ACRES Commercial Realty Corp.
Annual Report 2025

Plain-text annual report

Our portfolio marketed to US patients ANNUAL REPORT 2025 ABOUT THIS REPORT This Annual Report combines Acrux’s financial and non-financial performance into a single document which links strategic priorities to our operational results. Forward looking statements are subject to risks and uncertainties and have been made throughout this report. Such statements involve both known and unknown risks and other factors which may cause future actual results, performance or achievements of Acrux to differ from statements made in this report. Download here: www.investors.acrux.com.au/investor-centre Inside cover – Philippa, Analytical Development Team Leader BUSINESS STRATEGY AND EXECUTION BRINGING PRODUCTS TO MARKET 2 REPORT OF THE CHAIRMAN & CEO 4 ENVIRONMENT, SOCIAL AND GOVERNANCE 8 15 AUDITOR’S INDEPENDENCE DECLARATION 27 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 28 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 29 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 30 CONSOLIDATED STATEMENT OF CASHFLOWS 31 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 32 CONSOLIDATED ENTITY DISCLOSURE STATEMENT 2025 54 DIRECTORS’ DECLARATION 55 INDEPENDENT AUDITOR’S REPORT 56 SHAREHOLDER INFORMATION 61 GLOSSARY 64 CORPORATE DIRECTORY 67 CONTENTS A speciality, pharmaceutical company developing and commercialising drugs for international markets. Acrux Annual Report 2025 1 POWERFUL PARTNERSHIPS. Specialist CDOs & CMOs. Scale up capacity. Experienced commercial partners for launch and promotion EXPERIENCED TEAM Robust analysis, innovation around the clock. Diverse, expert, skilled in creating topical generics. pharmaceutical products PROVEN PRODUCT PORTFOLIO. 5 current FDA registered products marketed in the US. INFRASTRUCTUE & CAPABILITIES Product formulation with onsite analytical laboratories. TGA licence, GMP suite. Established Australian bioequivalence methodology STRATEGIC DRIVERS 2 BUSINESS STRATEGY AND EXECUTION BRINGING PRODUCTS TO MARKET Hemang, Analytical Development Scientist COMMERCIAL HIGHLIGHTS Nitroglycerine 0.4%, Ointment launched Dapsone 5%, Gel launched Dapsone 7.5%, Gel launched Prilocaine 2.5% and Lidocaine 2.5%, Cream Evamist royalties continue Volume CAGR 44% First licenced product in Saudi Arabia Acrux Annual Report 2025 3 Dear Fellow Shareholders, Over the past decade, Acrux has consistently pursued the development of topical, generic prescription pharmaceuticals for the US market. The strategy was based on overcoming the challenges of FDA registration to enable us to compete in niche markets which had high barriers to entry. With 5 products now launched, we are now in a position to reassess the viability of this approach. Products successfully commercialised in the US: — Nitroglycerin 0.4%, Ointment, is a generic of Rectiv® and was launched in December 2024 by our licensee (TruPharma), as a treatment for severe pain associated with chronic anal fissure. IQVIA reports annual addressable market sales in the US for the 12 months to December 2024 totalling US$23.8 million; — Dapsone 5%, Gel, is a generic version of Aczone® Gel, 7.5% which treats acne vulgaris and is also marketed by TruPharma. Our 60 gram pack size was launched in April 2024, and 90 gram pack size in January 2025. Annual market sales in the US for the 12 months to December 2024 as reported by IQVIA totalled US$13.9 million. Acrux’s product is manufactured and packaged in the United States and marketed in a tube presentation, which positively differentiates it from its direct competitors (which only are available in pump bottle packaging); — Dapsone 7.5%, Gel, was launched in August 2024, as a treatment for acne vulgaris in patients 9 years of age and old and is also marketed by TruPharma. IQVIA reported annual addressable market sales in the US of US$43.9 million for the 12 months to December 2024; — Prilocaine 2.5% and Lidocaine 2.5%, Cream, was launched in December 2022 and which is a topical anaesthetic which is marketed by Padagis. IQVIA reported sales in the US for the addressable market for the product for the 12 months to December 2024 of US$20.9 million, and — Estradiol Spray, which treats symptoms associated with menopause is marketed as Evamist® by Padagis. With three products launched in FY2025, and two of those in the second half, we have not yet seen the full revenue uplift of the commercialised portfolio. Prilocaine 2.5% and Lidocaine 2.5%, Cream, Nitroglycerin 0.4%, Ointment, and Dapsone 5%, Gel, have been well accepted in the market and have achieved strong penetration in each generic category. Dapsone 7.5%, Gel is still in early launch phase. Strategic implications These launches collectively confirm that Acrux has established the capability and capacity to: — Navigate FDA registration pathways; — Manage tech transfer for contract manufacturing organisations; — Conduct validated in-house bioequivalence; — Reverse-engineer complex formulations; — Attract strong commercial partners on attractive terms to access the US market; — Manage the complete process from identifying opportunities to delivering commercial products to the US market; and — Achieve above fair market share. These are significant achievements that reflect an intense, internal focus on executing our strategy. Other aspects of this strategy are more reliant on external factors. In particular, the assumption that high barriers to entry would result in greater opportunities to realise profit has not been fully realised. There have been more entrants to markets than were previously forecast. This means that markets have been destabilised with each new entrant and this competition has resulted in lower returns to Acrux. In short, structural changes in the market have resulted in lower selling prices. The impact of this is twofold. First, the commercial returns from the launched portfolio are not in line with both our plans and cost base. Secondly, applying the knowledge of current market dynamics to our portfolio of future products indicates that this pipeline has the same risk of underperformance in the US and therefore we will defer further investment in these products pending our expansion into additional markets. 4 REPORT OF THE CHAIRMAN & CEO Future directions Based on the trends observed over the past six months, we believe it is prudent to defer further development of our current topical, generic product pipeline for the US. We will continue to aim to maximise the value of our commercialised range of products by focusing on post launch activities, including increasing batch sizes, changing manufacturing sites and optimising Active Pharmaceutical Ingredients supply. We will maximise value by extending our activity beyond the US. We are exploring opportunities to leverage our FDA registrations, regulatory expertise and technical transfer skills for existing products in other markets. The first opportunity is Saudi Arabia. In July 2025, Acrux executed a Sales, Marketing, and Distribution agreement with Servacure Trading W.L.L. to license Dapsone 5% Gel in Saudi Arabia. The agreement allows us to leverage our FDA approval in the US to enter the Saudi market and expand returns from our existing portfolio. It is a clear example of Acrux’s potential for licensing US FDA approved products other markets. Moving beyond topical generics in the US, Acrux can pivot and leverage assets that support the implementation of the revised strategy. Acrux has a rare, proven ability to bring drugs to market and the associated skills that have been acquired and developed during the generic phase of the Company’s development. This has multiple applications beyond the topical generic niche. Acrux has created IP in skin drug delivery systems that can be reactivated, with a review of these assets and formulation of a revised strategy currently underway. We are also assessing a range of options that can broaden our accessible market and provide a firmer base for value creation than topical generics. Acrux’s culture and the newly launched products, stem from the patient investors behind Acrux. Your continued support and belief in Australia’s ability to be competitive in innovation matters; thank you. Acrux has been successful in meeting the challenges of FDA registration and commercialising products in the US. This is our advantage and one that will continue to support our growth in new areas. An advantage that would not be possible without outstanding staff. Our staff take on these challenges every day and thrive on finding solutions. Thank you all for your extraordinary effort and passion. Amal, Analytical Development Scientist Acrux Annual Report 2025 5 These are significant achievements that reflect an intense, internal focus on executing the Acrux strategy. REPORT OF THE CHAIRMAN & CEO (continued) 6 Matthew, Formulation Scientist CHAIRMAN’S NOTE The Board of Directors undertook at extensive and exhaustive selection process for Michael’s replacement and were delighted to be able to announce the appointment John Warmbrunn as CEO and Managing Director in June 2025. John has over 25 years of experience in building and scaling businesses, particularly in the healthcare sector. He held senior commercial roles for 12 years at Ego Pharmaceuticals, Australia’s leading dermatological pharmaceutical company, leading growth of the company’s export business to over 50% of turnover. Ego Pharmaceuticals was acknowledged as Australian Exporter of the Year in 2017. John started his industry career in sales at Sandoz and took on various management roles as it merged to form Novartis, eventually establishing the company’s OTC business in Australia and New Zealand. He also held a senior role with Bristol Myers Squibb (Convatec). Ross Dobinson Chairman FIRST OBSERVATIONS FROM THE CEO Acrux is a company with a strong heritage as a successful biotech company that gets products to market. This has been built on a vibrant culture where scientific rigour and creativity meets commercial traction. In the short time I have been at Acrux, I am delighted to see that this winning culture remains in place. It is invigorating to join a team that understands the necessity of driving for strong commercial outcomes whilst nurturing a deep and fruitful pipeline of R&D. What is exciting for me is to see that the experience and knowledge that Acrux has built, by choosing to take on one of the FDA’s most challenging regulatory pathways, has created a unique and powerful asset. We will continue to apply this to the pipeline of topical formulations for the US. But I am sure that the brilliant set of skills that we have now developed has applications well beyond the US. It is great to join at a time when long term projects are crystallizing into launched products. I look forward to seeing these green shoots grow and finding new fields for Acrux to crop. John Warmbrunn Chief Executive Officer and Managing Director Acrux Annual Report 2025 7 At the heart of Acrux’s Environment, Social and Governance (ESG) framework is our commitment to economic and environmental sustainability and conducting business in a responsible and ethical manner. This commitment is fundamental to our interactions with our stakeholders and the manner in which we develop and commercialise our range of topically applied generic medicines which are both affordable for patients and meet the highest possible product safety and regulatory standards. Our purpose and strategy are clear and consistent and are closely aligned with our culture, values and behaviours. Acrux’s commitment to conducting business in a socially responsible manner is considered through three key operational tenets: 1. Environmental Tenet – the implementation of sustainability initiatives to reduce Acrux’s greenhouse gas emissions, lower our carbon footprint and preserve our natural environment; 2. Social Tenet – considers Acrux’s relationships with employees, investors and the broader community and includes the way we conduct business, employee diversity, equity and inclusion programs as well as safety and wellbeing; and 3. Governance Tenet – practising good corporate governance and operating in an ethical and socially accountable manner. Through our corporate values and policies we prioritise activities and initiatives to achieve high standards in each of these tenets. Environmental Tenet Acrux is committed to conducting operations in an environmentally responsible manner, to manage climate related risks and opportunities and to adopt practices to achieve sustainable outcomes through minimising waste, energy usage and emissions associated with our building operations, laboratory and office equipment. Acrux occupies leased premises located at 103-113 Stanley Street, West Melbourne. These premises are 1,735 square meters and are used as a laboratory, offices and warehousing plus a further 365 square metres of open air car parking. As the building owner has not installed infrastructure to harness solar energy or to divert and recover rainwater, our environmental strategies are focussed on the minimisation of energy usage and effective waste management. We have: — Embedded environmental and sustainability objectives in our company policies and standard operating procedures; — Introduced energy saving measures to reduce energy consumption and waste; — Considered climate related risks and opportunities within in our broader risk management processes. Identified ESG risks are assessed for impact, likelihood, detectability and the existence of mitigating factors; and — Identified and evaluated waste reduction initiatives in our laboratory and office following on site audits and workshops. Initiatives applied to minimise waste include digital document management and shareholder communication strategies to reduce our use of paper based products, avoiding single use products, purchasing more recycled, recyclable and biodegradable materials, installation of LED light globes in our laboratory and boardroom, reusing office supplies and installing recycling bins used in our laboratory, office and kitchen to facilitate the recycling of waste which could otherwise become landfill. Digitisation projects include contract management, transactional finance processes, employee training records and enhancements which can be made in our Quality systems, such as electronically signed documents and our Vendor Assurance program to ensure suppliers also adopt sustainable practices. As we move towards mandatory climate related disclosure standards in Australia, Acrux is evaluating the way our business activities impact the environment and society, to fully understand the associated risks and opportunities and to put in place strategies to identify and implement initiatives to improve our performance and ensure we are prepared for new and emerging stakeholder expectations. 8 ENVIRONMENT, SOCIAL AND GOVERNANCE Acrux’s employees are trained in standard operating procedures to practice safe handling and manage the materials are used in our laboratory. Documented procedures ensure waste, including hazardous, controlled and non hazardous waste, is handled safely and disposed of in accordance with environmental regulations. Acrux is licenced to store and use hazardous and controlled substances and an agreement is in place with City West Water under the Water Industry Act 1994 and Water Industry Regulations 2006 to ensure trade water waste is managed effectively and responsibly. All waste, including laboratory waste, is recycled where possible and where it needs to be disposed of it is safely collected and transported. To ensure compliance with the Environment Protection Act 1970 we use an external waste management consultant with ISO 14001:2015 Certification for Environmental Management and an EPA Transport Certificate is issued for each hazardous or controlled waste collection. Social Tenet Acrux deeply values its highly skilled and specialised team and is committed to providing a stimulating, healthy and safe work environment. Our Code of Conduct documents our expected behaviours and ethical standards and guides and empowers our employees to make good decisions and to act responsibly. Health, safety and wellbeing is a key priority as is ensuring our employees have the skills and resources required to perform their roles to a high standard. Practicing safe systems of work is ingrained into Acrux’s company culture and we have proactive and well developed processes to capture occupational health and safety data, including near misses. Should an incident be reported it is thoroughly investigated and corrective measures are implemented where necessary. Our internal audit programme helps us assess health and safety standards in our laboratory, warehouse and offices at our West Melbourne site, including the identification of potential risks and hazards. Safety audits are conducted throughout the year by occupational health and safety team members who report their findings to the Leadership Team. Diversity and Inclusion supports our employees to be valued, respected and to experience fair treatment and merit based access to remuneration and employment opportunities. We prioritise our inclusive culture to ensure our workplace is safe for and attractive to a diverse range of people. Diversity is embraced and celebrated as we believe this not only promotes wellbeing, productivity and safety but also enhances our ability to attract and retain skilled employees who are representative of our broader community and to remove unconscious biases from our behaviours, policies and processes. In our workplace Acrux achieves gender equality of participation and remuneration. At the date of this report, 48% of Acrux’s workforce are female and the average hourly salary paid to female employees is equivalent to the average hourly salary paid to male employees. Our Leadership Team comprises five members, three of whom are