Interim report
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Titomic Limited Appendix 4D 1. Company details Name of entity Titomic Limited ABN: 77 602 793 644 Reporting period: For the half-year ended 30 June 2026 Previous period: For the half-year ended 30 June 2025 Change to the Financial Year 2. Results for announcement to the market $ Revenues from ordinary activities down 11.1% to 4,869,881 Loss from ordinary activities after tax up 45.3% to (19,351,495) Total comprehensive loss attributable to owners up 45.4% to (20,231,455) 3. Distributions Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the current financial period. 4. Net tangible assets Reporting period $ Previous period $ Net tangible assets per ordinary security 0.0195 0.0299 5. Explanation of results 6. Control gained over entities The consolidated entity elected to change its financial year end from 30 June to 31 December to align its reporting dates with its United States and Netherlands based subsidiaries in the immediately preceding reporting period. This financial report is for the half-year ended 30 June 2026 in which the comparative results presented refer to the half- year ended 30 June 2025 for the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Cash Flows. The Statement of Financial Position contains a comparative Statement of Financial Position as of the end of the immediatel y preceding reporting period, being 31 December 2025. Refer to the Review of Operations within the directors' report. N/A 1
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Titomic Limited Appendix 4D 7. Loss of control over entities 8. Details of associates and joint venture entities 30-Jun-26 30-Jun-25 30-Jun-26 30-Jun-25 % % $000s $000s 49.00 49.00 - - 9. Review Dag W.R. Stromme Chair 31 August 2026 The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. N/A Repkon Titomic Üretim Teknolojileri Sanayi Ve Ticaret Anonim Şirketi (Repkon Joint Venture) Reporting entity's percentage holding Contribution to net profit / (loss) 2
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Titomic Limited Corporate directory For the half-year ended 30 June 2026 Directors Mr Dag W.R. Stromme (Executive Chair) Mr Humphrey Nolan (Independent Non-Executive Director) Mr Andreas Schwer (Independent Non-Executive Director) Ms Mira Ricardel (Independent Non-Executive Director) Mr John Frewen, AO, DSC (Independent Non-Executive Director) Mr Henry 'Trey' Obering (Independent Non-Executive Director) (appointed 11 March 2026) Mr Jim Simpson (Managing Director) Company Secretar y Mr Geoff Hollis 15091 Al Hwy 20 Madison, Huntsville, AL 35756 United States of America Unit 1, 371 Ferntree Gully Road Mount Waverley, Victoria, 3149 Australia Mars 14 8448 CP, Heerenveen The Netherlands Share Registr y Computershare GPO Box 3224 Melbourne, Victoria, 3001, Australia Auditors RSM Australia Partners Level 27, 120 Collins Street Melbourne, Victoria, 3000, Australia ASX ticker ASX: TTT Website http:/titomic.com/ Principal Place of Business and Global Headquarters (Titomic USA, Inc.) Principal Place of Business (Titomic Europe B.V.) Principal Place of Business and Registered Office (Titomic Limited) 3
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Titomic Limited Directors' Report For the half-year ended 30 June 2026 Directors' Report Directors Mr Dag W.R. Stromme Executive Chair Mr Humphrey Nolan Independent Non-Executive Director Mr Andreas Schwer Independent Non-Executive Director Ms Mira Ricardel Independent Non-Executive Director Mr John Frewen, AO, DSC Independent Non-Executive Director Mr Henry 'Trey' Obering Independent Non-Ex ecutive Director (appointed 11 March 2026) Mr Jim Simpson Managing Director Mr Geoff Hollis CFO and Company Secretary Principal activities Dividends Change of financial year end Review of operations Operating loss for the half-year ended 30 June 2026 after providing for income tax was $19,351,495 (half-year ended 30 June 2025: $13,315,878 loss) and materially in line with expectations. During the half-year the consolidated entity incurred increased operating expenditure reflecting deliberate investment in U.S.-based production capacity, certification progression, and operational scaling aligned with defence industrial demand. The consolidated entity continued its transition toward recurring production and sustainment revenue streams. Refer to this report for further discussion. The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Titomic Limited (referred to hereafter as the 'Company' or 'parent entity' or ‘Titomic’) and the entities it controlled at the end of, or during the half-year ended 30 June 2026. There were no dividends paid, recommended or declared during the current or previous financial year. The following persons were directors and company secretary of Titomic Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Titomic Limited is an ASX listed company headquartered in Huntsville, Alabama, United States with operations in Melbourne, Australia and Heerenveen, The Netherlands. Titomic, with its patented cold spray technology, Titomic Kinetic Fusion TM, delivers efficient production-scale capabilities for the manufacture and sustainment of large, high-performance components and critical assets. By delivering new manufacturing possibilities and enhanced performance, Titomic offers novel, rapid, and efficient manufacturing and sustainment outcomes across aerospace, defense, energy, and other advanced industrial sectors. The consolidated entity’s strategic focus prioritises propulsion components, naval sustainment, semiconductor manufacturing support, and energy infrastructure resilience within the U.S. and allied defense industrial base. The consolidated entity elected to change its financial year end from 30 June to 31 December to align its reporting dates with its United States and Netherlands based subsidiaries in the immediately preceding reporting period. This financial report is for the half- year ended 30 June 2026 in which the comparative results presented refer to the half-year ended 30 June 2025 for the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Cash Flows. The Statement of Financial Position contains a comparative Statement of Financial Position as of the end of the immediately preceding reporting period, being 31 December 2025. 4
