Annual Report 2026
ANNUAL REPORT
FOR THE YEAR ENDED 31 MARCH 2026
Pacific Edge Limited is a global cancer diagnostics
company leading the way in the development and
commercialization of bladder cancer diagnostic and
prognostic tests for patients presenting with hematuria
for surveillance of recurrent disease. Headquartered in
Dunedin, New Zealand, with shares listed on the NZX
and the ASX under the ticker code PEB, the company
provides its suite of Cxbladder tests globally through
its wholly owned, and CLIA certified, laboratories in
New Zealand and the US.
2
Performance 4
Chair and CEO reports 6
Strategic overview and success 12
Sustainability 18
Board and management 40
Governance 44
Risk analysis 55
Remuneration 61
Financial statements 67
Auditor’s report 104
Statutory information 108
Directory 114
This report provides a summary review of Pacific Edge’s operational and
financial performance for the year to 31 March 2026. It should be read in
conjunction with the company’s financial statements on pages
67 to 103
of this report. Throughout this report we have focused on what we believe
matters most to our stakeholders and our business.
Our aim is to provide easily understood, transparent and engaging
disclosures for our shareholders that describe our business, what we do and
why we do it. The information in this report has been compiled in accordance
with relevant law, rules, and corporate governance recommendations for
investor reporting. Financial information has been prepared in accordance
with appropriate accounting standards, and the consolidated financial
statements have been audited by PwC New Zealand.
This report, including the commentary, financial statements and information
required by statute were approved by the Pacific Edge Board on
24 June
2026. An electronic version of this report is available on the investor section
of our website: www.pacificedgedx.com
Simon Flood Dr Peter Meintjes
Chairman Chief Executive
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
3
FY26 FINANCIAL AND OPERATING PERFORMANCE
LIGHT SHADE: CLINICAL STUDY AND EVALUATION TESTS
DARK SHADE: COMMERCIAL TESTS
GLOBAL TEST VOLUMES
1
GLOBAL TEST VOLUMES BY PRODUCT
1
-
0%
2,000
10%
4,000
20%
6,000
30%
8,000
40%
10,000
50%
12,000
60%
14,000
70%
16,000
80%
18,000
90%
20,000
100%
TEST VOLUMES
PRODUCT MIX (%)
$11.5M
OPERATING REVENUE
47. 4%
$35.8M
NET LOSS AFTER TAX
19.5%
$2.4M
2
2H 26 MONTHLY CASH BURN
2 7.7% ON 1H 26
$36.1M
3
NEW EQUITY RAISED
1
TLT is the Total Laboratory Throughput including commercial, pre-commercial and clinical studies testing
2
Unaudited
3
$36.1 million equity raised comprising a NZ$25.4 million placement approved by the Board 12 May 2026 and $10.7 million retail offer approved by
the Board 2 June 2026.
18,240
1H 24
2,839
15,401
18,24018,24018,24018,24018,240
Q4 25Q1 26Q2 26Q3 26Q4 26
53%
26%
10%10%
16%
0%
2%
5%
6%
6%
18%
16%
15%
14%12%
30%
56%
70%70%
66%
14,393
2H 24
2,447
11,946
14,225
1H 25
1,900
12,325
14,669
2H 25
2,352
12,317
13,173
1H 26
2,802
10,371
11,017
2H 26
2,605
8,412
ADVANCING MEDICARE COVERAGE WITH PRUDENT CAPITAL
MANAGEMENT
We delivered strategically and managed our capital prudently in the face of significant
headwinds and now – with Medicare coverage in our sights – we stand on the cusp of an
acceleration in growth.
FY26 FINANCIAL
PERFORMANCE
Our financial results reflect
the disruption to test volumes
following the Medicare non-
coverage determination that
became effective in April 2025
and the shift in the US from
Detect to Triage. APAC volumes
show steady growth amid
growing albeit small volumes
from Asian markets.
SUBSEQUENT EVENT
AFTER 31 MARCH 2026
■
TRIAGE
■
DETECT
■
TRIAGE PLUS
■
MONITOR
4
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
FY26 FINANCIAL AND OPERATING PERFORMANCE
■
AMERICA
■
REST OF THE WORLD
■
1H
■
2H
PACIFIC EDGE OPERATING REVENUE
REGIONAL REVENUE CONTRIBUTION
$0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$M
FY25FY26FY24
$19.6
$10.9
$8.7
$23.9
$10.8
$13.1
$21.8
$10.9
$11.0
$11.5
$5.6
$5.9
FY22
$11.4
$6.1
$5.4
FY23
FY25
91%
9%
FY26
83%
17%
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
5
Dear Shareholders,
Pacific Edge can look back on FY26 as a year of
significant long-term value creation.
Supported by the strength of our clinical evidence,
the commitment of our people to the company’s
vision, and the confidence of our shareholders,
Pacific Edge achieved after balance date a defining
milestone: a draft Medicare policy that explicitly
establishes hematuria evaluation as a Medicare
benefit with coverage for Triage and Triage Plus.
As I stepped into the role of Director and Chair
at Pacific Edge late last year, I was confident
Medicare would cover Cxbladder based on my
conversations with Directors and Management,
and in February that confidence was further
boosted by the opinions expressed publicly by key
US urology leaders on the Contractor Advisory
Committee (CAC) meeting convened by Novitas
1
.
The draft Local Coverage Determination (LCD):
‘Urine-based Biomarkers in Patients with
Microhematuria’ (DL40378) was published on May
14 2026 and proposes coverage for both of Pacific
Edge’s hematuria evaluation products, deepens
the moat around our business and provides the
company with a strong foundation from which
to grow. Importantly, Triage and Triage Plus are
the only biomarkers proposed to be reimbursable
under this policy, with legacy tests and competing
products explicitly non-covered due to insufficient
supporting evidence.
The inclusion of Triage Plus, with a Medicare
approved price of US$1,328, 75% higher when
compared to Triage with a price of US$760,
will assist to lift revenue, margin and margin
percentage per test creating a clearer path to
profitability for the company.
In a further important detail, Novitas has advised
the Company that products covered in the draft
LCD are eligible for claim-by-claim reimbursement
for the patient population defined in the draft LCD.
We now expect the LCD to become final and
effective by the end of the 2026 calendar year, a
development anticipated to accelerate adoption of
our tests in the US and around the world.
FY26 FINANCIAL RESULTS
Our financial results for FY26 demonstrate careful
and prudent management of our capital as we
weathered the loss of Medicare coverage from
April 2025. We have balanced cash preservation
with protecting core assets to preserve our ability
to scale commercially with reliable reimbursement.
Operating revenue was $11.5 million down from
$21.8 million, reflecting the loss of coverage and
the continued pressure on US test volumes after
coverage was lost. Total revenue was $13.6 million
(FY25, $24.6 million)
Total laboratory throughput (TLT) of Cxbladder
tests was down 16.3% to 24,190 tests from 28,894
in FY25 with commercial tests down 23.8% to
18,783 tests (FY25; 24,642 tests). Volumes were
supported by growth at the Southern California
Permanente Medical Group and growth in the
APAC region.
The net loss after tax increased to $35.8 million,
higher than the $29.9 million recorded in FY25
due to lower revenue following the Medicare
non-coverage determination but partly offset by
disciplined cost control with a 9.5% reduction in
expenses for FY26 compared to FY25 and aided
by a reduction in the US sales force.
CHAIRMAN’S REPORT
1
Novitas is the Medicare Administrative Contractor that is responsible for Pacific Edge’s US operations.
AT A COMMERCIAL INFLECTION POINT
“The draft
LCD deepens the
moat around our
business”
6
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Cash, cash equivalents and short-term deposits at
the end of FY26 were $7.8 million; monthly cash
burn reduced through the year; with 2H 26 average
monthly cash burn of $2.4 million
2
vs $3.3 million
on 1H 26
3
as Pacific Edge maintained a prudent
approach to preserving capital.
In May 2026 the company raised $25.4 million
through a placement and a further $10.7 million
approved by the Board in June 2026 from a Retail
Offer to support our ongoing operations and
growth to achieve Medicare recovery, continue
evidence generation and develop our innovative
product portfolio.
STRATEGY
The draft LCD — drafted by Novitas following their
February 2026 Contractor Advisory Committee —
was the standout milestone for our pillar of value
creation: evidence, coverage and guidelines. We
have also notched up several successes on the
other two pillars that drive shareholder value –
revenue generation and research, development and
innovation.
In addition to the pricing of Triage Plus, we have
delivered significant advances in driving revenue
generation with favourable policy decisions from
commercial payers in the US and the adoption
of clinical pathways by healthcare payers in
Singapore and Australia.
Our research, development and innovation
activities have been re-phased and prioritized to
preserve our capital, but we have still advanced
our next generation of products, Triage Plus and
Surveillance Plus.
While kit-based IVD development is currently
paused, when completed, this innovation is the
major milestone needed for commercialization in
international markets by allowing authorized Lab
Partners to run our tests in their own lab in any
geography.
Peter sets out these developments, and the
opportunities they create, in greater detail in his
report.
CHAIRMAN’S REPORT
2,3
Unaudited
7
CHAIRMAN’S REPORT
OUTLOOK
Pacific Edge finished the year in a materially
stronger strategic position than it entered it. The
long-term opportunity ahead for Cxbladder has
been reinforced by the quality of the company's
clinical evidence, the strength of support
expressed by clinicians and the broader urological
community, the growing recognition from
commercial payers, the early wins in APAC and
now the draft LCD.
In the new financial year, we are looking forward
to seeing this support rewarded with a return to
growth and delivery on the significant potential we
see for the company.
I want to thank my fellow directors, the Pacific
Edge team and our shareholders, for your support,
your continued commitment to the company and
to realizing the significant patient and healthcare
benefits Cxbladder offers.
I also want to thank the clinical community for
their commitment and advocacy focused on these
outcomes. We understand your efforts are founded
on evidence demonstrating the clinical validity
and clinical utility of Cxbladder and it is why we
continue to place the generation of this evidence
at the heart of our operations.
We meanwhile look forward to updating
shareholders on our progress in our quarterly
shareholder updates and at the Annual
Shareholder Meeting.
Yours sincerely,
Simon Flood
Chairman
8
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
CHIEF EXECUTIVE'S REPORT
Dear Shareholders,
Over the last year Pacific Edge completed the
foundations necessary to grow our hematuria
business. We were delighted with the reward for
these efforts that came after balance date with the
publication of the draft Local Coverage Determination
(LCD) ‘Urine-based Biomarkers in Patients with
Microhematuria’ (DL40378).
We create value in three strategic pillars: i) driving the
adoption, retention and revenue generation for our
tests; ii) developing the evidence with the frameworks
of analytical and clinical validity, and clinical utility
sufficient to drive change in clinical practice,
association guidelines and medical policy, and iii)
research, development and innovation.
The draft LCD is a key milestone for the second of
these pillars, but we have made significant strides
across all three of them, all of which support our
confidence for the year ahead.
ADOPTION RETENTION AND REVENUE
GENERATION
As Simon set out in his report, the uncertainty over
Medicare reimbursement weighed significantly on
test volumes and our financial performance. However,
this belies foundational achievements that give us
confidence in a return to growth, but with a focus on
profitability.
A VALIDATED STRATEGY
CREATING SIGNIFICANT VALUE
“FY26 was an
unequivocal
validation of our
strategy that puts
generation of clinical
evidence at the heart
of value creation.”
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
9
CHIEF EXECUTIVE'S REPORT
1
Lotan Y, Daneshmand S, Shore N, Black P, Scarpato KP, Patel A, Lough T, Shoskes DA, Raman JD. A Multicenter Prospective Randomized Controlled
Trial Comparing Cxbladder Triage to Cystoscopy in Patients With Microhematuria. The Safe Testing of Risk for Asymptomatic Microhematuria Trial. J Urol
2024. doi: 10.1097/JU.0000000000003991
Two key achievements during the year — built
on our groundbreaking STRATA study
1
and the
inclusion of Cxbladder Triage in the AUA/SUFU
Microhematuria Guideline — were the third-party
validation of Cxbladder Triage by ECRI in April
2025 and Avalon Healthcare Systems in December
2025. These assessments are important for driving
commercial payer policy for our tests, providing
these payers with clear direction regarding the
clinical utility of the tests and appropriate language
for medical policy.
Coupled with a final effective LCD, positive
assessment from ECRI and Avalon will remove
a key reason for commercial payers to deny
reimbursement, while strengthening our appeals
strategy against any denials.
Ahead of the publication of the draft LCD, we
saw momentum build among US commercial
payers thanks to the support of these third parties.
Sentara in Virginia and the Blue Cross Blue Shield
plans in North Carolina, South Carolina and Kansas
City Missouri, collectively covering 5.5 million
lives, included Cxbladder Triage in medical policy.
Separately, and a further endorsement of our
evidence, Highmark, an insurer covering 7 million
lives, adopted positive policy for Cxbladder Monitor
in bladder cancer surveillance.
The inclusion of Triage Plus in the LCD gives us the
opportunity to progressively phase our customers
over to the higher performing and higher margin
test based on demand. Triage Plus has clinical
utility in broader patient indications, i.e. all
hematuria patients (see discussion below), not just
intermediate risk microhematuria patients, while
continuing to deliver substantial cost-benefits for
healthcare systems and payers.
We are now introducing new protocols into our
US sales team to set a clear patient pathway
for the use of Cxbladder that is tightly focused
on intermediate risk patients, thereby doing our
utmost to ensure we are reimbursed for every
test. Our goal is for our tests to be administered
to all eligible patients before a specialist urological
appointment, thereby ensuring patients and health
systems extract the full clinical and economic value
our tests offer.
Outside the US, Pacific Edge continues to expand
into new markets. Singapore General Hospital
adopted clinical pathways incorporating Triage,
Triage Plus and Monitor marking the first pathway
implementation for Triage Plus in Southeast Asia. In
July we are holding presentations to urologists to
educate them in the pathway and drive adoption
within the system. Townsville University Hospital
also began clinical use of Triage Plus and Monitor
under nurse-led protocols for hematuria evaluation
and surveillance.
EVIDENCE COVERAGE AND GUIDELINES
FY26 delivered further validation of our strategy
to put the generation of the highest quality clinical
evidence at the heart of value creation.
This was most clearly highlighted at the expert
Contractor Advisory Committee (CAC) panel
Novitas convened ahead of issuing the draft LCD.
At the meeting the participants regularly cited
Cxbladder publications as they established the
evidence-based mandate for the coverage of urine-
based biomarkers.
Evidence published during the year supports the
use of Cxbladder Triage Plus in both ‘high risk’
and ‘intermediate risk’ microhematuria patients.
It formed the basis of our comments on the LCD
during the consultation period, which closed
shortly before publication of our annual report.
We expect to make similar arguments to the AUA
guideline committee when it considers the next
revision of the guideline in 2027.
We are also focused on publishing our LOBSTER
study (in early 2027), which is expected to clinically
validate Cxbladder Surveillance Plus.
RESEARCH, DEVELOPMENT AND
INNOVATION
Our research, development and innovation efforts
continue to drive significant value in our business.
Our next generation products are multi-modal - in
the case of Triage Plus it combines the signals from
DNA and RNA to create a better performing test
10
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
CHIEF EXECUTIVE'S REPORT
2
ESNVs are single nucleotide variants
3
Non-muscle invasive bladder cancer
4
TURBT is a transurethral resection of a bladder tumor – the surgery required to remove bladder cancer tumors.
5
BCG is a bacterium called Bacillus Calmette-Guérin that stimulates an immune response that targets cancer cells
6
In vitro diagnostic products.
7
Lyophilization is a dehydration process used to preserve perishable materials or make them easier to transport
that underpins its superior clinical performance,
patient experience and healthcare system savings.
In the case of Surveillance Plus, it combines
multiple DNA signals, including SNVs
2
, methylation
status, and fusion mutations to create a better
performing test that is also more resilient in the
face of inflammation and inhibitory factors, which
are common among NMIBC
3
patients.
Importantly success in our pricing strategy for these
next generation tests substantially improves the unit
economics of Pacific Edge. Triage Plus has already
been priced at US$1,328/test, and we are targeting
CPT-PLA coding submission for Surveillance Plus
in December 2026 with claim-by-claim revenue
expected after 1 July 2027. Our goal is to achieve
claim-by-claim reimbursement with provisional
pricing by Novitas at US$1,800, while we seek
a crosswalk price to a test already priced in the
Clinical Lab Fee Schedule at US$1,800 during FY28.
Unpublished internal data on Surveillance Plus
shows superior performance compared to
Cxbladder Monitor, and similar to Triage Plus,
Surveillance Plus can also be used in a broader
range of patients (i.e. at time points closer to prior
interventions like TURBT
4
, BCG
5
or cystoscopy),
and does not include clinical factors in its
algorithm.
Finally, while further development of a kit-based
Triage Plus IVD
6
is currently paused, we have a
working prototype that has been simplified for
use in any laboratory on generic equipment.
Lyophilized
7
by design, Triage Plus IVD requires
concordance studies, validation studies and
algorithmic validation to meet the clinical
performance and regulatory requirements for
market access. Commercialization will require
initiatives in IVD-compliant manufacturing/supply,
software development and technology transfer.
Once these steps are completed, authorized
Lab Partners will be able to run our tests in their
own lab in any geography, providing improved
turnaround times, patient experience and local
insurance/reimbursement opportunities through an
international market access program.
OUTLOOK
Supported by the equity raised in May and the draft
LCD, our team — now stronger after several years of
adversity — are focused on achieving the company's
long-standing potential. We are moving to entrench
our first-mover advantage in urine-based biomarker
diagnostics and leverage the moat created by our
portfolio of evidence, our ‘Grade A’ recommendation
in the AUA guideline and the draft LCD from Novitas
to drive adoption of our tests.
Commercial execution is focused on the unit
economics of operating our sales team and
demonstrating a clear path to profitability.
Importantly this will include implementing clinical
pathways backed by Electronic Medical Records
(EMR) integrations at institutions qualified for
testing volume and possessing the capacity to
implement them. These initiatives will streamline
test ordering and results delivery and improve the
customer experience, cementing our tests as the
standard of care.
We are confident that increasing recognition in
medical policy by commercial payers, the nearing
profitability in APAC, and our leaner operating
model set the foundations for an excellent FY27.
I want to thank the Pacific Edge team and our
shareholders for their commitment and ongoing
support for the company.
Yours sincerely,
Dr Peter Meintjes
Chief Executive Officer
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
11
STRATEGY
OUR PEOPLE
EXCELLENT PATIENT EXPERIENCE
AND ACCURATE RESULTS
OUR PROCESSES
EARLY DETECTION AND
CLINICALLY ACTIONABLE CARE
OUR IP, KNOWLEDGE
AND EXPERIENCE
INNOVATION PIPELINE FOR
CLINICAL APPLICATIONS
OUR CLINICAL STUDIES
PARTNER SITES
INCLUSIVE WORKPLACE
DRIVEN BY OUTCOMES
OUR INVESTORS
INCREASED LONG-TERM
SHAREHOLDER VALUE
EVIDENCE,
COVERAGE AND
GUIDELINES
INPUTSOUTPUTS
A VALUES-DRIVEN, DIVERSE, RESULTS-FOCUSED CULTURE
SCALABLE PROCESSES, TRAINING & QUALITY SYSTEMS, CONTINUOUS IMPROVEMENT
DIGITALIZED ARCHITECTURE, AUTOMATED OPERATIONS, REAL-TIME ANALYSIS
ADOPTION,
RETENTION AND
REVENUE
GENERATION
RESEARCH AND
INNOVATION
IMPROVING SOCIAL OUTCOMES AND CREATING
SHAREHOLDER VALUE
Pacific Edge is focused on improving people’s lives and patient outcomes by providing
leading solutions for the early detection and management of bladder cancer. We are
delivering on this goal and driving long-term shareholder value by building on our strong
foundations and focusing on three strategic pillars.
VALUE CREATION THROUGH THREE PILLARS
ADOPTION,
RETENTION AND
REVENUE
GENERATION
ADOPTION, RETENTION AND REVENUE GENERATION
The short-term driver of our performance is to generate revenue by accelerating the
adoption of Cxbladder as the standard of care with clinicians, healthcare providers, and
funders and retaining those customers and clinicians who understand its value.
FY26 Achievements
• Total Laboratory Throughput of 24,190 Cxbladder tests, with commercial tests of
18,783, though lower than FY25, reflecting the challenges we faced following the loss
of Medicare coverage from April 2025 and cost containment measures which reduced
the size of the US sales team
• Volumes supported by growth at the Southern California Permanente Medical Group
and growth in the APAC region
• Focused our commercial operations on selling the value of clinical pathways with
Triage and Triage Plus for intermediate risk microhematuria patients to urology
practices and integrated delivery networks
12
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
STRATEGY
• Asia Pacific expansion continued with new clinical pathways implemented at Singapore
General Hospital and Townsville University Hospital, including the first clinical pathway
adoptions of Triage Plus in Asia and Australia
• Triage Plus established a Medicare price of US$1,328 per test, a 75% premium to the
US$760 price for legacy products, improving the unit economics of operating the sales
team and accelerating the path to profitability
EVIDENCE COVERAGE AND GUIDELINES
The medium-term driver of our performance is to enhance our clinical evidence portfolio
and engage with the clinical community on the value of our tests within the frameworks of
Analytical Validity, Clinical Validity, and Clinical Utility, the end points required for coverage
decisions and guideline inclusion.
FY26 Achievements
• Novitas, post balance date, published the draft Local Coverage Determination ‘Urine-
based Biomarkers in Patients with Microhematuria’ (DL40378) proposing hematuria
evaluation as a covered Medicare benefit for the first time and proposing coverage
only for Cxbladder Triage and Triage Plus
• Novitas confirmed, post balance date, that Pacific Edge can commence claim-by-claim
reimbursement for intermediate risk microhematuria patients in line with the draft LCD
• Commercial payer momentum strengthened with positive medical policy for
Cxbladder Triage adopted by Sentara and BCBS plans in North Carolina, South
Carolina and Kansas City Missouri, collectively covering 5.2 million lives
• Positive medical policy for Cxbladder Monitor was adopted by Highmark, covering
7 million lives
• Pacific Edge strengthened its strategic moat with the development of new evidence
including the publication of the DRIVE
1
study, analytical validation of Triage Plus. This
evidence was supported by the publication of a Kaiser Permanente real-world clinical
utility study of Triage
2
RESEARCH AND DEVELOPMENT
To drive long-term growth, we invest in technology and product innovation to maintain our
leadership position in bladder cancer diagnostics.
FY26 Achievements
• Triage Plus was included in the draft LCD establishing a pathway for the higher performing
and higher margin test to progressively replace hematuria volume based on demand and
validating our continued investment in product innovation
• We continued development of Cxbladder Surveillance Plus, the next generation test for the
surveillance of bladder cancer recurrence
• We advanced the LOBSTER study, which is expected to clinically validate the Surveillance
Plus and further validate Monitor, and we are targeting coding and provisional pricing at
US$1,800 for Surveillance Plus and claim-by-claim reimbursement by the middle of next year
• We continued longer-term product simplifcation, which is a further step towards a kitted
IVD, which enables decentralized international deployment of our intellectual property
EVIDENCE,
COVERAGE AND
GUIDELINES
RESEARCH AND
INNOVATION
1
Savage SJ, Ercole CE, Hemstreet G, et al. Diagnostic performance of Cxbladder Triage Plus for the identification and stratification of patients at risk for
urothelial carcinoma: The multicenter, prospective, observational DRIVE study. Urol Oncol. 2026;44(1):65.e13-65.e20. doi:10.1016/j.urolonc.2025.10.008
2
Filson CP, Slezak JM, Luong TQ, Aboushwareb T, Loo RK. Real-World Utility of Cxbladder Triage for Patients with Microhematuria: A Matched Cohort
Study. Urol Pract. 0(0). doi:10.1097/UPJ.0000000000000972
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
13
UNITED STATES
EVIDENCE-LED STEPS TOWARDS
MEDICARE COVERAGE
The draft Local Coverage Determination — ‘Urine-based Biomarkers in Patients with
Microhematuria’ (DL40378) — is a significant step toward restoring reimbursement certainty in
Pacific Edge’s largest market. For shareholders, it supports renewed US growth, strengthens the
commercial case for the next generation test Cxbladder Triage Plus, and - with the test priced at
a premium to our legacy tests - provides a clearer pathway to profitability.
The year began with the company focused on leveraging the AUA
Guideline, the STRATA
1
study and its broader evidence portfolio to
support reconsideration of the Medicare non-coverage determination.
Early engagement with Novitas was encouraging, with the Medicare
Administrative Contractor acknowledging the relevance of the new
guideline and the clinical utility that Cxbladder could deliver to physicians,
patients and healthcare payers.
As the year progressed, Pacific Edge strengthened its evidence portfolio
with the publication of analytical validation of Triage Plus and the DRIVE
2
study (clinical validation of Triage Plus). Together these publications
broadened the case for a hematuria evaluation policy that included
the use of the next generation test on ‘high risk’ patients as well as the
‘intermediate risk’ patients the AUA identified as eligible for testing using
the legacy test.
Our confidence that Novitas would reverse its non-coverage of Cxbladder
got a significant boost in September, with the announcement that the
organization would convene a Contractor Advisory Committee (CAC), a
move generally understood as a precursor to policy change.
In February 2026 the CAC unequivocally established an evidenced-based
mandate for change, with experts regularly citing Pacific Edge’s evidence
to justify their support for improving patient access to non-invasive testing.
In May we were rewarded with the draft LCD that stated: “Use of validated
multi-analyte [urine based biomarkers] may be reasonable and necessary
to support risk-stratification in appropriately counselled, intermediate-
risk patients with [microhematuria] who are considering deferral of
cystoscopy.”
Our attention then turned to using the notice and comment process in
June to highlight that evidence published during the year supported
coverage for ‘high risk’ microhematuria patients as well as ‘intermediate
risk’ included in the draft LCD. We noted that this evidence had not been
available to the AUA when it revised the hematuria guideline.
We expect Novitas to respond to comments and to publish a final LCD
before the end of the year, with the policy becoming effective 45 days
after that. Novitas also has the option to withdraw the draft LCD (within
365 days of the publication of the draft), but we see this as an unlikely
outcome.
3
US total laboratory
throughput, 21.4%
on FY25 following
Medicare non-coverage
determination
18,784
tests
US operating revenue,
53% on FY25
$9.5
million
1
Lotan Y, Daneshmand S, Shore N, Black P, Scarpato KP, Patel A, Lough T, Shoskes DA, Raman JD. A Multicenter Prospective Randomized Controlled
Trial Comparing Cxbladder Triage to Cystoscopy in Patients With Microhematuria. The Safe Testing of Risk for Asymptomatic Microhematuria Trial. J Urol
2024. doi: 10.1097/JU.0000000000003991
2
Savage SJ, Ercole CE, Hemstreet G, et al. Diagnostic performance of Cxbladder Triage Plus for the identification and stratification of patients at risk for
urothelial carcinoma: The multicenter, prospective, observational DRIVE study. Urol Oncol. 2026;44(1):65.e13-65.e20. doi:10.1016/j.urolonc.2025.10.008
3
Novitas controls the timeline for the draft LCD
14
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
UNITED STATES
“Use of validated multi-
analyte UBBs may
be reasonable and
necessary to support
risk-stratification in
appropriately counselled,
intermediate-risk patients
with [microhematuria]
who are considering
deferral of cystoscopy.”
Draft LCD: ‘Urine-based Biomarkers
in Patients with Microhematuria’
(DL40378)
MILESTONES ON THE MEDICARE JOURNEY
Feb 2025
Cxbladder Triage included in AUA Microhematuria
Guideline with a ‘Grade A’ evidence rating
Apr 2025
Medicare non-coverage under L39365 ‘Genetic testing
in Oncology: Specific Tests’ becomes effective
May 2025
Pacific Edge submits reconsideration request
supported by STRATA and the AUA Guideline
Jul 2025
Triage Plus analytical validation published
Sep 2025
Novitas announces Contractor Advisory
Committee for urine-based biomarkers
Oct 2025
DRIVE study accepted/published, supporting
clinical validity of Triage Plus
Nov 2025
Pacific Edge submits new LCD request including
Triage Plus evidence
Jan 2026
Kaiser real-world utility study added to the
evidence package
Feb 2026
Novitas convenes CAC; panelists express strong
support for Cxbladder evidence
May 2026
Draft LCD DL40378 published, proposing
Medicare coverage for Cxbladder Triage and
Triage Plus
Jun 2026
Novitas open meeting, notice and comment closes
July 2026 to Dec 2026
Final effective coverage expected, subject to
Novitas’ process
Hershey Center for Applied Research, Pennsylvania
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
15
1
https://www.census.gov/library/publications/2025/demo/p60-288.html
UNITED STATES
BUILDING US COMMERCIAL PAYER MOMENTUM
The US commercial payer market – representing a population of more than 223 million
1
people
– is more than three times the potential market of those covered by Medicare. Final-effective
Medicare coverage should see an acceleration in adoption by these payers in the coming year.
