Half-Year Financial Results: Significant sales growth

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com



FOR PUBLIC RELEASE
NZX Limited
Wellington

27
th
February 2026

Half-Year Financial Results: Significant sales revenue growth

Ko nga manaakitanga ki runga i a tatou katoa, tena tatou! Anei nga hua o nga marama e ono kua taha ake
nei.

Rua Bioscience is pleased to share our financial results for the 6 month period ended 31 December 2025.

This period reflects continued execution of Rua’s capital-light strategy anchored in genetics and distribution,
while growing our market share and revenue in key markets.

Financial Results


6 months to
Dec 25
(unaudited)
6 months to
Dec 24
(unaudited)

Revenue from customers $1,333,773 $693,829
92%
Increase
Loss before tax $(1,793,429) $(1,802,255)
0.4%
Decrease
Net cash outflows from
Operating activities
$(1,520,360) $(1,942,997)
22%
Decrease


The Group reported sales revenue from customers of $1,333,773 for the 6 month period compared to
$693,829 for the prior corresponding period, an improvement of 92%. Whilst revenue increased
significantly, net loss before tax improved only slightly to $1,793,429 for the period compared to a loss of
$1,802,255 in the prior corresponding period. The increase in revenue and gross margin was offset by
increases to financing costs of inventory, non-cash share allocation costs to staff, and stock adjustments.

The net cash outflow from operating activities was $1,520,360 down 22% from $1,942,997 in the prior
corresponding period. This improvement is attributed to continued focus on improvement of our capital-
light operating model, particularly outsourcing commercial manufacturing.

During the period the company raised further capital to fund the growth in sales. The company undertook a
pro-rata rights offer to all shareholders and a placement of new shares which raised $2,315,679. After
associated costs, the company received cash of $2,022,750 during the period.



MARKET ANNOUNCEMENT

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com


Rua has made substantial progress in supplying product to the world’s largest medicinal cannabis markets.



Germany

Germany remains the world’s largest medical cannabis market, despite softening uptake in recent months as
the Government undertakes a regulatory review of medicinal cannabis regulations. Rua expects only minor
amendments to be confirmed over the coming months, which should provide greater certainty for market
participants. During the six months to December, Rua successfully launched New Zealand cultivated product
into the German market, however sales were reduced compared to the previous corresponding period as a
result of the regulatory review.

Australia

Australia is the world’s second largest medical cannabis market providing multiple opportunities for Rua with
new product formats and clinic partners. Rua has continued to build on strong clinic relationships and
deliver strong growth through established partnerships with significant growth over the previous
corresponding period.

New Zealand

Rua delivered continued domestic growth, supported by the introduction of new products during the period
and ongoing portfolio expansion. Adoption of medical cannabis in New Zealand appears to be steadily
increasing, underpinning the increase in demand for our products.

Czech Republic

Rua entered the Czech market with the launch of its first product in September 2025. While the market
remains relatively small and initial sales volumes are modest, the launch establishes an early foothold and
provides a platform for measured growth over time.

$0.22 m
$0.47 m
$0.42 m
$0.39 m
$0.56 m
$0.77 m
Q1Q2Q3Q4Q1Q2
Revenue from customers
FY25FY26

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
United Kingdom

The UK is an early-stage medical cannabis market that is showing significant growth. Rua has launched oil
products into the market through its distribution partner, Target Health, and continues to build awareness
and access through this channel. During the period, Rua has been reviewing its portfolio and distribution
pathways in the UK to ensure it is well positioned to capitalise on accelerating market demand.

Achieving revenue in five key markets in the period is a huge success for Rua and creates more robust and
resilient revenue.

Fostering Intergenerational Social Impact

Rua remains deeply committed to creating meaningful social impact that spans generations. A cornerstone
of our identity and strategic vision is our Impact Programme; encompassing our Compassionate Access
Programme and our Scholarship Programme.

Compassionate Access: Rua has continued to grow the Compassionate Access Programme from 30 patients
to 52 patients in Te Tairawhiti. This programme is focused on ensuring equitable access to medicines and
creating intergenerational wellbeing in our community.

Scholarships: Rua has continued to grow its scholarship programme since its inception in 2020, empowering
67 local rangatahi into further education totalling over $90,000 with the assistance of other local funding
agencies.