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Titomic Limited Directors' Report For the half-year ended 30 June 2026 Revenue and other income Operating expenses Liquidity Outlook Corporate and administrative expenses for the half-year ended 30 June 2026 were $10,910,835 (half-year ended 30 June 2025: $7,201,224). The increase in expenses is mainly due to the consolidated entity's significant expansion in the United States including U.S. redomicile related costs, with expenses for the half-year end 30 June 2026 of $5,611,471 (half-year ended 30 June 2025: $2,478,874). Corporate and administrative expenses in Australia and Europe have remained relatively consistent. The consolidated entity had cash at 30 June 2026 of $14,256,743 (31 December 2025: $35,765,201). The consolidated entity is pursuing a combination of non-dilutive and equity funding to support its strategic growth initiatives in the United States, Europe and Australia. Successful completion of these financing initiatives would strengthen the consolidated entity’s balance sheet, reduce execution risk and provide additional flexibility to pursue large-scale defence and aerospace opportunities. Based on its current contracted backlog, awarded programs and anticipated conversion of existing customer opportunities, the consolidated entity expects revenue growth during the remainder of calendar year 2026, driven by production manufacturing contracts with defense primes, expanded sustainment activity within energy and maritime sectors, and machine sales and leasing activity. The timing and extent of revenue growth remains subject to customer schedules, contract execution, qualification activity and delivery timing. As additional financing is secured and gross margins, production utilisation and operating efficiency improve, the consolidated entity expects increased operating leverage as global, and particularly U.S., production activity matures. While the consolidated entity remains in an investment phase, management continues to target progress toward annualised operating cash flow breakeven during 2027, subject to revenue growth, production ramp-up, gross margin improvement and successful execution of the Company’s financing and operating plans. Sales, marketing and promotion expenses for the half-year ended 30 June 2026 were $1,606,607 (half-year ended 30 June 2025: $1,303,605). Sales, marketing and promotion expenses include direct marketing costs, salaries and wages related to sales and marketing employees and sales related travel expenses (i.e. for trade shows). The increase in expenses is shared across geographical regions and reflects increased sales and marketing efforts by the consolidated entity which is expected to lead to revenue growth in the remainder of 2026 and beyond. Sales, marketing and promotion expenses Production and related expenses Corporate and administrative expenses Other revenue for the half-year ended 30 June 2026 was $1,361,291 (half-year ended 30 June 2025: $1,102,420), primarily comprised of the Research and Development Tax Incentive, interest received and grant income. Total revenue for the half-year ended 30 June 2026 was $4,869,881 (half-year ended 30 June 2025: $5,476,163). Total expenses for the half-year ended 30 June 2026 were $24,221,376 (half-year ended 30 June 2025: $18,966,205). Included in expenses are non-cash related costs (share based payments, depreciation, amortisation and notional interest expenses) of $5,288,494 (half-year ended 30 June 2025: $5,168,385). Revenue from contracts with customers for the half-year ended 30 June 2026 was $3,508,590 (half-year ended 30 June 2025: $4,373,743). Underpinning revenues in the half-year ended 30 June 2026 were revenues from contract with a U.S. defence prime of $1,279,850. Other sales revenue comprised key prototyping and manufacturing validation contracts with defence primes, government and industrial customer base. Production and related expenses for the half-year ended 30 June 2026 were $5,909,655 (half-year ended 30 June 2025: $5,083,022). Included are all costs of production such as material, salaries and wages factory related costs as well as research and development expenses. The increase in production and related expenses is mainly due to the consolidated entity's significant expansion in the United States together with system sales to U.S. based customers with expenses for the half-year ended 30 June 2026 of $2,777,724 (half-year ended 30 June 2025: $1,982,210). 5
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Titomic Limited Directors' Report For the half-year ended 30 June 2026 Significant changes in state of affairs Matters subsequent to the end of the financial year Rounding of amounts Auditor's independence declaration Dag W.R. Stromme Chair 31 August 2026 On behalf of the directors The company is of a kind referred to in Corporations Instrument 2016/183, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar. A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001. The Company anticipates completing the redomicile in second half of calendar year 2026. The transaction is expected to be implemented by way of a Scheme of Arrangement between Titomic and its shareholders and will be subject to shareholder approval and approval of the Federal Court of Australia. There are no matters or circumstances that have arisen since 30 June 2026 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. During the half-year ended 30 June 2026, the consolidated entity has announced its plan to redomicile to the United States. The proposed redomicile reflects the deepening of Titomic's activities within U.S. defence, aerospace, and industrial markets. The United States represents the largest global market for advanced manufacturing solutions supporting the modernisation of the defence and domestic industrial base. Under the proposed structure, Titomic has established a U.S. based holding company ("HeadCo"), which is intended to become the new parent company of the Titomic Group following implementation of the proposed Scheme of Arrangement. Subject to the terms of the Scheme of Arrangement, applicable law and the treatment of any ineligible or foreign shareholders, existing eligible shareholders of Titomic Limited are expected to retain substantially equivalent proportional economic interests in HeadCo through Chess Depository Interests. The proposed redomicile is not expected to materially change the Company’s underlying global operating strategy or strategic direction. Following completion of the redomicile, the Company intends to pursue a listing on a U.S. securities exchange, subject to market conditions, regulatory requirements, applicable approvals and further Board approval. A U.S. listing would further expand access to global capital markets and support Titomic's growth strategy to scale advanced manufacturing production across defence, aerospace, energy, and industrial sectors. 6
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THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation RSM Australia Partners Level 27, 120 Collins Street Melbourne VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199 www.rsm.com.au AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of Titomic Limited and its Controlled Entities for the half- year ended 30 June 2026, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the aud itor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any appl icable code of professional conduct in relation to the review. RSM AUSTR ALIA PARTNERS B Y CHAN Par tner Dated: 31 August 2026 Melbourne, Victoria 7