female and we have four male Non-executive Directors. Acrux’s Diversity and Inclusion Policy is integral to our talent management and recruitment strategies and can be viewed in the Investor Relations section of our website, https://investors.acrux.com.au/investor-centre. Regular online and compulsory training events are conducted for all staff to reinforce our policies and expectations on topics such as harassment, bullying, corruption, diversity, inclusion, whistleblowing and Code of Conduct. Acrux Annual Report 2025 9 ENVIRONMENTAL includes preservation of our natural environment SOCIAL consideration of the safety and wellbeing of patients and our employees GOVERNANCE practising good corporate governance Stakeholders Understanding the needs and expectations of our stakeholders is fundamental to the achievement of our Goals. We are committed to engaging with our stakeholders in Australia and internationally to improve our performance and to understand their priorities and objectives. — Patients: as the number of marketed products grows, the number of patients using our products is increasing and will continue to do so. — Commercial partners and licensees: are expected to uphold behaviours which are consistent with our Code of Conduct. — People: our employees are at the heart of Acrux. We engage regularly with our team, holding bi-monthly ‘All Staff’ meetings and frequent social activities. We review employee performance at least a twice a year including written feedback and quantifiable performance measurement. — Suppliers: we source materials from qualified global suppliers and contracted Contract Manufacturing Organisations (‘CMOs’) which are qualified to manufacture commercial products for the US market. We audit our CMOs to ensure they meet both our standards and the standards set by regulators for the country the product they manufacture is intended to be sold. — Shareholders: To engage with current and potential investors we regularly communicate through ASX announcements. We convene public webinars after announcing each half year result. Webinar details are published in advance on the ASX platform and may be attended by any shareholder or interested party. We regularly meet individual shareholders outside closed reporting periods and present at investor forums. Investor presentation decks are released around the time of results announcements and keep stakeholders abreast of our progress. — Government: We access funding through the Australian Federal Government’s Research and Development Taxation Incentive program for which we are grateful. We are regulated by and licensed by the Australian Therapeutic Goods Administration and the US Food and Drug Administration (‘FDA’) allowing us to manufacture certain products in our laboratory to clinical trial stage. Governance Tenet Acrux is committed to good corporate governance, including ethical conduct, to comply with prevailing laws and regulations and to effectively manage risk. The Board is responsible for the effective leadership of Acrux and maintaining high standards of Governance. The Board leads by setting our strategy and values, overseeing implementation by management. Directors are expected to act with integrity and promote Acrux’s culture and values. The Board also ensures there are appropriate processes in place to manage risk, including setting the Company’s risk appetite and monitors financial and operational performance against objectives. Acrux’s corporate governance policies are published on the Company’s website, https://www.acrux.com.au and the Company’s RIOS – Together Anything is Possible model articulates our Company Values and core behaviours expected of all Directors and employees. The RIOS Company Values are: Round the clock, Innovation, Openness and Standout. Commitment to these Values underpin how our employees work together to solve problems and make decisions and must be demonstrated in order for an employee to be invited to participate in short and long term incentive programs. GOVERNANCE STRUCTURE Ethics and Values Acrux maintains high standards of corporate governance with Directors and employees expected to act responsibly and with integrity at all times. Our corporate governance program is aligned with our strategy and purpose and is well established and mature. All Directors, employees and other parties representing the Company are required to follow the Company’s principles, legal and ethical standards as consistent ethical behaviour promotes both inclusion and trust. Our Code of Conduct documents and communicates the framework for the way Acrux conducts business and relates to stakeholders including shareholders, employees, business partners and suppliers as well as the wider community and the environment in which the Company operates. We expect third parties with whom we work to comply with the principles outlined in our Code of Conduct which can be viewed in the Investor Relations section of our website, https://investors.acrux.com.au/investor-centre. It is important that Acrux’s employees and other stakeholders feel safe and empowered to report concerns about behaviour which may appear to be inconsistent with our Code of Conduct or other company policies. Our Whistleblower Policy ensures such reports can be made in good faith with the confidence they will be investigated fairly and confidentially whilst protecting the person who made the report and can be viewed in the Investor Relations section of our website, https://investors.acrux.com.au/investor-centre. Environment, Social and Governance (continued) 10 Compulsory on line training and quizzes are delivered to all employees to reinforce Acrux’s Code of Conduct and educate staff on Whistleblower rights and protections, diversity and inclusion and outlining expected conduct to avoid sexual harassment, work place bullying and bribery, corruption and fraud. The Code of Conduct, Whistleblower Policy, Security Trading Policy, Diversity and Inclusion Policy and Anti-Bribery, Corruption and Fraud Policy, are each reviewed annually by the Board of Directors and are published on our public internet and staff intranet sites. Structure of the Board and Board Committees Acrux’s corporate governance and risk and compliance framework reflects and supports the Company’s values and culture and stands alongside the legislative requirements of the Corporations Act 2001 and the guidance in the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th edition). All governance practices recommended by the ASX have been implemented by Acrux, unless otherwise stated in the Corporate Governance Statement. Our Corporate Governance Statement is considered and approved by the Board annually, announced to the ASX and can be viewed in the Investor Relations section of our website, https://investors.acrux.com.au/investor-centre. The Board Charter is central to Acrux’s corporate governance framework as it lays out the responsibilities and duties of the Board of Directors and can be viewed in the Investor Relations section of our website, https://investors.acrux.com.au/investor-centre. Key Board responsibilities include overseeing management, providing strategic direction, capital planning, risk management, monitoring performance, human resource strategies and approval of budgets and business plans. Day to day management including the implementation of approved strategies and business plans, is delegated to the CEO and Managing Director and the leadership team. The Board maintains a breadth of skills in its membership, which considers individual experience and background in the pharmaceutical industry, leadership and strategy, international business, legal, finance and accounting, risk management, corporate governance, organisation and talent development as well as team fit and balance within the Board. Directors are required to demonstrate commitment to the Company’s RIOS – Together Anything is Possible values. Details of the members of the Board, their experience and personal qualifications are outlined in this Annual Report. The Audit and Risk Committee has been established to assist the Board fulfil its corporate governance and oversight responsibilities relating to financial accounting practices, internal control systems, risk management, external financial reporting and audit. Managing risk is essential to operating and growing our business safely, effectively, and sustainably. We identify, assess and monitor risks through our Risk Management Framework with consideration of each risk’s potential impact, probability, detectability and the existence of mitigating factors. The Board has ultimate oversight over risk management and the Audit and Risk Committee monitors the overall effectiveness of our risk management and internal controls framework. The Human Capital and Nominations Committee has been established by the Board to ensure the Board is comprised of individuals who can best discharge the responsibilities of Directors. Responsibilities of the Human Capital and Nomination Committee include recruitment and retention of Directors and employees of high quality and motivation to drive long term growth, establishment of the remuneration framework and other people related policies. Where appropriate, Board Committees make recommendations for consideration by the Board. Board and Committee Charters can be viewed in the Investor Relations section of our website, https://investors.acrux.com.au/investor-centre. CEO and Managing Director Senior Management Employees CORPORATE GOVERNANCE FRAMEWORK as well as Company ethics, values and culture RIOS and other Corporate Governance Policies Board of Directors, supported by: Audit Committee Capital and Committee Responsibility: Overseeing management and setting the strategic direction Responsibility: Day to day management and implementation of strategy Acrux Annual Report 2025 11 BOARD OF DIRECTORS AND SENIOR MANAGEMENT The following persons were Directors of Acrux during and since the end of the financial year: Ross Dobinson Chairman, Non-executive Director Geoffrey Brooke Non-executive Director Don Brumley Non-executive Director Timothy Oldham Non-executive Director John Warmbrunn Chief Executive Officer and Managing Director, commenced 1 June 2025 Michael Kotsanis Chief Executive Officer and Managing Director, to 30 May 2025, employment ceased 4 July 2025 Six directors were in office throughout the reporting period. The four independent, Non-Executive directors each held office from the commencement of the financial year to the date of this report. John Warmbrunn commenced as CEO and Managing Director with effect from 1 June 2025 and Michael Kotsanis ceased as a Director on 30 May 2025, remaining as an employee to 4 July 2025 to support John’s transition. INFORMATION ON DIRECTORS AND COMPANY SECRETARY The qualifications, experience and special responsibilities of each person who has acted as a Director of Acrux Limited since 1 July 2024 is provided here, together with details of the Company Secretary and other Senior Managers as at the year end. Ross Dobinson, appointed March 1998 Responsibilities Chairman, Independent Non-executive Director Qualifications Bbus (Acc) Experience Ross is a founder and former CEO of Acrux and has been a Director since 1998. He was first appointed as Chairman in January 2006, additionally holding the role of Executive Chairman from July 2012 to October 2014. Ross has a background in investment banking and stockbroking. He was a founding Director of Starpharma Holdings Limited (ASX: SPL) and was formerly a Director of Reliance Worldwide Corporation (ASX: RWC), Executive Director of Hexima Limited (ASX: HXL), Chairman of TPI Enterprises Limited (now Palla Pharma Ltd. ASX: PAL), Director of Roc Oil Company Limited (ASX: ROC) and a Director of Racing Victoria Limited. John Warmbrunn, commenced June 2025 Responsibilities Chief Executive Officer and Managing Director Qualifications BSc, MBA, AICD Experience John has over 25 years of experience in building and scaling businesses, particularly in the healthcare sector. For 12 years he held senior commercial roles at Ego Pharmaceuticals, Australia’s leading dermatological pharmaceutical company, leading growth of the company’s export business to over 50% of turnover. John started his industry career in sales at Sandoz and held various management roles as it merged to form Novartis, eventually establishing the company’s OTC business in Australia and New Zealand. He also held a senior role with Bristol Myers Squibb (Convatec). John gained experience in running a listed company as CEO of Bendigo Community Telco (NSX: BCT) where he led the company to a successful IPO. John has a Bachelor of Science in Genetics from the University of Melbourne, an MBA from Macquarie Business School and is a member of the Australian Institute of Company Directors. Environment, Social and Governance (continued) 12 Michael Kotsanis, Director from November 2014 to May 2025 Responsibilities Chief Executive Officer and Managing Director Qualifications BSc, Grad Dip Bus, Mbus Experience Michael has more than 30 years of experience in the pharmaceutical industry. He was formerly the Chief Commercial Officer and a Board Member of Synthon Holding BV, a Dutch based pharmaceutical company. He was President, Europe, Middle East and Africa for Hospira, the global leader in generic injectable pharmaceuticals prior to its acquisition by Pfizer. Michael joined Hospira following its acquisition of Mayne Pharma in 2007, where he had served as President, Asia Pacific, joining Mayne following their acquisition of FH Faulding in 2001, where he led the commercial activities in Australia and New Zealand. Prior to Faulding, Michael held a variety of sales and marketing positions with a German multinational pharmaceutical company. Michael is a former Non-executive Director of IDT Australia Limited (ASX: IDT). Geoff Brooke, appointed June 2016 Responsibilities Independent Non-executive Director, member of the Audit and Risk Committee and Human Capital and Nomination Committee. Qualifications MBBS, MBA Experience Geoff has more than 30 years of venture capital experience and founded GBS Venture Partners in 1996. In 2014 he retired from GBS and now concentrates on privately investing in a small number of companies. Geoff was President of Medvest, a US-based early-stage venture capital group he founded with Johnson & Johnson. Geoff’s experience includes company formation and acquisitions, as well as public listings on the NYSE, NASDAQ and ASX exchanges. He commenced as Chairman of Actinogen Medical Limited (ASX: ACW) in 2017 and has been a founder, executive and director of private and public companies. In 2020 Geoff commenced as Chairman of Cynata Therapeutics Limited (ASX: CYP) and was an independent director of the Victoria WorkCover Authority between 2009 and 2015. Geoff is licensed in clinical medicine by the Medical Board of Australia and his postgraduate work was in anaesthetics and intensive care. He earned his Bachelor of Medicine/Surgery from the University of Melbourne and a Master of Business Administration from IMEDE (now IMD) in Lausanne, Switzerland. Don Brumley, appointed June 2021 Responsibilities Independent Non-executive Director, Chair of the Audit and Risk Committee and member of the Human Capital and Nomination Committee. Qualifications FCA, AICD Experience Don has 30 years’ experience as a senior partner of Ernst & Young, Oceania. He has extensive experience in IPOs, transactions and audit and has advised and worked with Boards of organisations ranging from some of the largest in Australia to fast growing entrepreneurial and medium sized organisations. Don was the Oceania IPO Leader at Ernst & Young and worked with clients listing on the Australian, US, UK and key Asian stock exchanges. He held positions as Biotech Markets Leader, National Leader of Strategic Growth Markets and on the Board of Partners of Ernst & Young. He is a Fellow of Chartered Accountants Australia & New Zealand and is a member of the Australian Institute of Company Directors. He was previously Chairman and Non-executive director of Bio-Gene Technology Ltd (ASX: BGT). Tim Oldham, appointed October 2013 Responsibilities Independent Non-executive Director, member of the Audit and Risk Committee and Chair of the Human Capital and Nomination Committee. Qualifications BSc (Hons), LLB (Hons), PhD Experience Tim has 20 years of life sciences business development, alliance management and sales and marketing experience in Europe, Asia and Australia. He is the CEO and Managing Director at AdAlta Ltd (ASX: 1AD), a clinical stage biotech company developing novel cell and protein therapeutics. Prior to this, he led Tijan Ventures, a life sciences advisory business focussed on strategic advisory and leadership services and acquiring cell and gene therapy assets. He was previously CEO and Managing Director of Cell Therapies Pty Ltd and President of Asia Pacific for Hospira, Inc., having held a variety of senior management roles encompassing development and commercialisation of generic pharmaceuticals, devices, biologics and cellular therapies with Mayne Pharma Ltd prior to its acquisition by Hospira. Tim began his career as an engagement manager with McKinsey & Company. Tim has been a Non-executive Director of BioMelbourne Network Inc, chaired the European Generic Medicines Association Biosimilars and Biotechnology Committee and was a Non-executive Director of the Alliance for Regenerative Medicine and Non-executive Director of the Generic Medicines Industry Association. Acrux Annual Report 2025 13 Felicia Colagrande – Product Development and Technical Affairs Director since February 2015 Qualifications BSc (Hons), MBA Experience Felicia has a broad background in pharmaceutical operations, topical drug development, analytical development and production. Felicia leads and facilitates all technical aspects of Acrux’s pharmaceutical