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APPLIED BIOCODE CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS' REPORT

DECEMBER 31, 2025 AND 2024

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INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Shareholders of Applied BioCode Corporation

Opinion

We have audited the accompanying consolidated balance sheets of Applied BioCode Corporation and subsidiaries (the "Group") as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group’s 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2025 consolidated financial statements are stated as follows:

Existence and occurrence of cash and cash equivalents

Description

Please refer to Note 4(6) for accounting policies applied to cash and cash equivalents, and Note 6(1) for details of account items. As of December 31, 2025, cash and cash equivalents amounted to NT$464,786 thousand, constituting 46% of the total consolidated assets. As cash and cash equivalents constitute a significant portion of total consolidated assets and inherent risk exists, we considered the existence and occurrence of cash and cash equivalents a key audit matter.

How our audit addressed the matter

We performed the following procedures in respect of the above key audit matter:

Confirmed bank accounts and special arrangements with financial institutions to verify the existence and rights and obligations of the bank deposits;
Verified the authenticity of the necessary information for the bank confirmations;
Reviewed and tested the mathematical accuracy of bank reconciliation statements, agreed the balances with the balances per cash book and per bank balance, identified any unusual or significant items and ensured that these were properly disposed of.

Selected samples of significant cash receipt and payment transactions to ascertain whether the transactions were incurred for operational needs.

Existence of sales revenues

Description

Please refer to Note 4(22) for accounting policies on revenue recognition, and Note 6(16) for details of sales revenue.

The primary business of Applied BioCode Group is the sales of Barcoded Magnetic Beads, Reagents and Optical Analyzers for multiplex in-vitro diagnostics to third party testing laboratories and medical institutions. The transaction terms vary depending on market conditions and customers' needs. As sales revenue are the main transactions of the Group and are material to the financial statements, the existence of sales revenue has been identified as a key audit matter.

How our audit addressed the matter

We performed the following procedures in respect of the above key audit matter:

Inspected whether approved additions to the merchandise master file data had been correctly entered in the merchandise master file which include basic information of customers for evaluating the creditworthiness of buyers.
Evaluated and tested management's controls in respect of the Group's sales transactions and the execution of actual processes.
Performed substantive test on selected sales transactions including confirming orders, shipping documents, invoices and cash receipts to verify the existence of sales revenues.

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Checked the related industry background information in respect of the newly top 10 significant customers and obtained and selected samples to verify related vouchers of sales revenue in order to check the accuracy of revenue recognition.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the Group's financial reporting process.

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Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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 Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, 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 management.

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Conclude on the appropriateness of management’s 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 auditors’ report to the related disclosures in the consolidated financial statements 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 auditors’ 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 consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent 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 consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance 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 those charged with governance 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, related safeguards.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' 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.

Wendy Liang
Alan Chien

For and on behalf of PricewaterhouseCoopers, Taiwan

March 11, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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APPLIED BIOCODE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 464,786	46	$ 605,958	50
1136	Financial assets at amortised cost-current	6(2)	104,802	10	251,529	21
1170	Accounts receivable, net	6(3) and 12(2)	121,982	12	45,018	4
130X	Inventories, net	6(4)	156,294	16	190,074	15
1479	Other current assets		10,597	1	11,706	1
11XX	Total current assets		858,461	85	1,104,285	91
Non-current assets
1600	Property, plant and equipment, net	6(5)	86,028	8	85,637	7
1755	Right-of-use assets	6(6)	58,501	6	13,150	1
1780	Intangible assets, net	6(7)	85	-	1,799	-
1840	Deferred income tax assets		2,982	-	3,109	-
1900	Other non-current assets	8	6,647	1	6,922	1
15XX	Total non-current assets		154,243	15	110,617	9
1XXX	Total assets		$ 1,012,704	100	$ 1,214,902	100

(Continued)

APPLIED BIOCODE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Liabilities
Current liabilities
2130	Current contract liabilities	6(16)	$ 42,783	4	$ 54,594	5
2170	Accounts payable		15,682	1	6,442	1
2200	Other payables	6(9)	47,265	5	51,527	4
2280	Current lease liabilities	6(6)	20,793	2	17,258	1
2399	Other current liabilities		23	-	9	-
21XX	Total current liabilities		126,546	12	129,830	11
Non-current liabilities
2527	Non-current contract liabilities	6(16)	201,195	20	200,867	17
2570	Deferred tax liabilities		2,982	-	3,109	-
2580	Non-current lease liabilities	6(6)	38,766	4	2,266	-
25XX	Total non-current liabilities		242,943	24	206,242	17
2XXX	Total liabilities		369,489	36	336,072	28
Equity
	Share capital	6(12)
3110	Common share		1,028,111	102	1,027,876	84
	Capital surplus	6(10)(13)
3200	Capital surplus		37,219	3	272,276	22
	Accumulated deficit	6(14)
3350	Accumulated deficit		( 417,807) ( 41) (		453,971) ( 37)
	Other equity interest	6(10)(15)
3400	Other equity interest		( 4,308)	-	32,649	3
3XXX	Total equity		643,215	64	878,830	72
3X2X	Total liabilities and equity		$ 1,012,704	100	$ 1,214,902	100

The accompanying notes are an integral part of these consolidated financial statements.

APPLIED BIOCODE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except for loss per share amount)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(8)(16)	$ 475,200	100	$ 343,066	100
5000	Operating costs	6(4)(20)(21)	( 214,307)	( 45)	( 139,068)	( 41)
5900	Gross profit from operation		260,893	55	203,998	59
	Operating expenses	6(20)(21)
6100	Selling expenses		( 82,679)	( 17)	( 92,624)	( 27)
6200	Administrative expenses		( 102,447)	( 22)	( 116,428)	( 34)
6300	Research and development expenses		( 298,589)	( 63)	( 272,615)	( 79)
6450	Impairment loss determined in accordance with IFRS 9	12(2)	( 511)	-	( 243)	-
6000	Total operating expenses		( 484,226)	( 102)	( 481,910)	( 140)
6900	Net operating loss		( 223,333)	( 47)	( 277,912)	( 81)
	Non-operating income and expenses
7100	Interest income	6(17)	22,941	5	27,629	8
7020	Other gains and losses	6(18)	858	-	( 9,071)	( 3)
7050	Finance costs	6(6)(19)	( 1,587)	-	( 1,427)	-
7000	Total non-operating income and expenses		22,212	5	17,131	5
7900	Loss before income tax		( 201,121)	( 42)	( 260,781)	( 76)
7950	Income tax expense	6(22)	( 79)	-	( 26)	-
8200	Loss for the year		($ 201,200)	( 42)	($ 260,807)	( 76)
	Other comprehensive income (loss)
	Components of other comprehensive income (loss) that will not be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations	6(15)	($ 36,957)	( 8)	$ 39,988	12
8500	Total comprehensive loss for the year		($ 238,157)	( 50)	($ 220,819)	( 64)
	Loss attributable to:
8610	Owners of the parent	6(23)	($ 201,200)	( 42)	($ 260,807)	( 76)
	Comprehensive loss attributable to:
8710	Owners of the parent		($ 238,157)	( 50)	($ 220,819)	( 64)
	Loss per share (in dollars)	6(23)
9750	Basic loss per share		($ 1.96)	($		2.88)
9850	Diluted loss per share		($ 1.96)	($		2.88)

The accompanying notes are an integral part of these consolidated financial statements.