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Titomic Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 30 June 2026 Note 30-Jun-26 30-Jun-25 $ $ Revenue Sales revenue 3 3,508,590 4,373,743 Other revenue 3 1,361,291 1,102,420 4,869,881 5,476,163 Fair value adjustment - 210,828 Expenses Production and related expense s (5,909,655) (5,083,022) Corporate and administrative expenses (10,910,835) (7,201,224) Sales, marketing and promotion expenses (1,606,607) (1,303,605) Other expenses (17,285) (88,187) Share based payments expenses 5 (3,777,126) (4,820,101) Depreciation expenses 4 (1,392,952) (227,725) Finance costs 4 (606,916) (242,341) (24,221,376) (18,966,205) Loss before income tax expense (19,351,495) (13,279,214) Income tax expense - (36,664) Net Loss after Income Tax Expense (19,351,495) (13,315,878) Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation reserve 16 (879,960) (599,926) Income tax relating to these items - - Other comprehensive loss, net of tax (879,960) (599,926) (20,231,455) (13,915,804) $$ Basic earnings (loss) per share 6 (0.0120) (0.0088) Diluted earnings (loss) per share 6 (0.0120) (0.0088) These financial statements should be read in conjunction with the accompanying notes. Total comprehensive loss for the year Attributable to the Owners of Titomic Limited 8
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Titomic Limited Consolidated Statement of Financial Position As at 30 June 2026 Note 30-Jun-26 31-Dec-25 $ $ Current Assets Cash and cash equivalents 14,256,743 35,765,201 Trade and other receivables 7 3,759,872 1,554,880 Inventories 8 6,730,445 3,437,885 Other current assets 734,029 456,254 Total Current Assets 25,481,089 41,214,220 Non-Current Assets Property, plant and equipment 9 30,874,784 26,843,936 Right-of-use assets 2,242,110 2,460,769 Other non-current assets 30,897 30,897 Total Non-Current Assets 33,147,791 29,335,602 Total Assets 58,628,880 70,549,822 Current Liabilities Trade and other payables 10 6,141,389 3,492,580 Provisions 11 1,373,161 1,004,759 Borrowings 12 5,605,584 4,484,813 Lease liabilities 13 301,749 356,820 Other financial liabilities 14 1,781,892 794,981 Total Current Liabilities 15,203,775 10,133,953 Non-Current Liabilities Provisions 11 95,407 135,122 Borrowings 12 8,356,630 8,675,033 Lease liabilities 13 2,149,918 2,401,652 Other financial liabilities 14 1,471,609 1,398,193 Total Non-Current Liabilities 12,073,564 12,610,000 Total Liabilities 27,277,339 22,743,953 Net Assets 31,351,541 47,805,869 Equity Issued capital 15 73,970,964 72,655,460 Reserves 16 17,565,856 15,984,193 Accumulated losses (60,185,279) (40,833,784) Total Equity 31,351,541 47,805,869 These financial statements should be read in conjunction with the accompanying notes. 9
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Titomic Limited Consolidated Statement of Changes in Equity For the half-year ended 30 June 2026 Issued Accumulated Notes Capital Reserves Losses Total Equity $ $ $ $ Balance as at 1 January 2025 104,624,190 10,051,094 (91,169,793) 23,505,491 Net loss after income tax - - (13,315,878) (13,315,878) Other comprehensive loss after tax - (599,926) - (599,926) Total comprehensive loss - (599,926) (13,315,878) (13,915,804) Transactions with owners in their capacity as owners Contributions of equity - - - Costs of contributions of equity - - - Share based payments 9,706 5,215,654 - 5,225,360 T echnical adjustment to share capital (81,503,186) - 81,503,186 - Balance as at 30 June 2025 23,130,710 14,666,822 (22,982,485) 14,815,047 Issued Accumulated Capital Reserves Losses Total Equity $ $ $ $ Balance as at 1 January 2026 72,655,460 15,984,193 (40,833,784) 47,805,869 Net loss after income tax - - (19,351,495) (19,351,495) Other comprehensive loss after tax - (879,960) - (879,960) Total comprehensive loss - (879,960) (19,351,495) (20,231,455) Transactions with owners in their capacity as owners Contributions of equity - - - - Costs of contributions of equity - - - - Share based payments 1,315,504 2,461,623 - 3,777,127 Balance as at 30 J une 2026 73,970,964 17,565,856 (60,185,279) 31,351,541 These financial statements should be read in conjunction with the accompanying notes. 10
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Titomic Limited Consolidated Statement of Cash Flows For the half-year ended 30 June 2026 Note 30-Jun-26 30-Jun-25 $ $ Cash Flows from Operating Activities Receipts from customers (inclusive of GST) 4,853,054 4,071,469 Payments to suppliers and employees (inclusive of GST) (20,446,991) (13,918,728) Interest received 772,859 364,874 Interest and other finance costs paid (494,201) (93,095) Income tax (paid) / refunded - (856) Government grants and tax incentives 740,630 709,135 Rental income from U.S. premises 85,654 - Net cash outflow from operating activitie s (14,488,995) (8,867,201) Cash Flows from Investing Activities Payment for property, plant and equipment (6,639,828) (14,559,800) Proceeds from / (payment for) other assets (security deposits) 15,000 124,888 Net cash outflow from investing activitie s (6,624,828) (14,434,912) Cash Flows from Financing Activities Proceeds from the issue of shares - 9,706 Share issue transactions costs - (42,497) Proceeds from borrowings 850,461 8,970,565 Repayment of borrowings (196,581) (211,090) Payment for the principal portion of lease liabilities (175,316) (205,603) Net cash inflow from financing activities 478,564 8,521,081 Net increase (decrease) in cash and cash equivalent s (20,635,259) (14,781,032) Cash and cash equivalents at start of period 35,765,201 24,110,576 Effects of exchange rate changes on cash and cash equivalents (873,199) (403,097) Cash and cash equivalents at end of period 14,256,743 8,926,447 These financial statements should be read in conjunction with the accompanying notes. 11
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 1 Material accounting policies information Change to the Financial Year Going Concern • • • The Directors have considered the status of the Company’s current financing initiatives, available liquidity, contractual commitments, forecast operating cash flows and the ability of management to moderate discretionary expenditure if required. The Directors will continue to closely monitor liquidity and the timing of planned financing initiatives. The consolidated entity has demonstrated an ability to manage its operating cost base and, if required, management has identified actions available to further reduce discretionary expenditure and defer certain non- essential capital and operating commitments in order to preserve liquidity. These general purpose financial statements for the interim half-year reporting period ended 30 June 2026 have been prepared in accordance with Australian Accounting Standards AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. The Directors believe that there are reasonable grounds to believe that the consolidated entity will be able to continue as a going concern, after consideration of the following factors: These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 31 December 2025 and any public announcements made by the consolidated entity during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. As disclosed in the financial statements, the consolidated entity incurred a loss of $19,351,495 and had net cash outflows from operating activities of $14,488,995 for the half-year ended 30 June 2026. These factors indicate a material uncertainty which may cast significant doubt as to whether the consolidated entity will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. As at 30 June 2026 the consolidated entity had net current assets of $10,277,314 and net assets of $31,351,541, including $14,256,743 of cash and cash equivalents; The consolidated entity elected to change its financial year end from 30 June to 31 December to align its reporting dates with its United States and Netherlands based subsidiaries in the immediately preceding reporting period. This financial report is for the half-year ended 30 June 2026 in which the comparative results presented refer to the half- year ended 30 June 2025 for the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Cash Flows. The Statement of Financial Position contains a comparative Statement of Financial Position as of the end of the immediately preceding reporting period, being 31 December 2025. The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business. The consolidated entity has prepared cash flow forecasts covering the period of at least 12 months from the date of approval of these financial statements. The forecasts indicate that, based on the assumptions contained therein, the consolidated entity is expected to maintain sufficient liquidity to meet its obligations as they fall due. These forecasts include assumptions regarding the successful completion and timing of additional equity and/or non-dilutive financing; and 12