product development including formulation development, analytical development, CMC development, Quality, Intellectual Property and bioequivalence, with a focus on generic topical products and exploiting the company’s drug delivery technology. Felicia has over 25 years of experience in the pharmaceutical/biotech industry and joined Acrux in 2001. She has held positions at Faulding Pharmaceuticals, the Department of Clinical Pharmacology and Therapeutics at the Austin Hospital, Silliker-Microtech Laboratories and was an Adjunct Appointee Lecturer with the Faculty of Pharmacy and Pharmaceutical Sciences at Monash University. Felicia has a Bachelor of Science degree (with Honours) from La Trobe University and a MBA from the Australian Institute of Business. Mark Hyman – Project and Technical Development Director since July 2020 Qualifications BSc Experience Mark has a diverse background in the pharmaceutical and medical device industry. Following a pharmacokinetic research role with Melbourne University, Mark has more than 30 years’ industry experience and having held leadership positions in Quality, Manufacturing, Logistics & Operations, Product Development, Project Management and Commercial Development. Mark’s experience spans prescription and consumer health, proprietary and generic products across topical, oral and injectable dose forms and drug infusion systems. With specialty expertise in project and technical management, Mark has a deep background in technology transfer and organisation development to establish comprehensive product development, portfolio and project management processes. Mark has a Bachelor of Science degree in Chemistry and Pharmacology from Monash University. INFORMATION ON SENIOR MANAGEMENT Joanna Johnson, Company Secretary since June 2021 Responsibilities Chief Financial Officer and Company Secretary Qualifications CA, Bec, Grad Dip Management Experience Joanna is an experienced Chief Financial Officer and Company Secretary and is a member of the Institute of Chartered Accountants Australia and New Zealand. She has 30 years of experience in the pharmaceuticals industry, having held the roles of Chief Financial Officer and Company Secretary at IDT Australia Ltd and Generic Health Pty Ltd. She was Finance Director, Asia Pacific for Hospira Inc and Mayne Pharma Ltd and Commercial Manager for Australia New Zealand for FH Faulding Ltd. She has led both small and large finance teams, both nationally and internationally, through all aspects of reporting, business planning, budgeting, forecasting and analysis as well as equity capital raising, taxation, risk management, corporate compliance and investor relations. Joanna holds a Bachelor of Economics from Adelaide University and a Graduate Diploma in Business Management from the University of South Australia. Environment, Social and Governance (continued) 14 Acrux Annual Report 2025 15 DIRECTORS REPORT, INCLUDING REMUNERATION REPORT Stephen, Formulation Scientist The Board of Directors of the consolidated entity consisting of Acrux Limited (‘Acrux’) and its controlled entities (collectively the ‘Group’) has pleasure in presenting this report for the financial year ended 30 June 2025. Complying with the provisions of the Corporations Act 2001, the Directors report as follows: DIRECTORS The following persons were Directors of Acrux during and since the end of the financial year: Ross Dobinson Chairman, Non-executive Director Geoffrey Brooke Non-executive Director Don Brumley Non-executive Director Timothy Oldham Non-executive Director John Warmbrunn Chief Executive Officer and Managing Director from 1 June 2025 Michael Kotsanis Chief Executive Officer and Managing Director to 30 May 2025, employment ceased 4 July 2025 With the exception of Michael Kotsanis and John Warmbrunn, all Directors held office from the commencement of the financial year to the date of this report. Biographical details of the Directors and Company Secretary are provided in the Governance Section of this Annual Report, including their period of office, qualifications, independence, experience, particular responsibilities and other reportable directorships. ATTENDANCE OF MEETINGS BOARD OF DIRECTORS AUDIT AND RISK COMMITTEE HUMAN CAPITAL AND NOMINATION COMMITTEE HELD ATTENDED HELD ATTENDED HELD ATTENDED Ross Dobinson 8 7 - 2* - 1* Geoffrey Brooke 8 7 2 2 2 2 Don Brumley 8 8 2 2 2 2 Timothy Oldham 8 8 2 2 2 2 John Warmbrunn 1 1 - - - 1* Michael Kotsanis 7 7 - 2* - 1* Directors who are not Committee members are invited to attend Committee meetings. Where a Director has attended a Committee Meeting of which they are not a member their attendance is denoted with an asterix (*). PRINCIPAL ACTIVITIES Acrux is a specialty pharma company with a successful track record of developing and commercialising a pipeline of topically applied generic pharmaceutical products which use dermal and transdermal drug delivery technology for the US and other global markets. There has been no significant change in the nature of these activities during the financial year. 16 For the year ended 30 June 2025 DIRECTORS’ REPORT REVIEW OF OPERATIONS A review of the operations of the Group during the year and the results of these operations are as follows: Operating review Three topically applied generic products were launched this year: — Dapsone 7.5%, Gel was launched in the US in May 2025. Dapsone 7.5%, Gel is a generic version of Aczone® Gel, 7.5%, indicated for the topical treatment of acne vulgaris in patients 9 years of age and older. IQVIA reported annual addressable market sales in the US of US$43.9 million for the 12 months to December 2024. Acrux’s product is manufactured and packaged in the United States and is marketed in a tube presentation which positively differentiates it from its direct competitors which only are available in pump bottle packaging; — Nitroglycerin Ointment, 0.4%, was both approved by the FDA and launched in December 2024. This product is a generic of Rectiv®, indicated for treatment of moderate to severe pain associated with chronic anal fissure. IQVIA reports annual addressable market sales in the US for the 12 months to December 2024 totalling US$23.8 million; and — In January 2025 the 90 gram pack size of Dapsone 5%, Gel was launched in the US meaning both the 60 gram and 90 gram pack sizes are now marketed by our licensee, improving our products’ attractiveness to wholesalers. Annual market sales in the US for the 12 months to December 2024 for Dapsone 5%, Gel products as reported by IQVIA total US$13.9 million. Acrux’s now has five products which are marketed in the US: — Nitroglycerin Ointment, 0.4%, launched in December 2024 by our licensee TruPharma, as a treatment for pain associated with anal fissure; — Dapsone 5%, Gel, launched in April 2024, treats acne vulgaris and is marketed by TruPharma; — Dapsone 7.5%, Gel, launched in May 2025, also treats acne vulgaris and is marketed by TruPharma; — Prilocaine 2.5% and Lidocaine 2.5%, Cream, launched in December 2022 is a topical anaesthetic marketed by Padagis. IQVIA reports sales in the US for the addressable market for the product for the 12 months to December 2024 of US$20.9 million, and — Estradiol Spray, treats symptoms associated with menopause and is marketed as Evamist® by Padagis. Acrux’s generic version of Jublia® (efinaconazole) 10%, Topical Solution used to treat fungal infections of toenails is approved by the FDA and will be commercialised in the future in accordance with the terms of the Settlement Agreement in relation to the Paragraph IV patent litigation. Revenue growth is a primary objective and is achievable as Acrux expands the number of marketed products in the US and other global markets. In support of these product launch milestones, other important events included: — December saw the conclusion of a Placement to sophisticated and institutional investors and a Share Purchase Plan, together raising $3.376 million after applicable costs. Capital subscribers were offered one free Attaching Option for each share subscribed and 50 million Options were issued to Lead Managers, approved at an Extraordinary General Meeting (‘EGM’) of shareholders in February; — $2.976 million was received in relation to the Research and Development Tax Incentive (‘RDTI’) for FY24. In April $1.73 million was received under a short term funding arrangement with Radium Capital, this loan is repayable on receipt of the FY25 RDTI rebate and represents approximately 80% of the estimated as RDTI receivable for the 8 months to the end of February 2025. A second advance of $0.46 million for the period to the end of May was received in July; and — In February Michael Kotsanis indicated his intention to retire as Chief Executive Officer and Managing Director. Following a thorough search the Board was pleased to appoint John Warmbrunn to this role. John commenced at the beginning of June with Michael’s employment continuing to the beginning of July to ensure an orderly transition. Financial Performance Growth of higher quality product based profit share and royalty revenue is essential to fulfil Acrux’s growth objectives. The launch of two products in the US this year, Nitroglycerine 0.4%, Ointment in December 2024 and Dapsone Gel, 7.5% in May 2025, together with the addition of the 90 gram pack size of Dapsone 5%, Gel in January 2025 supports the growth of FY25 client based profit share and royalty revenues to $1.190 million in FY25 which will continue to grow in FY26 and beyond. Further information about the components of the consolidated loss before tax is reported in the Consolidated Statement of Profit or Loss and Other Comprehensive Income and Notes 4, 5 and 6 of the Consolidated Financial Statements. Acrux Annual Report 2025 17 Significant changes in the state of affairs In the opinion of the Directors, there have been no significant changes in the state of affairs of the Group during the financial year not otherwise disclosed in this report or the financial statements. After balance date events In July Acrux executed an agreement with Servacure Trading W.L.L. (‘Servacure’) for Dapsone 5%, Gel in Saudi Arabia. Dapsone 5%, Gel is indicated for the treatment of acne vulgaris and Acrux’s product is approved by the FDA and sold through a licensee in the United States. Servacure is responsible for obtaining regulatory approval and manufacturing for the Territory and will pay Acrux a fixed fee per unit for the aggregate unit volume of product shipped to customers. The contract is for 10 years with options for renewal. No other matter or circumstance has arisen since 30 June 2025 that has significantly affected the Group’s operations, results or state of affairs, or may do so in future years. Future Developments Acrux will continue to pursue and execute its strategy of developing a portfolio of marketed products in the US and other global markets. Acrux’s future financial results will be materially influenced by the commercial success of its currently marketed products and future strategic decisions concerning the progression of pipeline products and new opportunities. Evolving international trade policies are closely monitored, including consideration of the associated risks and opportunities. Indemnification and insurance of Directors, Officers and Auditors During the financial year, the consolidated entity paid a premium in respect of an insurance contract to indemnify officers against liabilities that may arise from their positions as officers of the Group. Officers who are indemnified include the Company Secretary, all Directors and executive officers participating in the management of the Group to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits public disclosure of the nature of the liability and the amount of the premium. The company has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer or auditor of the consolidated entity against a liability incurred as such an officer or auditor. DIRECTORS’ REPORT (continued) 18 REMUNERATION REPORT (AUDITED) The Directors of the Group are pleased to present the Remuneration Report forming part of the Report of Directors and prepared in accordance with s300A of the Corporations Act 2001. The Remuneration Report sets out remuneration information for the Group’s Key Management Personnel (‘KMP’), including any Director, who have authority and responsibility for planning, directing and controlling the Group’s activities, either directly or indirectly and explains the remuneration policies and philosophy adopted by the Board. It has been audited as required by s308 (3C) of the Corporations Act 2001. Remuneration Policy The Human Capital and Nomination Committee is responsible for recommending the Group’s remuneration framework to the Board, including structure of and participation in security and incentive plans. The key objectives of the Group’s remuneration framework are to: — remunerate at levels to attract, retain and motivate employees; — structure incentives to reward superior performance and increasing long term shareholder value; and — formally link remuneration to the achievement of business objectives. There have been no significant changes to remuneration policies implemented during the year. Remuneration Structure Employee remuneration is structured in two parts: — fixed remuneration, comprising salary, superannuation and benefits which may be provided in lieu of salary, benchmarked against comparable jobs in the industry sector; and — variable remuneration provided at the discretion of the Board comprising a short term incentive paid as a cash bonus and a long term incentive in the form of an equity instrument issued under the authority of the company’s Omnibus Equity Plan (‘OEP’). Short Term Incentive Plan Short term incentives reward employees for achieving the Corporate objectives established by the Board at the beginning of each year in consultation with senior management. Short term incentives for employees other than KMP additionally include reward for achievement of personal objectives as established at the beginning of the year in consultation with line management. Corporate objectives are linked to successful Company strategy execution and the creation of long term value for shareholders. All objectives have clearly defined and measurable outcomes. Short term incentives are paid at the Board’s discretion and are subject to achievement of objectives. The Chief Executive Officer and Managing Director will not receive a short term incentive in relation to FY25 and the incoming CEO and Managing Director may receive an incentive of up to 30% of his fixed renumeration in connection with performance for FY26 and beyond. Other Senior management may receive an incentive up to 24% of fixed remuneration. Long Term Incentive Plan The long term incentive plan is designed to align the interests of management with shareholders for the achievement of long term superior performance and is in accordance with the requirements of ASX Listing Rules and the Pooled Development Funds Act 1992. The OEP governs the issue of securities to employees and Directors and was approved by shareholders at the 2023 Annual General Meeting (‘AGM’). Subject to service criteria, permanent employees may be offered performance rights, options and / or ordinary shares. Grants of securities to employees under the OEP are summarised as follows: Acrux Annual Report 2025 19 A. Chief Executive Officer and Managing Director (‘CEO’) At the 2021 AGM, 6 million performance rights were granted to the outgoing CEO, Michael Kotsanis. The first of the four equal tranches vested in FY25 and the remaining three tranches have not vested and were cancelled at cessation of employment in July. Subject to approval at the next AGM, the incoming CEO, John Warmbrunn, will be granted 8 million Options over ordinary shares of Company. This grant will be in five tranches of 1.6 million Options each with a nil issue price. The first tranche vests as soon as practical after his appointment and tranches 2 to 5 will vest over the next four anniversaries, subject to continued employment. The exercise price of first tranche of Options is the 10 day Volume Weighted Average Price (‘VWAP’) of the underlying ordinary shares at time the Employment Contract was executed and the exercise price of subsequent tranches is the greater of the Tranche #1 exercise price and the 10 day VWAP of the underlying shares at time the relevant Tranche is granted. B. Senior management, including KMP Directors may grant performance rights to senior management, including KMP, and typically make such grants on an annual basis. Each grant vests after one year, provided the TSR is at least 10% and employment is continuous. Unvested tranches may be rolled over to following years up to three years but are subject to an additional TSR hurdle of 10% for each additional year. Subject to achievement of vesting conditions, each performance right carries the right to one ordinary share in Acrux Ltd, expires seven years after granting and is expensed over the life of the instrument. C. Employees, excluding KMP At its discretion the Board may approve the annual issue of up to $1,000 value of tax exempt ordinary shares to employees who are not KMP at nil cost to the employee. These shares have no vesting conditions and are held in escrow for the lesser of 3 years or cessation of employment. Further information about Share based payments is reported in Note 19 to the accounts. The following table summarises the Group’s earnings and other key performance indicators to 30 June 2025: 2025 2024 2023 2022 2021 Revenue ($000’s) 4,528 8,098(1) 11,928(1) 5,103 5,156 Loss before tax ($’000) (5,937) (5,800) (212) (9,582) (12,432) Dividends paid to shareholders - - - - - Share Price at end of the year (cents) 1.6 7.0 4.2 5.2 13.0 Basic earnings / (loss) per share (cents) (1.69) (2.00) (0.27) (3.46) (5.75) Number of Ordinary Shares on Issue 407,763,526 