Interim report
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Interim Report and Financial Statements First Half 2026 Ensurge Micropower ASA
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1 | Interim Report and Financial Statements | First Half 2026 Contents 2 About Ensurge 3 Business Review and Outlook 7 Condensed Consolidated Financial Report as of 30 June 2026 9 Principal Risks 11 Going Concern 12 Consolidated Financial Statements 16 Notes to the Consolidated Financial Statements 26 Responsibility Statement
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2 | Interim Report and Financial Statements | First Half 2026 About Ensurge Ensurge Micropower develops thin-film, solid-state lithium microbatteries that enable next-generation electronic devices. The accelerating adoption of AI-powered edge devices is driving unprecedented demand for innovative power solutions. As these technologies miniaturize while requiring more sophisticated energy management, conventional batteries cannot deliver the necessary combination of performance, safety, and form factor flexibility. To meet this need, Ensurge’s proprietary anode-less, solid-state cell chemistry technology is designed to deliver industry-leading volumetric energy density and performance, exceptional safety, and ultra-flexible form factors in space-constrained applications across medical devices, hearables, wearables, industrial systems, and defense. From the Company’s San Jose, California facility, the Company’s team of battery and materials science specialists partners with leading global customers to accelerate commercialization. The Company’s scalable manufacturing approach enables high-volume production at competitive cost while maintaining form factor flexibility. Ensurge is listed on the Oslo Stock Exchange (ticker: ENSU). Locations Norway — Oslo Corporate Headquarters Kongens gate 6, 0153 Oslo Email: info@ensurge.com USA — San Jose Global Headquarters 2581 Junction Avenue San Jose CA 95134 Email: info@ensurge.com Contact Investor Relations ir@ensurge.com www.ensurge.com
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3 | Interim Report and Financial Statements | First Half 2026 Business Review and Outlook Ensurge is developing solid-state microbatteries for products where the battery has become the limit on what the product can be. In categories from hearables and medical devices to industrial sensors and defense, energy determines how small a device can get, how much it can do, and how long it can do it for. A step change in energy density does not simply replace a component. It releases the product roadmap behind it, and with it the pace at which customers can adopt. Ensurge reported its first-quarter results in May. Those results set out the early effects of the product-led operating model introduced in February 2026: record battery performance in capacity retention and cycle life, the first material reduction in operating costs, and the start of a comprehensive reset across people, product, process and cost. The second quarter and to this date has been about reproducibility. Having established in Q1 that its cell chemistry delivers record performance, the Company turned to proving that the performance repeats through tightly controlling process specifications and making notable improvements in the company’s equipment capabilities. Achieving repeatable product performance is the core requirement for proving manufacturability of a solid-state battery, one of the greatest challenges facing the industry globally. It is required for exiting the Proof-of-Concept (“POC”) stage gate, and it is what turns a battery cell into a dependable product that a customer can design into a device. The clearest marker of that progress came in major improvements to the Company’s LiPON solid electrolyte deposition process. As this process is shared across the Company’s baseline (stainless steel) platform and Corning “Encore” platform, its specific performance and repeatability are crucial to delivering a high-performing battery. After tightening the product’s specification, upgrading the level of analysis, and improving upon existing equipment, Ensurge delivered a 4x performance improvement in its LiPON electrolyte with 3x tighter process variation. This directly translates to both performance and repeatability of the battery cell. Furthermore, the Company’s “Encore” platform (using Corning’s Ribbon Ceramic cathode) moved out of a bench-level R&D process (known as a glove box) and into standard test boxes, lifting the practical constraint on how many cells the Company can hold on test at once and how quickly evidence for the gate accumulates. This directly accelerates cycle testing, which in turn accelerates the product development timeline. The Company has also moved forward on the three fronts left open at the end of Q1. Commercially, Ensurge appointed a Chief Commercial Officer with more than 25 years bringing advanced battery technology to market and a Chief Financial Officer with a dual background as a battery research scientist and a Wall Street professional, and progressed towards a paid customer development program. On cost, the facility lease renegotiation flagged in Q1 has become a defined relocation, now in final-stage documentation, for a showcase facility to support Ensurge’s next chapter. As it is optimized to the company’s product- led strategy, it substantially reduces the Company’s largest fixed cost and opens the way to a purpose-built pilot manufacturing line. Taken together, the first half leaves Ensurge closer to the POC gate, with a broader commercial function, a new product-led operating model, and a technological base to move faster through the second half. Second quarter 2026 highlights Technology: from record performance to reproducibility Following its Q1 battery performance achievements, the Company focused in Q2 on the repeatability required to unlock manufacturability and ultimately, product shipments. Focusing first on its solid-state electrolyte LiPON, a component that is both critical to performance and versatile across cathode chemistries, the Company achieved a 4x improvement in performance, as measured by ionic conductivity, alongside a 3x tighter process variability. This overcomes a key impediment to solid-state battery manufacturing more broadly, and further evidences the manufacturability and scalability of the Ensurge product. This LiPON excellence also opens optionality to apply the electrolyte across a broader array of cathode chemistries, supporting flexibility in future product development. The disciplined, first-principles approach to product excellence taken by the Company’s new management team, supported by industry-leading battery experts, has delivered results on a major element of the process. This methodology clearly defines the product and process specification, measures results to a greater
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4 | Interim Report and Financial Statements | First Half 2026 level of precision, analyzes and improves the process, leverages outside experts and more sophisticated tools, and controls the process for future repeatability. This progress paves the way for applying the same process excellence to additional key process steps, moving the Company closer to delivering high-quality, repeatable product at scale. Entering the quarter, the Company recorded its strongest multi-layer cycle life and capacity retention results to date on its stainless-steel substrate, together with early single-layer data on Corning’s Ribbon Ceramic freestanding cathode showing above 90% capacity retention after approximately 100 cycles. Since then, the following technological work and progress have been made: • Cycling moved outside the glove box. The Company achieved reliable cycling in standard test boxes at 30% of total battery cell capacity using Corning’s Ribbon Ceramic cathode material. Testing outside the glove box simplifies test logistics, increases the number of cells the Company can hold on test at one time, and accelerates the overall testing cadence. • Manufacturing process work concentrated at the component level, in particular the sputter deposition of the Company’s LiPON solid-state electrolyte. Tighter run-to-run control of this step is improving process consistency and establishing the blueprint for defining the remaining process steps for quality and repeatability. • Optimization of process and product design for batch- to-batch repeatability is underway and continues into the second half. • The path to POC exit is well defined: replicating performance across the full multi-layer product configuration and at larger sample sizes. Commercial: a dedicated commercial function and progressing towards paid customer programs At the end of Q1 the Company had more than 125 inbound leads, a structured framework for evaluating them, and active negotiations with prospective partners, but no dedicated commercial leadership. • Salil Soman was appointed Chief Commercial Officer, bringing more than 25 years commercializing advanced battery technologies. His mandate is to move business development from reactive handling of inbound interest to proactive industry outreach aimed at high-value, high-volume applications, and to build a commercial engine capable of supporting long-term partnerships. • Discussions advanced during the quarter on the multi- year customer development program first disclosed in the Company’s fourth quarter 2025 reporting. This is a paid agreement to design, validate and deliver a customized solid-state microbattery. On successful completion the agreement is intended to establish a path toward high-volume manufacturing and a long- term commercial supply agreement. Terms are not yet final, and the program is taking longer to conclude than the Company anticipated when it was first disclosed. Agreements of this kind commit both parties across multiple years and several product lifecycle stages, and the up-front alignment they demand on milestone definition, timelines, product cost and quality targets is what makes them durable once signed. The Company would rather secure terms worth having than move early, and will update the market when they are agreed, which is still expected. This would mark the Company’s second active development agreement alongside the Corning JDA signed in Q4 2025, and its first paid customer program. • The wider pipeline broadened during the quarter, with defense applications added to the segments under discussion alongside sensor technologies and medical implantables. The Company remains in active discussions with more than a dozen top-tier potential customers on multi-year, multi-phase development agreements. Commercial timing across the pipeline remains milestone-driven and contingent on successful validation and demonstrated manufacturing consistency. Before Improvements After Improvements LiPON Uniformity (Cross-Section) Cross-sectional view shows a more uniform, cleaner film interface after process and equipment improvements.
