QUARTER 4, JULY – DECEMBER 2025

• Net revenue decreased by 71% to SEK 285k (971k).
• EBITDA declined by 63% to SEK -5 196k (-3 180k).
• EBIT/Operating result improved by 9% to SEK –8 429 (–9 241k).

YEAR-END PERIOD, JANUARY – DECEMBER 2025

• Net revenue decreased by 44% to SEK 1 615k (2 890k).
• EBITDA improved by 12% to SEK -15 539k (-17 593k).
• EBIT/Operating result improved by 15% to SEK –29 562k (–34 714k).

KEY EVENTS DURING THE QUARTER

• Simris Biologics GmbH announced important progress in its ongoing preclinical study with Nuvisan, a leading European contract research and development organization.
• Simris Group announces leadership transition - Daniel Kubitza appointed interim CEO.
• Simris Group has entered into a bridge loan agreement with Osiris International Trustees Limited as Trustee of Mountain High Trust. The Bridge Loan amounts to a total of EUR 200,000 and the monthly interest rate is 1,0 percent.
• The Board resolved on a directed issue of 330 000 000 units (1 share + 2 warrants series 2025/2027) at SEK 0.05 per unit, raising approx. EUR 1.5 million before costs, corresponding to 330,000,000 new B shares and 660,000,000 warrants (each warrant exercisable at SEK 0.05 until 31 December 2027).
• Conversion of convertible bonds following the directed unit issue qualifying as a financing event, holders of convertibles totaling SEK 7.6 million requested conversion at SEK 0,035 per share (70% of the unit issue price), resulting in the issuance of 216 960 000 new class B shares.

KEY EVENTS AFTER THE END OF THE QUARTER

• Simris Group enters into Memorandum of Understanding regarding divestment of assets in Hammenhög.
• Extraordinary General Meeting 19 January 2026 resolved to elect Julian Read as new board member, adopt new articles of association with increased share capital limits and share limits, and approve (i) a directed issue of units to investors at SEK 0.05 per unit, each unit consisting of one share and two warrant, corresponding to 140 905 267 units (ii) a directed issue of class B shares to management at SEK 0.05 per share, corresponding to 36 783 108 number shares.

CEO UPDATE
Our vision is to build the leading antibody-drug conjugate (ADC) payload company in the industry — pioneering a new generation of payloads that deliver a breakthrough in safety.
On the back of the successful proof-of-concept trials mentioned in the previous report, we initiated the first step of another in-vivo study programme in December. In January, our partner Nuvisan reported challenges in the stability of the ADC constructed for the study, and as such the results were inconclusive. Based upon this experience, we have activated a plan to produce new ADCs using different bioconjugation strategies and several structural variants of Microcystin payloads, with the goal to identify the optimal Pre-Clinical Candidate (PCC) to take into Investigational New Drug (IND) enabling studies.

Also in December, Simris completed a funding round that included the conversion of a large portion of the Company’s debt as part of our ongoing efforts to strengthen and stabilise the Company’s financial position. This included restructuring outstanding loans, converting debt into equity and completing targeted capital injections. While these measures have been dilutive, they have significantly reduced our debt burden and strengthened our equity base. Importantly, the transactions also brought in new cash to the Company, improving short-term liquidity and giving us the financial runway required to continue operations.

I am extremely happy that we were able to bring Julian Read back into the business as board member. His strategic thinking, knowledge of the industry, experience in transformation and investor relations are a significant boost for Simris and I am delighted to have him back on board.

Finally, we announced a memorandum of understanding with the French company Immunrise, who are currently concluding legal, technical and operational due diligence for the acquisition of Simris’ assets in Hammenhög, Sweden. We are optimistic that that the Company will close this deal, thereby completing Simris’ transformation from a food supplement to a biotech company.

The market for ADC’s continues to grow rapidly and driven by:

• The expansion for outpatient ADC administration.
• A rapidly expanding >65-year-old demographic and associated increase in tumour diseases.
• The approval of new ADCs for expanded indications.

ADC revenues were $13bn in 2024 an increase of 25% on the previous year and are forecast to continue growing at a CAGR of 10%* into the 2030’s. In addition to the three points above, further growth of the ADC market will be stimulated by:

• Accelerated R&D funding and clinical trial initiations.
• Growing pharma investments (M&A and license deals).
• An increasing demand for effective, low-toxicity drugs.
• Novel payload classes, including a growing diversification into other biological inhibitors, contributing to a broader pool of payloads that can be also used in combination to overcome drug resistance.

Despite the optimism, there are some areas that can hold back growth, namely:

• Production-related payload supply constraints (mainly auristatin/PBD) creating a bottleneck in ADC production.
• High manufacturing complexity and associated safety measures.

Simris’ unique platform is a game changer for the industry as it is ideal for overcoming these constraints. Our technology platform enables us to develop effective payloads of both high and low-toxicity tailored for the specific cancer type whilst also improving safety of the payload by avoiding its ability to enter healthy cells. Furthermore, the production of cyanotoxins in cyanobacteria is both immensely scalable and cost effective.

The value of cyanobacterial toxins is already evident. Six of the fourteen FDA-approved and commercially available ADC’s, accounting for 40% of the estimated $13bn sales revenue in 2025, are based upon a cyanotoxin (MMAE & MMAF).

Simris can offer multiple new classes of conjugation-ready cyanotoxins, and other cyclic peptides. All of these can be further optimised for both efficacy and safety via structural modifications covered by Simris IP.

I am so impressed and grateful for the energy and passion that the team is applying their work. They believe strongly in the purpose of their work and the potential of our science.

Finally, I wish to thank all of our shareholders for their continued belief and support in what we are working to achieve. Together we can cure more people of cancers and help them to stay healthy.
 
*Simris estimates based upon the forecasts of twelve different ADC market intelligence reports.

The report is published on Simris Groups website:
https://simrisgroup.com/financial-information/financial-reports/