Outlook

As we move forward, Rua remains steadfast in the delivery our differentiated strategy. Our focus is on
delivering revenue growth across five markets and creating a differentiated offering to patients in each
country. We are optimistic about the opportunities ahead and are committed to delivering value to our
stakeholders, communities and patients worldwide.


ENDS

The person who authorised this announcement:
Paul Naske
Chief Executive Officer

For shareholder enquiries please visit www.ruabio.com or contact:
info@ruabio.com

---

Rua Bioscience Limited

Consolidated Financial Statements
Unaudited

For the 6 month period ended
31 December 2025

2



Rua Bioscience Limited




Contents

Company Directory
3




Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
4




Condensed Consolidated Statement of Changes in Equity 5 – 6




Condensed Consolidated Statement of Financial Position
7




Condensed Consolidated Statement of Cash Flows
8




Notes forming part of the Condensed Consolidated Financial Statements
9 - 21

3
Company Directory
For the six months ended 31 December 2025



Country of incorporation of company: New Zealand

Company Number: 6484092

Legal form: NZ Limited Company

Principal activities: Pharmaceutical Distribution and Marketing

Registered office: 704 Te Araroa Road
RD3
Ruatoria


Directors: Anna STOVE – Chair
Panapa EHAU
Teresa FARAC-CIPRIAN
Tony BARCLAY

Auditor:

PricewaterhouseCoopers

Bankers: Kiwibank

Solicitors: Anderson Lloyd

4
Rua Bioscience Limited

Condensed Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the six months ended 31 December 2025


Note
For the six
months ended
31 December
2025
(unaudited)
For the six
months ended
31 December
2024
(unaudited)
$
$


Revenue from contracts with customers 5 1,333,773 693,829
Other income 6 121,540 195,383
Total revenue and income 1,455,313 889,212

Changes in inventories of finished goods and
work in progress
9 (900,794) (486,650)
Research and development expenses 15 (526,875) (494,317)
Costs related to capital raise (3,961) (158,617)
Other expenses (1,664,445) (1,486,008)
Impairment expense 17 (11,725) (24,569)
Loss before net financing costs (1,652,487) (1,760,949)


Finance income 7 27,397 1,810
Finance costs 7 (168,339) (43,116)
Net finance (cost)/income (140,942) (41,306)

Loss before tax (1,793,429) (1,802,255)

Income tax expense 8 - -

Loss after tax (1,793,429) (1,802,255)

Other comprehensive loss

Items that will or may be reclassified to profit or loss:

- Exchange (losses)/ gains arising on translation of
foreign operations
(40,686) (3,714)

Total comprehensive loss for the period
attributable to shareholders
(1,834,115) (1,805,969)

Earnings per share attributable to the
ordinary equity holders of the parent




Loss from operations

Basic ($)
(0.006) (0.011)
Diluted ($)
(0.006) (0.011)

_______ _______


The above statements should be read in conjunction with the accompanying notes.

5

Rua Bioscience Limited

Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 December 2025







The above statements should be read in conjunction with the accompanying notes.


* The 30 June 2025 consolidated financial statements were issued with a disclaimer of opinion by the Group’s auditor
Note
Share capital

Foreign
currency
translation
reserve
Warrant
equity
reserve
Share
option
reserve
Accumulated
losses

Total equity

$

$ $ $ $

$

Opening balance at 1 July 2025
(audited)*
45,453,462 2,633 28,478

375,106 (40,968,968) 4,890,711

Total comprehensive loss for the period
- Loss for the period - - - - (1,793,429) (1,793,429)
- Other comprehensive loss - (40,686) - - - (40,686)
Total comprehensive loss for the period - (40,686) - - (1,793,429) (1,834,115)

Transactions with owners
- Issue of share capital 16 3,016,246 - - - - 3,016,246
- Costs of issuing share capital (303,669) - - - - (303,669)
- Warrants issued - - 69,081 - - 69,081
- Employee share option expense - - - 6,625 - 6,625
Total transactions with owners 2,712,577 - 69,081 6,625 - 2,788,283


Balance at 31 December 2025
(unaudited)
48,166,039 (38,053) 97,559

381,731 (42,762,397) 5,844,879

6
Rua Bioscience Limited

Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 December 2024









The above statements should be read in conjunction with the accompanying notes.