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5 | Interim Report and Financial Statements | First Half 2026 Cost structure: relocating San Jose operations In Q1 the Company reported that it had initiated renegotiation of its long-term agreements, including the San Jose facility lease with the building’s new owner, and identified cost as the one restructuring workstream still open after the people, product and process workstreams were substantially complete. During the second quarter that renegotiation became a defined relocation. • The Company is in the final stages of signing agreements with five counterparties to relocate from its approximately 96,000 sq ft Junction Avenue site to a fully modern, equipped and battery-focused facility of approximately 32,000 sq ft. This would match the Company’s product-led operating model rather than the high-volume manufacturing buildout the original site was sized for. • Terms under negotiation include favorable lease termination, a license agreement that preserves operational continuity for Ensurge while providing the incoming tenant with access for planning and construction, several months of free rent, return of the security line of credit, and abatement of decommissioning and deconstruction costs. • On completion, the Company expects the relocation to reduce recurring site-related costs by approximately 70% and to deliver over USD 3.5 million of recurring annual savings on a net basis. Separately, and on a one-time basis, the transition is expected to avoid approximately USD ~1 million of costs relating to lease abatement, decommissioning, and transferred fixtures and equipment. The move also removes approximately USD 1 million of liability related to the current lease guarantee and releases a net of USD 850 thousand of restricted cash currently securing the Junction Avenue letter of credit in Q1 2027. • The relocation additionally creates the opportunity to design a purpose-built pilot manufacturing line for consistent, high-quality solid-state microbattery production, rather than continuing to retrofit legacy thin- film equipment. The new line is expected to support small-scale, customer-specific microbattery footprints and configurations alongside future production scale- up, and the new site provides a customer-ready environment for hosting partners and prospects. • The agreements are not yet executed. The Company will confirm final terms and the resulting financial effect on completion. Organization and infrastructure Following the reduction in early Q1 of a team weighted toward process and manufacturing engineering, the Company has been rebuilding towards a product-led operating model. • A Director of Quality was hired during the quarter, a foundational role for the Company, responsible for building quality systems and processes from the ground up and establishing quality as a core principle of battery development and validation. • The first phase of the data infrastructure modernization begun by the data architecture lead recruited in Q1 was completed, replacing manual machine-by-machine data capture with an integrated, company-wide architecture. The effect is a shorter loop between running an experiment and understanding its result, which directly supports the testing cadence required for POC exit. • AI tools were implemented for faster internal communication and analysis. • Bryce Dille, CFA, was appointed Chief Financial Officer, completing the CFO search. Dille joins from Lygos, Inc. and brings a combined background in battery materials research and cleantech capital markets. • The Company continues to add battery product, quality, test and applications engineering talent selectively, holding a high standard for incoming talent while maintaining a lean operating model. Financial development and position • Revenue and other income of USD 3 thousand was recognized in Q2 2026 and USD 157 thousands in H1 2026, against nil in both Q2 2025 and H1 2025, arising from strategic development and partnership activities. • Operating expenditures, including capitalized R&D, were USD 4,396 thousand in Q2 2026, broadly flat against Q2 2025 on a like-for-like basis. The composition shifted materially reflecting the product-led model’s emphasis on quality of output over quantity: R&D material costs fell 45% versus H1 2025, with the saving redeployed into experienced battery, quality and test engineering talent. • EBITDA was a loss of USD 4,393 thousand in Q2 2026, broadly flat against Q2 2025 of USD 4,277 thousand on a like-for-like basis, after accounting for R&D capitalization of USD 2,505 thousand. • The Company continued its cost restructuring, eliminating non-value-added spend and non-essential positions in favor of experienced battery talent. • Approximately NOK 80 million of convertible loan financing has been secured in the first half and subsequently, at a conversion price representing a 48% premium to the prevailing share price at the time of commitment, extending the operational runway into mid-H2 2026. Additional funding is required to extend the runway beyond that point, and the Board is actively pursuing several pathways as described in the Going Concern section. First half 2026 at a glance • Record battery performance results in Q1, with material improvements in capacity retention and cycle life,
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6 | Interim Report and Financial Statements | First Half 2026 followed in Q2 by reliable cycling outside the glove box at 30% of total cell capacity using Corning’s Ribbon Ceramic cathode. • The product-led operating model introduced in February 2026 embedded across development, manufacturing process definition and cost, delivering a 35% reduction in R&D material costs for the half versus H2 2025. • A comprehensive restructuring across people, product, process and cost, concluding with a defined relocation of the Company’s San Jose operations to a right-sized facility. • Commercial leadership added, the pipeline broadened into defense alongside sensor technologies and medical implantables, and the negotiations for the Company’s first paid customer development agreement advanced. • Quality, test, validation and data architecture capabilities added, and the first phase of a modernized data infrastructure delivered. • Approximately NOK 80 million raised in convertible loan financing. 0 10 20 30 40 50 60 70 80 90 100 0 20 40 60 80 100 % of Avg. Cycle Dch Cap Cycle Number Single layer Corning Ribbon Ceramic cathode cycle data Record multi-layer cycle life and capacity retention, improving rapidly 0% 20% 40% 60% 80% 100% 120% 10 30 50 70 90 110 130 150 170 190 210 230 250 D4362BR33-B1-02C.xlsx D4362BR80-B1-02L.xlsx D4428BL81-B1-02C.xlsx 0 10 20 30 40 50 60 70 80 90 100 0 20 40 60 80 100 % of Avg. Cycle Dch Cap Cycle Number Single layer Corning Ribbon Ceramic cathode cycle data Record multi-layer cycle life and capacity retention, improving rapidly 0% 20% 40% 60% 80% 100% 120% 10 30 50 70 90 110 130 150 170 190 210 230 250 D4362BR33-B1-02C.xlsx D4362BR80-B1-02L.xlsx D4428BL81-B1-02C.xlsx Outlook The Company’s priority remains to complete the work required to exit the Proof-of-Concept stage gate and to bring the product to the level of predictability needed to ship to customers. Work in the second half is organized around three areas. On product, the Company will replicate its performance results with credible external validation, demonstrate repeatability at larger sample sizes, and advance the Corning Joint Development Agreement toward completion of Phase 1. On commercial, the focus is the paid customer development agreement milestone, and converting the wider pipeline into multi-year development programs. On cost, the Company will complete the site relocation, concluding the fixed-cost restructuring initiated in February 2026, and design a purpose-built pilot manufacturing line and showcase facility for partners and customers. Taken together, the second half is targeted to deliver external validation and a leaner cost base by year-end. The Company will report progress against these items in each subsequent quarter. Ensurge enters the second half of 2026 with a set of assets that few in the industry can match: an organization with deep battery, materials and process expertise, restructured over the past two quarters around product validation, manufacturing discipline and commercial execution; a growing set of partnerships with category leaders across both customers and core process technology; and a technology platform whose core chemistry has delivered record performance results. The market opportunity ahead is substantial and growing: a multi-billion-dollar category with no commercial-scale microbattery supplier currently capable of delivering the step-change performance Ensurge is targeting, and design windows for the next generation of wearables, hearables, medical, industrial and other advanced electronics opening through 2027 and beyond.
