTIAL IMPACT STRATEGIES USED TO MITIGATE THE RISK Cyber security and data breach SenSen’s customer-facing products, corporate systems and offshore development environments are exposed to persistent and evolving cyber threats including phishing, ransomware, supply- chain compromise and unauthorised access to source code and customer data. A material cyber or privacy incident could disrupt customer operations, result in the loss of confidentiality or integrity of customer or personal information, trigger notification obligations under the Privacy Act 1988 (Cth) and equivalents in the jurisdictions in which we operate, damage customer trust and brand, and expose the Group to civil penalties, litigation and remediation costs. The Group’s products depend on artificial intelligence and computer vision models operating in commercially and socially sensitive settings. The regulatory environment for AI is evolving rapidly, with the EU AI Act, Australia’s Voluntary AI Safety Standard, and emerging obligations in other jurisdictions creating both requirements and uncertainty. Failure of a model to perform to specification, algorithmic bias, or an inability to demonstrate transparency and explainability could impair customer outcomes, breach contractual performance requirements, attract adverse regulatory or media attention, and reduce competitive positioning. Non-compliance with emerging AI regulation could restrict access to markets or expose the Group to significant financial penalties. The Group derives a material portion of revenue from a limited number of enterprise and government customers, many of which are procured through extended sales cycles typical of the sectors in which we operate. The loss of a significant customer, non- renewal of a material contract, or a delay in a strategic tender could adversely impact revenue, cash flow, and reported earnings in a given period. Extended sales cycles can also introduce forecasting risk. The Group operates in a growth phase in which it continues to invest in research and development, product commercialisation and international expansion. This investment is funded through operating SenSen maintains an information security management system aligned with ISO/IEC 27001:2022 and the Australian Cyber Security Centre Essential Eight. Controls include multi-factor authentication on all external-facing and privileged access, endpoint detection and response, network segmentation, immutable backups, role-based access to source code repositories, and continuous vulnerability scanning. An incident response plan is documented and tested through tabletop exercises. The Information Security Manager reports to the Audit & Risk Committee on cyber security matters. Artificial intelligence – model risk, ethics and regulation AI governance is integrated within our Risk Management Framework. Models are subject to bias and fairness testing, documented via model cards, monitored in production for drift, and retrained on cadence. Human oversight is retained for higher-impact decisions. Customer concentration and long sales cycles The Group actively pursues customer, geographic and sector diversification, maintains close customer relationships supported by a customer success function, tracks customer concentration and pipeline metrics at Board level, and pursues multi-year contract structures where commercially available. Bid governance, pricing discipline and disciplined go/no-go decisions apply to material pursuits. 21sensen.aiSenSen Annual Report 2026 Capital, liquidity and going concern The Board and Audit & Risk Committee receive rolling 13-week cash flow forecasts and 15-month strategic cash projections. The Group maintains multiple
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D I R E C T O R S ’ R E P O R T Material business risks RISK DESCRIPTION AND POTENTIAL IMPACT STRATEGIES USED TO MITIGATE THE RISK Research & Development Tax Incentive The Group engages external R&D tax advisors and maintains contemporaneous documentation of eligible activities. Intellectual property protection The Group maintains an IP register, files patents and trademarks where warranted, enforces employment and contractor IP assignment, and applies role-based access control to source code repositories. Freedom-to-operate reviews are undertaken on major product releases. Talent attraction and retention Compensation is benchmarked and includes equity participation for eligible employees, reinforcing retention. The Group invests in leadership development, succession planning for critical roles, engagement measurement, and initiatives to build capability in emerging AI disciplines. 22 cash flow, the R&D Tax Offset and, from time to time, debt or equity capital raisings. Adverse changes in operating performance, cash collection, or equity market conditions could reduce liquidity, require capital raising on unfavourable terms, and in a severe scenario, create going concern risk. Small-cap technology entities are particularly exposed to episodic equity market sentiment. The Group participates in the Australian R&D Tax Incentive, which delivers a refundable offset in respect of eligible R&D activities. Both AusIndustry and the Australian Taxation Office review the eligibility of activities and expenditure, and interpretive positions on software R&D have narrowed in recent years. An unfavourable AusIndustry or ATO position on the Group’s activities or expenditure could result in the disallowance or clawback of prior claims, penalties, and a material impact on cash flow. The Group’s competitive position depends on the protection and continued development of its proprietary software, algorithms, models and know-how. The Group also operates in fields with an active patent landscape and litigious participants. Loss, misappropriation, or infringement of the Group’s intellectual property could reduce competitive advantage and enterprise value. Conversely, a claim that the Group’s products infringe a third party’s intellectual property could give rise to litigation cost, injunctive relief, or royalty obligations. The Group’s success depends on attracting and retaining specialised engineering, product and commercial talent, particularly artificial intelligence, machine learning, data engineering and enterprise sales capability, in a competitive global labour market. The loss of key executives or the inability to attract critical capability could delay the Group’s product roadmap, reduce delivery capacity, and impair strategic momentum. The Group delivers customer projects that combine software, artificial intelligence models, hardware installation and integration with third-party systems including video management systems, camera hardware, cloud platforms and customer applications. Failure to deliver a project on time, on budget or to specification could result in service level breaches, cost overruns, revenue recognition delays and customer disputes. In field installation activity there is inherent workplace health and safety risk. banking relationships and active investor engagement. Capital planning is reviewed by the Board annually with quarterly refresh. sensen.aiSenSen Annual Report 2026 Customer project delivery Customer project delivery is managed with defined methodology, staged customer acceptance, and financial tracking. Change control, buffered scheduling, and cross-training reduce delivery risk. Field safety is managed via site-specific safe work method statements, mandatory personal protective equipment, and the use of qualified subcontractors.
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D I R E C T O R S ’ R E P O R T Material business risks RISK DESCRIPTION AND POTENTIAL IMPACT Reputation and public perception of artificial intelligence The Group maintains an AI ethics framework, engages with customers, regulators and industry bodies on emerging expectations, publishes clear documentation of AI system purpose and limitations, and applies principles of transparency and human oversight to material decisions. Climate change and sustainability The Group monitors the phased application of AASB S2 (Climate-related Disclosures) and is preparing for mandatory disclosure on the timing applicable to it as a Group 3 entity. Climate risks are integrated within the enterprise risk register and reviewed by the Audit & Risk Committee. Foreign currency and macroeconomic conditions The Group monitors foreign currency exposures, applies natural hedging where practicable, engages a foreign exchange advisor, and considers selective forward contracts for material contracts. Sensitivity analysis is performed as part of the annual budget. Geopolitical developments are reviewed by the Executive Leadership Team on a quarterly basis with material developments escalated to the Board. Environmental regulations The Group is subject to environmental regulations in Australia and in foreign countries where it operates. To the best of the Directors’ knowledge, all activities have been undertaken in compliance with these environmental regulations. The Group operates in Australia, North America and Asia. Each jurisdiction imposes evolving obligations in respect of privacy, data protection, cyber security, taxation, employment, sanctions and product regulation. A material regulatory breach in any jurisdiction could result in fines, remediation costs, restrictions on market access, and reputational harm. Continuous disclosure and other Australian securities law obligations impose particular attention on the timely release of material information. Public and stakeholder attitudes toward artificial intelligence, computer vision and biometric technologies continue to evolve, with heightened focus on privacy, surveillance, algorithmic decision making and civil liberties. A material adverse event, whether affecting the Group directly or the wider sector, could impair customer demand, delay tender awards, and affect the Group’s licence to operate. Managing stakeholder expectations is therefore essential to sustained growth. While the Group’s direct environmental footprint is modest given its software focus, the Group is exposed to climate-related transition risks, customer and investor expectations, evolving disclosure obligations, and energy prices affecting cloud infrastructure, and to a lesser extent physical risks affecting the Group’s customers and supply chain. Failure to progress climate readiness could over time constrain the Group’s ability to meet customer procurement requirements, participate in tenders, or attract capital. New mandatory disclosure standards will apply to the Group progressively. Portions of the Group’s revenues and costs are denominated in currencies other than the Australian dollar, including USD, EUR, GBP, CAD, SGD and INR. The Group is also exposed to macroeconomic and geopolitical conditions affecting the sectors and regions in which it operates. Adverse movements in foreign currency rates, interest rates, or macroeconomic conditions could affect reported margins and cash flow, and in the case of geopolitical developments, the availability of markets or supply chains. The Group maintains policies and procedures covering privacy, cyber, anti- bribery and corruption, sanctions, whistleblowing, continuous disclosure and workplace conduct. External local advisors support cross-border compliance. Training is delivered annually to all personnel. 23sensen.aiSenSen Annual Report 2026 Regulatory compliance and cross-border operations STRATEGIES USED TO MITIGATE THE RISK
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) The Directors are pleased to present the Company’s 2026 Remuneration Report which sets out remuneration information for the Company’s executive directors, non-executive directors and other key management personnel. (a) Details of Directors and Key Management Personnel during the year ended 30 June 2026 Mr Mark Brayan Non-Executive Director and Chair Mr Subhash Challa Managing Director and CEO Mr David Smith Non-Executive Director Ms Jennifer Martin Non-Executive Director Ms Leanne Ralph Company Secretary Mr Glen Dymond Chief Financial Officer (appointed 5 January 2026) Mr Christian Stevens Chief Financial Officer and Company Secretary (resigned 8 July 2025) The above Key Management Personnel (KMP) are the KMP of the Company, there are no other KMP in the Group. (b) Remuneration governance In August 2025 the Company implemented a Nomination and Remuneration committee to set and formulate: • The over-arching executive remuneration framework; • Operation of the incentive plans which apply to the executive team including key performance indicators and performance hurdles; • Remuneration levels of executive directors and the key management personnel; and • Non-executive director fees. The objective is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-term interests of the Company. (c) Executive remuneration policy and framework Remuneration levels are competitively set to attract the most qualified and experienced directors and executives. The remuneration structures outlined below are designed to attract suitably qualified candidates, reward the achievement of strategic objectives, and achieve the broader outcome of creating shareholder value. The Board ensures that executive reward satisfies the following criteria for good corporate governance practices: • competitiveness and reasonableness; • acceptability to shareholders; • performance linkage/alignment of executive compensation; • transparency; and • capital management. The executive remuneration framework has three components: • base pay and benefits, including superannuation; • short-term incentives (STIs); and • long-term incentives (LTIs) through participation in the SenSen Long Term Incentive Plan. The payment of STIs and LTIs is conditional on the achievement of set performance criteria as outlined in detail later in the Remuneration Report. 24sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) (d) Short-term Incentives (STIs) Short-term incentives are offered to SenSen executives to reward the achievement of short- term objectives including revenue and EBITDA growth targets. Short-term incentives may be settled by cash or equity. (e) Long-term incentives (LTIs) SenSen’s Long-Term Incentive Plan (“the Plan”) was approved by shareholders at the 2023 Annual General Meeting on 28 November 2023. The Plan is designed to provide long-term incentives for employees including directors, to deliver long-term shareholder returns. Under the Plan, participants are granted LTI shares and options which only vest if certain performance conditions are met. Participation in the Plan is at the Board’s discretion and no individual has a contractual right to participate in the Plan or to receive any guaranteed benefits. (f) Non-executive Director remuneration Non-executive Directors receive director fees plus superannuation contributions to a complying fund. Fees are reviewed annually by the Board taking into account comparable roles and market data. These fees are subject to the annual limit outlined below. (g) Shareholder approved Non-executive Directors’ fees pool The maximum annual aggregate non-executive directors’ fee pool limit is $400,000 and was approved by shareholders at the Company’s 2017 Annual General Meeting held on 30 November 2017. (h) Voting and comments made at the Company’s 2025 Annual General Meeting The FY25 Remuneration Report was adopted by shareholders at the Company’s Annual General Meeting held on 28 October 2025. There were no comments received at the Annual General Meeting. (i) Group’s performance and link to remuneration In considering the consequences of the Company’s performance on shareholder wealth the Board is focused on total shareholder returns. The Company’s Long-Term Incentive Plan is heavily performance based and the vesting of Key Management Personnel and staff options is dependent on the Company meeting specific revenue targets. The factors that are considered to affect shareholder return in the past 5 years are summarised below: 25 Measures 2026 $ 2025 $ 2024 $ 2023 $ 2022 $ Share price at end of financial year 0.024 0.029 0.022 0.050 0.073 Market capitalisation at end of financial year ($M) $19.9 $23.0 $17.1 $34.0 $47.5 Net Profit/(loss) for the financial year 1,004,260 449,972 (3,603,460) (7,409,184) (12,075,161) Director and Key Management Personnel remuneration 881,582 1,067,436 1,478,714 1,243,310 2,562,297 sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) (j) Details of Remuneration 1 Appointed on 5 January 2026. The remuneration shown here is for the period from 5 January 2026 to 30 June 2026. 2 Resigned as CFO and Company Secretary on 8 July 2025. 1 Appointed on 28 January 2025. The remuneration shown here is for the period from 28 January 2025 to 30 June 2025. 2 Resigned 19 November 2024. 3 Resigned as CFO and Company Secretary on 8 July 2025. 26 2026 Short-term Employee Benefits Post- Employment Benefit Long- term Share-based payments Total Performance related % Name Salary and Fees STI Super Long Service Leave Share Rights Salary sacrifice shares Total $ $ $ $ $ $ $ Directors M Brayan 90,000 - 10,800 - - - 100,800 - S Challa 367,272 - 32,727 - 90,909 - 490,908 18.5% D Smith 57,600 - 6,912 - - - 64,512 - J Martin 57,600 - 6,912 - - - 64,512 - Other key management personnel G Dymond (CFO)1 133,255 - 14,961 - - - 148,216 - C Stevens (CFO) 2 11,295 - 1,339 - - - 12,634 - Total 717,022 - 73,651 - 90,909 - 881,582 10.3% 2025 Short-term Employee Benefits Post- Employment Benefit Long- term Share-based payments Total Performance related % Name Salary and Fees STI Super Long Service Leave Share Rights Salary sacrifice shares Total $ $ $ $ $ $ $ Directors M Brayan 90,000 - 10,350 - 8,316 - 108,666 - S Challa 363,636 - 41,818 - 185,455 5,333 596,242 31.1% D Smith 57,600 - 6,624 - - - 64,224 - J Martin1 24,835 - 2,856 - - - 27,691 - Z Pasieczny2 22,171 - 2,550 - - - 24,721 - Other key management personnel C Stevens (CFO) 3 217,637 - 25,028 - - 3,227 245,892 - Total 775,879 - 89,226 - 193,771 8,560 1,067,436 18.2% sensen.aiSenSen Annual Report 2026