APPLIED BIOCODE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

		Equity attributable to owners of the parent
	Notes	Share capital - common stock	Total capital surplus, additional paid-in capital	Total unappropriated retained earnings (accumulated deficit)	Financial statements translation differences of foreign operations	Total
2024
Balance at January 1, 2024		$ 817,684	$ 43,809	($ 193,164)	($ 7,339)	$ 660,990
Loss for the year	6(14)	-	-	( 260,807)	-	( 260,807)
Other comprehensive income for the year	6(15)	-	-	-	39,988	39,988
Total comprehensive income (loss)		-	-	( 260,807)	39,988	( 220,819)
Compensation cost of employee stock options	6(10)(13)(21)	-	( 2,524)	-	-	( 2,524)
Issuance of common stock	6(12)(13)	210,000	231,000	-	-	441,000
Exercise of employee stock options	6(10)(12)(13)	192	( 9)	-	-	183
Balance at December 31, 2024		$ 1,027,876	$ 272,276	($ 453,971)	$ 32,649	$ 878,830
2025
Balance at January 1, 2025		$ 1,027,876	$ 272,276	($ 453,971)	$ 32,649	$ 878,830
Loss for the year	6(14)	-	-	( 201,200)	-	( 201,200)
Other comprehensive income for the year	6(15)	-	-	-	( 36,957)	( 36,957)
Total comprehensive income (loss)		-	-	( 201,200)	( 36,957)	( 238,157)
Compensation cost of employee stock options	6(10)(13)(21)	-	2,344	-	-	2,344
Exercise of employee stock options	6(10)(12)(13)	235	( 37)	-	-	198
Capital surplus used to offset accumulated deficits	6(13)(14)	-	( 237,364)	237,364	-	-
Balance at December 31, 2025		$ 1,028,111	$ 37,219	($ 417,807)	($ 4,308)	$ 643,215

The accompanying notes are an integral part of these consolidated financial statements.

APPLIED BIOCODE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax	($)	201,121)	($) 260,781)
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(20)	54,749	56,884
Amortisation	6(7)(20)	1,629	4,520
Expected credit loss	12(2)	511	243
Interest income	6(17)	(22,941)	(27,629)
Interest expense	6(19)	1,587	1,427
Compensation cost of employee share-based payment	6(10)(13)	2,344	(2,524)
Changes in operating assets and liabilities
Changes in operating assets
Accounts receivable, net	(	77,279)	5,487
Inventories, net	(	2,013)	(26,512)
Other current assets		1,109	(5,179)
Changes in operating liabilities
Contract liabilities	(	11,483)	4,136
Accounts payable		9,240	3,858
Other payables	(	4,262)	12,162
Other current liabilities		14	(4)
Cash outflow generated from operations	(	247,916)	(233,912)
Interest received		22,941	27,629
Interest paid	(	1,587)	(1,427)
Income tax paid	6(22)	(79)	(26)
Net cash flows used in operating activities		(226,641)	(207,736)
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in current financial assets at amortised cost	6(2)	(108,713)	(182,333)
Recovery of financial assets at amortised cost	6(2)	245,136	122,426
Acquisition of property, plant and equipment	6(24)	(8,819)	(7,379)
Decrease in refundable deposits		-	8,195
Net cash flows from (used in) investing activities		127,604	(59,091)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of principal portion of lease liabilities	6(25)	(19,009)	(16,785)
Proceeds from issuance of shares	6(12)(13)	-	441,000
Exercise of employee stock options	6(10)(12)(13)	198	183
Net cash flows (used in) from financing activities		(18,811)	424,398
Effect of exchange rate changes		(23,324)	35,193
Net (decrease) increase in cash and cash equivalents		(141,172)	192,764
Cash and cash equivalents at beginning of year		605,958	413,194
Cash and cash equivalents at end of year		$464,786	$605,958

The accompanying notes are an integral part of these consolidated financial statements.

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APPLIED BIOCODE CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. History and Organization

Applied BioCode Corporation (the “Company”) was incorporated as a company in the British Cayman Islands on April 15, 2016, as a holding company for the purpose of reorganization. On June 30, 2016, as part of a reorganization, Applied BioCode Inc. converted all of its outstanding shares to the Company’s newly issued shares. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in Barcoded Magnetic Beads of multiplex in-vitro diagnostics, platform technology of assays and instruments and research and development, production, sales, leasing and authorisation of products. The Company’s shares have been listed on the Taiwan Stock Exchange since June 9, 2020.

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These consolidated financial statements were authorised for issuance by the Board of Directors on March 11, 2026

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2025 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Specific provisions of Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
2026 IFRS 17, ‘Insurance contracts’	January 1, 2023
2023Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
2023Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 -comparative information’	January 1, 2023
2023Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027(Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
2027Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

Note : The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment. IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

A. The consolidated financial statements have been prepared under the historical cost convention.

B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

(a) The Group's financial statements are initially presented in USD. When converting the consolidated financial statements into New Taiwan Dollars, all assets and liabilities are translated into New Taiwan Dollars at the exchange rate of the balance sheet; except for the balance accrued at the end of the period, the balance of the equity in the equity account is carried forward, and the rest is based on historical exchange rates. Profit and loss accounts are translated at the weighted average exchange rate, and the difference arising from the conversion is included in the "cumulative translation adjustment" as an adjustment item for equity.

(b) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

(c) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(d) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to

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the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

(e) Changes in the Company's shares in subsidiaries do not result in loss in control (transactions with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

(f) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of the subsidiary	Main business activities	Ownership (%)	Ownership (%)
			December 31, 2025	December 31, 2024
Applied BioCode Corporation	Applied BioCode, Inc.	Barcoded Magnetic Beads of multiplex in-vitro diagnostics, platform technology of assays and instruments and research and development, production, sales and leasing.	100%	100%
Applied BioCode, Inc.	Applied BioCode Taiwan Ltd.	Barcoded Magnetic Beads of multiplex in-vitro diagnostics, platform technology of assays and instruments and research and development, production and sales of products.	100%	100%

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Foreign currency translation

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in USD, which is the Company's functional and the Group's presentation currency. However, the consolidated financial statements are

presented in NTD under the future financing plan and the regulations of the country where the consolidated financial statements are reported to the regulatory authorities.

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

(b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

(d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'.

B. Translation of foreign operations

(a) The operating results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

i. Assets and liabilities presented in each balance sheet are translated at the closing exchange rate at the date of that balance sheet;

ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognised in other comprehensive income.

(b) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income (loss) are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

~18~

(5) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

(a) Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

(b) Assets that are held primarily for the purpose of trading;

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

(a) Liabilities that are expected to be settled in the normal operating cycle;

(b) Liabilities that are held primarily for the purpose of trading;

(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:

(a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

(b) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(7) Accounts receivable

A. Accounts receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

B. The short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

~19~

(8) Impairment of financial assets

For financial assets at amortised cost including accounts receivable or contract assets that have a significant financing component, lease receivables, loan commitments and financial guarantee contracts, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(10) Leasing arrangements (lessor)—operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(11) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

(12) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost.

