BLIS Technologies Limited logo

Strong revenue and underlying earnings growth

Full Year Results20 May 2026BLTConsumer Staples

BLIS Technologies Limited
399 Moray Place, Dunedin, New Zealand, 9016

blis.co.nz

info@blis.co.nz


21 May 2026


Strong revenue and underlying earnings growth


BLIS Technologies Limited (BLIS) is pleased to report strong revenue and underlying earnings growth

for the year ended 31 March 2026 (FY26). The financial year was marked by disciplined commercial

execution, meaningful progress on key strategic partnerships, and resolution of the significant

intellectual property matter that had carried over from FY25.


Revenue for FY26 was $14.7m, a 16% increase on FY25 ($12.6m). This was underpinned by strong

growth across our B2B ingredient and private label revenues, together with continued B2C

momentum, particularly in the New Zealand wholesale channel.


As detailed in the 1H26 commentary, FY26 earnings were impacted by a one-off supply chain cost

increase of $0.9m. After adjusting for this, FY26 underlying EBITDA was $1.8m, and a significant step

forward in realising the earnings potential of the business. Reported EBITDA for the year was $0.9m,

compared to $1.0m in FY25. Net profit after tax (NPAT) was $0.7m (FY25 $0.8m), with underlying

NPAT of $1.6m representing a 90% improvement on FY25.


BLIS maintains a strong balance sheet to support future growth and innovation. Cash and short-term

deposits at 31 March 2026 totalled $8.5m (FY25 $9.7m). This movement reflects the investment in

inventory during the period associated with the one-off supply chain cost.


INTELLECTUAL PROPERTY

The patent issue with Bluestone Pharma GmbH (BSP) and Lactosan GmbH & Co. KG was resolved in

July 2025, resulting in the relevant patent applications being jointly owned by BLIS and BSP,

providing certainty of access for BLIS and its licensees to this technology. As part of the settlement,

all claims between the parties were released.

BLIS and BSP also renegotiated a five-year extension to their existing supply agreement. This

provides commercial continuity and a strengthened foundation for the ongoing European ingredient

relationship.

Two new patents were granted during the year, further strengthening BLIS’ global intellectual

property position. The patents cover antiviral applications of Streptococcus salivarius K12 and

Streptococcus salivarius M18, as well as enhanced formulations combining BLIS probiotic strains with

specific prebiotic sugars. These grants validate BLIS’ R&D leadership and open new product

development opportunities in high-value global health markets.


STRATEGY UPDATE

The revised Technology Licence and Distribution Agreement with Probi AB announced in October

2025 represents a significant commercial milestone. The Agreement extends Probi’s exclusive rights

to BLIS K12® and BLIS M18® across the USA, Canada, and certain EMEA markets, and for the first

time introduces pet nutrition into Probi’s licensed territories. The burgeoning pet health market

represents a meaningful adjacency that we are well positioned to address through Probi’s

established commercial network.




BLIS Technologies Limited

399 Moray Place, Dunedin, New Zealand, 9016

blis.co.nz

info@blis.co.nz

Our China regulatory pathway for BLIS K12® and BLIS M18® continued to advance during the year. A

key clinical trial commenced in 2H26 and is expected to be complete in 1H27. This trial is central to

our China regulatory strategy and represents a material investment in future growth.



OUTLOOK

We enter FY27 with confidence. The combination of strengthened partnerships with our key

business partners and growing B2B momentum provides a solid commercial foundation. Demand for

science backed oral probiotics continues to grow, and BLIS is well placed to benefit from this. To

date, BLIS has suffered minimal economic loss from the uncertainty surrounding the conflict in the

Middle East and does not currently foresee any material change in this.


Our priorities for FY27 are to accelerate growth through continued focus on key markets and

execution of our joint business plans, to support China regulatory and clinical milestones, to advance

R&D and new product development and IP protection, and to utilise the BLIS brand refresh to

continue building consumer brand awareness across digital channels. We will maintain financial

discipline and focus on delivering sustainable, profitable growth.



Ends


For further information, please contact:


Scott Johnson

Chief Executive Officer

+64 21 488 831



About BLIS Technologies Ltd


Delivering proven health benefits through evidence-based, advanced probiotics

BLIS Technologies is an NZX-listed manufacturer of advanced probiotic strains that go beyond the gut.

Combining innovation with evidence-based research and the highest quality production controls enables

the delivery of probiotic solutions for specific health targets including throat health, halitosis (bad breath),

immune support, teeth and gum health and skin health. BLIS

®

products are sold throughout New Zealand

and in Asia, Europe and the USA. More information about BLIS Technologies Ltd can be found at

www.blis.co.nz.


Website: www.blis.co.nz


Instagram: @blisprobiotics #blisk12 #blism18 #blisq24

Facebook: @BLISProbiotics

---

Results announcement



Results for announcement to the market

Name of issuer BLIS Technologies Limited

Reporting Period 12 months to 31 March 2026

Previous Reporting Period 12 months to 31 March 2025

Currency NZD

Amount (000s) Percentage change

Revenue from continuing

operations

$14,668 16%

Total Revenue $14,668 16%

Net profit/(loss) from

continuing operations

$692 (17%)

Total net profit/(loss) $692 (17%)

Interim/Final Dividend

Amount per Quoted Equity

Security

It is not proposed to pay a dividend for the 12 months to 31

March 2026.

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

$0.0088 $0.0082

A brief explanation of any of

the figures above necessary

to enable the figures to be

understood

Please see attached result announcement for commentary on

the result.

Authority for this announcement

Name of person


authorised

to make this announcement

Richard Wingham

Contact person for this

announcement

Richard Wingham

Contact phone number +64 21 284 0446

Contact email address richard.wingham@blis.co.nz

Date of release through MAP


21/05/2026


Audited financial statements accompany this announcement.

---

PROBIOTICS
MADE TO MATTER

ANNUAL REPORT

FOR THE YEAR ENDED

31 MARCH 2026

1
BLIS TECHNOLOGIES LIMITED

CONTENTS

FY26 SUMMARY 2

CHAIR AND CEO REVIEW 3

ESG UPDATE 6

BOARD OF DIRECTORS 10

EXECUTIVE TEAM 12

STATEMENT OF CORPORATE GOVERNANCE 14

DIRECTORS’ INTERESTS 25

DIRECTORS’ RESPONSIBILITY STATEMENT 27

TREND STATEMENT 28

CONSOLIDATED STATEMENT

OF COMPREHENSIVE INCOME 30

CONSOLIDATED STATEMENT

OF CHANGES IN EQUITY 31

CONSOLIDATED BALANCE SHEET 32

CONSOLIDATED STATEMENT

OF CASH FLOWS 34

NOTES TO AND FORMING PART OF THE

CONSOLIDATED FINANCIAL STATEMENTS 35

ADDITIONAL STOCK EXCHANGE

INFORMATION 58

INDEPENDENT AUDITOR’S REPORT 60

COMPANY DIRECTORY 64

2
ANNUAL REPORT

UNDERLYING

EBITDA*

83%

on prior year

FY26

SUMMARY

FY26 REVENUE

BY CHANNEL

FY26 REVENUE

BY REGION

16.0

14.0

12.0

11.5

FY24FY25FY26

12.6

14.7

10.0

8.0

4.0

2.0

-

6.0

$m

REVENUE

16%

on prior year

1.2

1.0

0.8

0.4

0.2

-

0.6

$m

FY24FY25

FY26

0.8

1.0

0.9

EBITDA

8%

on prior year

2.0

1.5

1.0

0.5

(0.5)

(1.0)

-

(0.6)

$m

FY24FY25FY26

1.8

1.1

CASH GENERATED

FROM OPERATIONS

133%

on prior year

31%

30%

24%

15%

Asia Pacific

(excl. NZ)

EMEA

New Zealand

North America

32%

68%

B2B

B2C

PROGRESSION OF CHINA

REGULATORY PROJECT TO

EXAMINATION STAGE

CONFERENCES ATTENDED

OR PRESENTED AT

17

PUBLICATIONS RELATING

TO OUR STRAINS

20

NEW PATENTS GRANTED

2

* FY26 EBITDA adjusted for $0.9m of

one-off supply chain cost increase

during the year.

2.0

1.6

1.4

1.0

0.6

1.8

1.2

0.8

0.4

0.2

-

1.0

1.8

0.8

$m

FY24FY25FY26

3
BLIS TECHNOLOGIES LIMITED

CHAIR

AND CEO

REVIEW

4
ANNUAL REPORT

BLIS Technologies Limited (BLIS) is pleased to report strong revenue and

underlying earnings growth for the year ended 31 March 2026 (FY26). The

financial year was marked by disciplined commercial execution, meaningful

progress on key strategic partnerships, and resolution of the significant

intellectual property matter that had carried over from FY25.

FINANCIAL PERFORMANCE

Revenue for FY26 was $14.7m, a 16% increase on FY25

($12.6m). This was underpinned by strong growth

across our B2B ingredient and private label revenues,

together with continued B2C momentum, particularly

in the New Zealand wholesale channel.

As detailed in the 1H26 commentary, FY26 earnings

were impacted by a one-off supply chain cost increase

of $0.9m. After adjusting for this, FY26 underlying

EBITDA was $1.8m, and a significant step forward

in realising the earnings potential of the business.

Reported EBITDA for the year was $0.9m, compared

to $1.0m in FY25. Net profit after tax (NPAT) was

$0.7m (FY25 $0.8m), with underlying NPAT of $1.6m

representing a 90% improvement on FY25.

BLIS maintains a strong balance sheet to support

future growth and innovation. Cash and short-term

deposits at 31 March 2026 totalled $8.5m (FY25 $9.7m).

This movement re

flects the investment in inventory

during the period associated with the one-off supply

chain cost.

REVENUE CHANNELS AND MARKET

PERFORMANCE

Business to Business Revenue (B2B)

B2B revenue of $9.

9m, up 22% on FY25, represents

68% of total revenue, up from 64% in FY25. This

reflects a deliberate focus on building ingredient

volume through strategic partnerships and

geographic expansion.

Ingredient revenue was the primary driver of B2B

growth, at $7.3m, 17% up on FY25. EMEA ingredient

revenue benefited from strong orders into 1Q26

and shorter reorder cycles from a key European

customer. New customer launches and growing

adoption of BLIS K12

®

and BLIS M18

®

in oral health and

broader immunity applications also contributed. Asia

Pacific was up $0.9m on FY25 with a new customer

onboarded in South Korea in the second half of the

year. North America ingredient revenue was $1.1m,

$0.4m down on FY25 as Probi customers transitioned

from BLIS supplied ingredient to Probi manufactured

ingredient, resulting in an increase in royalty revenue.

Royalty revenue was $1.3m, up 17% on FY25, supported

by the ongoing commercialisation of licensed BLIS

strains through third party brands.

Private label revenue was $1.3

m, up 67% on FY25, with

growth underpinned by our Chinese business

partner’s expansion in the offline professional health

market. The sustained investment this partner has

made in health professional education is delivering

tangible results.

Business to Consumer Revenue (B2C)

B2C revenue for FY26 was $4.8m, up from $4.5m

in FY25. New Zealand wholesale was the standout

performer, with strong product ranging in domestic

pharmacy and a growing focus on dental SKUs that

are demonstrating high consumer repeat purchase

rates. Amazon US revenue grew by 5%, despite the

increased tariff, with advertising ef

ficiency improving

through refined targeting. The BLIS webstore also

delivered growth, as the shift toward direct-to-

consumer channels provides valuable insights into

buyer behaviour and supports loyalty initiatives.

Cross-border e-commerce (CBEC) revenue was

$0.3m, down from $0.6m in FY25, as BLIS supported

a pricing reset to align with new China partners and

a managed exit of smaller daigou resellers from the

market. Consumer sell through at the end market level

rema

ined positive and the activation of BLIS trademarks

in China is expected to improve brand protection and

reduce grey market disruption over time.

INTELLECTUAL PROPERTY

The patent issue with Bluestone Pharma GmbH (BSP)

and Lactosan GmbH & Co. KG was resolved in July

2025, resulting in the relevant patent applications

being jointly owned by BLIS and BSP, providing

certainty of access for BLIS and its licensees to this

technology. As part of the settlement, all claims

between the parties were released.

BLIS and BSP also renegotiated a

five-year extension

to their existing supply agreement. This provides

commercial continuity and a strengthened foundation

for the ongoing European ingredient relationship.

Two new patents were granted during the year,

further strengthening BLIS’ global intellectual

property position. The patents cover antiviral

applications of Streptococcus salivarius K12 and

Streptococcus salivarius M18, as well as enhanced

formulations combining BLIS probiotic strains with

specific prebiotic sugars.

5
BLIS TECHNOLOGIES LIMITED

These grants validate BLIS’ R&D leadership and open

new product development opportunities in high-value

global health markets.

STRATEGY UPDATE

The revised Technology Licence and Distribution

Agree

ment with Probi AB announced in October 2025

represents a significant commercial milestone. The

Agre ement ex tends Probi’s exclusive rights to BLIS K12

®


and BLIS M18

®

across the USA, Canada, and certain

EMEA markets, and for the first time introduces pet

nutri tion into Prob i’s licensed territor ies. Th e burgeoning

pet health market represents a meaningful adjacency

that we are well positioned to address through Probi’s

established commercial network.

Our China regulatory pathway for BLIS K12

®

and

BLIS M18

®

continued to advance during the year. A

key clinical trial commenced in 2H26 and is expected

to be complete in 1H27. This trial is central to our

China regulatory strategy and represents a material

investment in future growth.

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE

BLIS progressed its B Corp certification journey during

FY26, submitting a B Impact Assessment and entering

the queue for B Lab evaluation. This certification

re

flects our commitment to maximising shareholder

returns while holding ourselves accountable to high

standards of social and environmental performance,

transparency, and accountability.

Our Scienc e te a

m maintained the MyGr een Lab highest

GREEN certification status, reflecting the ongoing

commitment to susta

inable laboratory practices. Health

and safety continues to be a priority across all three

sites, with a full external audit undertaken in FY26 and

recommended actions implemented. We are pleased

to report no lost time injuries (LTIs) during FY26,

extending our LTI-free record to seven years.

We continued to invest in people and culture through

t

he ‘Le ading at BLIS’ progr amme, ensuring BLIS re mains

a great place to work and that our people are equipped

to lead through growth.

BOARD CHANGES

FY2 6 saw Geoff Plunket stand down as Chair in October

2025 after just over four years in the role and retire as a

Director in March 2026 after eight years on the Board.

Ge

off’s leadership was instrumental in advancing BLIS’

strategic growth initiatives, strengthening governance,

a

nd positioning the Company for long-term success in

the global probiotics market. We thank Geoff sincerely

for his substantial contribution.

Dame Alison Stewart assumed the role of Chair in

October 2025, bringing significant scientific expertise

and seven years of BLIS board experience. Paul Munro

was appointed as an Independent Non-Executive

Director in March 2026. Paul brings extensive financial,

commercial, and governance experience from a wide

range of public and private entities, including his prior

role as CEO of Christchurch City Holdings Limited and

his current directorships of Scales Corporation Limited

and New Zealand King Salmon Investments Limited.

TEAM ACKNOWLEDGEMENT

August 2025 marked the 25th anniversary of BLIS,

celebrated with a cocktail event at the Dunedin

Museum attended by past and present employees and

key stakeholders who have supported the Company

over the past quarter century. A highlight of the

evening was hearing from Professor John Tagg, who

founded BLIS on the basis of his pioneering research

into oral probiotic strains. John remains on staff and

continues to contribute to BLIS’ scientific development.

We are grateful for his enduring contribution.

We extend our gratitude to the wider BLIS team for

their commitment and professionalism throughout the

year, and we thank our customers, business partners,

and shareholders for their continued support.

OUTLOOK

We enter FY27 with confidence. The combination

of strengthened partnerships with our key business

partners and growing B2B momentum provides a

solid commercial foundation. Demand for science-

backed oral probiotics continues to grow, and BLIS

is well placed to benefit from this. To date, BLIS has

suffered minimal economic loss from the uncertainty

surrounding the conflict in the Middle East and does

not currently foresee any material change in this.

Our priorities for FY27 are to accelerate growth

through continued focus on key markets and

execution of our joint business plans, to support China

regulatory and clinical milestones, to advance R&D

and new product development and IP protection, and

to utilise the BLIS brand refresh to continue building

consumer brand awareness across digital channels.

We will maintain financial discipline and focus on

delivering sustainable, profitable growth.

Alison Stewart Scott Johnson

Chair

Chief E

xecutive Officer

6
ANNUAL REPORT

* 2025 Engagement Survey

HEALTH & WELLBEING

of our team agree that

wellbeing is genuinely

prioritised*

93%

of our team say workplace

flexibility allows balance

between work and

personal life*

100%

ESG

UPDATE

At BLIS, it is our core purpose to

deliver innovation to consumers to

improve their health & wellbeing, and

we remain committed to doing this

in alignment with our Environmental,

Social and Governance (ESG) principles.

Our focus has been linked to the United

Nation’s Sustainable Development Goals,

and are grouped into four main areas

as follows:

Accessible to the world

OUR PURPOSE:

Being the best at developing

probiotic solutions for the

health and wellbeing of

global customers

Full external audit review

of H&S with ALL priority

recommendations addressed

within 4 months of the report

being published

7
BLIS TECHNOLOGIES LIMITED

ENVIRONMENTINNOVATION & RESEARCH

Revenue Growth (FY23–FY26)

44%

of our team have gone

through our internal ‘Leading

at BLIS’ program focusing

on leadership development,

with the other 47% lined up

in FY27

53%

Intern projects supported

in FY26

3

Actively support academic

research – currently

undertaking a collaboration

with University of Otago to

support a Masters Student

COMMUNITY

of employees paid the

living wage

100%

22%

of our team have more than

ten years tenure

My Green Lab

accredited commercial lab in

New Zealand and have been

re-certified 3 times since

1ST

of our team agree the

company lives the values

of caring for people,

place, and planet*

90%

of our team believe

BLIS demonstrates strong

environmental and social

commitments*

77%

of our team say sustainability

is integrated into daily

practices*

74%

We make an annual donation

to The Bowling Club, a local

social purpose eatery doing

great things in our community

Our Scientific Services Team

generated 3x white papers,

and 6x presentations –

including giving a speech

at Probiota Global

Created and implemented

a Supplier Code of Conduct

Completed a Value Chain

Analysis for our impact on

the environment

8
ANNUAL REPORT

DIVERSITY AND INCLUSION

At BLIS we recognise that diversity of thought, background and

experience strengthens decision making and supports sustainable

long term performance. Our team is committed to fostering an inclusive

culture where all people are respected, supported and able to contribute

fully. Our leaders are committed to embedding diversity and inclusion

into our people, culture and leadership practices.