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) (k) Details of short-term incentives (STIs) The short-term incentives implemented for the following KMP in relation to FY26 were as follows: 1 Appointed on 5 January 2026. The STI amount has been pro-rated for the period to 30 June 2026. (l) Details of share-based payments The share rights in the above table were issued as part of compensation to key management personnel during the year ended 30 June 2025 and 30 June 2026. During the year, no options over ordinary shares were issued as part of compensation to key management personnel (2025: 2,900,000 options). Long-Term Incentive Scheme for FY24 – FY26 A long-term incentive (LTI) scheme was approved at the Company’s Annual General Meeting on 28 November 2023 for three consecutive years commencing year ending 30 June 2024. The number of shares to be issued will be calculated as follows: • An agreed percentage of eligible employee’s annual salary as at grant date; • Number of shares to be issued based on the 5-day Volume Weighted Average Price (VWAP) prior to the Company’s Financial Year results announcement. • A combination of an eligible employee’s length of service and the Company meeting internal measure targets in the most recent Financial Year. Internal measure targets are: ○ continual service period; ○ revenue hurdle; and ○ EBITDA excluding share-based payments hurdle. These hurdles are considered non-market vesting conditions and the probability of being met is taken into account when determining the expense to be recognised in each period. An additional LTI was provided by the Board under the terms of the Executive LTI Plan to reward executives when stretched Revenue and EBITDA excluding share-based payments were achieved. Shareholder approval was obtained for the issue of shares to Subhash Challa in relation to the 2025 EBITDA Stretch Target at the Company’s 2025 AGM. SenSen Annual Report 2026 27 KMP STI AMOUNT MEASURE WEIGHTING PERFORMANCE LEVELS STI ACHIEVED FOR THE YEAR STI FORFEITED FOR THE YEAR Glen Dymond1 15% of Salary: $19,6401 Revenue 50% • Threshold (50% payout): 90% of FY26 Board-approved revenue budget • Target (100% payout): 100% of FY26 Board-approved revenue budget • Below Threshold (<90%): Nil payout on this measure 0% 100% EBITDA 50% • Threshold (50% payout): 90% of FY26 Board-approved EBITDA budget • Target (100% payout): 100% of FY26 Board-approved EBITDA budget • Below Threshold (<90%): Nil payout on this measure 0% 100% sensen.ai
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) The rights to shares are consistent year on year and vest annually if the following targets are achieved by SenSen employees including KMP: 1 For the different relevant employees. The actual number of shares to be issued to each employee is based on the above fixed percentages of their salary at grant date. A summary of the value expensed, and the number of shares issued is detailed below. Share rights to these grants vest annually once the Company issues its Annual Report by the end of August. This report provides revenue and EBITDA (excluding share-based payments) results that will be used to determine current year vesting. The following tables outline the individual annual hurdles/targets required in order for annual share rights to be awarded and vest. Annual Hurdles/Targets Service Target The service target is assessed each year at 30 June. Revenue target • First vesting date – FY24 Revenue 25% greater than FY23 revenue, as recorded in the 30 June 2024 Annual Report • Second vesting date - Revenue 25% greater than hurdle revenue established at first vesting date (i.e. audited full year revenue for FY25) • Third vesting date - Revenue 25% greater than hurdle revenue established at second vesting date (i.e. audited full year revenue for FY26) • Continued service to vesting date Revenue stretch target • First vesting date – FY24 Revenue 35% greater than FY23 revenue, as recorded in the 30 June 2024 Annual Report • Second vesting date - Revenue 35% greater than hurdle revenue established at first vesting date (i.e. audited full year revenue for FY25) • Third vesting date - Revenue 35% greater than hurdle revenue established at second vesting date (i.e. audited full year revenue for FY26) • Continued service to vesting date Grants Target measures Financial Year Grant dates1 Service Revenue Target Revenue Stretch Target EBITDA excl. SBP Target EBITDA excl. SBP Stretch Target 2023/2024 Various 50% 40% 8% 10% 2% 2024/2025 Various 50% 40% 8% 10% 2% 2025/2026 Various 50% 40% 8% 10% 2% Service Percentage of Rights Vesting Less than 12 months Nil Threshold: 1 year – 3 years 75% Target: 3 years + 100% SenSen Annual Report 2026 28sensen.ai
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) EBITDA excluding share-based payments target • First vesting date – FY24 EBITDA excluding share-based payments 25% greater than FY23 EBITDA excluding share-based payments, as recorded in the 30 June 2024 Annual Report • Second vesting date - EBITDA excluding share-based payments 25% greater than hurdle EBITDA excluding share-based payments established at first vesting date (i.e. audited full year EBITDA excluding share-based payments for FY25) • Third vesting date - EBITDA 25% greater than hurdle EBITDA excluding share-based payments established at second vesting date (i.e. audited full year EBITDA excluding share-based payments for FY26) • Continued service to vesting date EBITDA excluding share-based payments stretch target • First vesting date – FY24 EBITDA excluding share-based payments 35% greater than FY23 EBITDA excluding share-based payments, as recorded in the 30 June 2024 Annual Report • Second vesting date - EBITDA excluding share-based payments 35% greater than hurdle EBITDA excluding share-based payments established at first vesting date (i.e. audited full year EBITDA excluding share-based payments for FY25) • Third vesting date - EBITDA 35% greater than hurdle EBITDA excluding share-based payments established at second vesting date (i.e. audited full year EBITDA excluding share-based payments for FY26) • Continued service to vesting date These share rights are issued for nil consideration based on a five-day VWAP of the Company’s share price prior to the lodgement of the Annual Report based on the relevant percentage of the employee salary. Share-based compensation The terms and conditions of each grant of share rights affecting remuneration in the current or a future reporting period are as follows: 1 Potential value of LTI set and fixed for the three years at the salary value excluding superannuation as at 30 June 2024. 2 Excludes any further discretionary grants that may be awarded each year. 3 Any shares granted under Stretch targets are subject to Shareholder approval. 2024 Tranche Summary 1 Excluding stretched targets. 2 Final number of shares issued was determined based on a five-day VWAP of the Company’s share price prior to the lodgement of the 30 June 2024 Annual Report. 3 David Smith was eligible for LTI on a prorated basis up to 29 February 2024 when he ceased to be an executive. Name Grant date Salary1 Percentage eligible to be earnt each year Potential value of LTI Shares each year Base2 Potential value of LTI Shares each year including Stretch2 S Challa 28/11/2023 $363,636 50% $181,818 $200,0003 Tranche 1 -2024 Name Potential value of LTI Shares each year1 Service Revenue EBITDA excl. SBP EBITDA excl. SBP – Stretch Discretionary Grant Total Number of Shares issued2 50% 40% 10% 2% N/A S Challa $181,818 $90,909 - $18,182 $1,454 - $110,545 2,878,788 D Smith3 $151,250 $50,417 - $10,083 $807 - $61,307 1,596,528 C Stevens (CFO) $88,000 $33,000 - $8,800 $704 - $42,504 1,106,875 SenSen Annual Report 2026 29sensen.ai
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) In respect of the service element above for 2024, S Challa and D Smith had served greater than 3 years and were entitled to the full ‘Service Target’ grant. C Stevens had served between 1 – 3 years and was entitled to 75% of the ‘Service Target’. For 2024 the EBITDA excluding share-based payments and EBITDA excluding share-based payments stretch targets were met and Revenue targets were not met as shown below: 2025 Tranche Summary 1 Excluding stretched targets. 2 Final number of shares was determined based on a five-day VWAP of the Company’s share price prior to the lodgement of the 30 June 2025 Annual Report. 3 Resigned 8 July 2025. To be awarded LTI, the recipient must maintain continuous service up to vesting date in August 2025. In respect of the service element above for 2025, Subhash Challa had served greater than 3 years and was entitled to the full ‘Service Target’ grant. SenSen Annual Report 2026 30 For 2025 the Revenue, EBITDA excluding share-based payments and EBITDA excluding share-based payments stretch targets were met and the Revenue stretch target was not met as shown below: 1 Based on FY25 audited financial statements. Target Measure Target $ Actual Result Target met? Revenue $13,495,654 $12,144,460 No Revenue Stretch $14,575,306 $12,144,460 No EBITDA excl. SBP ($3,923,089) ($259,676) Yes EBITDA excl. SBP Stretch ($3,400,011) ($259,676) Yes Tranche 2 - 2025 Name Potential value of LTI Shares each year1 Service Revenue EBITDA excl. SBP EBITDA excl. SBP – Stretch Discretionary Grant Total Number of Shares issued2 50% 40% 10% 2% N/A S Challa $181,818 $90,909 $72,727 $18,182 $3,636 - $185,454 6,623,357 C Stevens (CFO)3 $88,000 - - - - - - - Target Measure Target $ Actual Result Target met? 1 Revenue $15,180,575 $15,359,069 Yes Revenue Stretch $16,395,021 $15,359,069 No EBITDA excl. SBP ($194,757) $3,056,474 Yes EBITDA excl. SBP Stretch ($168,789) $3,056,474 Yes sensen.ai
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D I R E C T O R S ’ R E P O R T 2026 Tranche Summary 1 Excluding Stretched targets. 2 Final number of shares to be issued will be determined based on a five-day VWAP of the Company’s share price prior to the lodgement of the 30 June 2026 Annual Report. The shares for the 2026 tranche will be issued in FY27. 3 Resigned 8 July 2025. In respect of the service element above for 2026, Subhash Challa had served greater than 3 years and was entitled to the full ‘Service Target’ grant. For 2026 the measures are as shown below: 1 Based on FY26 audited financial statements. Summary of Total LTI Remuneration 1 G Dymond (CFO) was appointed on 5 January 2026 and was not entitled to participate in the long-term incentive scheme. 2 Credit recognised in FY26 is due to higher expense recorded in FY25 in relation to FY26. Long-Term Incentive Scheme from FY27 A long-term incentive (LTI) scheme commencing 1 July 2026 for three financial years ending 30 June 2029 will be introduced in FY27. The LTI scheme will be submitted to shareholders for approval at the Company’s 2026 Annual General Meeting. Remuneration Report (Audited) (cont’d) Tranche 3 - 2026 Name Potential value of LTI Shares each year1 Service Revenue EBITDA excl. SBP EBITDA excl. SBP – Stretch Discretionary Grant Total Number of Shares issued2 50% 40% 10% 2% N/A S Challa $181,818 $90,909 - - - - $90,909 - C Stevens (CFO)3 - - - - - - - - Target Measure Target $ Actual Result Target met?1 Revenue $19,198,836 $15,392,931 No Revenue Stretch $20,734,743 $15,392,931 No EBITDA excl. SBP $3,820,593 $1,930,548 No EBITDA excl. SBP Stretch $4,126,240 $1,930,548 No Name1 Grant Date Total 30 June 2026 LTI Remuneration LTI Expense recognised in this period2 S Challa 28/11/2023 $90,909 ($9,524) C Stevens (CFO) 20/12/2023 - - SenSen Annual Report 2026 31sensen.ai
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D I R E C T O R S ’ R E P O R T ( A U D I T E D ) Two Performance Rights were issued during the year (2025: nil). (ii) Option holdings of key management personnel in SenSen Networks Limited No options were issued during the year ended 30 June 2026 (2025: 2,900,000). (iii) Shareholdings of key management personnel in SenSen Networks Limited 1 Includes shares issued in FY26 related to a grant that was expensed in FY24 and FY25. 2 Appointed 5 January 2026. 3 Resigned 8 July 2025. SenSen Annual Report 2026 32 D I R E C T O R S ’ R E P O R T 2025 Balance at 1 July 2024 Granted as remuneration Rights forfeited or lapsed Exercised Balance as at 30 June 2025 Total Vested Total Non- vested S Challa 8 - - 2 6 3 3 D Smith 2 - - 2 - - - 2026 Balance at 1 July 2025 Granted as remuneration Exercised Forfeited / other Balance as at 30 June 2026 Total Vested and exercisable Total Non- vested M Brayan 2,900,000 - - - 2,900,000 2,900,000 - 2025 Balance at 1 July 2024 Granted as remuneration Exercised Forfeited / other Balance as at 30 June 2025 Total Vested and exercisable Total Non- vested M Brayan - 2,900,000 - - 2,900,000 2,900,000 - 2026 Balance at 1 July 2025 Shares issued as remuneration 1 Other changes during the year Balance held at 30 June 2026 Directors M Brayan 5,923,777 - - 5,923,777 S Challa 103,459,868 6,623,357 462,135 110,545,360 D Smith 22,306,432 - (21,016) 22,285,416 J Martin - - 1,448,279 1,448,279 Other KMP G Dymond (CFO) 2 - - 645,000 645,000 C Stevens (CFO)3 2,693,441 - (2,693,441) - Total 134,383,518 6,623,357 (159,043) 140,847,832 sensen.ai (m) Key Management Personnel Shareholdings (i) Performance right holdings of key management personnel in SenSen Networks Limited 2026 Balance at 1 July 2025 Granted as remuneration Rights forfeited or lapsed Exercised Balance as at 30 June 2026 Total Vested Total Non- vested S Challa 6 2 - 3 5 5 - Remuneration Report (Audited) (cont’d)