B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

C. Property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

~20~

D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Test equipment	5 years
Machinery and equipment	5 years
Rental assets	5 years
Office equipment	5 years
Leasehold improvements	6 years

(13) Leasing arrangements (lessee)—right-of-use assets / lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate.

Lease payments are comprised of the following:

(a) Fixed payments, less any lease incentives receivable; and
(b) Amounts expected to be payable by the lessee under residual value guarantees.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

(a) The amount of the initial measurement of lease liability;
(b) Any initial direct costs incurred by the lessee; and
(c) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

~21~

(14) Intangible assets

A. Computer software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 5 years.

B. Patents and patented technologies

Patents acquired by issuing new shares to exchange is recognised based on the fair value at the acquisition date. The fair value is stated based on the appraisal report and is amortized on a straight-line basis over patent’s estimated useful of 15 to 17 years.

Other patents are stated at cost and amortised on a straight-line basis over its duration of 6 to 9 years.

(15) Impairment of non-financial assets

A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use.

B. The recoverable amounts of intangible assets with an indefinite useful life and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

(16) Accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and accounts payable are those resulting from operating and non-operating activities.

B. The short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(17) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(18) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

B. Pensions

For the defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

~22~

C. Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently distributed amounts is accounted for as changes in estimates.

(19) Employee share-based payment

A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

B. Restricted stocks

(a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period.

(b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognises the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

(c) For restricted stocks where employees do not need to pay to acquire those stocks, if the Group will pay the employees who resign during the vesting period to repurchase the stocks, the Group estimates such payments that will be made and recognises such amounts as compensation cost and liability at the grant date, in accordance with the terms of restricted stocks.

(20) Income taxes

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns

~23~

with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax of Taiwan subsidiary is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(21) Share capital

Common shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

(22) Revenue recognition

A. Sales revenue

(a) The Group manufactures and sells test reagents and medical instruments. Revenue is measured at the fair value of the consideration received or receivable from the sale of goods to external customers in the ordinary course of the Group's operating activities after netting the business tax, returns, rebates and discounts. Sales are recognised when control of the

~24~

products has transferred, being when the products are delivered to the buyer, the buyer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the buyer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the buyer, and either the buyer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

(b) If the payment (or payable) exceeds the services or goods delivered, a contract liability is recognised.

B. Revenue from licencing intellectual property

The Group entered into contracts with customers to grant licences of patents to the customers. Given the licences are distinct from other promised goods or services in the contract, the Group recognises the revenue from licencing based on the nature of the licences granted. The nature of the Group’s promise in granting licences is a promise to provide a right to access the Group’s intellectual property if the Group undertakes activities that significantly affect the patents to which the customer has rights, the customer is affected by the Group’s activities and those activities do not result in the transfer of a good or a service to the customer as they occur. The royalties are recognised as revenue on a straight-line basis throughout the licencing period. In case the abovementioned conditions are not met, the nature of the Group’s promise in granting a licence is a promise to provide a right to use the Group’s intellectual property and therefore, the revenue is recognised when transferring the licence to a customer at a point in time.

C. Rental revenue

The Group entered into the reagent purchase agreements with clients and provides the medical devices for the customers to use through operating leases. Lease income from operating leases (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

D. Other operating revenue

Other operating revenue from the sale of consumables is recognised when the Group sells a product to the customer. Payment of the transaction price is due when the customer purchases the product.

(23) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

-25-

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The related information is addressed below:

(1) Critical judgements in applying the Group's accounting policies

Whether performance obligations are distinguishable

The Group assesses the promised goods and services to the customers in the technology licensing and goods supply contracts in accordance with the regulation in paragraph 27 of IFRS 15 to identify which goods and services are distinguishable. The Group determines that the customers could not independently benefit from the technology licensing without obtaining the raw material goods provided by the Group. The terms in paragraph 27 of IFRS 15 are not met. Therefore, the technology licensing and the sales of raw material goods are not distinguishable. The Group accounts for the technology licensing and the sales of raw material goods as a single performance obligation.

(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

B. Revenue recognition from technology licensing and goods supply contracts

The Group's revenue from technology licensing and goods supply contracts is the contract payments received in advance from customers for contracts of licensing for technology transfer and supplying inventory goods at discounted prices for the next ten years and shown as contract liabilities. The contract liabilities will be transferred to the sales revenue subsequently when the performance obligation has been satisfied according to the proportion of the actual quantity of inventory goods purchased by the customer each year relative to the total expected quantity. At the balance sheet date, according to the budgeted purchase volume and estimated market growth rate for the next year provided by the customer, the Group reviews the reasonableness of the estimates periodically and adjusts it if there are significant differences.

~26~

In the fourth quarter of 2025, the customer increased the safety stock preparation due to geopolitical considerations, which led to the changes in the estimated total annual purchased quantity of inventory goods in the future. As a result, the changes in the Group's accounting estimates occurred. Details regarding revenue recognition from technology licensing and goods supply contracts are provided in Note 6(16). As of December 31, 2025, the carrying amount of contract liabilities was $243,978.

The changes in estimates resulted in an increase in contract liabilities by $50,963 and a decrease in sales revenue by $50,487 for the year, leading to an increase in loss per share by $0.35.

6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Checking accounts and demand deposits	$ 464,786	$ 605,958

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. These deposits were mainly deposited in U.S. financial institutions, and the currency of time deposits was denominated at US dollars.
C. The Group has no cash and cash equivalents pledged to others.

(2) Financial assets at amortised cost

	December 31, 2025	December 31, 2024
Time deposits	$ 104,802	$ 251,529

A. These time deposits have maturity dates over 3 months.
B. As of December 31, 2025 and 2024, the interest rate of time deposits was 4.15% and 4.35%-5.20%, respectively.
C. The time deposits were mainly deposited in U.S. financial institutions, and the currency of time deposits was denominated in US dollars.

(3) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 127,210	$ 49,931
Less: Allowance for uncollectible accounts	( 5,228)	( 4,913)
	$ 121,982	$ 45,018

A. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

The above ageing analysis was based on past due date.

B. As of December 31, 2025, December 31, 2024, and January 1, 2024, the balances of receivables from contracts with customers amounted to $127,210, $49,931 and $55,418, respectively.
C. The Group has no accounts receivable pledged to others.
D. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's accounts receivable was $121,982 and $45,018, respectively.
E. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(4) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 122,499	($ 25,427)	$ 97,072
Work in process	33,203	-	33,203
Finished goods	31,574	( 5,555)	26,019
	$ 187,276	($ 30,982)	$ 156,294
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 131,463	($ 22,428)	$ 109,035
Work in process	33,281	-	33,281
Finished goods	53,759	( 6,001)	47,758
	$ 218,503	($ 28,429)	$ 190,074

The cost of inventories recognised as expense for the year:

	Year ended December 31, 2025	Year ended December 31, 2024
Cost of goods sold	$ 206,988	$ 124,409
Loss on scrap	3,680	4,946
Valuation loss	3,639	9,713
	$ 214,307	$ 139,068

