Half-year Results

Quantum Base (AIM: QUBE), the UK-based quantum science company creating a new global standard in authentication, is pleased to announce its unaudited interim results for the six months ended 31 October 2025 ("H1 FY26", "Half Year" or the "Period").

Highlights

• £346,000 expansion of the key contract with Customer #1, a major international security printer, expanding the scope of work and increasing the number of smartphone devices supported to 170 models. This revenue is due in the current financial year ending 30 April 2026.
• Further strengthened the Board and leadership team, appointing founder and ex-CEO Phillip Speed as a Non-Executive Director in July 2025.
• Increased investment in recruitment and infrastructure, supporting commercial and research and development ("R&D") scale-up, and bringing the number of employees to 21.
• Multiple new UK patents granted during the Period, with further patents at intention-to-grant stage and additional filings made.
• Continued material R&D activity to enhance ink durability, substrate versatility and new printing methods.
• Enhancements to the smartphone app and authentication algorithms have improved performance, accuracy and user experience.
• The Company continues to apply for non-dilutive grant funding to accelerate scientific and product development.

Post-Period Highlights

• In December 2025, the Company completed a successful fundraise of £4.26 million, including £217,000 from retail investors, to provide working capital for growth and support costs across staffing, operations and development.
• Signed a major partnership agreement to provide Q-IDs to Customer #2, an international art registry, for the authentication of fine art. The 15-year deal is worth a total of £9.4 million and includes exclusivity in the art market. This includes revenues of £135,000 in FY2026, with expected annual recurring revenue growing incrementally from £175,000 in 2027 to £880,000 in 2032 onwards, with additional scope for extension.
• Ongoing partnership discussions and print trials with additional international security-printing companies throughout Europe, the Middle East and Asia.
• The Company remains on track to sign four commercial contracts in the current financial year, adding to the over one billion Q-IDs now in circulation.

Financial Results Overview

Tom Taylor, CEO of Quantum Base, commented:

"We've made a fantastic start to the 2026 financial year, securing the expansion of a key contract, being awarded multiple new patents, and further strengthening the leadership team. We have also enhanced our anti-counterfeit solution and progressed conversations around new commercial contracts.

"This momentum has carried into the post-period, having signed an exciting partnership agreement with an international art registry for the authentication of fine art. This is an indication of the wide-ranging applicability of the Company's Q-ID and Q-RAND technology, and a vindication of the Board's belief in the scalability of the product and its ability to solve real-world problems.

"We look forward to maintaining our progress over the rest of the financial year and providing further updates as new commercial contracts materialise."

The Interim Report and Financial Statements will be available to view in full on the Quantum Base website: https://quantumbase.com/

QUANTUM BASE HOLDINGS PLC

UNAUDITED RESULTS FOR THE SIX MONTH PERIOD

ENDED 31 OCTOBER 2025

Highlights

Operational Highlights - six months ended 31 October 2025

Commercial Progress and Partnerships

• Expansion of key contract with Customer #1 to cover additional scope, additional compatible devices and new features development.
• Growth of pipeline and marketing activities, including presenting at the International Tax Stamp Forum in Cape Town (April 2025) and approval to join as a member of the International Tax Stamp Association (ITSA).
• Initial sales efforts into the brand protection vertical are seeing strong interest and engagement from security printers and brands.
• Growing international interest across Europe, Middle East and Asia.

Technology and Intellectual Property

• Patent portfolio expansion: Multiple new UK patents granted during the period, with further patents at intention-to- grant stage and additional filings made.
• Continued material R&D activity to enhance ink durability, substrate versatility and new printing methods.
• Numerous enhancements to the smartphone app and authentication algorithms have improved performance and accuracy.
• Design updates, driven by user research projects, have improved the design, user experience and usability of the smartphone app.
• Mobile compatibility extended to 170 smartphone models, increasing accessibility for end-users.
• We continue to apply for non-dilutive grant funding to accelerate scientific and product development. Applied for the Future Leaders Fellowship from UK Research and Innovation.
• We remain on track to sign four commercial contracts in the current financial year.

Governance and People

• Strengthened Board, adding founder and ex-CEO Phillip Speed in July 2025 as a Non-Executive Director to support with industry experience, commercialisation and growth.
• Employee numbers increased to 21 as the Group built out technical, operations and commercial functions.
• Increased recruitment and infrastructure investment to support commercial and R&D scale-up.