The Board has adopted a Diversity and Inclusion (D&I) Policy that sets out our

commitment to equitable and inclusive practices across the organisation.

Measurable diversity and inclusion objectives have been established to

support this policy, with progress assessed by the Board against these

as part of its governance and performance oversight responsibilities.

of our team feel empowered

and authentic at work*

96%

‘Coffee with the Chiefs’ where

the Leadership Team go to a

specific site and sit for a cuppa

and an informal chat about

the business. Everyone has the

opportunity to ask questions

and engage with senior leaders

in a setting where they aren’t

being presented to – making it

more accessible and inclusive

for all.

12

Quarterly Updates – Our ‘town

hall’ (including our remote-

based team members) where

the Leadership Team presents

about the performance of the

quarter and celebrates and

recognises wins and successes

so that we can all learn about

other departments including

3 Quarterly Quizzes and

1 Midwinter Dinner to connect!

4

BBQ Breakfasts to foster

inclusion, reduce barriers to

communicating and bring

all departments together in

a more informal setting at

one site for a Brekkie Burger

at Birch St – cooked by the

Leadership Team.

6

of our team see Diversity

& Inclusion as a clear

organisational priority*

68%

* 2025 Engagement Survey

FY26 DIVERSITY &

INCLUSION OBJECTIVES

EVALUATION FROM BOARD AND

COMMENTARY ON PERFORMANCE (FY26)

Gender Representation

at Board Level

• Maintain a minimum

of 40% female

representation on

the Board.

• Maintain at least 40%

male representation

to ensure balance.

BLIS currently has

60% female and

40% male directors,

meeting the

minimum threshold

and demonstrating

strong gender

diversity at

governance level.

Gender Representation

in Senior Leadership

• Maintain at least 40%

female representation

across senior leadership

positions (CEO and

direct reports).

• Maintain at least 40%

male representation

to ensure balance.

50% of the senior

leadership team are

women and 50% are

male, exceeding the

stated measurable

objectives.

Overall Workforce

Gender Balance

• Maintain a minimum

of 40% female

representation in the

workforce.

• Maintain at least 40%

male representation

to ensure balance.

Female

representation across

the company is 41%

and 59% male, in

line with the stated

objectives.

D&I Policy

Implementation

• Conduct at least one

annual D&I awareness

activity or training for

all staff.

BLIS conducted a Diversity & Inclusion Survey driven

by the ESG Committee to gain an understanding of

the team and their cultural backgrounds as this was

not something we had recorded. The outcome of

the survey is to inform inclusion initiatives for FY27

and how we can share different cultures across

our sites – how people would like to learn and be

included. Several initiatives were run throughout

FY26 including Mental Health Awareness Week,

Māori Language Awareness Week, along with several

events to promote inclusiveness like monthly BBQ

breakfasts for the whole team, ‘Coffee with the Chief’

where teams get an informal opportunity to sit with

members of the Leadership Team for a chat and

Chinese New Year morning tea across sites.

40%

60%

Female

Male

59%

41%

Female

Male

59%

41%

Female

Male

50%50%

9
BLIS TECHNOLOGIES LIMITED

AN UPDATE ON B CORP

OUR GOAL IS:

To become a Certified B Corp

meeting the highest verified

standards of social and

environmental performance.

A B Corp certification is an

independent verification, that

when achieved, demonstrates

high social and environmental

performance and a legal

commitment by a Company to

consider all stakeholders. B Corp

accredited organisations are

creating a material positive impact

on society and the environment

through business and operations

considering stakeholder

interests including shareholders,

employees, suppliers, community

and the environment.

SO FAR, WE HAVE:

Shareholders voted to

amend our constitution to

solidify our commitment

to consider all stakeholders

and ensure we met

requirements to become

a B Corp

Submitted the B Impact

Assessment (BIA)

Made it into the verification

process, where we are

currently providing

additional information and

supporting documentation

around our BIA

THIS YEAR WE PLAN TO:


Successfully become an

accredited B Corp


Continue to use the B Corp

framework to inform areas

that we can continue to

grow and initiatives we can

undertake to improve our

impact on society and the

environment

10
ANNUAL REPORT

AMELIA (AIMEE)

MCCAMMON

Independent

non-executive Director

Chair of People and Performance

Committee and member of Audit

and Risk Committee

Aimee is Wellington based and

was appointed to the Board in

October 2021. Aimee is CEO of

Pic’s Peanut Butter. She is an

experienced strategist and brand

builder with deep knowledge of

consumer marketing. Her brand

experience spans an array of New

Zealand’s power brands including

Whittaker’s, Toyota, Lotto, Tourism

NZ and 42 Below.

Aimee was previously CEO of

entertainment, advertising and

technology company, Augusto

Group. Her career has spanned

roles as General Manager of

Peter Jackson’s Park Road Post

Production, senior management at

Assignment Group and Trade Me,

and many years with the Saatchi

& Saatchi network in Wellington,

Auckland and New York.

Aimee has a Bachelor of

Commerce from Auckland

University, and has completed

leadership training at Omnicom

University in Shanghai and

Harvard Business School. She is

on the Board of the New Zealand

Film Commission.

DAME ALISON STEWART

Chair, Independent

non-executive Director

Member of People and

Performance Committee

Alison is Christchurch based and

was appointed to the Board in

September 2018.

Alison brings to the Board

governance and commercial

research and development

experience within the international

biotechnology industry. Alison has

held key executive leadership roles

in New Zealand and US corporates

and understands the drivers for

successful commercialisation of

research. Alison is an experienced

research and innovation leader

with expertise in microbe-based

product development, patents,

IP protection, new product

pipeline and development of

strategic partnerships with large

international corporations.

Alison is a Distinguished Emeritus

Professor from Lincoln University,

New Zealand and was elected a

Companion of the NZ Order of

Merit in 2011 for her contributions

to biology. In 2025 she was elected

a Dame Companion (DNZM) of the

NZ Order of Merit, in recognition

for her significant career focused

on sustainable plant protection, soil

biology and plant biotechnology.

DR BARRY RICHARDSON

Independent

non-executive Director

Chair of Audit and Risk

Committee and member of

People and Performance

Committee

Barry is Dunedin based and was

appointed to the Board in July 2018.

He joined the NZ Dairy Board in

1985 after many years in research

and development to undertake

business development roles in

several joint venture companies.

In 1991, Barry joined Tatua Dairy

Co. Ltd to develop a milk biologics

business based on high value

milk ingredients and was later

also appointed GM, International

and Strategic Development. Barry

was appointed CEO at Westland

Milk Products Ltd in 2002, when

they chose to market their own

products following deregulation

of the dairy industry in late 2001.

After consulting to BLIS

Technologies in 2006 Barry was

appointed CEO in 2007 during the

transitional years through to 2016.

Barry has an M.Sc. (Hons) and

PhD from Massey University. He

is a Fellow of the NZ Institute of

Food Science and Technology and

received the JC Andrews award for

distinction in Food Science and

Technology in 2003.

BOARD OF

DIRECTORS

11
BLIS TECHNOLOGIES LIMITED

PAUL MUNRO

Independent

non-executive Director

Member of Audit and Risk

Committee

Paul was appointed to the Board

in March 2026. Paul has extensive

governance experience from a

wide range of public and private

entities. Prior to his governance

career, Paul spent 24 years with

Deloitte as a Corporate Finance

Partner, primarily working with

large corporates, leading projects

and M&A assignments.

Following his time with Deloitte,

Paul was CEO for Christchurch

City Holdings Limited. Paul is

currently a Director and ARC

Chair of Scales Corporation

Limited, and a Director and Chair

of the Audit, Finance, Risk and

Project Development Committee

at New Zealand King Salmon

Investments Limited. In addition

to these roles, Paul is currently on

the board of a number of private

companies, including Chair of

Orion New Zealand Limited,

Tait International Limited and

Cambridge Partners Limited.

ANITA JOHANSEN

Non-executive Director

Anita was appointed to the Board

in January 2024. Anita is the CEO

of Probi AB. Probi’s foundation

rests on science, leveraging state-

of-the-art R&D and manufacturing

expertise to create standout

probiotic products that offer proven

value. Anita is also currently serving

as an elected Board member of

the International Association of

Probiotics (IPA).

Anita earned her Master of

Pharmacy and her PhD degree

in Pharmaceutical Technology

from the Danish University of

Pharmaceutical Sciences, University

of Copenhagen. Throughout her

career she has been working with

product development and held

leadership positions in global

consumer healthcare companies,

such as Ferrosan, Pfizer Consumer

Healthcare, Novozymes, and USP

Zdrowie. Anita joined Probi in

April 2022 as the Vice President

of Research & Development,

and since April 2023 has been

the Chief Executive Officer of

Probi. Anita leads by creating and

leading effective high performing

teams and mentoring, inspiring

and growing new talent. Anita

is passionate about promoting

the advantages of good bacteria

by delivering customer relevant

innovations supported by science.

12
ANNUAL REPORT

EXECUTIVE

TEAM

SCOTT JOHNSON

Chief Executive Officer (CEO) | BCom (Econ), MBA, CMInstD

Appointed in January 2024, Scott is an experienced CEO with over 35 years of experience

in the consumer and health and wellness sectors both internationally and within

Australasia with businesses such as IBM, Frucor-Suntory and the GO Healthy Group.

RICHARD WINGHAM

Chief Financial Officer (CFO) | CA, BCom (Accounting), MInstD

Richard was appointed to the role of CFO for BLIS Technologies in November 2017.

Richard is a Chartered Accountant with over 30 years experience, including various

senior finance roles across the dairy FMCG, construction and health sectors. His skills

cross over manufacturing, project management, information technology and strategic

planning.

DR JOHN HALE

Chief Technology Officer (CTO) | PhD

John completed his PhD studying bacteriocins (BLIS) under the supervision of Professor

John Tagg at the Department of Microbiology and Immunology, University of Otago.

He carried out post- doctoral research at the University of British Columbia (Vancouver,

Canada) and Monash University School of Pharmacy (Melbourne, Australia) investigating

the modes of action of antimicrobial peptides. John joined BLIS Technologies in 2011

and leads the Scientific Services team. John is currently an elected member of the

International Probiotics Association (IPA) and BiotechNZ Council.

JENNIFER WALKER

Chief Revenue Officer (CRO) | BA, MBA

Jennifer joined BLIS Technologies in February 2022 having extensive global marketing

experience within consumer and wellness sectors in both start-ups and larger

corporates. Jennifer has a strong experience base across eCommerce, brand and retail

marketing, having worked for international brands such as PUMA and corporates

focused on the health and wellness sector.

ASHLEIGH CHILDS

Head of People, Culture and PMO | BCom (Hons) in Management

Ash joined the BLIS team in 2021 as People & Culture Manager, bringing over a decade

of experience in the People & Culture space within tourism, health, and education

industries. Ash’s leadership is defined by a strong commitment to creating and

developing people- centric practices that align with Company values.

MELISSA DRYSDALE

Head of Quality | BA

Bringing over two decades of extensive experience in Quality and Supply Chain

management, Melissa joined BLIS in 2015, following various Quality and Food

Safety related positions within renowned FMCG giants like Cadbury and Mondelez

International. A passionate advocate for systems enhancement and continuous

improvement, Melissa specialises in driving operational excellence, risk management,

and fostering a culture of quality throughout the organisation.

13
BLIS TECHNOLOGIES LIMITED

14
ANNUAL REPORT

STATEMENT

OF CORPORATE

GOVERNANCE

The Board and Management of BLIS Technologies Limited (BLIS, the Company)

are committed to ensuring that the Company maintains corporate governance

structures which ensure that the Company operates efficiently and effectively

and maintains the highest ethical standards.

This statement of Corporate Governance provides a

summary of the Company’s governance processes

and practices.

The Company’s Corporate Governance policies are

based on the principles set out in the NZX Corporate

Governance Code (NZX Code). This statement is

structured to follow the recommendations of the

NZX Code.

The Board’s view is that BLIS complies with

the corporate governance principles and

recommendations set out in the NZX Code. The Board

believes its governance structures are appropriate and

meet the Company’s strategic objectives.

The Company also complies with the corporate

governance requirements of the NZX Listing Rules.

The Board regularly reviews and assesses BLIS’

governance structures and processes to ensure that

they are consistent with best practice.

This Corporate Governance Statement has been

prepared in accordance with the NZX Code that was

published on 31 January 2025.

BLIS’ key corporate governance documents referred to

in this statement, including charters and policies, can

be found at www.blis.co.nz/investor-centre/charters-

policies (Investor Centre). The Board operates under

a set of guidelines set out in its Directors’ Operations

Manual to assist Directors and Management in carrying

out their duties and responsibilities. The Directors’

Operations Manual covers such matters as:

• Corporate governance matters;

• Role of the Board and composition of the Board;

• Director responsibilities;

• Appointment of, responsibilities of and

remuneration of a Chief Executive Officer;

• Confidentiality and the safeguarding of Company

information;

• Compliance with laws and regulations;

• Shareholder participation; and

• Code of conduct.

This Corporate Governance Statement was approved

by the Board on 20 May 2026.

PRINCIPLE 1 – CODE OF ETHICAL

BEHAVIOUR

“Directors should set high standards of ethical

behaviour, model this behaviour and hold

management accountable for these standards

being followed throughout the organisation.”

Code of Ethics

As part of the Board’s commitment to the highest

standard of conduct, the Company has adopted a

Code of Ethics (Code).

Every new Director and employee is provided with

a copy of the Code. The Code is also available at the

Investor Centre.

The procedure for advising the Company of a

suspected breach is set out in the Code of Ethics.

BLIS also has a Protected Disclosures (Whistleblower)

Policy that sets out the process that serves to

protect employees who raise allegations of serious

wrongdoing by the Company.

Conflicts of Interest

The Code of Ethics sets out the procedure to be

followed where Directors or employees are faced

with a conflict of interest. At all times, a Director must

be able to act in the interests of the organisation

as a whole and in accordance with all relevant laws

and regulations including the NZX Listing Rules.

The personal interests of the Director or employee

(as applicable) and their family must not be allowed

to prevail over those of the Company and its

shareholders generally.

15
BLIS TECHNOLOGIES LIMITED

Protected Disclosures (Whistleblower) Policy

The Protected Disclosures (Whistleblower) policy

provides information and guidelines to protect

employees from retaliatory action where they have

raised allegations of serious wrongdoing or reportable

conduct they honestly believe has been carried out

by any Director, employee, consultant, contractor or

third party.

The main way to make a report is through the Chair

of the Audit and Risk Committee.

No breaches of the Code of Ethics were identified

during FY26 and no matters were raised under the

Protected Disclosures (Whistleblower) Policy.

The Code of Ethics is subject to review by the Board

every two years.

Share Trading by the Company Directors and

Employees

The Board has implemented formal procedures to

handle trading in the Company’s equity securities

by Directors, employees, and contractors/secondees

of the Company. These are set out in BLIS’ Financial

Product Trading Policy which is available at the

Investor Centre. The policy requires that prior approval

is obtained in accordance with the approval process

and authorities specified in the policy before any

trading occurs by any directors or any specified

restricted persons. The policy provides that shares may

not be traded at any time by any individual holding

material information. The fundamental rule in the

policy is that insider trading is prohibited at all times.

The requirements of the policy are separate from, and

in addition to, the legal prohibitions on insider trading

in New Zealand.

PRINCIPLE 2 – BOARD COMPOSITION

& PERFORMANCE

“To ensure an effective Board, there should be

a balance of independence, skills, knowledge,

experience and perspectives.”

Responsibilities of the Board

The role of the Board is to act in the best interests

of the Company and to promote the interests of the

Company and its stakeholders. Directors are elected

by the shareholders to govern the Company. The

Board is the overall and final body of responsibility for

all decision making within the Company.

The Directors have a diverse range of expertise

and experience and are committed to using this

to benefit the Company. The Board is responsible

to shareholders for charting the direction of the

Company by participating in the setting of objectives,

strategy, and key policy areas. The Board is then

responsible for monitoring Management’s running

of the business to ensure implementation is in

accordance with the agreed framework. The Board

delegates the conduct of the day-to- day affairs of the

Company to the CEO within this framework.

The Board operates under a Directors’ Operations

Manual which sets out the roles and responsibilities

of the Board, and other matters as summarised on

page 14.

The primary responsibilities of the Board include:

• Ensuring that the Company’s purpose and goals

are clearly established, and with appropriate

strategies;

• Establishing policies for strengthening the

performance of the Company including ensuring

that Management is pro-actively seeking to

build the business through innovation, initiative,

technology, new products and the development of

its business capital;

• Monitoring the performance of Management,

including the review and monitoring of compliance

with delegated authorities, and of regulatory

compliance;

• Monitoring strategic, financial, social and

environmental performance;

• Overseeing the Company’s compliance with its

continuous disclosure requirements;

• Appointing the CEO, setting the terms of the

CEO’s employment contract, including position

description, reviewing succession planning

and where necessary, terminating the CEO’s

employment with the Company;

• Deciding on whatever steps are necessary to

protect the Company’s financial position and the

ability to meet its debts and other obligations

when they fall due, and ensuring that such steps

are taken;

• Ensuring that the Company’s financial statements

are true and fair and otherwise conform with law;

• Ensuring that information of sufficient content,

quality and timeliness, as the Board considers

necessary to enable it to discharge its duties, is

provided by Management;

• Ensuring that the Company adheres to high

standards of ethical and corporate behaviour;

• Ensuring that the Company has appropriate

management processes for defining risks and

analysing options to minimise, mitigate and

manage risks;

• Ensuring an appropriate capital structure such that

it supports the business strategy; and

• Ensuring that the Company communicates with its

shareholders and stakeholders in a timely manner.