Our strategy to drive adoption of Cxbladder by US commercial payers – seen as a bigger challenge than
Medicare – follows a similar strategy to the one we are using to gain coverage from the US national insurer:
turning clinical evidence into medical policy.
The inclusion of Cxbladder Triage in the AUA Microhematuria Guideline provided a clear evidence-based
rationale that commercial payers could not ignore and delivered a significant lift to our strategy to tap this
segment of the US healthcare market.
Later in the year the guideline was reinforced by positive assessments from third-party organizations that
commercial payers use to inform coverage decisions. ECRI, the Emergency Care Research Institute, gave
Cxbladder Triage an exceptional 4/5 rating. Avalon Healthcare Systems, a diagnostic intelligence provider
used by health plans and providers supporting more than 44 million US lives, followed in December with
its endorsement. These assessments matter because they provide payers with independent, evidence-
based templates for medical policy, reducing the burden on each payer to assess the clinical case from first
principles.
That strategy began to convert into positive policy outcomes
during the year. Blue Cross Blue Shield plans in North Carolina
and South Carolina adopted positive medical policy for Cxbladder
Triage. After balance date, further progress was made with positive
policy for Cxbladder Triage adopted by Sentara and the BCBS plan
in Kansas City Missouri. Separately, Highmark adopted policy for
Cxbladder Monitor for surveillance of cancer recurrence; it covers a
population of around 7 million.
Final Medicare coverage is expected to provide a further catalyst
for commercial payer adoption. A positive LCD would remove a
key reason for reimbursement denial, provide policy language
that commercial payers can adopt, strengthen appeal pathways,
and support the use of state biomarker laws requiring coverage of
Medicare-approved tests.
Across all payers we are focused on the unit economics of our
sales force — ensuring we have a clear path to profitability in all
the territories where we operate — and improving customers’
experience. This includes implementing clinical pathways linked
closely to policy, thereby limiting claims denials and the associated
administrative burden. At institutions that are likely to produce
large testing volumes, we will also seek to implement integrations
with their Electronic Medical Records (EMR) systems to streamline
test ordering and results delivery, thereby cementing our tests as
the standard of care.
“...the guideline
was reinforced
by positive
assessments
from third-party
organizations
that commercial
payers use to
inform coverage
decisions.”
16
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
ASIA PACIFIC
BUILDING ASIA-PACIFIC ADOPTION FROM A STRONG
NEW ZEALAND BASE
Pacific Edge continued to consolidate its established position in New Zealand while building
commercial momentum in Australia and Asia. New clinical pathway adoptions in Singapore
and Australia demonstrate growing recognition of Cxbladder’s clinical and economic value
and provide important reference points for broader regional growth.
Pacific Edge’s Asia Pacific strategy is focused on deepening adoption in established markets, expanding
access in new jurisdictions, and preparing the business for longer-term growth through local partnerships
and future kit-based deployment.
In New Zealand, Cxbladder remains well established, with around 70% of the population having access to
testing. Our focus is now on building a national hematuria evaluation pathway with Health New Zealand
Te Whatu Ora, supporting greater consistency of care and improved healthcare equity for New Zealanders,
regardless of where they live.
In Asia, Pacific Edge is building a network of laboratory and distribution partners to support in-market
promotion of its testing services. During FY26, we processed commercial samples from seven markets,
either directly or through distributor and laboratory partners. The implementation of a clinical pathway at
Singapore General Hospital (SGH) in March 2026 was a significant milestone. As Singapore’s largest and
oldest hospital, and a leading tertiary institution, SGH provides an important exemplar for the adoption of
advanced genomic testing across Southeast Asia.
In Australia, our strategy is focused on contracting directly with
hospitals that have evaluated Cxbladder and can integrate our
tests into clinical workflows. During the year, Townsville University
Hospital began clinical use of Cxbladder Triage Plus and Cxbladder
Monitor for hematuria evaluation and surveillance. Importantly,
Townsville implemented a nurse-led ordering protocol, highlighting
the operational efficiency and accessibility advantages of
Cxbladder in everyday clinical practice.
Together with the pathway already established at Northern
Hospital, part of Northern Health in Melbourne, these developments
show growing regional confidence in Cxbladder. Longer term, we
expect kit-based IVD development to further support decentralized
testing through partner laboratories in Australia and Asia.
APAC total laboratory
throughput,
7.9% on FY25
5,406
tests
APAC operating revenue,
11.5% on FY25
$2.0
million
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
17
SUSTAINABILITY
18
SUSTAINABILITY, GOVERNANCE AND OVERSIGHT
Accountability for the implementation of Pacific Edge’s sustainability goals sits with the CEO. Oversight
of the execution of our sustainability strategy, including the ESG program and compliance reporting, is
delegated to the Sustainability Committee (SC).
The SC is chaired by the Chief Financial Officer (CFO) and comprises senior leaders and key functional
representatives from New Zealand and the US. It meets at least quarterly to monitor progress and
performance, and reports through to the Audit and Risk Committee (ARC). It also meets regularly with the
ARC to ensure strong board oversight of progress.
SUSTAINABILITY
PACIFIC EDGE IS FOUNDED ON IMPROVING SOCIAL OUTCOMES
Pacific Edge is focused on improving people’s lives and patient outcomes by providing
leading solutions for the early detection and management of bladder cancer.
We are delivering on our purpose, and driving long-term shareholder value, by building strong foundations
and focusing on three strategic areas as we set out on pages 19 to 37 of this report.
We are working hard to embed sustainability considerations into our strategic priorities and decision-
making. The table below shows the areas we have identified as important to driving better outcomes for all
our stakeholders.
WHERE WE ARE FOCUSING OUR EFFORTS
OUR SOCIAL IMPACTOUR ENVIRONMENTAL IMPACTOUR GOVERNANCE PRACTICES
Improving healthcare access,
quality of care and patient
outcomes
• Extending the adoption of
our tests by leveraging our
inclusion in the American
Urological Association (AUA)
microhematuria guidelines
Product environmental
stewardship
• Sustainable sourcing
• Using resources efficiently and
responsibly
Risk management
• Strong risk, governance and
management practices
• Data security
• Operational resilience
An inclusive, engaged and safe
workforce
• Employee engagement
• Career pathways and
development
• Gender equality
• Safety and wellbeing
Emissions reduction
• Energy efficiency
• Drving efficencies in business
travel
• Reduced laboratory emissions
from running Cxbladder tests
• Improved logistics efficiency
Operational quality and
compliance
• Product safety
• Quality manufacturing
• Efficiency and effectiveness
Responsible supply chain
• Working with suppliers to
ensure they have ethical codes
of conduct (including the
prevention of modern slavery)
Climate-related disclosures
• We are committed to giving our
stakeholders clear visibility of our
climate-related matters by:
- measuring and reporting scope
1, 2 and 3 emissions against our
5-year target; and
- continuing to disclose how our
Emissions Reduction Plan is
intending to drive us toward our
5-year target
Engaging our stakeholders
• Meeting our commitments as an
employer
• Meeting our customer needs
• Creating shareholder value
Supporting our communities
• Support for local initiatives and
events
SUSTAINABILITY
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
19
SUSTAINABILITY
FY26 PROGRESS AND HIGHLIGHTS
We are pleased to report solid progress towards our sustainability goals over the past year,
with our key achievements highlighted below.
OUR SOCIAL IMPACTOUR ENVIRONMENTAL IMPACTOUR GOVERNANCE PRACTICES
Improving healthcare access,
quality of care and patient
outcomes
• Delivered 24,190 tests to over
10 countries
Product environmental
stewardship
• Key projects underway, aimed at
reducing supply chain footprint
and reducing use of chemicals
and single-use plastics
Risk management
• FMEA
1
risk management
framework embedded across
the business with routine
reporting
• Implementation of a Tax
Governance Policy to facilitate
the efficient management of
Pacific Edge’s tax obligations in
line with our low-risk appetite,
including development of a Tax
Risk Register that is presented
to the Board annually
• Reconfirmed our assessment
and reporting of climate related
risks
An inclusive, engaged and safe
workforce
• Strong engagement from our
people. In FY26 our staff survey
showed:
-
96% of respondents
understood how their role
relates to Pacific Edge’s
Purpose, Values and Strategy
-
91% of respondents felt
our current ways of
working support effective
communication, collaboration
and delivery
• No lost time to injuries
Emissions reduction
• Third greenhouse gas
emission inventory completed
showing a 8.8% increase in
carbon intensity per test
compared to FY24 (base
year) reflecting impact of
Medicare non-coverage on sales
force dynamics. We remain
committed to our target of
a 20% reduction by 31 March
2029
Operational quality and
compliance
• Further evolved our operational,
quality and compliance
framework
• Pacific Edge has successfully
managed all external
compliance audits in all areas of
the business
Responsible supply chain
• Management of supplier
relationships through
responsible supply chain model
developed in FY25
• Working with major suppliers to
ensure they include conditions
around modern slavery and
human rights
Climate-related disclosures
• We are committed to giving our
stakeholders clear visibility of
our climate-related matters by:
- measuring and reporting
scope 1, 2 and 3 emissions
against our 5-year target; and
- continuing to disclose how our
Emissions Reduction Plan is
intending to drive us toward
our 5-year target
• Pacific Edge’s greenhouse gas
emissions inventory expanded
to include emissions from use of
data centres to support cloud-
based infrastructure
1
FMEA: Failure Mode and Effects Analysis
20
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
SUSTAINABILITY
OUR SOCIAL IMPACTOUR ENVIRONMENTAL IMPACTOUR GOVERNANCE PRACTICES
Supporting our communities
• Sponsored bladder cancer
patient advocacy organisations
to empower patients and build
awareness of the disease
• The capability to deliver patient
in home sampling provides
access to healthcare in remote
and lower socio-economic areas
• Four internship placements
provided real world experience
for University of Otago students
Climate risk register
• Our Sustainability Committee
continues to maintain a Climate
Risk Register that focuses
on potential climate risks
and mitigative actions. This
is reported through to the
Business risk register based on
the FMEA risk management
framework
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
21
OUR SOCIAL IMPACT
IMPROVING HEALTHCARE ACCESS, QUALITY OF CARE, AND PATIENT OUTCOMES
Cxbladder delivers actionable information that can advance the standard of care that
physicians offer, enhancing the patient’s experience and quality of life to support improved
healthcare outcomes, while helping to reduce the total cost of care. Our in-home sampling
kits improve healthcare equity by bringing the benefits of Cxbladder to poorer and rural
communities that face barriers to accessing specialist care.
Ultimately our success in achieving these goals is best measured by the adoption of our tests. Over the
last year commercial volumes have fallen again, well below the potential we see for the tests, with the fall
principally reflecting the reduced reach of our smaller sales force as we moved to preserve capital amid
uncertainty over continued Medicare coverage of our tests.
However we are now looking towards to FY27 confident that we can reverse these trends after Novitas,
(after balance date) published the draft Local Coverage Determination (LCD): ‘Urine-based Biomarkers in
Patients with Microhematuria’ (DL40378) proposing coverage for Triage and Triage Plus. This provides us
with a strong foundation from which to grow the commercial success of the business.
The draft LCD reflects the strength of Pacific Edge’s value
creation strategy that is founded on generating the compelling
clinical evidence required to drive behavior change in physicians,
a program that is founded on the frameworks of Analytical
Validity, Clinical Validity and Clinical Utility on defined patient
populations, with statistically significant sample sizes and
measuring the appropriate endpoints that drive change in
medical policy. Evidence published during the year included
further analytical validation of Triage Plus and the DRIVE study
1
,
which demonstrated the clinical validity of Triage Plus. Critically
our efforts have been supported by independent investigators,
the most notable of which was the publication of a real-world
utility study by Kaiser Permanente
2
, which added large-scale
comparative evidence supporting the clinical utility of Cxbladder
Triage in patients with microhematuria.
The economic and social benefits of our tests are well established
by studies in New Zealand and Pacific Edge’s Modelling, the latter
showing that Cxbladder used in hematuria evaluation could save
US healthcare providers approximately US$500 per patient by
avoiding unnecessary procedures
3
.
Further detail on our clinical evidence can be found on our
website.
1
Lotan et al. (2024). A Multicenter Prospective Randomized Controlled Trial Comparing Cxbladder Triage to Cystoscopy in Patients With Microhematuria.
The Safe Testing of Risk for Asymptomatic Microhematuria Trial. The Journal of Urology Vol 212 1-8 Jul 2024.
2
Loo R.K., et al (2025) Clinical Utility of a Urine Biomarker (Cxbladder Triage) Compared to a Standard of Care for Microscopic Hematuria Evaluations in a
Large Independent Delivery Network. Abstract submitted to the AUA 2025 meeting.
3
Tyson et al. (2023). Budgetary Impact of Including the Urinary Genomic Marker Cxbladder Detect in the Evaluation of Microhematuria Patients. Urology
practice, 11(1), 54–60. https://doi.org/10.1097/UPJ.0000000000000489
SUSTAINABILITY
Cxbladder
can spare up
to 1.5 million
patients in
the US per
year from
cystoscopy.
22
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
1
Tyson et al (2024) Budgetary Impact of Including the Urinary Genomic Marker Cxbladder Detect in the Evaluation of Microhematuria Patients -
PubMed (PMID: 37914255)
CXBLADDER DELIVERS CLINICAL UTILITY, PATIENT SATISFACTION AND ECONOMIC
VALUE
Cxbladder offers improvement over the standard of care, avoids unnecessary procedures
and streamlines workflow when used to intensify or de-intensify hematuria evaluation or
in the surveillance for the recurrence of bladder cancer. For healthcare payers, Cxbladder
offers substantial total cost savings per patient
1
.
CANCER INCIDENCE IN MICROHEMATURIA PATIENTS
Incidence of bladder cancer in microhematuria populations is 5%
CYSTOSCOPIES SAFELY AVOIDED USING CXBLADDER
With Cxbladder, 78% of patients can avoid cystoscopy,
22% receive cystoscopy, 5 cancers found
Cytoscopy
No cancer
No cytoscopy
No cancer
Cytoscopy
Cancer
Cytoscopy
No cancer
Cytoscopy
Cancer
SUSTAINABILITY
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
23
AN INCLUSIVE, ENGAGED WORKFORCE
The oncology diagnostics marketplace is highly competitive, and our
continued success depends on attracting, retaining and developing high
caliber talent. A strong attraction and recruitment strategy is essential to
securing the expertise needed to support ongoing growth.
We are committed to hiring high-quality, experienced leaders and providing all
employees with development opportunities that support personal growth and
business success. This includes capability-building initiatives designed to help our
people to do great work and progress in their careers.
We actively encourage diversity and recognize the benefits it brings to our business.
We appreciate the wide range of backgrounds and experiences of our people and
value the choices they have made to be part of our team.
Our approach to recruitment, performance and reward is overseen by the Board’s
People and Culture Committee, with support from our Global Head of People &
Culture, Executive Team, people leaders and external consultants.
EMPLOYEE ENGAGEMENT
As a purpose-led organization, we are committed to building an inclusive, values-
driven culture where all our people feel supported to grow, contribute and succeed.
This culture is essential to attracting and retaining top talent, as well as fostering
wellbeing and long-term engagement.
We work hard to ensure our employees connect with our organizational purpose,
values and strategic priorities, ensuring they understand how their roles contribute
to our broader success. We measure success in achieving this through our key
metrics of employee engagement and turnover. In FY26 our employee engagement
survey found 96% of respondents understood how their role relates to Pacific Edge’s
Purpose, Values and Strategy and 91% of respondents felt our current ways of
working support effective communication, collaboration and delivery.
Our values guide our daily actions and are central to how we work.
Our Values
PUT PATIENTS
FIRST IN EVERYTHING
WE DO
ARE COMMITTED TO
CUSTOMER SUCCESS
ARE GUIDED BY
DATA & EVIDENCE
WE CELEBRATE
SUCCESSES, LARGE
AND SMALL
SUPPORT OUR
TEAMMATES
ARE TRANSPARENT
AND TRUSTING
SUSTAINABILITY
24
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
25
BUILDING OUR CAPABILITY
Developing skills and careers
We continue to provide targeted investment in our peoples’ careers and capability to support the growth
and sustainability of our business.
Our learning and development strategy is designed to help attract and retain top talent, while also ensuring
that we build the specialist skills and institutional knowledge we need to respond to a rapidly evolving
environment.
We recognize that some technical areas central to our work — such as uro-oncology, genomics, digital
innovation and clinical operations — are challenging to recruit externally. As a result, we take a proactive
approach to building these skills internally.
Educational collaboration
We continue to collaborate with educational institutions to build awareness of Pacific Edge and attract talent
into our business. Our partnership with the University of Otago is broad-ranging, including participation in
careers events and internships for STEM students.
As part of our contribution to the Medical Laboratory Sciences (MLS) faculty, we offer student placements
that provide real-world exposure to a commercial diagnostic laboratory. These placements allow
undergraduate and honours students to observe the operations of a molecular diagnostic laboratory and
complete research projects in a live laboratory environment.
We also support the assessment of student performance and create opportunities for students to connect
with practicing medical laboratory scientists — something that is rare outside of hospital or academic settings
in New Zealand.
Offering real world experience
To build a strong pipeline of future talent, we operate an internship program in partnership with
Callaghan Innovation and the University of Otago. Each year, we select interns from a variety of academic
backgrounds, experience, and skills — such as biomolecular science, clinical studies, biostatistics or
information science — to work on focused research & development projects that address real challenges
within our business.
SUSTAINABILITY
26
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Interns spend 400 hours in project teams, gaining hands-on experience in a commercial environment,
contribute fresh ideas, and learn from our teams.
These internships not only give students valuable industry experience but also open up alternative career
paths within commercial diagnostics, an option that many MLS and STEM students - who traditionally view
hospital/academic labs as their next career step - may not have considered. For Pacific Edge, the program
serves as a valuable talent pipeline.
Total Rewards
Pacific Edge’s Total Rewards framework is a key component of our strategy to attract, retain and recognize
talent. Our Total Rewards practices are overseen by the Board’s People and Culture Committee to ensure it
remains competitive and fit for purpose.
Details of our Total Rewards practices are provided in the dedicated section on pages 65 to 66 of this report.
A DIVERSE WORKPLACE
At Pacific Edge, we seek to create a culture where diversity, equity and inclusion are actively supported and
embedded in our day-to-day operations. We know that a flexible, inclusive environment not only enables our
people to grow and thrive — it also drives better business outcomes.
Our recruitment, development, talent and succession planning practices are grounded in the principles of equal
opportunity and guided by our Diversity Policy. These principles are applied at all levels of the organization.
While we hire based on capability and fit for the role, team and business, we also value diverse thinking,
backgrounds and abilities. Our recruitment and Total Rewards practices are designed to be inclusive and
free from bias, and we continuously look for ways to improve how we can attract and support a diverse
range of talent.
Pacific Edge’s gender diversity
31 March
2026
Male
(FTE)
31 March
2026
Female
(FTE)
31 March
2025
Male
(FTE)
31 March
2025
Female
(FTE)
31 March
2025
Not
Specified
(FTE)
31 March
2024
Male
(FTE)
31 March
2024
Female
(FTE)
Directors4 (67%)2 (33%)4 (67%)2 (33%)0 (0%)5 (71%)2 (29%)
Officers
*
7 (88%)1 (12%)7 (88%)1 (12%)0 (0%)8 (100%)0 (0%)
Extended leadership
team including Officers
14 (78%)4 (22%)15 (79%)4 (21%)0 (0%)14 (78%)4 (22%)
Total team55 (54%)47 (46%)58 (50%)57 (49%)1 (1%)49 (49%)51 (51%)
Figures in brackets represent the proportion of the team
* Includes the CEO
Encouraging a gender-diverse workforce
While Pacific Edge’s workforce is largely gender-balanced overall, we recognize the current under-
representation of women in senior leadership and Board roles. We continue to identify opportunities to
improve diversity at all levels of the organization, ensuring our teams reflect a wide range of perspectives
and experiences.
SUSTAINABILITY
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
27
CELEBRATING OUR DIFFERENCES
Recognizing and celebrating the differences that make us unique helps foster a shared sense of purpose
and values across the organization, as well as strengthening the culture that supports our growth and the
commitments we make to all our stakeholders.
Across our teams in New Zealand and the US, we celebrate days fundamental to our team’s diverse cultural
identities, including Waitangi, Matariki, Chinese New Year and St Patrick’s Day. These celebrations are more
than symbolic — they reflect our commitment to inclusion and shared understanding.
We also take a strong stance on mental health and inclusivity. Initiatives such as Pink Shirt Day help us
celebrate working together to stop bullying, and to reinforce inclusiveness, kindness and respect. These
events are often paired with practical initiatives, including mental health first aider training for health and
safety representatives.
FOSTERING HEALTH, SAFETY AND WELLBEING
We are committed to providing safe and healthy workplace
practices for all, and ensuring that no one is harmed at work. Our
Health and Safety Policy outlines a clear goal: to eliminate as far as
reasonably practicable, all injuries, accidents, and incidents from
the workplace.
We maintain rigorous safety practices across the business, and
require active participation from our people to ensure procedures
are clearly understood and followed. These include:
• Company-wide safety training each quarter, led by members of
our USA and NZ-based Health and Safety Committees
• Regular Toolbox Talks focused on specific safety topics
• Twice-yearly audits of our health and safety practices
• Implementation of a new real-time Health and Safety
dashboard and an on-line hazard reporting tool which provides
our team with simple, easy-to-follow processes to report
incidents and near-misses
Our health and safety activities are overseen by two internal
committees (APAC and US), both chaired by the Chief Operating
Officer. Updates are provided at every Board meeting. Further
detail is covered in the company’s governance statement in this
report.
Supporting mental health and wellbeing
We want every employee to feel supported and empowered in their role. Our mental health and wellbeing
program is a key part of this, offering the tools and environment our people need to perform at their best
and maintain their wellbeing. This year, we continued to invest in mental health initiatives, including:
• Independent employee assistance services, tracked monthly
• Training, including Mental Health Toolbox Talks
• Awareness training for health and safety committee members
• Completion of the LivingWorks ASSIST mental health program by 19 team members.
These actions reflect our long-term commitment to creating a workplace where people can thrive,
personally and professionally.
SUSTAINABILITY
“In FY26,
we are pleased
to report zero
lost time injuries
across both our
New Zealand and
US operations —
a reflection of our
commitment and
the engagement
of our people.”
28
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
STRENGTHENING SUPPLIER RELATIONSHIPS
Building on previous years’ initiatives, the Operations team has continued to implement
quality agreements and supply agreements with strategic suppliers and partners across
the network.
A program of supplier audits continues with virtual audits taking place in the US and Europe, minimizing
travel costs and carbon emissions. Quarterly reviews are held with all strategic suppliers, and we have also
launched new supplier evaluation questionnaires and quality agreements with overseas distributors. This has
led to improved communications and clarity of expectations with suppliers.
Supplier alignment with Pacific Edge’s own policies and values is very important to us. We have taken steps
to ensure that our key suppliers demonstrate respect for human rights and ethical labor practices. This
includes requiring suppliers to commit to eliminating modern slavery — such as forced labor or child labor —
and adopting appropriate human rights policies and procedures.
SUPPORTING OUR COMMUNITIES
We believe it is important to support the communities in which we live and operate. We do
this by collaborating with patient organizations at the forefront of cancer advocacy and care,
and through team participation in support of local charities and health-related initiatives
designed to fundraise and educate.
GIVING PATIENTS A VOICE AND RAISING BLADDER CANCER AWARENESS
An awareness of bladder cancer and available test options empowers patients to take a more informed and
active role in their care. To this end, we partner with leading bladder cancer advocacy organizations and
support key global advocacy events.
BEAT Bladder Cancer Australia
This year we have focused on building a relationship with BEAT Bladder Cancer Australia. BEAT is the
leading national patient body for bladder cancer patients and caregivers, and works hard to promote
awareness of the disease and its care in the community, while supporting and empowering patients. BEAT
also plays an important role educating health professionals and advocating for improved national health
outcomes. Traditionally focused on Australia, BEAT is now extending its efforts and footprint to New
Zealand. Initial partnership activity with BEAT has centered on clinician-led resources designed to introduce
Cxbladder across the BEAT patient and clinician network.
In May 2026, coinciding with Bladder Cancer Awareness Month, BEAT ran its program of Anna’s Walk
community events. The walks are designed to promote awareness of the disease while remembering those
who have been lost and giving survivors a voice. The Pacific Edge Team participated in the Wellington event.
SUSTAINABILITY
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
29
Bladder Cancer Awareness Month
Bladder Cancer Awareness Month in May is a time
for those affected by bladder cancer to stand
together and raise awareness of the disease while
working to better support its early detection,
treatment and care. In recent years our activities
in May have emphasized the importance of regular
monitoring and compliance with scheduled checks,
while raising awareness of Cxbladder as a non-
invasive bladder cancer surveillance alternative.
This year the focus was on symptoms and risk
awareness, a theme which we promoted online via
social media and website content.
As part of Bladder Cancer Awareness Month each year, our team also takes part in a range of social
initiatives. Traditionally this includes a themed dress-up and morning tea in support increased awareness.
SUPPORTING CAUSES MEANINGFUL TO OUR PEOPLE
Pacific Edge team members are encouraged to promote causes meaningful to them, across the
organization. Below are some examples of causes we have supported in the last year.
Movember
Founded in 2003, the Movember Foundation works to raise awareness of men’s health issues and to fund
related projects around the world, with a specific focus on testicular cancer, prostate cancer, mental health
and suicide prevention. To date, the Foundation has raised over NZ $1 billion globally. We support its
efforts each November, both though promoting broader awareness of the initiative and through team and
individual fundraising efforts.
Relay For Life
Each year, Pacific Edge team members join
thousands around New Zealand for the Cancer
Society’s Relay for Life. The event is always colorful
and heartfelt - a chance to come together as a
community, celebrate the lives of loved ones -
both survivors and those lost - and have fun while
fighting back against a disease that impacts the
lives of so many.
In 2026, a Pacific Edge team of over 20 staff, family
members, friends and colleagues participated in the
Dunedin event which ran for 12 hours around the
Forsyth Barr Stadium. The event raised over $260,000 in support of the Cancer Society’s supportive care
services, education programs, prevention policies, and life-saving research.
Cocoa Packs
Each year the Pacific Edge team in Hershey, Pennsylvania volunteers with Cocoa Packs, a non-profit that
provides weekly support to over 1,600 individuals via food assistance and other services aimed at enhancing
the wellbeing of local children.
Ronald McDonald House
This year the Hershey team also supported Ronald McDonald House with a pantry drive for Thanksgiving
and a toy drive for Christmas. The Ronald McDonald House in Hershey keeps families together by providing
temporary free of charge housing to out-of-town families of seriously ill children who are being treated at
Penn State Health Golisano Children’s Hospital.
SUSTAINABILITY
30
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
SUSTAINABILITY
OUR ENVIRONMENTAL IMPACT
USING OUR RESOURCES RESPONSIBLY
Our Environmentally Sustainable Procurement Policy sets out Pacific Edge’s commitment to the responsible
purchasing of materials, goods and services, including three basic principles. Prior to purchasing any goods
or services we must ensure the following:
• that the item needs to be purchased i.e. there are no other suitable items already available within the
company
• that the lifecycle impacts of the item are considered, including processes used to create it,
environmental impacts when used and what happens at the end of its life
• that relevant environmental information is provided by the supplier
This benchmark information has enabled us to develop targets and strategies to reduce carbon emissions
associated with consumables as well as the environmental impact of waste, including disposable plastics
and chemical waste. During FY26, we have further refined our approach to recording carbon emissions to
encompass further emissions sources within our value chain, with more detailed reporting now provided by
key suppliers. We describe our progress in our FY26 emissions performance summary on page 21.