Post-Period Developments (after 31 October 2025)

• Completed a successful fundraise of £4.26 million (including £217k from retail investors) to provide working capital for growth In December 2025.
• Signed a major partnership agreement to provide Q-ID*s to an international art registry ("Customer #2") for the authentication of fine art. The 15-year deal is worth a total of £9.4 million and includes exclusivity in the art market. This includes revenues of £135,000 in FY2026, with expected annual recurring revenue ("ARR") growing incrementally from £175,000 in 2027 to £880,000 in 2032 onwards, with additional scope for extension.
• Ongoing partnership discussions and print trials with additional international security-printing companies throughout Europe, Middle East and Asia.

Note*: Q-ID® is a registered trademark of Quantum Base Limited, hereafter referred to as Q-ID.)

Financial highlights - six months ended 31 October 2025

• Growing revenue: £260k (six months ended 31 October 2024: £nil)
• Expansion of key contract: Secured a total of £346k expansion of an existing contract with "Customer #1" - a major international security printer. This revenue is due in the current financial year ending 30 April 2026.
• Operating loss narrowed: £1,410k. (six months ended 31 October 2024: £2,518k)
• Adjusted EBITDA** loss: £1,287k (six months ended 31 October 2024: £435K)
• Capitalised R&D and patent investment increased: £609k (six months ended 31 October 2024: £435k)
• Net cash outflow from operating activities: £985k (six months ended 31 October 2024: £371k)
• Cash and cash equivalents: £533k (31 October 2024: £175k), increased post-period end following the fundraise of £4.26 million in December 2025.

Note ** : Adjusted EBITDA represents earnings before interest, tax, depreciation, amortisation, impairment and share-based payment charges, and is presented as a key performance indicator of the Group's underlying operational performance.

Outlook

Quantum Base has had a strong 2025 with growing revenues, winning an additional contract and continued product development. With the fundraise of £4.26m post-period end, the business is in a fantastic position to capitalise on its IP and deliver on its growth plans.

The Group's immediate focus is expanding within the global security-printing market, building on its first government tax-stamp deployment while developing a pipeline of additional international partners. This is in addition to the large contract (total £9.4m over 15 years) signed post-period with Customer #2, an international art registry, for the use of Q-ID*s to authenticate and give provenance to fine art.

Beyond these initial sectors, Quantum Base continues to evaluate opportunities across pharmaceuticals, apparel, luxury goods, automotive, aerospace and precious-metals markets, where Q-ID*'s combination of security, scalability and smartphone-based verification offers significant differentiation.

With global counterfeiting estimated to cost more than $2.8 trillion*** annually, the Board believes that Quantum Base's scientifically proven, mass-producible quantum-security solutions and its scalable design-and-license model provide a strong foundation for sustained growth and long-term shareholder value creation.

*** Source: Frontier Economics 2017 Report "The Economic Impacts of Counterfeiting and Piracy"

Group statement of comprehensive income For the period ended 31 October 2025

Loss and total comprehensive expense for the financial period is all attributable to the owners of the parent company.

Earnings per share

Notes to the Group Financial Statements

Accounting policies

Company information

Quantum Base Holdings PLC is a public company limited by shares incorporated in England and Wales. The registered office is Alpha House, 4 Greek St, Stockport, Cheshire, United Kingdom, SK3 8AB. The Group's principal activity continued to be that of the development of practical, simply quantum security systems with mass market appeal.

The Group consists of Quantum Base Holdings PLC and all of its subsidiaries.

The consolidated financial information (or "interim financial statements") incorporates the financial information of the Company and entities (its subsidiaries) controlled by the Company (collectively comprising the "Group").

1.1 Accounting convention

The interim financial statements have been prepared in accordance with UK-adopted International Accounting Standards (UK-adopted IAS) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial statements are prepared in sterling, which is the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The material accounting policies adopted are set out below.

The financial information set out in these interim consolidated financial statements for the six months ended 31 October 2025 is unaudited. The financial information presented is not statutory accounts prepared in accordance with the Companies Act 2006, and is prepared only to comply with AIM requirements for interim reporting. It should be read in conjunction with the 30 April 2025 Annual Report and Financial Statements. The financial information for the half years ended 31 October 2025 and 31 October 2024 do not constitute statutory accounts within the meaning of Section 434 (3) of the Companies Act 2006 and both periods are unaudited. The financial information has not been prepared (and is not required to be prepared) in accordance with IAS 34 Interim Financial Reporting.