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) (iii) Shareholdings of key management personnel in SenSen Networks Limited (continued) 1 Includes shares issued in FY25 related to a grant that was expensed in FY24. 2 Includes shares issued under the Company’s salary sacrifice share plan during FY25. 3 Appointed 28 January 2025. 4 Resigned 19 November 2024. 5 Resigned 8 July 2025. None of the shares above are held nominally by the directors or any of the other key management personnel. (n) Loans from key management personnel Details of loans made with key management personnel during the year ended 30 June 2026 are as follows: – During the period Subhash Challa maintained a loan arrangement with the Company, accruing interest at the rate of 9.43% per annum. Drawdowns of $100,000 and repayments of $410,000 were made during the year, plus interest paid of $5,262. The loan balance at 30 June 2026 was nil (2025: $310,000). (o) Other transactions with key management personnel There were no other transactions with key management personnel of the Group, including their close family members and entities related to them, during the financial year ended 30 June 2026 or 30 June 2025. (p) Service Agreements with key management personnel The Company’s policy is to enter into service contracts with executive directors and senior executives on appointment that are unlimited in term but capable of termination on specified notice periods; and that the Company has the right to terminate the contract immediately by making payment equal to the specified notice period as pay in lieu of notice other than for misconduct when termination is immediate. The executive directors and senior executives are also entitled to receive on termination of employment their statutory entitlements of accrued annual leave and long service leave. The service contract outlines the components of remuneration paid to the executive directors and key management personnel but does not prescribe how remuneration levels are modified year to year. SenSen Annual Report 2026 sensen.ai 33 2025 Balance at 1 July 2024 Shares issued as remuneration 1 Shares issued under salary sacrifice scheme 2 Other changes during the year Balance held at 30 June 2025 Directors M Brayan 5,923,777 - - - 5,923,777 S Challa 100,314,414 2,878,788 266,666 - 103,459,868 D Smith 20,709,904 1,596,528 - - 22,306,432 J Martin3 - - - - - Z Pasieczny4 50,751,357 - - (50,751,357) - Other KMP C Stevens (CFO)5 1,425,233 1,106,875 161,333 - 2,693,441 Total 179,124,685 5,582,191 427,999 (50,751,357) 134,383,518
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D I R E C T O R S ’ R E P O R T Remuneration Report (Audited) (cont’d) Details of contracts with the current Directors and KMP of the Group that received remuneration during the 2026 financial year are set out below: 1 Appointed 5 January 2026. 2 Resigned 8 July 2025. End of Remuneration Report (Audited) SenSen Annual Report 2026 sensen.ai 34 Director / KMP Terms of Agreement Base salary including superannuation Termination benefit Notice period M Brayan Ongoing $100,800 N/A N/A S Challa Ongoing $400,000 6 Months 6 Months D Smith Ongoing $64,512 N/A N/A J Martin Ongoing $64,512 N/A N/A G Dymond1 Ongoing $302,500 3 Months 3 Months C Stevens2 Ongoing $245,300 1 Month 1 Month
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D I R E C T O R S ’ R E P O R T SenSen Corporate Governance Summary SenSen is committed to ensuring that its corporate governance framework, policies and practices are of a high standard. Delivering on this commitment involves SenSen having a solid understanding of current governance requirements and practices, as well as being familiar with emerging governance trends and ever-changing stakeholder expectations. Throughout FY26, SenSen’s corporate governance procedures were largely consistent with the Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council (ASX Principles), and detailed explanations where it didn’t meet the recommendations. SenSen’s 2026 Corporate Governance Statement is available at https://sensen.ai/investors/corporate-governance/. SenSen’s 2026 Corporate Governance Statement outlines SenSen’s arrangements in relation to its Board, Board Committees, Executive Team, risk management framework and financial reporting, diversity, corporate governance policies and shareholder engagement. Auditor’s Independence Declaration The directors received the Independence Declaration from the lead auditor of SenSen Networks Limited which is appended to this report on page 36. Non-Audit Services No fees were paid or payable to Hall Chadwick (NSW), being the auditor for the Group, for non-audit and other assurance work during the year ended 30 June 2026 (2025: Nil). During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent entity, and its related practices: $Nil. The Board has considered the position and in accordance with advice received from the Audit & Risk Committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence of auditors imposed by the Corporations Act 2001. Indemnifying and Insurance of Directors and Officers During or since the end of the previous financial year, the Company has given an indemnity or entered into an agreement to indemnity, or paid or agreed to pay insurance premiums as follows: The Company has paid premiums to insure all of the Directors and key management personnel of the Company as named above, the Company Secretary, and all executive officers of the Company against any liability incurred as such by Directors, the Secretary or Executive Officers to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. No indemnification has been obtained for the auditors of the Company or the Group. Proceedings on Behalf of the Company No person has applied to the Court under section 237 of the Corporations 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 any part of those proceedings. No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001. This report has been signed in accordance with a resolution of the directors. Mr Mark Brayan, Chairman Date: 27 August 2026 SenSen Annual Report 2026 sensen.ai 35
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A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N SenSen Annual Report 2026 sensen.ai 36
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C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S A N D O T H E R C O M P R E H E N S I V E I N C O M E For the year ended 30 June 2026 The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. SenSen Annual Report 2026 sensen.ai 37 Consolidated 2026 2025 Note $ $ Revenue from customer contracts Revenue from contracts with customers 3 15,392,931 15,359,069 Cost of sales and providing services (2,886,022) (3,216,439) Gross Profit 12,506,909 12,142,630 Other income 3 3,012,331 2,017,111 Interest income 3 23,798 48,229 Expenses Administration expense 4 (852,813) (1,058,402) Advertising & marketing (746,518) (633,727) Other expenses 4 (2,294,178) (1,637,503) Finance cost 4 (482,342) (428,995) Occupancy cost (179,980) (218,853) Staff costs 4 (7,529,894) (6,051,286) Technology costs (1,985,309) (1,551,725) Depreciation & amortisation 4 (539,594) (723,936) Share based payments credit/(expense) 27 72,436 (1,388,254) Profit before income tax 1,004,846 515,289 Income tax expense 5 (586) (65,317) Profit for the period 1,004,260 449,972 Profit attributable to members of the parent entity 1,004,260 449,972 Other comprehensive income Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (111,727) (28,512) Other comprehensive income (111,727) (28,512) Total comprehensive income for the year 892,533 421,460 Profit per share: Basic and diluted earnings per share (cents) 6 0.12 0.06
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C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. SenSen Annual Report 2026 sensen.ai 38 Consolidated 2026 2025 Note $ $ ASSETS Current Assets Cash and cash equivalents 8 1,940,724 2,832,996 Trade and other receivables 10 2,702,859 2,399,785 Contract assets 11 532,941 504,057 Inventory 13 549,766 165,499 Other assets 12 3,165,208 2,079,559 Total Current Assets 8,891,498 7,981,896 Non-Current Assets Intangibles 15 174,437 385,617 Goodwill 15 5,632,016 5,632,016 Right of use asset 16 168,185 408,112 Other assets 28,932 33,557 Property, plant and equipment 14 206,679 184,842 Total Non-Current Assets 6,210,249 6,644,144 TOTAL ASSETS 15,101,747 14,626,040 LIABILITIES Current Liabilities Trade and other payables 17 2,247,141 2,451,995 Contract liabilities 19 695,507 401,060 Employee benefits 18 908,225 861,318 Lease liabilities 16 184,880 261,689 Borrowings 20 1,944,331 2,152,822 Total Current Liabilities 5,980,084 6,128,884 Non-Current Liabilities Employee benefits 18 52,392 63,099 Lease liabilities 16 27,308 212,191 Total Non-Current Liabilities 79,700 275,290 TOTAL LIABILITIES 6,059,784 6,404,174 NET ASSETS 9,041,963 8,221,866 EQUITY Issued capital 21 65,647,891 64,614,835 Reserves 22 3,969,355 5,186,574 Accumulated losses (60,575,283) (61,579,543) TOTAL EQUITY 9,041,963 8,221,866 As at 30 June 2026
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C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y For the year ended 30 June 2026 SenSen Annual Report 2026 sensen.ai 39 Issued Capital Accumulated Losses Reserves Total Equity Consolidated $ $ $ $ Balance at 1 July 2024 63,887,639 (62,029,515) 4,554,028 6,412,152 Profit for the period - 449,972 - 449,972 Other comprehensive income for the period - - (28,512) (28,512) Total comprehensive income for the period - 449,972 (28,512) 421,460 Transactions with owners in their capacity as owners Shares issued during the year - - - - Share Based Payments (note 21 and 22) 15,462 - 1,372,792 1,388,254 Transfer from reserves (note 21 and 22) 711,734 - (711,734) - Total transactions with owners for the period 727,196 - 661,058 1,388,254 Balance at 30 June 2025 64,614,835 (61,579,543) 5,186,574 8,221,866 Balance at 1 July 2025 64,614,835 (61,579,543) 5,186,574 8,221,866 Profit for the period - 1,004,260 - 1,004,260 Other comprehensive income for the period - - (111,727) (111,727) Total comprehensive income for the period 1,004,260 (111,727) 892,533 Transactions with owners in their capacity as owners Shares issued during the year - - - - Share Based Payments (note 21 and 22) - - (72,436) (72,436) Transfer from reserves (note 21 and 22) 1,033,056 - (1,033,056) - Total transactions with owners for the period 1,033,056 - (1,105,492) (72,436) Balance at 30 June 2026 65,647,891 (60,575,283) 3,969,355 9,041,963 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
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C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W S For the year ended 30 June 2026 The above Consolidated Statement of Cashflows should be read in conjunction with the accompanying notes. SenSen Annual Report 2026 sensen.ai 40 Consolidated Note 2026 2025 $ $ Cash flows from operating activities Receipts from customers 16,002,799 14,540,282 Payments to suppliers and employees (17,734,371) (14,612,399) Interest received 33,276 48,229 Interest paid (409,737) (477,762) Government grants received 2,052,668 2,261,749 Income tax paid (146,517) (65,317) Net cash provided / (used) by operating activities 9(a) (201,882) 1,694,782 Cash flows from investing activities Purchase of plant and equipment (126,221) (88,240) Proceeds from disposal of plant and equipment 15,671 - Other (12,364) - Net cash (used) / provided by investing activities (122,914) (88,240) Cash flows from financing activities Repayment of lease liabilities 9(b) (222,414) (197,180) Proceeds from borrowings 9(b) 4,746,020 1,181,016 Repayment of borrowings 9(b) (4,954,531) (1,300,000) Net cash (used) / provided by financing activities (430,925) (316,164) Net increase / (decrease) in cash and cash equivalents (755,721) 1,290,378 Effects of exchange rates changes on cash and cash equivalents (136,551) (28,512) Cash and cash equivalents at beginning of the financial year 2,832,996 1,571,130 Cash and cash equivalents at end of financial year 8 1,940,724 2,832,996
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Notes to the Consolidated Financial Statements
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES The financial report includes the financial statements and notes of SenSen Networks Limited, a listed public company incorporated and domiciled in Australia. The separate financial statements of the parent entity, SenSen Networks Limited, have not been presented within this financial report as permitted by the Corporations Act 2001. The financial statements were authorised for issue on 27 August 2026 by the directors of the Company. (a) Basis of Preparation These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001 . The consolidated entity is a for-profit entity for the purpose of preparing the financial statements. For the year ended 30 June 2026 amounts contained in this report and in the financial report have been rounded to the nearest dollar. The consolidated financial statements of the Group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Parent entity information. In accordance with the Corporations Act 2001 , these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 28. The financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. (b) Going concern basis The consolidated financial statements have been prepared on the going concern basis of accounting, which assumes the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. As disclosed in the consolidated financial statements, the Group has net operating outflows for the year of $201,882 (30 June 2025: net operating cash inflows of $1,694,782), and as at 30 June 2026 has a net current asset surplus of $2,911,414 (30 June 2025: $1,853,012). The Group also generated a profit after tax for the year ended 30 June 2026 of $1,004,260 (30 June 2025: profit of $449,972) and reported EBITDA of $2,000,984 (30 June 2025: EBITDA of $1,619,991). At 30 June 2026 the Company has approved undrawn debt facilities of $1,755,709. The ability of the Group to continue as a going concern is principally dependent upon the following conditions: • the ability to meet its internal cash flow forecasts, in particular the Group’s revenue growth targets and operating cost expectations; and • the ability of the Group to draw down on its unused loan facilities. The Directors believe that the going concern basis of preparation is appropriate due to the following reasons: • the Group has prepared a cash flow forecast based on reasonable assumptions that the Directors believe are achievable; • the Group has adequate capacity in its existing debt facilities to overcome any short-term liquidity requirements; and • the Directors believe the Group has the ability to further scale back expenditure as and when required to preserve cash if needed. Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial report. This financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the Group be unable to continue as a going concern. SenSen Annual Report 2026 sensen.ai 42