The Board uses committees to address certain issues

that require detailed consideration by members of the

Board who have specialist knowledge and experience.

16
ANNUAL REPORT

The Board retains ultimate responsibility for the

functions of its committees and determines their

responsibilities.

The Board has a statutory obligation to reserve

responsibility for certain matters. It deals directly

with issues relating to the Company’s mission,

appointments to the Board, strategy, business and

financial plans.

The Directors appoint a Chair from amongst the

non- executive members. The Board supports the

separation of the role of Chair and CEO. The Chair’s

role is to provide leadership and to manage the Board

effectively. The Chair has responsibility for:

• Ensuring the integrity and effectiveness of the

governance process of the Board;

• Representing the Board to the shareholders;

• Maintaining regular dialogue with the CEO over

all operational matters; and

• For overseeing the annual work programme.

The Chief Executive Officer is not a Director.

The Board regularly meet without the CEO being

present and has a practice of holding Director-only

meetings either prior to or following each Board

meeting.

The Board receives reports from Management and

has access to all of the information necessary for it to

effectively discharge its duties.

Director Nomination and Appointment

The Board as a whole is involved with recommending

candidates to act as Directors to shareholders. When

considering candidates for nomination, the Board

will consider, amongst other things, the individual’s

experience, qualifications and skills in comparison

to the experience, qualifications and skills of other

Directors, whether that individual is “independent”

and whether that individual would be able to work

effectively with other Directors. A thorough check of

the candidate and their background is undertaken

and shareholders are provided with all material

information that is relevant to the decision on whether

to elect or re-elect a Director.

The Board has the ability to appoint an individual to

fill a casual vacancy on the Board until the Company’s

next Annual Shareholders’ Meeting.

The procedures for the appointment and removal of

Directors are governed by the Company’s constitution

and the NZX Listing Rules.

The Board has determined that based on the

Company’s current size and stage of development

that an optimal number of Directors is five. The

number may increase to six from time to time to allow

for Director succession.

Each year as part of the Board’s annual review process

the capability mix is assessed to evolve in line with

Company’s future development and international

growth plan requirements.

The Board has determined that to operate

effectively and to meet its responsibilities it requires

competencies in disciplines including executive

leadership and strategy, governance, biotechnology

IP development and protection, international sales

and marketing, international supply chain and quality

control, risk and compliance, finance and capital

markets.

The current mix of skills and experience is considered

appropriate for the responsibilities and requirements

of governing the Company. The Board looks to

strengthen its oversight of issues in all disciplines, as

required, via expert advice.

As at 31 March 2026, four of the five Directors on the

Board are independent. Director independence is

considered on a case-by-case basis (in accordance

with the NZX Listing Rules) and is monitored on an

ongoing basis.

Letter of Appointment

All new Directors enter into a written agreement

with the Company setting out the terms of their

appointment.

Board of Directors

Director profiles are shown at pages 10–11 of this

report. The profiles include information on the year

of appointment, skills, experience and background

of each Director.

As at 31 March 2026 the Board comprises five

Directors. Four are independent Directors and all are

non-executive members. Alison Stewart is the Chair

of BLIS and is an independent Director.

Barry Richardson is the Chair of the Audit and Risk

Committee. Aimee McCammon is the Chair of the

People and Performance Committee. Anita Johansen

and Paul Munro are also Directors.

The roles of Board Chair, Audit and Risk Committee

Chair and CEO are not held by the same person.

The Board determines annually on a case-by-case

basis who, in its view, are Independent Directors. The

Board will consider all relevant circumstances when

determining independence. Under the NZX Listing

Rules, a Director is “Independent” when they are

not an employee of the Company and do not have

a ‘Disqualifying Relationship’ (as defined in the NZX

Listing Rules).

The Company does not require Directors to hold

shares in the Company but actively encourages them

to do so. Directors’ share interests are disclosed at

pages 25–26.

17
BLIS TECHNOLOGIES LIMITED

The Board does not have a tenure policy however it

recognises that a regular refreshment programme

leads to the introduction of new perspectives, skills,

attributes and experience. Directors retire by rotation

in accordance with the NZX Listing Rules but are

eligible for re-election on retirement by rotation.

Director Period of Appointment

0–3

YEARS

3–9

YEARS

9+

YEARS

Number of Directors23-

Interest Register

The Board maintains an interest register for the

Company. Any Director who is interested in a

transaction with the Company must immediately

disclose to the Board the nature, monetary value and

extent of the interest.

A Director who is interested in a transaction may

attend and participate at a Board meeting at which

the transaction is discussed but may not be counted

in the quorum for that meeting or vote in respect of

the transaction, unless it is one in respect of which

Directors are expressly required by the Companies Act

1993 to sign a certificate.

Entries made in the interest register of the Company

for the year ended 31 March 2026 are included in the

Directors’ Interests section on pages 25–26.

Diversity

BLIS is committed to achieving a diverse and highly

inclusive workforce. BLIS is committed to growing and

improving on diversity and inclusion at all levels across

the business. The commitment is key to achieving

better business outcomes by leveraging the unique

experiences of people of diverse backgrounds, qualities

and contributions, driving innovation and creativity

through the inclusion of different perspectives,

and attracting talent and retaining a high calibre of

employees who share the BLIS values. A Diversity and

Inclusion Policy has been adopted by the Board and is

available at the Investor Centre.

The Board is responsible for approving the measurable

objectives developed by management and conducting

an annual assessment of this policy. The performance

against these objectives is detailed on page 8. The

gender composition of BLIS’ Directors, Executives and

workforce was as follows:

31 MARCH 202631 MARCH 2025

POSITIONFEMALEMALEFEMALEMALE

Director3 (60%)2 (40%)3 (60%)2 (40%)

Executives*3 (50%)3 (50%)3 (50%)3 (50%)

Employees**13 (41%)19 (59%)15 (45%)18 (55%)

* CEO and Executive team

** Includes Executives

Director Training

The Board ensures that there is appropriate training

available to all Directors to enable them to remain current

on how best to discharge their responsibilities and keep

up to date on changes and trends in areas relevant to

their work. Directors are regularly provided with industry

information and receive copies of appropriate Company

documents to enable them to perform their role.

The Board also ensures that new Directors are

appropriately introduced to Management and the

business.

Board Performance Evaluation

The Board regularly assesses its effectiveness in

carrying out its functions and responsibilities. The Chair

of the Board leads the review which considers the

performance of the Board as a whole, and of each of the

Board Committees, against their respective charters. The

Chair, on behalf of the Board, is responsible for assessing

the performance and contribution of individual

Directors. The assessment is undertaken annually.

PRINCIPLE 3 – BOARD COMMITTEES

“The Board should use committees where this

will enhance its effectiveness in key areas, while

still retaining board responsibility.”

Board Committees

The Board has two formally constituted committees

– the Audit and Risk Committee and the People and

Performance Committee. Committee membership is

reviewed annually.

Each Committee has a written charter that is

approved by the Board and sets out its mandate.

The charters are reviewed annually with any proposed

changes recommended to the Board for approval.

Each Committee has an agreed annual work

programme that sets out matters to be addressed over

the following twelve month period. The Committees

each review their performance on an annual basis

against the Committee charter and work programme

and report their findings to the Board.

Attendance at Meetings

The table below sets out Director attendance at Board

and Committee meetings during the year ended

31 March 2026.

BOARD

AUDIT AND RISK

COMMITTEE

G Plunket (retired 1 March 2026)77

A McCammon87

Dr B Richardson87

A Johansen7-

Dame A Stewart7-

P Munro (appointed 1 March 2026)--

18
ANNUAL REPORT

Audit and Risk Committee

The Board has overall responsibility for the Company’s

system of internal financial control, risk management,

for liaising with the Company’s external auditors,

and for ensuring the integrity of the Company’s

financial reporting. The Board constantly monitors the

operational and financial aspects of the Company’s

activities and has established procedures and policies

that are designed to provide effective internal

financial control. Annual budgets and business plans

are prepared and agreed by the Board. Monthly

management accounts are prepared by Management

and reviewed by the Board throughout the year to

monitor performance against budget.

The Board has established an Audit and Risk

Committee to assist the Board in discharging its

responsibilities relative to financial reporting, related

regulatory conformance and liaising with the external

auditors. The terms of reference for the Audit and Risk

Committee are set out in its charter which is available

in the Investor Centre.

The Audit and Risk Committee is appointed by the

Board and must comprise three Directors, the majority

of whom are to be independent. The Chair of Audit

and Risk Committee must be an Independent Director

and not the Chair of the Board. The current members

of the Audit and Risk Committee are Barry Richardson

(Chair), Aimee McCammon and Paul Munro. All

members are independent Directors.

The Board considers the recommendations of the

Audit and Risk Committee and advice of external

auditors and other external advisors on the operational

and financial risks that the Company faces. The Board

ensures that recommendations made by the Audit and

Risk Committee, external auditors and other external

advisers are investigated and, where considered

necessary, action is taken to ensure that the Company

has an appropriate internal control environment in

place to manage the key risks identified.

In addition, the Board investigates ways of

enhancing existing risk management strategies,

including appropriate segregation of duties and the

employment and training of suitably qualified and

experienced personnel.

Given the size of the Company, an internal audit

function is not considered necessary.

The Audit and Risk Committee met on 7 occasions

during FY26. The agenda items for each meeting

generally relate to financial governance, external

financial reporting, external audit, internal control

review, risk management, compliance, and insurance.

Meeting Attendance

The CEO and CFO will normally be invited to attend

the meetings.

People and Performance Committee

The Board has established a People and Performance

Committee which has responsibility for, amongst

other things, setting the remuneration policy for the

CEO, CFO, CTO, CRO, Head of Quality and Head of

People, Culture and PMO (the Executive).

The terms of reference for this committee are set out

in its charter which is available in the Investor Centre.

The People and Performance Committee is appointed

by the Board and must comprise three Directors, the

majority of whom are to be independent. The Chair of

the Board may serve on the committee. Members of

the People and Performance Committee are currently,

Aimee McCammon (Chair), Dame Alison Stewart

and Barry Richardson. All committee members are

independent Directors.

Management attends People and Performance

Committee meetings by invitation, as and when

appropriate and necessary.

The Board ensures that the recommendations made

by the People and Performance Committee are

considered and acted on accordingly.

Nomination Committee

Given the size and composition of the Board, the

Directors believe that there are no significant benefits

in delegating matters in relation to Board nominations

and all appointments are managed by the whole

Board.

Disclosure Committee

The Board has established a Disclosure Committee

to oversee the Company’s compliance with

its continuous disclosure requirements under

New Zealand law and the NZX Listing Rules.

The Disclosure Committee comprises the Board

Chair, Chair of the Audit and Risk Committee, Chief

Executive Officer and Chief Financial Officer and

operates under the Company’s Market Disclosure

and Communications Policy (a copy is available in the

Investor Centre).

Committees

The Board has no Committees other than an Audit

and Risk Committee, People and Performance

Committee and Disclosure Committee.

Takeover Protocols

The Board has adopted a set of protocols to be

followed in the event of a takeover offer being made.

In the event of a takeover offer, a committee of

Independent Directors would be formed and would

have responsibility for managing the takeover in

accordance with the Board protocols and applicable

laws, including the New Zealand Takeovers Code.

19
BLIS TECHNOLOGIES LIMITED

PRINCIPLE 4 – REPORTING AND

DISCLOSURE

“The Board should demand integrity in

financial and non-financial reporting, and in the

timeliness and balance of corporate disclosure.”

Shareholder Communications and Market Disclosure

The Board is committed to keeping the financial

products markets informed of material information

relating to the Company and its shares and promoting

investor confidence by ensuring that trading of its

equity securities takes place in an efficient, well-

informed market at all times.

The Company has in place a Market Disclosure and

Communications Policy designed to ensure this

occurs. The policy includes procedures intended to

ensure that:

• The Company complies with its continuous

disclosure obligations; and

• Timely, accurate and complete information is

provided to all shareholders and other market

participants.

The policy also outlines mandatory requirements

and responsibilities in relation to the identification,

reporting, review and disclosure of material

information relevant to the Company.

Accountability for compliance with disclosure

obligations is the responsibility of the CEO and CFO.

The CFO has been designated as the Disclosure

Officer and has overall management responsibility for

ensuring all material information is lodged with NZX.

This policy is available at the Investor Centre.

All non-promotional information intended to be made

public, whether or not it is believed to be material

information, must be reviewed by the Disclosure

Committee (comprising the Chair, Chair of the Audit

and Risk Committee, CEO and CFO) prior to release.

The Disclosure Committee also refers certain decisions

to the Board.

Directors consider at each Board meeting (and

otherwise as and when needed) whether there is any

material information which should be disclosed to

the market.

Governance Policies and Charters

Key corporate governance documents, including

charters and policies, can be found at the Investor

Centre: www.blis.co.nz/investor-centre/charters-policies.

Financial and Non-Financial Reporting

BLIS is committed to ensuring integrity and timeliness

in its financial reporting and in providing information

to the market and shareholders which reflects a

considered view on its present and future prospects.

The Audit and Risk Committee oversees the

quality and integrity of external financial reporting,

including the accuracy, completeness, balance and

timeliness of financial statements. It reviews the

Company’s full and half-year financial statements

and makes recommendations to the Board

concerning accounting policies, areas of judgement,

compliance with accounting standards, NZX and legal

requirements, and the results of the external audit.

All matters required to be addressed and for which

the Audit and Risk Committee has responsibility were

addressed during FY26.

BLIS has published its full and half-year financial

statements prepared in accordance with relevant

financial standards. The full year financial statements

for FY26 are set out on pages 30–57. The CEO and

CFO have confirmed in writing to the Board that

the Company’s external financial reports present

a true and fair view in all material aspects. These

representations are given on the basis that a sound

system of internal controls and risk management is

operating effectively in all material respects in relation

to financial reporting.

In addition to releasing the full and half-year results

BLIS provides an update on financial and non-financial

performance for the first and third quarters. Revenue

and EBITDA for the quarter and year to date, general

commentary on market conditions and an update on

guidance may be given.

The Board does not believe that the Company has

any material exposure to economic, environmental

or social sustainability risks that are not appropriately

managed. The material risks which may impact the

Company’s ability to achieve its strategic objectives

and secure its future financial prospects, are managed

through the strategic planning process.

Work continues on suitable sustainability-reporting

framework. The project involves preparing a series of

financial and non-financial targets for reporting on

regularly. An overview of the Company’s sustainability

programme is set out on pages 6–9.

PRINCIPLE 5 – REMUNERATION

“The remuneration of Directors and Executives

should be transparent, fair and reasonable.”

Remuneration Report

The People and Performance Committee is

responsible for making recommendations to the

Board on remuneration policies and packages for

Directors as well as the Executives.

The Company’s remuneration philosophy is aimed

at attracting, retaining and motivating employees

of the highest quality at all levels of the organisation.

20
ANNUAL REPORT

It is based on practical, guiding principles and a

framework that provides consistency, fairness and

transparency while having regard to the risk appetite

of the Company and alignment to its long-term

strategic goals.

All remuneration packages are reviewed annually in

the context of individual and Company performance,

market movements and expert advice.

Non-executive Directors

The structure of non-executive Director remuneration

is separate and distinct from the remuneration of the

CEO and other executives.

The Board seeks to set aggregate remuneration for

non-executive Directors at a level which provides

the Company with the ability to attract and retain

Directors of the highest calibre, whilst incurring a

cost which is acceptable to shareholders.

No remuneration is payable to Directors unless

it is approved by the Company’s shareholders, or

permitted under the NZX Listing Rules in the event

of an increase in the total number of Directors.

The NZX Listing Rules specify that shareholders can

approve a per Director remuneration amount or an

aggregate Directors’ fee pool. The Board has adopted

a remuneration pool approach, as referred to in NZX

Guidance Note – Governance. Shareholders approved

an aggregate remuneration pool for non-executive

Directors of $309,000 per annum in August 2020.

Within the fee pool available, the Board reviews its

fees annually to ensure the Company’s non-executive

Directors are fairly remunerated for their services,

recognising the level of skill and experience required

to fulfil the role, and to enable the Company to attract

and retain talented non- executive Directors. The

process involves benchmarking against a group of

peer companies.

In addition, the Board reviews the People and

Performance Committee structure and appropriate

level of resourcing required to make an on-going

contribution to long term value creation. Non-

executive Directors have no entitlement to any

performance- based remuneration or participation

in any share-based incentive schemes.

Each non-executive Director is entitled to a fee

for services as a Director of the Company and an

additional fee is also paid to the Chair, and members

of the Board Committees to recognise the additional

time commitment required for that role. All Directors

are entitled to be reimbursed for reasonable costs

associated with carrying out their duties.

For the period 1 April 2025 to 31 March 2026 the

allocation of the fee pool was as follows:

BOARD

AUDIT

AND RISK

COMMITTEE

PEOPLE AND

PERFORMANCE

COMMITTEE

Chair$85,000$10,000$7,000

Member$48,800$7,000$3,000

Fees payable to the non-executive Directors of the

Company for the period 1 April 2025 to 31 March 2026

were as follows:

BOARD

AUDIT

AND RISK

COMMITTEE

PEOPLE

AND PER-

FORMANCE

COMMITTEETOTAL

G Plunket64,4178331,125 $66,375

A McCammon48,8007,0004,833 $60,633

Dr B Richardson48,80010,000250 $59,050

Dr A Stewart65,500-3,792 $69,292

A Johansen48,800--$48,800

P Munro3,883583-$4,466

Remuneration of the CEO and Employees

The Company is committed to providing a

remuneration framework that promotes a high-

performance culture and aligns rewards to the

creation of sustainable value for shareholders. The

underlying principle is to reward employees for

Company and business unit performance against

targets set by reference to appropriate benchmarks

and key performance indicators and to:

• Align their interests with those of shareholders;

and

• Ensure total remuneration is competitive by

market standards.

