Q1 FY26 Quarterly Report and Appendix 4C

Wellnex Life Limited (ASX/AIM: WNX) ("Wellnex Life" or the "Company") is pleased to provide the following operational and business update along with its Appendix 4C for the quarter ended 30 September 2025 (unaudited). Executive Chairman, Ash Vesali, has separately today provided an update to shareholders on progress and plans.

Highlights

• Cash receipts of $4.5 million for the quarter ended 30 September 2025 (Q1 FY26) compared to $6.5 million for the previous quarter (Q4 FY25)
• Sales for Q1 FY26 were $5.4 million, a decrease of 18.2% compared to the previous quarter (Q4 FY25: $6.6 million)
• Additional debt funding facilities of up to $5.35 million secured, with $4.1 million drawn down at the end of Q1 FY26
• Wellnex continued its internal review to identify core operational efficiencies and cost-saving opportunities, and has initiated a process to exit medicinal cannabis segment

Sales for Q1 FY26 were $5.4 million, down 18.2% from the previous quarter, primarily due to delayed IP licensing revenue, which declined 82.3%, now expected to be invoiced and received in the coming months. Brand sales grew 4.1% over the same period. Gross profit was 35.2% ($1.8 million), compared to 37.9% ($2.5 million) in the prior quarter.

Revenue overview:

The Company reported cash receipts of $4.5 million for Q1 FY26 and a net operating cash flow loss from operations of $2.9 million. The operating loss reflects increased product manufacturing costs, including a one-off raw material purchase for Pain Away with the intention of increasing margins over the longer term, repayment of long-term liabilities and lower quarterly cash receipts.

During the quarter, the Company recorded advertising and marketing cost of $0.8 million, compared to $0.6 million for the prior quarter. Staff costs decreased to $0.9 million, down from $1.0 million in the prior quarter.

Increase in administrative and corporate costs for the period was a direct result of the establishment of the new loan facility with Reach Wholesale ("Reach").

Proceeds from borrowings of $7.0 million relate to the new loan facility with Reach and funding provided by Scottish Pacific Business Finance Pty Ltd ("ScotPac"), with repayments of $3.5 million related to the ScotPac facility including the reduction in the trade facility from $2.5 million to $1 million.

Payments made to related parties as outlined under section 6.1 of the Appendix 4C relate to:

• the customary director fees and salaries ($370k);
• repayment of costs for raw material and packaging and interest to Homart, an entity associated with Jeffrey Yeh, a director of the Company ($1.28m); and
• rent and logistics costs to entities associated with Zack Bozinovski, a director of the Company ($126k).

During the quarter, Wellnex continued its internal review to identify core brand assets, operational efficiencies, and cost-saving opportunities aimed at maximising revenue, margins and operational profitability. The review will continue through FY26, with initial benefits expected to materialise throughout FY26. Further details are set out in the separate Chairman's letter.

As part of the Company's ongoing internal business review, the Board has resolved to cease all operations under the Wellness Life brand in the medicinal cannabis market. While the Australian medicinal cannabis sector continues to present opportunities, it also demands substantial ongoing investment and has become increasingly competitive.

The Company has initiated the process to fully exit all activities associated with the medicinal cannabis segment, including the closure of related joint ventures. In FY25, the medicinal cannabis operations contributed less than 1% of the group total revenue and are not expected to have any material impact going forward.

Appendix 4C

Quarterly cash flow report for entities

subject to Listing Rule 4.7B

Name of entity

WELLNEX LIFE LIMITED

• Secured Revolving Trade and Debtor Facility with Scottish Pacific of $3.8 million Interest Rate: BBSY plus 6.8%. 2. Secured loan facility with Reach Wholesale of up to $5.35 million at 14% per annum expiring August 2027. The amount shown in Section 7 is for the amount drawn down ($4.1 million) at the close of the period plus further $315,000 that is available to the company if requested. Any further drawdowns of up to $875,000 is at the absolute discretion of lender with no guarantees of future drawdowns.

• In the prior quarter there was large one off large purchase of inventory of $1.2 million, repayment of long term liabilities of c.$1.5 million to strengthen the balance sheet and the company has commenced a cost cutting programme that will result in a reduction of OPEX in this quarter. In addition, there was a short delay in IP licensing orders which further impacted margins.

Out of prudence, the company continually assesses different options in the event the company requires a capital injection and Wellnex has been provided with a non-binding letter of support from a third party that they will provide funding if required.

• The company has invested in inventory that is expected to generate significant sales for the company with also a large pipeline in this quarter of IP licensing purchase orders that will significantly increase the cashflow of the business. The company also has the support of third parties if so required to raise additional capital.

Compliance statement

2 This statement gives a true and fair view of the matters disclosed.

Date: ...................................................................................

The Board of Directors

Authorised by: ...................................................................................

(Name of body or officer authorising release - see note 4)

Notes

This ASX/AIM announcement has been authorised by the Board of Wellnex Life Limited (ASX/AIM:WNX).