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (c) Revenue recognition AASB 15 applies to all revenue arising from contracts with customers, unless those contracts are in the scope of other standards. The standard establishes a five-step model to account for revenue arising from contracts with customers. Under AASB 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The Group is in business of developing and selling SenDISA platform-based products and services to government and retail customers globally. Revenue is recognised either at a point in time or over time, when (or as) the Group satisfies performance obligations by transferring the promised goods or services to its customers. The Group recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts in the statement of financial position. Similarly, if the Group satisfies a performance obligation before it receives the consideration, the Group recognises either a contract asset or a receivable in its statement of financial position, depending on whether something other than the passage of time is required before the consideration is due. AASB 15 Revenue from Contracts with Customers Sale of Hardware, Software Licence and Customised Installation In relation to the sale of Hardware and Software Licences, the Group concludes that these sales are highly interrelated and interdependent with the installation therefore not capable of being distinct. The performance obligation in relation to sales is satisfied when the installation is complete. The licences granted to customers provide a right for them to access the software. Further, the Group sells the software licences in some cases bundled with a maintenance period. After the initial period of maintenance, the customer has the option to sign-up for additional periods of maintenance. The maintenance is distinct on its own. The software remains functional after installation without updates, support and software maintenance and therefore is not integrated with the other goods or services. Further, the customer can continue to utilise the software without the maintenance (the customer can still retain continued functionality of the software for a reasonable period of time after installation). Thus, the Group concludes that the customer can benefit from the maintenance on its own and the criterion in paragraph 27(a) of AASB 15 is met. In addition, the maintenance is distinct within the context of the contract and the criterion in paragraph 27(b) of AASB 15 is met. Maintenance is recognised over the period the services are provided. Revenue is measured on a straight-line basis, which best depicts the Group’s performance. Service contracts Identifying performance obligations Service contracts generally include a number of key deliverables. The Group observed that these key deliverables are considered tasks and not distinct on their own. That is, the customer cannot benefit from the good or service either on its own or together with other resources that are readily available to the customer. Therefore, the criterion in paragraph 27(a) of AASB 15 is not met. Further, the tasks are considered inputs to produce the combined output (i.e. software development of customer’s new/existing software) specified in the contract (paragraph 29(a) of AASB 15). Therefore, the criterion in paragraph 27(b) of AASB 15 (on the basis of the factors in paragraph 29 of AASB 15) is not met. The Group concludes that there is one performance obligation which is the service contracts. Revenue on service contracts is measured on a straight-line basis, which best depicts the Group’s performance. SenSen Annual Report 2026 sensen.ai 43
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) Customer contracts with multiple performance obligations Where a customer enters into a contract for multiple performance obligations, these are accounted for based on the relative stand-alone selling price for the individual obligation. Contracts for software licences that feature integrated business solution applications, may include additional charges for professional services. Revenues of this nature are considered distinct and are individually accounted for as separate performance obligation. Fees are based on standard hourly rates and have been allocated according to their respective stand-alone selling price. Customer contracts for transaction services are also treated as a separate performance obligation as business transactions are processed on behalf of the customer for a determined fee. In all cases, the total transaction price for a customer contract is allocated amongst the various performance obligations based on their relative stand-alone selling prices. Cost of obtaining a customer contract AASB 15 requires that incremental costs associated with acquiring a customer contract, such as sales commissions, are recognised as an asset and amortised over a period that corresponds with the period of benefit. Unsatisfied performance obligations The Group continues to recognise its ‘contract liabilities’ under AASB 15 in respect of any unsatisfied performance obligations. These liabilities are disclosed as in the consolidated statement of financial position. Financing components The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money. Standard payment terms Standard payment terms on customer invoices is disclosed in note 1 (i) below. (d) Changes in accounting policies New and Amended Accounting Policies Adopted by the Group The Group has applied the following amendments to Australian Accounting Standards for the first time for the annual reporting period beginning 1 July 2025: • AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability; and • AASB 2026-1 Amendments to Australian Accounting Standards – Disclosures about Uncertainties in the Financial Statements. The adoption of these amendments has not had a material impact on the recognition, measurement, presentation or disclosure of any amounts recorded in the current or prior period, and has not required restatement of comparative information. New and Amended Standards Issued but not yet effective Certain new accounting standards and amendments have been published that are not mandatory for the 30 June 2026 reporting period and have not been early adopted by the Group. The Directors’ assessment of the impact of those most relevant to the Group’s operations is set out below. SenSen Annual Report 2026 sensen.ai 44
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) AASB 2024-2 and AASB 2025-2: Classification and Measurement of Financial Instruments (amending AASB 9 and AASB 7) are effective for annual reporting periods beginning on or after 1 January 2026 (the Group’s financial year ending 30 June 2027). The amendments clarify the timing of recognition and derecognition of financial assets and liabilities settled by electronic payment systems, provide guidance on contractually linked instruments and financial assets with ESG-linked features, and introduce additional disclosures for certain equity and contingent- feature instruments. The Group is assessing the impact on its financial instruments and does not currently expect a material effect. AASB 18: Presentation and Disclosure in Financial Statements, which replaces AASB 101: Presentation of Financial Statements, is effective for annual reporting periods beginning on or after 1 January 2027 (the Group’s financial year ending 30 June 2028), with early adoption permitted. AASB 18 will require the statement of profit or loss to be presented using defined operating, investing and financing categories with two new mandatory subtotals, introduces a single note disclosing management-defined performance measures (which will form part of the audited financial statements), and enhances the principles for aggregation and disaggregation of information. The Group has not yet quantified the impact of AASB 18 and will assess the effect on the presentation of its financial statements, including any non-IFRS/non-AASB measures currently reported outside the statutory accounts, ahead of the mandatory adoption date. Other standards and amendments on issue but not yet effective – including AASB 2024-3: Annual Improvements Volume 11, AASB 2025-1/2025-3 (nature-dependent electricity contracts), AASB 2025-4 (translation to a hyperinflationary presentation currency) and AASB 2014-10/2024-4 (sale or contribution of assets between an investor and its associate or joint venture); are not expected to have a material impact on the Group, as the Group does not hold nature-dependent electricity purchase agreements, present in a hyperinflationary currency or hold interests in associates or joint ventures. AASB 2024-2: Amendments to Australian Accounting Standards – Classification and Measurement of Financial Instruments AASB 2024-2 amends AASB 7 and AASB 9 in relation to: • settling financial liabilities using an electronic payment system; • assessing contractual cash flow characteristics of financial assets with environmental, social and corporate governance (ESG) and similar features; and • disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income, and adds disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs. The Group plans on adopting the amendment for the reporting period ending 30 June 2027. The amendment is not expected to have a material impact on the financial statements once adopted. AASB 2024-3: Amendments to Australian Accounting Standards – Annual Improvements Volume 11 AASB 2024-3 amends the following: • AASB 1 to improve consistency between AASB 1 and the requirements for hedge accounting in AASB 9, as well as to improve the understandability of AASB 1; • AASB 7 to replace a cross-reference and improve the consistency in the language used in AASB 7 with the language used in AASB 13; • AASB 9 to clarify how a lessee accounts for the derecognition of a lease liability when it is extinguished and address inconsistencies between AASB 9 and the requirements in AASB 15 in relation to the term “transaction price”; • AASB 10 in relation to determining de facto agents of an entity; and • AASB 107 to replace the term “cost method” with “at cost”, as the term is no longer defined in Australian Accounting Standards. The Group plans on adopting the amendment for the reporting period 30 June 2027. The amendment is not expected to have a material impact on the financial statements once adopted. SenSen Annual Report 2026 sensen.ai 45
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (e) Business combinations and asset acquisitions The acquisition method of accounting is used to account for all business combinations regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given, shares issued, or liabilities incurred or assumed at the date of exchange. Where equity instruments are issued in a business combination, the fair value of the instruments is their published market price as at the date of exchange. Transaction costs arising on the issue of equity instruments are recognised directly in equity. All identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of the business combination over the net fair value of the Group’s share of the identifiable net assets acquired is recognised as goodwill. If the cost of acquisition is less than the Group’s share of the net fair value of the identifiable net assets of the subsidiary, the difference is recognised as a gain in the statement of profit or loss and other comprehensive income, but only after a reassessment of the identification and measurement of the net assets acquired. Acquisitions of entities that do not meet the definition of a business contained in AASB 3 Business Combinations (IFRS 3) are not accounted for as business combinations. In such cases the Group identifies and recognises the individual identifiable assets acquired (including those assets that meet the definition of, and recognition criteria for, intangible assets in AASB 138 Intangible Assets (IAS 38) and liabilities assumed. The cost of the group of net assets is then allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at the date of purchase. Such a transaction or event does not give rise to goodwill. Except for business combinations, no deferred income tax is recognized from the initial recognition of an asset or liability, where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised, or the liability is settled, and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale. (f) Income tax The income tax for expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authorities. Deferred tax assets relating to temporary differences and unused tax losses are recognized only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilized. Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. SenSen Annual Report 2026 sensen.ai 46
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. SenSen Networks Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities are set off in the consolidated financial statements. (g) Fair value of assets and liabilities The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard. Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use. (h) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are reported within borrowings in current liabilities on the statement of financial position. For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above. (i) Trade and other receivables Trade receivables and other receivables, both of which generally have 30-day terms, are non-interest bearing and are recognised and carried at amortised cost using the effective interest rate method, less allowance for credit losses. These receivables are classified as current assets unless not recoverable within 12 months after reporting period. (j) Trade and other payables Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The amounts are unsecured and are usually paid within 30 days from date of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using effective interest method. SenSen Annual Report 2026 sensen.ai 47
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (k) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). 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 ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. (l) Property, plant and equipment Property, plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of property, plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(n) for details of impairment). Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings. The depreciable amount of all fixed assets is depreciated on either a diminishing value or a straight-line basis over the asset’s useful life from the time the asset is ready for use. The depreciation rates used for each class of depreciable asset are: Class of fixed asset Depreciation rate per annum Computer equipment 33 – 50% Furniture and equipment 20 – 33% The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. An asset is written down to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. (m) Intangible assets Goodwill Goodwill is measured as per the Business Combination policy in note 1(e). Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the operating segments. SenSen Annual Report 2026 sensen.ai 48 Depreciation
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) Separately acquired intellectual property is shown at historical cost. Intellectual property acquired in a business combination is recognised at fair value at the acquisition date. They have a finite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. The useful life applied to the recognised intellectual property is 4-7 years. Acquired intangible assets, including brand names, technology and customer contracts are recorded at fair value at date of acquisition. These assets have a finite useful life and are subsequently carried at fair value less The useful lives applied to these assets are as follows: • Brand names – 3 years • Technology – 3 years • Customer contracts – 6 years Software developed or acquired for sales and licensing Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the design and testing of new areas of products) are recognised as intangible assets when it is probable that the project will, after considering its commercial and technical feasibility, be completed and generate future economic benefits and its costs can be measured reliably. The expenditure capitalised comprises all directly attributable costs, including costs of materials, services, direct labour and an appropriate proportion of overheads. Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Capitalised development costs and acquired software are recorded as intangible assets and amortised from the point at which the asset is ready for use on a straight-line basis over its useful life, which varies from three to five years. (n) Impairment of non-financial assets At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information including dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of pre- acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. (o) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the consolidated statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs. SenSen Annual Report 2026 sensen.ai 49 Intellectual Property Acquired Intangible Assets amortisation and impairment losses.