CLIMATE-RELATED DISCLOSURES
Since 2024, Pacific Edge has published a Climate Report aligned with the New Zealand Climate Standards,
providing transparency on governance, climate risks and opportunities, and carbon-reduction goals and
performance.
The proposed Financial Markets Conduct Amendment Bill, announced in October 2025, will increase the
mandatory climate-reporting threshold for listed issuers from a market capitalization of $60 million to $1
billion. If enacted, Pacific Edge will no longer be a climate-reporting entity.
For the 2025–26 reporting period, the Financial Markets Authority has provided interim ‘no action’ relief for
entities below the proposed threshold. Accordingly, it will not enforce current climate-reporting obligations
for those entities in the period before the bill is passed. Pacific Edge has therefore elected to rely on that
relief, and will not publish a Climate Report aligned with the New Zealand Climate Standards for FY26.
Continued commitment to carbon reduction
While we are not producing a formal climate report this year, we will continue to give our stakeholders clear
visibility of how we’re tracking toward a low-carbon future by:
• measuring and reporting our Scope 1, 2 and 3 emissions using the best available management data
• reporting against our 5-year target of a 20% reduction in emissions intensity (GHG emissions per test
throughput) by end FY29. While absolute emissions may rise as our global footprint grows, we will stay
focused on scaling with increasing carbon efficiency
• demonstrating how our business model and Emissions Reduction Plan will drive our progress towards a
low-emissions future
• identifying, assessing and managing climate-related risks through our established risk management
framework
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
31
PROGRESSING TOWARD A LOW-EMISSIONS FUTURE
Our value chain and business model
Pacific Edge’s carbon emissions primarily result from the logistics involved with transporting Cxbladder kits
to and from collection points, as well as from travel undertaken by the sales team to service and support
clinicians. International travel between the United States and New Zealand, along with domestic travel
across target markets, also contributes significantly to Pacific Edge’s carbon emissions.
This is shown graphically in Figure 1, which describes our value chain; and Figure 2, which shows how our
carbon emissions relate to the various functions across our business.
While we acknowledge the emissions generated by our current business model, particularly through the
transportation of samples to centralized laboratories, we believe that the overall carbon footprint of the
Cxbladder diagnostic pathway is lower than the existing standard of care, which relies heavily on cystoscopy
and in-clinic procedures.
This view is supported by a 2025 study
1
carried out in collaboration with Health New Zealand Te Whatu Ora,
Waitaha Canterbury and Toitū Envirocare. The study assessed the GHG emissions impact of incorporating
Cxbladder into a revised standard of care for bladder cancer diagnosis against the existing standard of care.
The findings show that the Cxbladder diagnostic pathway can reduce emissions by 40% against the existing
standard of care, highlighting the potential for clinical innovation to help reduce emissions.
SUSTAINABILITY
TEST KIT
MANUFACTURE
PRODUCT
DISTRIBUTION
TEST KIT USE,
SAMPLES TO
LABORATORIES
LABORATORY
TESTING
INFORMATION
SHARING
EMPLOYEE AND
BUSINESS TRAVEL,
SALES & OFFICE
SUPPORT, R&D
Figure 1: Our value chain
1
Lower Greenhouse (GHG) emissions with CxBladder assessment at primary care in haematuria pathway Authors: Mark SD, Burkitt Z, Barry M,
Losco GSL Urology Department Waitaha Canterbury. Toitū Envirocare.
32
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Figure 2: Relationship between Pacific Edge emissions and key functions across the business
RESEARCH AND
DEVELOPMENT
Developing IP that
addresses unmet
clinical needs in
bladder cancer
diagnosis and
management by
delivering non-
invasive genomic
biomarker tests which
allow early detection
and clinically
actionable care.
Emissions relate
to freight and the
research laboratory in
Dunedin, NZ.
CLINICAL
EVIDENCE
Building robust
clinical evidence that
provides catalysts for
guidelines inclusion
and reimbursement.
Emissions relate to
freight of samples,
travel to study
locations, and staff
located in US, NZ and
AUS.
SALES AND
SUPPORT
95% of revenue is
generated from the
Unites States, with
Account Executives
based close to the
clinicians across the
US. Sales and support
are also based in New
Zealand, Australia
and South East Asia.
Emissions relate to
travel and support of
Account Executives.
TEST DELIVERY
Laboratories based
in Hershey, US and
Dunedin, NZ process
tests and send results.
Emissions relate
to operating the
laboratories in
Dunedin, NZ and
Hershey, US.
GENERATED BY
LABS AND OFFICES
IN DUNEDIN AND
HERSHEY
17�
GENERATED
BY EMPLOYEE
TRAVEL
68�
GENERATED BY
MOVEMENT OF
INVENTORY,
TEST KITS AND
SAMPLES
15�
SUSTAINABILITY
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
33
SUSTAINABILITY
Our emissions reduction plan
We are implementing a number of strategic initiatives aimed at positioning Pacific Edge for a low-emissions,
climate-resilient future. By focusing on greater efficiency in test result delivery and increasing the adoption
and use of Cxbladder tests, we aim to achieve both financial gains and a reduction in carbon intensity per
test. This strategic alignment ensures that capital deployment and funding decisions support our strategic
priorities.
Figure 3 below summarizes the four pillars of our emissions reduction plan, and the key initiatives under way
that will help Pacific Edge mitigate the impacts of climate change while achieving its strategic goals.
PRODUCT
SIMPLIFICATION
INITIATIVES:
●
Localised testing
(ultimate goal IVD
test kit)
●
Reduced time to
test results
●
RNA stabilisation
resulting in fewer
re-tests and sample
rejects (R&D)
TARGETS & FUTURE
ACTIONS:
●
Improved carbon
intensity per test
●
Testing closer to
patients locations
CAPITAL DEPLOYMENT:
●
Resource allocation
underpinned by
business plan and
R&D roadmap
TESTING
AUTOMATION
INITIATIVES:
●
Increased
automation of test
performance
●
Processes involving
lower use of
hazardous chemicals
and increased tests
per plate
●
Processes involving
less single use
plastics
●
Green Lab initiatives
TARGETS & FUTURE
ACTIONS:
●
Improved carbon
intensity per test
CAPITAL DEPLOYMENT:
●
Resource allocation
underpinned by
business plan and
R&D roadmap
SUPPLIER
ENGAGEMENT
INITIATIVES:
●
Supplier
diversification or
multi-site suppliers
●
Reagent
manufacture in US
●
Shipping reduction
to lower/ eliminate
the need for dry ice
●
Improved buffer
performance to
increase kit shelf life
and sample shipping
and processing
timeframes
TARGETS & FUTURE
ACTIONS:
●
Improved carbon
intensity per test
CAPITAL DEPLOYMENT:
●
Resource allocation
underpinned by
business plan and
R&D roadmap
OPERATING
EFFICIENCY
INITIATIVES:
●
Increased tests per
clinician
●
Freight efficiency,
with increased
number of samples
sent per package
●
Carbon impact
study – a tool
to demonstrate
emissions advantage
and support
increased demand
TARGETS & FUTURE
ACTIONS:
●
Improved carbon
intensity per test
●
Improved carbon
intensity per FTE
CAPITAL DEPLOYMENT:
●
Resource allocation
underpinned by
business plan and
R&D roadmap
Figure 3: Emissions reduction plan summary
34
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
FY26 EMISSIONS PERFORMANCE
FY26 was Pacific Edge’s third year of greenhouse gas (GHG) emissions measurement for our operations,
with FY24 providing the baseline for comparative analysis.
Overview of emissions
As a global cancer diagnostics company, our emissions profile is relatively small. In FY26, travel and freight
was by far the largest contributor, accounting for 74.1% of all emissions (80.8% of all emissions for FY25).
Due to the specialized nature of cancer diagnostic tests, in-person support and training remain essential
for clinicians and patients, making travel unavoidable in many instances. Most staff travel, including air
travel and business travel in non-company-owned vehicles, is attributed to our Sales team (supporting and
growing the use of Cxbladder) and Clinical Studies team (for study site visits to build our clinical evidence
portfolio).
Air freight is primarily used to transport test kit components from suppliers to our laboratories; to ship test
kits to customers; and to return samples from customers for processing. Business travel has been identified
as a key area for improving emissions efficiency.
The next largest contributor of emissions was indirect GHG emissions from consumption of purchased
electricity (Scope 2) in respect of our Dunedin and Hershey locations. Scope 1 comprises refrigerants used
for laboratory equipment, which have not required replenishment during FY26, FY25 or FY24.
FY26 climate impacts
The effects of climate change did not materially change between FY25 and FY26, and are still not materially
impacting Pacific Edge’s operations. We recognize this may change over time. The potential key climate-
related impacts that could be experienced by Pacific Edge are described in Table 1 on the following page.
SUSTAINABILITY
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
35
Table 1: Potential climate-related impacts
Area of ImpactImpact DescriptionQuantified Impact
PHYSICAL
Severe or extreme
weather events
Interrupted laboratory operations in US and New Zealand –
due to extreme weather events such as flooding, wildfires,
tornados or severe storms.
While current risk and impact is low, the frequency of events
is increasing. We are therefore preparing for a period of
time where samples cannot be processed due to loss of
electricity and/or access to the laboratories.
We are working to ensure we have either owned or
contracted access to backup power to ensure preservation
of both patient samples and research samples. If patient
samples are frozen and run at a later time, there would be
minimal revenue loss.
Revenue / Cost Impact
Both low (under $2.0m)
If research samples previously frozen are lost due to loss
of electricity, there could be a sizable impact on future
research. New samples could be obtained, but would incur
a significant cost, and there could be delays releasing new
products and publishing clinical studies to support wider
uptake of Cxbladder products.
Revenue / Cost Impact
Longer term - potential
to be high (over $5.0m)
TRANSITION
Increased supplier
costs
Increased costs - including freight and travel. Climate
change has the ability to extend delivery times (as seen
in FY24 with drought limiting container travel through the
Panama Canal) for some key components and increasing
travel costs.
The quantified impact has been assessed by determining a
10% increase on FY26 costs incurred.
Cost Impact
Low (under $2.0m)
Compliance and
reporting
Increased costs and resources dedicated to ensuring
compliance and disclosure in regard to NZCS. Additional
internal and external resources have been engaged to meet
requirements.
Cost Impact
Low (under $2.0m)
FY26 performance summary
Pacific Edge has set a 5-year target of a 20% reduction in emissions intensity (GHG emissions per test
throughput) by end FY29.
In FY25 (our first year) we achieved a 5.9% reduction in emissions intensity, lowering the total emissions per
test from 0.034 tCO2e in FY24 to 0.032 tCO2e in FY25. However, in FY26, despite our absolute emissions
being 19% down on the FY24 base, our total emissions per test increased by 8.8% against FY24 levels. This
reflects the impact of a reduced sales force being required to cover greater distances to provide equivalent
clinician coverage, whilst also being impacted by reduced test throughput due to Medicare non-coverage.
SUSTAINABILITY
36
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
SUSTAINABILITY
Further detail is provided in Table 2 below, reflecting the headwinds we faced during FY26. Nonetheless we
remain committed to the 5-year target, aiming to restore the early success of our emissions reduction plan
and reinforce that meaningful emissions reductions can be achieved by increasing our test throughput.
Table 2: Emissions performance summary
Scope
1
Emissions sourcesDescriptionFY26
(tCO
2
e)
FY25
(tCO
2
e)
FY24
(tCO
2
e)
Scope 1Direct emissions Refrigerants 0.00 0.000.00
Scope 2Indirect emissions
from imported
energy
Electricity – location-based method
131.44 128.04145.39
Scope 3Other indirect
emissions
Air travel, air freight, road freight, shipping
freight, business travel in non-company
owned vehicles, accommodation,
employee commuting, working from
home, decontamination of medical waste,
incineration of clinical waste, electricity
distributed transmission and distribution
losses, general waste, dry ice
768.60804.85963.89
TOTAL900.04932.891,109.28
Total direct emissions0.000.000.00
Total indirect emissions900.04932.891,109.28
Total gross emissions900.04932.891,109.28
Direct emissions removals0.000.000.00
Purchase emission reductions0.000.000.00
Total net emissions900.04932.891,109.28
Test throughput24,19028,89432,633
Average FTE104112113
Emissions intensity
Gross emissions / test (unit)0.0370.0320.034
Gross emissions / FTE8.658.34 9.82
Looking ahead
We expect staff air travel and business travel in non-company-owned vehicles to rise in the short to medium
term as we work to expand test throughput and fulfil the unmet need for a diagnostics tool that assists in
the detection and treatment of bladder cancer. While the increasing size of our team will likely drive higher
absolute emissions, our focus on improving sales team efficiency — specifically, increasing the number of
tests per physician — is expected to reduce GHG emissions intensity per test.
Air freight is also projected to grow in the short term as we focus on increasing test throughput. However,
once a critical mass is reached, we anticipate opportunities to improve efficiency in procurement,
distribution and sample return logistics. These efficiencies are expected to reduce emissions intensity
over time.
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
37
OUR GOVERNANCE PRACTICES
Strong governance is fundamental to the performance of Pacific Edge. Our Board is
ultimately responsible for ensuring that the Company and its subsidiaries maintain high
ethical standards and corporate governance practices
We are committed to maintaining the highest standards of governance. We ensure that our corporate
governance practices are in line with best practice; the NZX Corporate Governance Code (NZX Code); and
broader expectations of corporate behavior. Over the last year we have continued to evolve our governance
framework with the following initiatives.
• Completing the implementation of urine sampling system risk management plan (RMP)< Failure Modes
and Effects Analysis (FMEA) and Risk Management Report (RMP), all of which were recently audited by
our ISO134885 accreditation agency.
• Working with our advisors to understand the IRD’s requirements in respect of Tax Governance,
completing an assessment of our tax framework and implementing improvements; and better managing
the tax risks emerging with our growth in international markets.
• Strengthening our stakeholder engagement practices, ensuring that investors and other stakeholders
are informed about our progress and any market developments in a timely manner.
The key corporate governance documents referred to in this report are available on the governance section
of Pacific Edge’s website.
GOVERNANCE INITIATIVES AND HIGHLIGHTS
Risk management
Our risk management approach is described in the Corporate Governance Statement and the Risk Analysis
and Management section respectively on pages 55 to 60 of this report.
We have a comprehensive risk management framework. We have embedded Failure Modes and Effect
Analysis (FMEA) across our business and now regularly assess the risks from any software deployments,
infrastructure changes or changes on workflows. It is the tool of choice to assess and manage risks,
including quality, health and safety, market-related and climate-related risks.
We assess and prioritize risks using Risk Priority Numbering (RPN) and heat maps from every department
leader for every Board reporting cycle. Our RMP, FMEA and RMF were recently audited and our assessor
commented that the process is comprehensive and well managed. We have also benchmarked our tax risk
management framework against better practice to cover the risks emerging from our growth trajectory and
advanced our assessment of climate risks in line with the Aotearoa New Zealand Climate standards.
Risk management is embedded in everyday practices, which include regular internal and external audits,
training, quality management systems, risk reporting and promotion of a strong risk culture, which is
promoted as ‘Say what we do and do what we say’. Company-wide training is undertaken to ensure staff are
adept in the use of risk management tools.
Training in these tools and processes has also been extended to our senior management and Board
members so there is familiarity with our risk management processes from top-down as well as bottom-up.
GOVERNANCE
38
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
GOVERNANCE
Operational quality and compliance
As a health provider, Pacific Edge is required to meet stringent regulatory, quality, health and safety and
manufacturing standards in every country we are operating in.
We operate a Quality Management System (QMS) that encompasses manufacturing, laboratory operations,
clinical science and digital development. Our QMS is administered through iPassport, which maintains
standard operating procedures, tracks quality metrics such as Non-Conformances, CAPAs (Corrective
and Preventive Actions), Change Controls and ensures compliance with our ISO9001/ISO13485/ISO15189
requirements.
In FY26 we also implemented improved processes for Pre and Post Market Surveillance (PMS), which
collates information from customers, patients, physicians, from literature searches and from medical device
databases worldwide. This ensures that the Cxbladder products offered by Pacific Edge continue to offer
significant benefits compared to risks. These processes have been subjected to rigorous internal and
external audit in FY26 and have been implemented across the Group.
This increased focus on QMS and PMS, combined with a program of internal and external audits, enables the
company to meet its quality commitment to being ‘audit ready everyday’. In the past year we conducted 8
internal QMS audits, which have been assessed by external auditors from CLIA, CAP, Telarc and IANZ and
have also partnered with SeerPharma to ensure compliance with ISO13485 and FDA requirements. All our
major suppliers and partners are required to sign a Quality Agreement that governs how incidents or other
non-conformances are governed between our companies.
Below is a summary of our operating standards:
• all Group business operations are governed by ISO-9001;
• our US laboratory operations are governed by CAP
1
, CLIA
2
, GLP
3
and NYS
4
;
• our New Zealand laboratory operations are governed by CLIA, Medical Laboratory Council and
ISO-15189;
• digital/Software for lab operations is governed by CLIA, NYS, ISO-15189, HIPAA
5
and IT Security;
• Pacific Edge manufacturing is governed by the principles of Good Manufacturing Practices (GMP)
(internally audited);
• Pacific Edge collection devices are registered with the TGA
6
in Australia and with MedSafe in NZ and
their manufacturing follows GMP and is manufactured, assembled and distributed in accordance with
ISO-13485; and
• Pacific Edge clinical evidence generation is governed under GCP (good clinical practice) and IRB ethics
approvals. Clinical Sciences are working towards future compliance with ISO20916.
A new Quality Policy was implemented in FY25, supporting the extension of the QMS to ISO-13485/
ISO14971 requirements. Certification for compliance with ISO 13845:2016 has since been granted and a
recertification/surveillance audit completed in April 2026.
1
College of American Pathologists
2
Clinical Laboratory Improvement Amendments (Centers for Medicare & Medicaid Services)
3
Good Laboratory Practice
4
New York State (Department of Health)
5
Health Insurance Portability and Accountability Act (US)
6
Therapeutic Goods Administration
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
39
Simon Flood
Chairman and Independent
Director
(Appointed 2025)
Simon holds a BCom from
the University of Canterbury
and has spent more than
25 years in the global
investment management
industry having held senior Investment and
Business Leadership roles in some of the world’s
pre-eminent investment management firms.
His global perspective was honed through his
years as a senior business leader and investor while
working in London, Hong Kong and Singapore
managing businesses, portfolios and teams of
investors managing money on behalf of institutional
investors from both the private as well as public
sectors. Simon was a Managing Director at Merrill
Lynch Investment Managers and COO of their
Asian Business. He was Chief Investment Officer at
Lion Global Investors, and prior to returning to New
Zealand he was Head of Asia for AXA Investment
Managers.
As an investor, Simon has had responsibility for
investments in listed equities, fixed income and has
also had experience in the commercialisation of
intellectual property and early-stage investment.
While an analyst and portfolio manager Simon
developed a keen interest in the global healthcare
industry and has maintained that interest and
knowledge base throughout his career.
Having returned to New Zealand in 2015, Simon
has been appointed to several Boards and is
currently the Chair of Queenstown Airport and is
on the board of a number of other companies and
foundations covering sectors of significance in the
New Zealand economy.
Anatole Masfen
Director
(Appointed 2008)
Anatole is the co-founder
of Artemis Capital, a private
equity investment firm based
in Auckland. He graduated
from the University of
Auckland with an MCom
(Hons) in Finance and Economics. Following that he
spent eight years with Air New Zealand (and later
the merged entity with Ansett Australia) holding
senior positions in Pricing, Revenue Management
and Systems implementation. He holds directorships
in numerous private companies and has significant
knowledge of financial capital markets. As a long
standing director of PEB and investor in numerous
medical and tech companies, Anatole has a detailed
knowledge of the medical sector and future
trends. In particular human sciences and disruptive
technologies.
Sarah Park
Independent Director
(Appointed 2018)
Sarah has over 25 years’
experience in corporate
finance and capital markets.
Her career includes roles
with PwC in New Zealand
and HSBC Investment Bank
in London, as well as subsequent experience in
investment management. Sarah co-founded Even
Capital, a venture capital firm investing exclusively
in female entrepreneurs across New Zealand
and Australia.
She is an experienced early-stage investor with a
particular focus on healthcare. She has built deep
knowledge of how to move science from the lab to
commercial application, including the investment
and commercialisation pathways needed to scale
successfully.
Sarah has broad governance experience, having
held a number of board roles in different industries
over the past 12 years. She is currently a member
of the board of the Government Superannuation
Fund Authority, National Provident Fund and
Orbis Diagnostics.
Sarah holds a Master of Arts (Honours) in
Economics from the University of Edinburgh and is
a member of the New Zealand Institute of Directors
and Chapter Zero New Zealand.
PACIFIC EDGE’S BOARD
GOVERNANCE
40
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Bryan Williams
Independent Director
(Appointed 2013)
Bryan is an internationally
recognised cancer
researcher and research
administrator, with
significant business
experience. He has held
a number of governance roles, including with a
NASDAQ listed biotech company and Chair of
a Not For Profit Medical Informatics Company.
Presently, he serves on boards of two Australian
and one American privately held biotechnology
companies. He was co-founder of an American
Biotechnology sold to J&J and currently co-
founder and CSO of an American biotechnology
company located in Los Angeles and Boston. Bryan
was Director and CEO of the Hudson Institute of
Medical Research. He is presently Emeritus Director
and Distinguished Scientist at the Hudson Institute
in Melbourne. He has a BSc (Hons) and PhD in
Microbiology from the University of Otago.
Anna Stove
Independent Director
(Appointed 2021)
Anna is an experienced
leader with more than 25
years’ global executive and
board experience across
healthcare, biotechnology
and regulated scientific
sectors. She has a strong track record guiding
organisations through growth, commercial
transformation and complex regulatory
environments, underpinned by deep commercial
and scientific literacy.
Her executive career spans senior leadership roles
across Asia Pacific and Europe, culminating in her
appointment as New Zealand General Manager for
GlaxoSmithKline.
Anna has held a number of significant governance
roles including Chair of TAB NZ, Chair of Global
Women NZ, Director of Medicines New Zealand,
and Vice Chair of Shooting Star Children’s Hospices
in London.
She is currently Chair of Rua Bioscience.
Tony Barclay
Independent Director and
Chair of Audit and Risk
Committee
(Appointed 2022)
Tony brings over 35 years
experience in business
and 30 years healthcare
experience. Tony was
CFO at medical device company Fisher & Paykel
Healthcare from the time of separation from Fisher
& Paykel Appliances in 2001 until retiring from full-
time employment in 2018. Prior to Fisher & Paykel
Healthcare Tony worked for PriceWaterhouse and
Arnott’s Biscuits in finance roles. Tony is also a
board member of listed company Rua Bioscience
and holds a number of directorships in private
companies, all in MedTech. Tony holds a BCom
from the University of Otago and is a Chartered
Accountant and a member of the New Zealand
Institute of Directors and INFINZ.
GOVERNANCE
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
41
Dr Peter Meintjes
CEO, Pacific Edge
Peter is an experienced
commercial leader in
molecular diagnostics and
genomics focused on nascent
market development of
disruptive innovations. Prior
to joining Pacific Edge, he was
based in Boston, USA for a number of molecular
diagnostic leadership roles. Most recently the
Chief Commercial Officer at Eurofins Transplant
Genomics (TGI), a transplant diagnostics company
focused on revolutionizing post-transplant care
for kidney transplant recipients with non-invasive
biomarkers he was responsible for scaling the
commercial team behind TruGraf (now OmniGraf),
the only CMS-reimbursed test for subclinical
organ rejection. Prior to TGI, Peter was CEO at
Omixon Inc, a molecular diagnostics company
focused on the pre-transplant market, world
leader in HLA typing by NGS, and recipient of the
Innovation Grand Prize among all companies in
Hungary in 2018. Omixon was acquired by Werfen
in 2024. Prior to his US career, Peter worked
at Auckland-based Biomatters, the creators of
Geneious – software specializing in translating
genetic and genomic data into biological insights
for researchers and medical insights for clinicians.
Biomatters was acquired by GraphPad in 2019.
Grant Gibson
Chief Financial Officer,
Pacific Edge
Grant is an experienced
financial executive and
chartered accountant, who
brings significant financial
experience to the role. Prior
to joining Pacific Edge in late
2019, Grant was Chief Financial and Operating
Officer for Dunedin-based company, TracMap,
where he was responsible for leading the financial
management and operations across the company.
Prior to that, Grant worked in executive finance
roles at Westpac, including as Head of Finance
for Westpac New Zealand. During his time with
Westpac, he headed the finance team for New
Zealand’s largest financial transaction, the local
incorporation of Westpac New Zealand.
Tamer Aboushwareb MD PhD
Chief Medical Officer,
Pacific Edge
Tamer joined Pacific Edge
in June 2022 and brings to
the company a depth of
experience in clinical, medical
research, and commercial
roles in urological medicine in
Egypt and the USA. Prior to joining the company,
he was Senior Director of Oncology Clinical
Development at Exact Sciences and prior to
that he was Global Therapy Area Head, Urology,
Medical Affairs at the global pharmaceutical
company Allergan. He is a graduate of the Ain
Shams University Medical School in Cairo. He also
holds Masters and Doctoral degrees in urology and
molecular medicine and has held residency, post-
doctoral and research roles in Egypt and the US.
Darrell Morgan
Chief Operating Officer,
Pacific Edge
Darrell is a Chartered
Biologist with over 40
years experience in senior
roles in pharmaceutical
research and development,
immunodiagnostics, and
device development for drug delivery across
human and animal health, technical operations
and customer-facing roles in the UK, Europe and
New Zealand. Prior to joining Pacific Edge, Darrell
held several roles at Argenta, an Auckland based
animal pharmaceutical manufacturer, including
VP of Business Development, Head of Global
Pharmaceutical Sciences and Director of Product
Development. His last role in Europe was leading
UCB’s large molecule sterile drug delivery and
patient solution technologies teams, developing
drug/device combination products which were
approved by both FDA and EMEA.
PACIFIC EDGE’S SENIOR MANGEMENT TEAM
GOVERNANCE
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Justin Harvey PhD
Chief Technology Officer,
Pacific Edge
Justin joined Pacific
Edge in 2004, bringing
a robust background in
medical laboratory testing,
diagnostics, and cancer
genetics. He has played a pivotal role in the
development and commercialization of the
Cxbladder suite of products from their inception.
Currently, Justin leads Pacific Edge’s scientific
Research and Development program, focusing on
developing novel products aimed at improving
patient outcomes through early detection and
management of cancer. Justin is dedicated to
advancing medical science and improving patient
care through innovative diagnostic solutions. His
leadership and expertise continue to drive Pacific
Edge’s mission to provide leading solutions for the
early detection and management of cancer.
Professor Parry Guilford
Chief Scientific Officer,
Pacific Edge
Parry has led the science,
research and development
at Pacific Edge from its early
days. As one of the founding
scientists and a member of
the Scientific Advisory Board
of the Company, Parry is the architect of many of
the Company’s product prototypes. Parry’s focus is
to bring his world class skills and experience on the
step change in biotechnology for the Company’s
next generation of products.
Glen Costin
President APAC, Pacific Edge
Glen joined Pacific Edge in
April 2023 having spent more
than 20 years in Asia Pacific
markets with life science/
diagnostic companies such as
BD (Becton Dickinson) and
Bio-Rad Laboratories. Glen
has had extensive hands-on commercial and go-
to-market experience in China, Korea, Taiwan, SE
Asian countries, Australia and New Zealand both
directly and via distribution partners. His sales and
marketing experience spans, life science research,
diagnostic instrumentation, as well as launching a
new Oncology test for Cervical Cancer Screening
generating over US$38M pa in revenues within
APAC. Glen has sold at the executive level for many
years and developed Key Opinion Leader networks
to support innovative technology introduction in
the medical diagnostics sector, including his former
role as Global Private Pathology Director at BD
Diagnostics. Glen’s qualifications include: Bachelor
of Science (Genomics), Masters of Management
(Marketing Management & Finance) from
Macquarie Graduate School of Management.
Zoe O’Donnell
Global Head of People &
Culture, Pacific Edge
Zoe joined Pacific Edge in
January 2025 as Global Head
of People & Culture. Prior
to joining Pacific Edge Zoe
worked in a number of roles
and industries in the UK and
New Zealand most recently with Fisher & Paykel
Appliances as Global Total Rewards Consultant.