* The 30 June 2024 consolidated financial statements were issued with a disclaimer of opinion by the Group’s auditor

Note
Share
capital

Foreign
currency
translation
reserve
Share option
reserve
Accumulated
losses

Total equity

$

$ $ $

$

Opening balance at 1 July 2024 (audited)
*
43,952,936 (6,296) 333,324 (37,513,306) 6,766,658

Total comprehensive loss for the period
- Loss for the period - - - (1,802,255) (1,802,255)
- Other comprehensive loss - (3,714) - - (3,714)
Total comprehensive loss for the period - (3,714) - (1,802,255) (1,805,969)

Transactions with owners
- Issue of share capital 16 1,428,229 - - - 1,428,229
- Employee share options expense (147,703) - - - (147,703)
- Share options vested and exercised - - 26,635 - 26,635
Total transactions with owners 1,280,526 - 26,635 - 1,307,161


Balance at 31 December 2024 (unaudited) 45,233,462 (10,010) 359,959 (39,315,561) 6,267,850

7
Rua Bioscience Limited
Condensed Consolidated Statement of Financial Position
As at 31 December 2025
The condensed consolidated financial statements on pages 4 to 21 were approved and authorised for
issue by the Board of Directors on 26 February 2026 and were signed on its behalf by:
______________________ (Director) ______________________ (Director)
The above statements should be read in conjunction with the accompanying notes.
* The 30 June 2025 consolidated financial statements were issued with a disclaimer of opinion by the Group’s auditor
Note
As at
31 December
2025
As at
30 June
2025
(unaudited)
$
(audited)*
$
Current assets
Cash and cash equivalents 4 2,166,289 241,421
Trade and other receivables 4 372,287 366,552
Prepayments 353,976 401,740
Inventory 9 681,702 405,106
Assets in disposal groups classified as held for
sale
17 878,937 890,662
Total current assets 4,453,191 2,305,481
Non-current assets
Property, plant and equipment 1,940,664 2,144,010
Goodwill 10 2,194,947 2,194,947
Right-of-use lease assets 37,963 62,167
Other receivables 4 75,000 75,000
Total non-current assets 4,248,574 4,476,124
Total assets
8,701,765 6,781,605
Current liabilities
Trade and other payables 4 865,961 864,442
Borrowings 4,11 1,768,700 725,307
Employee benefit liabilities 134,605 192,301
Lease liabilities 4,11 12,694 40,749
Liabilities in disposal groups classified as held
for sale
4,17 18,430 30,155
Derivative financial liability 4,11 - -
Deferred grant income 25,000 -
Total current liabilities 2,825,390 1,852,954
Non-current liabilities
Lease liabilities 4,11 31,496 37,939
Total non-current liabilities 31,496 37,939
Total liabilities
2,856,886 1,890,893
Net assets 5,844,879 4,890,712
Equity
Share capital 16 48,166,039 45,453,462
Accumulated losses (42,762,397) (40,968,968)
Warrant equity reserve 97,559 28,479
Foreign currency translation reserve (38,053) 2,633
Share option reserve 381,731 375,106
Total equity 5,844,879 4,890,712

8
Rua Bioscience Limited

Condensed Consolidated Statement of Cash Flows
For the six months ended 31 December 2025


Note For the six
months to
31 Dec 2025
For the six
months to
31 Dec 2024
(unaudited) (unaudited)
$ $


Cash flows from operating activities

Receipts from customers 1,333,007 525,992
Grant income received 196,002 169,876
Sundry income received 13,227 77,673
Payments to suppliers and employees (3,062,596) (2,716,538)
Net cash outflows from operating activities (1,520,360) (1,942,997)


Cash flows from investing activities

Interest income 1,106 1,809
Proceeds from the sale of property, plant and equipment 1,213 -
Net cash inflows from investing activities 2,319 1,809