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in profit or loss, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. (p) Employee benefits Liabilities for wages and salaries, including non-monetary benefits and personal leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. All other short-term employee benefit obligations are presented as payables. The Group also has liabilities for long service leave that is not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. These obligations are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period. Expected future payments are discounted using market yields at the end of the reporting period of high-quality corporate bonds with terms that match the estimated future cash outflows. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur. (q) Equity-settled compensation The Group provides benefits to employees (including senior executives) and consultants of the Group in the form of share-based payments, whereby employees and consultants render services in exchange for shares or rights over shares (equity-settled transactions). The cost of these equity-settled transactions is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value of rights over shares is determined using a binomial, or Black-Scholes model, further details of which are given in Note 27. The fair value of shares is determined by the market value of the Group’s shares at grant date. In valuing equity-settled transactions, any performance conditions are taken into account if relevant and assumptions around the likelihood of meeting these performance conditions are factored into the valuation model. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting period). The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects: (i) the extent to which the vesting period has expired; and (ii) the Group’s best estimate of the number of equity instruments that will ultimately vest. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a market condition. SenSen Annual Report 2026 sensen.ai 50 Long term obligations Short term obligations
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share. (r) Leases The Group leases office space. Rental contracts are typically made for fixed periods of 3 to 8 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis, and range between one and three years. These assets are also subject to impairment, as per Note 1(n). Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • fixed payments (including in-substance fixed payments), less any lease incentives receivable; • variable lease payment that are based on an index or a rate; • amounts expected to be payable by the lessee under residual value guarantees; • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability; • any lease payments made at or before the commencement date less any lease incentives received; and • any initial direct costs. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right- of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months of less (with no extension options) and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. SenSen Annual Report 2026 sensen.ai 51
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (s) Inventory The Group’s inventory consists of hardware and other finished goods, which are stated at the lower of cost and net realisable value. Cost comprises direct purchase price and is determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. (t) Financial instruments The Group measures financial instruments under the requirements of AASB 9. AASB 9 contains three principal classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVPL). The classification of financial assets under AASB 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Financial assets (trade and other receivables) and financial liabilities are classified at amortised cost, as they are held to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. In determining the impairment of financial assets under AASB 9, an expected credit loss model is applied. To reflect changes in credit risk, this expected credit loss (ECL) model requires the Group to account for expected credit loss since initial recognition. The Group applies the AASB 9 simplified approach to measuring expected credit losses which used lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, the trade receivables have been grouped based on shared credit risk characteristics and the number of days past due. The contract assets relate to unbilled work in progress and unbilled software and hardware sales and have substantially the same characteristics as the trade receivables for the same types of contracts. While cash and cash equivalents are also subject to the impairment requirements of AASB 9, there was no material impairment loss identified. (u) Provisions Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result, and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period. (v) Foreign currency transactions and balances Functional and presentation currency The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars, which is the parent entity’s functional currency. Transactions and balances Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at year-end exchange rate. Non- monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined. Exchange differences arising on the translation of monetary items are recognised in profit or loss, except where deferred in equity as a qualifying cash flow or net investment hedge. SenSen Annual Report 2026 sensen.ai 52 Financial assets Impairment of financial assets
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to the extent that the underlying gain or loss is recognised in other comprehensive income; otherwise, the exchange difference is recognised in profit or loss. The financial results and position of foreign operations, whose functional currency is different from the Group’s presentation currency, are translated as follows: • assets and liabilities are translated at exchange rates prevailing at the end of the reporting period; • income and expenses are translated at average exchange rates for the period; and accumulated losses are translated at the exchange rates prevailing at the date of the transaction. Exchange differences arising on translation of foreign operations with functional currencies other than Australian dollars are recognised in other comprehensive income and included in the foreign currency translation reserve in the statement of financial position. The cumulative amount of these differences is reclassified into profit or loss in the period in which the operation is disposed of. (w) Government grants Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received, and the Group will comply with all attached conditions. The Company is eligible for the Commonwealth Government research and development tax incentive. To be eligible the Company must meet stringent guidelines on what represents both core and supporting activities of research and development. Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. (x) Principles of consolidation Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (refer to note 1(e)). Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. (y) Segment reporting Refer to note 2 for the accounting policy and disclosures relating to the Group’s operating segments. (z) Contributed equity and earnings per share Ordinary shares are classified as equity. Incremental costs attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing: • The profit/(loss) attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares; • By the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. SenSen Annual Report 2026 sensen.ai 53 Research and development tax incentive Group companies
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N O T E S TO T H E F I N A N C I A LS T A T E M E N T S 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) Diluted earnings per share (i) The after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and (ii) The weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. (aa) Significant estimates and judgements In applying the Company’s accounting policies, management continually evaluates judgements, estimates and assumptions based on historical experience and other factors, including expectations of future events that may have an impact on the Company. All judgments, estimates and assumptions made are believed to be reasonable based on the most current set of circumstances available to management. Actual results may differ from the judgments, estimates and assumptions. The more significant judgments, estimates and assumptions made by management in the preparation of these financial statements are outlined below: (i) Share-based payments (note 27) The estimation of the likelihood of meeting performance conditions on Long Term Incentive Performance Options has been based on historical experience and management judgement. In addition, this estimate is assessed annually and considered in the context of actual Group performance. (ii) Recognition of revenue (note 1(c)) The Group recognises revenue from either individual or multiple element arrangements such as hosting and installation. An assessment is made as to whether these give rise to separate performance obligations which are accounted for using the methods outlined in Note 1 (c) for each individual element contained within the contract. (iii) Impairment of goodwill and intangible assets (note 1 (n)) The Group is required to perform an annual impairment assessment of goodwill and indefinite life intangible assets, comparing the recoverable amount (i.e. the value-in-use) of the cash-generating unit to the carrying value of the cash-generating unit. Assumptions are applied in this assessment, including the forecast period growth of the cash-generating unit, the long-term growth rate and the discount rate of the cash-generating unit. (iv) Research and development tax incentive The Company is eligible for the Commonwealth Government research and development tax incentive. To be eligible the Company must meet stringent guidelines on what represents both core and supporting activities of research and development. Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. SenSen Annual Report 2026 sensen.ai 54 Diluted earnings per share is calculated by dividing:
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2. SEGMENT REPORTING Operating segments are identified on the basis of internal reports that are regularly reviewed by the executive team in order to allocate resources to the segment and assess its performance. AASB 8 Operating Segments states that similar operating segments can be aggregated to form one reportable segment. The principal areas of operation of the Group are as follows: - North America (USA and Canada) - Australia and New Zealand - Asia (Singapore) As SenSen has grown, an Indian based product and operations resource pool has been developed which provides software development, support and expertise for all of the Group's products and its customers. This pool is responsible for developing SenSen's technology and product offering, as well as providing annotation to support artificial intelligence learning and customer support services. Due to being a support function for all regions, the pool resource costs are allocated across the regional segments. Segment Results SenSen Annual Report 2026 sensen.ai 55 ANZ North America Asia Consolidated ANZ North America Asia Consolidated $ $ $ $ $ $ $ $ 30-Jun-26 30-Jun-25 Revenue 10,608,269 3,857,903 926,759 15,392,931 8,592,416 6,347,325 419,328 15,359,069 Cost of goods sold (1,653,040) (796,077) (436,905) (2,886,022) (1,943,941) (1,251,076) (21,422) (3,216,439) Gross margin 8,955,229 3,061,826 489,854 12,506,909 6,648,475 5,096,249 397,906 12,142,630 Gross Margin % 84% 79% 53% 81% 77% 80% 95% 79% Other income 3,033,610 228 2,291 3,036,129 2,063,000 - 2,340 2,065,340 Regional operating costs (5,363,601) (1,710,286) (431,071) (7,504,958) (4,214,617) (1,371,829) (191,523) (5,777,969) India shared services (1,114,053) (405,147) (97,326) (1,616,526) (869,448) (642,272) (42,431) (1,554,151) Corporate shared services (3,733,005) (1,357,580) (326,123) (5,416,708) (3,558,327) (2,628,580) (173,654) (6,360,561) Segment result before tax 1,778,180 (410,959) (362,375) 1,004,846 69,083 453,568 (7,362) 515,289 Income tax - - (586) (586) (36,222) (30,661) 1,566 (65,317) Net profit / (loss) 1,778,180 (410,959) (362,961) 1,004,260 32,861 422,907 (5,796) 449,972 ANZ North America Asia Consolidated ANZ North America Asia Consolidated $ $ $ $ $ $ $ $ 30-Jun-26 30-Jun-25 Segment assets: Segment assets 10,393,272 4,000,175 708,300 15,101,747 11,086,075 2,743,504 796,461 14,626,040 Segment liabilities (2,494,346) (3,424,296) (141,142) (6,059,784) (3,862,694) (2,310,882) (230,598) (6,404,174) Net assets 7,898,926 575,879 567,158 9,041,963 7,223,381 432,622 565,863 8,221,866 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 56 3. REVENUE AND OTHER INCOME Consolidated 2026 2025 $ $ Revenue from contracts with customers Revenue recognised at a point in time 4,777,977 5,756,972 Revenue recognised over time 10,614,954 9,602,097 Total trading revenue 15,392,931 15,359,069 Interest received 23,798 48,229 Other income Research and Development Grant – FY25 79,705 1,970,672 Research and Development Grant – FY26 2,874,996 - Other 57,630 46,439 Total other income 3,012,331 2,017,111 Total revenue and other income 18,429,060 17,424,409 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 57 4. EXPENSES Consolidated 2026 2025 Note $ $ Finance costs Interest and fees paid on finance facilities and lease liabilities 482,342 428,995 Total Finance costs 482,342 428,995 Administration expense Insurance 354,069 438,999 Travel 303,035 334,438 Other administration expenses 195,709 284,965 Total administration expense 852,813 1,058,402 Staff Costs Contributions to defined contribution superannuation funds (a) 510,471 423,034 Wages & other staff expenses 7,019,423 5,628,252 Total Staff Costs 7,529,894 6,051,286 (a) Contributions to defined contribution plans are expensed when incurred. Other expenses Legal Fees 195,792 251,858 Patents and trademarks 168,173 93,501 Audit, bookkeeping and tax advice 384,746 309,592 Contractors 884,216 420,705 Registry, investor relations and other listing costs 327,646 268,416 Other 333,605 293,431 Total other expenses 2,294,178 1,637,503 Depreciation and amortisation Depreciation 14 105,900 133,580 Amortisation of intangibles 15 211,180 344,640 Depreciation – Right of use asset 16 222,514 245,716 Total depreciation and amortisation 539,594 723,936 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 58 5. INCOME TAX Consolidated 2026 2025 $ $ (a) Major components of income tax expense Current tax expense Current tax expense 586 65,317 Deferred tax expense Relating to origination and reversal of temporary differences - - Total income tax expense 586 65,317 Consolidated 2026 2025 $ $ (b) Numerical reconciliation of income tax expense to prima facie tax payable Loss from continuing operations before income tax expense 1,004,846 515,289 Tax at the Australian tax rate of 25.0% (2025: 25.0%) 251,212 128,823 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Non-deductible items 46,911 370,271 Accounting expenditure subject to R&D tax incentive 1,652,296 1,135,808 Other income not included in assessable income (738,675) (492,668) Other (71,210) 70,081 Deferred tax asset not recognised on temporary