Zoe’s roles and experiences gives her a unique
breadth and depth to her HR and Leadership
expertise.
As Global Head of People & Culture Zoe’s
passionate about people and performance
and leads the people strategy and initiatives
that streamline and enhance all touchpoints
of the employee lifecycle and experience. Zoe
champions an equitable and inclusive culture and
believes in building organisational capability and
accountability to drive a high-performance culture
aligned to strategy while delivering value to our
customers.
GOVERNANCE
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
43
GOVERNANCE
PRINCIPALS
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Strong governance is fundamental to the performance of Pacific Edge Limited and Pacific Edge’s Board is
ultimately responsible for ensuring that the Company and its subsidiaries (the Group) maintain high ethical
standards and corporate governance practices.
Pacific Edge is committed to maintaining the highest standards of governance. It does this by ensuring
that its corporate governance practices are in line with best practice and the NZX Corporate Governance
Code (NZX Code). The Board believes that for FY26, Pacific Edge’s governance practices are appropriately
aligned with the NZX Code.
The key corporate governance documents referred to in this report are available on the governance section
of Pacific Edge’s website.
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
Pacific Edge maintains high standards of ethical behaviour and has both a Directors’ Code of Ethics and an
Ethical Behaviour Policy for employees of the Company, setting out the standards that each Director
or employee must adhere to whilst conducting their duties.
General principles within both Policies include (but are not limited to) requiring all Directors and
employees to:
• act honestly and with personal integrity in all actions;
• in the case of Directors, give proper attention to the matters before them and exercise their powers and
duties with a due degree of care and diligence;
• not make improper use of information acquired as a Director or employee, or of assets or resources of
the Company; and
• comply with Company policies at all times.
In particular, the Code and Policy cover conflicts of interest, gifts, confidentiality, behaviour and proper use
of assets and information. Pacific Edge’s policy is that donations are not made to any political parties.
Employees are encouraged to report any breaches. Pacific Edge has a Speak Up Policy that is designed
to ensure its employees and contractors are aware and encouraged to raise concerns regarding actual or
suspected wrong doing with regards to ethical, clinical, professional and legal standards in a safe, supported
and protected environment. Alongside the Speak Up Policy, Pacific Edge has a Protected Disclosures Policy
that is designed to promote the public interest by facilitating the disclosure and investigation of matters of
serious wrongdoing whilst protecting complainants who make disclosures of serious wrongdoing in good
faith in an organisation from victimisation or reprisals.
Processes have been established to ensure all employees are aware of and understand these Policies.
Share Trading Policy
Pacific Edge’s Board and management are committed to ensuring compliance with all regulatory and
market requirements. Pacific Edge’s Share Trading Policy, which applies to all employees and Directors but
has additional trading restrictions applying to Directors and Senior Managers is a core component of this
commitment. Details of Directors’ share dealings are set out on page 111 of this report.
FY26 GOVERNANCE STATEMENT
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
45
GOVERNANCE
PRINCIPLE 2: BOARD COMPOSITION & PERFORMANCE
“To ensure an effective Board, there should be a balance of independence, skills, knowledge, experience
and perspectives.”
Pacific Edge’s Board operates under a written Board of Directors’ Charter (Charter) which sets out the
roles and responsibilities of the Board (and clearly distinguishes and discloses the respective roles and
responsibilities of the Board and management). The focus of the Board is the creation of company and
shareholder value and ensuring the Company is committed to best practice. The charter is available on the
Pacific Edge website.
Responsibility for the day-to-day management of Pacific Edge has been delegated to the Chief Executive
Officer (CEO) and other Senior Management. Management is responsible for implementing the objectives
and strategies approved by the Board, through a set of delegated authorities.
The primary responsibilities of the Board include:
• overall governance and providing strategic leadership;
• ensuring compliance with the Company’s constitution;
• setting clear goals for the Company, ensuring that there are appropriate strategies in place for achieving
those goals;
• monitoring the Company’s performance against its approved strategic, business and financial plans;
• appointment of the Chair and CEO;
• ensuring that the Company follows high standards of ethical and corporate behaviour;
• ensuring that the Company has appropriate risk management policies in place; and
• appointing the Company auditors and setting the annual auditors fees.
As at 1 April 2026, the Board was comprised of five non-executive independent Directors and one non
independent Director. During the year ended 31 March 2026, independent Director Chris Gallaher retired
from his position as Chairman of the Board, effective 18 December 2025. Simon Flood was appointed as an
independent Director to the Board effective 4 December 2025 and was appointed Chairman effective 18
December 2025.
The Chairman is an independent Director who is elected by the Directors. The Chairman and the CEO roles
are not executed by the same individual.
Directors are selected based on the diversity of skills needed as defined by the Company’s skills matrix
taking into account the composition of the Board in relation to the Company’s needs and operating
environment. The Board considers that its members currently have the appropriate balance of
independence, skills, knowledge, experience and perspectives necessary to lead Pacific Edge.
With the increased holding in Pacific Edge Limited during the year by Opito Trust (of which Anatole
Masfen is a beneficiary), which was approved at the Annual Shareholders Meeting on 6 August 2025 with
the allotment of shares on 13 August 2025, Anatole Masfen’s designation changed so that he is no longer
treated as an Independent Director of Pacific Edge Limited.
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Board skills matrix
Posible focus of new
Board appointments
Medicine/Diagnostics
Financial Acumen
Sales/Marketing/Distribution
Legal/Regulatory/Risk
Corporate Governance
New Market Development
Capital and Financial Markets
Health, Safety, Environment and Sustainability
■ High Capability ■ Moderate Capability
Details of each Director, along with their experience, length of service, independence and ownership
interests and attendance at Board meetings is included in this Annual Report. Director Profiles are available
on the Company’s website.
Nomination and appointment of Directors
The procedure for the nomination and appointment of Directors to the Board is set out in the Charter.
While the nomination process for new Director appointments is the responsibility of the Board as a whole,
the Nomination Committee is responsible for identifying, reviewing and recommending candidates to the
full Board. The Board may engage consultants to assist in the identification, recruitment and appointment
of suitable candidates. The Company undertakes proper checks before appointing a Director and putting
forward a candidate for election as a Director. Key information is provided to shareholders when a Director
stands for election or re-election.
Directors will retire and may stand for re-election by shareholders at least every three years, in accordance
with the NZX Listing Rules. A Director appointed since the previous annual meeting holds office only until
the next annual meeting but is eligible for re-election at that meeting.
The Board asks for Director nominations each year prior to the Annual Shareholders Meeting, in accordance
with the constitution of the Company and the NZX Listing Rules.
Induction and professional development
Newly elected Directors undergo a formal induction programme to ensure they have working knowledge of
our business. This includes one-on-one meetings with management and a tour of the laboratory and R&D
facilities. They are expected to familiarise themselves with their obligations under the constitution, Board
Charter and the NZX Listing Rules. Training is also provided to new and existing Directors where required to
enable Directors to understand their obligations.
The Company encourages all Directors to undertake appropriate training and education so that they
may best perform their duties. This includes attending presentations on changes in governance, legal
and regulatory frameworks; attending technical and professional development courses; and attending
presentations from industry experts and key advisers. Additional industry related training is provided by
Pacific Edge on a regular basis.
Board performance
The performance of the Board is reviewed periodically to assess the performance of each Director, each
Committee and the Board as a whole. The most recent evaluation of Board performance was undertaken
in September 2022. The Chair of the Board also regularly engages with individual Directors to evaluate and
discuss performance and professional development.
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47
Diversity
Pacific Edge is committed to bringing diversity to life in its employment practices and across all aspects of
the business.
The Board and Company believe in creating a flexible workplace that values difference and enhances
business outcomes. We follow equal employment practices, ensuring that our recruitment and selection,
development and talent management approaches enable inclusion and diversity at all levels.
The Diversity Policy outlines Pacific Edge’s approach towards diversity. While no measurable targets have been
set for diversity, the Remuneration Committee provides oversight of employment practices and HR processes
and practices and the Board is comfortable that these are in line with the intent of the Diversity Policy.
Pacific Edge’s workforce demonstrates balance between genders across the business, but a skew to males is
evident in the leadership teams and on the Board. We explore opportunities to increase diversity at all levels
of the workforce.
Pacific Edge will always hire the best person for the job based on capability, acceptance and best fit for the
business. We actively seek out those with a variety of thinking styles, backgrounds, and abilities. Where two
candidates applying for a role possess equivalent capability, competence and fit, then diversity becomes
the final criteria for appointment. We actively monitor for bias in both our recruitment process and our
remuneration practices.
The Officers of the Company (as defined by the NZX Listing Rules) are the CEO and specific direct reports
of the CEO having key functional responsibility. As at 31 March 2026, females represented 21% of Directors
and Officers of the Company (FY25: 21%).
The diversity of our workforce is detailed in our ESG section on page 27.
PRINCIPLE 3: BOARD COMMITTEES
“The Board should use Committees where this will enhance its effectiveness in key areas, while still
retaining Board responsibility.”
The Board has delegated a number of its responsibilities to Committees to assist in the execution of the
Board’s responsibilities. These Committees review and analyse policies and strategies which are within their
terms of reference.
Committee members are appointed from members of the Board with membership reviewed on an annual
basis. Committees examine proposals and, where appropriate, make recommendations to the full Board.
Committees do not take action or make decisions on behalf of the Board unless specifically mandated by
prior Board authority to do so.
Management may only attend committee meetings at the invitation of the Committee.
The current Committees of the Board are the Audit & Risk Committee, People and Culture Committee,
Nominations Committee and Capital and M&A Committee.
The Committees have terms of reference (Charters), which are reviewed and approved by the Board. All
charters are reviewed approximately every two years. These are available on the Company’s website.
Committee membership as at 31 March 2026
Audit & Risk
Committee
People and Culture
Committee
Nomination
Committee
Capital and M&A
Committee
Tony Barclay (Chair)
Sarah Park
Simon Flood
Anna Stove (Chair)
Anatole Masfen
To n y Barclay
Bryan Williams
Anna Stove
Bryan Williams
Simon Flood
Anatole Masfen (Chair)
To n y Barclay
Peter Meintjes
Sarah Park
Simon Flood
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Director meeting attendance
The Board meets as often as it deems appropriate including sessions to consider the strategic direction of
Pacific Edge and forward-looking business plans. Video and/or phone conferences are also used as required.
The table below sets out Director attendance at Board and Committee meetings during FY26.
Board
Audit & Risk
Committee
Nomination
Committee
People and
Culture
Committee
Capital
and M&A
Committee
Anatole Masfen
11/132*2/2
4/6
Anna Stove
13/131*2/2
Tony Barclay
10/13
6/6
1/2
6/6
Bryan Williams
13/132*
2/2
Sarah Park
12/13
5/6
5/6
Simon Flood
(Appointed 4 December 2025)
5/51/1
4/4
Chris Gallaher
(Resigned 18 December 2025)
8/95/52/2
*Indicates optional attendance
Audit & Risk Committee
Pacific Edge’s Audit & Risk Committee is comprised solely of Directors of the Company, with all members
being independent Directors. As at 31 March 2026, there were three members of the Audit & Risk Committee
with all having an accounting or financial background. The Chair of the Audit and Risk Committee is not the
Chair of the Board.
As per the Board Charter, the responsibilities of the Audit & Risk Committee include providing oversight
in four distinct areas (financial reporting, audit functions, risk management and sustainability and climate
related disclosures) and include as a minimum:
Financial reporting
• reviewing the financial reports and advising all Directors whether they comply with the appropriate
laws and regulations;
• ensuring that the processes are in place and monitoring of those processes so that the Board is
properly and regularly informed and updated on corporate financial matters;
• reviewing the Company’s tax position, compliance and any exposures; and
• recommending to the Board for adoption significant changes in accounting policies and annual and
six-monthly financial statements.
Audit functions
• ensuring that the external auditor or lead audit partner is changed at least every five years;
• monitoring and reviewing the independent and internal auditing practices;
• having direct communication with and unrestricted access to the independent auditors and any
internal auditors or accountants; and
• recommending annually to the Board the appointment of the independent auditor.
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
49
Risk management
• ensuring that management has established a risk management framework which includes policies
and procedures to effectively identify, treat, monitor and report key business risks;
• review key insurance policy terms and cover adequacy and make recommendations to the Board for
adoption of the insurance cover;
• overseeing compliance of the Company’s Treasury activities including periodic review of performance
against the Policy; and
• ensuring Treasury issues raised by auditors (both internal and external) are resolved and/or a plan to
resolve is agreed immediately.
Sustainability and climate-related disclosures
• reporting to the Board on the delivery of the Sustainability Policy and progress with adoption and
compliance with the Aotearoa New Zealand Climate Standards (Climate Reporting Standards) published
by the XRB.
Directors who are not members of the Committee are able to attend Audit & Risk Committee meetings as
they wish. Employees may only attend those meetings at the invitation of the Audit & Risk Committee.
Nomination Committee
The Board has established a Nomination Committee to recommend Director appointments to the Board.
The Nomination committee operates under a written Charter. All members of the Nomination Committee are
independent Directors.
People and Culture Committee
The Board has a People and Culture Committee to recommend the remuneration for Directors to the
shareholders and to oversee the remuneration of the Officers/senior managers of the Company. The
People and Culture Committee operates under a written Charter. All members of the People and Culture
Committee are independent Directors. The CEO does not participate in any discussions concerning the
CEO’s remuneration.
The People and Culture Committee is responsible for ensuring that the Company has a sound Remuneration
Policy to attract and retain high performing individuals. The Remuneration Policy is available on the
Company’s website.
Directors’ remuneration is also considered by the People and Culture Committee, within the limits that have
been approved by the shareholders of the Company.
The Committee makes recommendations to the Board on remuneration packages for the CEO. Any
recommendations to shareholders regarding Director remuneration are provided for approval in a
transparent manner.
Capital Committee
The Board has a Capital Committee to ensure there are sufficient financial resources to fund the operations
of the Company in the near term and to address the longer term capital requirements of the Company. The
Capital Committee operates under a written charter.
Other Committees
The Board establishes other Committees as required. In the case of a Control Transaction
1
, Pacific Edge will
form an Independent Control Transaction Committee to oversee disclosure and response and engage expert
legal and financial advisors to provide advice on procedure. The Board has established appropriate processes
and protocols that set out the procedures to be followed in the event of a Control Transaction for the
Company.
1
A control transaction is defined in the NZX Corporate Governance Code as any transaction which: (i) is regulated by the Takeovers Code;
(ii) would be regulated by the Takeovers Code if it were not structured as a scheme of arrangement under Part 15 of the Companies Act 1993;
or (iii) is a Restricted Transfer under Appendix 3 of the Rules.
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
PRINCIPLE 4: REPORTING & DISCLOSURE
“The Board should demand integrity in financial and non-financial reporting, and in the timeliness and
balance of corporate disclosures.”
Continuous disclosure
The Board focuses on providing accurate, adequate and timely information both to its shareholders and
to the market generally. This enables all investors to make informed decisions about the Company. All
significant announcements made to NZX and ASX, and reports issued, are posted on the Company’s
website.
The Company has procedures in place to ensure that it complies with its continuous disclosure requirements
under the NZX and ASX Listing Rules. The Continuous Disclosure Policy governs the release to the market of
all material information that may affect the value of the Company.
Company policies
Copies of the key governance documents, including the Continuous Disclosure Policy, Ethical Behaviour
Policy, Share Trading Policy, Board and Committee Charters and Diversity Policy are available on the
governance section of Pacific Edge's website.
Financial reporting
Pacific Edge’s management team is responsible for implementing and maintaining appropriate accounting
and financial reporting principles, policies, and internal controls. These are designed to ensure compliance
with accounting standards and applicable laws and regulations.
The Audit & Risk Committee oversees the quality and integrity of external financial reporting, including the
accuracy, completeness, balance and timeliness of financial statements. It reviews Pacific Edge’s full and
half year financial statements and makes recommendations to the Board concerning accounting policies,
areas of judgement, compliance with accounting standards, stock exchange and legal requirements, and the
results of the external audit.
All matters required to be addressed, and for which the Committee has responsibility, were addressed
during the reporting period.
The CEO and CFO have confirmed in writing to the Board that Pacific Edge’s external financial reports
present a true and fair view in all material aspects. Pacific Edge’s full and half year financial statements are
available on the Company’s website.
The Chief Financial Officer holds the role of Company Secretary. In all accounting and secretarial matters,
the Board ensures that the Secretary’s reports are objective and that the Secretary has unfettered access to
the chair and the audit committee, without reference to the CEO.
Non-financial reporting
Non-financial information is provided on a regular basis to shareholders to allow them to measure the
progress of the company. Pacific Edge’s Board and management are focused on identifying areas which
are of primary importance to creating a sustainable business, achieving strategic goals and meeting the
expectations of key stakeholders.
Pacific Edge discusses its strategic objectives and its progress against these in the Chair and CEO’s
commentary in shareholder reports and in the sustainability section of this report. Key non-financial metrics
used by Pacific Edge to demonstrate its progress are Laboratory Test Throughput and Commercial Tests
among others.
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51
PRINCIPLE 5: REMUNERATION
“The remuneration of directors and executives should be transparent, fair and reasonable.”
The Company has a People & Culture Policy which outlines the processes and framework for remuneration
of the Chairperson, the Directors, the CEO and management. The People and Culture Committee is
responsible for recommending to the Board the remuneration for the Chair, Directors and the CEO, and
consulting and approval, on the recommendation of the CEO for the appointment and employment terms of
all Executives (other than the CEO).
Shareholders fix the total remuneration available for directors. Approval is sought for any increase in
the pool available to pay Directors’ fees, and any recommendations to shareholders regarding Director
remuneration are provided for approval in a transparent manner.
External advice is sought on a regular basis to ensure remuneration is benchmarked to the market for senior
management positions, Directors and Board positions. A review of Director remuneration was undertaken in
2025 and approved at the 2025 Annual Shareholders’ Meeting.
Further details on remuneration are included in the Remuneration Section of this Annual Report, including
the remuneration arrangements in place for the CEO, on pages 61 to 66.
While there is no formal requirement all of Pacific Edge’s Directors own shares in the Company either
directly or through related entities. There is a provision for the Company to make a retirement payment to a
Director if approved by shareholders; however, no retirement payments were made in FY26.
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.”
The Board is responsible for ensuring that appropriate policies and procedures are in place to identify and
manage the key risks of the Company, and these risks are managed through the Audit & Risk Committee.
The Audit & Risk Committee operates in line with its Charter, which sets out its responsibilities for
identifying, monitoring, treating and reporting on key business risks.
The executive team and senior management are required to regularly identify the major risks affecting the
business, record them in the risk register and develop structures, practices and processes to manage and
monitor these risks. Pacific Edge has a strong risk culture, with risk management embedded in everyday
practices. The comprehensive risk management framework uses Failure Modes and Effect Analysis (FMEA)
to manage risk.
A comprehensive review of the risk register was completed in March 2026, and incorporates risk mitigation
strategies, processes and policies. Management continues to monitor individual risks, as does the Board.
The risk register now incorporates climate related risks and opportunities. Risks are discussed at scheduled
Board meetings, with a focus on any changes and emerging risks and opportunities.
Pacific Edge maintains insurance policies that it considers adequate to meet its insurable risks.
The Board is satisfied that Pacific Edge has in place a risk management framework to effectively identify,
manage and monitor Pacific Edge’s principal risks, to the extent practicable.
Pacific Edge’s material risks and how these are being managed are outlined and discussed in the Risk
Analysis on pages 55 to 60.
GOVERNANCE
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Health and safety
The Company takes responsibility, so far as is reasonably practicable, at all its sites to protect the health,
safety and welfare of all staff and people on Company sites, and acts in compliance with all of its legal and
ethical obligations.
Pacific Edge aims to proactively identify and manage all identified hazards across the company. The
Company’s health and safety performance is monitored and reviewed regularly by management, and the
Board. During FY26, a dashboard has been created that presents to the Board and Management key lead
and lag metrics, while also displaying the trends over time. The Company’s goal is to maintain a safe and
effective operating environment and takes its duty of care to staff, contractors and visitors very seriously.
Lag Indicators: There were no serious harm incidents reported during FY26 and no days lost to workplace
incidents at any Company site. There were 5 minor injuries and 11 near misses over the group.
Lead Indicators: There were five dedicated health and safety training sessions completed during FY26 as
well as four safety audits conducted. In addition, there are 30 ‘Toolbox Talk’ presentations available for teams
to continue their health and safety journey. Risk assessments were also conducted in the New Zealand and
US Laboratories.
PRINCIPLE 7: AUDITORS
“The Board should ensure the quality and independence of the external audit process.”
External auditors
The Board’s relationship with its external auditors is governed by the Audit & Risk Committee Charter.
The Charter sets out the Audit & Risk Committee’s responsibilities in relation to corporate accounting
and reporting practices of the Company, along with the quality and integrity of financial reports and the
Company’s climate report. It is the responsibility of the Audit & Risk Committee to maintain free and open
communication between the Directors and external auditors and to approve any non-audit engagements
performed by the audit firm.
For FY26, PricewaterhouseCoopers (PwC) was the external auditor for the financial accounts of Pacific
Edge Limited. PwC was re-appointed under the Companies Act 1993 at the 2025 Annual Shareholders
Meeting. The last audit partner rotation was in FY26 with another rotation due in FY31.
All audit work at Pacific Edge is separated from non-audit services, to ensure that appropriate independence
is maintained. The Audit and Risk Committee review and approve the nature and scope of other professional
services (if any) provided to the Company by the external auditor and consider the relationship to the
auditor’s independence. The amount of fees paid to PwC during FY26 are identified on page 80.
PwC has provided the Audit & Risk Committee with written confirmation that, in their view, it was able to
operate independently during the year.
PwC attends each Annual Meeting of the Company, and the lead audit partner is available to answer
questions from shareholders at that Meeting. PwC attended the 2025 Annual Meeting.
Internal audits
IInternal audits are used as a Quality Management tool for the systematic and independent examination of
Pacific Edge’s operational processes as they relate to product and service provision.
Pacific Edge routinely conducts internal audits of its manufacturing, clinical diagnostic laboratories, R&D,
Supply Chain Operations, Digital and Quality Operations at planned intervals to verify that its Quality
Management System is effectively implemented and maintained and provides continuous improvement
opportunities in system processes. In FY26, a total of 8 internal audits were completed, along with vertical
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53
GOVERNANCE
and horizontal audits across its diagnostic laboratories.
Supplier audits are a key requirement of our Supplier Relationship Management and Quality Assurance
programs. In FY2026 audits of two partners, one a USA based 3PL provider and one an EU based Urine
Sampling System component supplier were audited against ISO13485 and their respective Quality
Agreements. Both audits were successful and the suppliers responses satisfactory.
In addition, audits by external Notified Bodies and government regulators took place to ensure compliance
with the requirements of multiple International Standards, such as ISO9001:2015, ISO13485:2016 and
ISO15189:2012.
The latest external regulatory inspections/audits in New Zealand took place in July 2025 (CLIA),April
2026 (Telarc, ISO9001/ISO13485), and in May 2026 (IANZ, ISO15189). All were completed satisfactorily.
In PEDUSA, the laboratories were audited by CAP in November 2025. All audits in the USA and NZ were
completed successfully.
PRINCIPLE 8: SHAREHOLDER RIGHTS & RELATIONS
“The Board should respect the rights of shareholders and foster constructive relationships with
shareholders that encourage them to engage with the issuer.”
Shareholder communications
Pacific Edge is committed to ensuring that its shareholders are kept up to date with key activities and are
provided with relevant information about the Company and its performance.
The Company communicates with shareholders during the financial year through quarterly investor updates,
shareholder letters, annual and half year reports and at the Annual Shareholders Meeting (ASM). All written
communications and reports are available on the Company’s website, as well as emailed to shareholders
who elect to be emailed. All shareholders are given the option to elect to receive electronic communications
from the Company.
In addition to shareholders, Pacific Edge has a wide range of stakeholders and maintains open channels
of communication for all audiences, including brokers, the investing community and the New Zealand
Shareholders’ Association, as well as its staff, suppliers and customers.
Shareholder meetings
In accordance with the NZX Listing Rules, shareholders have the right to vote on major decisions which
may change the nature of the Company. Each shareholder has one vote per share and voting is conducted
by polls.
The Notice of the Annual Meeting is generally announced on the NZX, sent to shareholders and posted on to
the Company’s website at least 20 working days prior to the Meeting each year.
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
RISK ANALYSIS
AND MANAGEMENT
55
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
As a growth company, there are a number of risks which could impact Pacific Edge. We believe it is
important for our shareholders to have an understanding of these risks and the processes the Board and
management have put in place to mitigate these risks.
As a health provider, we must meet stringent regulatory, quality, health and safety and manufacturing
standards in a number of countries. Risk management is therefore embedded in everyday practices, which
include regular internal and external audits, training, quality management systems, risk reporting and
promotion of a strong risk culture. Pacific Edge has a comprehensive risk management framework, using
Failure Modes and Effect Analysis (FMEA) as the tool of choice to assess and manage risk.
The Board provides oversight of the senior leadership’s management of key risks. Every departmental leader
is expected to report on risks to the CEO/CFO/COO in every board meeting cycle with an assessment of
those risks incorporated into the risk register provided to the Board. The Audit & Risk Committee reports to,
and assists, the Board by identifying and reviewing the key risks, assessing their materiality, and ensuring the
risk management processes are adequate. It also helps to ensure the Board has reliable information and that
future events that may create uncertainty or pose a risk are identified and considered.
RiskDetailMitigation
Medicare coverage
uncertainty
Pacific Edge does not currently have
Medicare coverage for its Cxbladder
products.
On 14 May 2026 a draft Local Coverage
Determination (LCD) with foundational
medical policy for urine-based biomarkers for
hematuria evaluation was published to the
Medicare Coverage Database, with explicit
coding guidance for Cxbladder Triage and
Triage Plus in the associated Local Coverage
Article (LCA) (DA60424).
The draft LCD ‘Urine-based Biomarkers in
Patients with Microhematuria’ (DL40378)
establishes hematuria evaluation as a
covered Medicare benefit for the first time
and importantly distinguishes hematuria
patients as eligible for Cxbladder Triage and
Triage Plus.
While the issuance of the draft LCD is
extremely positive, regaining Medicare
coverage could be delayed or not achieved at
all. If Medicare re-coverage was not achieved
or was significantly delayed, it would have
a material adverse impact on Pacific Edge’s
financial performance and growth and could
result in the company using up all available
cash before it is able to become profitable
from its ongoing operations.
If finalisation of the draft LCD is unsuccessful,
Pacific Edge will likely need to complete
further clinical studies to provide new
published evidence when submitting another
reconsideration request. That clinical study
will take a number of years to undertake.
Accordingly, if the current draft LCD is not
finalised including Cxbladder Triage and /
or Triage Plus, Pacific Edge will need to
undertake a significant restructure of its
business to substantially reduce costs and,
potentially, seek to raise further capital.
• Pacific Edge generates evidence in an
AV, CV, CU framework on defined patient
populations, with statistically significant
sample sizes and measuring end points
that impact patient management.
• Pacific Edge chooses study sites with
the highest reputations in evidence
development.
• Pacific Edge reviews its study protocols
and statistical analysis plans with Clinical
Advisory Boards comprising international
key opinion leaders and guideline
committee members to ensure the
evidence generated meets the required
standards prior to commencing enrolment
of our studies.
• Pacific Edge recognizes that coverage
certainty is a continuous improvement
process, and additional studies to generate
real world evidence are often needed to
mitigate future coverage uncertainty, e.g.
registry studies and retrospective clinical
experience studies.
• Pacific Edge uses consultants with
the appropriate expertise to assist in
developing coverage plans for Medicare
and all other payers.
RISK ANALYSIS AND MANAGEMENT
RISK MANAGEMENT
56
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
RiskDetailMitigation
Ongoing Financial
Viability
Pacific Edge is operating at a ‘cash burn’,
which means that the company spends more
cash that it generates.
Pacific Edge completed a capital raise on 28
May 2026, with $36.1 million capital raised
with a $25.4 million placement and a $10.7
million retail offer.
The capital raised is in part to provide
sufficient cash to regain Medicare coverage.