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 1 Material accounting policies information (continued) Share-based payments Issued capital New or amended Accounting Standards and Interpretations adopted Rounding of amounts The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The company is of a kind referred to in Corporations Instrument 2016/183, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Accordingly, the Directors believe that the consolidated entity will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report. Share-based compensation benefits may be provided through the issue of fully paid ordinary shares under the Employee Share and Option Plan. Options may also be granted to employees and consultants in accordance with the terms of their respective employment and consultancy agreements. Any options granted to employees are made in accordance with the terms of the consolidated entity’s Employee Share and Option Plan (ESOP). The fair value of options granted under employment and consultancy agreements are recognised as share based payment expenses with a corresponding increase in equity. The fair value of the options are measured at grant date and recognised over the period during which the employees or consultants become unconditionally entitled to the options. The cost of transactions settled by share based payments are measured using an appropriate market based valuation model. Ordinary shares are classified as equity. AASB 18 Presentation and Disclosure in Financial Statements AASB 18 replaces AASB 101 Presentation of Financial Statements to improve how entities communicate in their financial statements, with a focus on information about financial performance in the profit or loss. The adoption of AASB 18 is expected to significantly impact the presentation and disclosure of the Group’s financial statements, particularly the statement of profit or loss, through mandatory categorisation of income and expenses, enhanced disclosure of management-defined performance measures, and revised subtotals aimed at improving transparency and comparability. AASB 18 mandatorily applies to annual reporting periods commencing on or after 1 January 2027 for for-profit entities excluding superannuation entities. It will first apply to the Company in the financial year commencing 1 July 2027. The likely impact of this accounting standard on the Company is yet to be determined. The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the consolidated entity does not continue as a going concern. 13
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 2 Segment information Identification of reportable operating segments • • • Intersegment transactions Intersegment receivables, payables and loans Australia U.S. Europe Consolidated 30-Jun-26 $$$$ Revenue External customer sales 382,074 1,832,905 1,293,611 3,508,590 Intersegment sales 155,550 - 1,580,580 1,736,130 Total sales revenue 537, 624 1,832,905 2,874,191 5,244,720 Grant revenue - - 136,929 136,929 R&D tax incentive 724,815 - - 724,815 Interest revenue 171,822 194,055 5,247 371,124 Other revenue 38,144 46,547 43,732 128,423 Intersegment management fees 993,197 352,651 - 1,345,848 Segment revenue 2,465,602 2,426,158 3,060,099 7,951,859 Intersegment eliminations (3,081,978) Total revenue 4,869,881 The consolidated entity is organised into three operating segments. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments. Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are eliminated on consolidation. The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements. The information reported to the CODM is on a monthly basis. The consolidated entity operates in three geographical segments; located in the U.S, Australia and Netherlands. Segment details are therefore already deemed to be fully reflected in the body of the financial report. Europe: Low and medium pressure cold spray additive manufacturing machines for use by end customers in providing various metal coating and repair services. Intersegment transactions were made at market rates. Intersegment transactions are eliminated on consolidation. U.S.: High, medium and low pressure cold spray additive manufacturing machines for use by end customers. Strategic sales activities in aerospace and defence industries. Operational headquarters of the consolidated entity. The principal products and services of each of these operating segments are as follows: Australia: High pressure, large scale cold spray additive manufacturing machines and manufactured products for customers in the aerospace, defence, oil and gas industries. R&D hub. 14
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 2 Segment information (continued) Australia U.S. Europe Consolidated 30-Jun-26 $$$$ EBITDA (7,254,196) (7,090,159) (1,224,575) (15,568,930) Depreciation and amortisation (169,695) (854,807) (368,450) (1,392,952) Interest (147,925) ( 407,057) (51,934) (606,916) Intersegment management fees (176,325) (509,102) (660,421) (1,345,848) Intersegment eliminations (436,849) Loss before income tax expense ( 7,748,141) (8,861,125) (2,305,380) (19,351,495) I n c o m e t a x e x p e n s e ---- Loss after income tax expense ( 7,748,141) (8,861,125) (2,305,380) (19,351,495) Assets Segment assets 75,701,900 44,531,998 12,563,736 132,797,634 Intersegment eliminations (74,168,754) Total assets 58,628,880 Liabilities Segment liabilities 10,126,258 71,251,195 16,203,344 97,580,797 Intersegment eliminations (70,303,458) Total liabilities 27,277,339 Australia U.S. Europe Consolidated 30-Jun-25 $$$$ Revenue External customer sales 235,453 2,264,645 1,873,645 4,373,743 Intersegment sales 241,970 - 1,329,428 1,571,398 Total sales revenue 477, 423 2,264,645 3,203,073 5,945,141 Grant revenue 20,000 - 71,019 91,019 R&D tax incentive 695,937 - - 695,937 Interest revenue 259,675 5,810 15,691 281,176 Other revenue 6,530 28,595 (837) 34,288 Intersegment management fees 1,379,613 1,034,711 278,653 2,692,977 Segment revenue 2,839,178 3,333,761 3,567,599 9,740,538 Intersegment eliminations (4,264,375) Total revenue 5,476,163 EBITDA (8,459,915) (4,398,711) 327,425 (12,531,201) Depreciation and amortisation (48,128) (27,568) (152,029) (227,725) Interest (144,403) ( 50,781) (47,157) (242,341) Intersegment management fees (813,208) (759,657) (1,120,112) (2,692,977) Intersegment eliminations 2,415,030 Loss before income tax expense (9,465,654) (5,236,717) (991,873) (13,279,214) Income tax expense - - (36,664) (36,664) Loss after income tax expense ( 9,465,654) (5,236,717) (1,028,537) (13,315,878) Assets as at 31-Dec-25 Segment assets 76,789,519 40,737,788 11,825,347 129,352,654 Intersegment eliminations (58,802,832) Total assets 70,549,822 Liabilities as at 31-Dec-25 Segment liabilities 7,242,863 58,894,283 13,241,247 79,378,393 Intersegment eliminations (56,634,440) Total liabilities 22,743,953 15