The Group's annual report and financial statements for the year ended 30 April 2025 have been filed with the Registrar of Companies. The independent auditor's report on the annual report and financial statements for the year ended 30 Apri 2025 was i) unqualified, ii) did not draw attention to any matters by way of emphasis, and iii) did not contain a statement under 498(2) - (3) of the Companies Act 2006.

1.2 Basis of consolidation

The interim financial statements consist of the financial statements of the parent company Quantum Base Holdings PLC together with all entities controlled by the parent Company (its subsidiaries).

Merger accounting

The combination of companies under common control has been treated as if the companies had always been combined and is usually referred to as merger accounting.

IFRS does not prescribe how such a merger is accounted for in the preparation of consolidated financial statements. The use of merger accounting has been applied to treat the combining entities as if they had always been a single entity, with adjustments made for the elimination of transactions between the merged companies.

1.3 Significant accounting policies

The Group has presented below key extracts of its accounting policies. The Group has applied the same accounting policies and methods of computation in its interim financial statements as in its 2025 Annual financial statements with the addition of accounting policy 1.7 in relation to new leases recognised in the interim period. Those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 May 2025 will be adopted in the 2026 financial statements. Adoption of these new standards and interpretations is not expected to have a material impact on the Group's financial statements. The accounting policies applied are based on the recognition and measurement principles of IFRS in issue as adopted by the UK and are effective at 30 April 2026 or are expected to be adopted and effective at 30 April 2026.

1.4 Intangible assets other than goodwill

The Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Development costs are capitalised, provided that the recognition criteria of an intangible asset are met. Capitalised development costs are stated at cost less accumulated amortisation and impairment losses. Research costs are expensed when incurred.

Patents and licences 10% straight line

Development costs 10% straight line

1.5 Equity instruments

The following describes the nature and purpose of each reserve within equity:

• Share capital - Ordinary Shares are classified as equity. The nominal value of Ordinary Shares is included within share capital.
• Share premium - Represents the excess of the subscription price over the nominal value of shares issued.
• Retained earnings - Represents all other net gains and losses and transactions with shareholders (e.g. dividends) not recognised elsewhere.
• Merger reserve - Represents the transactions in reserves under the merger acquisition rules where the entities are under common control.
• Share-based payment reserve - Represents the fair value of options granted, valued using a Black- Scholes option pricing model and spread across the vesting period. Warrants have also been valued using a Black-Scholes option pricing model and recognised when the service that they relate to is considered to be delivered.
• Share capital to be issued - Represents advanced subscriptions for share capital which was not issued as at the year end.

1.6 Share-based payments

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment.

1.7 Leases

At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date.

Critical accounting estimates and judgements

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets, liabilities and equity instruments are outlined below.

Critical judgements

Capitalised development costs

Development expenditure is recognised as an expense except that costs incurred on development projects are capitalised as intangible assets to the extent that such expenditure is expected to generate future economic benefits. Significant judgement is applied in determining if development costs meet the criteria to be capitalised as intangible assets. IAS 36 also requires that an assessment of recoverable amount is prepared for all intangible assets not available for use at the reporting date, and for any intangible asset where there is an indicator of impairment.

Useful lives

Amortisation is provided so as to write down intangible assets, comprising capitalised development costs, patents and trademarks, to their residual values over their estimated useful lives.

All intangible assets are currently amortised on a 10% straight-line basis, reflecting a typical useful life of ten years. This period has been selected because it aligns with the expected commercial life of the Group's technologies and the duration of patent protection, which together represent the period over which future economic benefits are expected to be realised. The useful lives are reviewed annually to confirm that this assumption remains appropriate in light of technological and commercial developments.

The principal area of judgement relates to determining which development costs meet the criteria for capitalisation under IAS 38 and confirming on review that the ten-year life remains reasonable.

By contrast, property, plant and equipment (principally laboratory and computer equipment) are depreciated over short, fixed lives of approximately three years on a straight-line basis. Given their limited carrying value and predictable consumption pattern, these assets are not considered a significant source of estimation uncertainty.