Cash flows from financing activities

Proceeds from issuance of share capital 2,819,678 1,428,229
Share issue costs (303,669) (147,703)
Proceeds from borrowings 1,523,281 468,888
Repayment of borrowings (588,401) (107,056)
Repayment of lease liabilities (46,223) (35,032)
Warrants issued 69,082 -
Interest paid – lease liabilities (2,857) (16,238)
Interest paid – financial liabilities at amortised cost (30,677) -
Net cash inflows from financing activities 3,440,214 1,591,088

Net increase/(decrease) in cash and cash equivalents 1,922,173 (350,100)

Cash and cash equivalents at beginning of the period 241,420 895,131

Exchange gains/(losses) on cash and cash equivalents 2,696 (6,385)

Cash and cash equivalents at end of the period 4 2,166,289 538,646











The above statements should be read in conjunction with the accompanying notes.

9
Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



1. Reporting Entity
The condensed consolidated financial statements comprise the results of Rua Bioscience
Limited and its subsidiary (together, “the Group”).
Rua Bioscience Limited (“the Company”) is a company incorporated and domiciled in New
Zealand and registered under the Companies Act 1993. The address of the Company’s registered
office and principal place of business is 704 Te Araroa Road, RD 3, Ruatoria.
The Company is principally engaged in the business of research and development, and
pharmaceutical distribution and marketing.
2. Basis of preparation
(a) Statement of compliance

These unaudited interim consolidated financial statements have been prepared for the six
months ended 31 December 2025. These interim consolidated financial statements provide an
update on the interim performance of the Group and should be read in conjunction with the
full year consolidated financial statements presented for the year ended 30 June 2025 from
which the same accounting policies and methods of computation have been followed.

The interim consolidated financial statements are prepared in accordance with:
• NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting.
• Generally Accepted Accounting Practice in New Zealand (NZ GAAP).
• The accounting policies and methods of computation in the most recent annual financial
statements.
• The Financial Markets Conduct Act 2013, and NZX equity listing rules.

The Group is a for-profit entity for the purposes of complying with NZ GAAP.

The consolidated interim financial statements are presented in New Zealand dollars ($), which
is the company’s functional and also the Group’s presentational currency. All financial
information presented has been rounded to the nearest dollar, except where otherwise
indicated.

(b) Significant accounting policies

The accounting policies and computation methods used in the preparation of the consolidated
interim financial statements are consistent with those used as at 30 June 2025 and 31 December
2024.

(c) Basis of measurement

The consolidated interim financial statements have been prepared on a historical cost basis,
except for the following items (refer to individual accounting policies for details):
- Borrowings (fair value disclosed) – note 4
- Financial assets and liabilities at amortised cost (fair value disclosed) – note 4
- Derivative liabilities subsequently measured at fair value through profit or loss – note 4

10
Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



2. Basis of preparation (continued)
(d) New standards, interpretations and amendments effective or applied for the first time

The Group has not adopted any significant new standards, interpretations and amendments in
the interim period with a material impact on the financial statements.

(e) Accounting estimates and judgements made

Besides those listed below, there have been no material revisions to the nature and amount of
estimates of, and judgements in relation to, amounts reported in prior periods.

- Management and the Board have applied judgements in assessing for indicators of
impairment with respect to the Group’s goodwill. Refer to note 11.

- To determine the cash flows in applying the effective interest method to the Group’s
new borrowings (refer note 12), management judgement has been applied to determine
the most expected maturity event and corresponding total repayments made.


(f) Going concern

These condensed consolidated financial statements for the six months ended 31 December
2025 have been prepared on the going concern basis, which assumes that the Group will
continue to be able to meet its liabilities as they fall due for a period of at least 12 months
from the date of signing these condensed financial statements.

Given the Group’s net operating loss of $1,793,429 and net operating cash outflow of
$1,520,360 for the six months ended 31 December 2025 the Board and management have
prepared operating cash flow forecasts for the next 12 months. These indicated that the
Group will have sufficient cash to meet its minimum expenditure commitments and support
its current levels of activity as long as the growth targets within these operating cash flow
forecasts are met.

The Group’s liquid net assets position has been improved by the successful completion of a
pro-rata 1 for 3 renounceable rights offer, announced on 3 November 2025, and a placement
of shares as a result of oversubscription that was completed in December 2025. The rights
offer and oversubscription resulted in the Group receiving $2,022,750 after all costs of the
issue are taken into account. The Group remains committed to raising further equity to
meet the business requirements to reach profitability and become self-sustaining only if
the operating cash flow forecast growth is insufficient.