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 3 Revenue 30-Jun-26 30-Jun-25 $ $ Sales revenue Revenue from contracts with customers 3,508,590 4,373,743 3,508,590 4,373,743 Other revenue Research and development tax incentive 724,815 695,937 Other grants 136,929 91,019 Interest received 371,124 281,176 Other revenue 128,423 34,288 1,361,291 1,102,420 4,869,881 5,476,163 Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: 30-Jun-26 30-Jun-25 $ $ Major product lines Machines 692,638 3,819,735 Projects 2,246,973 165,590 Consumables 568,979 388,418 3,508,590 4,373,743 Geographical regions Australia 382,074 235,453 USA 1,832,905 2,264,645 Europe 1,293,611 1,873,645 3,508,590 4,373,743 Timing of revenue recognition Machines $ Projects $ Consumables $ Total $ 30-Jun-26 Goods and services transferred at a point in time 544,071 2,246,973 568,979 3,360,023 Goods and services transferred over time 148,567 148,567 692,638 2,246,973 568,979 3,508,590 30-Jun-25 Goods and services transferred at a point in time 2,617,305 165,590 388,418 3,171,313 Goods and services transferred over time 1,202,430 - - 1,202,430 3,819,735 165,590 388,418 4,373,743 16
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 4E x p e n s e s Note 30-Jun-26 30-Jun-25 $ $ Employee benefits expenses Share-based payments 3,777,127 4,820,101 Superannuation 526,364 560,200 Salaries, wages and other employee benefits 7,217,024 4,824,729 11,520,515 10,205,030 Depreciation and amortisation expenses Depreciation on property, plant and equipment 9 1,308,722 140,602 Depreciation on right of use assets 84,230 87,123 1,392,952 227,725 Finance costs Interest on lease liabilities 62,631 68,351 Interest on loans (U.S. premises & capital equipment) 407,057 50,781 Notional interest on other liabilities 18,812 2,650 Other interest 118,416 120,559 606,916 242,341 5 Share based payment expenses 30-Jun-26 30-Jun-25 $ $ Share-based payments - directors 1,012,672 3,835,022 Share-based payments - employees & consultants 2,764,455 985,079 3,777,127 4,820,101 6 Earnings / (loss) per share 30-Jun-26 30-Jun-25 $ $ Earnings / (loss) per share from continuing operations Net loss after income tax (19,351,495) (13,315,878) Net loss after income tax attributable to the owners of Titomic Limited (19,351,495) (13,315,878) Number Number 1,605,970,571 1,505,589,601 1,605,970,571 1,505,589,601 $$ Basic earnings / (loss) per share (0.0120) (0.0088) Diluted earnings / (loss) per share (0.0120) (0.0088) Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share During a loss period, the effect of the potential exercise of stock options and performance rights is not considered in the diluted loss per share calculation since the effect would be anti-dilutive. 3,000,000 (30 June 2025: 65,892,858) rights and 191,929,286 (30 June 2025: 201,313,286) options have been excluded from the above calculations as their inclusion would be anti-dilutive. 17
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 7 Trade and other receivables 30-Jun-26 31-Dec-25 $ $ Trade receivables 2,631,074 1,092,057 Less: provision for estimated credit losses (17,724) (17,724) Interest receivable 3,203 418,685 Other receivables 1,143,319 61,862 3,759,872 1,554,880 8 Inventories 30-Jun-26 31-Dec-25 $ $ Raw materials at cost 5,839,742 1,188,089 Less: Provision for obsolescence (2,270,742) (395,885) Work in progress at cost 2,300,223 1,974,222 Less: Provision for obsolescence (621,653) (489,359) Finished goods at cost 1,482,875 1,160,818 6,730,445 3,437,885 9 Property, plant and equipment 30-Jun-26 31-Dec-25 $ $ Building fitouts 5,252,274 2,259,679 Less: accumulated depreciation (827,669) (540,906) Less: provision for impairment (22,540) (22,540) 4,402,065 1,696,233 Factory equipment & machinery 19,102,547 11,038,899 Less: accumulated depreciation (6,805,182) (6,081,590) Less: provision for impairment (720,694) (720,694) 11,576,671 4,236,615 Computer equipment & software 1,081,710 841,247 Less: accumulated depreciation (495,927) (411,490) Less: provision for impairment (30,768) (30,768) 555,015 398,989 Land & building 10,516,196 10,792,731 Less: accumulated depreciation (268,887) (148,850) 10,247,309 10,643,881 Capital work in progress 4,093,724 9,868,218 30,874,784 26,843,936 18
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 9 Property, plant and equipment (continued) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous periods are set out below: Building fitouts Factory equipment & machinery Computer equipment & software Land & building Capital work in progress Total $ $ $$$$ Balance at 1-Jul-25 260,527 1, 462,745 297,746 11,006,631 4,466,339 17,493,988 Additions 1,201,963 3,008,971 169,090 - 5,831,843 10,211,867 Transfer between classes 309,893 (197,595) (9,836) - (102,462) - Transfer from inventory - 192,203 - - (201,352) (9,149) Depreciation expense (73,342) ( 208,037) (53,335) (130,229) - (464,943) Intercompany eliminations - - - - (44,519) (44,519) Effect of foreign exchange (2, 808) (21,672) (4,676) ( 232,521) (81,631) (343,308) Balance at 31-Dec-25 1,696,233 4, 236,615 398,989 10,643,881 9,868,218 26,843,936 Additions 1,086,439 1,204,680 131,556 - 3,996,150 6,418,825 Transfer between classes 1,968,706 7,172,404 125,673 - (9,266,783) - Transfer from inventory - (26,662) - - (223,622) (250,284) Depreciation expense (298,244) ( 801,834) (87,565) (121,079) - (1,308,722) Intercompany eliminations - (105,527) - - 90,360 (15,167) Effect of foreign exchange (51, 069) (103,005) (13,638) ( 275,493) (370,599) (813,804) Balance at 30-Jun-26 4,402,065 11, 576,671 555,015 10,247,309 4,093,724 30,874,784 10 Trade and other payables 30-Jun-26 31-Dec-25 $ $ Trade payables 5,241,412 2,177,939 Accrued expenses 722,517 1,151,696 Other payables 177,460 162,945 6,141,389 3,492,580 11 Provisions 30-Jun-26 31-Dec-25 $ $ Current Employee benefits 1,037,568 760,716 Lease make good 30,000 - Warranties 141,814 75,957 Taxes payable on Tri-D transaction 163,779 168,086 1,373,161 1,004,759 Non-current Employee benefits 49,448 61,197 Lease make good 45,959 73,925 95,407 135,122 On 29 May 2025, the consolidated entity executed an agreement to acquire premises located at 15091 US Highway 20, Madison, Alabama 35756 in the United States. The purchase price was USD $7,200,000 (AUD $10,481,875) plus acquisition costs. U.S. premises purchase 19