290,716,856 288,175,456 285,364,669 283,305,394 Market Capitalisation ($ million) 6.93 20.35 12.10 14.84 36.83 (1) Reported revenue for FY24 included $3.957 million (FY23 $0.558 million) profitless sales of Active Pharmaceutical Ingredients (‘API’) passed through to our contract manufacturer plus in FY23 $6.337 million received in relation to the monetisation of Lenzetto’s® future royalty stream. Remuneration of Directors The Human Capital and Nomination Committee determines the level of remuneration necessary to attract and retain Directors with the skills and experience required by the Group at its stage of development. The Committee makes recommendations to the Board. The total value of Non-executive Director’s remuneration is paid in equal proportions of cash and rights. No short term incentives or retirement allowances are paid to Non-executive Directors nor is additional remuneration received for membership of Board Committees. The maximum aggregate value of Non-executive Directors’ annual remuneration is $450,000, as approved at the 2004 Annual General Meeting. DIRECTORS’ REPORT (continued) 20 Remuneration of each person who held the position of Non-executive Director at any time during the financial year is outlined below: Director Fee Payments $ Post Employment Superannuation $ Share Based Payments (Rights) $ Total Remuneration $ 2025 Ross Dobinson (Chair) 56,075 14,211 53,941 124,227 Geoff Brooke 36,925 9,174 34,238 80,337 Don Brumley 36,925 9,174 34,238 80,337 Timothy Oldham 36,925 9,174 34,238 80,337 166,850 41,733 156,655 365,238 2024 Ross Dobinson (Chair) 37,079 29,121 64,914 131,114 Geoff Brooke 35,000 8,470 41,184 84,654 Don Brumley 35,000 8,470 40,542 84,012 Timothy Oldham 35,000 8,470 41,184 84,654 142,079 54,531 187,824 384,434 Remuneration and termination entitlements of Senior Management Senior management do not have fixed terms of employment and their employment contracts may be terminated by either party based on notice periods of three months. There is no entitlement to termination benefits beyond statutory entitlements. Names and positions of Senior management of the Group in office during the financial year are: John Warmbrunn Chief Executive Officer and Managing Director from 1 June 2025 Michael Kotsanis Chief Executive Officer and Managing Director to 30 May 2025 continuing as an employee to 4 July 2025 Felicia Colagrande Product Development and Technical Affairs Director Mark Hyman Project and Technical Development Director Joanna Johnson Chief Financial Officer & Company Secretary Acrux Annual Report 2025 21 Michael Kotsanis commenced as CEO and Managing Director in November 2014, continuing as a Director until the end of May 2025 and as an employee until July 2025. As an Executive Director his remuneration details are reported below until the date he ceased as a Director and as KMP. Remuneration of the Group’s senior management is detailed in the following table: Primary Post Employment Long Term Benefit Share Based Payments Salary $ Movement Provision Annual Leave(3) $ Short Term Incentive (4) $ Super- annuation $ Long Service Leave Accrued(3) $ Perfor- mance Rights(5) $ Total Remun- eration $ Equity as % Total % Bonus as % Total % 2025 John Warmbrunn(1) 30,269 5 - 3,481 1 3,226 36,982 9% 0% Michael Kotsanis(2) 456,884 (12,147) - 29,932 12,509 (26,950) 460,228 (6%) 0% Felicia Colagrande 250,564 (2,864) 12,023 28,709 6,835 7,897 303,164 3% 4% Mark Hyman 242,001 1,019 11,616 27,830 6,330 7,897 296,693 3% 4% Joanna Johnson 252,787 4,557 12,118 28,699 3,150 7,897 309,208 3% 4% 1,232,505 (9,430) 35,757 118,651 28,825 (33) 1,406,275 0% 2% 2024 Michael Kotsanis 480,143 27,221 35,068 27,399 13,739 118,389 701,959 17% 5% Felicia Colagrande 241,688 (2,235) 10,634 26,586 4,668 14,630 295,971 5% 4% Mark Hyman 233,517 (2,090) 10,275 25,687 5,896 11,824 285,109 4% 4% Joanna Johnson 243,603 3,997 10,719 26,346 2,505 11,446 298,616 4% 4% 1,198,951 26,893 66,696 106,018 26,808 156,289 1,581,655 10% 4% (1) John Warmbrunn commenced as CEO and Managing Director on 1 June 2025 and his remuneration is reported from that date. His employment contract includes provision for Options to be issued, subject to approval at the next AGM. An accrual for the fair value of these Options for the reporting period has been recorded on the assumption that shareholder approval is granted. (2) Whilst Michael Kotsanis continued as an employee to 4 July 2025 to support John Warmbrunn’s transition, his remuneration is reported for the period to 30 May 2025, being the date he ceased to be CEO and Managing Director and KMP. Due to his resignation Michael failed to achieve the service criteria for the fourth and final tranche of the 6m rights granted to him in 2021. Consequently, the value of the share based payments previously expensed for this tranche has been reversed. On his termination in July 2025 Michael received no benefits other than payment for unused Annual and Long Service Leave. (3) Employees do not accumulate Annual Leave balances which materially exceed their annual entitlement of four weeks. An expense is recorded where a Senior manager has used less than their full Annual or Long Service Leave entitlement in a given year. (4) A short term incentive may be paid based on achievement of Corporate Objectives established at the beginning of the financial year. For the year ended 30 June 2025, the Board assessed achievement at 30% with these balances to be paid in FY26. For the year ended 30 June 2024, the Board assessed achievement at 27.5%, paid in August 2024. (5) Performance rights are issued to senior employees with the accounting expense recognised over the vesting period. DIRECTORS’ REPORT (continued) 22 Equity instruments held by Key Management Personnel Ordinary shares held by KMP at financial year end is detailed in the following table: Balance 1 July 2024 Share Placement subscription(2) Rights exercised Balance 30 June 2025 Directors Ross Dobinson 5,249,245 571,428 - 5,820,673 Geoff Brooke (1) 1,690,301 285,714 - 1,976,015 Don Brumley 3,396,108 2,285,714 1,245,544 6,927,366 Tim Oldham(1) 1,519,619 285,714 1,062,946 2,868,279 Senior Management Michael Kotsanis(3) 1,511,083 857,142 - John Warmbrunn - - - - Felicia Colagrande 484,701 285,714 - 770,415 Mark Hyman 66,477 - - 66,477 Joanna Johnson - - - - 13,917,534 4,571,426 2,308,490 18,429,225 1) Includes relevant interests under the control of the KMP, these ordinary shares are held both directly and through controlled or associated entities. 2) Includes participation in Capital Raising through Placement to sophisticated and institutional investors. 3) As at 30 May 2025, the date Michael Kotsanis ceased to be a Director and KMP he owned 2,368,225 Ordinary shares. Options One Attaching Option was offered to subscribers to the Share Purchase Plan and Placement for each for each share subscribed. Attaching Options are listed on the ASX under the ticker ACRO and were issued in February 2025 having an exercise price of 5.25 cents and expiry date of 19 February 2027. Options held by KMP are detailed in the following table. Balance 1 July 2024 Issued during the year Purchased / (Sold) on ASX Options Exercised Balance 30 June 2025 Directors Ross Dobinson - 571,428 - - 571,428 Geoff Brooke - 285,714 - - 285,714 Don Brumley - 2,285,714 - - 2,285,714 Tim Oldham - 285,714 - - 285,714 Senior Management - - Michael Kotsanis(2) - 857,142 - - John Warmbrunn(1) - - - Felicia Colagrande - 285,714 - - 285,714 Mark Hyman - - - - - Joanna Johnson - - - - - - 4,571,426 - - 3,714,284 (1) John Warmbrunn will receive 8 million Options subject to approval at the next AGM. Unlike the Attaching Options offered in association with the Capital Raising, these CEO Options will not be listed on the ASX and have vesting and exercising criteria linked to employment and share price movement. (2) As at 30 May 2025, the date Michael Kotsanis ceased to be a Director and KMP he owned 857,142 Options. Acrux Annual Report 2025 23 Rights (a) Compensation Performance Rights: Granted and vested during the year 1,609,200 performance rights were issued to eligible employees on 18 February 2025, including but not limited to Senior managers. These performance rights may vest after one year provided the TSR over that period is equal to or is greater than 10% and employment is continuous. They have roll over provisions and expire after 7 years. (b) Rights issued to Directors as a component of remuneration 4,101,998 rights representing approximately half of the value of Non-executive Director’s annual remuneration were issued to Non-executive Directors on 12 December 2024 after approval by shareholders at the 2024 Annual General Meeting. As these rights are received in lieu of salary they vest quarterly and have no performance conditions other than continuous service. The following table sets out the number of rights held by KMP. Balance at 1 July 2024 Granted as remuneration Exercised / Cancelled Balance at 30 June 2025 Value of Rights Granted $(3) Non-executive Directors Ross Dobinson 1,256,554 1,411,994 - 2,668,548 45,184 Geoff Brooke 1,062,946 896,668 - 1,959,614 28,693 Don Brumley 797,210 896,668 1,245,544 448,334 28,693 Tim Oldham 1,062,946 896,668 1,062,946 896,668 28,693 Senior Management Michael Kotsanis(2) 6,000,000 - - - John Warmbrunn - - - - - Felicia Colagrande(1) 905,000 360,000 140,000 1,125,000 11,520 Mark Hyman(1) 905,000 360,000 140,000 1,125,000 11,520 Joanna Johnson 765,000 360,000 - 1,125,000 11,520 12,754,656 5,181,998 2,588,490 9,348,164 165,823 (1) Performance Rights issued to Felicia Colagrande and Mark Hyman in 2021 were cancelled because the vesting conditions were not met. (2) As at 30 May 2025, the date Michael Kotsanis ceased to be a Director and KMP he owned 6,000,000 Rights. Rights not vested at the time he ceased to be an employee were cancelled. (3) The value of rights granted to Non-executive Directors reported above have been valued using the share price as at the date of issue. DIRECTORS’ REPORT (continued) 24 Rights which have been issued to Directors and employees but are neither exercised nor cancelled as at 30 June 2025, are as follows: Date rights granted Number rights Value at grant date Minimum Exercise price (5) Rights expiry date 25 January 2018 7,000 $0.17 $0.1579(2) January 2025(6) 4 February 2019 5,000 $0.18 $0.2081(2) February 2026 30 November 2021 6,000,000 $0.114 $0.1258-$0.1675(1) December 2028 10 February 2022 919,859 $0.103 $0.1133(3) February 2029 13 February 2023 1,059,000 $0.072 $0.0792(3) February 2030 5 December 2023 2,319,500 $0.040 -(4) November 2030 14 February 2024 1,417,500 $0.065 $0.07127(3) February 2031 12 December 2024 3,653,664 $0.032 -(4) November 2031 18 February 2025 1,589,200 $0.032 $0.03524(3) February 2032 16,970,723 (1) Exercise price is subject to a 10% performance hurdle applied each year for 4 equal annual tranches. The first tranche of 1,500,000 performance rights has vested and 4,500,000 unvested performance rights were cancelled at the time of Michael’s termination in July 2025. (2) Exercise price is subject to a 12% performance hurdle over a volume weighted price for the 30 days prior to the rights issue. (3) Exercise price is subject to a 10% performance hurdle over a volume weighted price for the 30 days prior to the rights issue. (4) Rights issued to Non-executive Directors comprise approximately half of their remuneration and as they are received in lieu of salary they vest quarterly in arrears and are not subject to an exercise price or performance hurdle. (5) Minimum exercise price is the hurdle which must be achieved for the Performance Rights to vest. If the original hurdle target is not achieved, additional uplift hurdles are applied each subsequent year for up to seven years for the right to vest. (6) As these rights have past their expiry date they are to be cancelled. Transactions with Directors and KMP concerning their remuneration and securities issued in accordance with the OEP are disclosed in Notes 18, 19 and 22. There were no transactions or contracts between the Company, Directors and KMP in 2025 not in relation to remuneration (2024: nil). This is the end of the audited remuneration report Acrux Annual Report 2025 25 Non-audit services Non-audit services are recommended by the Audit and Risk Committee and approved by the Board of Directors. Non audit services provided by the auditor, Pitcher Partners (Melbourne) and their network firms are detailed below. 2025 $ 2024 $ Amount paid or payable to Pitcher Partners (Melbourne) for non audit services 41,430 30,230 As non audit services relate to the provision of corporate tax advice and completion of company tax returns the Directors are satisfied that services provided are compatible with the general standard of auditors’ independence imposed by the Corporations Act 2001 for the following reasons: — all non audit services were subject to the Group’s corporate governance procedures and have been approved by the Audit and Risk Committee to ensure they do not impact on the integrity and objectivity of the auditor; and — non audit services do not undermine the general principles relating to auditor independence set out in APES 110 Code of Ethics for Professional Accountants (including independence standards) issued by the Accounting Professional & Ethical Standards Board, which includes reviewing or auditing the auditors’ own work, acting in a management or decision making capacity for the Group, acting as an advocate for the Group or jointly sharing economic risks and rewards. Auditor independence declaration A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 in relation to the audit for the financial year is included after this report. Rounding of amounts The Company has applied ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016, whereby amounts in the Directors’ Report and the financial statements have been rounded to the nearest one thousand dollars unless otherwise indicated. Directors Resolution This report is made in accordance with a resolution of the Directors made pursuant to s298(2) of the Corporations Act 2001. Ross Dobinson Don Brumley Non-executive Chairman Non-executive Director Melbourne Melbourne 29 August 2025 29 August 2025 DIRECTORS’ REPORT (continued) 26 ACRUX LIMITED AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF ACRUX LIMITED Pitcher Partners. An independent Victorian Partnership ABN 27 975 255 196. Level 13, 664 Collins Street, Docklands, VIC 3008 Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities Adelaide Brisbane Melbourne Newcastle Sydney Perth pitcher.com.au In accordance with section 307C of the Corporations Act 2001, I declare to the best of my knowledge and belief in relation to the audit of the financial report of Acrux Limited for the year ended 30 June 2025, there have been: (i) No contraventions of the auditor independence requirements of the Corporations Act 2001; and (ii) no contraventions of the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) in relation to the audit. This declaration is in respect of Acrux Limited and the entities it controlled during the year. PITCHER PARTNERS Melbourne J J MITCHELHILL Partner 29 August 2025 Acrux Annual Report 2025 27 AUDITOR’S INDEPENDENCE DECLARATION To the members of Acrux Limited Consolidated Note 2025 $’000 2024 $’000 Revenue from product agreements 4 1,190 5,091 Other revenue 4 3,338 3,007 Total revenue 4,528 8,098 Cost of goods sold - (3,957) Employee benefits expense 5 (5,093) (4,915) Directors’ fees (210) (197) Securities based payment expense 20 (216) (381) Depreciation and amortisation expenses 5 (467) (510) Occupancy expenses (248) (281) External research and development expenses (2,308) (2,418) Professional fees (359) (358) Interest expense (303) (178) Other expenses (1,260) (472) Total operating expenses (10,464) (9,709) Profit / (loss) before income tax (5,937) (5,568) Income tax expense 6 (8) (232) Net profit / (loss) for the year (5,945) (5,800) Total comprehensive profit / (loss) for the year (5,945) (5,800) Total comprehensive profit / (loss) attributable to: Members of the parent entity (5,945) (5,800) Loss per share for loss attributable to the equity holders of the parent entity: Basic profit / (loss) per share 8 (1.69) cents (2.00) cents Diluted profit / (loss) per share 8 (1.69) cents (2.00) cents The statement should be read in conjunction with the notes to these financial statements. 28 For the year ended 30 June 2025 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Consolidated Note 30 June 2025 $’000 30 June 2024 $’000 Current Assets Cash and cash equivalents 9 863 2,945 Receivables 10 3,791 2,889 Other current assets 11 149 147 Total Current Assets 4,803 5,981 Non-Current Assets Plant and equipment 12 389 597 Intangible assets 13 - - Deferred tax asset 6 564 572 Lease assets 14 1,469 1,813 Total Non-Current Assets 2,422 2,982 Total Assets 7,225 8,963 Current Liabilities Payables 15 1,621 1,074 Provisions 16 907 868 Borrowings 17 1,727 1,487 Lease liabilities 14 225 293 Total Current Liabilities 4,480 3,722 Non-Current Liabilities Provisions 16 39 41 Lease liabilities 14 1,683 1,924 Total Non-Current Liabilities 1,722 1,965 Total Liabilities 6,202 5,687 Net Assets 1,023 3,276 Equity Contributed equity 18 118,218 115,012 Reserves 21 9,037 8,551 Retained earnings / (losses) 20 (126,232) (120,287) Total Equity 1,023 3,276 The statement should be read in conjunction with the notes to these financial statements. Acrux Annual Report 2025 29 As at 30 June 2025 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note Contributed equity $’000 Reserves $’000 Retained earnings / (losses) $’000 Total equity $’000 Balance as at 1 July 2023 114,884 8,299 (114,487) 8,696 Profit / (loss) for the year - - (5,800) (5,800) Other comprehensive income / (loss) for the year - - - - Total comprehensive income / (loss) for the year - - Transactions with owners in their capacity as owners Employee share scheme 20 26 252 - 278 Rights exercised 18(b) 102 - - 102 Capital Raising 18(b) - - - - Balance as at 30 June 2024 115,012 8,551 (120,287) 3,276 Note Contributed equity $’000 Reserves $’000 Retained earnings / (losses) $’000 Total equity $’000 Balance as at 1 July 2024 115,012 8,551 (120,287) 3,276 Profit / (loss) for the year - - (5,945) (5,945) Other comprehensive income / (loss) for the year - - - - Total comprehensive income / (loss) for the year - - (5,945) (5,945) Transactions with owners in their capacity as owners Employee share scheme 20 25 100 - 125 Rights exercised 18(b) 91 - - 91 Capital Raising 18(b) 3,090 386 - 3,476 Balance as at 30 June 2025 118,218 9,037 (126,232) 1,023 The statement should be read in conjunction with the notes to these financial statements. 