11
Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



2. Basis of preparation (continued)
(f) Going concern (continued)

Accordingly, the Directors are focussed on plans to increase the cash flow of the business and
have also evaluated the following factors in determining that the going concern assumption is
appropriate:

(i) Sales and operational improvements: The Group’s operational forecasts include
assumptions regarding a number of opportunities in key markets. As at the date of
signing these consolidated financial statements, the Group has achieved the
following:

- Further expanded the product portfolio into Germany, with the launch of New
Zealand cultivated products in August 2025 reinforcing the Group’s position in
Europe’s largest medicinal cannabis market;
- Introduced New Zealand grown genetics into key clinic chains and distributors
in Australia;
- Recently released additional products into the New Zealand market expanding
the portfolio to four products;
-
- Successfully launched dried flower products into Czechia in September 2025

(ii) Debt facility: Management and the Board were successful with the Group’s existing
shareholders and secured additional funding (debt) to meet operational cashflow
requirements. As at 31 December 2025, $1,060,000 had been provided to the group
under this debt facility. Of this amount $756,000 had been received during the six
months ended 31 December 2025, $304,000 had been received in the prior financial
year.

(iii) Facility sale: The Group is actively pursuing a buyer for its Gisborne facility which
includes the leasehold buildings held as available for sale in addition to manufacturing
and extraction equipment. The Group continues to expect the sale and settlement of
these assets and is actively engaged with a number of interested parties. Upon
settlement, the consideration will firstly be applied to the Group’s loan against the
building, inclusive of accrued contractual interest and additional $100,000 bullet
payment (refer to note 11), with the net proceeds amount then being available to the
Group.

The Group has also seen a significant increase in operating revenue in the six months ended 31
December 2025 giving further confidence in the Group’s operating model. The Group also
forecasts a number of significant operating milestones over the coming 12 months including:

- Continued expansion of product offerings in Australia, Germany, Czechia and New
Zealand; and
- Establishment of Rua genetics in several countries including:
o Canada under license with Apollo Green; and
o Trial crops in New Zealand and Australia.

These will further the Group’s plans to achieve a sustainable operating model in line with its
projections.

12
Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



2. Basis of preparation (continued)
(f) Going concern (continued)

The Directors believe that the Group will be successful in achieving the above, and on this
basis, are of the view that it is appropriate to continue to adopt the going concern assumption
in the preparation of these consolidated financial statements.

Should the Group be unsuccessful in achieving its revenue forecasts, or if actual revenue growth
is lower than projected, the proceeds from the sale of the facility are less than expected the
Group may be unable to manage its minimum cash expenditure requirements.

These events and conditions identified indicate that material uncertainties continue to exist
that may cast significant doubt on the Group’s ability to continue as a going concern and,
therefore, that it may be unable to realise its assets and discharge its liabilities in the normal
course of business.

These consolidated financial statements do not include any adjustments relating to the
classification and recoverability of recorded asset amounts or to the amounts and classification
of liabilities that may be necessary should the Group be unable to continue as a going concern.

3. Segment Reporting
The Group operates in one segment, its primary business being research and development and
the sale of pharmaceutical products in New Zealand, Europe and Australia.

The chief operating decision maker has been identified as the Chief Executive Officer (CEO),
as they make all the key strategic resource allocation decisions related to the Group’s
segment.

The Group derives revenue from customers through the sale of goods in New Zealand, Europe,
and Australia. The Group’s revenues are analysed by geography on the basis of the
jurisdiction in which the goods are sold and have been disaggregated in this way in note 5.