If Medicare re-coverage is not achieved
or significantly delayed, or the business is
impacted adversely by other events, there
is a risk to the ongoing financial viability of
Pacific Edge, which may result in investors
losing some or all of their investment.
• Completion of the $36.1 million capital raise
on 28 May 2026 provides over 12 months
cash runway based on FY26 cash burn.
• The AUA guideline inclusion in February
2025, recent success with commercial
payers covering Cxbladder Triage and
the publication of the draft LCD ‘Urine
based Biomarkers in Patients with
Microhematuria’ (DL40378) provides
Pacific Edge with several options to build
momentum in establishing medical policy
and/or coverage will commercial payers.
• Triage Plus has been priced by Medicare at
$1,328/test, 75% higher than the current
price for existing products. This higher
price improves the unit economics of
operating our front line sales resources
increasing confidence in our future
financial viability.
Regulatory,
industry body and
guideline risks
Pacific Edge’s Cxbladder products and
laboratories are regulated and certified by
various government and industry entities
in territories and markets in which the tests
are performed and/or sold. Reimbursement
for these tests may be influenced by
reimbursement rulings from private and/or
government payers.
Guidelines issued by various industry
bodies also influence the treatment and
management regimes for patients, with the
potential to impact on the uptake and use of
Cxbladder.
If Pacific Edge is unable to retain or, in
certain markets, gain inclusion in guidelines,
or the current regulatory approvals and
reimbursement obtained for existing
products are removed or reduced, such
matters could have an adverse impact on
Pacific Edge’s financial performance and its
ability to achieve its business plans.
If Pacific Edge is unable to obtain the
approvals required for new products in
new territories, or is unable to obtain future
reimbursement for new products, this could
also have an adverse impact on Pacific
Edge’s financial performance and its ability
to achieve its business plans.
• Pacific Edge’s quality management system
is evolving towards the superset of its
regulatory requirements that includes ISO-
13485, IVDR and FDA.
• To maintain compliance with those
standards, internal audits and external
audits by external Notified Bodies
are routinely performed to ensure
compliance with the requirements of
multiple International Standards, such
as ISO9001:2015, ISO13485:2016 and
ISO15189:2012.
• The latest external regulatory inspections/
audits in New Zealand took place in
July 2025 (CLIA), April 2026 (Telarc,
ISO9001/ISO13485), and in May 2026
(IANZ, ISO15189). All were completed
satisfactorily.
• In PEDUSA, the laboratories were audited
by CAP in November 2025.
• All audits in the USA and NZ were
completed successfully.
RISK MANAGEMENT
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
57
RiskDetailMitigation
CompetitionThe global cancer diagnostics industry is
highly competitive, with research undertaken
by a large number of commercial and not for
profit institutions globally on new diagnostic
tools. There are some smaller companies with
minimal clinical evidence to support their use,
or with no commercial presence in the USA,
but there are also a large number of well
capitalized diagnostics companies operating
in the broader industry.
There is a risk that the larger, better
capitalized companies may discover, develop
or introduce new products that compete with
Pacific Edge’s products, and if successful,
could render Pacific Edge’s products
obsolete or otherwise uncompetitive,
resulting in adverse effects on Pacific Edge’s
revenue, margins and profitability.
• Cxbladder Triage is included in the
AUA microhematuria guideline, the only
biomarker with ‘Grade A’ evidence.
• Cxbladder Triage and Triage Plus are the
only tests proposed to be covered by the
draft LCD - Urine-based Biomarkers in
Patients with Microhematuria (DL40378)
with competing products non-covered.
• We have yet to observe any competing
bladder cancer diagnostic product that has
developed clinical evidence in a robust AV,
CV, CU framework required for coverage
and guidelines inclusion.
• Matching or improving upon the existing
AV, CV, CU and real world evidence for
Cxbladder would take substantial time and
money and is the most significant barrier
to entry.
• We continue to invest in Research and
Development for Cxbladder products, to
improve test performance and value for
clinical decision making.
Product and
technology risk
Pacific Edge relies on laboratory operations,
third party suppliers of test components, IT
and technical systems to process and report
results for Cxbladder tests.
While the performance of Cxbladder has
been demonstrated in various scientific
journal publications, any change to the
reliability, repeatability, reproducibility
or accuracy of Cxbladder products and
technology systems has the potential
to impact Pacific Edge’s business and
reputation.
Cyber attacks on Pacific Edge digital
systems and platforms also have the
potential to impact the delivery of test
results. Financial, reputational and litigation
consequences relating to underperformance
and unreliability, or the inability to deliver,
test results (including due to adverse
cyber incidents or quality issues with test
components supplied by third parties) have
the potential to be significant and could be
materially adverse to the company’s financial
performance and position.
• Completed clinical studies have validated
our test performance.
• Clinical studies in progress are targeted
to provide additional clinical utility data
supporting wider adoption by the medical
community and wider reimbursement by
funders and third party payers.
• Modern digital practices have been
introduced to deliver a secure digital
infrastructure.
• Expansion into new geographies can
reduce single market risks.
RISK MANAGEMENT
58
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
RiskDetailMitigation
New product
development
Pacific Edge continues to leverage its suite of
patents and intellectual property to explore
new products and applications.
There is a risk that those development efforts
may not be successful or may take longer
and be more expensive than anticipated,
and as a result, Pacific Edge’s investment will
be delayed or lost. This risk could arise due
to a number of factors, including delays in
commencement or completion of scientific
studies.
Any failure or significant delay in the
development of one or more of Pacific
Edge’s new products
and product extensions may have a material
negative impact on Pacific Edge’s financial
performance and growth.
• Pacific Edge holds strategy sessions and
consults with experts when considering
new products for new markets.
• Internal controls with regular management
and board checkpoints to mitigate the
risk of developments failing to deliver
objectives.
General economic
conditions
Pacific Edge’s operating and financial
performance is influenced by a variety of
general economic and business conditions in
New Zealand, the United States, Southeast
Asia and globally. A prolonged deterioration
in general economic conditions, which may
lead to a decrease or reprioritisation of
healthcare spending, has the potential to
have a material adverse effect on Pacific
Edge’s business or financial condition (or
both).
In addition, uncertain and dynamic
geopolitical risks, including international
conflicts, sanctions, tariffs and political
instability may disrupt Pacific Edge’s supply
chains and access to, or costs to operate in,
certain markets.
Any of these may have an adverse effect
on Pacific Edge’s business or financial
performance (or both).
• We are expanding into multiple
geographies to mitigate the risk of
economic deterioration in a single market
to minimise this risk.
LitigationIn the ordinary course of conducting its
business, Pacific Edge is exposed to potential
litigation and other proceedings, including
through claims of intellectual property
infringement or breach of agreements. If
such proceedings are brought against Pacific
Edge, Pacific Edge could incur considerable
defence costs (even if successful), with the
potential for damages and costs awards
against Pacific Edge if it were unsuccessful,
which could have a significant adverse
financial impact on Pacific Edge.
Circumstances may also arise in which
Pacific Edge considers that it is reasonable
or necessary to initiate litigation or other
proceedings, including for example to
protect its intellectual property rights.
• We work to protect our intellectual
property portfolio with industry-leading
attorneys.
• Our protectable IP is supplemented by
know how and trade secrets that are
maintained internally.
• We have developed a network of specialist
legal representatives in the US that
are familiar with our products and our
business.
• We have strong quality systems embedded
throughout the business.
RISK MANAGEMENT
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
59
RISK MANAGEMENT
RiskDetailMitigation
Key Person RiskThe success of our business depends
significantly on the continued contributions
of our executive team, scientific leaders,
and key technical staff. The unexpected
departure of any of these individuals could
disrupt operations, delay research and
development efforts, and negatively impact
strategic initiatives. Attracting and retaining
top talent in a competitive biotech labour
market remains a critical challenge.
• We have cross training for key roles and
Employment Agreements for Senior
Leaders generally include 3 month notice
periods.
• PEB has developed remuneration policies
that position it well to retain key staff in NZ
and USA.
• Focus on retaining key staff to provide
the best opportunity to regaining CMS
coverage in the United States supported
by retention agreements.
• Key person insurance for CEO in place.
Market volatility
of Pacific Edge’s
shares
Any investment in equity capital markets
carries general risks. Pacific Edge’s shares
are currently listed on NZX and the ASX,
and are subject to the usual market-related
forces which impact on Pacific Edge’s share
price. The equity markets can be subject to
pronounced volatility. This volatility could
have a materially adverse impact on the
market price of Pacific Edge shares.
Factors such as the risk factors disclosed in
this section as well as other factors could
cause the market price of Pacific Edge’s
shares to decline or to materially fluctuate.
It also is possible that new market risks may
develop as a result of the New Zealand or
Australian markets experiencing extreme
stress, or due to existing risks manifesting
themselves in ways that are not currently
foreseeable.
A weakening in the New Zealand or
Australian dollar as against other currencies
may cause the value of the shares to decline
in any portfolio which is denominated in a
currency other than New Zealand dollars.
• We are aware of the risks associated with
our shares, such as low levels of liquidity,
a number of large investors, high volatility
in our share price and external influences
from investor confidence. The dual listing
on the ASX in September 2021 provided
some mitigation to this risk.
• A comprehensive Treasury Policy is in
place to manage liquidity risk, FX risk,
counterparty credit risk, cash management
and interest rate risk. The Treasury Policy is
reviewed at regular meetings of the board
and compliance with policy is monitored
by the Audit and Risk committee.
60
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
REMUNERATION
61
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
REMUNERATION
REMUNERATION
1
The Pacific Edge Limited People and Culture Committee operates as a sub-committee under the guidance
of the Board of Directors, to ensure the Total Rewards framework that is in place is appropriate to attract,
retain and reward current and future employees of the Pacific Edge Group. The People and Culture
Committee ensures that individual employee performance is aligned to the strategy and performance of the
Company along with the interests of the shareholders.
The current total Directors’ fee pool for non-executive Directors of Pacific Edge Limited, approved by the
shareholders at the Annual Shareholders Meeting on 6 August 2025 increased from $465,000 per annum to
$628,000 (effective from 1 April 2025) and was based on six Directors. With the addition of Simon Flood on
4 December 2025 there were seven Directors.
In accordance with NZX Listing Rule 2.11.3 which permits an issuer to increase the aggregate amount
payable to the Directors to take into account an additional Director without shareholder approval, the pool
for non-executive Directors of Pacific Edge increased to $688,000. With the retirement of Chris Gallaher on
18 December 2025, the number of Directors reduced back to six, with the Directors’ fee pool reducing back
to $628,000 per annum.
The total amount of fees paid to Directors for the year ended 31 March 2026 (FY26) was $630,256.
PositionNumber
FY26
Fee per
Director
FY26
Total
Directors
Fees Paid
FY26
Number
FY25
Fee per
Director
FY25
Total
Directors
Fees Paid
FY25
Chair1
$160,000$159,790
1
$115,000$115,000
Deputy Chair1
$90,000$90,000
1
$70,000$70,000
Non-executive
Directors
4 to 3 Dec 25,
5 to 17 Dec 25,
4 from 18 Dec 25
$80,000$322,466
5 to Sep 24,
4 from Oct 24
$60,000$270,000
Chair Audit & Risk
Committee
1
$22,000$22,000
1
$10,000$10,000
Chair People &
Culture Committee
1
$12,000$12,000
Committee
Members
4
$6,000$24,000
Special Governance
Allocation
$5,000$5,000
Total Fee Pool
$630,256$470,000
Any proposed increases in non-executive Director fees and remuneration is put to shareholders for approval
at the Annual Shareholders’ Meeting by way of ordinary resolution. If independent advice is sought by the
Board, it is disclosed to shareholders as part of the approval process.
Directors also receive reimbursement for reasonable travelling, accommodation and other expenses incurred
in the course of performing their duties. Other than as Chair of the Audit and Risk Committee, Chair of the
People and Culture Committee, and fees received from the Committee Members Allocation, Directors do
not receive any additional fees for positions on subsidiary companies. Directors’ fees exclude GST, where
applicable.
At the Annual Shareholders Meeting on 6 August 2025, shareholders approved that the additional
remuneration from increasing the Directors’ fee pool from $465,000 per annum to $628,000 would not be
paid in cash, but rather, would be satisfied by the way of the issue of Shares. The shares to be issued were
issued at the nominal issue price of $0.10 per share.
1
All references are to New Zealand dollars unless otherwise stated.
62
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
REMUNERATION
If a Director ceased to hold office before 31 March 2026, the Director had to repay in cash a proportion of
the value of the shares allotted to the Director (at the nominal issue price of $0.10 per Share) pro rata to
the period between 1 April 2025 and 31 March 2026 for which the Director did not hold office. During the
year Chris Gallaher retired on 18 December 2025, and repaid the company $12,699 for the shares issued but
unearned.
Non-executive Directors received the following Directors’ fees from the Company in the year ended
31 March 2026:
DIRECTORS’ FEES
FY26
($000)
FY25
($000)
Pacific Edge Limited Board
S. Flood (Chair)$47.6-
B. Williams (Deputy Chair)$90.0$70.0
S. Park $86.0$67.5
A. Masfen$86.0$60.0
A. Stove*$98.0$65.0
T. Barclay$108.0$62.5
C. Gallaher
(retired 18 December 2025)$114.6$115.0
TOTAL$630.2$470.0
*Includes payments made to Director out of the Special Governance Allocation in FY25 relating to the performance of duties as
Chair of the People and Culture Committee that are considered additional to the expected duties of the Board.
CHIEF EXECUTIVE OFFICER TOTAL REWARD
The review and approval of the Chief Executive Officer Dr Peter Meintjes’ (CEO) Total Reward package is
the responsibility of the Board. The Total Reward package of the CEO for the year ended 31 March 2026 is
detailed below.
Structure
The CEO’s Total Reward package comprises:
• A fixed base salary, including Kiwisaver contributions by the Group.
• An at-risk short-term incentive (STI) payable annually of up to 40% of base salary subject to the Board’s
assessment of both individual and Company performance.
• A retention incentive. During the FY24 year, the Board identified some employees as key individuals
required to re-architect evidence generation and market access capabilities to regain Medicare coverage
and preserve long-term shareholder value. The individuals, including the CEO, were contracted with
a retention incentive that rewarded staff staying with Pacific Edge for three years while the Company
sought to gain coverage certainty and guideline inclusion. In addition to tenure, the retention incentive
also provides incentives linked to explicit coverage and American Urological Association (AUA)
treatment guideline inclusion. FY26 is the second year the Retention Incentive has been paid.
• A long-term incentive (LTI) of up to 20% of base salary, subject to the Board’s assessment of Company
performance, which includes non-cash share options granted by the Company that will vest, based on
vesting criteria (further detail provided below).
Total CEO Rewards
Fixed Base
Salary
2
($000)
STI Cash
($000)
Retention
Incentive
($000)
Total cash
($000)
STI
Non Cash
($000)
STI%
Achieved
3
Actual Total
Reward
($000)
FY26$761$201$210$1,172$3082.5%$1,202
FY25$715$184$202$1,101$2477%$1,125
2
Base salary inclusive of employer Kiwisaver contribution.
3
100% = 40% of Base Salary.
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
63
REMUNERATION
Non-cash Total Rewards
During FY26, the CEO was granted 284,781 ordinary shares as a non-cash consideration in recognition of his
performance as an employee of the Company in lieu of a cash STI and in addition to salary. These shares had
a present value of $29,902 when issued (at $0.105 per share).
Short term incentives
Short term incentives (cash and non-cash) paid during the FY26 year totalled $231,093. This payment
was assessed by the Board as 82.5% of the maximum STI available after assessing both the Company’s
performance (weighted 70% and includes criteria such as Company financial performance, growth and the
delivery of strategic initiatives) and individual performance (weighted 30% focused on delivery of strategic
initiatives). The maximum STI is up to 40% of base salary as at 31 March 2026.
Retention incentive
The second of three potential tenure related retention incentives of $210,085 was paid during FY26. This
payment was 30% of base salary. In addition to tenure, the retention incentive also provides incentives linked
to explicit coverage and AUA treatment guideline inclusion which was not paid during the FY26 year.
Long term incentives
There were 1,695,548 options issued to the CEO on 13 August 2025.
Subject to the continuous employment of the option holder (other than as a result of death or disability),
the options will vest in three equal tranches, being 1 Year after issue, 2 Years after issue and the last tranche
3 Years after issue. Options must be exercised within 4 years of the relevant vesting date, unless the option
holder ceases to be an employee of the Company (or a subsidiary) other than as a result of permanent
retirement, death or disability in which case all options that have vested must be exercised within two
months of the date on which the option holder ceases to be employed.
Table of long term incentives issued to the CEO:
Issue DateNumber of OptionsVest DateExpire DateExercise Price
13 August 2025565,18313 August 202613 August 2030$0.118
13 August 2025565,18313 August 202713 August 2031$0.133
13 August 2025565,18213 August 202813 August 2032$0.150
11 July 2024390,501 11 July 202511 July 2029$0.101
11 July 2024390,501 11 July 202611 July 2030$0.114
11 July 2024390,502 11 July 202711 July 2031$0.128
25 October 20232,534,45525 October 202525 October 2029$0.253
25 October 20232,534,45525 October 202625 October 2030$0.285
25 October 20232,534,45625 October 202725 October 2031$0.320
18 February 2022600,00018 February 202318 February 2027$1.150
18 February 2022600,00018 February 202418 February 2028$1.250
18 February 2022600,00018 February 202518 February 2029$1.250
18 February 2022600,00018 February 202618 February 2030$1.250
18 February 2022600,00018 February 202718 February 2031$1.250
TOTAL13,470,418$0.462
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
REMUNERATION
EMPLOYEE TOTAL REWARDS
The Company’s salaried employee Total Rewards program consists of:
• Base salary (all employees).
• Variable Incentives:
- Short Term Incentive (STI): Variable component offered only to the CEO and senior leaders and
awarded annually based on the achievement of a combination of individual goals and Company
performance targets.
- Long-Term Incentive (LTI): Equity component offered only to the CEO and senior leaders, subject
to achievement of the Company’s goals, and are designed as a long-term retention tool using
Share Options.
- Sales Incentive: offered only to eligible sales employees and designed to reward achievement of
test volumes and activity delivered against set targets.
• Retention Incentive: With the uncertainty created for Pacific Edge from the loss of Medicare coverage,
in 2023 the Board implemented a retention incentive linked to tenure and successful coverage and
guideline outcomes for Board-identified key employees to reduce the risk of these employees’
leaving employment while the Company seeks coverage certainty and inclusion in the AUA treatment
guidelines. The tenure incentive is scheduled for three years, with payments due if key employees
continue to be employed by Pacific Edge on 1 July 2024 (paid FY25), 1 July 2025 (paid FY26) and
1 July 2026 (to be paid FY27).
• Benefits such as KiwiSaver in New Zealand or 401k in the USA.
• Non-financial Benefits (e.g. health insurance in the USA, enhanced leave benefits and, enhanced
parental leave benefits).
Base salary
Salaried employees receive base Total Rewards packages that are benchmarked against similar positions
from companies in comparable industries factoring in size, complexity, responsibilities and local market
context.
Variable incentives
Short term incentives (STI)
The Company operates an STI-based scheme for the CEO and eligible senior leaders. The STI is determined
by achievement against Company and individual goals. Partial achievement of goals will correspond to a
lower payout.
The proportion of total STI that is based on Company and individual goals is related to the Employee
Band, such that higher Bands have a higher proportion of their STI based on Company goals. While STI is
typically paid in cash, an employee can elect to receive up to 50% in equity (shares) unless there are rules or
regulations that limit the Company’s ability to issue shares in a timely manner, in which case 100% of the STI
will be paid in cash.
Long term incentives (LTI)
The Company has LTI Schemes that, subject to the Board’s assessment of achievement of Company
performance goals, is designed to attract and retain key talent and capability by offering Options.
LTI generally vests annually over a three-year period, with 1/3 vesting each year on the first, second and third
anniversary after issue and with a four-year exercise window. If an employee ceases employment within one
year of employment there is no vesting. Unless there are exceptional circumstances, the exercise price for
each tranche of Options is determined by the share price on the date of Board approval. The Company offers
employees the ability to fund their option purchases utilising a cashless exercise within the Options Agreement.
Sales incentive
The Company has a sales incentive scheme that is designed to reward eligible sales employees for achieving
test volumes and activity delivered against set targets.
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
65
REMUNERATION
Total Rewards table
The table below shows the number of employees and former employees of the Group, not being Directors
of the Group, who, in their capacity as employees, received Total Rewards during the period ended 31 March
2026 totalling at least $100,000.
This includes cash and expenditure related to ordinary shares paid in lieu of cash bonuses and excludes the
value of share options that have vested but have not been exercised.
The Group operates in New Zealand, Australia, and the United States where market Total Reward
components differ. Of the employees noted in the table below, 50% are employed by the Group outside New
Zealand. The offshore Total Rewards amounts are converted into New Zealand dollars.
During the year, 74 employees or former employees of the Group, not being Directors of the Company,
received Total Rewards and other benefits that exceeded $100,000 in value as follows:
Total Reward TableFY26FY25
1,200,000 - 1,210,0001
1,120,000 - 1,130,000 1
1,070,000 - 1,080,0001
1,010,000 - 1,020,000 1
960,000 - 970,000 1
780,000 - 790,0001
700,000 - 710,000 1
640,000 - 650,00011
600,000 - 610,00021
480,000 - 490,000 1
470,000 - 480,00011
450,000 - 460,0001
440,000 - 450,00012
420,000 - 430,000 1
400,000 - 410,0002
390,000 - 400,00011
380,000 - 390,00023
370,000 - 380,00011
360,000 - 370,00012
350,000 - 360,00011
340,000 - 350,00021
330,000 - 340,00023
320,000 - 330,00011
Total Reward TableFY26FY25
310,000 - 320,00012
300,000 - 310,00011
290,000 - 300,0002
280,000 - 290,000 2
270,000 - 280,000 1
260,000 - 270,000 1
250,000 - 260,00011
240,000 - 250,0001
230,000 - 240,00012
220,000 - 230,000 2
210,000 - 220,0003
200,000 - 210,0003
190,000 - 200,00013
180,000 - 190,00031
170,000 - 180,00022
160,000 - 170,00023
150,000 - 160,00014
140,000 - 150,0003
130,000 - 140,00033
120,000 - 130,00045
110,000 - 120,000128
100,000 - 110,00087
TOTAL7472
DIRECTORS AND OFFICERS INSURANCE
In accordance with the Companies Act 1993 and the constitution of the Company, Pacific Edge indemnifies
and insures its Directors and Officers, including Directors and Officers of subsidiary companies within the
Group, in respect of liability incurred for any act or omission in their capacity as a Director or Officer of the
Company. This insurance includes defence costs. If an act or omission was to occur that was covered by this
insurance, the Company would pay the liability of the act or omission and be reimbursed by the insurer.
66
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
CONSOLIDATED
FINANCIAL
STATEMENTS
FOR THE TWELVE MONTHS ENDED 31 MARCH 2026
67
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE TWELVE MONTHS ENDED 31 MARCH 2026
Note: These Consolidated Financial Statements are to be read in conjunction with the Notes to the Consolidated Financial Statements
Notes
2026
($000)
2025
($000)
REVENUE
Operating Revenue 5 11,499 21,846
Total Operating Revenue 11,499 21,846
Other Income5 1,513 903
Interest Income9 521 1,925
Foreign Exchange (Loss) (20) (58)
Net Fair value gain on derivatives at fair value
through profit and loss
67 -
Total Revenue and Other Income 13,580 24,616
OPERATING EXPENSES
Laboratory Operations 11,606 12,490
Research6 13,431 14,631
Sales and Marketing 15,218 17,530
General and Administration7 9,103 9,901
Total Operating Expenses 49,358 54,552
NET LOSS BEFORE TAX (35,778) (29,936)
Income Tax Expense16 - -
LOSS FOR THE YEAR AFTER TAX (35,778) (29,936)
Items that may be reclassified to profit or loss:
Translation of Foreign Operations (186) 25
TOTAL COMPREHENSIVE LOSS attributable to
equity holders of the Company
(35,964) (29,911)
Earnings per share for loss attributable to the equity
holders of the Company during the year
Basic and Diluted Earnings per share3 (0.038) (0.037)
68
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE TWELVE MONTHS ENDED 31 MARCH 2026
Note: These Consolidated Financial Statements are to be read in conjunction with the Notes to the Consolidated Financial Statements
Share
Capital
Accumulated
Losses
Share
Based
Payments
Reserve
Foreign
Currency
Translation
Reserve
Total
Equity
Notes($000)($000)($000)($000)($000)
Balance as at 31 March 2024 294,400 (246,349) 5,607 964 54,622
Loss after tax - (29,936) - - (29,936)
Other Comprehensive Income - - - 25 25
TOTAL COMPREHENSIVE LOSS
attributable to equity holders of the
Company
- (29,936) - 25 (29,911)
Transactions with owners in their
capacity as owners:
Share Based Payments- Employee
Remuneration
8 58 - - - 58
Share Based Payment- Employee
Share Options
8 - 63 1,253 - 1,316
Balance as at 31 March 2025 294,458 (276,222) 6,860 989 26,085
Balance as at 31 March 2025 294,458 (276,222) 6,860 989 26,085
Loss after tax - (35,778) - - (35,778)
Other Comprehensive Income - - - (186) (186)
TOTAL COMPREHENSIVE LOSS
attributable to equity holders of the
Company
- (35,778) - (186) (35,964)
Transactions with owners in their
capacity as owners:
Issue of Share Capital (net of issue
costs)
19,547 - - - 19,547
Share Based Payments- Employee
Remuneration
8 121 - - - 121
Share Based Payment- Employee
Share Options
8 31 122 717 - 870
Balance as at 31 March 2026 314,157 (311,878) 7,577 803 10,659
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
69
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2026
For and on behalf of the Board of Directors dated the 22 day of May 2026:
Director Director
Note: These Consolidated Financial Statements are to be read in conjunction with the Notes to the Consolidated Financial Statements
Notes
2026
($000)
2025
($000)
CURRENT ASSETS
Cash and Cash Equivalents9 7,776 9,482
Short Term Deposits9 - 13,086
Receivables10 2,460 4,970
Inventory11 2,039 1,607
Derivative financial instrument 67 -
Other Assets12 1,431 1,679
Total Current Assets 13,773 30,824
NON-CURRENT ASSETS
Property, Plant and Equipment13 2,218 2,980
Right of Use Assets23 1,189 2,445
Intangible Assets14 422 781
Total Non-Current Assets 3,829 6,206
TOTAL ASSETS 17,602 37,030
CURRENT LIABILITIES
Payables and Accruals17 5,658 8,044
Borrowings - 300
Lease Liabilities23 1,159 1,413
Total Current Liabilities 6,817 9,757
NON-CURRENT LIABILITIES
Lease Liabilities23 126 1,188
Total Non-Current Liabilities 126 1,188
TOTAL LIABILITIES 6,943 10,945
NET ASSETS 10,659 26,085
Represented by:
EQUITY
Share Capital18 314,157 294,458
Accumulated Losses (311,878) (276,222)
Share Based Payments Reserve 7,577 6,860
Foreign Translation Reserve 803 989
TOTAL EQUITY 10,659 26,085
FURTHER INFORMATION
Net Tangible Assets per share ($) 0.010 0.031
70
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED 31 MARCH 2026
Note: These Consolidated Financial Statements are to be read in conjunction with the Notes to the Consolidated Financial Statements
Notes
2026
($000)
2025
($000)
CASH FLOWS TO OPERATING ACTIVITIES
Cash was provided from:
Receipts from Customers 13,230 21,572
Receipts from Research Tax Incentives and Grant
Providers
5 2,110 677
Interest Received 698 2,121
16,038 24,370
Cash was disbursed to:
Payments to Suppliers and Employees 47,996 49,097
Net GST (20) 13
47,976 49,110
Net Cash Flows To Operating Activities20 (31,938) (24,740)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash was provided from:
Proceeds from Sale of Plant and Equipment-54
Proceeds from Short Term Deposits 22,086 48,000
22,086 48,054
Cash was disbursed to:
Purchase of Short Term Deposits 9,000 40,086
Capital Expenditure on Plant and Equipment 117 867
Capital Expenditure on Intangible Assets 15 406
9,132 41,359
Net Cash Flows From Investing Activities 12,954 6,695
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash was provided from:
Ordinary Shares Issued 20,676 -
20,676 -
Cash was disbursed to:
Security deposited for Credit Cards - 146
Repayment of Borrowings300 -
Repayment of Leases- Principal23 1,426 1,266
Repayment of Leases- Interest23 130 230
Issue Expenses 1,339
3,195 1,642
Net Cash Flows From (To) Financing Activities 17,481 (1,642)
Net Decrease in Cash Held (1,503) (19,687)
Add Opening Cash Brought Forward 9,482 29,261
Effect of exchange rate changes on net cash (203) (92)
Ending Cash Carried Forward9 7,776 9,482
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
71
1. MATERIAL ACCOUNTING POLICY INFORMATION
Reporting Entity
The consolidated financial statements (hereafter referred to as the ‘financial statements’) presented for the year
ended 31 March 2026 are for Pacific Edge Limited (the ‘Company’) and its subsidiaries (collectively referred to as
the ‘Group’). The Group’s purpose is to research, develop and commercialise new diagnostic and prognostic tools
for the early detection and management of cancers.