(5) Property, plant and equipment

	Test equipment	Leasehold improvements	Machinery and equipment	Office equipment	Rental assets	Total
At January 1, 2025
Cost	$ 2,422	$ 75,303	$ 70,602	$ 5,517	$ 110,862	$ 264,706
Accumulated depreciation	( 2,263)	( 50,348)	( 46,218)	( 4,622)	( 75,618)	( 179,069)
	$ 159	$ 24,955	$ 24,384	$ 895	$ 35,244	$ 85,637
2025
At January 1	$ 159	$ 24,955	$ 24,384	$ 895	$ 35,244	$ 85,637
Additions	-	-	8,023	796	-	8,819
Transfer (Note)	-	-	-	-	35,793	35,793
Depreciation charge	( 159)	( 11,413)	( 10,403)	( 558)	( 18,236)	( 40,769)
Net exchange differences	-	( 1,129)	( 1,011)	( 33)	( 1,279)	( 3,452)
At December 31	$ -	$ 12,413	$ 20,993	$ 1,100	$ 51,522	$ 86,028
At December 31, 2025
Cost	$ 2,422	$ 72,342	$ 75,959	$ 6,104	$ 142,270	$ 299,097
Accumulated depreciation	( 2,422)	( 59,929)	( 54,966)	( 5,004)	( 90,748)	( 213,069)
	$ -	$ 12,413	$ 20,993	$ 1,100	$ 51,522	$ 86,028
	Test equipment	Leasehold improvements	Machinery and equipment	Office equipment	Rental assets	Unfinished construction and equipment under acceptance
---	---	---	---	---	---	---
At January 1, 2024
Cost	$ 2,422	$ 70,793	$ 63,313	$ 5,187	$ 89,967	$ 1,400
Accumulated depreciation	( 2,090)	( 36,105)	( 33,970)	( 3,431)	( 52,701)	-
	$ 332	$ 34,688	$ 29,343	$ 1,756	$ 37,266	$ 1,400
2024
At January 1	$ 332	$ 34,688	$ 29,343	$ 1,756	$ 37,266	$ 1,400
Additions	-	-	5,344	-	-	-
Transfer (Note)	-	-	( 275)	-	13,150	( 1,463)
Depreciation charge	( 173)	( 11,801)	( 11,811)	( 958)	( 17,563)	-
Net exchange differences	-	2,068	1,783	97	2,391	63
At December 31	$ 159	$ 24,955	$ 24,384	$ 895	$ 35,244	$ -
At December 31, 2024
Cost	$ 2,422	$ 75,303	$ 70,602	$ 5,517	$ 110,862	$ -
Accumulated depreciation	( 2,263)	( 50,348)	( 46,218)	( 4,622)	( 75,618)	-
	$ 159	$ 24,955	$ 24,384	$ 895	$ 35,244	$ -

Note: The inventory was transferred to rental assets and machinery and equipment, the machinery and equipment was transferred to inventory and leasehold improvements, the unfinished construction and equipment under acceptance was transferred to machinery and equipment.

(6) Lease arrangements - lessee

A. The Group leases various assets, including buildings, machinery and equipment. Rental contracts are made for periods of 2 to 7 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants other than the restriction to be used as guarantee for borrowing purposes

B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

| | December 31, 2025
Carrying amount | December 31, 2024
Carrying amount |
| --- | --- | --- |
| Buildings | $ 49,976 | $ 12,512 |
| Machinery and equipment | 8,525 | 638 |
| | $ 58,501 | $ 13,150 |
| | Year ended December 31, 2025 | Year ended December 31, 2024 |
| | Depreciation expense | Depreciation expense |
| Buildings | $ 11,541 | $ 14,418 |
| Machinery and equipment | 2,439 | 160 |
| | $ 13,980 | $ 14,578 |

C. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $65,251 and $0, respectively.

D. The carrying amount of lease liabilities are as follows:

| | December 31, 2025
Carrying amount | December 31, 2024
Carrying amount |
| --- | --- | --- |
| Current | $ 20,793 | $ 17,258 |
| Non-current | 38,766 | 2,266 |
| | $ 59,559 | $ 19,524 |

E. Information on profit or loss in relation to lease contracts is as follows:

	Year ended December 31, 2025	Year ended December 31, 2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 1,587	$ 1,427
Expense on leases of low-value assets	65	67

F. For the years ended December 31, 2025 and 2024, the Group's total cash outflow for leases were $20,661 and $18,279, respectively.

G. Extension options

(a) Extension options are included in the Group's lease contracts pertaining to offices and plants. These terms and conditions aim to maximize optional flexibility in terms of managing contracts.

(b) In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

(7) Intangible assets

	Patents and patented technologies	Computer software	Total
At January 1, 2025
Cost	$ 62,105	$ 1,443	$ 63,548
Accumulated amortisation	( 60,645)	( 1,104)	( 61,749)
	$ 1,460	$ 339	$ 1,799
2025
At January 1	$ 1,460	$ 339	$ 1,799
Amortisation charge	( 1,387)	( 242)	( 1,629)
Net exchange differences	( 73)	( 12)	( 85)
At December 31	$ -	$ 85	$ 85
At December 31, 2025
Cost	$ 59,561	$ 1,407	$ 60,968
Accumulated amortisation	( 59,561)	( 1,322)	( 60,883)
	$ -	$ 85	$ 85
	Patents and patented technologies	Computer software	Total
At January 1, 2024
Cost	$ 58,229	$ 1,389	$ 59,618
Accumulated amortisation	( 52,772)	( 827)	( 53,599)
	$ 5,457	$ 562	$ 6,019
2024
At January 1	$ 5,457	$ 562	$ 6,019
Amortisation charge	( 4,273)	( 247)	( 4,520)
Net exchange differences	276	24	300
At December 31	$ 1,460	$ 339	$ 1,799
At December 31, 2024
Cost	$ 62,105	$ 1,443	$ 63,548
Accumulated amortisation	( 60,645)	( 1,104)	( 61,749)
	$ 1,460	$ 339	$ 1,799

Patents and patented technologies refer to the patents and technologies acquired by the Group for manufacturing and testing of Barcoded Magnetic Beads.

(8) Leasing arrangements – lessor

A. The Group leases various assets including machinery and equipment. Rental contracts are typically made for a period of 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

B. Gain arising from operating lease agreements for the years ended December 31, 2025 and 2024 are as follows (shown as ‘operating revenue’):

	Year ended December 31, 2025	Year ended December 31, 2024
Rental revenue	$ 11,145	$ 6,683
Rental revenue from variable lease payments	$ 19,191	$ 5,085

C. The Group’s rental revenue from operating leases were based on the sales amount of reagent during the contract period, which is a variable lease payment.

(9) Other payables

	December 31, 2025	December 31, 2024
Accrued salaries and bonus	$ 29,351	$ 28,048
Accrued professional service fee	5,793	5,500
Accrued tax	5,217	2,530
Others	3,613	6,485
Accrued research and development expenses	3,291	2,080
Compensation payable	-	6,884
	$ 47,265	$ 51,527

Legal claims

Applied BioCode, Inc., the Group’s US subsidiary, received a letter from the lawyer appointed by a resigned employee in 2024, claiming that there was a dispute over the labor relationship with Applied BioCode, Inc. and a lawsuit was failed to request for compensation from the Group, which was shown as other payables amounting to $6,884 thousand as of December 31, 2024. On February 5, 2025, both parties completed a settlement through their lawyers, and the Group paid the compensation amounting to US$210 thousand at the end of May 2025 in accordance with the result of mediation.