Share-based payments

The determination of the fair values of share options has been made by reference to the Black-Scholes model. The input with the greatest amount of estimation being volatility, which has been benchmarked against historic share price movements of comparable listed competitors due to the company not having a sufficient historic trading record. Other key inputs are set out in note 10.

Deduction of share issuance costs

Costs directly attributable to the issue of new shares are recognised as a deduction to share premium. Management have applied judgement by using a two-tiered approach to determine costs to recognise against share premium and costs to expense in the statement of comprehensive income, in line with IAS 32 Financial instruments: presentation. Costs clearly and wholly related to the placing (such as broker commissions and placing fees) have been allocated in full against share premium, while costs of a mixed nature (principally legal, accounting, and NOMAD fees) have been apportioned using a 32.3%. This percentage corresponds to the proportion of new shares issued on admission (20.83 million) relative to the enlarged share capital (64.50 million). On this basis, total costs deductible and recognised in the statement of comprehensive income amount to approximately £nil (period to 31 October 2024 - £137,000, year ended 30 April 2025 - £650,000).

Warrant valuation and classification

The determination of the fair value of warrants has been made by reference to the Black-Scholes model. The input with the greatest amount of estimation being volatility which has been estimated using historic share price movements.

Additionally, the classification of the warrants as share-based payment under IFRS 2 was a key judgement with management basing the classification on the vesting conditions attached to the warrants.

Revenue

IFRS 8, Operating Segments, states that an operating segment is a component of an entity; that engages in business activities from which it may earn revenue and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker, and, for which discrete financial information is available. The chief operating decision maker of the Group is considered to be the Board of Directors. The Group has one single operating segment and therefore all revenue is derived from the licensing of the Q-ID technology.

There is only one customer in place with a major security printer, whereby the group has signed the Call-off Agreement to apply its Q-ID technology to tax stamps for a government customer.

The calculation of Adjusted EBITDA is consistent with the presentation of Adjusted Earnings before Interest, Tax, Depreciation, and Amortisation, as presented on the face of the Group Statement of Comprehensive Income.

The Directors have presented this Alternative Performance Measure ("APM") because they feel it most suitably represents the underlying performance and cash generation of the business, and allows comparability between the current and comparative period in light of the rapid changes in the business, and will allow an ongoing trend analysis of this performance based on current plans for the business.

Adjusted EBITDA is not an IFRS measure of performance and, as such, may not be comparable with similar metrics reported by other entities.

Operating loss

Operating loss for the year is stated after charging/(crediting):

The loss per Ordinary Share is calculated based on the weighted average number of Ordinary Shares in issue and the reported loss of the Group for each reporting period. There has been no dilution due to losses.

Intangible assets

An impairment review was carried out as at 31 October 2025, which concluded that no impairment charge was required.

Trade and other receivables

Trade receivables are stated net of a specific impairment for estimated irrecoverable amounts of £312k (October 2024 - £nil, April 2025 - £312k).

Lease liabilities

Future gross minimum lease payment are due under leases as follows:

These are disclosed in the financial statements on a net basis (excluding future finance charges) as follows:

Share-based payments

Quantum Base Holdings Plc operates two equity-settled share-based remuneration schemes: a United Kingdom tax authority approved scheme for certain employees and an unapproved scheme for advisers of Quantum Base Holdings Plc. For the avoidance of doubt, the 49,704 options present below cover both schemes.

Options outstanding

All options were exercised on 31 March 2025. No options were outstanding at the period end (October 2024 - 49,704 options outstanding at an exercise price of 0.005 pence, April 2025 - none).

The following information is relevant in the determination of the fair value of options granted during the period/year under the equity share-based schemes operated by the Group.

Events after the reporting date

In November 2025, Quantum Base Group Signed a major partnership agreement to provide Q-IDs to an international art registry ("Customer #2") for the authentication of fine art. The 15-year deal is worth a total of £9.4 million and includes exclusivity in the art market. This includes revenues of £135,000 in FY2026, with expected annual recurring revenue ("ARR") growing incrementally from £175,000 in 2027 to £880,000 in 2032 onwards, with additional scope for extension. In December 2025, Quantum Base Holdings Plc completed an equity fundraising that raised gross proceeds of £4,260,237 of growth working capital to strengthen the statement of financial position, and support costs across staffing, operations and development. This was satisfied by the issue and admission of 20,286,845 new Ordinary Shares to trading on AIM on 22 December 2025.