Pacific Edge Limited is registered in New Zealand under the Companies Act 1993 and is a Financial Markets
Conduct (FMC) reporting entity under Part 7 of the Financial Markets Conduct Act 2013. The financial statements
of the Group have been prepared in accordance with the requirements of the Financial Markets Conduct Act 2013
and the NZX Listing Rules. The financial statements presented are those of the Group, consisting of the Parent
entity, Pacific Edge Limited and its subsidiaries. The Company is dual listed, with its primary listing of ordinary
shares quoted in New Zealand on the NZX Main Board, and a secondary listing in Australia as a Foreign Exempt
Entity on the ASX.
These financial statements have been approved for issue by the Board of Directors on the 22 May 2026.
Basis of Preparation
These financial statements of the Group have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (NZ GAAP). The Group is a Tier 1 for-profit entity for the purposes of complying with
NZ GAAP. The financial statements comply with New Zealand equivalents to International Financial Reporting
Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices that are applicable to
entities that apply NZ IFRS. The financial statements comply with International Financial Reporting Standards
Accounting Standards (“IFRS Accounting Standards”) as issued by the IASB.
The financial statements are presented in New Zealand Dollars, which is the Company’s functional currency and
Group’s presentation currency, and all values are rounded to the nearest thousand dollars ($000). The accounting
principles recognised as appropriate for the measurement and reporting of earnings, cash flows and financial
position on a historical cost basis have been used.
The Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows have been
prepared so that all components are stated net of GST. All items in the Consolidated Balance Sheet are stated net
of GST, with the exception of receivables and payables.
Management of Capital
The capital structure of the Group consists of equity raised by the issue of ordinary shares in the Company. The
Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern in order to provide returns for shareholders, provide benefit for other stakeholders and to maintain an
optimal capital structure to support the development of its business. The Company meets these objectives through
closely managing revenue and expenditure, and where required issues new shares.
Going Concern
The 2026 financial statements have been prepared on a going concern basis which assumes that the Company
will have sufficient cash to pay its debts as they fall due for a minimum of 12 months from the date of signing the
Financial Statements.
As at 31 March 2026, the Company has $7.776m of cash, cash equivalents and short-term deposits (2025:
$22.568m) and net assets of $10.659m (2025: $26.085m). The Company made a net loss after tax of $35.778m
(2025: loss of $29.936m). Net cash out flows from operating activities for the 12 month period to 31 March 2026
were $31.938m (2025: cash outflow $24.740m).
While the Company continues to incur operating losses, the Company remains solvent and continues to meet its
debts as they fall due.
As noted in Note 25 - Subsequent Events, the company commenced a capital raise which was released to the NZX
and ASX on 11 May 2026, targeting capital investment of $24.0m comprising an $18.0m Placement and a retail
Share Purchase Plan (SPP) of $6.0m. The Board has discretion to accept oversubscriptions in both the Placement
and SPP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE TWELVE MONTHS ENDED 31 MARCH 2026
72
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
The Placement which closed on 12 May 2026 was oversubscribed with applications accepted by the Board for
$25.4m. Cash from the Placement was received by the Company on 15 May 2026. The SPP was opened on 14 May
2026, with applications closing 28 May 2026. The Company’s forecasts assume successful completion of the SPP.
In addition to the capital raise, the company is implementing initiatives to further reduce cash burn, targeting a
cash burn of $2.5m per month for the year ending 31 March 2027.
On the basis of at least $6.0m capital raised from a successful SPP, combined with the capital raised in the
Placement ($25.4m), cash preservation initiatives approved by the Board plus existing cash on hand as at 31 March
2026 and no significant changes to the cost base or revenue assumptions of the Company, cash flow forecasts
prepared indicate that the Company has sufficient cash to meet its minimum expenditure commitments and
support its current levels of activity for at least 12 months from the date of signing the Financial Statements.
Medicare Coverage
The Company lost Medicare coverage for Cxbladder tests in the US from 24 April 2025. These tests generated
approximately 56% of Operating Revenue in the year ended 31 March 2025 and is the key contributor to the 47%
reduction in Total Operating Revenue for the year ended 31 March 2026 to $11.5m, down from $21.8m for the year
ended 31 March 2025.
The Company is seeking to regain Medicare coverage for hematuria evaluation with the issuance of a new Local
Coverage Decision (LCD). On 14 May 2026 a draft Local Coverage Determination (LCD) with foundational medical
policy for urine-based biomarkers for hematuria evaluation (DL40378) was published to the Medicare Coverage
Database, with explicit coding guidance for Cxbladder Triage and Triage Plus in the associated Local Coverage
Article (LCA) (DA60424).
The draft LCD ‘Urine-based Biomarkers in Patients with Microhematuria’ (DL40378) establishes hematuria
evaluation as a covered Medicare benefit for the first time and importantly distinguishes hematuria patients as
eligible for Cxbladder Triage and Triage Plus.
The publication of the Draft LCD is followed by a ‘notice and comment’ period (minimum of 45 days), before
then addressing the comments and finalizing the LCD. Novitas, the Medicare Administrative Contractor tasked
with determining Medicare coverage for the company’s products, may take a maximum of 365 days from draft
publication to final publication of an LCD. It is also open to Novitas to retire, rather than finalise, the draft LCD. If
finally published, the LCD takes a further 45 days for the final LCD to become effective. The company will engage
with Novitas to seek reimbursement for Triage and Triage Plus on a claim-by-claim basis during the draft period.
The finalisation of the LCD for hematuria evaluation has the potential to increase both revenue and volumes for the
Company. Combined with the February 2025 inclusion of Cxbladder Triage in the American Urological Association
Microhematuria Guidelines, the increased Medicare approved price of US$1,328 for Triage Plus, a 75% increase on
the US$760 for Triage and Monitor, and increasing policy coverage from US Commercial Payers, Medicare coverage
could result in the Board approving a phased increase to the cost base to leverage the improved commercial
environment, with a focus on transitioning to profitability.
Further capital initiatives may be required to facilitate growth in the US market. Additionally, if Medicare coverage
is not finalised or is achieved later than forecast, or if operating expenditure exceeds forecast levels, or if current
revenue forecasts are not reached further additional funding may be required.
The Directors acknowledge that there are material uncertainties in respect of the outcome and timing of the final
LCD and the Company’s access to further funding if required. These material uncertainties may cast significant
doubt on the Company’s ability to continue as a going concern and therefore it may be unable to realise its assets
and discharge its liabilities in the normal course of business.
The financial statements do not include any adjustments that may be required if the Group was unable to continue
as a going concern.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
73
Basis of Consolidation
The following entities and the basis of their inclusion for consolidation in these Financial Statements are as follows:
Name of Subsidiary
Place of
Incorporation
(or registration)
& Operation
Principal Activities
Ownership Interests
& Voting Rights
31 March
2026
%
31 March
2025
%
Pacific Edge Diagnostics
New Zealand Limited
New Zealand
Commercial Sales and Diagnostic
Laboratory Operation
100100
Pacific Edge (Australia) Pty
Limited
Australia
Commercial Sales and
Biotechnology Research
& Development
100100
Pacific Edge Diagnostics USA
Limited
USA
Commercial Sales and Diagnostic
Laboratory Operation
100100
Pacific Edge Analytical Services
Limited
New ZealandDormant Company100100
The financial statements incorporate the assets, liabilities and results of all subsidiaries of Pacific Edge Limited as at
31 March 2026 and for the year then ended. All subsidiaries have the same balance date as the Company of 31 March.
Pacific Edge Limited consolidates all entities over which Pacific Edge Limited has control. Control is achieved when
the Group:
• has power to direct the activities of the entity;
• is exposed, or has rights, to variable returns from involvement with the entity; and
• has the ability to use its power to affect its returns.
Subsidiaries which form part of the Group are consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group. The consideration
transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the
equity interest issued by the Group.
The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either
at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. Inter-company
transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised
losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Critical Accounting Estimates and Assumptions
In preparing these financial statements, the Group made estimates and assumptions concerning the future.
These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are
continually evaluated and are based on historical experience and other factors including expectations or future
events that are believed to be reasonable under the circumstances.
The Group has performed an assessment of potential climate related risks and considered the location of
laboratories and other key operations in each region that it operates in and concluded that there is no material
impact on the current financial statements.
All other material accounting policy information has been applied on a basis consistent with those used in the
audited financial statements of Pacific Edge Limited for the year ended 31 March 2025.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
74
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
2. NEW STANDARDS
NEW DISCLOSURE REQUIREMENTS AND CHANGES IN ACCOUNTING STANDARDS ADOPTED BY THE GROUP
There are no new disclosures, standards or interpretations material to the Group to be applied during the year.
NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED BY THE GROUP
The following new accounting standards and interpretations have been published that are not mandatory for
31 March 2026 reporting periods and have not been early adopted by the Group.
NZ IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18)
NZ IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18) was issued in April 2024 as replacement
for IAS 1 Presentation of Financial Statements (IAS 1). Most of the presentation and disclosure requirements would
largely remain unchanged together with other disclosures carried forward from IAS 1 IFRS 18 primarily introduces
the following:
• a defined structure for the consolidated statement of comprehensive income by classifying items into one
of the five categories: operating, investing, financing, income taxes and discontinued operations. Entities will
also present expenses in the operating category by nature, function, or a mix of both, based on facts and
circumstances;
• disclosure of management-defined performance measures non-GAAP measures in a single note together with
reconciliation requirements, and
• additional guidance on aggregation and disaggregation principles (applied to all primary financial statements
and notes).
IFRS 18 also made limited change to certain presentation and disclosure requirements in the financial statements;
as well as consequential changes to various IFRS Accounting Standards.
IFRS 18 will be effective for annual reporting periods beginning on or after 1 January 2027 and entities could
early adopt this accounting standard. The Group expects to adopt IFRS 18 and relevant consequential changes of
other accounting standards in the 2028 financial statements. The Group is currently assessing the impact and will
disclose more detailed assessments in the future.
3. EARNINGS PER SHARE
(a) Basic
Basic earnings per share is calculated by dividing the profit (or loss) attributable to equity holders of the Company
by the weighted average number of ordinary shares on issue during the year excluding ordinary shares purchased
by the Company (Note 18).
GROUP
20262025
Loss attributable to equity holders of the Company($000) (35,778) (29,936)
Weighted average number of ordinary shares on issue(000) 944,534 811,736
Earnings per share($) (0.038) (0.037)
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to
assume conversion of all dilutive potential ordinary shares. The Group’s dilutive potential ordinary shares are in the
form of share options. As the Group made a loss during the current year and losses cannot be diluted, basic and
diluted earnings per share are the same.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
75
4. LABORATORY THROUGHPUT AND COMMERCIAL TESTS –
NON-GAAP REPORTING
Laboratory Throughput is a key metric for the Group: Laboratory Throughput provides evidence of the usage
of Cxbladder products globally and the rates of adoption between different customer segments. The inclusion
of this non-GAAP reporting is considered helpful to readers of these financial statements, as it allows readers
to compare the current period to prior periods and assess usage trends on a consistent basis. Total laboratory
throughput includes commercial tests, which are invoiced to customers (including tests for patients covered by
the US government’s medical program through the Centers for Medicare and Medicaid Services (CMS)), and
tests which are not considered to be commercial as these tests relate to Research Tests or other non-chargeable
activities.
Commercial Test numbers are also a key metric for the Group: Commercial Tests are those tests for which the
Company is actively seeking reimbursement and cash receipts, and tests performed at no charge in order to
gain new customers. The inclusion of this non-GAAP reporting is considered helpful to readers of these financial
statements as it allows readers to compare the current period to prior periods and assess trends on a consistent
basis.
Laboratory Throughput and Commercial Tests per financial year are shown below.
FY26FY25
Total Laboratory Throughput (tests) 24,190 28,894
Decrease in Total Laboratory Throughput from previous year (%) (16%)(11%)
Decrease in Throughput from previous year (tests)(4,704)(3,739)
Total Commercial Tests (tests) 18,783 24,642
Decrease in Commercial Tests from previous year (%)(24%)(10%)
Decrease in Commercial Tests from previous year (tests)(5,859)(2,705)
Commercial Tests as a percentage of Total Laboratory Throughput (%)78%85%
5. REVENUE
Background information on US customers and the payment process
A physician orders a Cxbladder test when a patient presents to their clinic with symptoms that indicate the
possibility of bladder cancer. The most common and significant symptom is haematuria or blood in their urine.
A urine sample is collected from the patient and sent in the Cxbladder Urine Sampling System to the Group’s
laboratory in the US or in New Zealand. The Group receives and processes the urine sample and returns the results
of the test back to the ordering physician. The individual patient is the Group’s customer, however typically in the
US market, the patient’s insurer may pay the Group for some or all of the cost of the test.
When a physician orders a Cxbladder test, the Group has an obligation to perform the test and report the results to
the ordering physician irrespective of the patient’s insurance contract. A patient may have private insurance cover,
be covered by the US government’s medical program through CMS, self cover or have no insurance cover.
Once the Cxbladder test has been completed, all information required for insurance purposes is sent to the Group’s
billing and reimbursement agent to begin the process to collect reimbursement from any applicable insurance
companies for the Cxbladder test performed.
For patients with private insurance cover, the relevant patient and test order information will be sent to their
insurance provider. When the Group does not have an individual agreement with that insurance provider to pay
for Cxbladder tests (“out of network”), the insurance provider will assess that individual patient’s test for medical
necessity and the level of insurance cover (if any) available to cover the cost of the test. This process of assessment
can take many months to work through before the Group receives payments (if any) from the insurance company.
The Group does have agreements with some insurance providers but these currently cover a small proportion of
the Group’s customers.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
76
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
For patients covered by CMS, invoices are sent to CMS. Prior to 3 July 2020, Pacific Edge was not included in the
Local Coverage Determination (LCD) and as a result, did not normally receive any amounts for tests performed
for patients covered by CMS. On 3 July 2020, Pacific Edge received notice of inclusion in the LCD, resulting in
the Company receiving reimbursement for Cxbladder Monitor and Detect tests performed after 1 July 2020 for
patients covered by the CMS across the US that are deemed medically necessary.
The Company lost Medicare coverage for Cxbladder tests in the US from 24 April 2025. These tests generated
approximately 56% of Operating Revenue in the year ended 31 March 2025 and is the key contributor to the 47%
reduction in Total Operating Revenue for the year ended 31 March 2026 to $11.5m, down from $21.8m for the year
ended 31 March 2025.
The Company is seeking to regain Medicare coverage for hematuria evaluation with the issuance of a new Local
Coverage Decision (LCD). On 14 May 2026 a draft Local Coverage Determination (LCD) with foundational medical
policy for urine-based biomarkers for hematuria evaluation (DL40378) was published to the Medicare Coverage
Database, with explicit coding guidance for Cxbladder Triage and Triage Plus in the associated Local Coverage
Article (LCA) (DA60424).
The draft LCD ‘Urine-based Biomarkers in Patients with Microhematuria’ (DL40378) establishes hematuria
evaluation as a covered Medicare benefit for the first time and importantly distinguishes hematuria patients as
eligible for Cxbladder Triage and Triage Plus.
The publication of the Draft LCD is followed by a ‘notice and comment’ period (minimum of 45 days), before
then addressing the comments and finalizing the LCD. Novitas, the Medicare Administrative Contractor tasked
with determining Medicare coverage for the company’s products, may take a maximum of 365 days from draft
publication to final publication of an LCD. Once finally published, the LCD takes a further 45 days for the final LCD
to become effective. The company will engage with Novitas to seek reimbursement for Triage and Triage Plus on a
claim-by-claim basis during the draft period.
For uninsured patients, the Group has no certainty of when or if the patient will pay.
Rest of World Customers
Revenue from Rest of World customers is primarily from Health New Zealand | Te Whatu Ora. In all Rest Of World
locations, there is a clearly defined contract with the customer meeting the requirements of NZ IFRS 15. Pacific
Edge Diagnostics New Zealand Limited has individual contracts with regions across New Zealand and revenue is
recognised as described on the following pages.
Critical Accounting Estimate
The application of NZ IFRS 15: Revenue from contracts with customers (NZ IFRS 15) requires the application of
significant judgement in determining whether the Group meets the five key criteria identified in NZ IFRS 15, which
allows revenue to be recognised as performance obligations are satisfied. For the Group this would result in some
revenue recognised in advance of the receipt of cash.
The significant judgements adopted by the Group relate to:
- determining if a contract with the customer exists;
- identifying the rights of each party;
- identifying the payment terms;
- ensuring the contract has commercial substance; and
- determining whether it is probable that the Group will collect the consideration to which it is entitled.
While there has been significant judgement applied to all five criteria, there are two criteria that have higher levels
of uncertainty, requiring increased levels of judgement. The significant judgements applied to determine the
Transaction Price and determining the probability of collecting consideration are detailed in the Accounting Policy
relating to Revenue from Cxbladder Tests.
ACCOUNTING POLICY
Revenue from Cxbladder tests – USA
The Group performs Cxbladder tests when requested by a patient’s physician. At the point the test results are
returned to the physician, the Group has satisfied its performance obligation and has the right to issue an invoice.
Revenue can be recognised at this point in time. On return of the test result, the Group has determined a contract
exists, that the payment terms are identified, that the contract has commercial substance and there has been
identification of the rights of each party.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
77
On the 3 July 2020, Pacific Edge received notice of inclusion in the LCD, resulting in the Company receiving
reimbursement for Cxbladder Triage, Monitor and Detect tests performed after 1 July 2020 until the loss of
coverage on 24 April 2025 for patients covered by the CMS across the US that are deemed medically necessary.
Reimbursement for these tests is at the already determined national CMS price for Cxbladder Triage, Detect and
Monitor of US$760 per test, less a 2% sequestration fee.
Since Cxbladder’s inclusion in the LCD until the loss of coverage, based on historical data, the Group has been able
to reliably estimate both the probability and size of payment received from the CMS. The inclusion within the LCD
combined with the growing support for the use of Cxbladder within the US has also allowed the Group to reliably
estimate both the probability and size of payment received from customers covered by Medicare Advantage
policies provided by private insurers and customers covered by the Veterans Affairs and Kaiser Permanente.
Tests performed for patients covered by other private policies, or tests performed for those with no insurance
cover and tests performed for the CMS after 24 April 2025 continue to be recognised as revenue when cash is
collected and the Group has satisfied its performance obligations and that the contract is considered terminated
and the amount received is non-refundable. Revenue is recognised on a cash basis is due to not being able to
reliably estimate both probability and size of payment received. Management continually re-assess its probability
to collect payments to be able to account for the transaction under NZ IFRS 15.
The Group have concluded that the contracts with the CMS before 24 April 2025 and customers covered
by Medicare Advantage, Veterans Affairs and Kaiser Permanente include variable consideration because the
amounts paid by Medicare, Veterans Affairs, Kaiser Permanente or the commercial health insurance carriers that
provide Medicare Advantage may be paid at less than our standard rates or not paid at all, with such differences
considered implicit price concessions. Variable consideration attributable to these price concessions is measured
at the expected value, and are determined by historical average collection rates by test type and payor category
taking into consideration the range of possible outcomes and predictive value of our past experiences. Such
variable consideration is included in the transaction price only to the extent it is probable that a significant reversal
in the amount of cumulative revenue recognised will not occur.
As a result of the Significant Judgements applied, the Group have determined the criteria under NZ IFRS 15 which
allows revenue to be recognised in advance of the receipt of cash have been met, and the Group has recognised
revenue for tests which were performed from 1 October 2025 to 31 March 2026 (6 months prior to balance date)
for which payment has not been received by 31 March 2026 from Veterans Affairs and Medicare Advantage.
Following a change in commercial agreement, revenue for Kaiser Permanente is recognised in the month the test is
performed. For the Financial Statements to 31 March 2025, CMS revenue was recognised in advance of the receipt
for tests performed if payment had not been received by 31 March 2025.
Rest of World revenue recognition from tests performed
There has been no change in accounting policy or estimates for Operating Revenue for the Rest of World. The
Group performs Cxbladder tests when requested by a patient’s physician in New Zealand, Australia and Southeast
Asia. At the point the test results are returned to the physician, the Group has satisfied its performance obligation.
At the end of the month an invoice is issued to the customer based on the number of tests performed. Revenue is
recognised when the invoice is issued.
OTHER INCOME
Grant Income
Government Grants are not recognised until there is reasonable assurance that the Group will comply with the
conditions attached to them and that the grants will be received. Government Grants are recognised in Other
Income in the consolidated Statement of Comprehensive Income, on a systematic basis over the periods in which
the Group recognises the related costs as expenses for which the grants are intended to compensate.
The Company receives grants from Callaghan Innovation for postgraduate internships and summer students.
All conditions of the grants have been complied with.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
78
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Research Rebates and Tax Incentives
- New Zealand R&D Tax Incentive (RDTI)
The New Zealand RDTI is a 15% tax credit on the money invested in eligible research and development (R&D) that
has occurred in New Zealand. As the New Zealand companies are in a tax loss position, the Group is eligible for the
Tax Incentive to be refunded.
The RDTI is recognised at its fair value where there is a reasonable assurance that the credit will be received and
the Group will comply with all attached conditions.
All conditions of the New Zealand RDTI have been complied with. Payment will be received after submission of
each annual research and development tax claim.
For the year ended 31 March 2026 Pacific Edge received payment for the 2025 and 2024 RDTI.
- Australia Cxbladder Research Rebate
A Cxbladder research programme is administered by Pacific Edge (Australia) Pty Limited and tax rebates are
received as a result of this programme.
The Cxbladder research rebate is recognised at its fair value where there is a reasonable assurance that the rebate
will be received and the Group will comply with all attached conditions.
For the year ended 31 March 2026, all conditions of the research rebate have been complied with, and with Group
Revenue under $20m Australian Dollars, the fair value of research rebates have been recognised as revenue. For
the year ended 31 March 2025, Group revenue was over $20m Australian Dollars, resulting in research rebates being
issued as a tax credit. The Tax Credit is not recognised as a tax asset in the financial statements for the year ended
31 March 2025.
REVENUE AND OTHER INCOME
2026
($000)
2025
($000)
Cxbladder Sales
– US - Accrual Accounting7,957 17,517
– US - Cash Accounting 1,576 2,565
– Total US Sales 9,533 20,082
– Rest Of World 1,966 1,764
Total Operating Revenue 11,499 21,846
Other Income
Grant Revenue 46 22
Research Rebates and Tax Incentives 1,467 881
Total Other Income 1,513 903
6. RESEARCH AND DEVELOPMENT COSTS
ACCOUNTING POLICY
Research is the original and planned investigation undertaken with the prospect of gaining new scientific
knowledge and understanding. This includes: direct and overhead expenses for diagnostic and prognostic
biomarker discovery and research; pre-clinical trials; and costs associated with clinical trial activities. All research
costs are expensed when incurred.
Development is the application of research findings to a plan or design for the production of new or substantially
improved processes or products prior to the commencement of commercial production.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
79
When a project reaches the stage where it is probable that future expenditure can be recovered through the
process or products produced, expenditure that is directly attributed or reasonably allocated to that project is
recognised as a development asset within intangible assets. If the expenditure also benefits processes or products
for which it cannot be recovered, it will be expensed. The asset will be amortised from the date of commencement
of commercial production of the product to which it relates on a straight-line basis over the period of expected
benefit. Development assets are reviewed annually for any impairment in their carrying value.
GROUP
Notes
2026
($000)
2025
($000)
Research Expenses 13,431 14,631
Includes:
Employee Benefits8 7,318 7,775
7. GENERAL AND ADMINISTRATION EXPENSES
GROUP
Notes
2026
($000)
2025
($000)
Amortisation14 186 286
Auditors Remuneration: PricewaterhouseCoopers New Zealand
- Group year end financial statements
- Half year review of financial statements
- Travel costs
203
35
12
198
35
10
Other assurance services provided by PricewaterhouseCoopers
New Zealand
- Assurance on Carbon Emissions - Scope 1 and 2 - 30
Other services provided by PricewaterhouseCoopers New Zealand
- Financial Training Workshops - 1
Depreciation13 424 420
Depreciation on Right of Use Assets23 219 206
Directors Fees22 630 470
Employee Benefits8 3,998 4,694
Insurance 581 634
Interest on Lease Liabilities23 21 35
Legal Fees 910 611
NZX, ASX and Registry Fees 203 230
Other Operating Expenses 1,681 2,041
9,103 9,901
Note: Amounts displayed for Amortisation, Depreciation, Employee Benefits are only the General and Administration Expenses
component of the total expenses. Refer to relevant notes for full expense disclosure.
Other Operating Expenses
The major categories of expenditure which make up General and Administration Expenses, but are not disclosed
separately above are Information Technology costs, Compliance and Regulatory costs, Investor Relations costs,
Consultants and Contractors.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
80
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
8. EMPLOYEE BENEFITS
GROUP
Notes
2026
($000)
2025
($000)
Represented by:
Cash Employee Benefits:
Lab Operations 3,6863,619
Research67,3187,775
Sales and Marketing9,71311,555
General and Administration73,9984,694
Total Employee Benefits24,71527,643
Employee Share Scheme
The Company has an Employee Share Scheme where ordinary shares in the Company may be issued to selected
employees to recognise performance or a significant contribution to the Company. These shares may be issued
in lieu of a cash bonus or in addition to the employee’s remuneration. The ordinary shares are issued directly to
the employee and the Company accounts for the cost of the shares. The shares are allocated to the employee on
the date that the Board approves the issue of the share capital. All employees who hold ordinary shares in the
Company must comply with the Company’s Share Trading Policy.
The issuance of ordinary shares to employees is treated as equity settled share-based payments. Equity-settled
share-based payments to employees are measured at the fair value of the equity instruments at the grant date
based on the market price at the time of issuance. The fair value of shares granted is recognised as an employee
expense in the Consolidated Statement of Comprehensive Income when the shares are issued. During the 2026
financial year, 999,751 (2025: 644,630) ordinary shares were issued to employees as part of the Employee Share
Scheme. The associated non-cash cost of these shares was $121,000 (2025: $58,000). Refer to Note 18 for further
details on the shares issued during the financial year.
Attract and Retain Options
The Board believes that the issue of share options provides an appropriate incentive for participating employees to
grow the total shareholder return of the Company.
Attract and retain options are issued to selected employees as a long-term component of remuneration in
accordance with the Group’s remuneration policy. Incentive Options entitle the holder, on payment of the exercise
price, to one ordinary share of the Company.
The exercise price of the granted options is determined using the fair value of the Company’s share price at the
time of the options being granted.
Incentive Options issued prior to 31 March 2022 generally vest over three years and contain the requirement to
remain as an employee of the Company in order for the options to vest. Tranches of options are exercisable over
four to ten years from the relevant vesting date. No options can be exercised later than the tenth anniversary of the
final vesting date.
Options issued after 1 April 2022 to 31 March 2024 generally vest equally in three tranches over a four year period,
with 1/3 on the second, third and fourth anniversary of the issue. The Options are exercisable up to four years after
vesting date. Option holders are required to remain as an employee of the Company in order for options to vest.
No options can be exercised later than the fourth anniversary of the final vesting date. The exercise price increases
annually for each vested tranche at the equity cost of capital.
Options issued after 1 April 2024 generally vest equally in in three tranches over a three year period, with 1/3 on
the first, second and third anniversary of the issue. The Options are exercisable up to four years after vesting date.