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 12 Borrowings 30-Jun-26 31-Dec-25 $ $ Current Insurance premium funding 442,039 84,885 Interest-bearing loans (U.S. premises) 139,138 132,102 Interest-bearing loans (U.S. capital equipment) 4,949,774 4,183,475 Other 74,633 84,351 5,605,584 4,484,813 Non-current Interest-bearing loans (U.S. premises) 8,047,711 8,337,824 Other 308,919 337,209 8,356,630 8,675,033 Interest-bearing loans (U.S. premises) Interest-bearing loans (U.S. capital equipment) Other borrowings The bank loans are subject to certain covenants with the material covenants being as follows: - establishment of an escrow account equal to 18 months worth of principal and interest payments. These funds, totalling $1,094,793 (US$732,745) plus interests will be released from escrow when a debt service coverage of 1.25 times is reached. The financial covenants are assessed at the end of each fiscal year. The loans could be repayable immediately if the covenants are breached. The consolidated entity is not aware of any facts or circumstances that indicate that it may have difficulty complying with the covenants within 12 months after the reporting period. In June 2025, the consolidated entity entered into a vehicle loan with First National Bank of Pulaski for $133,048 (USD $91,391), incurring a fixed interest rate of 7.65% p.a. with repayments over 6 years. On 3 September 2025, the consolidated entity entered into an interest-bearing revolving line of credit (RLOC) loan agreement with First National Bank of Pulaski. The loan capacity was amended on 26 June 2026 and now has a maximum credit capacity of $5,823,264 (US$4,000,000) (previous capacity $10,918,620 (US$7,500,000)) and is secured by the consolidated entity's US$4,000,000 cash deposit. Any drawn amount from this RLOC will incur an interest at a rate of 6.12% which is paid monthly. As at balance date, $4,949,774 (US$3,400,000) has been drawn from this line of credit. In financial year ended 31 December 2025, the consolidated entity entered into two borrowing arrangements for metallurgy equipment for $137,524 and $172,658, incurring fixed interest rates of 10.12% p.a. and 10.82% p.a. respectively, with repayments over 5 years. During the current and prior periods, the consolidated entity utilised an insurance premium funding facility which is repaid in monthly instalments across the duration of the insurance premium. - borrower is expected to reach a debt service coverage of 1.25 times by 30 June 2027. - borrower's capital level will remain at the same level on the day of the loan's origination. The USD $3,760,000 tranche incurs interest at a rate of 7% p.a. (WSJ Prime Rate minus 0.5% p.a. fixed for five years) with principal and interest repayments over 25 years. The USD $2,000,000 tranche incurs interest at a rate of 6.5% p.a. (fixed for five years) and is repayable after five years with principal and interest repayments calculated using a 25 year schedule. This tranche is also secured by USD $1,000,000 collateral provided by Innovate Alabama to the First National Bank of Pulaski. On 29 May 2025, the consolidated entity entered into two interest-bearing loans with First National Bank of Pulaski. The loans were in two tranches of $5,473,868 (USD $3,760,000) and $2,911,632 (USD $2,000,000). Titomic USA, Inc. has granted a first mortgage to First National Bank of Pulaski as security for both loans over the land and buildings located at 15091 US Highway 20, Madison, Alabama 35756. 20
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 13 Lease liabilities 30-Jun-26 31-Dec-25 $ $ Current Lease liabilities - Australian factory 173,512 224,129 Lease liabilities - Netherlands manufacturing facility 128,237 132,691 301,749 356,820 Non-current Lease liabilities - Australian factory - 58,774 Lease liabilities - Netherlands manufacturing facility 2,149,918 2,342,878 2,149,918 2,401,652 Information in relation to the lease liabilities is below: Maturity analysis - contractual undiscounted cash flows Less than one year 402,989 473,416 One to two years 225,721 297,869 Two to five years 677,163 716,339 More than five years 1,881,008 2,109,222 Total undiscounted lease liabilities 3,186,881 3,596,846 Australian factory Netherlands manufacturing facility Equipment 14 Other financial liabilities 30-Jun-26 31-Dec-25 $ $ Current CSIRO IP liability 90,000 90,000 Variable deferred consideration for Dycomet (now Titomic Europe B.V.) acquisition 24,148 25,545 Contract liabilities 1,667,744 679,436 1,781,892 794,981 Non-current CSIRO IP liability 1,471,609 1,398,193 1,471,609 1,398,193 The lease for a new location for Titomic Europe's manufacturing facility located in Heerenveen, the Netherlands was executed effective from 1 November 2024 for an initial term of ten years with an expiry date of 31 October 2034. There is a five year option to extend at the end of the initial term. The consolidated entity has the below material leases for premises as follows: The lease for the existing location of the factory was extended effective from 1 April 2022 for a further five years with an expiry date of 31 March 2027. There is a five year option to extend at the end of the current term. The consolidated entity also entered leasing arrangements for its equipment. For low value office equipment, these leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets. For high value factory equipment, these leases are accounted as per AASB 16. 21
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 14 Other financial liabilities (continued) CSIRO IP liability (1) (2) (3) Period $ FY2025-FY2029 90,000 FY2030-FY2032 150,000 FY2033-FY2035 225,000 FY2036-FY2038 300,000 30-Jun-26 31-Dec-25 $ $ CSIRO IP liability at the start of the reporting period 1,488,193 1,453,645 Payments made during the reporting period (45,000) (45,000) Interest on unwinding of discount 118,416 79,548 Closing balance 1,561,609 1,488,193 Patent Application No PCT/AU2013/001382 “Method of forming seamless pipe of titanium and/or titanium alloys”, and any applicable Know How and relevant subject matter. Patent Application No PCT/AU2013/000318 “A Process For Producing A Titanium Load-bearing Structure”, and any applicable Know-How and relevant subject matter; The consolidated entity has three core pieces of Intellectual Property (IP) around its Titomic Kinetic Fusion (TKF) Cold Spray robotic technology manufacturing process. TKF is the process of spraying metal powders at supersonic speed (up to two times the speed of sound) onto a scaffold surface, resulting in the powder particles plastically deforming at the edges and, on impact, bonding at a particle level with the surrounding particles. The consolidated entity has exclusively licensed the IP for three royalty-bearing licences owned by the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The licences are in respect of: Reconciliation of the balance of the CSIRO IP liability at the beginning and end of the current and previous periods are set out below: Under the agreement, the consolidated entity must pay CSIRO 1.5% of attributable gross sales revenue attributed to products produced utilising the licensed patented technologies within the licensed field and 20% of non-sales revenue attributable to products produced using the licensed patented process within the licensed field. Minimum royalty payments are structured as follows: The above performance criteria is discounted using an indicative discount rate of 6.08% p.a. and has been spread over the period to determine the value of the intangible asset acquired. Patent Application No PCT/AU2009/000276 “Manufacture of Pipes” using Titanium and Titanium Alloys; and any applicable Know-How and relevant subject matter; and The term of these licences is to the expiration, lapsing or cessation of all licenced patents, a maximum of 20 years or the life of the underlying patent. 22