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7 | Interim Report and Financial Statements | First Half 2026 Condensed Consolidated Financial Report as of 30 June 2026 Profit and loss Ensurge recognized USD 157 thousand revenue and other income in the first six months of 2026 and zero revenue and other income in the first six months of 2025. The Company is executing on a company-wide transformation to achieve repeatable product performance while streamlining operating costs. Net operating costs amounted to USD 7,428 thousand in the first six months of 2026, excluding the notional cost of share-based compensation of USD 1,050 thousand. The corresponding figures for the first six months of 2025 after accounting for USD 5,265 thousand primarily attributable to the capitalization of research and development costs were USD 7,426 thousand and USD 407 thousand, respectively. Year-over-year changes in expenses by major category are as follows: 1 USD 9 thousand lower payroll costs, after accounting for the capitalization of research and development costs of USD 2,910 thousand in first six months of 2025 (see Note 9). 2 USD 643 thousand higher employee share-based remuneration costs. The fair value of granted employee subscription rights is based on the Black- Scholes formula and expensed over the vesting period. 3 USD 11 thousand higher other expenses, after accounting for the capitalization of research and development costs of USD 1,710 thousand in first six months of 2025 (see Note 9). The Company focused its R&D efforts towards achieving technical success in solid-state lithium battery technology development, focused on repeatable performance. The Company reported significant progress on important technology milestones relating to its solid-state lithium microbatteries, leading to the capitalization of USD 8,849 thousand in 2025. From December 2025 the Company ceased to capitalize further R&D costs on the battery project, based on an assessment that the project has transitioned out of the development phase that supported capitalization under accounting standards and into a phase primarily focused on execution, refinement, and operational optimization. Depreciation and amortization charges for the first six months of 2026 amounted to USD 331 thousand, compared to USD 322 thousand incurred in the first six months of 2025. Net financial items for the first six months of 2026 amounted to expense of USD 864 thousand (first six months of 2025: expense of USD 539 thousand), primarily due to expenses from the change in fair value of derivative liabilities (first six months of 2025: USD 263 thousand) and interest expense of USD 536 thousand (first six months of 2025: USD 806 thousand) related to debt and financial lease obligations. See Note 5. The Company operates at a loss and there is a tax loss carryforward position in the parent company. Income taxes for the U.S. subsidiary were USD 2 thousand in the first six months of 2026 and zero in the first six months of 2025. The parent company in Norway has not incurred any tax during 2026 or 2025. The net loss in the first six months of 2026 was USD 9,518 thousand, corresponding to a basic loss per share of USD 0.01. For the first six months of 2025, the net loss was USD 4,076 thousand, corresponding to a basic loss per share of USD 0.005. Cash flow The group’s cash balance decreased by USD 4,669 thousand for the first six months of 2026, from USD 7,913 thousand on 31 December 2025 to USD 3,244 thousand on 30 June 2026. The net decrease in cash is explained by the following principal elements: 1 USD 7,737 thousand outflow from operating activities, 2 USD 73 thousand outflow from investing activities, and 3 USD 3,142 thousand inflow from financing activities. The USD 7,737 thousand outflow from operating activities is primarily explained by an operating loss excluding depreciation and amortization expenses of USD 8,321 thousand. The cash balance on 30 June 2026 amounted to USD 3,244 thousand, while the cash balance on 30 June 2025 equaled USD 3,269 thousand. The cash balances include restricted cash of USD 1,600 thousand, securing the letter of credit issued in 2017 by Ensurge Micropower ASA to the landlord of the San Jose, California facility. (See Note 7.)
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8 | Interim Report and Financial Statements | First Half 2026 Balance sheet Non-current assets at 30 June 2026 amounted to USD 15,096 thousand and relate primarily to intangible assets related to microbattery technology (30 June 2025: USD 11,111 thousand). See Note 9. Trade and other receivables amounted to USD 602 thousand as of 30 June 2026 (30 June 2025: USD 631 thousand). Current liabilities as of 30 June 2026 totaled USD 6,410 thousand and relate to trade payables, warrant liabilities and the current portion of long-term liabilities (30 June 2025: USD 6,190 thousand). Non-current liabilities as of 30 June 2026 totaled USD 8,827 thousand (30 June 2025: USD 7,644 thousand) and relate to future lease payments for the Junction Avenue, San Jose, California premises and long-term debt relating to an equipment term loan facility with Utica. The equity ratio was 20% as of 30 June 2026, versus 8% as of 30 June 2025.
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9 | Interim Report and Financial Statements | First Half 2026 Principal Risks Ensurge is exposed to financial, technical, operational, and market risks. During 2026, the Company has continued to take meaningful steps to mitigate certain of these risks, including securing additional capital, strengthening the leadership team with experienced battery industry executives, and resetting the Company’s approach to battery development around discipline, accountability, and focus. Material risks nonetheless remain, particularly related to product validation, manufacturing scale-up, and continued funding requirements. The principal risk categories are described below. Financial risks Ensurge is exposed to financial risks related to fluctuations in foreign exchange rates, interest rates, and raw material prices which may affect revenues, cost and profitability. Furthermore, the performance of stock markets and stocks as investments will influence the share price and ability to attract funding and the terms of such. As long as Ensurge is progressing towards delivering product samples with no major income stream supporting it, liquidity becomes a strain. Hence, there is a risk of not being able to pay employees and suppliers and thereby ceasing activities. Reference is made to the Going Concern section for more details. Technical risks Currently, technology development and engineering sample availability, as well as process-related activities, can be adversely affected by several factors including but not limited to: • Quality, composition, and consistency of lithium-based materials, chemicals and unanticipated interactions of the various layers and processes that are key to core battery performance, resulting in longer than planned learning cycles and corrective actions. • Process risk – new modes of yield loss necessitating process, practice, or equipment modifications that can result in a slower than planned yield ramp. • Product risk — the Company’s product may fail during use, which can cause bodily harm or loss of data. This risk is covered by product liability insurance but can lead to increased cost and reduced profit. To a certain extent, Ensurge is dependent on continued collaboration with technology, materials, and manufacturing partners. There may be process and product development risks that arise related to time-to- development and cost competitiveness of the energy storage products Ensurge is developing. Operational risks Shortages of components and materials may delay or reduce the Company’s sales and increase the Company’s costs, thereby harming the Company’s operating results. • Requisite environmental control of the manufacturing and storage area. • Equipment reliability, modifications needed, and process optimization may limit uptime, throughput and quality of devices produced. • Manufacturing readiness and qualification of tool sets. • On-site availability of vendor personnel to assist in re- qualification of the machines with battery materials set. • Ensurge is a lessee rather than owner of its primary business location, which exposes the Company to risks associated with changes in building ownership or lease terms, along with move-associated operational risks The Company’s financial projections assume successful execution, including the motivation and retention of key employees and recruitment of qualified personnel, critical to the Company’s business success. Factors that may affect the Company’s ability to attract and retain talented leadership, key individual contributors, and enough qualified employees include the Company’s reputation, employee morale, competition for talent and talent pool. The Company’s success is dependent on identifying, developing, and retaining key employees to provide uninterrupted leadership and direction for the Company’s business. This includes developing and retaining organizational capabilities in key technology areas, where the depth of skilled or experienced employees may be limited and competition for these resources is intense. This risk is particularly acute for a company such as Ensurge based in Silicon Valley, where well-capitalized corporations compete intensely for the same talent pool. Climate change risks Climate change impacts are expected to profoundly impact across the whole battery value chain. The adverse impact can be attributed to the physical risk (the Company’s assets in San Jose) and the transition risk (impact of regulations on demand for the Company’s products and compliance (cost/exclusion). Physical risk Ensurge is located in San Jose, and California has over the last decade seen an increase in extreme weather, be it drought, wildfires or extreme rainfall.