(10) Share-based payment

A. As of December 31, 2025, the Group’s share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted	Contract period	Vesting conditions
Employee stock options	2016/02/29	211,700	10 years	1 to 4 years’ service; Description (b)(e)
	2016/06/08	112,800	10 years	0 to 4 years’ service; Description (a)(b)
	2018/07/02	215,000	10 years	2 to 4 years’ service; Description (h)
	2018/09/28	172,000	10 years	2 to 4 years’ service; Description (h)
	2018/12/11	51,000	10 years	2 to 4 years’ service; Description (h)
	2019/04/11	26,500	10 years	2 to 4 years’ service; Description (h)
	2020/07/21	347,360	10 years	2 to 4 years’ service; Description (h)
	2021/01/05	25,500	10 years	2 to 4 years’ service; Description (h)
	2021/03/18	10,500	10 years	2 to 4 years’ service; Description (h)
	2021/05/14	331,800	10 years	2 to 4 years’ service; Description (h)
	2021/09/06	34,500	10 years	2 to 4 years’ service; Description (h)
	2021/11/08	83,500	10 years	2 to 4 years’ service; Description (h)
	2022/03/23	327,500	10 years	2 to 4 years’ service; Description (h)
	2022/05/10	1,000	10 years	2 to 4 years’ service; Description (h)
	2022/08/26	140,000	10 years	2 to 4 years’ service; Description (h)
	2023/03/13	124,000	10 years	2 to 4 years’ service; Description (h)
	2023/05/12	80,000	10 years	2 to 4 years’ service; Description (h)
	2023/11/08	25,000	10 years	2 to 4 years’ service; Description (h)
	2024/3/7	75,000	10 years	2 to 4 years’ service; Description (h)
	2024/5/10	13,000	10 years	2 to 4 years’ service; Description (h)
	2024/8/22	108,000	10 years	2 to 4 years’ service; Description (h)
	2024/11/11	5,000	10 years	2 to 4 years’ service; Description (h)
	2025/3/13	260,000	10 years	2 to 4 years’ service; Description (h)
	2025/5/8	18,000	10 years	2 to 4 years’ service; Description (h)
	2025/8/21	54,000	10 years	2 to 4 years’ service; Description (h)
	2025/11/6	9,000	10 years	2 to 4 years’ service; Description (h)

Description:

(a) Vested immediately.

(b) 25% of options are vested after the employee renders one-year service, then one of forty-eighth options are vested every month.

(d) Vested one-sixth options every month based on straight-line method.

(e) Vested one-twelfth options every month based on straight-line method.

(f) Vested one-third options every month based on straight-line method.

(g) Vested one of forty-eighth options every month based on straight-line method.

~33~

(h) 50% of options are vested at the date that the option holder had two-year service, and the option holder is subsequently granted 25% (1/4) every year.

The above share-based payment arrangements above are settled by equity.

B. Details of the share-based payment arrangements are as follows:

	2025
	No. of options	Weighted-average exercise price (in dollars)
Options outstanding at January 1	1,060,880	$ 40.00
Options granted	341,000	21.72
Options forfeited	( 252,800)	34.76
Options exercised	( 23,500)	8.40
Options outstanding at December 31	1,125,580	36.27
Options exercisable at December 31	574,455	49.81
	2024
	No. of options	Weighted-average exercise price (in dollars)
Options outstanding at January 1	1,405,889	$ 41.88
Options granted	201,000	21.75
Options forfeited	( 526,800)	34.52
Options exercised	( 19,209)	4.31
Options outstanding at December 31	1,060,880	40.00
Options exercisable at December 31	654,177	48.19

(Note) The employee stock options issued by the Group cannot be transferred during the vesting period. On November 15, 2016, the Group issued new shares through the transfer of capital surplus and each share of common stock had been distributed an additional 0.4 share of common stock, and the exercise price of the outstanding employee stock options which were not exercised before November 15, 2016 had been adjusted accordingly.

C. As of December 31, 2025 and 2024, the ranges of exercise prices of stock options outstanding were $12.46~$92.30 (in dollars) and $12.85~$92.30 (in dollars), respectively; the weighted-average remaining contractual periods were 5.71 years and 5.43 years, respectively.

D. Aside from restricted stocks to employees, the fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement	Grant date	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Fair value per unit (in dollars)
Employee share options	2016/02/29	US$0.36	US$0.4	47.01%	1.15 years	0%	0.61%	US$0.08
Employee share options	2016/06/08	US$0.36	US$0.4	47.01%	1.15 years	0%	0.61%	US$0.08
Employee share options	2018/07/02	40.78	35.50	43.63%	6.37 years	0%	2.80%	$ 19.17
Employee share options	2018/09/28	40.40	35.50	40.98%	6.38 years	0%	2.99%	$ 20.50
Employee share options	2018/12/11	37.64	33.40	43.85%	6.38 years	0%	2.79%	$ 17.67
Employee share options	2019/04/11	44.98	38.50	41.73%	6.38 years	0%	2.37%	$ 20.51
Employee share options	2020/07/21	98.30	92.30	57.87%	6.37 years	0%	0.39%	$ 53.14
Employee share options	2021/01/05	57.20	53.70	59.97%	6.37 years	0%	0.57%	$ 31.97
Employee share options	2021/03/18	48.45	46.80	60.02%	6.37 years	0%	1.20%	$ 27.23
Employee share options	2021/05/14	50.00	46.90	59.91%	6.37 years	0%	1.14%	$ 28.33
Employee share options	2021/09/06	37.85	35.50	58.86%	6.37 years	0%	0.99%	$ 21.07
Employee share options	2021/11/08	31.90	29.90	58.31%	6.37 years	0%	1.30%	$ 17.77
Employee share options	2022/03/23	33.15	31.10	58.98%	6.38 years	0%	2.36%	$ 19.15
Employee share options	2022/05/10	35.40	33.20	60.09%	6.50 years	0%	3.02%	$ 21.21
Employee share options	2022/08/26	31.65	29.70	59.63%	6.50 years	0%	3.16%	$ 18.93
Employee share options	2023/03/13	28.60	26.80	58.17%	6.50 years	0%	3.66%	$ 17.03
Employee share options	2023/05/12	27.00	25.30	57.49%	6.50 years	0%	3.45%	$ 15.86
Employee share options	2023/11/08	21.85	20.50	55.76%	6.50 years	0%	4.53%	$ 12.93
Employee share options	2024/03/07	22.60	21.20	55.77%	6.50 years	0%	4.08%	$ 13.22
Employee share options	2024/05/10	20.05	18.80	55.08%	6.50 years	0%	4.51%	$ 11.77
Employee share options	2024/08/22	22.35	22.35	56.60%	6.50 years	0%	3.75%	$ 13.09
Employee share options	2024/11/11	23.20	23.20	56.90%	6.50 years	0%	4.23%	$ 13.80
Employee share options	2025/3/13	22.35	22.35	56.53%	6.50 years	0%	4.11%	$ 13.09
Employee share options	2025/5/8	19.20	19.20	56.81%	6.37 years	0%	4.12%	$ 11.28
Employee share options	2025/8/21	19.35	19.35	56.65%	6.37 years	0%	4.00%	$ 11.32
Employee share options	2025/11/6	22.70	22.70	56.30%	6.37 years	0%	3.81%	$ 13.16