Total remuneration is made up of fixed remuneration,

a short term incentive (STI) and a long term incentive

(LTI).

Fixed remuneration includes all benefits, allowances

and deductions.

The STI and LTI performance incentives are “at-risk”

and are directly linked to both the performance of the

Company and to each individual’s performance while

promoting the Company’s long-term success.

The total remuneration earned by the Executive is set

out in note 5 to the financial statements.

(i) Fixed Annual Remuneration

Remuneration levels are reviewed annually to ensure

that they are appropriate for the responsibility,

qualifications and experience of the Executives and

are competitive with the market.

21
BLIS TECHNOLOGIES LIMITED

The Executives receive their fixed annual

remuneration in cash and a limited range of

prescribed fringe benefits such as superannuation,

travel contribution and low interest loan. The total

employment cost of any remuneration package,

including fringe benefit tax, is taken into account

in determining an employee’s fixed annual

remuneration.

For the financial year ended 31 March 2026, the CEO

received $505,595 (2025: $383,223) in fixed annual

remuneration.

(ii) Variable Remuneration – STI Scheme

The objective of the STI Scheme is to link the

achievement of the annual financial and operational

targets with the remuneration received by the

Executives charged with meeting those targets. The

total potential remuneration under the STI Scheme

is set with a maximum of 30% for the CEO and 20%

for other Executives of fixed annual remuneration so

as to provide sufficient incentive to the Executive to

achieve the targets such that the cost of the Company

is flexible and in line with the trading outcome for

the year.

Actual STI Scheme payments granted to the CEO and

each nominated Executive depend on the extent to

which specific targets, set at the beginning of each

year, are met. The targets may include a weighted

combination of Company, Departmental, Financial

and Non-Financial.

In determining the amount to be allocated the Board

considers the performance against the targets.

For the financial year ended 31 March 2026 there were

six nominated executives in the STI scheme (31 March

2025: six).

STI Scheme payments relating to the financial year

ended 31 March 2026 are delivered as a taxable cash

bonus and are payable on completion of the annual

audited financial statements. The total accrual for

FY26 for all nominated executives in the STI Scheme is

$359,020. (FY25: $357,000). The actual amount paid for

FY26 was $324,437 (FY25: $168,414).

In addition to the STI Scheme, the Board reserves the

ability to pay ad hoc bonus payments to any employee,

again directly related with the trading outcome.

(iii) Variable Remuneration – LTI Scheme

The objective of the LTI Scheme is to align the

Executive with shareholder interests over the longer

term, and provide a longer term employee retention

benefit.

The Company did not grant performance share rights

(PSRs) to the Executive in the 2026 financial year. The

previous PSR issue occurred on 10 September 2021.

Details of the performance criteria are detailed in

note 5 to the financial statements.

CEO Remuneration

SALARY

TAXABLE

BENEFITS

*

STITOTAL

FY26369,57635,579100,440505,595

FY25348,65434,569-383,223

* Includes the value of benefits including superannuation,

travel and low interest loan.

Total remuneration paid is fixed remuneration and

any STI Scheme payment physically received during

the year.

Performance based payments are paid in the

following year.

The CEO’s STI scheme payment for FY26 comprises

several financial and non-financial performance

measures. Overall, the STI is set at 30% of fixed

remuneration. A breakdown of the STI components

follows:

PERFORMANCE MEASURESPERCENT ACHIEVED

60% based on financial revenue

and profitability targets FY25

98% Achieved

40% based on non-financial

targets FY25

92% Achieved

Employee Remuneration

The number of employees of the Company (including

former employees) who received remuneration and

other benefits in excess of $100,000 in the period

1 April 2025 to 31 March 2026 are shown below:

NUMBER OF EMPLOYEES

REMUNERATION BANDINGFY26FY25

100,001–110,0001-

110,001–120,00011

120,001–130,00033

130,001–140,00013

140,001–150,0001-

150,001–160,000-1

160,001-170,0001-

170,001–180,00011

180,001-190,0001-

250,001–260,000-1

270,001–280,00012

290,000–300,0001-

300,001–310,0001-

380,001–390,000-1

500,000–510,0001-

22
ANNUAL REPORT

PRINCIPLE 6 – RISK MANAGEMENT

“Directors should have a sound understanding

of the material risks faced by the issuer and how

to manage them. The Board should regularly

verify that the issuer has appropriate processes

that identify and manage potential and

material risks.”

Risk Management Framework

BLIS operates in an environment that contains

operational and strategic risks. Risks are actively

managed to ensure BLIS operates a safe workplace

and is able to sustain the achievement of its business

objectives while at the same time accepting an

appropriate level of commercial risk that is consistent

with desired profitability.

The Board is responsible for ensuring that key

business and financial risks are identified, and that

appropriate controls and procedures are in place to

effectively manage those risks.

The Audit and Risk Committee has overall

responsibility for ensuring that Company’s risk

management framework is appropriate and that risks

are identified, considered and managed.

A Risk Management Policy provides guidance on the

Board’s approach to risk management. The objectives

of the Risk Management Policy are:

• To allow BLIS to pursue opportunities that involve

risk in an informed manner, so as to meet the

expectations of stakeholders;

• To enable full and due consideration to be given

to the balance of risk and reward in pursuing the

achievement of BLIS’ business objectives;

• To apply risk management practices to enhance

strategic, tactical and operational decision making;

and

• To ensure that BLIS operates in a sustainable manner.

The policy is available at the Investor Centre.

Insurance

In managing the Company’s business risks, the Board

approves and monitors policy and procedures in areas

such as treasury management, financial performance,

taxation and delegated authorities. BLIS has insurance

policies in place covering most areas where risk to its

assets and business can be insured at a reasonable cost.

Product Quality and Safety

Ensuring the safety and quality of our products is a key

priority. We establish processes that effectively manage

risk and drive continuous improvement in product

quality throughout the product production cycle.

We have introduced proactive quality control

mechanisms within our manufacturing operations.

Through the use of data collection and statistical

analysis, we are improving the control of our

manufacturing processes, with the aim of being able to

intervene and correct a process prior to product quality

being compromised. This approach is providing further

assurance that our customers receive high quality

products that are safe and effective.

Health, Safety and Wellbeing

Overall responsibility for health and safety, specifically for

setting of high-level strategy and policy, resides with the

Board which is committed to continuous improvement

and progressively higher standards of work health and

safety for the benefit of all employees and others who

work in, use or visit the Company’s workplace.

The principles of the health and safety framework are to:

• Understand and comply with all applicable health

and safety legislation, codes of practice, safe

operating procedures and regulations;

• Establish objectives and management systems

consistent with health and safety best practice;

• Use systems and processes that are fit-for-

purpose, reflecting size and nature of the work

environment(s) the activities undertaken there,

and the potential risk posed to workers and others

who use or visit those environments; and

• Ensure all officers and workers engage in creating

a positive workplace safety culture to fully support

health, safety and wellbeing initiatives.

The Executive are responsible for implementation of

the health and safety framework and will:

• Determine and implement business and action

plans to give effect to Board strategy;

• Provide, support and maintain health and

safety management systems ensuring safety

requirements are met at all times;

• Acquire and maintain good understanding of

health, safety and wellbeing matters;

• Be responsible and accountable for health and

safety compliance;

• Promote and role-model high workplace health,

safety and wellbeing standards - identifying and

managing all risks and hazards; and

• Ensure business objectives are complimentary to

health, safety and wellbeing objectives.

Management reports to the Board include the following

lead and lag indicators – H&S Committee minutes

including good news stories, achievements and

training activities, outcomes of regular H&S site checks,

hazard assessments/ commissioning of equipment (if/

when applicable), bi monthly reporting of: incidents &

accidents (including near miss incidents) safe days on

site, days to close actions following an investigation (to

ensure efficient responses), attendance at H&S training

& committee meetings. Wellbeing metrics are also

reported through the employee engagement survey.

No lost time injuries, injuries resulting in workers

being unable to perform normal duties at next shift,

have occurred over the last seven years.

23
BLIS TECHNOLOGIES LIMITED

Material Business Risks Mitigation

After completing the risk management processes outlined above, the following key business and financial risks

have been identified.

AREAPRINCIPAL RISKSTRATEGIES TO MITIGATE

Product quality

and customer

safety

Product liability and risks

associated with selling

health supplements and

conducting clinical trials.

Our compliance and regulatory systems monitor our compliance with

applicable laws and regulations.

Our production facility operates under a Food Control Plan and is

subject to audit by the FDA.

Comprehensive product, contamination and clinical trial insurance

cover is maintained. We work with our suppliers and contract

manufacturers to actively monitor the quality of their supplied materials.

Market accessLoss of regulatory approval

to market and sell BLIS

products in certain countries.

BLIS has robust regulatory affairs processes as well as a quality

management system that ensures compliance with applicable

regulatory requirements. This includes engaging regulatory experts

for advice covering different geographical areas to ensure that the

Company has the right expertise for market and customer needs.

Health

and safety


Failure to manage the health,

safety and wellbeing of the

Company’s people in the

workplace leads to work

related injuries.

The Company contracts an independent accredited Workplace Health

and Safety expert to support internal practices and processes. This

includes an annual review. Ongoing work is performed to engage

employees in the development of good working practices and develop

risk management plans to improve safety.

Health, safety and wellbeing metrics are reported regularly to the Board.

Intellectual

Property

Intellectual property rights

held by the Company do not

provide adequate protection

against infringement and

competition.

Our patent portfolio is complemented by trademarks, trade secrets

and specialist know how.

Extensive “freedom to operate” searches are undertaken before we

make our IP applications to ensure that they do not infringe any other

IP and are protectable. Competitor IP filings and registration are actively

monitored.

BLIS engages IP specialists to assist in the management, monitoring

and enforcement of our intellectual property rights.

Business

continuity

Loss of continuity and

quality of supply due to an

interruption in production.

We actively work to maintain appropriate inventory levels of raw

material and finished products to minimise the impacts of any

interruption of supply.

Technology and know-how for future production of both BLIS K12™

and BLIS M18™ is being transferred to an offshore fermentation

supplier to provide future alternative ingredient supply options in the

event of a failure at our New Zealand based supplier.

Cyber security

and data

protection

Cyber attack attempts to

breach the IT environment

that limit its availability or

causes a data breach could

disrupt operations.

A cyber security roadmap is in place that focuses on improving controls

and mitigations in a number of areas of cyber security. Specialized

third parties to assist with monitoring, classification and restriction

of access to sensitive information, conducting cyber security audits,

implementing more sophisticated cyber tracking and monitoring tools.

On-going activity to improve cyber awareness to ensure that employees

are a key part of cyber defence.

Competitor

activity

Increasing demand for

probiotics may see greater

pricing competition from

established and new

competitors. Competition

may also come from other

products with similar

health benefits.

The Company’s market position is based on a reputation for quality and

scientific support for our unique strains. Innovation and development

complement this market position.

We are focused on building a strong and loyal customer base with

recurrent purchasing through an excellent customer experience.

Key individuals

and employees

The Company is unable

to retain its key staff, thus

losing significant knowledge

and expertise, and is unable

to hire employees with the

required skills.

BLIS attaches great importance on wellbeing for all employees.

By implementing a healthy, inclusive, and stimulating corporate

culture, BLIS protects its brand as an employer.

BLIS regularly conducts employee surveys where improvement proposals

in the workplace are addressed. Succession planning and personal

development plans are completed and monitored on a regular basis.

24
ANNUAL REPORT

PRINCIPLE 7 – AUDITORS

“The Board should ensure the quality and

independence of the external audit process.”

External Auditor

Oversight of the Company’s external audit

arrangements to safeguard the integrity of financial

reporting is the responsibility of the Audit and Risk

Committee.

BLIS maintains an Auditor Independence Policy

to ensure that audit independence is maintained,

both in fact and appearance. The quality of the audit

opinion is considered to be paramount. Accordingly,

any compromises to auditor objectivity and

independence that are considered to exist require

appropriate safeguards to eliminate or reduce the

risk of compromise to an acceptable level.

BLIS has adopted the following requirements in

relation to auditor independence:

• the BLIS auditor is required to comply with relevant

independence requirements promulgated by the

Financial Markets Authority and other governing

bodies;

• the Audit and Risk Committee must approve the

appointment of the auditor to provide any non-

audit services to the Company;

• the auditor is required to report to the Audit and

Risk Committee annually on matters pertaining to

their independence; and

• the external auditor attends the Company’s annual

meeting each year to answer questions from

shareholders in relation to the audit.

Internal Audit

The Company does not have a formal internal audit

function, however it does have internal processes and

controls that are considered to be appropriate for the

size and complexity of the organisation. The Audit

and Risk Committee carefully considers the auditor’s

management report which lists its key findings and

recommendations about significant matters arising

from the audit.

PRINCIPLE 8 – SHAREHOLDER

RELATIONS

“The Board should respect the rights of

shareholders and foster relationships with

shareholders that encourage them to engage

with the issuer.”

Shareholder Rights and Relations

The Company is committed to regularly

communicating with shareholders and other

stakeholders in a timely, accurate and clear manner

with respect to both procedural matters and major

issues affecting the Company.

To achieve this, the Company communicates through

a range of forums and publications. Annual reports,

NZX releases, governance policies and charters, and

a variety of corporate information is available at the

Investor Centre.

Each shareholder is entitled to receive a hard copy of

each annual report on request.

Documents relating to Annual Shareholders’ Meetings

are available at the Investor Centre.

Annual Shareholders’ Meetings to date have been

held at a venue in Dunedin, reflecting the head

office location for the Company, as well as being live

streamed to shareholders joining online.

The speeches and slides are lodged with NZX at

the commencement of the meeting. Shareholders

may raise matters for discussion at the Annual

Shareholders’ Meeting either in person or by emailing

the Company with a question to be asked.

Electronic Communications

Shareholders have the option of receiving their

communications electronically. Contact details for

the Company’s head office are available on the BLIS

website.

Major Decisions

The Directors’ commitment to timely and balanced

disclosure is set out in its Market Disclosure and

Communications Policy. The commitments include

advising shareholders on any major decisions. Where

voting on a matter is required, the Board encourages

investors to attend the meeting or to send in a proxy

vote. Online voting is made available for Annual

Shareholders’ Meetings.

Equity Issues

In the event of a capital raising, the Board will carefully

consider and, where practical, will favour an offer of

shares to existing shareholders on a pro-rata basis and

on no less favourable terms before offering shares to

other investors.

Dividend Policy

Under the current strategy of full reinvestment into

growth and pipeline development, no dividend has

been declared.

Notice of Meeting

The Notice of Meeting will be lodged with NZX at least

20 working days prior to the Annual Shareholders’

Meeting and will be available in the Investor Centre.

25
BLIS TECHNOLOGIES LIMITED

DIRECTORS’

INTERESTS

DIRECTORS’ SHAREHOLDINGS

The following table sets out, for the purposes of the disclosures required under Listing Rule 3.7.1 (d) of the NZX

Listing Rules, the relevant interests of Directors and associated persons of the Directors in equity securities of the

Company as at 31 March 2026:

NAME OF DIRECTORNUMBER OF EQUITY SECURITIES IN WHICH A RELEVANT INTEREST IS HELD BY A DIRECTOR

A McCammon--

Dr B RichardsonOrdinary shares17,903,625(a)

Dame A StewartOrdinary shares350,000(b)

A JohansenNon-beneficial interest in ordinary shares166,148,034(c)

P Munro--

Note that particular shareholdings can appear under more than one Director.

(a) The number of equity securities in which Dr B Richardson holds a relevant interest includes 17,903,625

ordinary shares held by Dr B Richardson and Mrs JV Richardson.

(b) The number of equity securities in which Dame A Stewart holds a relevant interest includes 350,000 ordinary

shares held by Custodial Services Limited.

(c) The non-beneficially held shares of A Johansen are in her capacity as CEO of Probi AB, a substantial product

holder of the Company.

DIRECTOR’S SHARE DEALINGS

No Directors (or associated entities in which the Directors have relevant interests) acquired or disposed of equity

securities in the Company or its subsidiary, BLIS Functional Foods Limited (together the ‘Group’) during the year

ended 31 March 2026 as entered in the interests register of the Company.

26
ANNUAL REPORT

DISCLOSURES OF INTEREST BY DIRECTORS

NAME OF DIRECTORORGANISATIONACTIVE INTERESTS

A McCammonPic’s Peanut Butter (Picot Productions Limited)Chief Executive/Shareholder/Director

Scarborough Wright Trustee LimitedDirector

New Zealand Film CommissionNon-Executive Director

Dr B RichardsonCertusBio LimitedDirector/Shareholder

Zircon Services LimitedDirector/Shareholder

Otago Classic Spares LimitedDirector/Shareholder

Dame A StewartArable Food Industry CouncilExecutive Committee Member

MBIE Tissue Culture PartnershipChair Governance Group

NZ Environmental Protection AuthorityDirector

Vegetable Research & InnovationGovernance Group Member

Cellora LimitedChair

A JohansenProbi ABChief Executive

International Probiotics AssociationDirector

P MunroElectricity Ashburton LimitedDirector

McKenzie Balfour & Associates LimitedDirector

Lynn River Holdings LimitedDirector

Orion New Zealand LimitedDirector

Cambridge Partners LimitedDirector

Southern Eye Specialists LimitedDirector

Tait International LimitedDirector

New Zealand King Salmon Investments Limited

& wholly owned subsidiaries

Director

API Council (Payments NZ Limited)Independent Member

Scales Corporation LimitedDirector

USE OF COMPANY INFORMATION

There were no notices from Directors regarding the use of Company information.