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10 | Interim Report and Financial Statements | First Half 2026 Transition risk Ensurge complies with all relevant U.S. and international regulations. Ensurge is still a small player in the battery value chain. The Company’s activities so far have been focused on technology development and small- scale production in the microbattery sector, leaving a limited footprint. When scaling up, the Company will include relevant KPIs that can be translated into carbon footprint, and all operational and capital investment decisions will include this in addition to financial KPIs. Geopolitical risks Uncertain global economic conditions adversely impact demand for the Company’s products or cause potential customers and other business partners to suffer financial hardship, causing delays in market traction adversely impacting the Company’s business. We may experience extended lead times on custom equipment for Roll-to-Roll (R2R) due to the current political/economic situation in Europe as well as overall supply issues which impact the Company’s ability to scale production in the future. Many of the materials used in the production of the Company’s products are available only from a limited number of foreign suppliers, particularly suppliers located in Asia. Increased geopolitical tensions may affect the Company’s supply chain. Current conflicts — the Russian invasion of Ukraine, the Israel-Hamas war, and China/U.S. tensions over Taiwan — have not caused any disruption to Ensurge to date. Any escalation of these conflicts may change that. New U.S. administration imposing higher tariffs on imported goods from most countries is a new risk, as a big percentage of the Company’s raw materials, components and manufacturing equipment are sourced internationally. Market risks The Company cannot predict the size or growth rate of the markets the Company operates in, or the market share the Company will achieve or maintain in the future. The Company’s ability to generate significant revenue from new markets will depend on various factors, including the following: • The development and growth of these markets, • The Company’s ability to address customer needs (price, performance and preference); and • The Company’s ability to provide Original Equipment Manufacturers with solutions that provide advantages in terms of size, reliability, durability, performance, and value-added features compared with alternative solutions. Many of the markets that Ensurge targets will require time to gain traction, and there is a potential risk of delays in the timing of sales. Risks and delays may include, but are not limited to: • The Company’s growth targets depend on successful innovation in response to competitors and changing consumer habits. • The Company’s revenues are dependent on pace of technology evaluation and product qualification activities at the Company’s customers, and delays in battery or end-product qualification or changes to production schedules may affect the quantity and timing of purchases from Ensurge. Such delays are generally outside of Ensurge’s control. The failure of any of these target markets to develop as the Company expects, or the Company’s failure to serve these markets to a significant extent, will impede the Company’s sales growth and could result in reduced financial performance.
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11 | Interim Report and Financial Statements | First Half 2026 Going Concern The Board confirms that the financial statements of the group have been prepared under the going concern assumption. During 2025, Ensurge completed multiple financing rounds to fund operations. On 6 November 2025, the Company completed a private placement raising gross proceeds of NOK 100 million through the issuance of 111.1 million new shares at NOK 0.90 per share. On 5 April 2026, the Company announced Convertible Loan Agreements with select investors in the amount of NOK 60 million. On 24 April 2026, the Company announced additional Convertible Loan Agreements in the minimum amount of NOK 1,091,000 and a maximum amount of NOK 3,091,000. On 15 May 2026, the Annual General Meeting (AGM) approved the foregoing Convertible Loan Agreements totaling from NOK 61,091,000 to NOK 63,091,000 and warrants up to 12.6 million. On 31 July 2026, the Company announced that it has successfully secured commitments to subscribe for subordinated and unsecured convertible loans on the same terms and conditions as the April 2026 Convertible Loans in an aggregate principal amount of NOK 20 million from certain existing shareholders and new investors. See Note 11. Based on the current cost structure and the convertible loan financing approved at the 15 May 2026 AGM, the Company has sufficient cash to fund operations into mid-H2 2026. However, funding is not secured for the next 12 months, and a material uncertainty exists as to whether the Company and group will continue as a going concern. The Company and group are dependent on successfully raising additional funds as planned. The Board monitors the financial position closely and receives frequent reports and forecasts on expenditure and cash flow. To address the funding requirement and the material uncertainty, the Board has initiated the following concrete actions: • Engagement with existing convertible loan holders regarding potential follow-on investment, • Active discussions with prospective strategic and partner investors, • Renegotiation of the San Jose facility lease and other long-term agreements to reduce the fixed cost base, and • A structured review of capital requirements through year-end against milestone delivery. The Board will reassess the going concern position at each Board meeting through 2026 and will update the market through quarterly reporting and otherwise as material developments occur. Despite the material uncertainty as to whether the group will be able to successfully raise funds as planned, the Board has concluded that the Company is not in a situation where there is no realistic alternative to continue as going concern and hence it is appropriate to prepare the interim financial statements on the going concern basis.
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12 | Interim Report and Financial Statements | First Half 2026 Consolidated Financial Statements Consolidated statement of comprehensive income Amounts in USD 1,000 Note 1 January to 30 June 2026 1 January to 30 June 2025 1 January to 31 December 2025 Sales revenue 152 — 25 Other income 5 — Total revenue & other income 157 — 25 Operating costs 3,4 (8,478) (3,213) (8,992) Depreciation and amortization (331) (322) (656) Operating profit (loss) (8,652) (3,535) (9,622) Net financial items 5 (864) (539) (1,115) Profit (loss) before income tax (9,516) (4,074) (10,736) Income tax expense (2) (2) (63) Profit (loss) for the period (9,518) (4,076) (10,800) Profit (loss) attributable to owners of the parent (9,518) (4,076) (10,800) Profit (loss) per share basic and diluted 6 (USD 0.01) (USD 0.005) (USD 0.01) Profit (loss) for the period (9,518) (4,076) (10,800) Currency translation — — — Total comprehensive income for the period, net of tax (9,518) (4,076) (10,800)
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13 | Interim Report and Financial Statements | First Half 2026 Consolidated statement of financial position Amounts in USD 1,000 Note 30 June 2026 30 June 2025 31 December 2025 ASSETS 7 Non-current assets Property, plant and equipment 8 1,270 1,528 1,473 Intangible assets 9 13,252 9,009 13,252 Other financial receivables 10 574 574 574 Total non-current assets 15,096 11,111 15,298 Current assets Trade and other receivables 10 602 631 594 Cash and cash equivalents (i) 12 3,244 3,269 7,913 Total current assets 3,846 3,899 8,507 TOTAL ASSETS 18,942 15,010 23,806 EQUITY 11 Total shareholder's equity 3,705 1,175 12,029 LIABILITIES 7 Non-current liabilities Long-term debt 12 56 2,571 1,354 Long-term financial lease liabilities 12,13 2,961 5,074 4,045 Derivative & convertible debt 14 5,811 — — Total non-current liabilities 8,827 7,644 5,399 Current liabilities Trade and other payables 1,324 1,568 2,076 Short-term financial lease liabilities 12,13 2,112 665 2,004 Warrants liability 15 479 1,899 — Current portion of long-term debt 12 2,494 2,059 2,298 Total current liabilities 6,410 6,190 6,378 TOTAL EQUITY AND LIABILITIES 18,942 15,010 23,806 (i) Includes restricted cash of USD 1,600 thousand, securing the letter of credit issued in 2017 by Ensurge Micropower ASA to the landlord of the San Jose, California facility. See Note 7.