30 For the year ended 30 June 2025 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Consolidated Note 30 June 2025 $’000 30 June 2024 $’000 Cashflows from operating activities Receipts from product agreements 521 5,604 Payments to suppliers and employees (8,770) (12,771) Interest received 40 174 Finance costs (238) (179) Research and development tax incentive rebate 2,976 2,869 Net cash used in operating activities 22(a) (5,471) (4,303) Cashflows from investing activities Payment for property, plant and equipment (5) (276) Net cash used in investing activities (5) (276) Cashflows from financing activities Net proceeds from capital raising 3,376 - Proceeds short term borrowings 2,194 1,487 Short term borrowings repayments (1,959) - Lease liability principal repayments (217) (195) Net proceeds from financing activities 3,394 1,292 Net decrease in cash and cash equivalents (2,082) (3,287) Cash and cash equivalents at beginning of year 2,945 6,232 Cash and cash equivalents at the end of the year 22(b) 863 2,945 The statement should be read in conjunction with the notes to these financial statements. Acrux Annual Report 2025 31 For the year ended 30 June 2025 CONSOLIDATED STATEMENT OF CASHFLOWS This financial report covers Acrux Limited and its controlled entities as a Group. Acrux Limited is a for profit entity which is incorporated and domiciled in Australia. It is a company limited by shares which are publicly traded on the Australian Securities Exchange (‘ASX’). The address of Acrux Limited’s registered office and its principal place of business is 103-113 Stanley Street, West Melbourne, Victoria, 3003. The financial report was approved by the Directors as at the date of the Directors’ report. 1. DISCLOSURE OF MATERIAL ACCOUNTING POLICIES The material accounting policies adopted by the Group in the preparation and presentation of the financial report are described below or have been presented in the relevant note. Accounting policies have been consistently applied, unless otherwise stated. (a) Basis of preparation This general purpose financial report is prepared in accordance with Corporations Act 2001, Australian Accounting Standards, Interpretations and other applicable authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). This report also complies with, International Accounting Standards Board (‘IASB’) and International Financial Reporting Standards (‘IFRS’). Historical cost convention The financial report has been prepared using the historical cost convention, except for certain instruments which are measured at fair value, as described in the accounting policies. Fair value is the price as at measurement date expected to be received to sell an asset or paid to settle a liability in an orderly transaction under current market conditions, regardless of whether the price is directly observable or estimated using another valuation technique. When estimating the fair value of an asset or liability, valuation techniques appropriate in the circumstances are used and for which data is available to maximise the use of relevant observable inputs and to minimise the use of unobservable inputs. Inputs to valuation techniques used to measure fair value are categorised into three levels according to the extent to which they are observable: — Level 1 inputs are quoted prices in active markets for identical assets or liabilities accessible at measurement date — Level 2 inputs are inputs other than Level 1 quoted prices that are observable for the asset or liability, either directly or indirectly — Level 3 inputs are unobservable inputs for the asset or liability. Significant accounting estimates and judgements The preparation of this financial report has required certain estimates and judgements in applying the Group’s accounting policies. Estimates and judgements which are significant to the financial report are explained and disclosed in the Notes to the consolidated financial statements. (b) Going Concern Basis of Preparation This financial report has been prepared on a going concern basis contemplating the continuity of normal business activities and realisation of assets and the settlement of liabilities in the ordinary course of business. As reported in the financial statements, the Group incurred a loss after tax from ordinary activities of $5.945 million for the year ended 30 June 2025 (30 June 2024: loss after tax from ordinary operations $5.800 million) and as at balance date the Group had Total current assets of $4.803 million (2024: $5.981 million). The ability of the Group to continue as a going concern is dependent on its ability to generate future revenues which are sufficient to support progression of its development pipeline and its other operating activities. The Group expects to receive $3.005 million for RDTI in relation to FY25. Of this balance $1.727 million plus interest is repayable to Radium Capital in relation to the short term loan calculated based on eligible spending to 31 May and which accrues interest at a rate of 16% per annum. 32 For the year ended 30 June 2025 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. DISCLOSURE OF MATERIAL ACCOUNTING POLICIES (CONTINUED) The Directors believe the Group can meet its financial obligations as an when they fall due based on cashflow projections which have been prepared for a period of twelve months beyond the date of approval of these financial statements and which incorporate the following key assumptions: — Revenue to be generated from existing products and services in a range of locations; and — Continued eligibility of product development expenditure for RDTI rebate and ability to continue to enter short term funding arrangements. Directors closely monitor revenue and expenditure against projections and if cash inflows were to be materially lower than forecasted cash management strategies could be implemented include: — Deferral of project development activities and associated expenditure; — Management of operating and capital expenses; — Monetisation of other assets or revenue streams; — The ability to execute other financial and funding transactions as and if required. On this basis this financial report has been prepared on a going concern basis and no adjustments have been made relating to the recoverability and classification of the carrying amount of assets or the amount and classification of liabilities that might be necessary should the Group not continue as a going concern. Should the Group not achieve the assumptions detailed above and other initiatives were not implemented, there is a material uncertainty which would cast significant doubt as to whether the Group may be able to meet its debts as and when they fall due, and therefore continue as a going concern. In that circumstance the Group may be required to realise assets and extinguish liabilities other than in the ordinary course of business and at amounts which differ to those stated in the financial statements. (c) Principles of Consolidation The consolidated financial statements comprise the financial statements of the parent entity and all controlled entities. The Group controls an entity when it is exposed to, or has rights over, variable returns from its involvement and can affect those returns through its power to direct the entity’s activities. Financial statements of subsidiaries are prepared for the same reporting period as the parent, using consistent accounting policies. Inter-company balances and transactions between Group companies are eliminated on consolidation. A list of controlled entities is contained in Note 28 Controlled Entities. (d) Impairment of non financial assets In accordance with AASB 136 Impairment of assets, assets which are subject to depreciation are reviewed for impairment at least annually or when events or circumstances indicate the carrying amount may be impaired. An impairment loss is recognised where an asset’s carrying amount exceeds its estimated recoverable amount at the higher of its fair value less costs to dispose and its value in use. (e) Financial instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. For financial assets, this is the date that the Group commits itself to the purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value adjusted for transaction costs, except where the instrument is classified as fair value through profit or loss, in which case transaction costs are immediately recognised as expenses in profit or loss. Acrux Annual Report 2025 33 1. DISCLOSURE OF MATERIAL ACCOUNTING POLICIES (CONTINUED) Classification of financial assets Financial assets recognised by the Group are measured in their entirety at either amortised cost or fair value, subject to their classification and whether the Group irrevocably designates the financial asset on initial recognition at fair value through other comprehensive income (‘FVtOCI’) in accordance with the relevant criteria in AASB 9 Financial Instruments. Financial assets not irrevocably designated on initial recognition at FVtOCI are classified and measured at amortised cost, FVtOCI or fair value through profit or loss (‘FVtPL’) on the basis of both the Group’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. Impairment of financial assets Receivables from contracts with customers and contract assets are tested for impairment using the ‘expected credit loss’ impairment model. This simplified approach under AASB 9 Financial Instruments is applied to measure the allowance for credit losses for both receivables from contracts with customers and contract assets. The allowance for credit losses is determined based on the lifetime expected credit losses of the financial asset which represent the credit losses expected to result from default events over the expected life of the financial asset. Financial Liabilities Non-derivative financial liabilities include trade payables, other creditors and intercompany balances. Liabilities are recognised for future payments for goods and services received, whether or not they have been billed to the Group. Trade liabilities are usually settled within 30 days. (f) Foreign currency translation and balances Functional and presentation currency Items included in the Group’s financial statements are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). Consolidated financial statements are presented in Australian dollars, which is the functional and presentation currency of the Group and each subsidiary. Transactions and balances Foreign currency transactions are translated into functional currency at the exchange rate prevailing at transaction date. Foreign exchange gains and losses resulting from settlement of such transactions and translation of foreign currency denominated monetary assets and liabilities at period end exchange rates are recognised in profit or loss. Exchange differences arising on settlement or restatement are recognised as revenues or expenses in the financial year. (g) Rounding amounts The Company has applied ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016, relating to the “rounding off” of amounts in the financial statements. Amounts in the financial statements have been rounded in accordance with the Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar. (h) New and revised Accounting Standards effective as at 30 June 2025 All new and revised Australian Accounting Standards applicable to be adopted for the first time in the annual reporting period commencing 1 July 2024 have been applied with immaterial effect. (i) Accounting Standards issued but not yet effective Certain new standards and interpretations have been issued but as they are not yet mandatory they have not yet been applied by the Group. These standards are not expected to have a material effect on the Group in current or future reporting periods. (j) Comparative Information Where necessary comparative information has been reclassified and repositioned for consistency with current period disclosures. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 34 2. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS Certain estimates and judgements that may affect the reported values of assets, liabilities, revenues and expenses have been made in the preparation of these financial statements. Management continually and critically evaluates such estimates and judgements based on historical experience and other factors considered to be reasonable under the circumstances, including expectations of future events. The following critical judgements have been made in applying the Group’s accounting policies having the most significant effect on amounts recognised in the financial statements. (a) Impairment testing The Group prepares discounted cash flow models to ensure the carrying value of assets does not materially exceed their recoverable value. The following approach and assumptions have been applied: — Future product revenue is estimated using current market data to inform projected sales volumes, pricing and market share, as well as potential new competitors and anticipated approval and launch dates for new products; — Expenses are estimated based on projected product development requirements and a CPI uplift factor has been applied to operating overheads and salaries; and — Cash flow forecasts prepared over 10 years, discounted using an after tax rate of 12%. (b) Share based payments The OEP is the legal framework used to issue securities to Directors and employees. The value of securities issued under the terms of the OEP is recognised as an expense in the period(s) the benefit is earned, over the life of the instrument. The value of the instrument is calculated at the time of issue. Shares issued to employees and rights issued to Non-executive Directors are valued at face value at the time of issue and performance rights issued to senior employees are valued using the Black and Scholes pricing model which considers variables including estimated future volatility estimated based on the movements in Acrux Limited’s share price on the ASX over the prior 12 months and a risk free interest rate which is the Reserve Bank of Australia’s cash rate prevailing at the instrument’s grant date. Lead manager options were granted for capital raising services conducted by the joint lead managers and have been valued using Black and Scholes pricing model. (c) Employee benefits Long term employment benefits are valued at the present value of estimated future cash outflows calculated based on assessment of trends relating to retention of staff, future remuneration and the timing of the payment. (d) Income tax The recognition of deferred income tax benefits assumes there are no adverse changes in income tax legislation and the Group will derive sufficient future assessable income to enable the future benefit to be realised. Deferred tax assets have been recognised for deductible temporary differences where management considers it probable that future taxable income will be available to utilise those temporary differences. Acrux Annual Report 2025 35 3. FINANCIAL RISK MANAGEMENT The Group is exposed to a variety of financial risks comprising: (a) Interest rate risk (b) Currency risk (c) Credit risk (d) Liquidity risk The Board of Directors has overall responsibility for identifying and managing operational and financial risks. Sensitivity analysis and other methods are used to measure financial risks and to determine whether further mitigation strategies are required to protect the Group’s financial security. (a) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. Material changes in interest rates could impact the value of discounted cashflows used for impairment testing to support asset valuations or the assessment of new product development opportunities. Within the terms of the Pooled Development Fund Act, Acrux is prohibited from borrowing on a medium or long term basis and therefore the Group is not exposed to a material sensitivity from interest rate fluctuations from lending activities. (b) Currency risk Currency risk is the risk that the fair value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Group is exposed to currency risks due to revenues and certain expenses denominated in foreign currencies, particularly US dollars. Currency risk management strategies are regularly reviewed and future foreign currency denominated cashflows from revenue are expected to largely offset expenditure, largely protecting Acrux from the impact of short term currency fluctuations. Bank accounts denominated in US dollars and Euro are maintained to facilitate foreign currency receipts and payments and to support the management of foreign exchange risk. As at 30 June 2025, Acrux held immaterial foreign currency denominated cash reserves (2024: nil). The balance of foreign currency denominated receivables as at 30 June 2025 totals US$0.468 million (2024: US$0.090 million). The balance of foreign currency denominated payables totals US$0.054 million (2024: US$0.242 million) and EUR0.097 million (2024 EUR 0.001 million). A change in the exchange rates would therefore have immaterial impact on the consolidated net profit/(loss) and equity of the Group (2024: immaterial). The Group does not enter forward exchange contracts. (c) Credit risk Credit risk refers to the risk a counterparty defaults on its obligations, resulting in a financial loss to the Group. The maximum exposure to credit risk at balance date is the value of receivable assets as disclosed in Consolidated Statement of Financial Position and notes to the Consolidated Financial Statements. Credit risk is closely managed and procedures are in place to deal with credit worthy counterparties. Potential credit losses are regularly evaluated and a provision would be raised if there was evidence a debt was unlikely to be collectible. There is no history of delayed or defaulted balances nor are there any presently overdue balances. (d) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s objective when managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. The Group reports cash reserves of $0.863 million (2024: $2.945 million), which together with the initiatives outlined in Note 1(b) is, in the opinion of Directors, sufficient to settle existing liabilities and fund operating expenditure at planned levels for at least 15 months from the balance date based on current operating projections. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 36 3. FINANCIAL RISK MANAGEMENT(CONTINUED) Acrux has a short term funding facility with Radium Capital which enables cash outflows in relation to eligible R&D expenditure to be more closely matched with cash inflows associated with RDTI. In April 2025, an advance of $1.73 million was received under this facility, broadly representing 80% of the estimated balance receivable from the Australian Tax Office for RDTI for the 8 months to February 2025. A further advance of $0.458 million was received in July 2025 supported by eligible expenditure incurred in the period to 31 May 2025. These short term advances attract interest at 16% per annum, are secured against the RDTI balance receivable and will be repaid later in the 2025 calendar year when the FY25 RDTI is received from the Australian Tax Office. Future cash outflows for the settlement of financial liabilities 2025 $’000 2024 $’000 Lease Liabilities Not later than 1 year 370 386 Later than 1 year and not later than 5 years 746 1,171 Aggregate of lease payments contracted for at reporting date 1,116 1,557 Payables Not later than 1 year 1,621 1,074 Borrowings Not later than 1 year 1,727 1,487 4. REVENUE 2025 $’000 2024 $’000 Revenue from product agreements Profit share and royalty income 1,190 1,134 Pass through sales of API - 3,957 Total revenue from product agreements 1,190 5,091 Other revenue Interest 40 134 Grant revenue – RDTI 3,298 2,873 Total other revenue 3,338 3,007 Total revenue from continuing operations 4,528 8,098 Material Accounting Policies Revenue from contracts with customers Revenue is derived from licensing agreements with customers in the form of royalty and profit share income. In the prior year revenue included pass through revenues from the sale of active pharmaceutical ingredients. Revenue is recognised in the period in which product sales occur and when it can be reliably estimated. Other revenue Other revenue is recognised as received or where it can be reliably estimated over the period to which it relates. The RDTI rebate is accrued because it is reasonably assured the grant will be received, it can be reliably measured and the Group complies with all conditions. Acrux Annual Report 2025 37 5. LOSS FROM CONTINUING OPERATIONS 2025 $’000 2024 $’000 Loss from continuing operations before income tax has been determined after the following specific expenses: Employee benefits expense Wages and salaries 4,142 4,129 Superannuation costs 448 422 Other employee benefits expense 503 364 Total employee benefits expense 5,093 4,915 Depreciation of non-current assets Right of use asset 253 271 Plant and equipment 209 234 Total depreciation of non-current assets 462 505 Amortisation of non-current assets Leasehold improvements 5 5 Total amortisation of non-current assets 5 5 Total depreciation and amortisation of non-current assets 467 510 6. INCOME TAX 2025 $’000 2024 $’000 (a) Income tax recognised in profit and loss Current tax - - Deferred tax 8 232 Income tax (benefit)/expense attributable to profit and loss 8 232 (b) Reconciliation of income tax (benefit)/expense The prima facie tax payable on loss before income tax is reconciled to the income tax (benefit)/expense as follows: Profit / (loss) before tax from continuing operations (5,937) (5,568) Prima facie income tax payable on loss before income tax (1,484) (1,392) Add/(subtract) tax effect: Non-deductible expenses 88 97 Research and development tax incentive rebate (989) (718) Tax losses not brought to account 2,393 2,245 Parent tax losses and temporary differences not brought to account - - 1,492 1,624 Income tax (benefit)/expense attributable to loss 8 232 (c) Current tax Current tax (asset)/liability - - NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 38 2025 $’000 2024 $’000 (d) Deferred Tax Deferred tax assets is comprised: Accruals and provisions 345 250 Plant and equipment under lease 110 101 Plant and equipment and Intangible assets 1,034 1,004 Tax losses and research and development offset 84 208 1,573 1,563 Deferred tax liabilities is comprised: Plant and equipment and Intangible assets (982) (961) Prepayments (27) (23) Exchange differences - (7) (1,009) (991) Net deferred tax assets/(liabilities) 564 572 (e) Deferred tax assets not brought to account Temporary differences - 5 Tax losses 23,093 20,934 23,093 20,939 Material accounting policies Current income tax expense / (benefit) is the tax payable on current period taxable income at the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and unused tax losses. Deferred tax assets and liabilities are recognised as temporary differences at the applicable tax rate when the assets are expected to be recovered or liabilities to be settled. No deferred tax asset or liability is recognised for temporary differences arising in a transaction, other than a business combination, if the transaction did not affect either accounting profit or taxable profit or loss. Deferred tax assets are recognised for deductible temporary differences when it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The parent entity, (Acrux Limited), is a Pooled Development Fund (PDF): — PDFs are taxed at 15% on income and gains from investments in small to medium enterprises; — PDFs are taxed at 25% on other income; and — PDFs are not permitted to consolidate for tax purposes. Subsidiary companies of Acrux Limited are subject to the general company tax rate. 7. DIVIDENDS 2025 $’000 2024 $’000 (a) Dividends paid and declared Nil dividends were declared or paid during the financial year (2024: $nil) (b) Franking account Balance of franking account at financial year end. 43,835 43,835 Acrux Annual Report 2025 39 8. LOSS PER SHARE 2025 $’000 2024 $’000 Loss from continuing operations (5,945) (5,800) Loss used in calculating basic and diluted earnings per shares (5,945) (5,800) No. of shares No. of shares Weighted average number of ordinary shares used in calculating basic earnings per share 352,156,946 289,499,999 Effect of dilutive securities: - - Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share 352,156,946 289,499,999 Basic loss per share 1.69 cents 2.00 cents Diluted loss per share 1.69 cents 2.00 cents 9. CASH AND CASH EQUIVALENTS 2025 $’000 2024 $’000 Cash on hand and at bank 863 2,945 863 2,945 10. RECEIVABLES 2025 $’000 2024 $’000 Receivables from contracts with customers 719 4 Other receivables 3,072 2,885 3,791 2,889 Material accounting policies The simplified approach under AASB 9 Financial Instruments has been used to measure the allowance for credit losses for receivables and contracts with customers. Under this approach, the Group determines the allowance for credit losses based on the lifetime expected credit losses of the financial asset being the expected credit losses from default events over the expected life of the financial asset. Expected credit losses are determined based on historical credit loss experience adjusted for factors specific to the financial asset as well as current and expected economic conditions. As there is no history of collection delays, defaulted balances or client dispute, no provision for expected credit losses is considered necessary at this time. Other receivables reflect the estimated Research and Development Tax Incentive rebate recognised at fair value as there is reasonable assurance the grant will be received, it can be reliably measured and the Group complies with all conditions. 11. OTHER CURRENT ASSETS 2025 $’000 2024 $’000 Prepayments 149 147 Other current assets - - 149 147 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 40 12. PLANT AND EQUIPMENT 2025 $’000 2024 $’000 Leasehold improvements At cost 49 49 Accumulated amortisation (39) (34) Total leasehold improvements 10 15 Plant and equipment Capital Work in Progress - 46 At cost 2,718 2,667 Accumulated depreciation (2,339) (2,131) Total plant and equipment 379 582 389 597 Reconciliations of the carrying amounts of plant and equipment at the beginning and end of the current financial year: Leasehold improvements Carrying amount at the start of the year 15 18 Additions - 2 Amortisation expense (5) (5) Carrying amount at the end of the year 10 15 Plant and equipment Carrying amount at the start of the year 582 541 Additions 5 274 Transfer from Leased assets - - Depreciation expense (209) (233) Carrying amount at the end of the year 379 582 Material accounting policies Cost and valuation Each class of plant and equipment is carried at historical cost less applicable accumulated depreciation. Historical cost includes expenditure that is directly attributable to the items acquisition and installation. The carrying amount of each asset classification is reviewed for indications of impairment at reporting date. Depreciation Depreciation expense is calculated on a straight line basis over the assets’ estimated useful lives from the time the assets are held ready for use. Leasehold improvements are depreciated over the shorter of the unexpired period of the lease or the estimated useful lives of the improvements. Useful lives 2025 2024 Leasehold improvements 5 to 20 years 5 to 20 years Plant and equipment 1 to 16 years 1 to 16 years Acrux Annual Report 2025 41 13. INTANGIBLE ASSETS 2025 $’000 2024 $’000 External development expenditure capitalised 1,071 1,071 Accumulated amortisation (1,071) (1,071) Total intangible assets - - Material accounting policies Product development costs are capitalised only when all of the following criteria can be demonstrated: — Technical feasibility of completing development of the product and obtaining approval by regulatory authorities; — Ability to secure a commercial partner for the product; — Availability of adequate resources to complete development, obtain regulatory approval and secure a commercial partner; — Reliable measurement of expenditure attributable to the product during development; and — High probability of the product entering a major pharmaceutical market. 14. LEASE ASSETS AND LEASE LIABILITIES The Group leases its office, laboratory and warehouse facilities. The lease was renewed by Acrux DDS Pty Limited for an initial period of 4 years from 1 June 2018 plus three options to extend for further three year periods. The first option was exercised with the effective date of 1 June 2022. Acrux has two remaining options to extend for periods of three years and the second option to extend the term is currently being finalised. There is no option to purchase at the end of the lease period. 2025 $’000 2024 $’000 Carrying amount of lease assets, by class of underlying asset: Buildings under lease arrangements: At cost 2,827 2,919 Accumulated depreciation (1,358) (1,106) 1,469 1,813 Plant and equipment under lease arrangements: At cost - 89 Accumulated depreciation - (89) - - Total carrying amount of Leased assets 1,469 1,813 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 42 2025 $’000 2024 $’000 Reconciliation of carrying amount of Leased assets at the beginning and end of the financial year: Buildings under lease arrangements: Carrying amount at the beginning of the period 1,813 2,013 Depreciation (253) (252) Lease modification (91) 52 Carrying amount at the end of the period 1,469 1,813 Plant and equipment under lease arrangements: Carrying amount at the beginning of the period - 19 Depreciation - (19) Carrying amount at the end of the period - - Lease Liabilities Lease liabilities (current) 225 293 Lease liabilities (non-current) 1,683 1,924 Total carrying amount of lease liabilities 1,908 2,217 Lease expenses and cashflows Interest expense on lease liabilities 163 178 Depreciation expense on lease assets 253 271 Total cash outflow in relation to leases 352 384 Future commitments Future minimum lease payments to be made: — Not later than 1 year 370 379 — Later than 1 year and not later than 5 years 1,618 1,562 Aggregate of lease payments contracted for at reporting date 1,988 1,941 Material accounting policies A Leased asset is recognised at lease commencement, representing the right to use the underlying asset and a Lease liability represents the obligation to make future lease payments. Leased assets are initially recognised at cost, comprising the amount of the initial measurement of the lease liability, any lease payments made at or before lease commencement, less any lease incentives received, initial direct costs incurred by the Group and an estimate of costs required to dismantle and remove the underlying asset or restore the asset to the condition required by the terms and conditions of the lease. Leased assets are depreciated over the shorter of the lease term and the estimated useful life of the underlying asset, consistent with the availability of the economic benefits of the underlying asset. Subsequent to initial recognition, Leased assets are measured at cost (adjusted for any remeasurement of the associated lease liability) less accumulated depreciation. Lease liabilities are initially recognised at the present value of the future lease payments, discounted at the interest rate implicit in the lease. Subsequent to initial recognition, Lease liabilities are measured at the present value of the remaining lease payments which are unpaid at the reporting date. Lease liabilities are remeasured to reflect changes to lease terms, changes to lease payments and any lease modifications not accounted for as separate leases. Interest expense on lease liabilities is recognised in profit or loss, presented as a component of finance costs. Variable lease payments not included in the measurement of lease liabilities are recognised as an expense when incurred. Acrux Annual Report 2025 43 15. PAYABLES 2025 $’000 2024 $’000 Current Trade payables 463 427 Sundry creditors and accruals 1,158 647 1,621 1,074 16. PROVISIONS 2025 $’000 2024 $’000 Current Employee entitlements 907 868 Non-current Employee entitlements 39 41 Aggregate employee entitlements 946 909 Material accounting policies Provisions are recognised where there is a legal or constructive obligation with a probable future outflow of economic benefits which can be reliably measured. Provision is made for employee entitlements, including annual and long service leave. Liabilities expected to be settled within twelve months of the reporting date are measured based on remuneration rates expected to be paid when the liability is settled. Other employee benefit liabilities are measured at the present value of the estimated future cash outflows. 17. BORROWINGS 2025 $’000 2024 $’000 Current Loan - RDTI advance 1,727 1,487 Material accounting policies Acrux has a short term funding facility with Radium Capital providing access to funding of up to 80% of the estimated RDTI refund. This short term loan attracts interest at 16% per annum , is secured against the RDTI receivable balance and will be repaid when the RDTI rebate is received from the Australian Tax Office. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 44 18. CONTRIBUTED EQUITY 2025 2024 No. of shares 000’s $ No. of shares 000’s $ (a) Issued and paid up capital Ordinary shares fully paid 407,763,526 118,704 290,716,856 115,012 (b) Movements in ordinary shares on issue Beginning of the financial year 290,716,856 115,012 288,175,456 114,884 Issued during the year: Conversion of rights under the OEP 2,308,490 91 2,140,116 102 Shares issued under OEP 780,275 25 401,284 26 SPP and Placement shares issued 113,957,905 3,090 - - Ordinary shares issued during the year 117,046,670 3,206 2,541,400 128 Ordinary shares on issue at reporting date 407,763,526 118,218 290,716,856 115,012 (c) Rights During the financial year 5,711,198 rights were issued under the OEP (2024: 6,296,243). Rights hold no participation rights, but shares issued on exercise of rights rank equally with existing ordinary shares. At 30 June 2025, 17,475,647 rights were held by employees, including KMP (2024: 12,754,656). The closing market value of an ordinary Acrux Limited share on the ASX, ticker ACR, at 30 June 2025 was 1.6 cents (2024: 7.0 cents). 