INDEMNITIES AND INSURANCE

Pursuant to s162 of the Companies Act 1993 and the Company’s Constitution, the Company has entered into

deeds of access, insurance and indemnity, with the Directors of the Group to indemnify them to the maximum

extent permitted by law, against all liabilities which they may incur in the performance of their duties as

Directors of any Company within the Group. Insurance cover extends to Directors and officers for the expenses of

defending legal proceedings and the cost of damages incurred. Specifically excluded are proven criminal liability

and fines and penalties other than those pecuniary penalties which are legally insurable. In accordance with

commercial practice, the insurance contract prohibits further disclosure of the terms of the policy. All Directors

who voted in favour of authorising the insurance certified that in their opinion, the cost of the insurance is fair to

the Company.

DONATIONS

There were $250 donations made by the Company during the year ended 31 March 2026 (2025: Nil).

27
BLIS TECHNOLOGIES LIMITED

DIRECTORS’

RESPONSIBILITY

STATEMENT

The Directors of BLIS Technologies Limited are pleased to present

to shareholders the financial statements for the Group for the year

ended 31 March 2026.

The Directors are responsible for presenting financial

statements in accordance with New Zealand law

and generally accepted accounting practice, which

fairly presents the financial position of the Group as

at 31 March 2026 and the results of its operations and

cash flows for the year ended on that date.

The Directors consider the financial statements of the

Group have been prepared using accounting policies

which have been consistently applied and supported

by reasonable judgements and estimates and that all

relevant financial reporting and accounting standards

have been followed.

The Directors believe that proper accounting records

have been kept which enable with reasonable

accuracy, the determination of the financial position

of the Group and facilitate compliance of the financial

statements with the Financial Reporting Act 2013 and

the Financial Markets Conduct Act 2013.

The Directors consider that they have taken adequate

steps to safeguard the assets of the Group, and to

prevent and detect fraud and other irregularities.

Internal control procedures are also considered to be

sufficient to provide a reasonable assurance as to the

integrity and reliability of the financial statements.

The Financial Statements are signed on behalf of the Board by:

Alison Stewart

Chair

20 May 2026

Barry Richardson

Director

20 May 2026

28
ANNUAL REPORT

TREND

STATEMENT

FY19FY20FY21FY22FY23FY24FY25FY26

Revenue ($m) 8.2 10.6 10.6 8.9 10.2 11.5 12.6 14.7

Revenue growth (%)55%29%0%(16%)15%13%10%16%

EBITDA ($m)

1

0.9 2.1 1.0 (2.1)(0.6) 0.8 1.0 0.9

EBITDA margin (%)11%20%9%(24%)(6%)7%8%6%

Net profit (loss) after

tax (NPAT) ($m) 0.4 1.6 0.6 (2.7)(1.4) 0.6 0.8 0.7

Cash and

investments ($m) 0.9 3.2 2.1 8.5 8.3 8.5 9.7 8.5

Shareholders equity

($m) 3.4 5.1 5.7 12.1 10.8 11.5 12.3 13.0

Total assets ($m) 5.2 7.1 7.8 14.1 12.8 13.0 14.3 15.0

Current liabilities

($m) 1.7 1.6 1.8 1.5 1.6 1.2 1.6 1.7

NTA ($m)

2

2.9 4.3 3.5 10.0 9.4 10.0 10.6 11.3

Cash generated

from operations ($m)(0.6) 3.2 0.6 (2.3) 0.1 1.1 1.8 (0.6)

Number of shares

on issue (000’s)


1,107,654


1,107,654


1,107,654


1,273,802


1,273,802


1,279,302


1,279,302


1,279,302

Cash conversion

ratio

3

(63%)151%60%112%(17%)132%178%(64%)

ROE (%)

4

11%32%10%(22%)(13%)6%7%5%

ROA (%)

5

9%26%8%(25%)(13%)2%3%3%

1 EBITDA, calculated as Earnings before interest, tax, depreciation, amortisation and impairment

2 Net Tangible Assets, calculated as Net Assets less right of use assets and finite life intangible assets

3 Calculated as cash generated from operations divided by EBITDA

4 Return on Equity, calculated as net profit after tax divided by closing shareholders equity

5 Return on Assets, calculated as net profit after tax divided by total assets

29
BLIS TECHNOLOGIES LIMITED

FINANCIAL

STATEMENTS

2026

30
ANNUAL REPORT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2026

NOTES

2026

$’000

2025

$’000

REVENUES

Revenue2 (a)14,66812,644

Other income2 (b)308450

Total revenue and other income14,97613,094

EXPENSES

Distribution expenses294294

Marketing expenses1,6351,535

Occupancy expenses183137

Employee benefits4,1314,107

Raw materials and consumables4,1342,556

Operating expenses3,8073,548

Finance expenses3826

Total expenses2 (c)14,22212,203

SURPLUS BEFORE TAX754891

Income tax expense36253

SURPLUS FOR THE PERIOD692838

Other comprehensive income--

TOTAL COMPREHENSIVE INCOME692838

Earnings per share:

Basic (cents per ordinary share)150.050.07

Diluted (cents per ordinary share)150.050.07

The above consolidated statements should be read in conjunction with the accompanying notes on pages 35 to 57.

31
BLIS TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2026

NOTES

SHARE

CAPITAL

$’000

RETAINED

EARNINGS/

(DEFICIT)

$’000

SHARE BASED

PAYMENT

EQUITY

RESERVE

$’000

TOTAL

ATTRIBUTABLE

TO GROUP

$’000

Opening equity – 1 April 202446,649(35,241)8011,488

Surplus for the year-838-838

Other comprehensive income----

Total comprehensive income-838-838

Equity contributions and distributions

CEO share option equity reserve16,17----

Employee performance rights plan reserve16--(4)(4)

--(4)(4)

CLOSING EQUITY – 31 MARCH 202546,649(34,403)7612,322

Opening equity – 1 April 202546,649(34,403)7612,322

Surplus for the year-692-692

Other comprehensive income----

Total comprehensive income-692-692

Equity contributions and distributions

CEO share option equity reserve16,1740-(13)27

Employee performance rights plan reserve16----

40-(13)27

CLOSING EQUITY – 31 MARCH 202646,689(33,711)6313,041

The above consolidated statements should be read in conjunction with the accompanying notes on pages 35 to 57.

32
ANNUAL REPORT

CONSOLIDATED BALANCE SHEET

As at 31 March 2026

NOTES

2026

$’000

2025

$’000

ASSETS

CURRENT ASSETS

Cash and cash equivalents 64,0054,206

Short term deposits64,5005,450

Trade and other receivables72,0511,066

Prepayments477406

Inventory81,590728

NZX Bond6-75

Income tax receivable31678

Total current assets12,63912,009

NON CURRENT ASSETS

NZX Bond675-

Property, plant and equipment9505513

Finite life intangible assets 101,3501,263

Right-of-use assets11399511

Deferred tax asset--

Total non current assets2,3292,287

TOTAL ASSETS14,96814,296

Continued overleaf / >>

The above consolidated statements should be read in conjunction with the accompanying notes on pages 35 to 57.

33
BLIS TECHNOLOGIES LIMITED

CONSOLIDATED BALANCE SHEET CONTINUED

As at 31 March 2026

NOTES

2026

$’000

2025

$’000

LIABILITIES

LESS CURRENT LIABILITIES

Trade and other payables 121,4791,378

Current borrowings 13--

Lease liabilities 11183168

Foreign exchange contracts 22 (e)97

Total current liabilities1,6711,553

NON CURRENT LIABILITIES

Lease liabilities 11256421

Total non current liabilities256421

TOTAL LIABILITIES1,9271,974

NET ASSETS13,04112,322

OWNERS EQUITY

Share capital 1546,68946,649

Retained earnings / (deficits)(33,711)(34,403)

Share based payment equity reserves 166376

TOTAL EQUITY13,04112,322

These financial statements have been authorised for issue on 20 May 2026.


Alison Stewart Barry Richardson

Chair Director

The above consolidated statements should be read in conjunction with the accompanying notes on pages 35 to 57.

34
ANNUAL REPORT

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 March 2026

NOTES

2026

$’000

2025

$’000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash was provided from / (applied to):

Receipts from customers13,74512,911

Interest received336334

Payments to suppliers and employees(14,642)(11,425)

Finance costs(34)(26)

Net cash inflow (outflow) from operating activities 21(595)1,794

CASH FLOWS FROM INVESTING ACTIVITIES

Cash was provided from / (applied to):

Proceeds from short term deposits950-

Purchase of short term deposits-(1,200)

Purchase of intangible assets 10(374)(346)

Purchase of property, plant and equipment 9(125)(137)

Net cash inflow (outflow) from investing activities451(1,683)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash was provided from / (applied to):

Repayment of lease liabilities 11(175)(217)

Repayment of CEO loan1728

Net cash outflow from financing activities(147)(217)

Net decrease in cash held(291)(106)

Add cash and cash equivalents at start of period4,2064,272

Foreign exchange differences9040

BALANCE AT END OF PERIOD4,0054,206

COMPRISED OF:

Cash and cash equivalents64,0054,206

4,0054,206

The above consolidated statements should be read in conjunction with the accompanying notes on pages 35 to 57.

35
BLIS TECHNOLOGIES LIMITED

NOTES TO AND FORMING

PART OF THE CONSOLIDATED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

1. BASIS OF REPORTING

Reporting Entity

The consolidated financial statements presented are

those of BLIS Technologies Limited (the “Company”)

and its subsidiary BLIS Functional Foods Limited

(the “Group”).

The Group’s principal activity is developing healthcare

products based on strains of bacteria that produce

bacteriocin activity for sale in New Zealand and

overseas.

Statutory Base

The Company is a profit-oriented entity, domiciled

in New Zealand, registered under the Companies

Act 1993 and listed on the New Zealand Stock

Exchange. The Company is an FMC reporting entity

under the Financial Markets Conduct Act 2013. The

financial statements have been prepared in line with

the requirements of these Acts and the Financial

Reporting Act 2013.

Basis of Preparation

The financial statements have been prepared in

accordance with New Zealand Generally Accepted

Accounting Practice (“NZ GAAP”). They comply with

the New Zealand Equivalents to IFRS Accounting

Standards (“NZ IFRS”) and other applicable financial

reporting standards as appropriate for profit-oriented

entities. The financial statements comply with IFRS

Accounting Standards (“IFRS”).

The Financial Statements were authorised for issue by

the Board of Directors on 20 May 2026.

Basis of Measurement

The financial statements have been prepared on the

historical cost basis, except for the derivative financial

instruments that are measured at fair value at the end

of each reporting period as explained in the relevant

accounting policies.

Historical cost is based on the fair values of the

consideration given in exchange for assets.

Accounting policies are selected and applied in a

manner which ensures that the resulting financial

information satisfies the concepts of relevance and

reliability, thereby ensuring that the substance of the

underlying transactions or other events is reported.

Unless otherwise stated the accounting policies

set out below have been applied in preparing the

consolidated financial statements for the year ended

31 March 2026 and 31 March 2025.

The financial statements are presented in thousands

of New Zealand dollars. The New Zealand dollar is the

Group’s functional currency.

Critical Judgements, Estimates and Assumptions

In the application of NZ IFRS, the Directors are

required to make judgements, estimates and

assumptions about carrying values of assets and

liabilities that are not readily apparent from other

sources. The estimates and associated assumptions

are based on historical experience and various other

factors that are believed to be reasonable under the

circumstance, the results of which form the basis of

making the judgements. Actual results may differ

from these estimates.

The estimates and underlying assumptions are

reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the

estimate is revised if the revision affects only that

period or in the period of the revision and future

periods if the revision affects both current and

future periods.

36
ANNUAL REPORT

Judgements made by the Directors in the application

of NZ IFRS that have significant effects on the financial

statements and estimates with a significant risk of

material adjustments in the next year include:

• Tax Losses – The recognition of a deferred tax asset

arising from prior year tax losses and temporary

differences is dependent on generating future

taxable profits. No deferred tax asset has been

recognised in relation to the tax losses as at

31 March 2026 but this position will be reviewed

in future periods as the Group demonstrates a

consistent track record of profitable results. The

Group’s ability to utilise tax losses is explained in

note 3.

Material Accounting Policies

The principal accounting policies applied in the

preparation and presentation of the financial

statements are set out below or in the notes with the

item to which they relate, where policies are specific

to certain transactions or balances.

These policies have been consistently applied unless

otherwise stated.

Basis of Consolidation

The Group financial statements incorporate the

financial statements of the Company and all entities

controlled by the Company (its subsidiaries) that

comprise the Group, being BLIS Technologies Limited

(the parent entity) and its subsidiary BLIS Functional

Foods Limited. Control is obtained when the Company

has power over the investee, is exposed to or has

rights to variable returns from its investment, and has

the ability to use its power to affect returns. Consistent

accounting policies are employed in the preparation

and presentation of the group financial statements.

The results of subsidiaries acquired or disposed of

during the year are included in the Consolidated

Statement of Comprehensive Income from the

effective date of acquisition or up to the effective date

of disposal, as appropriate.

Where necessary, adjustments are made to the

financial statements of subsidiaries to bring their

accounting policies into line with those used by

the Group.

All intra-group transactions, balances, income and

expenses are eliminated in full on consolidation.

Foreign Exchange

In the course of normal trading activities, the

Group undertakes transactions denominated in

foreign currencies, hence exposures to exchange

rate fluctuations arise. Transactions in currencies

other than the New Zealand dollar are recognised

at the rate of exchange prevailing on the dates of

the transactions. Trade and other receivables, trade

and other payables, the Canadian Dollar (CAD)

denominated bank account, the Euro denominated

bank account and the United States Dollar (USD)

denominated bank account balances are translated

at the exchange rates prevailing at the end of

each reporting period as sourced from the Bank of

New Zealand. Exchange differences are recognised in

the statement of comprehensive income in the period

in which they occur.

Goods and Services Tax (GST)

All items in the balance sheet are stated exclusive of

GST, with the exception of receivables and payables,

which include GST. All items in the statement of

comprehensive income are stated exclusive of GST.

The GST component of cash flows arising from

investing and financing activities which is recoverable

from, or payable to, the taxation authority is classified

as operating cash flows.

New and revised NZ IFRS Accounting Standards

and Interpretations Issued but not yet adopted

All mandatory new and revised standards and

interpretations have been adopted in the current year.

At the date of authorisation of these financial

statements, certain new standards and interpretations

to existing standards have been published but are

not yet effective. The Group expects to adopt these

when they become mandatory. Of these, the following

standard has been assessed as relevant to the Group:

• NZ IFRS 18 (Presentation and Disclosure

in Financial Statements) – introduces new

requirements including a change in the structure

of the profit and loss, management defined

performance measures being included in a

note to the financial statements, and enhanced

aggregation/disaggregation clarification. The

new standard amends the classification in the

statement of cash flows.

The Group has not assessed the impact of this

standard but it is expected that it will impact the

presentation of the financial statements.

No others are expected to materially impact the

Group’s financial statements.

37
BLIS TECHNOLOGIES LIMITED

2. SURPLUS FROM OPERATIONS

Policy

Revenue is recognised from the following major

sources:

• Sale of goods;

• License fee and royalties and

• Interest income and grants.

Revenue is measured at the fair value of the

consideration the Group expects to be entitled to in

accordance with customer contracts and excludes

amounts collected on behalf of third parties.

Sale of Goods

The Group sells ingredients and finished goods to

manufacturer, wholesale and online customers. In

addition to product sales, the Group provides sales

training and support to its customers. The Group has

determined that the sales training and support is not

a distinct performance obligation.

In addition to selling products to customers, the

Group also arranges delivery of the products to its

customers. The Group is an agent in the performance

of the delivery service and the allocated revenue is

recognised net of costs.

Revenue from the sale of goods is recognised when

the Group has transferred control of the goods to

the customer, which is usually when the goods

are delivered. For manufacturers and wholesale

customers, control passes according to individual

contract terms. One of the Group’s major customers

has entered into a consignment arrangement. Sales

to this customer, are not recognised until the sale is

made to the end customer.

Rebates

The Group provides rebates to certain customers

based on the quantity of products purchased during

the period. All sales to these customers are net of

returns, allowances, trade discounts and volume

rebates. To estimate the variable consideration for the

expected rebates, the Group applies the expected

value method and a refund liability is recognised for

the expected rebates.

License fee and royalties

Licensing fee and royalty revenue is recognised

as the underlying sales and usage occurs and the

performance obligation to the license fee and royalty

has been satisfied.

Contract liabilities

Revenue is recognised when all associated obligations

have been met. Where consideration has been

received but the associated obligations have not been

met, for instance goods have not yet been provided, it

will be recognised as a contract liability on the balance

sheet.

Grant Income

Grant income is recognised when the Group has

met all of the requirements established by the grant.

Grant income that is receivable as compensation

for expenses or losses already incurred or for the

purpose of giving immediate financial support to the

entity with no future required costs are recognised as

revenue of the period in which it becomes receivable.

Interest Income

Interest income is accrued on a time basis, by

reference to the principal outstanding and the

effective interest rate applicable, which is the rate

that exactly discounts estimated future cash receipts

through the expected life of the financial asset to that

asset’s net carrying amount.

(a) Revenue

2026

$’000

2025

$’000

Revenue consists of the following items:

Point in time recognition:

Sale of goods – domestic sales

Finished goods2,2242,172

Ingredients-73

License fee and royalties1717

Sale of goods – export sales

Finished goods3,8913,184

Ingredients7,2896,132

License fee and royalties1,2471,066

14,66812,644

38
ANNUAL REPORT

The above revenue for the 12 months ended 31 March 2025 has been reclassified to align with current period

customer location. The Sale of Goods – domestic sales finished goods revenue is $2,172k (previously $1,942k) and

Sale of Goods – export sales finished goods revenue is $3,184k (previously $3,414k), reflecting a reclassification

of $230k.