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14 | Interim Report and Financial Statements | First Half 2026 Consolidated statement of changes in equity Amounts in USD 1,000 Share capital Other paid-in capital Other reserves Currency translation Retained earnings Total Balance at 1 January 2026 50,040 23,352 — (13,801) (47,562) 12,029 Private placement 0 (1) (1) Employee stock purchase plan 100 16 115 Stock rights exercise 41 (12) 30 Share-based compensation 1,050 1,050 Comprehensive income (9,518) (9,518) Balance at 30 June 2026 50,181 24,405 — (13,801) (57,080) 3,705 Balance at 1 January 2025 36,993 11,935 — (13,801) (38,598) (3,471) Transfer of vested share-based compensation — — — — Private placement (January and April 2025) 4,296 3,773 8,069 Employee stock purchase plan 126 95 221 Stock rights exercise 18 7 25 Share-based compensation 407 407 Comprehensive income (4,076) (4,076) Balance at 30 June 2025 41,433 16,217 — (13,801) (42,674) 1,175 Balance at 1 January 2025 36,993 11,935 — (13,801) (38,598) (3,471) Transfer of vested stock based compensation * — (1,835) — — 1,835 — Private placement (January, April, July, November and December 2025) 12,801 11,850 — — — 24,652 Employee stock purchase plan 207 181 — — — 389 Stock rights purchase 38 12 — — — 50 Share based compensation — 1,208 — — 1,208 Comprehensive income — — — — (10,800) (10,800) Balance at 31 December 2025 50,040 23,352 — (13,801) (47,562) 12,029 *Share-based compensation recognized for vested subscription rights has been moved to uncovered loss.
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15 | Interim Report and Financial Statements | First Half 2026 Consolidated cash flow statement Amounts in USD 1,000 Note 1 January to 30 June 2026 1 January to 30 June 2025 1 January to 31 December 2025 CASH FLOW FROM OPERATING ACTIVITIES Profit (loss) before tax (9,516) (4,076) (10,736) Share-based remuneration 1,050 407 1,323 Depreciation and amortization 8,13 331 322 656 Changes in working capital and non-cash items (466) 582 1,169 Net financial items 864 539 1,115 Net cash from operating activities (7,737) (2,225) (6,474) CASH FLOW FROM INVESTING ACTIVITIES Purchase of property, plant and equipment 8 (128) (202) (479) Capitalized development expenses 9 — (4,700) (8,943) Proceeds from sale of assets (3) — — Interest received 58 27 148 Net cash from investing activities (73) (4,875) (9,274) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issuance of shares 11 41 9,362 26,164 Costs associated with issuance of shares (24) (525) (1,467) Proceeds from debt financing 14 6,044 — — Costs associated with issuance of debt 14 (375) — — Interest paid 12,13 (467) (790) (1,454) Principal loan obligations 12 (1,102) (885) (1,863) Lease installments 13 (975) (875) (1,799) Net cash from financing activities 3,142 6,288 19,581 Net increase (decrease) in cash and bank deposits (4,669) (812) 3,832 Cash and bank deposits at the beginning of the period 7,913 4,081 4,081 Cash and bank deposits at the end of the period (i) 3,244 3,269 7,913 (i) Includes restricted cash of USD 1,600 thousand, securing the letter of credit issued in 2017 by Ensurge Micropower ASA to the landlord of the San Jose, California facility. See Note 7.
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16 | Interim Report and Financial Statements | First Half 2026 Notes to the Consolidated Financial Statements 1. Information about the group Ensurge Micropower ASA (“Ensurge” or “the Company”) was founded as Thin Film Electronics AS (“Thinfilm”) on 22 December 2005 and was renamed to Ensurge Micropower ASA on 4 June 2021. Ensurge Micropower ASA Group (“Ensurge”) consists of the parent company Ensurge Micropower ASA and the subsidiaries Ensurge Micropower Inc. (“Ensurge Inc.”) and TFE Holding. The objectives of the Company are the commercialization, research, development and production of technology and products related to solid-state lithium batteries. These objectives may be carried out in full internally, or in whole or in part externally through collaborative efforts with one or more of the Company’s ecosystem partners. The Company is a public limited-liability company incorporated and domiciled in Norway. The address of its registered office is Kongens gate 6, Oslo, Norway. The Company’s shares were admitted to listing at the Oslo Axess on 30 January 2008 and to the Oslo Børs on 27 February 2015 and the shares trade under the symbol ENSU. On 24 March 2015 Ensurge’s American Depository Receipts (ADRs) and shares commenced trading in the United States on OTCQX International. On 23 June 2020 the Company’s OTC trading was transferred to the OTCQB Venture Market. On 11 March 2026, the Company terminated trading of its securities on the U.S. OTC market. 2. Basis of preparation, accounting policies, and resolutions This condensed interim financial report for the six months ended 30 June 2026 has been prepared in accordance with IAS 34 interim financial reporting. The condensed consolidated interim financial report should be read in conjunction with the consolidated annual financial statements for 2025. The IFRS accounting policies applied in this condensed consolidated interim financial report are in all material respects consistent with those applied and described in the consolidated annual financial statements for 2025. The interim financial statements have not been subject to audit. The Board confirms that the financial statements of the group, as well as the parent company, have been prepared under the going concern assumption. The Board is actively seeking additional funding for the Company’s operations from the capital market and from customers and technology partners. On 15 May 2026, the Annual General Meeting (AGM) approved Convertible Agreements totaling with a value of a NOK 59,999,998. On 31 July 2026, the Company announced that it has successfully secured commitments to subscribe for subordinated and unsecured convertible loans on the same terms and conditions as the April 2026 Convertible Loans in an aggregate principal amount of NOK 20 million from certain existing shareholders and new investors. Based on the current cost structure and the convertible loan financing approved at the 15 May 2026 AGM, the Company has sufficient cash to fund operations into mid-H2 2026. Additional funding is required to extend the runway beyond that point, and the Board is actively pursuing several pathways as described in the Going Concern section (see Note 11). However, as funding is not secured for the next 12 months, a material uncertainty exists as to whether the Company and group will continue as going concern. The Company and group are dependent on successfully raising funds as planned. Despite the material uncertainty to whether the group will be able to successfully raise funds as planned, the Board has concluded that the Company is not in a situation where there is no realistic alternative to continue as a going concern and hence it is appropriate to prepare the interim financial statements on the going concern basis. The Board monitors the financial position closely and receives frequent reports and forecasts on expenditure and cash flow. Refer to the Principal Risks and Going Concern sections of this Interim Report. The report was resolved by the Ensurge Micropower ASA Board of Directors on 30 August 2026.