E. Expenses incurred on share-based payment transactions are shown below:

	Year ended December 31, 2025	Year ended December 31, 2024
Equity-settled	$ 2,344	($ 2,524)

(11) Pensions

Defined contribution plan

A. The Company’s subsidiary, Applied BioCode, Inc., provides a 401(K) retirement plan, which is a defined contribution plan. Under the plan, the employees contribute an amount based on a certain percentage of the employees’ salaries and wages to the employees’ individual pension accounts, and Applied BioCode, Inc. also contributes an amount as pension expense to the employees’ individual pension accounts accordingly. For the years ended December 31, 2025 and 2024, the pension contributed to the employees’ individual pension accounts by Applied BioCode, Inc. amounted to $7,314 and $7,468, respectively.

B. The Company’s subsidiary, Applied BioCode Taiwan Ltd., has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the subsidiary contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. For the years ended December 31, 2025 and 2024, the Group recognised pension cost of $896 and $872, respectively.

(12) Share capital

A. As of December 31, 2025, the Company’s authorised capital was $1,500,000, consisting of 150,000 thousand shares, and the paid-in capital was $1,028,111 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

B. On March 7, 2024, the Company’s Board of Directors resolved to raise additional cash by issuing new shares amounting to 21,000 thousand shares with a par value of NT$10 (in dollars). The subscription price was NT$21 (in dollars) per share and proceeds from the capital increase amounted to $441,000. The effective date for the cash capital increase was set on July 31, 2024. All proceeds from the capital increase have been collected, and the registration of paid-in capital was completed.

~36~

C. Movements in the number of the Company’s common shares outstanding are as follows:

	2025	2024
	No. of shares (in thousands)	No. of shares (in thousands)
At January 1	102,787	81,768
Cash capital increase	-	21,000
Employee stock options exercised	24	19
At December 31	102,811	102,787

(13) Capital surplus

Pursuant to the Company’s Articles of Incorporation, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership.

	2025
	Share premium	Employee restricted shares	Employee stock options	Total
At January 1	$ 237,363	$ 14,419	$ 20,494	$ 272,276
Compensation cost of employee stock options	-	-	2,639	2,639
Options forfeited	-	-	( 295)	( 295)
Employee stock options exercised	6	-	( 43)	( 37)
Options expired	4,243	-	( 4,243)	-
Capital surplus used to cover accumulated deficits	( 237,364)	-	-	( 237,364)
At December 31	$ 4,248	$ 14,419	$ 18,552	$ 37,219
	2024
---	---	---	---	---
	Share premium	Employee restricted shares	Employee stock options	Total
At January 1	$ 3,324	$ 14,419	$ 26,066	$ 43,809
Cash capital increase	231,000	-	-	231,000
Compensation cost of employee stock options	-	-	2,481	2,481
Options forfeited	-	-	( 5,005)	( 5,005)
Employee stock options exercised	14	-	( 23)	( 9)
Options expired	3,025	-	( 3,025)	-
At December 31	$ 237,363	$ 14,419	$ 20,494	$ 272,276

(14) Retained earnings/Accumulated deficit

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve, and setting aside special reserve in accordance with related laws or a resolution made by the Board of Directors. The remainder, if any, shall set aside no more than 12% as employee’s compensation, and no more than 3% as directors’ remuneration. The remainder, if any, to be retained or to be appropriated shall be resolved by the shareholders. The dividend distribution amount shall not be less than 10% of the remaining distributable amount. The Company’s dividends may be paid in cash or shares.

B. In determining the Company’s dividend policy, the Board recognises that the Company is in the growth stage. In determining the amount, if any, of the dividend or other distribution it recommends to Board members for approval in any financial year, the Board may take into consideration the earnings of the Company, overall development, financial planning, capital needs, industry outlook and future prospects of the Company in the relevant financial year.

C. Legal reserve shall be used to cover the Company’s accumulated deficit or issue new shares or cash to shareholders in proportion to their share ownership.

(15) Other equity

	2025
	Foreign currency translation	Unearned employees’ compensation	Total
At January 1	$ 32,881	($ 232)	$ 32,649
Group foreign currency translation	( 36,957)	-	( 36,957)
At December 31	($ 4,076)	($ 232)	($ 4,308)
	2024
	Foreign currency translation	Unearned employees’ compensation	Total
At January 1	($ 7,107)	($ 232)	($ 7,339)
Group foreign currency translation	39,988	-	39,988
At December 31	$ 32,881	($ 232)	$ 32,649

(16) Operating revenue

A. Disaggregation of revenue from contracts with customers

	Year ended December 31, 2025	Year ended December 31, 2024
Timing of revenue recognition
At a point in time
Sales revenue	$ 382,780	$ 285,592
Rental revenue	30,336	11,768
Licensing revenue	10,866	10,067
Other operating revenue	50,346	34,499
	474,328	341,926
Over time
Licensing revenue	872	1,140
	$ 475,200	$ 343,066

B. Contract liabilities

(a) The Group has recognised the following revenue-related contract liabilities:

	December 31, 2025	December 31, 2024	January 1, 2024
Current contract liabilities:
Product selling	$ 41,903	$ 53,676	$ 42,158
Technology licensing	880	918	1,091
	$ 42,783	$ 54,594	$ 43,249
Non-current contract liabilities:
Product selling	$ 199,961	$ 198,662	$ 205,148
Technology licensing	1,234	2,205	2,928
	$ 201,195	$ 200,867	$ 208,076

(b) Revenue recognised that was included in the contract liability balance at the beginning of the year is as follows:

	Year ended December 31, 2025	Year ended December 31, 2024
Revenue from contracts with customers :
Revenue from technology licensing	$ 872	$ 1,140
Sales revenue	134	43,325
	$ 1,006	$ 44,465

C. Unfulfilled contracts

The total transaction price allocated to the unfulfilled performance obligation was $243,978 as of December 31, 2025. The Group expected to recognise the revenue gradually based on the sales volume and contract agreement before December 31, 2036.