(b) Other Income

2026

$’000

2025

$’000

Grant income4122

Interest income263428

Other income4-

308450

(c) Expenses

2026

$’000

2025

$’000

This includes the following specific expenses:

Amortisation of finite life intangible assets (note 10)197181

Depreciation of property, plant and equipment (note 9)133125

Depreciation of right of use assets (note 11)133263

Director’s fees309307

Employee performance rights (note 16)-(4)

CEO share option expense (note 16, 17)--

(Gain)/loss on fair value of derivatives2(22)

Short term lease payments163

Other operating expenses2,7232,269

Post-employment benefits108110

Provision for inventory write-off (note 8)15123

Research and development expense311425

FX loss4527

Loss on disposal of intangible assets9026

3. INCOME TAXES

Policy

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the

taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or

substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability

(or asset) to the extent it is unpaid (or refundable).

Deferred tax

Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary

differences arising from differences between the carrying amount of assets and liabilities in the financial

statements and the corresponding tax base of those items.

In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets

are recognised to the extent that it is probable that sufficient taxable amounts will be available against which

deductible temporary differences or unused tax losses and tax offsets can be utilised.

39
BLIS TECHNOLOGIES LIMITED

However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them

arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which

affects neither taxable income nor accounting profit, and initial recognition of an asset or liability that at the time

of the transaction does not give rise to equal taxable and deductible temporary differences.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the

liability is settled, or the asset is realised based on tax rates that have been enacted or substantively enacted at

reporting date.

Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items

charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

(a) Income tax recognised in profit or loss

The prima facie income tax expense on pre-tax accounting profit reconciles to the income tax expense in the

financial statements as follows:

2026

$’000

2025

$’000

Net surplus before tax754891

Income tax expense calculated at 28%211250

Non-deductible items7936

Temporary differences excluding tax losses not recognised2331

Tax losses utilised(313)(317)

Foreign withholding tax forfeited6253

Income tax expense6253

(b) Income tax recognised directly in equity

There was no current or deferred tax charged/ (credited) directly to equity during the period.

(c) Deferred tax balances

2026

OPENING

BALANCE

$’000

CHARGED

TO INCOME

$’000

CLOSING

BALANCE

$’000

Gross deferred tax assets

Employee entitlements 159 12 171

Provisions, prepayments and inventory 136 40 175

Leases 22 (11) 11

Property, plant and equipment 75 (13) 62

Tax losses 4,379 314 4,065

Total deferred tax assets 4,771 342 4,485

Gross deferred tax liabilities

Intangible assets(124) (50) (175)

Total deferred tax liabilities(124)(50) (175)

Net deferred tax asset before recognition adjustment 4,647 291 4,310

Deferred tax asset not recognised (4,647) (291) (4,310)

Net recognised deferred tax - - -

The Group has an unrecognised deferred tax asset of $4,309,975 (2025: $4,646,667). The unrecognised deferred

tax asset arises in relation to temporary differences of $244,944 (2025: $267,751) and gross tax losses of $14,517,968

(2025: $15,638,985) with a tax effect of $4,065,031 (2025: $4,378,916). The tax losses may be able to be carried forward

and offset against future taxable income (subject to meeting the requirements of the Income Tax Act 2007).

40
ANNUAL REPORT

2025

OPENING

BALANCE

$’000

CHARGED

TO INCOME

$’000

CLOSING

BALANCE

$’000

Gross deferred tax assets

Employee entitlements 117 42 159

Provisions, prepayments and inventory 137 (2) 136

Leases 9 13 22

Property, plant and equipment 97 (22) 75

Tax losses 4,698 319 4,379

Total deferred tax assets 5,058 351 4,771

Gross deferred tax liabilities

Intangible assets(69) (56) (124)

Total deferred tax liabilities(69) (56) (124)

Net deferred tax asset before recognition adjustment 4,989 296 4,647

Deferred tax asset not recognised (4,989) (296) (4,647)

Net recognised deferred tax - - -

(d) Imputation credit account

2026

$’000

2025

$’000

Balance at beginning of year78-

RWT paid1678

RWT refunded(78)-

Balance at end of year1678

4. REMUNERATION OF AUDITORS

2026

$’000

2025

$’000

Audit and review of the financial statements

Audit of the annual financial statements121117

The auditor of BLIS Technologies Limited is Deloitte Limited.

5. KEY MANAGEMENT PERSONNEL COMPENSATION

2026

$’000

2025

$’000

Short term employee benefits1,6161,592

Long term employee benefits4742

Share based payments-3

1,6631,637

41
BLIS TECHNOLOGIES LIMITED

Equity settled share based payments

The fair value (at grant date) of performance share rights plan (PSRs) granted to the CEO and certain other

senior management, is recognised in profit or loss within the Consolidated Statement of Comprehensive Income

over the vesting period with a corresponding increase in the share based payment reserve. The estimate of the

number of PSRs for which non market based conditions are expected to be satisfied is revised at each reporting

date, with any cumulative catch-up adjustment recognised in profit or loss. When any PSRs are exercised, the

amount in the share based equity payment reserve relating to those instruments is transferred to share capital

as consideration of one option per share. When any PSRs are cancelled, the amount in the share based payment

reserve relating to those PSRs is also transferred to retained earnings.

Employee share based compensation

From 21 December 2020, the Company granted PSRs to certain members of its senior leadership and senior

management teams under the 2020 and 2021 Performance Share Rights Plan. There were no Employee share

based schemes prior to December 2020.

i) Performance share rights plan

Under the 2020 and 2021 Performance Share Rights Plan, one share right gives the employee the potential

to exercise a share right for an ordinary share in the Company. Performance share rights will only become

exercisable if the Company meets certain market-based and performance based requirements set by the Board

in respect of its share price and net profit, and the continuous employment of the relevant holder.

The plan is a three year scheme, with the potential rights to fully vest on the third anniversary of the grant date if

the following criteria are met:

• 50% of the Performance rights shall vest on the Vesting Date subject to the average market price of the shares

of the Company from the Grant Date to the Vesting Date increase by 15% per annum.

• 50% of the Performance rights shall vest on the Vesting date subject to the Company achieving 15%

compound annual growth rate (CAGR) for net profit from 31 March of the most recent balance date at grant

date to the Vesting Date; and

• The holder of the Performance Rights is continuously employed by the Company during the period from the

Grant Date to the Vesting Date.

Measurement

The fair value of the PSRs was determined using the Black Scholes option pricing model to value the 50%

performance rights which vest on achieving 15% CAGR for net profit being non market conditions and a Monte

Carlo simulation valuation methodology for the 50% performance rights with market based vesting conditions.

The compensation of the key management personnel of the entity, is set out below:

Movements in the number of PSRs outstanding and their exercise prices are as follows:

20262025

Number of options outstanding

As at beginning of the year-1,681,000

Granted during the year--

Exercised during the year--

Lapsed during the year-(1,681,000)

As at end of the year--

Exercisable at year end--

Number of employees--

Weighted average exercise price--

Weighted average remaining contractual life (months)--

There were no options outstanding at 31 March 2026 (2025: Nil). The weighted average exercise price for options

lapsed during the year was nil as no options lapsed (2025: $0.07).

ii) CEO Share based payment and issue of shares to the CEO

The Company entered into a Subscription agreement and issued shares to the CEO, Scott Johnson, on 22 March

2024. Further information is included within Note 17.

42
ANNUAL REPORT

6. CASH AND CASH EQUIVALENTS, SHORT-TERM DEPOSITS AND NZX BOND

Policy

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits, and other short-term highly liquid

investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of

changes in value. Cash and short-term deposits are initially recognised at fair value and subsequently measured

at amortised cost using the effective interest method.

Short term Deposits

Short term deposits includes investments with Bank of New Zealand, with periods ranging up to 365 days.

NZX Bond

A deposit is held at Bank of New Zealand as security for a bond issued to the NZX. These funds do not represent

operating cash reserves.

2026

$’000

2025

$’000

Cash and cash equivalents4,0054,206

Short-term deposits4,5005,450

8,5059,656

NZX bond7575

7. TRADE AND OTHER RECEIVABLES

Policy

Trade and other receivables

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost

using the effective interest method, less any provision for expected credit losses.

The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected

credit loss allowance.

The measurement of expected credit losses is a function of the probability of default, loss given default and the

exposure at default.

The expected credit losses on trade receivables are estimated using a provision matrix by reference to past

default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors

that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an

assessment of both the current as well as the forecast direction of conditions at the reporting date.

The allowance recognised is measured as the difference between the asset’s carrying amount and the present

value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

2026

$’000

2025

$’000

Trade receivables2,0281,057

Allowance for expected credit losses (note 22 g)--

GST receivable239

2,0511,066

Trade receivables and other receivables are non-interest bearing and receipt is normally on 30 to 60 day terms.

Therefore, the carrying value of trade debtors and other receivables approximates its fair value.

43
BLIS TECHNOLOGIES LIMITED

8. INVENTORY

Policy

Inventories are stated at the lower of cost and net realisable value. Cost is determined using average cost. Net

realisable value represents the estimated selling price less all estimated costs of completion and costs to be

incurred in marketing, selling and distribution.

2026

$’000

2025

$’000

Raw materials1,187446

Finished goods544353

Provision for write-off(141)(71)

1,590728

During the year $150,981 (2025: $22,816) was recognised as an expense in respect of write-downs to inventory to

net realisable value.

9. PROPERTY, PLANT AND EQUIPMENT

Policy

All items of Property, Plant and Equipment are stated at cost less accumulated depreciation, and impairment.

Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement

of all or part of a purchase consideration is deferred, cost is determined by discounting the amounts payable in

the future to their present value as at the date of acquisition.

Depreciation is provided on property, plant and equipment. Depreciation is calculated on a straight-line basis so

as to write off the net cost of the asset over its expected useful life to its estimated residual value. The following

estimates of useful lives are used in the calculation of depreciation:

Leasehold improvements 3–10 years

Furniture and fittings 3–15 years

Plant and equipment 2–18 years

2026

COST

1 APRIL

2025

$’000

ADDITIONS/

TRANSFERS

$’000

DISPOSALS

$’000

COST

31 MARCH

2026

$’000

ACCUMULATED

DEPRECIATION

1 APRIL 2025

$’000

DEPRECIATION

EXPENSE

$’000

ACCUMULATED

DEPRECIATION

REVERSED ON

DISPOSAL

$’000

ACCUMULATED

DEPRECIATION

31 MARCH 2026

$’000

BOOK VALUE

31 MARCH

2026

$’000

Leasehold

improvements366--366(336)(2)-(338)28

Furniture

and fittings1934-197(168)(19)-(187)10

Plant and

equipment1,607121(15) 1,713(1,149)(112)15(1,246)467

2,166125(15) 2,276(1,653)(133)15(1,771)505

2025

COST

1 APRIL

2024

$’000

ADDITIONS/

TRANSFERS

$’000

DISPOSALS

$’000

COST

31 MARCH

2025

$’000

ACCUMULATED

DEPRECIATION

1 APRIL 2024

$’000

DEPRECIATION

EXPENSE

$’000

ACCUMULATED

DEPRECIATION

REVERSED ON

DISPOSAL

$’000

ACCUMULATED

DEPRECIATION

31 MARCH 2025

$’000

BOOK VALUE

31 MARCH

2025

$’000

Leasehold

improvements366--366(333)(3)-(336)30

Furniture

and fittings18217(6)193(155)(19)6(168)25

Plant and

equipment1,876120(389)1,607(1,434)(103)388(1,149)458

2,424137(395)2,166(1,922)(125)394(1,653)513

44
ANNUAL REPORT

10. FINITE LIFE INTANGIBLE ASSETS

Policy

Intangible assets acquired separately are reported at

cost less accumulated amortisation and accumulated

impairment losses. Amortisation is recognised on

a straight-line basis over their estimated useful

lives. The estimated useful lives, residual values and

amortisation method are reviewed at the end of each

reporting period, with the effect of any changes in

estimate being accounted for on a prospective basis.

Intellectual Property

The cost of intellectual property (patents and

trademarks) is written off until such time as it

becomes clear that future economic benefits

attributable to that expenditure will flow to the

Group and there is sufficient evidence to support the

probability of the expenditure generating sufficient

future economic benefits.

Intellectual property including patents, trademarks

and licenses are considered finite life intangibles and

are recorded at cost less accumulated amortisation

and impairment. Amortisation is charged on a

straight-line basis over the estimated useful life of the

intangible asset being 10 to 20 years. The estimated

useful life and amortisation method is reviewed at the

end of each annual reporting period.

IT, Website Development and Software

Following the initial investment, which is recorded at

cost and amortised over 3 years, the cost of further

website development is expensed as incurred.

Internally generated Intangible Assets –

Capitalised Product Development Expenditure

Expenditure on research activities is recognised as an

expense in the period in which it is incurred.

An internally generated intangible asset arising from

development (or from the development phase of an

internal project) is recognised if, and only if, all of the

following have been demonstrated:

• the technical feasibility of completing the

intangible asset so that it will be available for use

or sale;

• the intention to complete the intangible asset and

use or sell it;

• the ability to use or sell the intangible asset;

• how the intangible asset will generate probable

future economic benefits;

• the availability of adequate technical, financial and

other resources to complete the development and

to use or sell the intangible asset; and

• the ability to measure reliably the expenditure

attributable to the intangible asset during its

development.

The amount initially recognised for internally

generated intangible assets is the sum of the

expenditure incurred from the date when the

intangible asset first meets the recognition criteria

listed above. Where no internally generated intangible

asset can be recognised, development expenditure

is charged to profit or loss in the period in which it

is incurred.

Subsequent to initial recognition, internally

generated intangible assets are reported at cost

less accumulated amortisation and accumulated

impairment losses, on the same basis as intangible

assets acquired separately. The useful life of internally

generated intangible assets is 8 years.

Impairment of Assets

At each balance sheet date, the Group reviews the

carrying amounts of its assets to determine whether

there is any indication that those assets have suffered

an impairment loss. If any such indication exists, the

recoverable amount of the asset is estimated in order

to determine the extent of the impairment loss (if any).

Where the asset does not generate cash flows that are

independent from other assets, the Group estimates

the recoverable amount of the cash-generating unit to

which the asset belongs.

The recoverable amount is the higher of fair value less

costs to sell and value in use. In assessing value in use,

the estimated future cash flows are discounted to

their present value using a pre-tax discount rate that

reflects current market assessments of the time value

of money and the risks specific to the asset for which

the estimates of future cash flows have not been

adjusted.

If the recoverable amount of an asset (cash-

generating unit) is estimated to be less than its

carrying amount, the carrying amount of the asset

(cash-generating unit) is reduced to its recoverable

amount. An impairment loss is recognised in profit or

loss immediately.

Where an impairment loss subsequently reverses, the

carrying amount of the asset (cash-generating unit)

is increased to the revised estimate of its recoverable

amount, but only to the extent that the increased

carrying amount does not exceed the carrying

amount that would have been determined had no

impairment loss been recognised for the asset (cash-

generating unit) in prior years.

45
BLIS TECHNOLOGIES LIMITED

2026

TRADE

MARKS

$’000

PATENTS

$’000

CAPITALISED

DEVELOPMENT

$’000

IT, WEBSITE

DEVELOPMENT

AND SOFTWARE

$’000

TOTAL

$’000

Gross carrying amount

Balance at 1 April 20255591,6274,1034006,689

Additions118256--374

Disposals(41)(59)--(100)

Balance at 31 March 20266361,8244,1034006,963

Accumulated amortisation and impairment

Balance at 1 April 20251631,0933,7713995,426

Amortisation expense5848901197

Disposals(4)(6)--(10)

Balance at 31 March 20262171,1353,8614005,613

Net book value at 31 March 2026419689242-1,350

2025

TRADE

MARKS

$’000

PATENTS

$’000

CAPITALISED

DEVELOPMENT

$’000

IT, WEBSITE

DEVELOPMENT

AND SOFTWARE

$’000

TOTAL

$’000

Gross carrying amount

Balance at 1 April 20244271,4254,1214006,373

Additions144202--346

Disposals(12)-(18)-(30)

Balance at 31 March 20255591,6274,1034006,689

Accumulated amortisation and impairment

Balance at 1 April 20241231,0553,6763975,251

Amortisation expense4638952181

Disposals(6)---(6)

Balance at 31 March 20251631,0933,7713995,426

Net book value at 31 March 20253965343321 1,263

Trademarks are amortised over their estimate useful lives, which is on average 10 years.

Patents are amortised over their estimated useful lives, which is on average 20 years.

The amortisation period for development costs incurred on the Group’s K12, M18 and Q24 product development

is 8 years.

The amortisation period for the development costs incurred on the Group’s IT, website and software development

is 3 years.

No impairment losses have been recorded in the current year (2025: Nil).

Capitalised product development expenditure relates to costs incurred in relation to the development of

ingredient, intermediate and food products containing BLIS, and the associated regulatory approval processes.

Impairment test for Intangible Assets

The Group reviewed the carrying amounts of its assets at balance date and assessed there was no indication

that the assets have suffered an impairment loss and therefore an assessment of the recoverable amount of the

assets was not required.

46
ANNUAL REPORT

11. LEASES

Policy

The Group as a lessee

The Group leases certain property, plant and equipment. The Group recognises a right-of-use asset and a

corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term

leases and leases of low value assets where the Group recognises the lease payments as an other operating

expense on a straight-line basis over the term of the lease.

Lease Liabilities

Lease liabilities are initially measured at the present value of the lease payments that are not paid at the

commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined,

the Group uses its incremental borrowing rate (IBR).

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments, less any lease incentives;

• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the

commencement date;

• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to

terminate the lease.

Lease liabilities are presented as a separate line in the balance sheet and are subsequently measured by

increasing the carrying amount to reflect interest on the lease (using the effective interest method) and reducing

the carrying amount to reflect the lease payments made.