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17 | Interim Report and Financial Statements | First Half 2026 3. Operating costs Amounts in USD 1,000 1 January to 30 June 2026 1 January to 30 June 2025 1 January to 31 December 2025 Payroll* 3,947 1,046 3,116 Share-based remuneration 1,050 407 1,323 Services 1,287 987 2,298 Premises, supplies 1,801 2,060 4,685 Sales and marketing 68 74 157 Other expenses 324 350 707 Capitalized research and development * — (1,710) (3,295) Total operating costs 8,478 3,213 8,992 *2025 includes 11 months of capitalization of research and development expenses. The results for 1 January to 30 June 2025 include capitalization of USD 2,910 thousand in payroll related costs. See Note 9. 4. Related party transactions In the first six months of 2026 and 2025, Ensurge recorded USD 15 thousand and USD 329 thousand, respectively for executive consulting services provided by Lars Eikeland. Mr. Eikeland served as CEO from January 2024 to August 2025 and as CFO from September 2024 to February 2026. On 3 February 2026, the Company announced that Mr. Eikeland was stepping down as CFO and will continue as an unpaid advisor to the Company starting in March 2026 for continued vesting of previously granted equity. In the first six months of 2026 and 2025, Ensurge recorded USD 225 thousand and USD 141 thousand, respectively (net of VAT) for legal services provided by law firm Ræder Bing advokatfirma AS, driven by increased commercial activities globally, in which Morten Opstad, the board chairman of Ensurge, is a partner. As of 30 June 2026, the Company recorded USD 64 thousand in trade and other payables attributable to Ræder Bing advokatfirma AS. 5. Net financial items 1 January to 30 June 2026 1 January to 30 June 2025 1 January to 31 December 2025 Interest income 58 27 148 Interest expense (536) (806) (1,466) Net realized and unrealized currency gain/(loss) 214 263 306 Change in fair value of derivative liability (410) (70) — Other expenses (190) 47 (103) Net financial items (864) (539) (1,115)
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18 | Interim Report and Financial Statements | First Half 2026 6. Profit (loss) per share 1 January to 30 June 2026 1 January to 30 June 2025 1 January to 31 December 2025 Profit (loss) attributable to shareholders (USD 1,000) (9,518) (4,076) (10,800) Weighted average basic number of shares in issue 971,075,320 755,918,250 814,165,726 Weighted average diluted number of shares 971,075,320 755,918,250 814,165,726 Profit (loss) per share, basic and diluted (USD 0.01) (USD 0.005) (USD 0.01) When the period result is a loss, the loss per diluted number of shares shall not be reduced by the higher diluted number of shares, but the diluted result per share equals the result per basic number of shares. The diluted number of shares has been calculated by the treasury stock method. If the adjusted exercise price of subscription rights exceeds the average share price in the period, the subscription rights are not counted as being dilutive. 7. Guarantees As a part of the relocation of Ensurge’s U.S. headquarters in 2017, a USD 1,600 thousand Letter of Credit has been issued by Ensurge Micropower ASA to the landlord. Ensurge Micropower ASA has, in addition, entered into a Tenancy Guarantee with the landlord. The guarantee is given to secure payment of the lease rent. The initial guarantee liability amounted to USD 5,000 thousand and reduces on an annual basis of USD 500 thousand per year commencing with the second lease year until the liability reaches zero dollars. As of 30 June 2026, the guarantee liability amounted to USD 1,000 thousand. 8. Property, plant and equipment Amounts in USD 1,000 Tangible assets Period ended 30 June 2026 Net book value on 1 January 2026 1,473 Additions 128 Depreciation (331) Net book value on 30 June 2026 1,270 Period ended 30 June 2025 Net book value on 1 January 2025 1,649 Additions 201 Depreciation (322) Net book value on 30 June 2025 1,528 Period ended 31 December 2025 Net book value on 1 January 2025 1,649 Additions 479 Depreciation (656) Net book value on 31 December 2025 1,473
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19 | Interim Report and Financial Statements | First Half 2026 9. Intangible assets Amounts in USD 1,000 Purchased intellectual property Capitalized microbattery development costs Capitalized NFC SpeedTap™ development costs Total Amortization period, years (linear) 13–16 10 Period ended 30 June 2026 Accumulated cost on 1 January 2026 1,791 13,252 1,630 16,673 Additions (0) (0) Amortization and impairment (1,791) (1,630) (3,421) Net book value on 30 June 2026 — 13,252 — 13,252 Period ended 30 June 2025 Accumulated cost on 1 January 2025 1,791 4,309 1,630 7,730 Additions 4,700 4,700 Amortization and impairment (1,791) (1,630) (3,421) Net book value on 30 June 2025 — 9,009 — 9,009 Period ended 31 December 2025 Accumulated cost on 1 January 2025 1,791 4,309 1,630 7,730 Additions 8,943 8,943 Amortization and impairment (1,791) (1,630) (3,421) Net book value on 31 December 2025 — 13,252 — 13,252 In 2024, the Company reported significant progress on important technology milestones relating to the first prototype solid-state lithium microbatteries with capacities ranging from 1.2–6.5 mAh. The Company identified and began capitalizing qualified research and development costs in Q3 2024. From December 2025 the Company ceased to capitalize further R&D costs on the battery project, based on an assessment that the project has transitioned out of the development phase that supported capitalization under accounting standards and into a phase primarily focused on execution, refinement, and operational optimization. Total capitalized development costs through 30 June 2026 amount to USD 13,252 thousand (2025: USD 13,252 thousand). Going forward, research and development expenses will be expensed as incurred until the Company determines that capitalization criteria are again met. The Company intends to begin amortization of the intangible asset over a ten-year period upon finalization of the microbattery development and commencement of commercial production. Purchased intellectual property The purchased intellectual property relates to licensing of certain patents. The portfolio is reviewed for impairment annually by comparing the book value to the fair market value at the patent level. In 2019 the remaining unamortized balance was impaired in full as the Company revised its strategy whereby the future value of these patents is uncertain. 10. Trade and other receivables Amounts in USD 1,000 30 June 2026 30 June 2025 31 December 2025 Customer receivables 172 20 20 Other receivables, prepayments 431 611 574 Less: provision for impairment of receivables and prepayments — — — Total trade and other receivables 602 631 594 Other non-current financial receivables of USD 574 thousand relates to security deposit held by Utica Leaseco, LLC.
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20 | Interim Report and Financial Statements | First Half 2026 11. Share capital and subscription rights Number of shares Shares at 1 January 2026 969,396,390 Shares at 30 June 2026 972,099,703 Shares at 1 January 2025 700,229,477 Shares at 31 December 2025 969,396,390 On 3 February 2026, the Company announced the issuance of 6,480,000 subscription rights to certain of its U.S. employees. The grants were made under the Company’s 2025 incentive subscription rights plans. On 19 February 2026, the Company announced the issuance of 4,500,000 subscription rights to certain of its U.S. employees. The grants were made under the Company’s 2025 incentive subscription rights plan. On 6 March 2026, the Company announced the issuance of 1,909,313 ordinary shares at an average subscription price of NOK 0.6387 per share to employees and contractors in the Company who participated in the Company’s 2025 Employee Share Purchase Plan. The ESPP was approved by the EGM on 8 August 2025. The Company discontinued the Employee Share Purchase Plan, effective 29 April 2026. On 9 March 2026, the Board of Directors resolved to issue 794,000 shares at a subscription price of NOK 0.50 to employees of the Company who have exercised incentive subscription rights granted in accordance with the Company’s 2023 Subscription Rights Incentive Plan. On 5 April 2026, the Company announced a Convertible Loan Agreement with select investors in the amount of NOK 60 million. On 24 April 2026, the Company announced additional Convertible Loan Agreements in the minimum amount of NOK 1,091,000 and a maximum amount of NOK 3,091,000. On 15 May 2026, the AGM approved the foregoing Convertible Loan Agreements totaling with a value of a NOK 59,999,998 and the issuance of 11,999,989 warrants (“CLA 2026 Warrants”) to the lenders of the convertible loans, whereby one warrant is issued for every NOK 5 subscribed for and allocated in the convertible loans. The conversion rate of the notes and the exercise price of the warrants is NOK 1.00. See Note 14. On 23 June 2026, the Company announced the issuance of 5,682,100 subscription rights to certain of its U.S. employees and consultants. The grants were made under the Company’s 2026 incentive subscription rights plan. On 20 July 2026, the Company announced the issuance of 350,000 subscription rights to a new U.S. employee. The grant was made under the Company’s 2026 incentive subscription rights plan. On 31 July 2026, the Company announced that it has successfully secured commitments to subscribe for subordinated and unsecured convertible loans on the same terms and conditions as the April 2026 Convertible Loans in an aggregate principal amount of NOK 20 million from certain existing shareholders and new investors. The Company’s board of directors has approved the Convertible Loans pursuant to the board authorization to issue convertible loans granted by the AGM held 15 May 2026. Issuance of the Warrants remains subject to approval at the next extraordinary general meeting (EGM). On 5 August 2026, the Company announced the issuance of 1,102,000 subscription rights to certain new U.S. employees. The grant was made under the Company’s 2026 incentive subscription rights plan. On 26 August 2026, the Company announced the issuance of 7,500,000 subscription rights to a new U.S. employee. The grant was made under the Company’s 2026 incentive subscription rights plan.