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 14 Other financial liabilities (continued) Deferred and contingent consideration for Dycomet (now Titomic Europe B.V.) acquisition 30-Jun-26 31-Dec-25 $ $ Deferred and contingent consideration at the start of the reporting period 25,545 25,319 Interest on unwinding of discount (1,397) 226 Closing balance 24,148 25,545 Contract liabilities 30-Jun-26 31-Dec-25 $ $ Contract liabilities at the start of the reporting period 679,436 2,160,697 Payments received in advance 2,931,697 1,841,844 Transfer to revenue - performance obligations satisfied (1,913,228) (3,232,262) Transfer to other liabilities - (50,000) Effect of foreign exchange (30,161) (40,843) Closing balance 1,667,744 679,436 Unsatisfied performance obligations 30-Jun-26 31-Dec-25 $ $ Within 6 months 4,333,483 1,594,329 6 to 12 months 422,605 447,055 4,756,088 2,041,384 Reconciliation of the balance of contract liabilities at the beginning and end of the current and previous periods are set out below: The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of the reporting period was $4,756,088 as at 30 June 2026 (31 December 2025: $2,041,384) and is expected to be recognised as revenue in future periods as follows: Reconciliation of the balance of deferred and contingent consideration for Dycomet at the beginning and end of the current and previous periods are set out below: On 30 November 2021, Titomic Limited acquired 100% of the ordinary shares of Dycomet Europe B.V. (now Titomic Europe B.V.). Pursuant to the agreement the seller was owed a deferred payment of EUR €150,000 eighteen months after the acquisition date (this was paid during the 2024 financial year) and a further payment of EUR €150,000 three years after the acquisition date (this was paid in November 2024). In addition, there are two earnout components calculated as a percentage of revenue payable three years and five years after the acquisition date. The first earnout is contingent upon a key employee being in continued employment on 30 November 2024 (this was paid in November 2024). The second of these payments is not subject to the employment conditions. Contract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration or when the consolidated entity recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the consolidated entity has transferred the goods or services to the customer. 23
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 15 Issued capital Ordinary shares 30-Jun-26 31-Dec-25 30-Jun-26 31-Dec-25 Shares Shares $ $ Ordinary shares - fully paid 1,607,530,316 1,599,400,057 73,970,964 72,655,460 Movements in ordinary share capital - for the 6 months ended 31 December 2025 Details Date Shares Issue price / value $ Opening balance 1-Jul-25 1,325,758,397 23,130,710 Issue of share capital 31-Jul-25 200,000,000 0.250 50,000,000 Issue of share capital to consultant 7-Oct-25 2,000,000 0.070 140,000 Issue of share capital to employees 10-Oct-25 9,161,019 0.018 164,898 Issue of share capital to employees 10-Oct-25 276,123 0.315 86,979 Issue of share capital to directors 4-Dec-25 17,500,000 0.014 246,750 Issue of share capital to directors 4-Dec-25 17,500,000 0.012 204,750 Issue of share capital to directors 19-Dec-25 1,400,000 0.250 350,000 Issue of share capital to directors 19-Dec-25 804,518 0.265 213,197 Issue of share capital to directors 19-Dec-25 10,000,000 0.014 141,000 Issue of share capital to directors 19-Dec-25 10,000,000 0.012 117,000 Issue of share capital to directors 19-Dec-25 5,000,000 0.195 975,000 Less: transaction costs arising on issue of shares (3,114,824) Closing balance 31-Dec-25 1,599,400,057 72,655,460 Movements in ordinary share capital - for the half-year ended 30 June 2026 Details Date Shares Issue price / value $ Opening balance 1-Jan-26 1,599,400,057 72,655,460 Issue of share capital to employees 8-Jan-26 4,642,858 0.190 882,143 Issue of share capital to directors 9-Jan-26 1,700,000 0.015 25,160 Issue of share capital to employees 12-Jan-26 197,021 0.240 47,285 Issue of share capital to employees 12-Jan-26 156,258 0.240 37,502 Issue of share capital to consultant 12-Jun-26 184,122 0.229 42,164 Issue of share capital to employees 12-Jun-26 1,250,000 0.225 281,250 Closing balance 30-Jun-26 1,607,530,316 73,970,964 Capital risk management Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure and considers adjustments to it in light of changes to economic conditions and the risk characteristics of its economic activities. In order to maintain or adjust the capital structure, the Company may issue new shares. Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital. Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents. The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital. The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk management decisions. There have been no events of default on the financing arrangements during the reporting period. 24
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 16 Reserves 30-Jun-26 31-Dec-25 $ $ Foreign currency translation reserve (1,735,130) (855,170) Share based payment reserves (a) 19,300,986 16,839,363 17,565,856 15,984,193 (a) share based payment reserves comprises: 30-Jun-26 31-Dec-25 $ $ Shares reserve - 84,787 Options reserve 10,320,949 7,388,683 Rights reserve 721,674 1,107,530 Forfeited shares, rights and options reserve 8,258,363 8,258,363 19,300,986 16,839,363 Options reserve Executive options Hurdle price Exercise price Expiry date Fair value ($) $0.330 $0.270 21-Oct-33 298,718 $0.440 $0.270 21-Oct-34 345,641 $0.770 $0.270 21-Oct-35 395,249 $0.330 $0.220 20-Jun-33 91,544 $0.440 $0.220 20-Jun-34 231,725 $0.770 $0.220 20-Jun-35 225,267 $0.330 $0.220 30-Jun-33 25,800 $0.440 $0.220 31-Dec-33 47,054 $0.770 $0.220 31-Dec-34 67,869 1,728,867 Grant date Spot price Risk-free rate Expiry date Volatility rate Fair value ($) Hull-White model 21-Oct-25 $0.265 3.90% 21-Oct-33 102.47% 298,718 21-Oct-25 $0.265 3.90% 21-Oct-34 102.47% 345,641 21-Oct-25 $0.265 3.90% 21-Oct-35 102.47% 395,249 Monte Carlo model 1-Jan-26 (1) $0.245 4.08% 30-Jun-33 69.87% 25,800 Hybrid model (Monte Carlo Simulation and Binomial tree model) 1-Jan-26 $0.245 4.63% 20-Jun-33 91.61% 91,544 1-Jan-26 $0.245 4.69% 20-Jun-34 91.60% 231,725 1-Jan-26 $0.245 4.75% 20-Jun-35 91.60% 225,267 1-Jan-26 (1) $0.245 4.66% 31-Dec-33 90.73% 47,054 1-Jan-26(1) $0.245 4.72% 31-Dec-34 91.60% 67,869 1,728,867 During the half-year ended 30 June 2026, the Board of Directors approved the issue of 12,200,000 options in relation to long term incentive (LTI) program as part of employment agreements with Australian, US and Netherlands based executives, as per below: 21-Oct-25 1,900,000 1-Jan-26 (1) 500,000 1-Jan-26(1) 700,000 12,200,000 2,000,000 300,000 500,000 12,200,000 The performance hurdle for the options issued are based on the company’s 15 consecutive trading days share price, unless noted otherwise. The fair value of the options has been calculated using various simulation models with the following key assumptions and inputs, explained below: Number of options Grant date Number of options 21-Oct-25 1,900,000 21-Oct-25 1,900,000 1,900,000 1,900,000 700,000 1-Jan-26(1) 300,000 1,900,000 1,000,000 2,000,000 (1) The performance hurdle for these options are based on the company's 15-day average trading share price. 1-Jan-26 1,000,000 1-Jan-26 2,000,000 1-Jan-26 2,000,000 25