differences (1,139,948) (1,146,998) Total income tax expense/(benefit) 586 65,317 Consolidated 2026 2025 $ $ (c) Deferred Income Tax Deferred income tax at 30 June relates to the following: Deferred Tax Assets Sundry creditors and accruals 30,013 26,238 Provisions 255,950 241,440 Share issue costs 8,658 30,591 Section 40-880 Deduction 55,976 18,741 Depreciation 290,561 262,875 Tax losses carried forward 973,934 1,000,026 Deferred tax asset not recognised (1,571,483) (1,483,507) Recognised DTA 43,609 96,404 Recognised DTL (43,609) (96,404) Net deferred tax assets - - N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 59 5. INCOME TAX (CONTINUED) The benefit of the deferred tax asset will only be obtained if: i. future assessable income of a nature and of an amount sufficient to enable the benefit to be realised is generated; ii. the conditions for deductibility imposed by tax legislation continue to be complied with; and iii. no changes in tax legislation adversely affect the Group in realising the benefit. (d) Movements in deferred tax assets Charged/credited to Year ended June 2026 1 July 2025 Profit or loss Directly to equity Acquisition of subsidiary 30 June 2026 $ $ $ $ $ Sundry creditors and accruals 26,238 3,775 - - 30,013 Provisions 241,440 14,510 - - 255,950 Share issue costs 30,591 (21,933) - - 8,658 Section 40-880 Deduction 18,741 37,235 - - 55,976 Depreciation 262,875 27,686 - - 290,561 Tax Losses Carried Forward 1,000,026 (26,092) - - 973,934 Deferred tax asset not recognised (1,483,507) (87,976) - - (1,571,483) Offset against deferred tax liability (96,404) 52,795 - - (43,609) - - - - - Charged/credited to Year ended June 2025 1 July 2024 Profit or loss Directly to equity Acquisition of subsidiary 30 June 2025 $ $ $ $ $ Sundry creditors and accruals 21,844 4,394 - - 26,238 Provisions 222,757 18,683 - - 241,440 Share issue costs 57,899 (27,308) - - 30,591 Section 40-880 Deduction 38,267 (19,526) - - 18,741 Depreciation 214,389 48,486 - - 262,875 Other 61,786 (61,786) - - - Tax Losses Carried Forward 3,195,599 (2,195,573) - - 1,000,026 Deferred tax asset not recognised (3,663,342) 2,179,835 - - (1,483,507) Offset against deferred tax liability (149,199) 52,795 - - (96,404) - - - - - N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 60 5. INCOME TAX (CONTINUED) (e) Movements in deferred tax assets Charged/credited to Year ended June 2026 1 July 2025 Profit or Loss Directly to equity Acquisition of subsidiary 30 June 2026 $ $ $ $ $ Intangibles 96,404 (52,795) - - 43,609 Offset against deferred tax asset (96,404) 52,795 - - (43,609) - - - - - Charged/credited to Year ended June 2025 1 July 2024 Profit or Loss Directly to equity Acquisition of subsidiary 30 June 2025 $ $ $ $ $ Intangibles 149,199 (52,795) - - 96,404 Offset against deferred tax asset (149,199) 52,795 - - (96,404) - - - - - The Group has unused and unrecognised tax losses of $3,895,738 (2025: $4,001,104). (f) Franking credits The Group does not hold franking credits as at 30 June 2026 or 30 June 2025 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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Consolidated 2026 Cents per Share 2025 Cents per Share (a) Basic and diluted earnings per share From continuing operations attributable to the ordinary equity holders of the Company 0.12 0.06 Total basic earnings per share attributable to the ordinary equity holders of the Company 0.12 0.06 (b) Reconciliation of earnings used in calculating earnings per share Profit attributable to the ordinary equity holders of the Company used in calculating basic and diluted earnings per share 1,004,260 449,972 (c) Weighted average number of shares Consolidated 2026 No. 2025 No. Weighted average number of ordinary shares outstanding during the year used in calculating basic and diluted EPS 818,895,368 783,535,061 SenSen Annual Report 2026 sensen.ai 61 6. EARNINGS PER SHARE As at 30 June 2026, there are 2,900,000 (2025: 2,900,000) options outstanding. 7. AUDITOR’S REMUNERATION During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non-related audit firms: Consolidated 2026 2025 $ $ Audit and review of the financial reports – Hall Chadwick NSW 141,500 137,700 Taxation compliance services - - Total remuneration 141,500 137,700 8. CASH AND CASH EQUIVALENTS Cash at bank and on hand* 1,940,724 2,832,996 Reconciliation of cash Cash at the end of the financial year as shown in the consolidated statement of cash flows is reconciled to cash at the end of the financial year as follows: Cash at bank and on hand 1,940,724 2,832,996 Bank overdrafts - - 1,940,724 2,832,996 * 2025 includes a term deposit of $754,200 with a maturity date of six months from date of acquisition, which is subject to insignificant risk of change in value. N O T E S TO T H E F I N A N C I A LS T A T E M E N T S Consolidated 2026 2025 $ $
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Consolidated 2026 2025 $ $ (a) Reconciliation of profit after income tax to net cash used in operating activities Net profit for the year 1,004,260 449,972 Non-cash flows in profit: Expenses Depreciation and amortisation expense 317,080 478,220 Right of use asset depreciation 222,514 245,716 Share based payment (credit)/expense (72,436) 1,388,254 Other non-cash 2,781 (73,897) Changes in assets and liabilities net of the effects of acquisitions of subsidiaries (Increase)/decrease in trade and other receivables (303,074) (1,078,439) (Increase)/decrease in contract assets (28,884) (330,994) (Increase)/decrease in inventory (384,267) (45,182) (Increase)/decrease other assets (1,085,649) 49,485 Increase/(decrease) in trade, other payables and contract liabilities 89,593 461,863 Increase/(decrease) in provisions 36,200 149,784 Net cash (used in)/from operating activities (201,882) 1,694,782 SenSen Annual Report 2026 sensen.ai 62 9. CASH FLOW INFORMATION (b) Reconciliation of cash and non-cash movements in borrowings from financing activities Non-cash changes above include reductions of leases due to lease termination in India. Financing activities above includes: i. Includes cash payments of lease liabilities of $222,414 (FY25: $197,180) and net repayments of borrowings of $208,511 (FY25: net repayments of $118,984) comprising proceeds from borrowings of $4,746,020 and repayments of $4,954,531. Year ended 30 June 2026 Opening Balance Cash flows Non-cash Changes Closing Balance $ $ $ $ Borrowings and Lease liabilities (i) 2,626,702 (430,925) (39,258) 2,156,519 2,626,702 (430,925) (39,258) 2,156,519 Year ended 30 June 2025 Opening Balance Cash flows Non-cash Changes Closing Balance $ $ $ $ Borrowings and Lease liabilities (i) 3,042,205 (316,164) (99,339) 2,626,702 3,042,205 (361,164) (99,339) 2,626,702 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 10. TRADE AND OTHER RECEIVABLES 11. CONTRACT ASSETS 12. OTHER ASSETS 13. INVENTORY The amount of inventories recognised as an expense during the year ended 30 June 2026 was $910,652 (2025: $1,944,766). Consolidated 2026 2025 $ $ CURRENT Trade receivables 2,711,525 2,441,126 Allowance for expected credit losses (8,666) (41,341) 2,702,859 2,399,785 Consolidated 2026 2025 $ $ Contract Assets Customer contracts – in progress 532,941 504,057 Allowance for expected credit loss - - 532,941 504,057 Consolidated 2026 2025 $ $ Other Current Assets R&D incentive receivable 2,874,996 1,970,090 Prepayments 290,212 109,469 3,165,208 2,079,559 Consolidated 2026 2025 $ $ Inventory Hardware – at cost 549,766 165,499 549,766 165,499 SenSen Annual Report 2026 sensen.ai 63
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SenSen Annual Report 2026 sensen.ai 64 14. PROPERTY, PLANT AND EQUIPMENT Motor Vehicles $ Furniture & Equipment $ Computer Equipment $ Total $ 30 June 2026 Opening net book value at 1 July 2025 52,785 3,618 128,439 184,842 Net additions / (disposals) (7,074) 80,166 54,645 127,737 Depreciation (16,035) (40,505) (49,360) (105,900) Balance at 30 June 2026 29,676 43,279 133,724 206,679 At 30 June 2026 Cost 115,390 274,300 687,776 1,077,466 Accumulated depreciation (85,714) (231,021) (554,052) (870,787) Net book balance 29,676 43,279 133,724 206,679 Motor Vehicles $ Furniture & Equipment $ Computer Equipment $ Total $ 30 June 2025 Opening net book value at 1 July 2024 41,782 43,998 145,607 231,387 Net additions / (disposals) 37,926 21,596 27,513 87,035 Depreciation (26,923) (61,976) (44,681) (133,580) Balance at 30 June 2025 52,785 3,618 128,439 184,842 At 30 June 2025 Cost 158,510 201,977 681,874 1,042,361 Accumulated depreciation (105,725) (198,359) (553,435) (857,519) Net book balance 52,785 3,618 128,439 184,842 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 65 15. INTANGIBLE ASSETS Patents & other acquired intangible assets $ Goodwill $ Total $ 30 June 2026 Opening net book value at 1 Jul 2025 385,617 5,632,016 6,017,633 Additions – business combinations - - - Impairment - - - Depreciation and amortisation (211,180) - (211,180) Balance at 30 June 2026 174,437 5,632,016 5,806,453 At 30 June 2026 Cost 3,269,000 5,632,016 8,901,016 Accumulated amortisation (3,094,563) - (3,094,563) Net book balance 174,437 5,632,016 5,806,453 Patents & other acquired intangible assets $ Goodwill $ Total $ 30 June 2025 Opening net book value at 1 Jul 2024 730,257 5,632,016 6,362,273 Additions – business combinations - - - Impairment - - - Depreciation and amortisation (344,640) - (344,640) Balance at 30 June 2025 385,617 5,632,016 6,017,633 At 30 June 2025 Cost 3,269,000 5,632,016 8,901,016 Accumulated amortisation (2,883,383) - (2,883,383) Net book balance 385,617 5,632,016 6,017,633 Impairment test for goodwill Goodwill is monitored by management at the lowest cash-generating unit level, being that of Snap Network Surveillance Pty Ltd (i.e. SenTrack), and the Scancam group acquisition (Scancam). The goodwill and other intangibles are therefore entirely allocated to these cash-generating units as shown below: 2026 2025 Patents & other acquired intangible assets $ Goodwill $ Patents & other acquired intangible assets $ Goodwill $ SenTrack - 383,399 - 383,399 Scancam 174,437 5,248,617 385,617 5,248,617 174,437 5,632,016 385,617 5,632,016 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 66 15. INTANGIBLE ASSETS (CONTINUED) The Group tests whether the goodwill has suffered any impairment on an annual basis. For the 2026 reporting period, the recoverable amount of the cash-generating units (CGU) was determined based on value-in-use calculations which require the use of assumptions. The calculations use cash flow projections discounted at an appropriate discount rate (DCF) based on financial budgets and projections covering a five-year period. Significant assumptions used for the purposes of assessing each CGU for impairment include: 1 In performing the value-in-use calculations for each CGU, the Group has applied pre-tax discount rates to discount the forecastfuture attributable post-tax cash flows. The equivalent pre-tax discount rates are disclosed above. Cash flows in the budget period are based on the most recent Board approved 12-month budget and extrapolated for a further four years using underlying customer revenue contract data, appropriate growth rates, cost synergies, risk-based contract rates and a terminal value as appropriate for the CGU. Terminal growth rates applied in the DCF are based on estimates of long-term industry growth in the markets in which the CGU operates. The value-in-use calculations are discounted to their net present value using a post-tax discount rate, reflecting specific risks relating to the relevant CGU’s and the countries in which the cash-generating unit operates. As at 30 June 2026, the Group has applied a pre-tax discount rate of 20.5% to SenTrack cash flows and 21.0% to Scancam. Revenue forecasts are based on historical amounts, adjusted for known and anticipated factors such as new contracts won and those reasonably assured of converting. Costs are based on the CGU’s incurrence of these items, factoring in forecast increases and estimated inflation rates over the forecast period. Capital expenditure is estimated based on current costs adjusted for anticipated future expectations. Based on the above assumptions, the recoverable amount of the SenTrack CGU exceeds the carrying amount by $2,157,000. Based on the above assumptions, the recoverable amount of the Scancam CGU exceeds the carrying amount by $2,006,300. As disclosed in note 1 (aa), the Directors have made judgements and estimates in respect to impairment testing. Should these judgements and estimates not occur the resulting CGU carrying amount may decrease. Impact of reasonably possible changes in key assumptions Based on the assumptions above the value-in-use calculations for both the SenTrack and Scancam CGU’s show headroom in excess of the carrying value of the CGU. The table below summarises movements in the key assumptions and the impact on the impairment assessment: SenTRACK Scancam Budget period 1 year from 1 Jul 26 1 year from 1 Jul 26 Forecast period 4 years from 1 Jul 27 4 years from 1 Jul 27 Average annual revenue growth rate FY28-FY31 10.0% 10.0% Fixed cost annual growth rate 4.0% 4.0% Pre-tax discount rate1 20.5% 21.0% Terminal value growth 2.5% 3.10% Assumption Movement in assumption SenTrack – Impairment impact Scancam – Impairment impact Average annual revenue growth rate FY27-FY31 Decrease by 5% $nil $nil Fixed cost annual growth rate Increase by 1% $nil $nil Pre-tax discount rate Increase by 1% $nil $nil Terminal value growth Decrease by 0.5% $nil $nil N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 67 16. LEASES 17. TRADE AND OTHER PAYABLES 18. EMPLOYEE BENEFITS The total cash outflow for leases in 2026 was $268,627 (2025: $285,391) Consolidated 2026 2025 $ $ Amounts recognised in the consolidated statement of financial position: Right-of-use assets Buildings 168,185 408,112 168,185 408,112 Lease liabilities Current 184,880 261,689 Non-current 27,308 212,191 212,188 473,880 There were no additions to the right-of-use assets during the 2026 financial year (2025: $225,445), and no derecognised right-of-use assets on termination of leases during the 2026 financial year (2025: $115,616). Amounts recognised in the consolidated statement of profit or loss and other comprehensive income: Depreciation charge – right-of-use assets 222,514 245,716 Interest expense – lease liabilities 17,005 45,374 239,519 291,090 Consolidated 2026 2025 $ $ Current Trade payables 1,611,091 1,728,344 Accruals and other payables 636,050 723,651 2,247,141 2,451,995 Consolidated 2026 2025 $ $ Current Employee benefits 908,225 861,318 908,225 861,318 Non-Current Employee benefits 52,392 63,099 52,392 63,099 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 68 19. CONTRACT LIABILITIES 20. BORROWINGS a) Bank loan The 2025 balance includes a bank debt with Commonwealth Bank for $450,000 secured by an account set-off arrangement with a matching term deposit and a first ranking charge over present and after acquired property. Variable rate interest of 9.93% was charged. The loan was secured by a letter of set-off between the Group and Commonwealth Bank over a Term Deposit. The loan was repaid in July 2025. b) Other loans The Company maintains the following loan facilities: 1. This facility with Rocking Horse allows the Company to accelerate funding available under the Company’s annual R&D incentive. The loan is secured by the Company’s annual R&D incentive and is expected to be repaid in full once the Company’s annual R&D incentive is received as part of its annual tax return. The loan incurs a fixed interest rate of 16% p.a. The drawn amount as at 30 June 2026 was $1,200,000 (2025: $925,000). 