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21 | Interim Report and Financial Statements | First Half 2026 Shares Issued Date Number of shares Price per share Employee share purchase 10 March 2026 1,909,313 0.6387 Shares issued in 2026 1,909,313 Subscription rights exercised 12 March 2026 794,000 0.50 Subscription rights exercised in 2026 794,000 Private placement 20 January 2025 40,000,000 1.00 Employee share purchase 4 March 2025 2,733,844 0.9138 Private placement 10 April 2025 52,250,000 1.20 Private placement 8 July 2025 41,200,000 1.25 Employee share purchase 2 September 2025 1,629,232 1.0072 Convertible loan conversion 12 October 2025 19,470,726 1.00 Private placement 9 November 2025 83,678,032 0.90 Private placement 17 December 2025 27,433,079 0.90 Shares issued in 2025 268,394,913 Subscription rights exercised 5 June 2025 200,000 0.50 Subscription rights exercised 5 June 2025 167,000 0.915 Subscription rights exercised 1 September 2025 280,000 0.50 Subscription rights exercised 1 September 2025 125,000 0.915 Subscription rights exercised in 2025 772,000 Number of subscription rights 1 January – 30 June 2026 1 January – 31 December 2025 Subscription rights opening balance 114,267,028 55,176,079 Grant of incentive subscription rights 16,662,100 62,632,311 Terminated, forfeited and expired subscription rights (14,933,741) (2,769,362) Exercise of subscription rights (794,000) (772,000) Subscription rights closing balance 115,201,387 114,267,028
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22 | Interim Report and Financial Statements | First Half 2026 Date Subscription rights Price Vesting Expiration Employees 3 February 2026 6,480,000 0.85 25% after 1 year, remaining 75% equally over the next 12 quarters 8 August 2030 19 February 2026 4,500,000 0.79 25% after 1 year, remaining 75% equally over the next 12 quarters 8 August 2030 23 June 2026 4,682,100 0.60 25% after 1 year, remaining 75% equally over the next 12 quarters 15 May 2031 23 June 2026 500,000 0.60 1/16 each quarter for 4 years from date of promotion 15 May 2031 Consultants 23 June 2026 500,000 0.60 1/16 each quarter for 4 years 15 May 2031 Grants of subscription rights in 2026 16,662,100 Board members 8 August 2025 21,000,000 1.376 40% at 2026 AGM, 30% after 2 years and 30% after 3 years 8 August 2030 Employees 3 February 2025 80,000 0.97 50% per year 14 May 2029 6 May 2025 90,000 1.25 50% per year 14 May 2029 15 August 2025 385,000 1.33 50% per year 8 August 2030 1 September 2025 30,687,311 1.32 25% after 1 year, remaining 75% equally over the next 12 quarters 8 August 2030 26 September 2025 7,890,000 1.18 1/16 each quarter for 4 years 8 August 2030 Consultants 26 September 2025 2,500,000 1.18 1/16 each quarter for 4 years 8 August 2030 Grants of subscription rights in 2025 62,632,311 12. Current and long-term debt In September 2019, the U.S. subsidiary, Ensurge Micropower, Inc., closed an equipment term loan facility with Utica for USD 13,200 thousand secured by select fixed assets (see Note 8). On 7 November 2022, the Company consolidated and re-amortized the Master Lease Agreement and six amendments with Utica. In connection with the new arrangement, the Company pledged additional collateral to secure the amended payment terms. In addition to the existing collateral pledge, its R2R production line equipment and sheet-line tools, Ensurge has pledged all remaining unsecured equipment located in the San Jose, California facility. Further, Utica has taken a first security position in certain of Ensurge Micropower ASA’s intellectual property. At 30 June 2026, the current portion of the loan principal is USD 2,476 thousand. The interest rate for the financing is 16.49% in 2026 and 20% in 2025. The table below discloses principal payment obligations as well as interest payments for the Company. The Company entered into an equipment lease agreement in October 2024 with Gekko Financial LLC. At 30 June 2026, the current portion of the loan is USD 18 thousand. The long-term portion of the loan of USD 56 thousand is recorded as Long-term Debt in the Consolidated Statement of Financial Position. The interest rate is 13.12%. The Company entered into a lease agreement in November 2016 relating to its U.S. headquarters in San Jose, California. The lease expires in September 2028. As a part of the relocation of Ensurge’s U.S. headquarters in 2017, a USD 1,600 thousand Letter of Credit was issued by Ensurge Micropower ASA to the landlord. The restricted cash of USD 1,600 thousand securing the Letter of Credit is included in the Company’s cash and cash equivalents. See Note 7. The San Jose, California lease is reflected under this caption and the table below. See also Note 13. The table below discloses principal payment obligations for the company.