The Group remeasures the lease liability if:

• The lease term has changed or there is a change in the assessment of exercise of a purchase option, in which

case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;

• Lease payments changing due to changes in an index or rate, in which case the lease liability is remeasured

by discounting the revised lease payments using the initial discount rate; or

• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case

the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

ROU assets

ROU assets comprise of the initial measurement of the corresponding lease liability, lease payments made at

or before the commencement date and any initial direct costs. They are subsequently measured at cost less

accumulated depreciation and impairment losses.

Wherever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on

which it is located or restore the underlying asset to the condition required by the terms and conditions of the

lease, a provision is recognised and measured under NZ IAS 37. The costs are included in the related ROU asset,

unless those costs are incurred to produce inventories.

ROU assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The

estimated useful lives of ROU assets are determined on the same basis as similar owned assets within property,

plant and equipment. Depreciation starts at the commencement date of the lease.

ROU assets are presented as a separate line in the balance sheet.

The Group applies NZ IAS 36 to determine whether a ROU asset is impaired and accounts for any identified loss

under the same policy adopted for property, plant and equipment.

Variable rents that do not depend on an index or rate are not included in the measurement of the lease

liability and ROU asset. The related payments are recognised as an expense in the period in which the event or

condition that triggers those payments occurs and are included in other operating expenses in the statement of

comprehensive income.

47
BLIS TECHNOLOGIES LIMITED

Right-of-use assets

2026

PROPERTIES

$’000

OFFICE

EQUIPMENT

$’000

TOTAL

$’000

As at 1 April 2025511-511

Additions21-21

Depreciation expense(133)-(133)

Net book value as at 31 March 2026399-399

2025

PROPERTIES

$’000

OFFICE

EQUIPMENT

$’000

TOTAL

$’000

As at 1 April 202434711358

Additions416-416

Depreciation expense(252)(11)(263)

Net book value as at 31 March 2025511-511

Lease Liabilities – Maturity Analysis

2026

$’000

2025

$’000

Less than one year183168

Between one and five years256421

More than five years--

439589

Current183168

Non-current256421

Total439589

The Group leases various properties and office equipment under non-cancellable leases expiring within one to

five years. The leases have varying terms and have no option to purchase in respect to the leased equipment in

the financial year ended 31 March 2026.

20262025

Amounts recognised in consolidated statement of comprehensive income:

Depreciation of right-of-use assets133263

Interest expense on lease liabilities3826

Expense relating to short-term leases163

The total cash outflow for leases in 2026 was $205,704 (2025: $240,907).

The incremental borrowing rate applied on properties was 6.5% (2025: 6.5%) and office equipment 6% (2025: 6%).

48
ANNUAL REPORT

The below table details changes in the Group’s lease liabilities from financing activities, including both cash and

non-cash changes.

Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be,

classified in the Group’s statement of cash flows from financing activities.

2026

OPENING

BALANCE AT

1 APRIL 2025

$’000

NON-CASH

CHANGES

1

$’000

RECOGNISED

ON ACQUISITION

$’000

NON-FINANCING

CASH FLOWS

$’000

FINANCING

CASH FLOWS

$’000

CLOSING

BALANCE AT

31 MARCH 2026

$’000

Lease liabilities58925--(175)439

58925--(175)439

2025

OPENING

BALANCE AT

1 APRIL 2024

$’000

NON-CASH

CHANGES

1

$’000

RECOGNISED

ON ACQUISITION

$’000

NON-FINANCING

CASH FLOWS

$’000

FINANCING

CASH FLOWS

$’000

CLOSING

BALANCE AT

31 MARCH 2025

$’000

Lease liabilities389416--(216)589

389416--(216)589

(1) Non-cash changes within lease liabilities relate to new leases entered into during the financial year, interest, lease modifications

and reassessments of lease terms.

12. TRADE AND OTHER PAYABLES

Policy

Trade Payables

Trade payables are initially measured at fair value and subsequently measured at amortised cost using the

effective interest rate method.

Employee Benefits

Provision is made for benefits accruing to employees in respects of wages and salaries and annual leave when

it is probable that settlement will be required, and they are capable of being measured reliably. Provisions

are initially measured at fair value and subsequently measured at amortised cost using the effective interest

rate method.

Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at

their nominal values using the remuneration rate expected to apply at the time of settlement. Provisions made

in respect of employee benefits which are not expected to be settled within 12 months are measured at the

present value of the estimated future cash outflows to be made by the Group in respect of services provided

by employees up to reporting date.

2026

$’000

2025

$’000

Trade payables870903

Employee entitlements609475

1,4791,378

49
BLIS TECHNOLOGIES LIMITED

13. BORROWINGS

Policy

Borrowings are recognised initially at fair value less directly attributable transaction costs and subsequently

measured at amortised cost using the effective interest method.

2026

$’000

2025

$’000

Asset finance--

Total borrowings--

Current borrowings--

Non-current borrowings--

Total borrowings--

The Group has an undrawn trade credit loan facility with the Bank of New Zealand that has a base limit of $550,000.

The effective interest rate of the trade credit loans is between 5.89%–6.87% (2025: 5.89%–6.87%).

Security

The banking facilities from Bank of New Zealand are secured by general security agreement over all present and

after acquired property of BLIS. There is assignment of Trade Credit Insurance Policy covering export receivables

and specific security (set off and charge) over Term Deposit funds to secure NZX Bond.

14. INVESTMENT IN SUBSIDIARY

PERCENTAGE HELD

BALANCE

DATE

PRINCIPAL

ACTIVITY20262025

BLIS Functional Foods Limited100%100%31 MarchNon-trading

15. SHARE CAPITAL AND EARNINGS / (DEFICIT) PER SHARE

NO. OF SHARES

2026

$’000NO. OF SHARES

2025

$’000

Balance at the beginning of the year

(fully paid)1,279,301,59946,6491,279,301,59946,649

Shares pursuant to CEO share plan-40--

Balance at the end of the year1,279,301,59946,6891,279,301,59946,649

All 1,279,301,599 ordinary shares are issued and carry equal voting rights. All issued shares participate equally in

any dividend distribution or any surplus on winding up of the Company.

50
ANNUAL REPORT

Earnings per share

2026

$’000

2025

$’000

Profit attributable to members of the Company used in calculating

basic and diluted EPS ($’000)692838

Weighted average number of ordinary shares (’000) for basic EPS1,279,3021,279,302

Effect of dilution due to performance rights--

Weighted average number of ordinary shares (’000) for diluted EPS1,279,3021,279,302

Earnings per share

Basic EPS (cents)0.050.07

Diluted EPS (cents)0.050.07

Recognition and measurement

Basic EPS is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of

servicing equity (other than dividends), divided by the weighted average number of ordinary shares outstanding

during the financial year. Diluted EPS adjusts basic EPS for the dilutive effect of employee share rights and

options that may be converted into ordinary shares in the Company.

16. RESERVES

Nature and purpose of share based payment equity reserves

Share option equity reserve

The Share option equity reserve relates to the CEO share plan refer note 17.

Employee performance rights plan reserve

The Reserve is used to recognise the fair value of PSRs granted but not exercised. All PSRs previously granted

have now lapsed, refer to note 5.

2026

$’000

2025

$’000

Balance at the beginning of the year7680

CEO share option equity reserve(13)-

Expense recognised in relation to employee performance rights plan reserve-(4)

Balance at end of the year6376

17. RELATED PARTY TRANSACTIONS

During the year, BLIS products were sold to the following related parties (excluding web sales).

ASSOCIATE ENTITYDIRECTOR20262025

Probi ABAnita Johansen$2,338,984$2,531,247

In 2022 BLIS entered into a license and distribution agreement which grants Probi rights to manufacture and

sell BLIS K12™ and M18™. The above reflects $1,091,590 ingredient sales and $1,247,394 license fee and royalties

revenue for the year ended 31 March 2026 (2025: $1,465,176 ingredient sales and $1,066,071 license fee and

royalties revenue). Ingredient sales were made on commercial terms that would be available to third parties and

license fee and royalties in line with the terms in the Technology license and distribution agreement, reflecting

commercial terms agreed by both parties. At 31 March 2026 BLIS had a receivable balance from Probi of $285,443

(2025: $377,096).

Product seconds are made available to the staff and Board members for personal use at no charge.

51
BLIS TECHNOLOGIES LIMITED

CEO Share option and issue of shares to the CEO

The Company entered into a Subscription Agreement and issued 5,500,000 new ordinary shares to the CEO,

Scott Johnson, on 22 March 2024. The shares were issued for cash consideration of 1.51 cents per share being

an aggregate $83,136.84, which was satisfied by way of a contemporaneous interest free loan provided by the

Company to the CEO for an aggregate amount equivalent to the subscription price for the shares.

The loan is secured by a lien on the issued shares and repayable in equal annual instalments commencing on

31st May 2025 with the final instalment due on 31 May 2027.

The shares were issued at the volume weighted average share price for the 5 trading days prior to 22 March 2024.

The issue price was considered by the Directors of the Company to be equivalent to the price that the tranche of

shares would have been issued to an independent third party at the time of issue.

The Subscription Agreement provides security against the loan through a charge on the shares. The appropriate

approach consistent with the relevant accounting standard is to treat the entire arrangement as a share option.

Using the Black Scholes option pricing model for the CEO Share Plan at an implied volatility of 62% and

referenced to the prevailing share price of 1.5 cents on 22 March 2024 yielded an aggregate option value of

$37,970. This amount was treated as a reserve.

As a result of the charge to the statement of comprehensive income, a CEO Share Option Reserve was created

in the Consolidated Statement of Changes in Equity. Upon receipt of each of the scheduled loan repayments the

notional option value associated with each tranche transfers from the CEO Share Plan Reserve to Share Capital

and the amount of each loan repayment is recorded to equity to represent the consideration received for each

tranche of shares issued to the CEO.

$27,712 consideration was received for the year ended 31 March 2026 (2025: nil).

Fair Value of Share Options

The fair value of the share options granted during the 2024 financial year was $37,970. Options were priced using

the Black- Scholes option pricing model. Expected volatility is based on the historical share price over the past 3

years, consistent with the options lives.

No allowance for early exercise was incorporated into the fair value calculation as it was assumed that the CEO

would exercise the options at the latest exercise date.

There are no market or service conditions.

The fair value model is most susceptible to changes in the expected volatility. Had an expected volatility of 87%

been utilised, the fair value of the share options would have been $48,806.

Inputs to the model:

Option Series

123

Grant date weighted average share price$0.015$0.015$0.015

Exercise price$0.0151$0.0151$0.0151

Expected volatility62%62%62%

Option life (years)3.192.31.0

Dividend yield0%0%0%

Risk free interest rate4.5%4.5%4.5%

Final exercise date31/05/2531/05/2631/05/27

18. COMMITMENTS FOR EXPENDITURE

As at 31 March 2026 there was $1,895 of capital expenditure commitments (2025: $39,438).

52
ANNUAL REPORT

19. CONTINGENT ASSETS AND CONTINGENT LIABILITIES

There were no material contingent assets or contingent liabilities at 31 March 2026 (2025: nil).

20. SEGMENTAL REPORTING

20.1 Operating segments

The Group is internally reported as a single operating segment to the chief operating decision-maker.

20.2 Revenue from major products and services

2026

$’000

2025

$’000

The Group’s revenues from its major products and services were as follows:

BLIS products14,66812,644

Non-core business308450

Total revenue and other income14,97613,094

Non-core business includes grant, interest and other revenue.

20.3 Information about geographical areas

The Group operates in 4 principal geographical areas, New Zealand, Asia Pacific (excluding New Zealand), Europe

Middle East and Africa (EMEA) and North America.

The Group’s revenue from external customers and information about its assets by geographical location (of the

customer).

REVENUE FROM EXTERNAL CUSTOMERSNON-CURRENT ASSETS

2026

$’000

2025

$’000

2026

$’000

2025

$’000

New Zealand2,2412,2622,3292,287

Asia Pacific (excl. NZ)3,5732,053--

EMEA4,3533,737--

North America4,5014,592--

Total revenue14,66812,6442,3292,287

Grant revenue4122--

Interest revenue263428--

Other revenue4---

Total revenue and other income14,97613,0942,3292,287

Included in revenue are revenues of $4,302k and $2,339k and $1,350k (2025: $3,588k and $2,531k and $722k) which

arose from sales to the Group’s three largest customers (2025: three).

The geographical split for revenue from external customers for the 12 months ended 31 March 2025 has been

reclassified to align with current period customer location. The New Zealand revenue is $2,262k (previously

$2,032k) and Asia Pacific (excl NZ) revenue is $2,053k (previously $2,283k), reflecting a reclassification of $230k.

53
BLIS TECHNOLOGIES LIMITED

21. RECONCILIATION OF NET SURPLUS /(DEFICIT) WITH CASH FLOWS FROM

OPERATING ACTIVITIES

Policy

For the purpose of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and

investments in money market instruments net of outstanding bank overdrafts.

The cash flow statement is prepared exclusive of GST, which is consistent with the method used in the

consolidated statement of comprehensive income.

Definition of terms used in the cash flow statement:

Operating activities include all transactions and other events that are not investing or financing activities.

Investing activities are those activities relating to the acquisition and disposal of current and non-current

investments and any other non-current assets.

Financing activities are those activities relating to changes in the equity and debt capital structure of the Group

and those activities relating to the cost of servicing the Group’s equity.

2026

$’000

2025

$’000

Net surplus for the year692838

Adjustments for non-cash items:

Amortisation (note 10)197181

Depreciation property, plant and equipment (note 9)133125

Depreciation right of use assets (note 11)133263

Foreign exchange loss / (gain)(88)(40)

Lease liability adjustment4-

CEO share option expense (note 16)--

PSR expense (note 16)-(4)

Loss/(gain) on fair value of foreign exchange contracts2(22)

Loss/(gain) on disposal of intangible assets9026

1,1631,367

2026

$’000

2025

$’000

Movements in working capital

Trade and other payables98351

Prepayments(72)(68)

Inventories(862)(9)

Trade and other receivables(984)231

Income tax receivable62(78)

(1,758)427

Net cash inflow from operating activities(595)1,794

54
ANNUAL REPORT

22. FINANCIAL INSTRUMENTS

Policy

Financial Instruments

Financial assets and financial liabilities are recognised on the Group’s Balance Sheet when the Group becomes

a party to the contractual provisions of the instrument.

All of the Group’s financial assets (excluding derivative financial assets) are measured at amortised cost. Foreign

exchange contracts are measured at fair value, all of the Group’s other financial liabilities are measured at

amortised cost.

(a) Financial risk management objectives

Exposure to credit, interest rate, foreign currency and liquidity risks arises in the normal course of the Group’s

business.

The Group does not enter into derivative financial instruments for speculative purposes. The Group utilises

forward cover on confirmed foreign currency transactions. Specific risk management objectives and policies are

set out below.

(b) Capital risk management

The Group manages its capital to ensure that the Group will be able to continue as a going concern while

maximising the return to stakeholders through the optimisation of debt and equity.

The capital structure of the Group comprises issued capital reserves, share based payment equity reserves and

retained earnings as disclosed in the Statement of Changes in Equity.

The Group’s Board of Directors reviews the capital structure on a regular basis.

The Group is not subject to externally imposed capital requirements.

The Group’s overall strategy remains unchanged from 2025.

(c) Market risk

Market risk is the potential for change in the value of financial instruments caused by a change in the value,

volatility or relationship between market risks and prices. Market risk arises from the mismatch between assets

and liabilities. The Group’s activities expose it primarily to market risk associated with changes in foreign currency

rates and interest rates as set out below. These risks are measured using sensitivity analysis. The mechanisms

for managing these risks are set out below. The Group enters into foreign exchange contracts to manage its

exposure to foreign currency transactions, there have been no changes during the year to the Group’s exposure

to such risks or the manner in which the risks are measured and managed.

(d) Interest rate risk

The Group is exposed to interest rate risk as from time to time it borrows funds at floating interest rates and also

invests cash in short term deposits at fixed interest rates. Fair value interest rate risk is the risk that the value of a

financial instrument will fluctuate due to changes in market interest rates.

Investments and borrowings at fixed interest rates expose the Group to fair value interest rate risk. The Group

does not hedge this risk. Cash flow interest rate risk is the risk that the cash flows from a financial instrument will

fluctuate because of changes in market interest rates. Borrowings issued at variable interest rates expose the

Group to cash flow interest rate risk. The Group does not hedge this risk.

(e) Foreign exchange risk

In the course of normal trading activities, the Group undertakes transactions denominated in foreign currencies;

hence exposures to exchange rate fluctuations arise. The Group enters into foreign exchange contacts on certain

sales denominated in foreign currencies to economically hedge the foreign exchange risk associated with the

timing between the date of sale and receipt of payment. The Group has not adopted hedge accounting.

55
BLIS TECHNOLOGIES LIMITED

The carrying amount of the Group’s foreign currency denominated monetary assets are as follows:

2026

$’000

2025

$’000

Euro289

United States dollar936903

Canadian dollar--

The table below details the notional principal amounts and remaining terms of foreign exchange contracts

outstanding at reporting date:

AVERAGE

CONTRACT RATE

FOREIGN

CURRENCY

NOMINAL

CONTRACT VALUE

FAIR VALUE

ASSET/(LIABILITY)

202620252026

$’000

2025

$’000

2026

$’000

2025

$’000

2026

$’000

2025

$’000

Euro

Less than 1 year0.5044-729-720-(9)-

USD

Less than 1 year0.6031140133(7)

CAD

Less than 1 year--------

729140720133(9)(7)

The above tables express foreign currency amounts in New Zealand dollar equivalents using the exchange rates

at 31 March 2026 and 31 March 2025. The rates applied at 31 March were:

20262025

EUR0.49800.5277

USD0.57070.5714

CAD0.79470.8179

The fair value of the foreign exchange contracts is based on a discounted cash flow analysis using observable

market data and is a level 2 fair value measurement.