~39~

(17) Interest income

	Year ended December 31, 2025	Year ended December 31, 2024
Interest income from bank deposits	$ 22,941	$ 27,629

(18) Other gains and losses

	Year ended December 31, 2025	Year ended December 31, 2024
Compensation losses	-	( 6,884)
Foreign exchange losses	706	( 2,346)
Other gains	152	159
	$ 858	($ 9,071)

(19) Finance costs

	Year ended December 31, 2025	Year ended December 31, 2024
Interest expense from lease liabilities	$ 1,587	$ 1,427

(20) Expenses by nature

	Year ended December 31, 2025
	Operating costs	Operating expenses	Total
Raw materials and supplies and manufacturing cost	$ 131,420	$ -	$ 131,420
Employee benefit expense	$ 65,185	$ 266,699	$ 331,884
Depreciation charges	$ 17,702	$ 37,047	$ 54,749
Amortisation charges	$ -	$ 1,629	$ 1,629

(21) Employee benefit expense

	Operating costs	Operating expenses	Total
Wages and salaries	$ 62,048	$ 244,201	$ 306,249
Labour and health insurance fees	1,701	12,728	14,429
Pension costs	1,436	6,774	8,210
Employee stock options	-	2,344	2,344
Other personnel expenses	-	652	652
	$ 65,185	$ 266,699	$ 331,884

(22) Income taxes

	Year ended December 31, 2024
	Year ended December 31, 2025
	Year ended December 31, 2025
	Year ended December 31, 2025
	Year ended December 31, 2025

A. Components of income tax expense:

	Year ended December 31, 2025	Year ended December 31, 2024
Current tax:
Current tax on profits for the year	$ 79	$ 26
Income tax expense	$ 79	$ 26

B. Reconciliation between income tax expense and accounting (loss) profit

	Year ended December 31, 2025		Year ended December 31, 2024
Tax calculated based on loss before tax and statutory tax rate	($	56,303)	($	72,672)
Expenses disallowed by tax regulation		356		536
Temporary differences not recognised as deferred tax assets		-		27,222
Taxable loss not recognised as deferred tax assets		69,168		45,570
Change in assessment of realisation of deferred tax assets	(	12,626)		-
Effect from Alternative Minimum Tax		79		26
Permanent differences		634		402
Effect of different tax rates in countries in which the Group operates	(	1,229)	(	1,058)
Income tax expense	$	79	$	26

C. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

	2025
	January 1	Recognised in profit or loss	Translation differences	December 31
Deferred tax assets:
Tax losses	$ 3,109	$ 2,403	($ 2,530)	$ 2,982
Deferred tax liabilities:
Book-tax difference on intangible assets	($ 3,109)	($ 517)	$ 644	($ 2,982)
Book-tax difference on right-of-use assets	-	( 1,886)	1,886	-
	($ 3,109)	($ 2,403)	$ 2,530	($ 2,982)
	$ -	$ -	$ -	$ -
	2024
	January 1	Recognised in profit or loss	Translation differences	December 31
Deferred tax assets:
Tax losses	$ 4,499	$ 309	($ 1,699)	$ 3,109
Deferred tax liabilities:
Book-tax difference on intangible assets	($ 3,323)	$ 272	($ 58)	($ 3,109)
Book-tax difference on right-of-use assets	( 1,176)	( 581)	1,757	-
	($ 4,499)	($ 309)	$ 1,699	($ 3,109)
	$ -	$ -	$ -	$ -

D. Details of the amount the Group is entitled as investment tax credit and unrecognised deferred tax assets are as follows:

December 31, 2025
Qualifying items	Unused tax credits	Unrecognised deferred tax assets	Expiry year
General Business Credits—Federal tax	$ 38,003	$ 38,003	2029~2042
December 31, 2024
Qualifying items	Unused tax credits	Unrecognised deferred tax assets	Expiry year
General Business Credits—Federal tax	$ 39,627	$ 39,627	2029~2042

E. Expiration years of unused loss carryforward and amounts of unrecognised deferred tax assets are as follows:

U.S. Federal tax

December 31, 2025
Year incurred	Amount filed / assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2015~2025	$ 2,029,799	$ 2,029,799	$ 2,029,799	2035~No deduction limitation

California State tax

December 31, 2025
Year incurred	Amount filed / assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2012~2025	$ 2,194,813	$ 2,194,813	$ 2,194,813	2032~2045

U.S. Federal tax

December 31, 2024
Year incurred	Amount filed / assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2015-2024	$ 1,837,387	$ 1,837,387	$ 1,837,387	2035-No deduction limitation

California State tax

December 31, 2024
Year incurred	Amount filed / assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2012-2024	$ 2,001,989	$ 2,001,989	$ 2,001,989	2032-2044

F. The amounts of deductible temporary differences that were not recognised as deferred tax assets are as follows:

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 488,504	$ 502,906

G. The income tax returns of the Group's Taiwan second-tier subsidiary through 2023 have been assessed and approved by the Tax Authority.

(23) Loss per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Loss per share (in dollars)
Basic (diluted) loss per share
Loss attributable to ordinary shareholders of the Company	($ 201,200)	102,799	($ 1.96)
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Loss per share (in dollars)
Basic (diluted) loss per share
Loss attributable to ordinary shareholders of the Company	($ 260,807)	90,615	($ 2.88)

Note: Outstanding options and warrants as of December 31, 2025 and 2024 have an anti-dilutive effect; therefore, options and warrants were excluded from diluted loss per share calculation.

(24) Supplemental cash flow information

Investing activities with partial cash payments:

	Year ended December 31, 2025	Year ended December 31, 2024
Purchase of property, plant and equipment	$ 8,819	$ 5,344
Add: Opening balance of payables for equipment	-	2,035
Cash paid during the year	$ 8,819	$ 7,379

(25) Changes in liabilities from financing activities

Lease Liability:

	2025	2024
At January 1	$ 19,524	$ 34,431
Changes in cash flow from financing activities	( 19,009)	( 16,785)
Payment of interest expenses	( 1,587)	( 1,427)
Amortisation of interest expenses	1,587	1,427
Increase in lease principal	65,251	-
Changes in other non-cash items	( 5,793)	-
Net foreign exchange differences	( 414)	1,878
At December 31	$ 59,559	$ 19,524

RELATED PARTY TRANSACTIONS

Key management compensation

Salaries and short-term employee benefits
Share-based payment

Year ended December 31, 2025	Year ended December 31, 2024
$ 66,410	$ 93,643
531	( 3,524)
$ 66,941	$ 90,119

Pledged Assets

The Group's assets pledged as collateral are as follows:

Pledged asset	Book value	Book value	Purpose
	December 31, 2025	December 31, 2024
Restricted asset (Note)	$ 6,422	$ 6,697	Performance guarantee
(shown as ‘other non-current assets’)

Note: The Company's US subsidiary, Applied BioCode Inc., entered into a lease agreement for the new plant and office on March 21, 2019. In accordance with the lease agreement, the US subsidiary paid guarantee deposits of $6,422 (shown as ‘other non-current assets’) to CTBC Bank Corp. (USA) and CTBC Bank Corp. (USA) issued a standby letter of credit to the lessor as a performance guarantee. As of December 31, 2025 and 2024, the balance of standby letter of credit amounted to US$204 for both, respectively.

Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

None.

(2) Commitments

None.

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

None

Others

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortised cost
Cash and cash equivalents	$ 464,786	$ 605,958
Financial assets at amortised cost	104,802	251,529
Accounts receivable	121,982	45,018
Guarantee deposits paid
(shown as ‘other non-current assets’)	6,647	6,922
	$ 698,217	$ 909,427
Financial liabilities
Financial liabilities at amortised cost
Accounts payable	$ 15,682	$ 6,442
Other accounts payable	47,265	51,527
	$ 62,947	$ 57,969
Lease Liability	$ 59,559	$ 19,524

B. Financial risk management policies

(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk), credit risk and liquidity risk. The Group’s overall risk management policies focuses on the unpredictable events in the financial market and seeks to reduce the potential adverse effects on the Group’s financial position and financial performance.