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23 | Interim Report and Financial Statements | First Half 2026 Maturity schedule — liabilities Amounts in USD 1,000 Short term Long term Total Principal balance as of 1 January 2026 2,298 1,354 3,652 Principal payments (1,102) (1,102) Reclassified from long term to short term 1,298 (1,298) — Principal balance as of 30 June 2026 2,494 56 2,550 30 June 2026 Carrying value Q3 2026 Q4 2026 2027 2028 2029 Principal obligations due 2,550 586 610 1,308 21 24 Interest payments 97 72 70 5 2 Lease payments 5,074 591 608 2,447 1,875 — Total current and long-term debt 1,275 1,291 3,825 1,901 26 13. Leases The Company entered into a lease agreement in November 2016 relating to its U.S. headquarters in San Jose, California. The lease expires in September 2028. The borrowing rate applied in discounting of the nominal lease debt is 7.25%. Right-of-use assets are depreciated linearly over the lifetime of the related lease contract. Amounts in USD 1,000 Short term Long term Total Lease liability recognized at 1 January 2026 2,004 4,045 6,049 Lease payment (see note below) (1,180) (1,180) Interest expense 205 205 Reclass from long term to short term 1,084 (1,084) — Lease liability as of 30 June 2026 2,112 2,961 5,074 In the statement of cash flow, principal portions of lease payments are included in line “Lease installments” with an amount of USD 975 thousand, and interest portions of the payments are included in line “Interest paid” with an amount of USD 205 thousand. Both amounts are presented as cash flow from financing activities. For maturity schedule of minimum lease payments, see Note 12. 14. Derivative and convertible debt On 5 April 2026, the Company announced a Convertible Loan Agreement (“Convertible Loans”) with select investors in the amount of NOK 60 million. On 24 April 2026, the Company announced additional Convertible Loans in the minimum amount of NOK 1,091,000 and a maximum amount of NOK 3,091,000. Issuance of the convertible notes and the associated warrants was subject to approval by AGM. The AGM approved the notes and associated warrants at the AGM held 15 May 2026. The lenders are entitled at any time after AGM approval and registration in the Norwegian Register of Business Enterprises, and before the Maturity Date, to convert all or a part of the Convertible Loans into shares in the Company at a conversion price of NOK 1.00. The Convertible Loans carry interest at the rate of 10% per annum. The Convertible Loans plus accrued interest will be automatically converted into shares at 31 August 2027. The Convertible Loans are unsecured and subordinated obligations of Ensurge and rank junior to the existing indebtedness with Utica. The Convertible Loans are senior to Ensurge’s share capital and include anti-dilution provisions should Ensurge issue shares that are priced lower than the NOK 1.00 per share conversion rate. Under specific events of default, the Company may be required to settle the obligation in cash. As a result of this requirement, the Convertible Loans are classified as liabilities. See Note 15 for details of the associated warrants. The Convertible Loans are denominated in Norwegian Kroner (NOK); however, the functional currency of the Company is the U.S. Dollar. As a result of this difference in currencies, the proceeds that were received by the Company were not fixed and varied based on foreign exchange rates. A portion of the loans, the conversion feature, is a derivative required
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24 | Interim Report and Financial Statements | First Half 2026 to be recognized and measured at fair value at each reporting period. Any changes in fair value in the Convertible Loans from period to period are recorded as a non-cash gain or loss in the consolidated statement of net loss/(income) and comprehensive loss/(income), in accordance with IFRS 13. The Convertible Loans, including accrued interest, are classified as long-term liability at amortized cost. The conversion feature derivative liability is classified as long-term held-for-trading liability. The derivative liability is measured using Black-Scholes valuation model. Amounts in USD 1,000 30 June 2026 Long term debt 6,044 Derivative liability (304) Accrued interest 70 Conversion price NOK 1.00 Interest rate 10% Maturity date 31 August 2027 15. Warrants On 3 November 2025, the Company announced that in accordance with the Investment Agreement with Corning, the Company would issue warrants (“December 2025 Warrants”) representing the NOK equivalent of USD 10 million divided by the exercise price of NOK 1.50. The December 2025 Warrants are exercisable between 4 December 2025 and 3 December 2027, provided that the Company and Corning maintain an active joint development agreement or a subsequent commercial agreement. A total of 67,934,000 December 2025 Warrants were approved by the EGM held on 3 December 2025. The Joint Development Agreement (“JDA”) signed in November 2025 continues through June 30 2028. The arrangement strengthens the Ensurge’s strategic partnership with Corning and aligns the incentives of both parties for future development. There are no vesting conditions other than maintaining an active JDA or a subsequent commercial agreement. On 15 May 2026, the AGM approved Convertible Loan Agreements totaling with a value of a NOK 59,999,998 and the issuance of 11,999,989 warrants (“CLA Warrants”) to the lenders of the convertible loans, whereby one warrant is issued for every NOK 5 subscribed for and allocated in the convertible loans, such warrants having an exercise price of NOK 1.00 per share and being exercisable until 31 August 2027. The exercise price of the warrants is NOK 1.00. On 31 July 2026 the Company announced that it has successfully secured commitments to subscribe for subordinated and unsecured convertible loans on the same terms and conditions as the April 2026 Convertible Loans in an aggregate principal amount of NOK 20 million from certain existing shareholders and new investors. See Note 11. The exercise price of the warrants is denominated in Norwegian Kroner (NOK); however, the functional currency of the Company is the U.S. Dollar. As a result of this difference in currencies, the proceeds that will be received by the Company are not fixed and will vary based on foreign exchange rates. The warrants are a derivative and are required to be recognized and measured at fair value at each reporting period. Any changes in fair value from period to period are recorded as a non-cash gain or loss in the consolidated statement of comprehensive income, in accordance with IFRS 13. Upon exercise, the holders will pay the Company the respective exercise price for each warrant exercised in exchange for one common share of Ensurge Micropower ASA and the fair value at the date of exercise and the associated non-cash liability will be reclassified to share capital. The non-cash liability associated with any warrants that expire unexercised will be recorded as a gain in the consolidated statement of comprehensive income. There are no circumstances in which the Company would be required to pay any cash upon exercise or expiry of the warrants.
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25 | Interim Report and Financial Statements | First Half 2026 Fair Value of Warrant Liability 30 June 2026 31 December 2025 Opening Balance $— $— Warrants Issued 1,193 1,058 Warrants Exercised — (745) Warrants Expired — (314) Change in fair value of warrant liability (714) Ending Balance 479 — Deferred loss — — Warrants liability 479 — The fair value of the warrants was calculated using the Black-Scholes valuation model. The inputs used in the Black- Scholes valuation model are: As of 30 June 2026 CLA Warrants December 2025 Warrants Share price NOK 0.65 NOK 0.65 Exercise price NOK 1.00 NOK 1.50 Expected term (in years) 1.17 1.43 Expected share price volatility 46.38% 65.63% Annual rate of quarterly dividends 0.00% 0.00% Risk-free interest rate 4.51% 4.41% Warrant expiration date 31 August 2027 3 December 2027 See Note 11. 16. Events occurring after the balance sheet date On 20 July 2026, the Company announced the issuance of 350,000 subscription rights to a new U.S. employee. The grant was made under the Company’s 2026 incentive subscription rights plan. On 31 July 2026, the Company announced that it has successfully secured commitments to subscribe for subordinated and unsecured convertible loans on the same terms and conditions as the April 2026 Convertible Loans in an aggregate principal amount of NOK 20 million from certain existing shareholders and new investors. See Note 11. On 5 August 2026, the Company announced the issuance of 1,102,000 subscription rights to certain new U.S. employees. The grant was made under the Company’s 2026 incentive subscription rights plan. On 25 August 2026, the Company announced the appointment of Bryce Dille as Chief Financial Officer (CFO), effective immediately. Bringing a rare dual background as a battery research scientist and a top Wall Street professional, Bryce Dille joins Ensurge’s newly transformed executive roster to accelerate its capital strategy, expand institutional investor engagement, and propel the Company into its next phase of commercial growth. On 26 August 2026, the Company announced the issuance of 7,500,000 subscription rights to a new U.S. employee. The grant was made under the Company’s 2026 incentive subscription rights plan.
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26 | Interim Report and Financial Statements | First Half 2026 Responsibility Statement The board and the CEO have today reviewed and approved the Ensurge Micropower ASA unaudited interim condensed financial statements as of 30 June 2026. • The interim condensed consolidated financial statements with notes for the first half of 2026 have been prepared in accordance with IAS 34 – Interim Financial Reporting and additional disclosure requirements as stated in the Norwegian Securities Trading Act section 5-6. • The interim condensed consolidated financial statements for the first half year of 2026 give a true and fair view of Ensurge’s assets, liabilities, financial position and results for the period viewed in their entirety. • The report from the board of directors issued in concert with this consolidated review report gives a true and fair view of the development, performance and financial position of the group, and a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated financial statements. • A description of the principal risks and uncertainties for the remaining six months of the financial year have been disclosed in the condensed consolidated review report and Note 2. • Major related party transactions have been disclosed in Note 4 of the financial statements. The Board of Directors of Ensurge Micropower ASA, Oslo, Norway, 30 August 2026 Morten Opstad Chairman Thomas Ramm Board Member Nina Riibe Board Member Shauna McIntyre CEO