13

Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



4. Financial instruments and Financial Risk Management, and Capital Management

(i) Categories and fair values of the Group’s financial instruments



Financial
Assets
at Amortised Cost
Financial
Liabilities
at Amortised Cost
Financial
Liabilities
at Fair Value through
profit or loss
Total
Carrying Amount
Fair
Value

31 December 2025 (unaudited)
$ $ $ $






Cash and cash equivalents 2,166,289 -
-
2,166,289 (a)

Trade and other receivables 372,287 -
-
372,287 (a)

Trade and other payables - (865,961)
-
(865,961) (a)

Lease liabilities
(c)
- (44,190)
-
(44,190) (b)

Borrowings -
(1,768,700)
-
(1,768,700)
(a)

Derivative financial liabilities (note 11) -
-
-
-
n/a


Total 2,538,576 (2,678,851)
-






30 June 2025 (audited)







Cash and cash equivalents 241,421 -
-
241,421 (a)

Trade and other receivables 289,065 -
-
289,065 (a)

Trade and other payables - (688,412)
-
(688,412) (a)

Borrowings (725,307)
-
(725,307) (a)

Lease liabilities
(c)
- (78,688)
-
(78,688) (b)

Total 530,486 (1,492,407)
-


(a) Due to their short-term nature, the carrying value of these financial instruments approximates their fair value.
(b) Not required to be disclosed per NZ IFRS 7.
(c) Includes Lease liabilities with disposal groups held for sale (note 17)

14

Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



5. Revenue from contracts with customers

During the six-month period ended 31 December 2025, the Group:

- Commenced sales of goods in Czechia and the United Kingdom;
- Introduced new products into the New Zealand market.

Revenue streams recognised by the Group include:
For the six
months ended
31 Dec 2025
(unaudited)
For the six
months ended
31 Dec 2024
(unaudited)
$ $

Sale of goods – New Zealand 535,746 184,279
Sale of goods – Australia 672,047 224,909
Sale of goods – other International markets 125,980 284,641
Total 1,333,773 693,829

6. Other income

Other income streams recognised by the Group include:


Note
For the six
months ended
31 Dec 2025
(unaudited)
For the six
months ended
31 Dec 2024
(unaudited)
$ $

Government grant income
Research and development grant income 75,817 73,225
Other government grant income 32,495 44,484
108,312 117,709


Sundry income 13,228 77,674
Total 121,540 195,383

15
Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



7. Finance income and costs

Finance income and costs incurred by the Group comprise:

Note For the six
months ended
31 Dec 2025
(unaudited)
For the six
months ended
31 Dec 2024
(unaudited)


Finance income $ $
Interest income – financial assets at amortised
cost

1,106 1,810
Gain on loan modification 11 26,291 -
Total finance income 27,397 1,810

Significant transactions during the six months to 31 December 2025:

Gain on loan modification income in the period relates to the impact of the Group
renegotiating its existing short-term lending (refer note 11).


Note For the six
months ended
31 Dec 2025
(unaudited)
For the six
months ended
31 Dec 2024
(unaudited)


Finance costs
Interest expense – leases 2,857 7,065
Interest expense – financial liabilities at
amortised cost

11 165,482 36,051
Total finance costs 168,339 43,116


8. Income tax

Significant management judgement has been exercised to determine that future taxable profits
for the Group are beyond a reliable forecast horizon and that no net deferred tax asset should
be recognised.

An amount of deferred tax asset of $8,983,500 (30 June 2025: $8,604,612) has not been
recognised, comprising of: (i) A deferred tax asset arising from carried forward tax losses of
$8,983,500 (30 June 2025: $8,604,612); and (ii) other temporary differences of $nil (30 June
2025: $nil).

16
Rua Bioscience Limited

Notes forming part of the Condensed Consolidated Financial Statements
For the six months ended 31 December 2025



9. Inventory

Significant transactions during the six months to 31 December 2025

The Group has reported write-downs of inventory to net realisable value of $102,373 (2024:
$13,150) in the consolidated statement of profit or loss and other comprehensive income.

10. Intangible assets and Goodwill


The Group tests whether goodwill has suffered any impairment on an annual basis or where
there are specific indicators of impairment in the period.

In assessing for indicators of impairment, the Board has considered the following factors:
- The Group’s business performance in the period to date, and expected performance for
the remaining six months of the financial year;
- The Group’s progress to date with respect to its recent capital raise (refer to note 2(g));
- The likelihood that the Group will successfully sell its facility (refer to note 17); and
- The Group’s market capitalisation as at 31 December 2025.
The Board and Management believe these factors are substantially the same as at 30 June 2025
and are of the view that there were no indicators as at 31 December 2025 which would require
goodwill to be tested at that date. As such, there was no impairment recognised in respect of
the Group’s goodwill.