2025 2024 (i) Movement in the number of rights held under Omnibus Equity Plan are as follows: Opening balance 14,044,903 9,957,371 Granted during the year 5,711,198 6,296,243 Exercised during the year (2,308,490) (2,140,116) Lapsed during the year (476,888) (68,595) Closing balance 16,970,723 14,044,903 2025 $’000 2024 $’000 (ii) Details of rights exercised under the OEP during the financial year: Rights exercised into shares, measured at Fair Value as at the issue date of the rights 91 129 (iii) Details of the number of lapsed and cancelled rights 2025 2024 Key management personnel 156,595 - Other employees 320,293 68,595 Total rights lapsed and cancelled during the year 476,888 68,595 Acrux Annual Report 2025 45 19. LISTED OPTIONS During the reporting period the Company issued 160,472,177 listed options comprised as follows: — 34,757,918 options issued to SPP participants on the basis of one Free Attaching Option offered for every Share subscribed for; — 75,714,259 options issued to Placement participants on the basis of one Free Attaching Option offered for every Share subscribed for; and — 50,000,000 options to the Lead Managers as partial consideration for the provision of lead managerial and bookrunner services in connection with the capital raising. The Options have an exercise price of 5.25 cents, expire on 19 February 2027 and are listed on the ASX under the code ACRO. Each New Option entitles the holder to subscribe for 1 new share upon exercise of the Option on or prior to the expiry date. The closing market value of an Option on the ASX, ticker ACRO, at 30 June 2025 was 0.1 cents (2024: not applicable). 2025 2024 Movement in the number of Listed Options is follows: Opening balance - - Granted during the year 160,472,177 - Exercised during the year - - Closing balance 160,472,177 - 20. SHARE BASED PAYMENTS (a) Expenses recognised from share-based payment transactions under the OEP 2025 $’000 2024 $’000 The expense recognised within securities based payments expense in the statement of comprehensive income was as follows: Rights issued 100 253 Rights exercised 91 102 Issue of tax exempt ordinary shares to eligible employees 25 26 Total expenses recognised from securities based payment transactions 216 381 Share-based payments The fair value of rights is recognised as an employee benefit expense in the Consolidated Statement of Profit or Loss and Other Comprehensive Income in the period(s) over which the benefit to the employee or Director is accrued. The Black Scholes pricing model is used to determine the fair value of Performance Rights during the period. Employees who are not KMP, may be issued with tax exempt ordinary shares to a maximum value of $1,000 per employee at the discretion of the Directors. Tax exempt ordinary shares are escrowed for 3 years from the date of issue. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 46 20. SHARE BASED PAYMENTS (CONTINUED) (b) Omnibus Equity Plan Details of movements in rights during the reporting period are provided below: Grant date Expiry date Balance at beginning of the year Granted Exercised Cancelled Balance at the end of the year Exercisable as at 30 June 2025 Non-executive Directors – rights issued as a component of remuneration 5 December 2023 5 December 2030 4,179,656 - 1,860,156 - 2,319,500 2,319,500 1 December 2024 1 December 2031 - 4,101,998 448,334 - 3,653,664 1,602,665 Performance Rights – issued to CEO and other employees 25 January 2018 25 January 2025 7,000 - - - 7,000 7,000 4 February 2019 4 February 2026 10,000 - - 5,000 5,000 5,000 4 February 2021 4 February 2028 415,298 - - 415,298 - - 26 November 2021 26 November 2028 6,000,000 - - - 6,000,000 1,500,000 10 February 2022 10 February 2029 928,949 - - 9,090- 919,859 - 13 February 2023 13 February 2030 1,072,000 - - 13,000 1,059,000 - 14 February 2024 14 February 2031 1,432,000 - - 14,500 1,417,000 - 18 February 2025 18 February 2032 - 1,609,200 - 20,000 1,589,200 - 14,044,903 5,711,198 2,308,490 476,888 16,970,723 5,434,165 The OEP was approved by shareholders on 29 November 2023. On 26 November 2021, 6,000,000 performance rights were issued to the CEO and Managing Director, Michael Kotsanis. Subject to achievement of Total Shareholder Return of at least 10% per annum and roll over provisions these rights vest in 4 equal annual tranches. As at balance date 1,500,000 of these rights have vested and 4,500,000 have not vested and were cancelled subsequent to year end. On 12 December 2024, following resolution at the 2024 AGM, 4,101,998 rights were issued to Non-executive Directors representing approximately half of their remuneration for the next 12 months. As these rights are received in lieu of salary they vest quarterly subject to continuous service. Other employees, including senior management, have been offered performance rights which vest subject to achievement of performance hurdles. On 18 February 2026, 1,609,200 performance rights were issued to employees including senior management. These rights may vest 12 months after issuance, subject to achievement of Total Shareholder Return of at least 10% per annum and include rollover provisions. Ordinary shares issued following the exercise of rights rank equally with existing ordinary shares. Acrux Annual Report 2025 47 20. SHARE BASED PAYMENTS (CONTINUED) Overview of Rights issued during the period: Date of Issue 12 December 2024 18 February 2025 Type of Rights Non executive Director’s Remuneration Employee Performance Rights Number of Rights issued 4,101,998 1,609,200 Fair value Measure Direct Value Black Scholes Share price at date of issue 3.20 cents 3.20 cents Exercise price n/a 3.52-4.69 cents Volatility n/a 69.93% Dividend yield expectations n/a Nil Term 7 years 7 years Risk free interest rate n/a 4.35% (c) CEO Options Subject to shareholder approval at the next AGM, John Warmbrunn shall be granted 8 million CEO options with the first tranche of1.6 million to be issued as soon as practical and 4 subsequent tranches to be issued on each of the 1st, 2nd, 3rd and 4th anniversary of employment. The issue price of the Options is nil and the exercise price is the 10 day VWAP at time of grant of the relevant Tranche. Each tranche shall vest 12 months after grant, subject to continued employment. These Options will not be listed, the value will be calculated using Black Scholes and issued after AGM approval. (d) Lead Manager Options 50,000,000 Lead Manager Options were issued as partial consideration for the provision of lead managerial and bookrunner services in connection with the capital raising and recorded against the cost of capital raising in Contributed Equity. Overview of Lead Manager Options issued during the period: Date of Issue 19 February 2025 Type of Rights Lead Manager Options Number of Options issued 50,000,000 Fair value Measure Black Scholes Share price at date of issue 3.10 cents Exercise price 5.25 cents Volatility 73.25% Dividend yield expectations Nil Term 2 years Risk free interest rate 4.35% NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 48 21. RESERVES AND ACCUMULATED LOSSES 2025 $’000 2024 $’000 Share based payment reserve 1,647 1,161 Profit reserve 7,390 7,390 Total Reserves 9,037 8,551 Accumulated losses (126,232) (120,287) Share based payment reserve Nature and purpose of Share based payment reserve This reserve is used to record the value of equity benefit provided to employees and Directors as part of their remuneration and to the Joint Lead Managers for services rendered in connection with capital raising. Movement in Share based payment reserve Balance at the beginning of year 1,161 909 Employee share scheme 100 252 Capital raising 386 - Balance at end of year 1,647 1,161 50,000,000 Options were issued to the Joint Lead Managers as part consideration for the provision of lead managerial and bookrunner services in connection with the capital raising. These Options have been valued using Black and Scholes pricing model. Profit Reserve Nature and purpose of Profit reserve This reserve is used to record the profits which have been generated by the Group. Accumulated losses Movement in Accumulated losses 2025 $’000 2024 $’000 Balance at the beginning of year (120,287) (114,487) Net loss attributable to members of Acrux Limited (5,945) (5,800) Balance at end of year (126,232) (120,287) Acrux Annual Report 2025 49 22. CASHFLOW INFORMATION 2025 $’000 2024 $’000 (a) Reconciliation of the cashflow from operations with loss after income tax: Loss from ordinary activities after income tax (5,945) (5,800) Non-Cash Items Depreciation and amortisation 467 510 Share based payments expense 216 381 Changes in assets and liabilities (Increase)/decrease in trade and other receivables (903) 417 (Increase)/decrease in other current assets (2) 206 Increase/(decrease) in payables 411 (294) Increase/(decrease) in employee entitlements 37 45 Increase/(decrease in other liabilities 240 7 (Increase)/decrease in deferred tax assets 8 232 (209) 606 Net cash (outflows)/inflows from operating activities (5,471) (4,303) (b) Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cashflows and the Statement of Financial Position is as follows: Cash at bank 863 2,945 At call and term deposits - - Closing cash balance 863 2,945 (c) Credit stand-by arrangement and loan facilities The Group has credit card facilities with the ANZ Bank totalling $120,000 (2024: $120,000). At 30 June 2025 the Group had unused capacity on these facilities of $118,687 (2024: $116,763). 23. KEY MANAGEMENT PERSONNEL COMPENSATION 2025 $ 2024 $ KMP compensation is detailed in the Remuneration Report in the Director’s Report. Aggregate components is reported below: Short-term employment benefits 1,425,682 1,434,529 Post-employment benefits 189,209 187,357 Equity 156,622 342,379 Total KMP compensation 1,771,513 1,964,265 24. LOANS TO KEY MANAGEMENT PERSONNEL No loans were made to KMP during the financial year. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 50 25. RELATED PARTY DISCLOSURES Wholly owned Group transactions Loans Loans were made between Acrux Limited and its subsidiaries under normal terms and conditions. The aggregate amounts receivable from controlled entities by the parent entity at the end of the reporting period was $31.260 million (2024: $28.733 million). Other transactions with Key Management Personnel and their personally related entities Transactions with Directors and KMP concerning their remuneration and securities issued in accordance with the OEP are disclosed the Directors’ Report and in Notes 18, 20 and 23. There were no transactions or contracts between the Company, Directors and KMP in 2025 not in relation to remuneration (2024: nil). 26. AUDITOR REMUNERATION 2025 $’000 2024 $’000 Amounts paid and payable to Pitcher Partners for: An audit or review of the financial report of the entity and any other entity in the Group 112 107 Taxation compliance and consulting 41 30 153 137 27. SEGMENT REPORTING The Group operates as a single operating segment. Internal management reporting systems present financial information as a single segment. The segment derives revenue from developing and commercialising pharmaceutical products which administer drugs topically. Geographical segment information 2025 $’000 2024 $’000 Australia 3,338 3,006 Europe and other countries - 622 United States 1,190 4,470 4,528 8,098 Revenue by product group and services provided Revenue from product agreements 1,190 5,089 Research and development tax incentive rebate 3,298 2,875 Other, including other government support and interest received 40 134 4,528 8.098 Acrux Annual Report 2025 51 28. CONTROLLED ENTITIES COUNTRY OF INCORPORATION 2025 2024 Parent Entity Acrux Limited Australia Subsidiaries of Acrux Limited Acrux DDS Pty Ltd Australia 100% 100% Acrux Pharma Pty Ltd Australia 100% 100% Acrux Commercial Pty Ltd Australia 100% 100% Subsidiary of Acrux Commercial Pty Ltd Fempharm Pty Ltd Australia 100% 100% 29. PARENT ENTITY DETAILS 2025 $’000 2024 $’000 (a) Summarised statement of financial position of the parent entity, Acrux Limited Assets Current assets 43 40 Non-current assets(1) 14,491 28,673 Total assets 14,534 28,713 Liabilities Current liabilities 7,675 487 Non-current liabilities - - Total liabilities 7,675 487 Net assets 6,859 28,226 Equity Share capital 118,218 115,012 Profit reserve 7,390 7,390 Accumulated losses (120,396) (95,337) Share based payments reserve 1,647 1,161 Total equity 6,859 28,226 (b) Summarised statement of comprehensive income Loss for the financial year (25,059) (1,365) Other comprehensive income for the financial year - - Total comprehensive income for the financial year (25,059) (1,365) (1) Intercompany loans and Investment in subsidiaries are initially recognised at cost and subsequently carried at the lower of cost or recoverable amount. If the carrying value exceeds the recoverable amount, an impairment loss is recognised in the profit or loss of the parent. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 52 30. CONTINGENCIES There were no contingencies at 30 June 2025 (2024: nil). 31. SUBSEQUENT EVENTS In July Acrux executed an agreement with Servacure Trading W.L.L. (‘Servacure’) for Dapsone 5%, Gel in Saudi Arabia. Dapsone 5%, Gel is indicated for the treatment of acne vulgaris and Acrux’s product is approved by the FDA and sold through a licensee in the United States. Servacure is responsible for obtaining regulatory approval and manufacturing for the Territory and will pay Acrux a fixed fee per unit for the aggregate unit volume of product shipped to customers. The contract is for 10 years with options for renewal. No other matter or circumstance has arisen since 30 June 2025 that has significantly affected the Group’s operations, results or state of affairs, or may do so in future years. 32. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS In the opinion of the Directors, there have been no significant changes in the state of affairs of the Group during the financial year not otherwise disclosed in this report or the financial statements. Acrux Annual Report 2025 53 Acrux Ltd is required by Australian Accounting Standards to prepare consolidated financial statements in relation to the Company and its controlled entities (the consolidated entity). In accordance with subsection 295(3A) of the Corporations Act 2001, this consolidated entity disclosure statement provides information about each entity that was part of the consolidated entity at the end of the financial year. Type of entity Place incorporated Share capital held (%) Australian tax resident Parent Company Acrux Ltd Body Corporate Australia n/a Yes n/a Acrux Commercial Pty Ltd Body Corporate Australia 100% Yes Acrux Ltd Fempharm Pty Ltd Body Corporate Australia 100% Yes Acrux Commercial Pty Ltd Acrux DDS Pty Ltd Body Corporate Australia 100% Yes Acrux Ltd Acrux Commercial Pty Ltd Body Corporate Australia 100% Yes Acrux Ltd At the end of the financial year, no entity within the consolidated entity was a trustee of a trust within the consolidated entity, a partner in a partnership within the consolidated entity or a participant in a joint venture within the consolidated entity. 54 For the year ended 30 June 2025 CONSOLIDATED ENTITY DISCLOSURE STATEMENT 2025 The Directors of the company declare that 1. In the Directors’ opinion, the financial statements and notes thereto, as set out on pages 28 to 53, are in accordance with the Corporations Act 2001 including: (a) complying with Australian Accounting Standards and the Corporations Regulations 2001, and other mandatory professional reporting requirements: (b) as stated in Note 1(a) the consolidated financial statements also comply with International Financial Reporting Standards (c) giving a true and fair view of the financial position of the Group as at 30 June 2025 and of its performance for the year ended on that date; and (d) the attached consolidated entity disclosure statement is true and correct. 2. In the Directors’ opinion there are reasonable grounds to believe that Acrux Limited will be able to pay its debts as and when they become due and payable. This declaration has been made after receiving the declarations required to be made by the Chief Executive Officer and Chief Financial Officer to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2025. Signed in accordance with a resolution of the Directors made pursuant to S295(5) of the Corporations Act 2001. Ross Dobinson Don Brumley Non-executive Chairman Non-executive Director Melbourne Melbourne 29 August 2025 29 August 2025 Acrux Annual Report 2025 55 DIRECTORS’ DECLARATION ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACRUX LIMITED Pitcher Partners. An independent Victorian Partnership ABN 27 975 255 196. Level 13, 664 Collins Street, Docklands, VIC 3008 Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities Adelaide Brisbane Melbourne Newcastle Sydney Perth pitcher.com.au Report on the Audit of the Financial Report Opinion We have audited the financial report of Acrux Limited (“the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2025, the consolidated statement of profit and loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 1(b) Going Concern in the financial report which discloses that the Group incurred a net loss for the year ended 30 June 2025 of $5.945 million, and has current assets of $4.803 million. As stated in Note 1(b), these conditions, along with other matters as set forth in Note 1(b), indicate that a material uncertainty exists which may cast significant doubt on the Group’s ability to continue as a going concern and therefore, the Group may be unable to realise its assets and discharge its liabilities at the amounts stated in the financial statements in the normal course of business. Our opinion is not modified in respect of this matter. 