Option holders are required to remain as an employee of the Company in order for options to vest. No options can
be exercised later than the fourth anniversary of the final vesting date. The exercise price increases annually for
each vested tranche at the equity cost of capital.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
81
ACCOUNTING POLICY
All options are accounted for as equity settled share based payments as the Group has no legal or constructive
obligation to repurchase or settle in cash. The fair value of all options granted is recognised as an expense in the
Consolidated Statement of Comprehensive Income over their vesting period, with a corresponding increase in
the employee share option reserve. The options expense for the year ended 31 March 2026 was $866,569 (2025:
$1,316,819).
The fair value is determined at the grant date of the options and expensed on a straight-line basis over the vesting
period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase
in equity. At the end of each reporting period, the Group revisits its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in the Consolidated
Statement of Comprehensive Income such that the cumulative expense reflects the revised estimate, with a
corresponding adjustment to the share based payments reserve.
During the financial year ended 31 March 2026, there were 426,031 share options exercised (2025: Nil). The
resulting increase in share capital was $31,000 (2025: $Nil).
Movements in the number of options outstanding and their related weighted average exercise prices are as follows:
GROUP
20262025
Weighted average
exercise price
$
Options
#
Weighted average
exercise price
$
Options
#
Outstanding at 1 April0.38 40,326,767 0.45 31,892,174
Granted0.14 9,879,295 0.12 9,165,532
Forfeited 0.26 (3,867,174) 0.33 (635,939)
Exercised 0.10 (426,031)--
Expired 0.64 (239,159)0.69 (95,000)
Outstanding at 31 March0.34 45,673,698 0.38 40,326,767
Exercisable at 31 March0.40 21,922,376 0.52 14,435,570
The Group used the Black-Scholes valuation model to determine the fair value of the equity instruments granted.
The Black-Scholes valuation model has been determined as the most appropriate method as it estimates the
theoretical value of options taking into account the impact of time and other risk factors. The significant inputs into
the Black-Scholes valuation model were the market share price at grant date, the exercise price shown below, the
expected annualised volatility of 50-106%, a dividend yield of 0%, an expected option life of between one and ten
years and an annual risk-free interest rate of between 0.65% and 5.63%.
The volatility measured is the standard deviation of continuously compounded share returns and is based on a
statistical analysis of daily share prices in the past one to ten years.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
82
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Share options outstanding at the end of the reporting periods have the following expiry dates, vesting dates,
exercise prices and movements for the year ended 31 March 2026:
IssuedExpiryLow Exercise Price ($)High Exercise Price ($)Weighted Average Exercise Price ($)Opening OptionsIssuedForfeitedExercisedExpiredClosing OptionsExercisable
Apr 2014 -
Mar 2015
Sept 2024 -
Jan 2028
0.69 0.69 0.71 433,441 - - - (154,159) 279,282 279,282
Apr 2015 -
Mar 2016
Sept 2025 -
Mar 2029
0.50 0.50 0.52 332,399 - - - (85,000) 247,399 247,399
Apr 2016 -
Mar 2017
Nov 2026 -
Jan 2030
0.48 0.48 0.57 327,607 - - - - 327,607 327,607
Apr 2017 -
Mar 2018
May 2028 -
Feb 2031
0.28 0.28 0.50 2,770,899 - - - - 2,770,899 2,770,899
Apr 2018 -
Mar 2019
Jun 2029 -
Nov 2031
0.23 0.23 0.24 69,098 - - - - 69,098 69,098
Apr 2019 -
Mar 2020
Aug 2030 -
Aug 2032
0.23 0.23 0.23 4,037,267 - - - - 4,037,267 4,037,265
Apr 2020 -
Mar 2021
Jun 2031 -
Jun 2033
0.22 0.22 0.31 2,142,108 - - - - 2,142,108 2,142,108
Apr 2021 -
Mar 2022
Aug 2032 -
Aug 2034
1.23 1.23 1.23 341,089 - - - - 341,089 341,090
Apr 2021 -
Mar 2022
Feb 2027 -
Feb 2031
1.15 1.15 1.23 3,000,000 - - - - 3,000,000 2,400,000
Apr 2022 -
Mar 2023
Dec 2026 -
Dec 2030
0.48 0.48 0.60 3,648,737 - (320,881) - - 3,327,856 2,645,568
Apr 2023 -
Mar 2024
Apr 2029 -
Oct 2031
0.25 0.25 0.29 14,058,590 - (1,462,968) - - 12,595,622 4,264,052
Apr 2024 -
Mar 2025
Jul 2029 -
Dec 2031
0.10 0.10 0.12 9,165,532 -(1,442,084)(426,031) - 7,297,417 2,398,008
Apr 2025 -
Mar 2026
Aug 2030 -
Aug 2032
0.12 0.12 0.13 - 9,879,295 (641,241) - - 9,238,054 -
TOTALS0.3440,326,7679,879,295(3,867,174)(426,031)(239,159)45,673,69821,922,376
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
83
9. CASH, CASH EQUIVALENTS AND SHORT TERM DEPOSITS
ACCOUNTING POLICY
Cash and cash equivalents includes cash in hand and deposits held on call with banks, and bank overdrafts. Term
deposits are also presented as cash equivalents if they have a maturity of three months or less from acquisition
date.
Short Term Deposits and Cash Equivalents include investments with ANZ, BNZ, Kiwibank, Westpac and Wells
Fargo (2025: ANZ, BNZ, Kiwibank, Westpac and Wells Fargo), with periods ranging up to 365 days. Funds held on
term deposit with ANZ, BNZ Westpac and Kiwibank can be accessed with one month’s notice at the request of the
authorised bank signatories of Pacific Edge Limited, but may incur fees and/or charges for early access.
GROUP
2026
($000)
2025
($000)
Cash and Cash Equivalents7,7769,482
Short Term Deposits-13,086
Total Cash, Cash Equivalents and Short Term Deposits7,77622,568
NZD3,61517,982
USD4,1014,493
AUD5880
EUR213
Total Cash, Cash Equivalents and Short Term Deposits7,77622,568
INTEREST INCOME
ACCOUNTING POLICY
Interest income is recognised using the effective interest method.
Interest on the bank balances ranges from 0% to 3.05% (2025: 0% to 5.70%) per annum.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
84
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
10. RECEIVABLES
ACCOUNTING POLICY
Receivables are initially measured at fair value and subsequently measured at amortised cost using the effective
interest rate method, less any provision for impairment. An allowance for impairment is made up of expected
credit losses based on the assessment of the trade receivables debt at the individual level for impairment, plus an
additional allowance on the remaining balance for potential credit losses not yet identified.
GROUP
2026
($000)
2025
($000)
Trade Receivables 1,094 2,825
Sundry Debtors 1,321 1,903
Accrued Interest 1 178
GST Refund Due 44 64
Total Receivables 2,460 4,970
There is no provision for impairment relating to the revenue from Cxbladder sales in New Zealand. All outstanding
sales are current and there are no expected credit losses on the amounts outstanding at balance date.
US Trade Receivables includes a provision for future refunds of $172,000 (2025: $263,000).
Sundry Debtors include accruals for grants and rebates that have not yet been paid. These are expected to be paid
once the relevant claims have been submitted. The Company has met all conditions of the claims and there is no
indication that there is impairment of these balances.
Included in trade receivables are the below amounts which were past due but not impaired. These relate to a
number of customers for whom there is no history of default.
GROUP
2026
($000)
2025
($000)
3 to 6 Months 99 280
Over 6 Months 34 261
Total Overdue Trade Receivables 133 541
The foreign currency split of Receivables is:
GROUP
2026
($000)
2025
($000)
NZD 1,073 2,301
USD 827 2,643
AUD 558 26
SGD 2 -
Total Receivables 2,460 4,970
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
85
11. INVENTORY
ACCOUNTING POLICY
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average
formula.
GROUP
2026
($000)
2025
($000)
Laboratory Supplies 2,039 1,607
Total Inventory 2,039 1,607
The major items of Inventory are laboratory reagents, chemicals and Cxbladder urine sampling systems.
Laboratory supplies used during the year of $2,386,000 (2025: $2,672,000) are included within the Consolidated
Statement of Comprehensive Income in Laboratory Operations and Research.
12. OTHER ASSETS
GROUP
2026
($000)
2025
($000)
Prepayments
989 1,239
Security Deposits
442 440
Total Other Assets
1,431 1,679
Prepayments are largely made up of insurance, industry conferences and subscriptions. Security deposits are paid to
secure properties for lease in the US and to secure credit cards in the US.
13. PROPERTY, PLANT AND EQUIPMENT
ACCOUNTING POLICY
Property, Plant and Equipment are those assets held by the Group for the purpose of carrying on its business activities
on an ongoing basis. All Property, Plant and Equipment is stated at cost less subsequent accumulated depreciation
and any accumulated impairment losses. The cost of purchased assets includes the original purchase consideration
given to acquire the assets, and the value of other directly attributable costs that have been incurred in bringing the
assets to the location and condition necessary for their intended service. This includes the laboratory equipment for
the establishment of the laboratories.
Gains and losses on disposals are determined by comparing the net proceeds with the carrying amount and are
recognised within the Consolidated Statement of Comprehensive Income when they occur.
Depreciation
Depreciation of plant and equipment is based on writing off the assets over their useful lives, using the straight line
(SL) basis in the US and the diminishing value (DV) basis in New Zealand.
Main rates used are:
DVSL
Plant and Laboratory Equipment10% - 50%5 Years
Computer Equipment10% - 50%5 Years
Leasehold Improvements8% - 25%15 Years
Furniture and Fittings8% - 50%7 Years
The assets’ useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
86
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Plant &
Laboratory
Equipment
($000)
Computer
Equipment
($000)
Leasehold
Improvements
($000)
Furniture
& Fittings
($000)
Total
($000)
Cost
Balance at 1 April 20244,0306684032715,372
Additions 704 146 - 17 867
Disposals (268) (66) - (13) (347)
Translation difference1081281129
Balance at 31 March 20254,5747604112766,021
Balance at 1 April 20254,5747604112766,021
Additions 44 71 - 2 117
Disposals (201) (77) - (6) (284)
Translation difference (7) 2 - - (5)
Balance at 31 March 20264,4107564112725,849
Accumulated Depreciation
Balance at 1 April 2024 1,677 390 237 143 2,447
Depreciation expense 661 140 36 24 861
Disposals (251) (53) - (11) (315)
Translation difference 36 7 5 - 48
Balance at 31 March 20252,1234842781563,041
Balance at 1 April 2025 2,123 484 278 156 3,041
Depreciation expense 678 114 35 26 853
Disposals (199) (72) - (5) (276)
Translation difference 8 5 - - 13
Balance at 31 March 2026 2,610 531 313 177 3,631
Carrying Amounts
At 1 April 2024 2,353 278 166 128 2,925
At 31 March 2025 2,451 276 133 120 2,980
At 31 March 2026 1,800 225 98 95 2,218
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
87
14. INTANGIBLE ASSETS
ACCOUNTING POLICY
Intellectual Property
The costs of acquired Intellectual Property are recognised at cost. All Intellectual Property has a finite life.
The carrying value of Intellectual Property is reviewed for impairment, where indicators of impairment exist.
Amortisation is charged on a diminishing value basis over the estimated useful life of the intangible assets (1-20
years). The estimated useful life and amortisation method is reviewed at the end of each reporting period.
The following costs associated with Intellectual Property are expensed as incurred during the research phases of
a project and are only capitalised when incurred as part of the development phase of a process or product within
development assets: Internal Intellectual Property costs including the costs of patents and patent application.
Software Development Costs
Costs associated with the development of software are held at cost. Amortisation is charged on a diminishing value
basis over the estimated useful life of the intangible assets (2-10 years). The estimated useful life and amortisation
method is reviewed at the end of each reporting period.
Software
Development
Costs
($000)
Patents
($000)
Total
($000)
Cost
Balance at 1 April 20242,7046303,334
Additions406-406
Disposals(42)-(42)
Foreign Translation Difference2-2
Balance at 31 March 20253,0706303,700
Balance at 1 April 20253,0706303,700
Additions15-15
Disposals(798)(40)(838)
Balance at 31 March 20262,2875902,877
Accumulated Amortisation
Balance at 1 April 20241,8675172,384
Amortisation expense54130571
Disposals(38)-(38)
Foreign Translation difference2-2
Balance at 31 March 20252,3725472,919
Balance at 1 April 20252,3725472,919
Amortisation expense35418372
Disposals(796)(40)(836)
Balance at 31 March 20261,9305252,455
Carrying Amounts
At 1 April 2024837113950
At 31 March 202569883781
At 31 March 202635765422
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
88
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
15. SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Chief Executive Officer who makes strategic
decisions.
There are two operating segments at balance date:
1. Commercial: The sales, marketing, laboratory and support operations to run the commercial businesses worldwide.
2. Research: The research and development of diagnostic and prognostic products for human cancer.
The reportable operating segment Commercial derives its revenue primarily from sales of Cxbladder tests and
the reportable operating segment Research derives its revenue primarily from grant income. The Chief Executive
Officer assesses the performance of the operating segments based on their net loss for the period.
Segment income, expenses and profitability are presented on a gross basis excluding inter-segment eliminations
to best represent the performance of each segment operating as independent business units. The segment
information provided to the Chief Executive Officer for the reportable segment described above, for the year
ended 31 March 2026, is shown below.
2026
Commercial
($000)
Research
($000)
Less:
Eliminations
($000)
Total External
Income
($000)
Income
Operating Revenue – External11,505 - (6)11,499
Other Income1,1395,219 (4,845)1,513
Interest Income9512 - 521
Foreign Exchange (Loss) (10) (10) - (20)
Unrealised FX Gain on Forward Contracts - 67 - 67
Total Income12,6435,788 (4,851)13,580
Expenses
Other Expenses18,7318,150 (4,851)22,030
Employee Benefits14,67710,038 - 24,715
Depreciation & Amortisation 1,876 737 - 2,613
Total Operating Expenses35,28418,925 (4,851)49,358
Loss Before Tax (22,641) (13,137) - (35,778)
Income Tax Expense - - - -
Loss After Tax (22,641) (13,137) - (35,778)
Net Cash Flow to Operating Activities (20,655) (11,283) - (31,938)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
89
2025
Commercial
($000)
Research
($000)
Less:
Eliminations
($000)
Total External
Income
($000)
Income
Operating Revenue – External 21,852 - (6) 21,846
Other Income 1,237 4,757 (5,091) 903
Interest Income 12 1,913 - 1,925
Foreign Exchange (Loss) (2) (56) - (58)
Total Income 23,099 6,614 (5,097) 24,616
Expenses
Other Expenses 19,636 9,612 (5,097) 24,151
Employee Benefits 16,532 11,111 - 27,643
Depreciation and Amortisation 1,864 894 - 2,758
Total Operating Expenses 38,032 21,617 (5,097) 54,552
Loss Before Tax (14,933) (15,003) - (29,936)
Income Tax Expense - - - -
Loss After Tax (14,933) (15,003) - (29,936)
Net Cash Flow to Operating Activities (13,031) (11,709) - (24,740)
Eliminations
These are the intercompany transactions between the subsidiaries and the Parent. These are eliminated on
consolidation of Group results. The Research segment of the business utilise consumables and other components
that are purchased by the Commercial segments of the business, with the costs of these components allocated to
Research segment, and the Commercial segment recognising revenue from the sale.
Segment Assets and Liabilities Information
2026
Commercial
($000)
Research
($000)
Total
($000)
Total Assets 7,499 10,103 17,602
Total Liabilities 3,603 3,340 6,943
2025
Commercial
($000)
Research
($000)
Total
($000)
Total Assets 11,257 25,773 37,030
Total Liabilities 6,449 4,496 10,945
Additions to Non Current Assets for the period include:
Commercial
($000)
Research
($000)
Total
($000)
Property, Plant and Equipment 111 6 117
Right of Use Assets 166 - 166
Intangible Assets 15 - 15
Total Additions to Non Current Assets 292 6 298
The amounts provided to the Chief Executive Officer with respect to total assets and total liabilities are measured
in a manner consistent with that of the financial statements. These assets and liabilities are allocated based on the
operation of the segment and the physical location of the asset.
There are no unallocated assets or liabilities.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
90
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Geographic Split of Revenue and Non-Current Assets
The Group generates most of the operating revenue from Commercial tests from the US and New Zealand and also
receives Grant revenue from New Zealand. Rest of World consists of Revenue from Australia and Southeast Asia.
2026
($000)
2025
($000)
Operating and Grant Revenue
US 9,613 20,143
New Zealand 2,778 2,499
Rest of World 621 107
Total Operating and Grant Revenue 13,012 22,749
2026
($000)
2025
($000)
Non-Current Assets
US 1,846 3,455
New Zealand 1,982 2,750
Rest of World 1 1
Total Non-Current Assets 3,829 6,206
16. INCOME TAX
ACCOUNTING POLICY
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Consolidated
Statement of Comprehensive Income, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income
or directly in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements in accordance with NZ
IAS 12. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by
the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
The Company and Group has incurred an operating loss for the 2026 financial year and no income tax is payable.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
91
GROUP
2026
($000)
2025
($000)
Income tax recognised in the Consolidated Statement of
Comprehensive Income
Current tax expense - -
Deferred Tax in respect of the Current Year (5,788) (4,366)
Adjustments to deferred tax in respect to Prior Years 83 1,232
Deferred Tax Assets not recognised 5,705 3,134
Income tax expense - -
The prima facie income tax on Pre-Tax Accounting Profit
from operations reconciles to:
Accounting loss before income tax (35,778) (29,936)
At the statutory Income Tax rate of 28% (10,018) (8,382)
Non-deductible Expenses 2,749 4,764
Difference in US and Australian Income Tax Rates 1,481 891
Prior Period Adjustment 83 1,232
Tax Losses Utilised - (1,639)
Deferred Tax Assets not recognised 5,705 3,134
Income tax expense reported in the Consolidated Statement
of Comprehensive Income
- -
Tax Losses
The group has losses to carry forward of approximately $196,022,000 (2025: $169,288,000) with a potential tax
benefit of $43,171,000 (2025: $37,174,000). The tax losses are split between the following jurisdictions:
Tax Losses
($000)
Tax Effect
($000)Rate
New Zealand
15,465 4,330 28%
Australia
10,269 3,081 30%
United States
170,288 35,760 21%
Tax losses are available to be carried forward and offset against future taxable income subject to the various
conditions required by income tax legislation being complied with.
Deferred Research and Development Tax Expenditure:
The Group also has deferred research and development tax expenditure of $72,827,000 (2025: $67,113,000) to
carry forward and claim for income tax purposes in New Zealand in the future. This has a tax effect of $20,392,000
(2025: $18,792,000). The deferred research and development tax expenditure can either be carried forward and
offset against future income arising from the research and development, or subject to meeting the shareholder
continuity requirements can be offset against future other taxable income.
Deferred Tax Assets:
The Group does not recognise a deferred tax asset in the Consolidated Balance Sheet.
Imputation Credit Account
The Group has imputation credits of Nil (2025: Nil).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
92
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
17. PAYABLES AND ACCRUALS
ACCOUNTING POLICY
Trade and Other Payables Due Within One Year
Trade payables are recognised at the value of the invoice received from a supplier. The carrying value of trade
payables is considered to approximate fair value as amounts are unsecured and are usually paid by the 30th of the
month following recognition.
GROUP
2026
($000)
2025
($000)
Trade Creditors 1,409 2,639
Accrued Expenses 1,362 1,265
Employee Entitlements (refer below) 2,887 4,140
Total Payables and Accruals 5,658 8,044
Payables and accruals are non-interest bearing and are normally settled on 30 day terms, therefore their carrying
value approximates their fair value.
The foreign currency split for Payables and Accruals is:
GROUP
2026
($000)
2025
($000)
NZD 1,809 2,218
AUD 1,092 1,043
USD 2,739 4,722
EUR 18
-
CAD
- 61
5,658 8,044
Employee Entitlements
Employee entitlements are measured at values based on accrued entitlements at current rates of pay. These include
salaries and wages accrued up to balance date and annual leave earned to, but not yet taken at balance date.
GROUP
2026
($000)
2025
($000)
Payroll Taxes 156 192
Holiday Pay 752 634
Accrued Wages 1,969 3,275
Long Service Leave 10
39
Total Employee Entitlements 2,887 4,140
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
93
18. SHARE CAPITAL
ACCOUNTING POLICY
Ordinary shares are described as equity.
Issue expenses, including commission paid, relating to the issue of ordinary share capital, have been written off
against the issued share price received and recorded in the Consolidated Statement of Changes in Equity.
Equity-settled share-based payments to employees and others providing services are measured at the fair value of
the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share
based transactions are set out in Note 8.
GROUP
2026
($000)
2025
($000)
Ordinary Shares Authorised 314,157 294,458
Total Share Capital 314,157 294,458
All fully paid shares in the Group are Authorised and have equal voting rights and equal rights to dividends.
All Ordinary Shares are fully paid and have no par value.
Share Capital Group
2026
(000)
2026
($000)
2025
(000)
2025
($000)
Opening Balance 811,916 294,458 811,271 294,400
Issue of Ordinary Shares
- Placement
1
160,729 16,073 --
- Retail Offer
2
46,622 4,662 --
- Employee Remuneration
3
736 77 645 58
- Directors Fees
4
1,508 151 --
- Employee Sign-on Incentive
5
263 43 --
- Exercise of Options
6
233 31 --
- Employee Share Issue Expense
7
625 63 --
Less Share Issue Expense-(1,401) --
Movement 210,716 19,699 645 58
Closing Balance 1,022,632 314,157 811,916 294,458
1) During the period 160,728,498 shares were issued resulting from a Share Placement at an average price of $0.100 per share.
(2025: Nil)
2) During the period 46,621,913 shares were issued resulting from a Share Retail Offer at an average price of $0.100 per share. (2025:
Nil)
3) During the period 736,475 shares were issued as part of employees remuneration in lieu of cash payments at an average price of
$0.105 per share. (2025: 644,630 at $0.090).
4) During the period 1,507,600 shares were issued to Directors in lieu of Directors Fees at an average price of $0.100 per share.
(2025: Nil)
5) During the period 263,276 shares were issued to employees as non-cash consideration at an average price of $0.165 per share, in
recognition of joining the Company as an employee in lieu of a cash incentive (2025: Nil)
6) During the period 232,842 shares were issued as a result of employees exercising 426,031 share options at an average exercise
price of $0.101 per share (2025: Nil)
7) During the period 625,000 shares were issued as Non-cash consideration, being in recognition of providing legal advice during
the capital raise an average price of $0.100 per share. (2025: Nil)
There are 1,022,631,578 (2025: 811,915,974) ordinary shares on issue.
All fully paid shares in the Company have equal voting rights and equal rights to dividends. All Ordinary Shares are
fully paid and have no par value.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
94
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
19. FOREIGN CURRENCY
ACCOUNTING POLICIES
Foreign Currency Transactions
The individual financial statements of the Group are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the Group financial
statements, the results and financial position of the Group entity are expressed in New Zealand dollars (‘NZ$’),
which is the functional currency of the Parent and the presentation currency for the Group financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recorded at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at the end of the reporting period. Non monetary items denominated in foreign
currencies are translated at the rates prevailing on the date the transaction occurs.
Exchange differences are recognised in the Consolidated Statement of Comprehensive Income in the period in
which they arise.
Foreign Operations
For the purpose of presenting the Group financial statements, the assets and liabilities of the Group’s foreign
operations are expressed in New Zealand dollars using exchange rates prevailing at the end of the reporting
period. Income and expense items are translated at the average exchange rates for the period, unless exchange
rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions
are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated as
a separate component of equity in the Group’s foreign currency translation reserve. Such exchange differences
are reclassified from equity to profit or loss (as a reclassification adjustment) in the period in which the foreign
operation is disposed of.
Foreign Currency Translation Reserve
Exchange differences relating to the translation from the functional currencies of the Group’s foreign subsidiaries into
New Zealand dollars are brought to account by entries made directly to the Foreign Currency Translation Reserve.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
95
20. RECONCILIATION OF CASH FLOWS TO OPERATING ACTIVITIES WITH OPERATING NET LOSS
GROUP
2026
($000)
2025
$000
Net Loss for the Period (35,778) (29,936)
Add Non Cash Items:
Depreciation 848 842
Unrealised FX Gain on Forward Contracts (67) -
Gain on Disposal of Property, Plant and Equipment (10) (19)
Amortisation 372 571
Employee Share options 837 1,317
Employee bonuses paid in shares in lieu of cash 365 58
Depreciation on right of use assets 1,392 1,344
Interest on finance leases shown in lease repayments 130 230
Total Non Cash Items 3,867 4,343
Add Movements in Other Working Capital items:
(Increase) Decrease in Receivables and Other Assets 2,757 (576)
(Increase) Decrease in Inventory (433) 81
Increase (Decrease) in Payables and Accruals (2,385) 1,289
Effect of exchange rates on net cash 34 59
Total Movement in Other Working Capital (27) 853
Net Cash Flows to Operating Activities (31,938) (24,740)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
96
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
21. FINANCIAL INSTRUMENTS
ACCOUNTING POLICY
Foreign Currency Transactions
Financial instruments include cash and cash equivalents, short term deposits, receivables, security deposits, finance
lease liabilities and trade creditors. The particular recognition methods adopted are disclosed in the individual
policy statements associated with each item.
Managing Financial Risk
The Group’s activities expose it to the financial risks of changes in interest rate risk, credit risk, liquidity risk and
foreign currency risk. Management is of the opinion that the Company and the Group’s exposure to market risk
during the period and at balance date is defined as:
Risk FactorDescription
(i) Currency RiskFinancial assets and financial liabilities are denominated in NZD, USD, AUD, SGD,
CAD and EUR currencies
(ii) Interest Rate Risk Exposure to changes in Bank interest rates resulting in cash flow interest rate risk
(iii) Credit RiskRisk of financial loss if counterparty fails to meet contractual obligations
(iv) Liquidity RiskRisk the Group may not be able to meet its commitments as they fall due
(v) Other Price RiskNot applicable as no securities are bought, sold or traded
(i) Foreign Currency Risk
The Group faces the risk of movements in foreign currency exchange rates in relation to the New Zealand dollar.
The Group has significant operations in United States Dollars and less significant operations in Australian dollars,
Euros and Singapore dollars. As a result of this, the financial performance and financial position are impacted by
movements in exchange rates.
The Group manages foreign currency risk by purchasing overseas goods only when necessary and in line with the
approved treasury policy. It will also purchase foreign currency to fund overseas operations based on cash flow
forecasts and in line with the approved treasury policy. Derivative financial instruments are also entered into.
Derivative financial instruments comprise a foreign exchange forward contract with Westpac. The contract was
entered into to manage exposure to foreign currency risk.
The net fair value gain relates to the remeasurement of a foreign exchange forward contract with Westpac to fair
value at the reporting date. The contract is not designated in a hedge accounting relationship and is therefore
measured at fair value through profit or loss.
The Derivative is classified as a current asset when the remaining maturity of the hedged item is less than 12
months.
A 10% increase or decrease in the foreign currency against the NZD will reduce/increase the loss reported by
approximately $170,000 (2025: $180,000) and increase/reduce equity by the same amount.
(ii) Interest Rate Risk
The Group’s interest rate risk arises from its cash and equivalents, and short term deposits. Cash and equivalents
comprise cash on hand and deposits at call with banks. Short term deposits comprise of term deposits placed with
New Zealand banks on fixed rates for different periods of time.
Management regularly review its banking arrangements to ensure it achieves the best returns on its funds while
maintaining access to necessary liquidity levels to service the Group’s day-to-day activities. The mixture of bank
deposits at floating interest rates and short term deposits at different rates over various periods of time mitigate
the risk of interest rates being received at less than market rates. The Group does not enter into interest rate
hedges.
A 1% increase or decrease in bank deposit interest rates will reduce/increase the loss reported by approximately
$68,000 and increase/reduce equity by the same amount (2025: $214,000).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
97
(iii) Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations.
The Group incurs credit risk from:
a) Cash and short term deposits;
b) Receivables in the normal course of its business; and
c) Other assets.
The Group has no significant concentration of credit risk other than bank deposits, with the exposure as at 31
March 2026 expressed as a percentage of total assets: 11.9% at ANZ, 12.4% at BNZ, 14.7% at Westpac and 5.1% at
Wells Fargo. The Group’s cash and short term deposits are placed with high credit quality financial institutions
including major banks who have at least a A+ credit rating and concentrations are managed within the approved
treasury policy.