17
Rua Bioscience Limited

Notes forming part of the interim consolidated financial statements
For the six months ended 31 December 2025



11. Borrowings

Borrowings drawn down in the six-month period ended 31 December 2025 include:
(i) Short-term lending - The Group also renegotiated its existing short-term lending which
was previously due to mature as at 30 June 2025 on 19 December 2025.

The renegotiations resulted in:

- A new maturity date of 30 June 2026;

- An option to convert the loan into a variable number of ordinary shares of the
company provided to the lender (‘conversion feature’), with the exercise price
based on the 20-day volume-weighted-average-price (‘VWAP’) prior to exercise.

The renegotiations were accounted for as a substantial modification requiring the
derecognition of the carrying value of the original loan, and recognition of the new
renegotiated loan at its fair value - resulting in a gain of $26,291, recognised within
Finance income (note 7) in the consolidated statement of profit or loss.

The conversion feature of the new renegotiated loan represents an embedded
derivative at fair value through profit and loss. Management have determined that the
fair value of the conversion feature upon modification of the loan, and at reporting
date, was immaterial.

The embedded derivative will continue to be subsequently fair valued through until
exercise or expiry of the conversion feature, with any fair value gains or losses
recognised in the consolidated statement of profit or loss.

All other terms and conditions under the loan remains unchanged.

(ii) Inventory finance – During the period ended 31 December 2025, the Group entered
into a number of additional lending arrangements to assist in managing working capital
cash flows. The loans have a 12-month maturity and accrue interest on a monthly basis.
The loans are secured over the Group’s inventory holdings. An additional $756,000 was
drawn down in the period ended 31 December 2025.

Lenders were also issued additional warrants for no further consideration which give
the holders the right to purchase ordinary shares at a fixed price 12 months after the
loan draw down date. The warrants expire 3 years after they become exercisable.

The arrangements are accounted for as compound financial instruments with the
warrant component recognised directly in equity. The Group recognised an additional
$70,621 as warrant equity in the consolidated statement of financial position.


Note 31 Dec 2025
(unaudited)
30 June 2025
(audited)


$ $

Short-term lending 397,890 376,121
Inventory finance 985,385 280,789
Supplier finance arrangements – inventory 263,387 68,397
Supplier finance arrangements – insurance 122,038 -
1,768,700 725,307

18
Rua Bioscience Limited

Notes forming part of the interim consolidated financial statements
For the six months ended 31 December 2025



12. Related party transactions

Six Months to 31 December 2025 and 31 December 2024

The Group has no ultimate parent entity. There are no individual shareholders holding more
than 20% of the ordinary shares of the Group at the interim reporting date.

During the period the Group entered into the below transactions with entities related to
shareholders and key management personnel.

Nature of
transactions
Transaction
amount
Amounts
receivable
(payable)

31 December 2025 For the six
months ended
31 Dec 2025
(unaudited)
31 December
2025

(unaudited)
$ $

Zenoch Management Limited Purchases 24,750 -

Teresa Ciprian
Loan
(1)
- (54,000)

Interest expense 6,643 -

Tony Barclay
Loan
(1)
- (18,000)

Interest expense 1,772 -

(1)
Inventory finance loan (per note 11).

Nature of
transactions
Transaction
amount
Amounts
receivable
(payable)

31 December 2024 For the six
months ended
31 Dec 2024
(unaudited)
31 December
2024

(unaudited)
$ $
Bentleys (QLD) Pty Ltd Purchases 353 -
Zenoch Management Limited Purchases 28,875 -

During the period the following key management personnel also purchased ordinary shares
and other equity instruments of the Company for cash consideration:

For the six months ended 31 December 2025
(unaudited)
$ # of shares # of warrants

Tony Barclay (Director) 32,000 1,200,000 100,642
Teresa Ciprian (Director) 13,125 175,000 -
Anna Stove (Director) 19,366 774,632
64,491 1,349,632 100,642

19
Rua Bioscience Limited

Notes forming part of the interim consolidated financial statements
For the six months ended 31 December 2025



13. Related party transactions (continued)

Key management personnel compensation

Compensation of key management personnel (being those persons having authority and
responsibility for planning, directing and controlling the activities of the Group, including the
directors) was as follows:

For the six months
ended 31 December
2025 (unaudited)
For the six months
ended 31 December
2024 (unaudited)
$ $

Directors’ fees 124,044 118,419
Short-term employee benefits 132,162 130,238
Defined contribution plan payments 4,121 4,122
Share-based payment expense 69,625 26,635
Total key management personnel
compensation

329,952 279,414

14. Contingent liabilities

There were no contingent liabilities at the end of the period (30 June 2025: nil).