(b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by management. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and NTD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities and net investments in foreign operations.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

ii. According to the Group’s credit policy, the Group is responsible for managing and analysing the credit risk for clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by management. The utilisation of credit limits is regularly monitored.

iii. The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 360 days.

~47~

iv. The Group adopts following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v. The Group classifies customers' accounts receivable in accordance with credit rating of customer and historical default. The Group applies the modified approach based on the loss rate methodology to estimate expect credit loss.

vi. The Group used the forecast ability to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2025 and 2024, the loss rate methodology is as follows:

	Not past due	Up to 90 days		91 to 180 days		Over 360 days
		past due	past due	past due	past due	past due	Total
December 31, 2025
Expected loss rate	0%	0%	0%	50%	100%
Total book value	$ 83,976	$ 37,626	$ -	$ 760	$ 4,848	$ 127,210
Loss allowance	$ -	$ -	$ -	$ 380	$ 4,848	$ 5,228
December 31, 2024
Expected loss rate	0%	0%	5%	50%	100%
Total book value	$ 25,493	$ 19,388	$ 144	$ -	$ 4,906	$ 49,931
Loss allowance	$ -	$ -	$ 7	$ -	$ 4,906	$ 4,913

vii. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

	2025	2024
	Accounts receivable	Accounts receivable
At January 1	$ 4,913	$ 4,374
Provision for impairment	511	243
Net exchange differences	( 196)	296
At December 31	$ 5,228	$ 4,913

For provisioned loss in 2025 and 2024, the impairment losses arising from customers' contracts are $511 and $243, respectively.

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities

December 31, 2025	Less than 3 months	Between 3 months and 1 year	Between 1 and 2 years	Between 2 and 5 years	Total
Accounts payable	$ 15,682	$ -	$ -	$ -	$ 15,682
Other payables	47,265	-	-	-	47,265
Lease liability	5,657	17,142	23,489	19,925	66,213
Total	$ 68,604	$ 17,142	$ 23,489	$ 19,925	$ 129,160
December 31, 2024	Less than 3 months	Between 3 months and 1 year	Between 1 and 2 years	Between 2 and 5 years	Total
---	---	---	---	---	---
Accounts payable	$ 6,442	$ -	$ -	$ -	$ 6,442
Other payables	51,527	-	-	-	51,527
Lease liability	4,688	14,040	2,053	412	21,193
Total	$ 62,657	$ 14,040	$ 2,053	$ 412	$ 79,162

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates, and joint ventures): None.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
F. Significant inter-company transactions during the reporting period: None.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 1.

(3) Information on investments in Mainland China

None.

14. Segment Information

(1) General information

The core business of the Group is the research and development of multiplexing testing platform technologies, as well as the development, production, sales and authorization of Barcoded Magnetic Beads, optical scanner and reagents, etc. The Group operates business only in a single industry. The

Board of Directors who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

(2) Measurement of segment information

The accounting policies of the Group’s operating segment are the same as the summary description of the significant accounting policies described in the notes to the consolidated financial statements. The profit and loss of the operating segment is measured by the after-tax profit and loss and used as the basis for evaluating the performance of the operating segment.

(3) Information about segment profit or loss

The Group is a single reportable segment, and therefore, the reportable information is the same as the financial statements.

(4) Reconciliation for segment income (loss)

The segment’s net operating loss reported by the Group to the chief operating decision-maker is measured in a manner consistent with the revenue and expense in the consolidated income statement. Therefore, the reconciliation for the net operating loss is the same as the consolidated statement of comprehensive income.

(5) Information on products and services

	Year ended December 31, 2025	Year ended December 31, 2024
Sales revenue	$ 382,780	$ 285,592
Rental revenue	30,336	11,768
Licensing revenue	11,738	11,207
Other operating revenue	50,346	34,499
	$ 475,200	$ 343,066

(6) Geographical information

The Group’s geographical revenue is classified based on the geographic location of customers, while geographical non-current assets are classified based on the geographic location of assets. The geographical information for 2025 and 2024 is as follows:

~50~

	Year ended December 31, 2025		Year ended December 31, 2024
	Revenue	Non-current assets	Revenue	Non-current assets
USA	$ 433,785	$ 147,691	$ 286,001	$ 106,558
China	41,415	-	57,055	-
Taiwan	-	3,570	10	950
Others	-	-	-	-
Total	$ 475,200	$ 151,261	$ 343,066	$ 107,508

(7) Major customer information

	Year ended December 31, 2025	Year ended December 31, 2024
	Revenue	Revenue
I Company	$ 166,969	$ 122,858
Q Company	71,766	79,616
S Company	50,886	-
Z Company	41,297	56,803

Applied BioCode Corporation and Subsidiaries

Information on investees

Year ended December 31, 2025

Table 1
Expressed in thousands of NTD
(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Applied BioCode, Corporation	Applied BioCode, Inc.	USA	Barcoded Magnetic Beads of multiplex in-vitro diagnostics, platform technology of assays and instruments and research and development, production, sales and leasing.	$ 2,254,037	$ 1,980,941	50,140	100%	$ 442,760	($ 187,824)	($ 187,824)	Subsidiary
Applied BioCode, Inc.	Applied BioCode Taiwan Ltd.	Taiwan	Barcoded Magnetic Beads of multiplex in-vitro diagnostics, platform technology of assays and instruments and research and development, production and sales of products.	$ 103,000	$ 103,000	10,300	100%	$ 72,748	$ 15,388	$ 15,388	Second-tier subsidiary

AI assistant

Applied BioCode Audit Report / Information 2025

52593_rns_2026-05-20_9b06bc72-0960-4b44-b0cd-7f84ba1342ad.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for opinion

Key audit matters

Existence and occurrence of cash and cash equivalents

Description

How our audit addressed the matter

Existence of sales revenues

Description

How our audit addressed the matter

Responsibilities of management and those charged with governance for the consolidated financial statements

APPLIED BIOCODE CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

1. History and Organization

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

3. Application of New Standards, Amendments and Interpretations

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Financial assets at amortised cost

(3) Accounts receivable

(4) Inventories

13. Supplementary Disclosures

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

14. Segment Information

(1) General information

(2) Measurement of segment information

(3) Information about segment profit or loss

(4) Reconciliation for segment income (loss)

(5) Information on products and services

(6) Geographical information

AI assistant

Applied BioCode — Audit Report / Information 2025

52593_rns_2026-05-20_9b06bc72-0960-4b44-b0cd-7f84ba1342ad.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for opinion

Key audit matters

Existence and occurrence of cash and cash equivalents

Description

How our audit addressed the matter

Existence of sales revenues

Description

How our audit addressed the matter

Responsibilities of management and those charged with governance for the consolidated financial statements

APPLIED BIOCODE CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

1. History and Organization

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

3. Application of New Standards, Amendments and Interpretations

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Financial assets at amortised cost

(3) Accounts receivable

(4) Inventories

13. Supplementary Disclosures

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

14. Segment Information

(1) General information

(2) Measurement of segment information

(3) Information about segment profit or loss

(4) Reconciliation for segment income (loss)

(5) Information on products and services

(6) Geographical information

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Applied BioCode Audit Report / Information 2025