Foreign exchange rate sensitivity

Reasonable fluctuations in foreign exchange rates were determined based on a review of the last two years’

historical movements. A movement of plus or minus 10% has therefore been applied to the exchange rates to

demonstrate the sensitivity to foreign currency risk of the Group.

The following sensitivity is based on the foreign currency risk exposures in existence at balance date. The impact

of a plus or minus 10% foreign exchange movement on New Zealand dollars against all trading currencies, with all

other variables held constant, is illustrated below:

-10%+10%

2026

$’000

2025

$’000

2026

$’000

2025

$’000

Surplus / (deficit) before tax13(23)(29)(2)

(f) Other price risk

The Group is not exposed to substantial other price risk arising from financial instruments.

56
ANNUAL REPORT

(g) Credit risk

Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial

loss to the Group. Financial instruments which potentially subject the Group to credit risk, principally consist of

bank balances and trade and other receivables.

In the normal course of business, the Group is exposed to counterparty credit risk. The maximum exposure

to credit risk is equal to the carrying value of cash and short term deposits, trade and other receivables

and transactions with financial institutions (derivative financial instruments). The Group requires payment

of deposits prior to production by high credit risk customers and carries trade credit insurance for its four

largest customers. The Group, as a result of the markets in which they operate, can be exposed to significant

concentrations of credit risk from trade receivables. The Group has assessed that there are no expected credit

losses due to minimal actual or forecast defaults. They do not require any collateral or security to support

financial instruments as these represent deposits with, or loans to, banks and other financial institutions with

high credit ratings.

2026

$’000

2025

$’000

Cash and cash equivalents4,0054,206

Short term deposits4,5005,450

NZX bond7575

Trade receivables (net of loss allowance)2,0281,057

GST receivable239

10,63110,797

Ageing receivables breakdown

2026

GROSS AMOUNTS

RECEIVABLE

$’000

ALLOWANCE

FOR EXPECTED

CREDIT LOSSES

$’000

NET BALANCE

$’000

Current1,900-1,900

0–30 days (past due)37-37

31–60 days (past due)---

Greater than 60 days (past due)91-91

Total past due128-128

Total trade receivables2,028-2,028

2025

Current1,022-1,022

0–30 days (past due)31-31

31–60 days (past due)2-2

Greater than 60 days (past due)2-2

Total past due35-35

Total trade receivables1,057-1,057

At 31 March 2026, trade receivable includes amounts of $490k and $486k and $285k (2025: $377k, $190k) due

from the Group’s three largest receivables (2025: two). All of the Group’s bank accounts are held with Bank of

New Zealand. Otherwise the Group does not have any other concentrations of credit risk.

57
BLIS TECHNOLOGIES LIMITED

(h) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an

appropriate liquidity risk management framework for the management of the Group’s short, medium and

long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining

adequate reserves by continuously monitoring forecast and actual cash flows and matching the maturity profiles

of financial assets and liabilities. The Group also has approved trade funding facilities with a base limit of up to

$550k. As at 31 March 2026 the facility was not drawn down (2025: Nil).

Liquidity and interest risk tables

The following tables detail the Group’s remaining contractual maturity for non-derivative financial liabilities. The

tables have been drawn up based on the undiscounted contractual cash flows of the financial liabilities including

interest that will accrue to those liabilities.

WEIGHTED

AVERAGE

EFFECTIVE

2026 INTEREST RATE

YEARS

<1

$’000

1–2

$’000

2–3

$’000

3–4

$’000

4–5

$’000

5+

$’000

TOTAL

$’000

Financial liabilities at amortised cost

Trade payables-870-----870

Lease liabilities6.00%20616052529-479

Total1,07616052529-1,349

WEIGHTED

AVERAGE

EFFECTIVE

2025 INTEREST RATE

YEARS

<1

$’000

1–2

$’000

2–3

$’000

3–4

$’000

4–5

$’000

5+

$’000

TOTAL

$’000

Financial liabilities at amortised cost

Trade payables-903-----903

Lease liabilities6.00%20120115548488 661

Total1,10420115548488 1,564

(i) Fair value of financial instruments

The fair values of financial assets and financial liabilities are determined as follows:

• The fair value of financial assets and financial liabilities with standard terms and conditions and traded on

active liquid markets are determined with reference to quoted market prices; and

• The fair value of other financial assets and financial liabilities (excluding derivative instruments) are

determined in accordance with generally accepted pricing models based on discounted cash flow analysis

using prices from observable current market transactions and dealer quotes for similar instruments.

The Directors consider that the carrying amount of financial assets and financial liabilities recorded at amortised

cost in the financial statements approximates their fair values.

23. EVENTS AFTER BALANCE DATE

There were no significant events after balance date (2025: nil).

58
ANNUAL REPORT

ADDITIONAL

STOCK EXCHANGE

INFORMATION

FOR THE YEAR ENDED 31 MARCH 2026

The Company’s ordinary shares are listed on the NZX Limited Main Board (NZSX).

As at 31 March 2026 the total number of issued ordinary shares in the Company was 1,279,301,599.

1. SUBSTANTIAL PRODUCT HOLDERS

The following substantial product holder information is given pursuant to section 293 of the Financial Markets

Conduct Act 2013. These substantial product holders are shareholders that have a relevant interest in 5% or more

of the ordinary shares in the Company. As at 31 March 2026 details of the substantial product holders of the

Company and their relevant interests in the ordinary shares of the Company are as follows:

NAME OF SUBSTANTIAL PRODUCT HOLDERSHAREHOLDING AS AT 31 MARCH 2026% OF ISSUED SHARE CAPITAL

Probi AB166,148,03412.99%

Sinclair Capital Management Limited165,141,72912.91%

Roger Norman Macassey and Mark Andrew Taylor

as Trustees of the ES Edgar Trust142,213,15811.12%

Included within the Sinclair Capital Management Limited shareholding is 142,213,158 shares in which Roger

Norman Macassey and Mark Andrew Taylor as Trustees of the E S Edgar Trust have a relevant interest as

beneficial owner and are held by Leveraged Equities Finance as legal owner.

2. SPREAD OF SECURITY HOLDERS AT 31 MARCH 2026 – ORDINARY SHARES

NUMBER OF

SECURITY HOLDERS

PERCENTAGE OF

SECURITY HOLDERS

PERCENTAGE OF

SHARES HELD

1–50,0001,18851.32%1.94%

50,001–100,00036715.85%2.24%

100,001–150,0001466.31%1.46%

150,001–200,0001325.70%1.90%

200,001–300,0001175.05%2.32%

300,001–500,0001175.05%3.82%

500,001–1,000,0001094.71%6.38%

1,000,001–5,000,0001034.45%18.30%

5,000,001 and above361.56%61.63%

Total number of security holders is2,315

59
BLIS TECHNOLOGIES LIMITED

3. TWENTY LARGEST EQUITY SECURITY HOLDERS

The names of the 20 largest holders of each class of quoted equity security as at 31 March 2026 are listed below.

TOP 20 SHAREHOLDERS

NUMBER OF ISSUED

ORDINARY SHARES

PERCENTAGE

ISSUED

Leveraged Equities Finance178,664,63213.97%

Probi AB166,148,03412.99%

New Zealand Depository Nominee58,869,9874.60%

Custodial Services Limited35,653,4082.79%

James and May Trustee Company Limited27,280,0002.13%

Mingchun Qiu26,895,4822.10%

Mark Alexander Stevens & Wendy Joanne Stevens & Tony Jason Sycamore24,094,5771.88%

Asia Pacific Partners Limited21,850,8781.71%

Barry Charles Richardson & Joy Vera Richardson17,903,6251.40%

Hui Ai Adriana Tong & Morlan Tong16,878,1791.32%

Stephen Patrick Ward & Julie Patricia Ward & James Michael Ward15,307,1281.20%

FNZ Custodians Limited15,208,3971.19%

ASB Nominees Limited12,500,0000.98%

Jingli Fan11,381,4790.87%

Anthony Paul Offen & Bilinda Jane Offen & Downie Stewart Trustee Limited11,157,3880.87%

Jennbring Fruit Limited11,000,0000.86%

Edinburgh Securities Limited11,000,0000.86%

Caroline Robyn Ball & Christopher John Thomson Bush10,633,9310.83%

Bilinda Jane Offen10,000,0000.78%

Matthew Ryan Lynch & Moira Shane Lynch10,000,0000.78%

692,427,12554.11%

4. CREDIT RATING

The Company does not currently have a credit rating.

5. NZX MATTERS

No waivers were granted by NZX (or relied upon) with respect to the Company during the period 1 April 2025 to

31 March 2026.

60
ANNUAL REPORT



Independent Auditor’s Report

To the Shareholders of BLIS Technologies Limited

Opinion We have audited the consolidated financial statements of BLIS Technologies Limited and its

subsidiaries (the ‘Group’), which comprise the consolidated balance sheet as at 31 March

2026, and the consolidated statement of comprehensive income, consolidated statement of

changes in equity and consolidated statement of cash flows for the year then ended, and

notes to the consolidated financial statements, including material accounting policy

information.

In our opinion, the accompanying consolidated financial statements, on pages 30 to 57,

present fairly, in all material respects, the consolidated financial position of the Group as at

31 March 2026, and its consolidated financial performance and cash flows for the year then

ended in accordance with New Zealand Equivalents to IFRS Accounting Standards (‘NZ IFRS’)

as issued by the External Reporting Board and IFRS Accounting Standards (‘IFRS’) as issued

by the International Accounting Standards Board.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and

International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under

those standards are further described in the Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

We are independent of the Group in accordance with Professional and Ethical Standard 1

International Code of Ethics for Assurance Practitioners (including International

Independence Standards) (New Zealand) (‘PES 1’) issued by the New Zealand Auditing and

Assurance Standards Board and the International Ethics Standards Board for Accountants’

International Code of Ethics for Professional Accountants (including International

Independence Standards) (‘IESBA Code’) as applicable to audits of financial statements of

public interest entities. We have also fulfilled our other ethical responsibilities in accordance

with PES 1 and the IESBA Code.

Other than in our capacity as auditor, we have no relationship with or interests in the

Company or any of its subsidiaries, except that partners and employees of our firm deal with

the Company and its subsidiaries on normal terms within the ordinary course of trading

activities of the business of the Company and its subsidiaries.

Audit materiality



We consider materiality primarily in terms of the magnitude of misstatement in the financial

statements of the Group that in our judgement would make it probable that the economic

decisions of a reasonably knowledgeable person would be changed or influenced (the

‘quantitative’ materiality). In addition, we also assess whether other matters that come to our

attention during the audit would in our judgement change or influence the decisions of such a

person (the ‘qualitative’ materiality). We use materiality both in planning the scope of our

audit work and in evaluating the results of our work.

We determined materiality for the Group financial statements as a whole to be $250,000.

Key audit matters Key audit matters are those matters that, in our professional judgement, were of most

significance in our audit of the consolidated financial statements of the current period. These

matters were addressed in the context of our audit of the consolidated financial statements

as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on

these matters.



61
BLIS TECHNOLOGIES LIMITED



Independent Auditor’s Report

To the Shareholders of BLIS Technologies Limited

Opinion We have audited the consolidated financial statements of BLIS Technologies Limited and its

subsidiaries (the ‘Group’), which comprise the consolidated balance sheet as at 31 March

2026, and the consolidated statement of comprehensive income, consolidated statement of

changes in equity and consolidated statement of cash flows for the year then ended, and

notes to the consolidated financial statements, including material accounting policy

information.

In our opinion, the accompanying consolidated financial statements, on pages 30 to 57,

present fairly, in all material respects, the consolidated financial position of the Group as at

31 March 2026, and its consolidated financial performance and cash flows for the year then

ended in accordance with New Zealand Equivalents to IFRS Accounting Standards (‘NZ IFRS’)

as issued by the External Reporting Board and IFRS Accounting Standards (‘IFRS’) as issued

by the International Accounting Standards Board.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and

International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under

those standards are further described in the Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

We are independent of the Group in accordance with Professional and Ethical Standard 1

International Code of Ethics for Assurance Practitioners (including International

Independence Standards) (New Zealand) (‘PES 1’) issued by the New Zealand Auditing and

Assurance Standards Board and the International Ethics Standards Board for Accountants’

International Code of Ethics for Professional Accountants (including International

Independence Standards) (‘IESBA Code’) as applicable to audits of financial statements of

public interest entities. We have also fulfilled our other ethical responsibilities in accordance

with PES 1 and the IESBA Code.

Other than in our capacity as auditor, we have no relationship with or interests in the

Company or any of its subsidiaries, except that partners and employees of our firm deal with

the Company and its subsidiaries on normal terms within the ordinary course of trading

activities of the business of the Company and its subsidiaries.

Audit materiality



We consider materiality primarily in terms of the magnitude of misstatement in the financial

statements of the Group that in our judgement would make it probable that the economic

decisions of a reasonably knowledgeable person would be changed or influenced (the

‘quantitative’ materiality). In addition, we also assess whether other matters that come to our

attention during the audit would in our judgement change or influence the decisions of such a

person (the ‘qualitative’ materiality). We use materiality both in planning the scope of our

audit work and in evaluating the results of our work.

We determined materiality for the Group financial statements as a whole to be $250,000.

Key audit matters Key audit matters are those matters that, in our professional judgement, were of most

significance in our audit of the consolidated financial statements of the current period. These

matters were addressed in the context of our audit of the consolidated financial statements

as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on

these matters.






Key audit matter How our audit addressed the key audit matter

Revenue recognition

As disclosed in note 2(a), the Group recognised revenue

totaling approximately $14.7 million relating to sale of finished

goods, ingredients and license fees and royalties for the year in

the consolidated statement of comprehensive income.

There is complexity involved in assessing revenue recognition

given the volume of transactions through various sales

channels, and the inherent risk that revenue may be recognised

for transactions that have not occurred.

Revenue recognition is a key audit matter due to the

significance of the balance and the level of effort involved in

performing our audit procedures.


In performing our audit procedures:

• We developed an understanding of

the processes and

controls in place over recording of revenue.

• We tested a sample of recorded revenue transactions

to underlying customer contracts and invoices.

• We performed analytical procedures by customer to

assess revenue recognised.

• We performed analytical procedures to identify

unusual revenue transactions.

• We obtained third party confirmation of sales made to

certain customers for the full year.


Other information The directors are responsible on behalf of the Group for the other information. The other

information comprises the information in the Annual Report that accompanies the

consolidated financial statements and the audit report.

Our opinion on the consolidated financial statements does not cover the other information

and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and consider whether it is materially

inconsistent with the consolidated financial statements or our knowledge obtained in the

audit or otherwise appears to be materially misstated. If so, we are required to report that

fact. We have nothing to report in this regard.

Directors’ responsibilities for

the consolidated financial

statements

The directors are responsible on behalf of the Group for the preparation and fair presentation

of the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such

internal control as the directors determine is necessary to enable the preparation of

consolidated financial statements that are free from material misstatement, whether due to

fraud or error.

In preparing the consolidated financial statements, the directors are responsible on behalf of

the Group for assessing the Group’s ability to continue as a going concern, disclosing, as

applicable, matters related to going concern and using the going concern basis of accounting

unless the directors either intend to liquidate the Group or to cease operations, or have no

realistic alternative but to do so.

Auditor’s responsibilities for the

audit of the consolidated

financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial

statements as a whole are free from material misstatement, whether due to fraud or error,

and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high

level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

and ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the

basis of these consolidated financial statements.

A further description of our responsibilities for the audit of the consolidated financial

statements is located on the External Reporting Board’s website at:

https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-

report-1-1/

This description forms part of our auditor’s report.

62
ANNUAL REPORT

Restriction on use

This report is made solely to the Company’s shareholders, as a body. Our audit has been

undertaken so that we might state to the Company’s shareholders those matters we are

required to state to them in an auditor’s report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the

Company’s shareholders as a body, for our audit work, for this report, or for the opinions we

have formed.

Mike Hawken, Partner

for Deloitte Limited

Dunedin, New Zealand

20 May 2026

63
BLIS TECHNOLOGIES LIMITED

Restriction on use

This report is made solely to the Company’s shareholders, as a body. Our audit has been

undertaken so that we might state to the Company’s shareholders those matters we are

required to state to them in an auditor’s report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the

Company’s shareholders as a body, for our audit work, for this report, or for the opinions we

have formed.

Mike Hawken, Partner

for Deloitte Limited

Dunedin, New Zealand

20 May 2026

64
ANNUAL REPORT

COMPANY

DIRECTORY

FOR THE YEAR ENDED 31 MARCH 2026

COMPANY NUMBER

1042367

ISSUED CAPITAL

1,279,301,599 Ordinary Shares

REGISTERED OFFICE

BLIS Technologies Limited

399 Moray Place,

Dunedin Central, Dunedin 9016

SHAREHOLDERS

Listed on the NZX Main Board

SHARE REGISTRAR

MUFG Corporate Markets

Level 30, PwC Tower

15 Customs Street West

Auckland 1010

DIRECTORS

Dr A Stewart

A Johansen

A McCammon

Dr B Richardson

P Munro (appointed 1 March 2026)

G Plunket (retired 1 March 2026)

CHIEF EXECUTIVE

S Johnson

AUDITORS

Deloitte Limited

BANKERS

Bank of New Zealand

SOLICITORS

Anderson Lloyd

A J Park

WEBSITE

www.blis.co.nz

www.blisprobiotics.co.nz

FACEBOOK

www.facebook.com/

BLISProbioticsNZ

INSTAGRAM

www.instagram.com/blisprobiotics

LINKEDIN

www.linkedin.com/company/blis-

technologies-limited

BLIS Technologies Limited
Physical address: 399 Moray Place, Dunedin 9016

Postal address: PO Box 2208, Dunedin 9044, New Zealand

info@blis.co.nz | +64 3 474 0988 | www.blis.co.nz

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

Other issuers discussed similar conditions around this time

Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.