15. Research and development costs

All research and development costs are expensed as incurred. The Group’s research and
development operations are not actively in pursuit of commercial licenses and as such, the
Group does not consider itself to be in the development phase.

20
Rua Bioscience Limited

Notes forming part of the interim consolidated financial statements
For the six months ended 31 December 2025


16. Share Capital



31 December 2025
(unaudited)
30 June 2025
(audited)
Number Number

Opening shares 223,648,012 159,750,579

Shares issued
(1) , (2)
114,393,693 63,897,433

Total share capital 338,041,705 223,648,012


(1)
During the six months ended 31 December 2025:

- 16,799,999 ordinary shares were issued in August and September 2025 in order to fund
short-term working capital;

- 92,627,157 ordinary shares were issued on 18 December 2025 as part of a pro-rata 1-
for-3 renounceable rights offer and placement of oversubscription;

- 4,966,537 ordinary shares were issued as a share-based payment to reward the Group’s
staff for past performance and incentivise future performance.

(2)
During the year ended 30 June 2025:

- 3,968,254 ordinary shares were issued on 20 September 2024 as bridging capital prior
to the Group’s capital raise;

- 47,119,179 ordinary shares were issued on 6 December 2024 as part of the Group’s
capital raise in the period;

- 12,810,000 ordinary shares were issued as part of the pro-rata rights offer following the
Group’s capital raise

21
Rua Bioscience Limited

Notes forming part of the interim consolidated financial statements
For the six months ended 31 December 2025


17. Assets held for sale

As reported in the Group’s 30 June 2025 financial statements, the continues to market its
manufacturing facility with a view that the asset group remains available for sale.

As at 31 December, the disposal group is comprised of:

Note 31 December
2025
30 June 2025
(audited)



Assets classified as held for sale
Property, plant and equipment

860,507 860,507
Right-of-use assets

18,430 30,155
Total assets held for sale

878,937 890,662



Liabilities classified as held for sale
Lease liabilities
4,11
(18,430) (30,155)
Total liabilities classified as held for sale (18,430) (5,988)

Total net assets held for sale

860,507 860,507

An impairment expense of $11,725 was recognised on right-of-use assets in the disposal group
held for sale as the carrying value of the asset exceeded its fair value less costs to sell after
the associated lease liability was remeasured (refer note 9).

Assets classified as held for sale during the period ended 31 December 2025 were measured at
the lower of their carrying value and fair value less costs to sell.

The fair value of the building and right-of-use asset associated with the lease of the land upon
which the building sits was derived using the sales comparison approach. The key input under
this approach was the recent observable selling prices for assets of similar nature, adjusted for
condition and location.

18. Events after the reporting date

There were no material events after the reporting date.

---

Half-Year
Results announcement



Results for announcement to the market
Name of issuer Rua Bioscience Limited
Reporting Period 6 months to 31 December 2025
Previous Reporting Period 6 months to 31 December 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations $1,455 64%
Total Revenue $1,455 64%
Net profit/(loss) from continuing
operations
($1,793) 0.05%
Total net profit/(loss) ($1,793) 0.05%
Interim/Final Dividend
Amount per Quoted Equity Security Not proposing to pay a dividend
Imputed amount per Quoted Equity
Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.01 $0.02
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Refer unaudited interim financial statements
Authority for this announcement
Name of person

authorised to make
this announcement
Paul Naske
Contact person for this
announcement
Paul Naske
Contact phone number +64 (21) 445 154
Contact email address paul.naske@ruabio.com
Date of release through MAP

27 February 2026

Unaudited financial statements accompany this announcement.