2. Finanzor provides SenSen with working capital facilities which allow the Company to reduce the timing differential between invoicing customers and receiving payments by borrowing against Australian debtors. The loans are secured by Australian debtors and attract a variable interest rate of 12.14%. The drawn amount as at 30 June 2026 was $744,291 (2025: $467,822). 3. Dr Subhash Challa has previously advanced the Company unsecured loans at an interest rate of 0.5% below the CBA Business Loan rate to provide working capital for the Company’s operations. The drawn amount as at 30 June 2026 was $nil (2025: $310,000). Consolidated 2026 2025 $ $ Current Contract liabilities 695,507 401,060 695,507 401,060 Consolidated 2026 2025 $ $ (a) Bank Loans - 450,000 (b) Other Loans 1,944,331 1,702,822 Total Current Borrowings 1,944,331 2,152,822 Loan Facility Facility Limit Drawn Amount at 30 June 2026 Undrawn Amount at 30 June 2026 Rocking Horse1 $2,000,000 $1,200,000 $800,000 Finanzor (formerly Trade Plus 24)2 $1,200,000 $744,331 $455,669 Director loans3 $500,000 - $500,000 Total $3,700,000 $1,944,331 $1,755,669 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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Consolidated 2026 2025 Note $ $ Ordinary shares (a) 65,647,891 64,614,835 (a) Share capital movement during the period Consolidated 2026 2025 No. $ $ No. Balance at beginning of the reporting period 793,037,475 64,614,835 776,830,326 63,887,639 Shares issued under long term incentive plan (i) 36,894,860 1,033,056 15,128,733 695,922 Shares issued under salary sacrifice share scheme (i) - - 1,078,416 31,274 Balance at end of period 829,932,335 65,647,891 793,037,475 64,614,835 SenSen Annual Report 2026 sensen.ai 69 21. ISSUED CAPITAL (i) The Group completed the following share issue allocations in each respective period: 2026 financial year: • On 19 September 2025, 6,493,500 shares were issued in relation to the Group’s long term incentive plan. • On 23 October 2025, 30,271,503 shares were issued in relation to the Group’s long term incentive plan. • On 11 December 2025, 129,857 shares were issued in relation to the Group’s long term incentive plan. 2025 financial year: • On 13 September 2024 15,128,733 shares were issued in relation to the Group’s long term incentive plan. • On 4 July 2024, 1,078,416 shares were issued under the Company’s salary sacrifice share scheme, relating to the June 2024 payroll. This was the final share issue under the scheme. (b) Capital Management Management controls the capital of the Group in order to provide capital growth to shareholders and ensure the Group can fund its operations and continue as a going concern. The Group’s capital includes ordinary share capital. There are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and the market. There have been no changes in the strategy adopted by management to control the capital of the Consolidated Entity since the prior year. N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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Consolidated 2026 2025 $ $ (a) Other Reserves Share-based payment reserve 4,087,098 5,192,590 Foreign currency translation reserve (117,743) (6,016) 3,969,355 5,186,574 (b) Movements Foreign exchange translation reserve Balance at beginning of financial year (6,016) 22,496 Currency translation differences arising during the year (111,727) (28,512) Balance at end of financial year (117,743) (6,016) Share-based payment reserve Balance at beginning of financial year 5,192,590 4,531,532 Share-based payment expense / (credit) (72,436) 1,372,792 Transfer from reserves (1,033,056) (711,734) Balance at end of financial year 4,087,098 5,192,590 SenSen Annual Report 2026 sensen.ai 70 22. RESERVES 23. CONTINGENT LIABILITIES 24. RELATED PARTY TRANSACTIONS (c) Nature and purpose of reserves i. Share-based payment reserve The share-based payment reserve is used to record the value of share-based payments provided to employees, including key management personnel, as part of their remuneration. ii. Foreign exchange translation reserve The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations where their functional currency is different to the presentation currency of the reporting entity. The Group had no known contingent liabilities at 30 June 2026 (2025: nil) a) Director Loans During the period Subhash Challa maintained a loan arrangement with the Company, accruing interest at the rate of 9.43% per annum. Drawdowns totalling $100,000 and repayments of $410,000 were made in the period, along with interest paid of $5,262. The outstanding loan balance at 30 June 2026 was $nil (FY25: $310,000). b) Loans to Subsidiaries In the 2025 financial year, a further loan was made to the Company’s Indian subsidiary, SenSen Video Intelligence PVT Ltd, for INR 8,000,000 (AUD$140,125.76). This loan was repaid in full in April 2025 including interest of INR 246,438 (AUD$4,632). There were no other related party transactions during the period other than those shares issued as noted in Note 21, Issued Capital. N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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25. EVENTS AFTER THE REPORTING PERIOD On 24 August 2026, the Company announced that it had signed a two-year contract with the Environment Protection Authority (EPA) Victoria, with a total contract value of approximately $889,000, to trial an intelligent vehicle noise (acoustic camera) enforcement solution. The trial involves the deployment of seven acoustic enforcement cameras across Victorian noisy vehicle hotspots, extending the Company's SenDISA platform into environmental enforcement. No other significant events took place after the reporting period that were outside of the ordinary course of business. 26. KEY MANAGEMENT PERSONNEL DISCLOSURES (a) Key Management Personnel compensation Detailed remuneration disclosures are provided in the Remuneration Report on pages 24 to 34. (b) Equity instrument disclosures relating to Key Management Personnel compensation Details of Key Management Personnel option and share holdings are disclosed in the Remuneration Report. 27. SHARE BASED PAYMENTS Share Based Payments were made under the management Long Term Incentive programs in the year ended 30 June 2026 and under both the Salary Sacrifice Share Scheme and management Long Term Incentive programs in the year ended 30 June 2025. Salary Sacrifice Share Scheme In May 2023 the Company launched an employee salary sacrifice share scheme whereby management were invited to sacrifice 20% of their salary in exchange for SenSen shares. In addition to the 20%, employees entering into the plan also received an additional 2% of their monthly salary as shares. Under this plan, 1,078,416 shares were issued to ke management personnel during the 2025 financial year fulfilling the requirements of the scheme. Share Rights The following share rights were issued as part of compensation to key management personnel during the year ended 30 June 2026. A long-term incentive (LTI) scheme was approved at the Company’s annual general meeting on 28 November 2024. The number of shares to be issued will be calculated as follows: • An agreed percentage of eligible employee’s annual salary; • Number of shares to be issued based on the 5-day Volume Weighted Average Price (VWAP) prior to the Company’s Financial Year results announcement. • A combination of an eligible employee’s length of service and the Company meeting internal measure targets in the most recent Financial Year. Internal measure targets include: o Continual service period; o Revenue hurdles; and o EBITDA excluding share-based payments hurdles. Consolidated 2026 2025 $ $ Short-term employee benefits 717,022 775,879 Post-employment benefits 73,651 89,226 Long-term benefits - - Share-based payments 90,909 202,331 881,582 1,067,436 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S SenSen Annual Report 2026 sensen.ai 71
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27. SHARE BASED PAYMENTS (CONTINUED) These hurdles are considered non-market vesting conditions and the probability of being met is taken into account when determining the expense to be recognised in each period. The rights to shares vest annually if the following three targets are achieved by SenSen employees: Grants Target measures Financial Year Grant dates1 Service Revenue Target Revenue Stretch Target EBITDA excl. SBP Target EBITDA excl. SBP Stretch Target 2023/2024 Various 50% 40% 8% 10% 2% 2024/2025 Various 50% 40% 8% 10% 2% 2025/2026 Various 50% 40% 8% 10% 2% 1 For the different relevant employees The actual number of shares to be issued to each employee is based on the above fixed percentages of their salary at grant date. A summary of the value expensed, and the number of shares issued is detailed below. Share rights to these three grants vest annually once the Company issues its Annual Report by the end of August 2026. This report will provide revenue and EBITDA (excluding share-based payments) results that will be used to determine whether individual tranches vest. The following tables outline the individual annual hurdles/targets required in order for annual share rights to be awarded and vest: Annual Hurdles/Targets Service Target The service target is assessed each year at 30 June. Revenue target • First vesting date – FY24 Revenue 25% greater than FY23 revenue, as recorded in the 30 June 2024 Annual Report • Second vesting date Revenue 25% greater than hurdle revenue established at first vesting date (i.e. audited full year revenue for FY25) • Third vesting date Revenue 25% greater than hurdle revenue established at second vesting date (i.e. audited full year revenue for FY26) • Continued service to vesting date Revenue stretch target • First vesting date – FY24 Revenue 35% greater than FY23 revenue, as recorded in the 30 June 2024 Annual Report • Second vesting date Revenue 35% greater than hurdle - revenue established at first vesting date (i.e. audited full year revenue for FY25) • Third vesting date Revenue 35% greater than hurdle Revenue established at second vesting date (i.e. audited full year revenue for FY26) • Continued service to vesting date Service Percentage of Rights Vesting Less than 12 months Nil Threshold: 1 year – 3 years 75% Target: 3 years + 100% N O T E S TO T H E F I N A N C I A LS T A T E M E N T S SenSen Annual Report 2026 sensen.ai 72
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EBITDA excluding share-based payments target • First vesting date – FY24 EBITDA excluding share-based payments 25% greater than FY23 EBITDA excluding share-based payments, as recorded in the 30 June 2024 Annual Report • Second vesting date EBITDA excluding share-based payments 25% greater than hurdle EBITDA excluding share-based payments established at first vesting date (i.e. audited full year EBITDA excluding share- based payments for FY25) • Third vesting date EBITDA 25% greater than hurdle EBITDA excluding share-based payments established at second vesting date (i.e. audited full year EBITDA excluding share-based payments for FY26) • Continued service to vesting date EBITDA excluding share-based payments stretch target • First vesting date – FY24 EBITDA excluding share-based payments 35% greater than FY23 EBITDA excluding share-based payments, as recorded in the 30 June 2024 Annual Report • Second vesting date EBITDA excluding share-based payments 35% greater than hurdle EBITDA excluding share-based payments established at first vesting date (i.e. audited full year EBITDA excluding share- based payments for FY25) • Third vesting date EBITDA 35% greater than hurdle EBITDA excluding share-based payments established at second vesting date (i.e. audited full year EBITDA excluding share-based payments for FY26) • Continued service to vesting date These share rights are issued for nil consideration based on a five-day VWAP of the Company’s share price prior to the lodgement of the Annual Report is lodged based on the relevant percentage of the employee salary. For 2026, none of the targets were met as shown below: 1 Based on FY26 audited financial statements. For 2025, the Revenue, EBITDA excluding share-based payments and EBITDA excluding share-based payments stretch targets were met and Revenue stretch target was not met as shown below: For 2024, the EBITDA excluding share-based payments and EBITDA excluding share-based payments stretch targets were met and the Revenue targets were not met as shown below: SenSen Annual Report 2026 sensen.ai 73 27. SHARE BASED PAYMENTS (CONTINUED) Target Measure Target $ Actual Result Target met?1 Revenue $19,198,836 $15,392,931 No Revenue Stretch $20,734,743 $15,392,931 No EBITDA excl. SBP $3,820,593 $1,930,548 No EBITDA excl. SBP Stretch $4,126,240 $1,930,548 No Target Measure Target $ Actual Result Target met? Revenue $15,180,575 $15,359,069 Yes Revenue Stretch $16,395,021 $15,359,069 No EBITDA excl. SBP ($194,757) $3,056,474 Yes EBITDA excl. SBP Stretch ($168,789) $3,056,474 Yes Target Measure Target $ Actual Result Target met? Revenue $13,495,654 $12,144,460 No Revenue Stretch $16,395,021 $12,144,460 No EBITDA excl. SBP ($3,923,089) ($259,676) Yes EBITDA excl. SBP Stretch ($3,400,011) ($259,676) Yes N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 74 27. SHARE BASED PAYMENTS (CONTINUED) Year 2 Grant Date Vest date Service Revenue EBITDA excl. SBP EBITDA excl. SBP Stretch Discretionary Grant Total Shares issued 1 50% 40% 10% 20% N/A 2024 Various 30 Jun 24 $400,692 - $83,238 $6,659 - $490,589 15,128,733 2025 Various 30 Jun 25 $498,620 $411,105 $102,777 $20,554 - $1,033,056 36,894,860 2026 Various 30 Jun 26 $454,670 - - - - $454,670 N/A $1,353,982 $411,105 $186,015 $27,213 - $1,978,315 52,023,593 1 Final number of shares to be issued will be determined based on a five-day VWAP of the Company’s share price prior to the lodgement of the Annual Report. 