Regular monitoring of receivables is undertaken to ensure that the credit exposure remains within the Group’s
normal terms of trade. These receivables balances mainly relate to Kaiser Permanente, New Zealand customers,
and the New Zealand Government. Refer to note 10 for further details on expected credit losses for receivables.
The Group continues to invoice for every billable test completed in the US, and the billing and reimbursement
process continues to maximise the cash that is received by the Group. The Group has included an accrual for tests
performed from 1 October 2025 to 31 March 2026 which meet revenue recognition criteria for which payment has
not been received by 31 March 2026.
Regular monitoring of other assets is undertaken to ensure that the credit exposure is limited.
The carrying values of financial assets represent the maximum exposure to credit risk as represented below:
GROUP
Notes
2026
($000)
2025
($000)
Cash and Cash Equivalents97,7769,482
Short Term Deposits9-13,086
Trade and Other Receivables (excludes GST)102,4164,906
Other Assets (excludes prepayments)12 442 440
10,63427,914
(iv) Liquidity Risk
Liquidity risk is the risk that the Group may encounter difficulty in raising funds at short notice to meet its
commitments as they fall due. Management maintains sufficient cash balances and uses cash flow forecasts to
determine future cash flow requirements. Liquidity risk is managed within the approved treasury policy. The Group
also has three finance leases.
Payables and Accruals totaling $5,645,000 are due within 3 months of balance date (2025: $7,863,000).
Fair Values
Derivative financial instruments are classified as Level 2 in the fair value hierarchy. The fair value of the foreign
exchange forward contract is determined using observable foreign exchange rates at the reporting date.
In the opinion of the Directors, the carrying amount of financial assets and financial liabilities approximate their fair
values at balance date.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
98
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
22. RELATED PARTIES
A shareholder, the University of Otago, provided services, including rental space, car parking and use of University
Equipment, to the Group to the value of $495,000 (2025: $472,000). The Group has commitments totaling
$389,000 (2025: $368,000) with the University of Otago in the next financial year.
Key Management Compensation
Key management personnel comprise of Directors and the Chief Executive Officer of Pacific Edge Limited, and the
President of Pacific Edge Diagnostics USA Limited who retired during the year.
Refer to Note 8 for details of the Incentive Plan that includes key management remuneration.
GROUP
2026
($000)
2025
($000)
Short Term Employee Benefits2,5762,556
Other Long-Term benefits and Share Based Payments (Options)477633
Total Employee Entitlements3,0533,189
Directors’ Fees
The current total Directors’ fee pool for non-executive Directors of Pacific Edge Limited, approved by the
shareholders at the Annual Shareholders Meeting on 6 August 2025 was $628,000 per annum and was based on
six Directors. With the addition of Simon Flood on 4 December 2025, the number of Directors increased to seven
until Chris Gallaher retired on 18 December 2025. In accordance with NZX Listing Rule 2.11.3 which permits an issuer
to increase the aggregate amount payable to the Directors to take into account an additional Director without
shareholder approval, the pool for non-executive Directors of Pacific Edge increased to $688,000 for the period
of time there were seven Directors. The total amount of fees paid to Directors for the year ended 31 March 2026
was $630,256 (2025: $470,000). The increase in Directors Fees approved by Shareholders on 6 August 2025 was
approved to be issued as shares in lieu. Refer note 18 for further details.
The table below sets out the total fees approved for non-executive Directors of Pacific Edge Limited for the year
ended 31 March 2026 based on the positions held:
Position
Number
2026
Fee per
Director
2026
($)
Total
Directors
Fees Paid
2026
($)
Number
2025
Fee per
Director
2025
($)
Total
Directors
Fees Paid
2025
($)
Chair1$160,000$159,7901$115,000$115,000
Deputy Chair 1 $90,000 $90,0001$70,000$70,000
Non-executive
Directors
4 from 1 Apr
to 3 Dec 25
5 from 4 Dec 25
to 17 Dec 25
4 from 18 Dec 25
to 31 Mar 26
$80,000 $322,466
5 to Sept 24
4 from Oct 24
$60,000$270,000
Chair Audit & Risk
Committee
1$22,000$22,0001$10,000$10,000
Chair People &
Culture Committee
1$12,000$12,000---
Committee Members4$6,000$24,000---
Special Governance
Allocation
----$5,000
Total Fees Paid$630,256$470,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
99
23. FINANCE AND OPERATING LEASE COMMITMENTS
ACCOUNTING POLICY
The Group leases various properties and equipment. Rental contracts vary depending on the type of asset
being leased. Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for
borrowing purposes.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the
contract to the lease and non-lease components based on their relative stand-alone prices.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is
available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance
cost is charged to the Consolidated Statement of Comprehensive Income over the lease period to produce a
constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is
depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
(i) Measurement basis
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the
net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that are based on an index or a rate;
• amounts expected to be payable by the lessee under residual value guarantees;
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of
the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the group, the lessee’s incremental borrowing rate is used. The
incremental borrowing rate is the rate that the individual lessee would have to pay to borrow the funds necessary
to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms,
security and conditions.
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to
reflect changes in financing conditions since third-party financing was received;
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by Pacific
Edge Limited, which does not have recent third-party financing; and
• makes adjustments specific to the lease, e.g. term, country, currency and security.
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are
not included in the lease liability until they take effect. When adjustments to lease payments based on an index or
rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to the Consolidated
Statement of Comprehensive Income over the lease period to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date;
• any initial direct costs; and
• restoration costs.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
100
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Right-of-Use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on
a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the Right-of-Use asset
is depreciated over the underlying asset’s useful life. While the Group revalues its land and buildings that are
presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by
the Group.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis
as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets
include IT equipment and small items of office furniture.
Right of Use Assets
GROUP
2026
($000)
2025
($000)
Cost
Opening Balance 4,632 7,997
Removals (Leases Completed)- (3,516)
Revaluations (Lease Extended) 166 -
Foreign Currency Translation (8) 151
Closing Balance 4,790 4,632
Accumulated Depreciation
Opening Balance 2,187 4,299
Depreciation 1,391 1,386
Reversal of Accumulated Depreciation (Leases Completed) - (3,516)
Foreign Currency Translation 23 18
Closing Balance 3,601 2,187
Net Right of Use Assets Balance 1,189 2,445
Right of Use Assets Net Book Value
Buildings 1,179 2,409
Computer Equipment 10 36
1,189 2,445
Depreciation
Buildings 1,365 1,360
Computer Equipment 26 26
1,391 1,386
Expenses relating to Short Term and Low Value Leases 110 131
Total Cash Outflow relating to Leases 1,556 1,496
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
101
Lease Liability
GROUP
2026
($000)
2025
($000)
Opening Balance 2,601 3,773
Revaluations - Lease Extension 142 -
Lease Repayments (1,585) (1,533)
Interest Charged 130 226
Foreign Currency Translation (3) 135
Closing Balance 1,285 2,601
Split by:
Current Liability 1,159 1,413
Non-Current Liability 126 1,188
1,285 2,601
The maturity of the Lease Liabilities is as follows:
Less than one year 1,159 1,413
One to two years 126 1,105
Two to three years - 80
More than three years - 3
1,285 2,601
24. OTHER COMMITMENTS AND CONTINGENT LIABILITIES
a) Contingent Liabilities
There were no known contingent liabilities at 31 March 2026 (2025: Nil). The Group has not granted any securities
in respect of liabilities payable by any other party whatsoever.
b) Capital Commitments
There are no capital commitments at 31 March 2026 (2025: Nil).
25. SUBSEQUENT EVENTS
Equity Raise
On 8 May 2026 the Board approved a capital raise which was released to the NZX and ASX on 11 May 2026,
targeting capital investment of $24.0m comprising an $18.0m Placement and a retail Share Purchase Plan (SPP) of
$6.0m. The Board has discretion to accept oversubscriptions in both the Placement and SPP.
The Placement which closed on 12 May 2026 was oversubscribed with applications accepted by the Board for
$25.4m. Cash from the Placement was received by the Company on 15 May 2026.
The SPP was opened on 14 May 2026, with applications closing 28 May 2026.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
102
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
Draft Medicare Coverage
The Company is seeking to regain Medicare coverage for hematuria evaluation with the issuance of a new Local
Coverage Decision (LCD). On 14 May 2026 a draft Local Coverage Determination (LCD) with foundational medical
policy for urine-based biomarkers for hematuria evaluation (DL40378) was published to the Medicare Coverage
Database, with explicit coding guidance for Cxbladder Triage and Triage Plus in the associated Local Coverage
Article (LCA) (DA60424).
The draft LCD ‘Urine-based Biomarkers in Patients with Microhematuria’ (DL40378) establishes hematuria
evaluation as a covered Medicare benefit for the first time and importantly distinguishes hematuria patients as
eligible for Cxbladder Triage and Triage Plus.
The publication of the Draft LCD is followed by a ‘notice and comment’ period (minimum of 45 days), before
then addressing the comments and finalizing the LCD. Novitas, the Medicare Administrative Contractor tasked
with determining Medicare coverage for the company’s products, may take a maximum of 365 days from draft
publication to final publication of an LCD. It is also open to Novitas to retire, rather than finalise, the draft LCD. If
finally published, the LCD takes a further 45 days for the final LCD to become effective. The company will engage
with Novitas to seek reimbursement for Triage and Triage Plus on a claim-by-claim basis during the draft period.
The finalisation of the LCD for hematuria evaluation has the potential to increase both revenue and volumes for
the Company, with the inclusion of Triage Plus at the Medicare approved price of US$1,328, a 75% increase on the
Medicare approved price of US$760 for the legacy tests, Cxbladder Triage and Monitor.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
103
INDEPENDENT AUDITORS REPORT
PricewaterhouseCoopers, PwC Centre, 60 Cashel Street,
PO Box 13-244, Christchurch 8141, New Zealand
T: +64 3 374 3000
pwc.co.nz
Independent auditor’s report
To the shareholders of Pacific Edge Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial statements) of Pacific Edge
Limited (the Company), including its subsidiaries (the Group), present fairly, in all material respects, the financial
position of the Group as at 31 March 2026, its financial performance, and its cash flows for the year then ended in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group's financial statements comprise:
•the consolidated balance sheet as at 31 March 2026;
•the consolidated statement of comprehensive income for the twelve months then ended;
•the consolidated statement of changes in equity for the twelve months then ended;
•the consolidated statement of cash flows for the twelve months then ended; and
•the notes to the financial statements, comprising material accounting policy information and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and
International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the 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.
Independence
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) issued by
the New Zealand Auditing and Assurance Standards Board (PES 1) and the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (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.
In our capacity as auditor and assurance practitioner, our firm also provided review services. The firm has no other
relationship with, or interests in, the Group.
39
PricewaterhouseCoopers, PwC Centre, 60 Cashel Street,
PO Box 13-244, Christchurch 8141, New Zealand
T: +64 3 374 3000
pwc.co.nz
Independent auditor’s report
To the shareholders of Pacific Edge Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial statements) of Pacific Edge
Limited (the Company), including its subsidiaries (the Group), present fairly, in all material respects, the financial
position of the Group as at 31 March 2026, its financial performance, and its cash flows for the year then ended in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group's financial statements comprise:
•the consolidated balance sheet as at 31 March 2026;
•the consolidated statement of comprehensive income for the twelve months then ended;
•the consolidated statement of changes in equity for the twelve months then ended;
•the consolidated statement of cash flows for the twelve months then ended; and
•the notes to the financial statements, comprising material accounting policy information and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and
International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the 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.
Independence
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) issued by
the New Zealand Auditing and Assurance Standards Board (PES 1) and the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (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.
In our capacity as auditor and assurance practitioner, our firm also provided review services. The firm has no other
relationship with, or interests in, the Group.
39
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PACIFIC EDGE LIMITED ANNUAL REPORT 2026
INDEPENDENT AUDITORS REPORT
Material uncertainty related to going concern
We draw attention to the disclosures in Note 1 to the consolidated financial statements, which indicates that
the Company, as at 31 March 2026, had $7.776m of cash, cash equivalents and short term deposits on hand
(March 2025: $22.568m), net assets of $10.659m (March 2025: $26.085m), and net cash outflows from
operating activities for the year to 31 March 2026 were of $31.938m (March 2025: $24.740m).
As disclosed in Note 1, there are material uncertainties regarding the outcome and timing of the US Local
Coverage Determination and the Company’s access to further funding if required. These events or conditions,
along with other matters set forth in Note 1, indicate that material uncertainties exist that may cast significant
doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this
matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial statements of the current year. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Description of the key audit matter How our audit addressed the key audit matter
Revenue recognition for United States (US) revenue
As disclosed in Note 5 of the financial statements, the timing
of revenue recognition for US based revenue varies by
revenue stream between completion of the Cxbladder test
and receipt of cash. As disclosed in Note 5, US revenue was
$9.5m out of total operating revenue of $11.5m for the year
ended 31 March 2026.
The Company has two material US revenue streams:
1.Tests performed for Medicare (pre 24 April 2025),
Medicare Advantage, Veterans Affairs and Kaiser
Permanente (accrual accounting); and
2.Medicare (post 24 April 2025) and other private insurers
(cash accounting).
On 24 April 2025 the Company lost Medicare coverage for
Cxbladder tests in the US. This resulted in the cessation of
Medicare coverage for Cxbladder tests. This increased
uncertainty regarding reimbursement outcomes and future
cash collections associated with Medicare.
In the US, derived revenue for tests performed for Medicare
Advantage, Veterans Affairs, and Kaiser Permanente have
been recognised in advance of cash being received.
Revenue for these customers is recognised once the test is
invoiced.
All other US derived revenue including Medicare post 24
April 2025 is accounted for on a cash basis as disclosed in
Note 5.
We determined this to be a key audit matter due to the
significance of the judgements applied by Directors for
revenue recognition and the significance of US revenue of
the Company’s operations.
Our audit procedures included the following:
We obtained an understanding of management’s processes
and controls for the CMS, Medicare Advantage, Kaiser
Permanente, and private insurers US revenue streams,
including the relevant controls at the external billing
reimbursements service organisation.
We obtained an understanding of the controls over the
capture and processing of billing data relevant to the US
revenue streams and evaluated the SOC 1 report for the
controls relevant to that process.
We evaluated management’s determination of the timing of
revenue recognition by:
•Assessing management’s judgements and data
supporting revenue recognition for Medicare Advantage,
Veterans Affairs, and Kaiser Permanente to confirm that
the transaction price can be determined and
collectability is probable;
•Assessing the data supporting revenue recognition for
Medicare and other private insurers to confirm that the
transaction price and collectability is only probable when
cash is received;
•Performing subsequent receipt testing to validate the
probability of collection of the year end receivables and
performing look back procedures over the prior year
receivables to test collection rates; and
•Evaluating whether revenue has been recognised
appropriately in accordance with NZ IFRS 15.
We considered the appropriateness of disclosures in the
financial statements.
40
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
105
INDEPENDENT AUDITORS REPORT
Our audit approach
Overview
Overall group materiality: $499,000, which represents approximately 1% of total expenses.
We chose total expenses as the benchmark because, in our view, it is the benchmark against which the Group is
most commonly measured by users, and is generally accepted benchmark.
We selected transactions and balances to audit based on their materiality to the Group rather than determining
the scope of procedures to perform by auditing only specific subsidiaries or business units.
As reported above, we have one key audit matter, being:
•Revenue recognition for US revenue
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements. In particular, we considered where management made subjective judgements; for example, in
respect of significant accounting estimates that involved making assumptions and considering future events that are
inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls,
including among other matters, consideration of whether there was evidence of bias that represented a risk of
material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable
assurance about whether the financial statements are free from material misstatement. Misstatements may arise
due to fraud or error. They 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 the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the
overall group materiality for the financial statements as a whole as set out above. These, together with qualitative
considerations, helped us to determine the scope of our audit, the nature, timing and extent of our audit
procedures, and to evaluate the effect of misstatements, both individually and in the aggregate, on the financial
statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the
financial statements as a whole, taking into account the structure of the Group, the accounting processes and
controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the information included
in the Annual Report, but does not include the financial statements and our auditor’s report thereon. The Annual
Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express any form of
audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
4
106
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
INDEPENDENT AUDITORS REPORT
When we read the other information not yet received, if we conclude that there is a material misstatement therein,
we are required to communicate the matter to the Directors and use our professional judgement to determine the
appropriate action to take.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial
statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible 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 financial statements
Our objectives are to obtain reasonable assurance about whether the 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 (NZ) and ISAs 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 financial statements.
A further description of our responsibilities for the audit of the financial statements is located at 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.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that
we might state those matters which 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
and the Company’s shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Nathan Wylie.
For and on behalf of:
PricewaterhouseCoopers Christchurch
22 May 2026
42
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
107
STATUTORY
INFORMATION
108
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
STATUTORY INFORMATION
DIRECTORS’ INTERESTS
The company maintains an Interests Register in accordance with the Companies Act 1993 and the Financial
Markets Conduct Act 2013.
In addition to the Pacific Edge Group of companies, Directors disclosed interests, or cessation of interest,
in the following entities pursuant to section 140 of the Companies Act 1993 during the year ended
31 March 2026.
Director / EntityRelationship
T. Barclay
Baymatob Pty LimitedChair and Shareholder
Rua Bioscience LimitedDirector and Shareholder
S. Flood
Innes Road Healthcare Holdings LtdDirector & Shareholder
Farmright LimitedDirector
Community Pharmacy LimitedDirector & Shareholder
Merivale East LimitedDirector
Flosun Alpha LimitedDirector & Shareholder
Queenstown Airport Corporation LimitedChair
Southern Dairy Holdings LimitedChair
Hunter Road LimitedDirector & Shareholder
Central Lakes TrustTrustee
University of Canterbury FoundationTrustee
Tertiary Education CommissionDirector/Commissioner
A. Masfen
Albert Nominees LimitedDirector
Artemis Capital LimitedDirector
Masfen Securities LimitedDirector
Pure Food LimitedDirector and Shareholder (Ceased during the year)
TBL Trustees LimitedDirector
TBL Holdings LimitedDirector
TecTrax Limited Director (Ceased during the year)
Wave CoDirector and Shareholder
Windfarm Group W2 LimitedDirector
STATUTORY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2026
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
109
STATUTORY INFORMATION
Director / EntityRelationship
S. Park
Even Capital GP LimitedDirector and Shareholder
National Provident FundMember of Board of Trustees and Investment
Committee Member
Orbis Diagnostics LimitedDirector and Shareholder
Rapid Response Nursing LimitedDirector and Shareholder
Scotch and Sparkles LimitedDirector and Shareholder
Annuitas Management LtdDirector
Government Superannuation Fund AuthorityMember of the Board and Investment Committee
A. Stove
Progressive Farms LtdDirector and Shareholder
Rua Bioscience LimitedChair and Shareholder
B. Williams
Cartherics Pty LtdChairman and Shareholder
Pacifik Biopharma LtdDirector and Shareholder
Cleveland ClinicConsultant & Advisor (Ceased during the year)
EngeneIC Pty LtdDirector and Shareholder
Zehna Therapeutics (wholly owned subsidiary of the
Cleveland Clinic)
Director
InnoPath TherapeuticsCSO, Director and Shareholder
C Gallaher (Retired December 2025)
Carisbrook Holdings LimitedChairman
Mariposa LimitedChairman
VinLink Marlborough LtdChairman
Highlanders Rugby ClubDirector & Shareholder
DIRECTOR APPOINTMENT DATES
The dates below are the first appointment dates for all current Directors. Directors have been re-appointed
at Annual Shareholder Meetings, when retiring by rotation.
T. Barclay 21 March 2022
S. Flood 4 December 2025
C. Gallaher 1 July 2016 – Retired 18 December 2025
A. Masfen 1 April 2008
S. Park 6 December 2018
A. Stove 15 March 2021
B. Williams 1 June 2013
110
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
STATUTORY INFORMATION
DIRECTORS’ SECURITY HOLDINGS
Securities in the Company in which each Director and associated person of each Director, has a relevant
interest, are specified in the table below as at 31 March 2026.
Number of Equity Securities20262025
T. Barclay450,00050,000
C. Gallaher1,700,0001,000,000
A. Masfen58,494,2509,320,050
S. Park262,79158,591
A. Stove
265,1415,000
B. Williams
1,310,357610,357
INFORMATION USED BY DIRECTORS
The Board of Directors received no notices from Directors wishing to use Company information received in
their capacity as Directors, which would not have ordinarily been available.
INDEPENDENCE
The following Directors are considered by the Board to be independent, as defined under the NZX Main
Board Listing Rules, as at 31 March 2026:
T. Barclay, S. Flood, S. Park, A. Stove, and B. Williams.
With the increased holding in Pacific Edge Limited by Opito Trust (of which Anatole Masfen is a beneficiary)
which was approved at the Annual Shareholders Meeting on 6 August 2025 and the allotment of shares on
13 August 2025, Anatole Masfen is no longer treated as an Independent Director of Pacific Edge Limited.
SUBSIDIARY COMPANY DIRECTORS
Section 211(2) of the Companies Act 1993 requires the company to disclose, in relation to its subsidiaries, the
total remuneration and value of other benefits received by Directors and former Directors, and particulars of
entries in the interests registers made during the year ended 31 March 2026.
No subsidiary has Directors who are not Directors of Pacific Edge Limited or employees of the Group. The
remuneration and other benefits of such Directors are included in the Directors Remuneration section of this
report and the remuneration and other benefits of employees totalling NZ$100,000 or more during the year
ended 31 March 2026 are included in the relevant bandings for remuneration above.
No remuneration is paid to any Director of a subsidiary company for their position as Director of that
subsidiary company.
The persons who held office as Directors of subsidiary companies at 31 March 2026 are as follows:
Pacific Edge Diagnostics New Zealand LimitedS. Park, A. Masfen, T. Barclay
Pacific Edge Analytical Services LimitedS. Park, A. Masfen, A. Stove
Pacific Edge Diagnostics USA LtdB. Williams, P. Meintjes, S. Flood
Pacific Edge (Australia) Pty LtdB. Williams, P. Meintjes, S. Flood
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
111
TWENTY LARGEST EQUITY SECURITY SHAREHOLDERS AS AT 31 MAY 2026
RankRegistered ShareholderNumber of Shares% of Total Shares
1New Zealand Central Securities Depository Limited441,986,942 37.7 1
2Masfen Securities Limited89,701,328 7.65
3New Zealand Depository Nominee 76,547,552 6.53
4Forsyth Barr Custodians Limited47,807,086 4.08
5FNZ Custodians Limited45,354,392 3.87
6Lennon Holdings Limited32,610,442 2.78
7K One W One Limited26,291,520 2.24
8Custodial Services Limited18,017,082 1.54
9Leveraged Equities Finance Limited9,566,098 0.82
10JBWERE (Nz) Nominees Limited7,805,005 0.67
11Adrian James Harvey & Joanne Elizabeth Harvey6,385,896 0.54
12Minggang Chen6,094,919 0.52
13Carol Anne Edwards & Graeme Brent Ramsey6,037,037 0.52
14Jason Robert Gilder5,305,970 0.45
15Wairahi Investments Limited5,000,000 0.43
16Zhen Chen4,702,617 0.4
17Bhatnagar Securities Limited4,425,000 0.38
18Steven Cyril Hancock & Bronwyn Hilda Hancock3,200,000 0.27
19Jingli Fan2,955,348 0.25
20Yongpei Huang2,693,442 0.23
TOTAL842,487,676 71.88
SHAREHOLDERS HELD THROUGH NZCSD AS AT 31 MAY 2026
New Zealand Central Securities Depository Limited (NZCSD) provides a custodian depository service that
allows electronic trading of securities to its members and does not have a beneficial interest in these shares.
As at 31 May 2026, the ten largest shareholdings in the company held through NZCSD were:
RankRegistered ShareholderNumber of Shares% of Total Shares
1BNP Paribas Nominees NZ Limited Bpss40232,761,192 19.86
2HSBC Nominees (New Zealand) Limited53,207,607 4.54
3Accident Compensation Corporation51,276,306 4.38
4Citibank Nominees (Nz) Ltd31,657,046 2.7
5Private Nominees Limited28,621,975 2.44
6Apex Custodian Nominees17,961,974 1.53
7JPMORGAN Chase Bank12,569,317 1.07
8Public Trust Rif Nominees Limited4,348,283 0.37
9Mmc Queen Street Nominees Ltd Acf Salt Long Short Fund2,857,511 0.24
10Public Trust2,730,000 0.23
TOTAL437,991,211 37.36
STATUTORY INFORMATION
112
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
SPREAD OF SECUITY HOLDERS AS AT 31 MAY 2026
No. of Ordinary
Security Holders
% of Issued
Capital
1 – 1,0007900.04
1,001 – 5,0001,6830.41
5,001 – 10,0001,0160.66
10,001 – 50,0001,8783.80
50,001 – 100,0004652.91
Greater than 100,00169692.18
Total Security Holders6,528100.00
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 who have a relevant interest
of 5% or more of a class of quoted voting products of the Company.
As at 31 March 2026, details of the substantial product holders of the Company and their relevant interests
in the Company’s Shares are as follows:
Name of Substantial Product HolderNumber of Ordinary
Voting Securities
as at 31 May 2026% of Issued Capital
ANZ New Zealand Investments Limited, ANZ Bank New
Zealand Limited and ANZ Custodial Services NZ Ltd
213,547,44518.22
FirstCape Group Limited110,622,81510.82
Harbour (Part of FirstCape Group Limited)130,611,73311.14
DONATIONS
The Group made no donations during the year.
CREDIT RATING
The Company currently does not have a credit rating.
WAIVERS FROM NZX LISTING RULES
During the year ended 31 March 2026, a waiver to Listing Rule 4.19.1 was granted by NZX.
Rule 4.19.1 requires an issuer making an offer of Financial Products intended to be Quoted (other than Equity
Securities issued under Rule 4.8 or 4.9) to allot such Quoted Financial Products no later than 10 Business
Days after the final closing date for the offer.
The waiver was provided by the NZX to allow Pacific Edge to allot Shares under its Placement, which was
closed on 2 June 2025, following the Shareholders’ Meeting held on 6 August 2025, which approved the
resolutions required in connection with the Placement.
EXERCISE OF NZX POWERS (LISTING RULE 9.9.3)
NZX did not exercise its powers during the year under Listing Rule 9.9.3.
STATUTORY INFORMATION
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
113
Issued Capital
1,022,631,578 Ordinary Shares
Registered Office
Level 12, Otago House
Cnr Moray Place and Princes Street
Dunedin
Directors
S. Flood (Chairman - Appointed Director
4 December 2025)
B. Williams (Deputy Chairman)
A. Masfen
S. Park
A. Stove
T. Barclay
C. Gallaher (Retired 18 December 2025)
Chief Executive Officer
Peter Meintjes
Chief Financial Officer
Grant Gibson
Nature of Business
Research, develop and commercialise new
diagnostic and prognostic tools for the early
detection and management of cancers.
Auditors
PricewaterhouseCoopers
Christchurch
Bankers
Bank of New Zealand
ANZ
Kiwibank
Westpac
Wells Fargo
Solicitors
Anderson Lloyd
Level 12, Otago House
Cnr Moray Place and Princes Street
Dunedin
Harmos Horton Lusk
Level 33, Vero Centre
48 Shortland St
Auckland
Securities Registrar
MUFG Corporate Markets
138 Tancred Street
Ashburton
Company Number
1119032
Date of Incorporation
27 February 2001
PACIFIC EDGE COMMUNICATIONS
Websites
www.pacificedgedx.com
www.cxbladder.com
Facebook
www.facebook.com/PacificEdgeLtd
www.facebook.com/Cxbladder
Twitter
@PacificEdgeLtd
@Cxbladder
LinkedIn
www.linkedin.com/company/pacific-edge-ltd
STATUTORY INFORMATION
COMPANY DIRECTORY
AS AT 31 MARCH 2026
114
PACIFIC EDGE LIMITED ANNUAL REPORT 2026
87 St David Street, PO Box 56, Dunedin, New Zealand
P 0800 555 563 (NZ), +64 3 577 6733 (Outside NZ) F +64 3 974 9393
www.pacificedgedx.com
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.