56 INDEPENDENT AUDITOR’S REPORT ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACRUX LIMITED Pitcher Partners. An independent Victorian Partnership ABN 27 975 255 196. Level 13, 664 Collins Street, Docklands, VIC 3008 Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities Adelaide Brisbane Melbourne Newcastle Sydney Perth pitcher.com.au Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed the key audit matter Recoverability of Deferred Tax Assets Note 2(d) on page 35 and note 6 on page 39. The Group has $564k ($572k as at 30 June 2024) of deferred tax assets recognised as at 30 June 2025 relating to timing differences and Research and Development offset incurred by the subsidiary Acrux DDS Pty Ltd. The ability to recognise the deferred tax assets is dependent upon the probable generation of sufficient future taxable profit in order for the benefits of the deferred tax assets to be realised, in accordance with AASB 112 Income Taxes. These benefits are realised by reducing tax payable on future taxable profits. We view the deferred tax assets as a Key Audit Matter due to the management judgement required in forecasting future taxable profit. Management’s assumptions include but are not restricted to: • Ongoing profitable contract research and development activities; • Successful commercialisation of generics; and • The number of competitors in the market, market share and profit sharing rates with commercial partners. Our procedures included amongst others: • Reviewing and assessing management’s key assumptions relating to the forecasts of future taxable profit and evaluating the reasonableness of these assumptions; • Understanding and evaluating the design and implementation of management’s processes and controls around the recognition of deferred tax assets; and • Assessing the appropriateness of the disclosures included in Note 6 in respect of current and deferred tax balances. Acrux Annual Report 2025 57 ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACRUX LIMITED Pitcher Partners. An independent Victorian Partnership ABN 27 975 255 196. Level 13, 664 Collins Street, Docklands, VIC 3008 Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities Adelaide Brisbane Melbourne Newcastle Sydney Perth pitcher.com.au Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2025 but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of: a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001; and c) for such internal control as the directors determine is necessary to enable the preparation of: (i) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and (ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group 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 Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is 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 the Australian Auditing Standards 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 this financial report. INDEPENDENT AUDITOR’S REPORT (continued) 58 ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACRUX LIMITED Pitcher Partners. An independent Victorian Partnership ABN 27 975 255 196. Level 13, 664 Collins Street, Docklands, VIC 3008 Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities Adelaide Brisbane Melbourne Newcastle Sydney Perth pitcher.com.au As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Acrux Annual Report 2025 59 Pitcher Partners. An independent Victorian Partnership ABN 27 975 255 196. Level 13, 664 Collins Street, Docklands, VIC 3008 Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities Adelaide Brisbane Melbourne Newcastle Sydney Perth pitcher.com.au ACRUX LIMITED AND CONTROLLED ENTITIES ABN 72 082 001 152 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACRUX LIMITED Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 19 to 25 of the Directors’ Report for the year ended 30 June 2025. In our opinion, the Remuneration Report of Acrux Limited and its controlled entities, for the year ended 30 June 2025, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. PITCHER PARTNERS Melbourne J J MITCHELHILL Partner 29 August 2025 INDEPENDENT AUDITOR’S REPORT (continued) 60 Additional information required by ASX Listing Rules and not disclosed elsewhere in this report, as at 13 August 2025. Shareholders The Company has 409,263,526 ordinary fully paid shares on issue, held by 4,296 shareholders, 160,472,177 listed options held by 181 people and 10,970,722 rights held by 19 people. The Company has no other equity securities currently on issue. Holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholders’ meetings. No voting rights or dividend entitlements attach to options or rights. All fully paid ordinary shares and options are quoted on the ASX. Other equity securities of the Company are not quoted on the ASX. Distribution Schedule – Ordinary Shares (ASX:ACR) The following is a distribution schedule of the number of holders of fully paid ordinary shares in the Company within the bands of holding specified by the ASX Listing Rules: Category Number of securities % Total No. of holders 100,001 and Over 357,818,013 87.43 534 10,001 to 100,000 43,340,910 10.59 1,169 5,001 to 10,000 4,289,090 1.05 528 1,001 to 5,000 3,373,946 0.82 1,172 1 to 1,000 441,567 0.11 893 Total 409,263,526 100.00 4,296 3,299 shareholders hold less than a marketable parcel of fully paid ordinary shares, based on the market price at the date set out above. Substantial Holders Under the ASX Listing Rules “Substantial Holder” means, in general terms, a person who either alone or with their associates, has an interest in 5% or more of the voting shares of the Company. The following parties have declared a relevant interest in the number of ordinary shares under Part 6C.1 of the Corporations Act 2001. Number of fully paid ordinary shares Phillip Asset Management Ltd as trustee for BioScience Managers Translation Fund I 37,561,419 Acrux Annual Report 2025 61 SHAREHOLDER INFORMATION Largest holders of Fully Paid Ordinary Shares Number of Fully Paid Ordinary Shares % Issued Capital 1 PHILLIP ASSET MANAGEMENT LIMITED 37,561,419 9.18 2 HISHENK PTY LTD 12,000,000 2.93 3 THE POOLE FAMILY SUPERANNUATION FUND PTY LTD 9,900,000 2.42 4 DR THOMAS VUI CHUNG CHAI 7,809,128 1.91 5 CITICORP NOMINEES PTY LIMITED 7,307,347 1.79 6 MR DONALD CHARLES BRUMLEY 6,927,366 1.69 7 MR CHRISTOPHER MURRAY ABBOTT 6,000,000 1.47 8 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 5,995,634 1.46 9 MR ROSS DOBINSON 5,820,673 1.42 10 NETWEALTH INVESTMENTS LIMITED 5,537,298 1.35 11 MR BIKASH KAJI BANIYA 5,292,430 1.29 12 ES WATTS PROJECTS PTY LTD 5,000,000 1.22 13 WILLOUGHBY CAPITAL PTY LTD 4,500,000 1.10 14 PACIFIC CUSTODIANS PTY LIMITED 4,140,083 1.01 15 TSO PTY LTD 4,054,305 0.99 16 MR ZIRONG PU 4,000,000 0.98 17 MR MICHAEL JOHN KOTSANIS 3,868,225 0.95 18 ASHWOOD RIVER PTY LTD 3,800,000 0.93 19 BNP PARIBAS NOMINEES PTY LTD 3,478,748 0.85 20 STRUCTURE INVESTMENTS PTY LTD 3,244,323 0.79 Total 146,236,979 35.73% Distribution Schedule - Listed Options (ASX:ACRO) Range Securities % No. of holders 100,001 and Over 157,119,612 97.91 123 10,001 to 100,000 3,352,565 2.09 58 5,001 to 10,000 0 0.00 0 1,001 to 5,000 0 0.00 0 1 to 1,000 0 0.00 0 Total 160,472,177 100.00 181 124 shareholders hold less than a marketable parcel of listed options, based on the market price at the date set out above. SHAREHOLDER INFORMATION (continued) 62 Largest holders of Options Number of Options % Issued Capital 1 THE POOLE FAMILY SUPERANNUATION FUND PTY LTD 19,200,000 11.96 2 MR GABRIEL GOVINDA 15,000,000 9.35 3 EVOLUTION CAPITAL ADVISORS PTY LTD 11,733,945 7.31 4 BNP PARIBAS NOMS PTY LTD 9,415,336 5.87 5 MISHTALEM PTY LTD 7,266,055 4.53 6 PHILLIP ASSET MANAGEMENT LIMITED 5,714,285 3.56 7 DR THOMAS VUI CHUNG CHAI 5,714,284 3.56 8 MR PETER JOHN WIGGINS 5,555,555 3.46 9 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 5,013,235 3.12 10 MUNGALA INVESTMENTS PTY LIMITED 5,000,000 3.12 11 RIYA INVESTMENTS PTY LTD 3,500,000 2.18 12 STRUCTURE INVESTMENTS PTY LTD 2,857,143 1.78 13 MRS LISA MARIE WIGGINS 2,842,858 1.77 14 NETWEALTH INVESTMENTS LIMITED 2,714,284 1.69 15 ON-RAMP PTY LTD 2,566,667 1.60 16 GOFFACAN PTY LTD 2,428,395 1.51 17 MR DONALD CHARLES BRUMLEY 2,285,714 1.42 18 MR THOMAS PATRICK HARDING & MRS BARBARA GENEVIEVE HARDING 1,714,284 1.07 19 MR DANIEL TREVOR CORLETTE 1,571,428 0.98 20 FINCLEAR SERVICES PTY LTD 1,539,665 0.96 Total 113,633,133 70.81 Acrux Annual Report 2025 63 Term Abbreviation Description Abbreviated New Drug Application ANDA An application for a generic drug approval for an already approved drug, evaluated by the FDA’s Centre for Drug Evaluation and Research, Office of Generic Drugs. Applicants must demonstrate bioequivalence to the approved drug and once approved, an applicant may manufacture and market the generic drug product in the US as a safe, effective, low cost alternative. Acyclovir 5%, Cream Indicated in the United States for the topical treatment of cold sores. Active Pharmaceutical Ingredient API The API is the active substance in medicines which is responsible for the therapeutic effect. Addressable market Total market sales value and volume of a pharmaceutical product in a specific dosage form as reported by IQVIA. Bioequivalence/ Bioavailability Bioequivalence studies compare the bioavailability of the proposed drug product with the Reference Listed Drug (‘RLD’). Bioequivalence is the absence of a significant difference in the rate and extent the active ingredient becomes available at the site of drug action when administered at the same dose under similar conditions. Bioavailability is the rate and extent the active ingredient is absorbed and becomes available at the site of action Contract Development Organisation CDO A CDO serves other companies in the pharmaceutical industry on a contract basis to provide development services. Contract Manufacturing Organisation CMO or CDMO A CMO serves other companies in the pharmaceutical industry on a contract basis to provide services from drug development through drug manufacturing. Contract Research Organisation CRO A CRO provides research services to other companies in the pharmaceutical industry on a contract basis. CROs may be involved in all aspects of clinical development, from initial drug discovery through pre-clinical and clinical trials and regulatory approval. Dapsone Gel Indicated in the United States for the topical treatment of acne vulgaris, registered by Acrux in both the 5% and 7.5% strengths. Estradiol Estradiol is a form of estrogen a hormone produced by the ovaries and is used to treat menopause symptoms. Evamist® Brand name for Acrux’s unique Estradiol Spray product in the United States. The Evamist® trademark is owned by Lumara Health and sublicensed to Padagis. Extraordinary General Meeting EGM Extraordinary General Meeting of shareholders. Food and Drug Administration FDA The FDA is responsible for the promotion and protection of health in the US and to ensure medicines are safe and effective. It regulates and supervises prescription and over-the-counter pharmaceuticals. Generic medicine A generic medicine provides the same quality, safety and efficacy as the original brand name product and undergoes strict scrutiny before it is approved by national regulatory authorities. Good Manufacturing Practice GMP or cGMP GMP (also ‘cGMP’ or ‘current Good Manufacturing Practice’) is the aspect of quality assurance that ensures medicinal products are consistently produced and controlled to the quality standards appropriate to their intended use and as required by the product specification. In-vitro Permeation Testing IVPT IVPT studies across biological membranes for formulations that are applied to the skin are vital to guide product development and establish product bioequivalence. IVPT is a critical tool for understanding bioavailability and drug delivery into the various layers of skin. 64 GLOSSARY Term Abbreviation Description In-vitro Release Testing IVRT Measurement of drug release from dosage forms applied topically for the purpose of bioequivalence testing. IVRT allows for targeted and systematic drug development and guides the establishment of bioequivalence. IVRT involves subjecting the drug formulation to conditions to induce drug release across a membrane and quantitating the amount released under those conditions. IQVIA IQVIA Inc, is a US based multinational company which provides, on a subscription basis, pharmaceutical industry market data. Nitroglycerin 0.4%, Ointment Indicated in the United States for moderate to severe pain associated with chronic anal fissure. Omnibus Equity Plan OEP Approved at 2023 AGM to govern the issue of Acrux securities to employees and Directors. Padagis Padagis US LLC is a market leading pharmaceutical manufacturer in the US offering high quality generic and specialised pharmaceutical and OTC products. Padagis’ line of topicals includes prescription creams, ointments, suspensions, gels, foams, sprays, patches, nasal, and suppositories. Pooled Development Fund PDF The Pooled Development Fund Act 1992 was established by the Australian Federal Government to increase the supply of capital to small and medium-sized enterprises to support their growth and development, creating industry and jobs for Australia. A concessional tax regime applies to registered PDF companies. Prilocaine 2.5% and Lidocaine 2.5%, Cream Indicated in the United States as a topical anaesthetic for use on normal intact skin for local analgesia or genital mucous membranes for superficial minor surgery and pre treatment for infiltration anaesthesia. Product-Specific Guidance PSG To facilitate generic drug product availability and identify the most appropriate methods for developing drugs and generating evidence to support ANDA approval, the FDA publishes product specific guidance describing their current thinking and expectations on the development of generic drug products. Reference Listed Drug RLD FDA approved drug product with established safety and effectiveness serving as the reference for generic drug approval. A generic product must be demonstrated to be the same as the RLD in terms of active ingredients, conditions of use, route of administration, dosage form, strength and labelling. Research and Development Tax Incentive RDTI The Research and Development Tax Incentive Rebate is a tax offset for companies conducting eligible research and development (R&D) activities in Australia. Servacure Servacure Trading W.L.L. has been licensed by Acrux to manufacture and sell Dapsone 5%, Gel in Saudi Arabia. Therapeutic Goods Administration TGA The authority responsible for the regulation of therapeutic goods in Australia, including medicines and medical devices. Total Shareholder Returns TSR Total Shareholder Returns, measured by the annual share price increase. Transdermal Transdermal is a route of administration wherein active pharmaceutical ingredients are delivered across the skin for systemic distribution. TruPharma TruPharma, LLC is a front-end pharma sales and marketing company focused on commercialising branded and generic prescription drugs for the US Market. TruPharma has a diverse portfolio of products across multiple channels and operated by a team of experienced executives focused on getting complex products approved and marketed. Topical Topical is a route of administration wherein active pharmaceutical ingredients are applied to or affect a localised area of the body. Acrux Annual Report 2025 65 Pooled Development Fund The information set out below is of a general nature only and may vary from person to person dependent on their circumstances. Any shareholder or prospective shareholder should obtain their own taxation advice rather than relying on this general summary. Acrux Limited is a Pooled Development Fund (PDF), registered under the Pooled Development Fund Act 1992(the PDF Act) since 7 July 1999. A PDF is a company that is resident in Australia which is registered and regulated by the PDF Registration Board in accordance with the PDF Act. Shareholders of PDFs are entitled to concessionary tax treatment in Australia. Typically, no capital gains tax is payable in relation to the sale of PDF shares and dividends are exempt from income tax. Thus, profits derived by shareholders are typically tax free and this concessionary tax treatment should be available to investors that hold their interests directly and indirectly through non-corporate trusts and partnerships. Gains realised by an investor from disposal of shares in the Group will not be included in the investor’s assessable income in Australia because: — Where the gain on sale would be ordinary income of the investor, the gain will be treated as exempt income; and — Where the gain on sale would be a capital gain, it is specifically excluded from the capital gains tax provisions of the Income Tax Assessment Act 1997. Equally, an investor will not be entitled to any deduction or capital loss on the sale of the Company’s shares. Australian resident shareholders can elect to treat dividends as exempt from tax. Unfranked PDF distributions and the unfranked part of a franked distribution are exempt from tax and a franked portion of a PDF distribution is also exempt from income tax unless the shareholder elects to be taxed on it. Glossary (continued) 66 COMPANY INFORMATION Directors Ross Dobinson – Non-executive Director and Chairman Geoff Brooke – Non-executive Director Don Brumley – Non-executive Director Tim Oldham – Non-executive Director John Warmbrunn – CEO and Managing Director Company Secretary Joanna Johnson Registered Office 103-113 Stanley Street West Melbourne Victoria 3003 Principal Business Address 103-113 Stanley Street West Melbourne Victoria 3003 Telephone: (03) 8379 0100 (within Australia) International telephone: +61 3 8379 0100 E: info@acrux.com.au www.acrux.com.au Australian Business Number 72 082 001 152 Auditor Pitcher Partners Level 13, 664 Collins Street Docklands, Victoria 3008 Share Registry MUFG Pension and Market Services Liberty Place Level 41, 161 Castlereagh St Sydney NSW 200008 Australia Toll-free: 1300 554 474 (Australia only) International: +61 1300 554 474 E: registrars@mpms.mufg.com www.mpms.mufg.com Australian Securities Exchange Listing Australian Securities Exchange Limited (Home Exchange: Melbourne, Victoria) ASX Code: ACR For further information about Acrux and its operations, refer to Company Announcements of the ASX and the Company website: Acrux.com.au Acrux Annual Report 2025 67 CORPORATE DIRECTORY Acrux’s culture, the newly launched products and the opportunities ahead, all stem from the patient investors behind Acrux over many years. Your continued support and belief matters, thank you. Indie, Analytical Development Scientist WWW.ACRUX.COM.AU

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