2 Being the year for which employee’s criteria for which performance criteria for vesting are assessed. Performance Rights Two Performance Rights were issued during the year (2025: nil). In 2024, Performance Rights were issued to Executive Directors as approved by shareholders at the Company’s annual general meeting on 28 November 2023. The performance rights give Executive Directors the right to participate in the Company’s long-term incentive (LTI) scheme. Performance Rights outstanding at the end of the year are as follows: 2026 Grant date Expiry date Exercise Price Balance at the start of the year Granted Exercised Expired/ forfeited/ Other Balance at the end of the year 1 December 2024 None N/A 6 - 3 - 3 11 December 2025 None N/A - 2 - - 2 6 2 3 - 5 2025 Grant date Expiry date Exercise Price Balance at the start of the year Granted Exercised Expired/ forfeited/ Other Balance at the end of the year 1 December 2024 None N/A 10 - 4 - 6 10 - 4 - 6 N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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SenSen Annual Report 2026 sensen.ai 75 28. PARENT ENTITY INFORMATION Parent entity information required to be disclosed in accordance with the Corporations Act 2001. The legal parent entity of the group is SenSen Networks Limited, and the results shown below are for the 12 months ended 30 June 2026 and 2025: (a) Summary financial information Parent entity 2026 2025 $ $ Statement of profit or loss and other comprehensive income Loss for the year - (4,776) Other comprehensive income - - Total comprehensive loss for the year - (4,776) Statement of financial position of the parent entity at year end Current assets 2,428 2,428 Non-current assets - - Total assets 2,428 2,428 Current liabilities - - Non-current liabilities 1,020,076 1,020,076 Total liabilities 1,020,076 1,020,076 Net assets (1,017,648) (1,017,648) Issued capital 40,322,041 40,322,041 Accumulated losses (41,339,689) (41,339,689) Total equity (1,017,648) (1,017,648) (b) Guarantees entered into by the parent entity The parent entity has not entered into any guarantees at the 30 June 2026 and 30 June 2025. (c) Contingent liabilities of the parent entity The parent entity did not have any contingent liabilities as at 30 June 2026 and 30 June 2025. (d) Contractual commitments for the acquisition of property, plant or equipment As at the 30 June 2026, the parent entity has made no contractual commitments for the acquisition of plant or equipment. (e) Determining the parent entity financial information The financial information for the parent entity has been prepared on the same basis as the consolidated financial statements, except for the investments in subsidiaries which are accounted for at cost in the financial statements of SenSen Networks Limited. N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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Consolidated 2026 2025 $ $ Financial assets Cash and cash equivalents 1,940,724 2,832,996 Trade and other receivables 2,702,859 2,399,785 Contract assets 532,941 504,057 5,176,524 5,736,838 Financial liabilities Trade and other payables 2,247,141 2,451,995 Contract Liabilities 695,507 401,060 Lease Liabilities 212,188 473,880 Borrowings 1,944,331 2,152,822 5,099,167 5,479,757 SenSen Annual Report 2026 sensen.ai 76 29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Company monitors its exposure to key financial risks, principally market risk (including currency risk), interest risk, credit risk and liquidity risk, with the objective of achieving the Company’s financial targets whilst protecting future financial security. The main risks arising from the Company's financial instruments are liquidity risk, interest rate risk and credit risk. The Company uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rates and assessments of market forecasts for interest rates. Liquidity risk is monitored through the development of future rolling cash flow forecasts and regular internal reporting. Credit risks are managed by credit limits and retention of the title over the investments sold. The Board reviews and agrees policies for managing each of these risks as summarised below. Primary responsibility for identification and control of financial risks rests with the Board. It reviews and agrees policies for managing each of the risks, including the use of derivatives, hedging cover of interest rate exposure, credit allowances, and future cash flow forecast projections. (a) Market Risk Foreign exchange risk Exchange Risk arises whereby currency exchange rates may affect the assets and liabilities and the consolidation of companies within the Group. The Company reports in Australian Dollars; the operating currency for the Indian subsidiary is the Indian Rupee, the operating currency for the US subsidiary is US Dollars, the operating currency for the Singapore subsidiary is Singapore Dollars, and the operating currency for the Canadian subsidiary is Canadian Dollars. (b) Interest Risk The Company maintains an R&D incentive facility with Rocking Horse Group of $2,000,000 which is repaid annually upon receipt of the Company’s R&D tax offset. This loan incurs interest at a rate of 16.00% p.a. The Company maintains a working capital facility with Finanzor of $1,200,000 which incurs interest at a rate of 12.14% p.a. Group sensitivity At 30 June 2026 if interest rates had increased/decreased by 50 basis points from the year end rates with all other variables held constant, the result would not be material at $9,722 (2025: $10,764). Based on movements in interest rates the Company regularly reviews the deployment of funds and the exposure to interest rate risk in conjunction with currency and exchange rate risk in order to manage these risks in line with corporate objectives. N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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(c) Credit Risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from other third parties, investments, banks and financial institutions. The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. A general security deed is held by Rocking Horse Nominees Pty Ltd at 30 June 2026 and credit risk is reviewed regularly by the Board. The Group does not have any other material credit risk exposure to any single counterparty, except for its holdings of cash which are held with the Commonwealth Bank, Royal Bank of Canada, Wells Fargo Bank, DBS Bank Ltd and ICICI Bank. The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. Approach to determining expected credit losses To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to the Group’s right to consideration for performance completed to date before payment is due and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Group has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets. The expected loss rates are based on the historical payment profiles. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables including consideration of the uncertain economic environment. For the year ended 30 June 2026, the Group has considered whether the expected loss rates are required to be increased due to the uncertain economic environment. The Group has identified the GDP, country specific unemployment rates and the outlook for customer industries as the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors. Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. The Group has assessed that there is no material credit loss exposure on trade receivables and contract assets. Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. Trade and other receivables The Group limits its exposure to credit risk by limiting itself to transactions with high credit quality financial institutions principally government bodies and large listed corporate firms. SenSen Annual Report 2026 sensen.ai 77 29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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(d) Liquidity Risk The table below reflects all contractually fixed payoffs and receivables for settlement from recognised financial assets and liabilities, as of 30 June 2026. The amounts disclosed are undiscounted cash flows anticipated to eventuate in the next fiscal year. Cash flows for financial assets and liabilities without fixed amount or timing are based on the conditions existing at 30 June 2026. SenSen Annual Report 2026 sensen.ai 78 29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Total < 6 Mths 6-12 Mths 1-5 Yrs 2026 $ $ $ $ Financial assets Cash and cash deposits 1,940,724 1,940,724 - - Trade and other receivables 2,702,859 2,702,859 - - Contract assets 532,941 532,941 - - 5,176,524 5,176,524 - - Financial liabilities Trade and other payables 2,247,141 2,247,141 - - Contract liabilities 695,507 376,256 263,461 55,790 Borrowings 1,944,331 1,944,331 - - Lease liabilities 212,188 104,793 80,087 27,308 5,099,167 4,672,521 343,548 83,098 Net maturity 77,357 504,003 (343,548) (83,098) Total < 6 Mths 6-12 Mths 1-5 Yrs 2025 $ $ $ $ Financial assets Cash and cash deposits 2,832,996 2,832,996 - - Trade and other receivables 2,399,785 2,399,785 - - Contract assets 504,057 504,057 - - 5,736,838 5,736,838 - - Financial liabilities Trade and other payables 2,451,995 2,451,995 - - Contract liabilities 401,060 401,060 - - Borrowings 2,152,822 925,000 1,227,822 - Lease liabilities 473,880 131,710 129,979 212,191 5,479,757 3,909,765 1,357,801 212,191 Net maturity 257,081 1,827,073 (1,357,801) (212,191) The contractual maturities of the Company’s financial assets and liabilities set out in the table are equivalent to the maturity analysis of financial assets and liabilities based on management's expectation. The risk implied from the values in the table reflects a balanced view of cash inflows and outflows, noting however that cash inflows from new sales are expected to cover any maturity deficit in the near term. N O T E S TO T H E F I N A N C I A LS T A T E M E N T S
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C O N S O L I D A T E D E N T I T Y D I S C L O S U R E S T A T E M E N T The following are subsidiaries of the Group, are controlled entities and have been consolidated at 30 June 2026. * SenSen Networks Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime Name of subsidiary Country of incorporation Ownership Interest (%) Tax residency SenSen Networks Group Pty Ltd Australia 100% Australia * SenSen Networks Operations Pty Ltd Australia 100% Australia * SenSen Networks Gaming Pty Ltd Australia 100% Australia * SenSen Networks Singapore Pte Limited Singapore 100% Singapore SenSen Video Business Intelligence PVT Ltd India 100% India SenSen Networks, Inc. United States 100% United States SenSen Networks Canada Ltd Canada 100% Canada Scancam Industries Pty Ltd Australia 100% Australia * Scancam Leasing Pty Ltd Australia 100% Australia * Scancam Operations Pty Ltd Australia 100% Australia * Fuel Recovery Services Australia Pty Ltd Australia 100% Australia * Orpheus Energy Group Pty Ltd Australia 100% Australia* SenSen Annual Report 2026 sensen.ai 79 CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT 30 JUNE 2026
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D I R E C T O R S ’ D E C L A R A T I O N Directors’ Declaration In accordance with a resolution of the Directors of SenSen Networks Limited, the Directors of the Company declare that: 1. the financial statements and notes, as set out on pages 37-78: a) comply with Australian Accounting Standards and interpretations, and Corporations Act 2001 and Corporations Regulations 2001, which confirms compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board; and b) give a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the financial year ended on that date; 2. in the Directors opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; 3. the information disclosed in the attached consolidated entity disclosure statement is true and correct; and 4. the Directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer. Mark Brayan Chair Dated: 27 August 2026 SenSen Annual Report 2026 sensen.ai 80
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I N D E P E N D E N T A U D I T O R ’ S R E P O R T SenSen Annual Report 2026 sensen.ai 81
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I N D E P E N D E N T A U D I T O R ’ S R E P O R T SenSen Annual Report 2026 sensen.ai 82
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I N D E P E N D E N T A U D I T O R ’ S R E P O R T SenSen Annual Report 2026 sensen.ai 83
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I N D E P E N D E N T A U D I T O R ’ S R E P O R T SenSen Annual Report 2026 sensen.ai 84
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I N D E P E N D E N T A U D I T O R ’ S R E P O R T SenSen Annual Report 2026 sensen.ai 85
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A S X A D D I T I O N A L I N F O R M A T I O N ( U N A U D I T E D ) Additional information required under ASX Listing Rule 4.10 and not shown elsewhere in this Annual Report is as follows. This information is current as at 5 August 2026. (a) Distribution of Shareholders The distribution of issued fully paid ordinary shares is as follows: (b) Distribution of Performance Rights Holders The distribution of unquoted Performance Rights on issue are: (c) Distribution of Options The distribution of unquoted options on issue are: (d) Less than marketable parcels of ordinary shares. There are 956 shareholders with unmarketable parcels totalling 5,204,021 shares. SenSen Annual Report 2026 sensen.ai 86 Size of Holding Number of Shareholders Ordinary Shares % of Issued Capital 100,001 and Over 496 798,890,333 96.26% 10,001 to 100,000 712 27,785,179 3.35% 5,001 to 10,000 248 1,983,558 0.24% 1,001 to 5,000 419 1,216,655 0.15% 1 to 1,000 142 56,610 0.01% Total 2,017 829,932,335 100.00% Size of Holding Number of Holders Unlisted Performance Rights % of Total Performance Rights 100,001 and Over - - - 10,001 to 100,000 - - - 5,001 to 10,000 - - - 1,001 to 5,000 - - - 1 to 1,000 1 5 100.00% Total 1 5 100.00% Size of Holding Number of Holders Unlisted Options % of Total Options 100,001 and Over 1 2,900,000 100.00% 10,001 to 100,000 - - - 5,001 to 10,000 - - - 1,001 to 5,000 - - - 1 to 1,000 - - - Total 1 2,900,000 100.00%
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A S X A D D I T I O N A L I N F O R M A T I O N ( U N A U D I T E D ) (e) 20 Largest Shareholders The twenty largest shareholders of quoted equity securities are as follows: (f) Unquoted Equity Securities The Company had the following unquoted options on issue as at 5 August 2026: 1 holder, Mr Mark Brayan, of Director Options. The Company had the following unquoted performance rights on issue as at 5 August 2026: 1 holder, Mr Subhash Challa, of performance rights. (g) Substantial Shareholders (h) Restricted Securities The Company had no restricted securities on issue as at 5 August 2026. (i) Voting Rights In accordance with the Constitution each member present at a meeting whether in person, or by proxy, or by power of attorney, or in a duly authorised representative in the case of a corporate member, shall have one vote on a show of hands, and one vote for each fully paid ordinary share, on a poll. Performance rights and Options have no voting rights. (j) On-Market Buy-Backs There is no current on-market buy-back in relation to the Company’s securities. SenSen Annual Report 2026 sensen.ai 87 Shareholder Number of Ordinary Fully Paid Shares % of Issued Capital Equity Plan Services Pty Ltd 197,175,272 23.76% Mizikovsky Group & related parties 136,500,926 16.45% Mr Subhash Challa 110,545,360 13.32% Fully Paid Ordinary Shareholders Number Percentage 1 EQUITY PLAN SERVICES PTY LTD 197,175,272 23.76% 2 ANKLA PTY LTD 127,564,403 15.37% 3 SPEEDSHIELD TECHNOLOGIES PTY LTD 34,819,722 4.20% 4 CITICORP NOMINEES PTY LIMITED 25,226,767 3.04% 5 SAPHET CAPITAL MANAGEMENT PTY LTD 23,974,887 2.89% 6 SANDHURST TRUSTEES LTD <JMFG CONSOL A/C> 20,811,668 2.51% 7 MR SUBHASH CHALLA 33,690,963 4.06% 8 NEERA GUPTA 12,711,016 1.53% 9 BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT> 11,993,078 1.45% 10 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 10,697,640 1.29% 11 MR WILLIAM MORAN 9,232,976 1.11% 12 SUNSTAR AUSTRALIA PTY LTD 7,844,106 0.95% 13 MR SATISH GUPTA 6,874,701 0.83% 14 MR DAVID EDWARD SMITH 6,789,221 0.82% 15 MNA INVESTMENTS PTY LTD <BRAYAN FAMILY A/C> 5,923,777 0.71% 16 HONNE INVESTMENTS PTY LIMITED 5,750,000 0.69% 17 MR SHARATHCHANDRA REDDY GUNUPATI 5,632,915 0.68% 18 CHAD INVESTMENTS PTY LTD 5,572,922 0.67% 19 GASMERE PTY LTD 5,443,664 0.66% 20 K R KHATRI (DENTAL) PTY LTD <R K & K R KHATRI S/F A/C> 5,000,000 0.60% Top 20 holders of Ordinary Fully Paid Shares 562,729,698 67.80% Total Remaining Holders Balance 267,202,637 32.20% Total Quoted Equity Securities 829,932,335 100.00%
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