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 16 Reserves (continued) Rights reserve Executive rights Hurdle price Exercise price Expiry date Fair value ($) $0.000 $0.000 20-Oct-26 463,750 $0.000 $0.000 20-Jun-26 306,250 770,000 Foreign currency translation reserve Movements in reserves Foreign currency reserve $ Balance as at 1-Jul-25 (654,971) Movements in revaluation of foreign currency (200,199) Balance at 31-Dec-25 (855,170) Movements in revaluation of foreign currency (879,960) Balance at 30-Jun-26 (1,735,130) Shares reserve Options reserve Rights reserve Forfeited shares, rights and options reserve Total share based payments reserves $ $ $ $ $ Balance as at 1-Jul-25 - 4,844,626 2,258,004 8,219,163 15,321,793 Share based payments expense 297,984 2,583,257 785,904 - 3,667,145 Transfer to share capital (213,197) - (1,936,378) - (2,149,575) Transfer between reserves - (39,200) - 39,200 - Balance at 31-Dec-25 84,787 7,388,683 1,107,530 8,258,363 16,839,363 Share based payments expense - 2,957,426 777,536 - 3,734,962 Transfer to share capital (84,787) (25,160) (1,163,392) - (1,273,339) Balance at 30-Jun-26 - 10,320,949 721,674 8,258,363 19,300,986 The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations. The share rights were valued at the market closing price on respective grant dates. 3,000,000 Grant date Number of rights 21-Oct-25 1,750,000 1-Jan-26 1,250,000 During the half-year ended 30 June 2026, the Board of Directors approved the issue of 3,000,000 rights in relation to sign on bonus as part of employment agreements with Australian & US based executives, as per below: Movements in each class of reserve during the current and previous periods are set out below: 26
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Titomic Limited Notes to the Consolidated Financial Statements For the half-year ended 30 June 2026 17 Contingent liabilities and contingent assets The consolidated entity has no contingent assets as at 30 June 2026 (31 December 2025: $Nil). 18 Events after the reporting period There are no matters or circumstances that have arisen since 30 June 2026 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. The Directors of the consolidated entity are not aware of any other significant contingencies at the balance sheet date other than a requirement for the payment of royalties pursuant to a certain license agreement, disclosed in note 14, should future revenues exceed predetermined thresholds. As announced on December 6, 2022, Titomic Limited was served with a Summons filed with the Supreme Court of NSW which names the Plaintiff as Composite Technology R&D Pty Ltd ABN 52 094 571 187 and the Defendant as Titomic Limited. The claim set out in the Summons is an allegation of commercially misleading conduct which the Company denies and continues to vigorously defend. Titomic Limited has filed its defence to the Summons and has now issued a Cross Claim Summons (this was updated on 5 February 2026). Both Titomic Limited's and Composite Technology R&D Pty Ltd's lay evidence has been served. Composite Technology has been ordered to provide security for Titomic Limited’s costs of the proceedings in the amount of $1,106,000 ($1,006,000 ordered on May 23, 2025 and a further $100,000 ordered on November 27, 2025), by payment into court. In August 2026, a directions hearing set a date for the case to be heard at trial in July and August 2027. Based on the information currently available and advice received, the Directors consider that Titomic Limited has reasonable grounds to defend the allegations contained in Composite Technology R&D Pty Ltd’s claim and the Company continues to vigorously defend the proceedings. The Company has recognised a provision for legal fees as at 30 June 2026. 27
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Titomic Limited Directors' Declaration For the half-year ended 30 June 2026 In the directors' opinion: • • • Dag W.R. Stromme Chair Titomic Limited 31 August 2026 On behalf of the directors the attached financial statements and notes comply with the Corporations Act 2001 , Australian Accounting Standards AASB 134 'Interim Financial Reporting' , the Corporations Regulations 2001 and other mandatory professional reporting requirements; The directors have been given the declarations required by section 303(5)(a) of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 303(4)-(5) of the Corporations Act 2001. there are reasonable grounds to believe that the consolidated entity will be able to pay its debts as and when they become due and payable. the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30 June 2026 and of its performance for the financial half-year ended on that date; and 28
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THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each memb er of the RSM network is an independent accounting and consulting firm which practices in its own right . The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia P artners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation RSM Australia Partners Level 27, 120 Collins Street Melbourne VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199 www.rsm.com.au INDEP ENDENT AUDITOR’S REVIEW REPORT To the Members of Titomic Limited and its Controlled Entities REPORT ON THE HALF-YEAR FINANCIAL REPORT Conclusion We have reviewed the half -year financial report of Titomic Limited (“the Company) and its Controlled Entities (together “the Group”) which comprises the consolidated statement of financial position as at 30 June 2026, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001 including: (a) giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Basis for Conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Titomic Limited, would be in the same terms if given to the directors as at the time of this auditor’s report. Material Uncertainty Related to Going Concern We draw attention to Note 1 in the half-year financial report, which indicates that the Group incurred a net loss of $19,351,495 and had net cash outflows from operating activities of $ 14,488,995 for the half-year ended 30 June 2026. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter. 29
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Directors' Responsibility for the Half-Year Financial Report The directors of the Titomic Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half -year financial report that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility for the Review of the Financial Report Our responsibility is to express a conclusion on the half -year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 30 June 2026 and its performance for the half -year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. RSM AUSTRALIA PARTNERS B Y CH AN Partner Dated: 31 August 2026 Melbourne, Victoria 30