REMSENSE TECHNOLOGIES LIMITED

==> picture [270 x 62] intentionally omitted <==

ANNUAL FINANCIAL REPORT

FOR THE FINANCIAL YEAR ENDED 30 June 2025

ABN 50 648 834 771

RemSense Technologies Limited

Page

Operating and Financial Review................................................................................................................................................................1 Directors’ Report ................................................................................................................................................................................................ 8 Auditor’s Independence Declaration .................................................................................................................................................. 26 Consolidated Statement of Profit or Loss and Other Comprehensive Income ...................................................... 28 Consolidated Statement of Financial Position ............................................................................................................................. 29 Consolidated Statement of Changes in Equity ............................................................................................................................. 31 Consolidated Statement of Cash Flows ............................................................................................................................................ 33 Notes to the Consolidated Financial Report ..................................................................................................................................34 Consolidated Entity Disclosure Statement ..................................................................................................................................... 79 Directors’ Declaration .................................................................................................................................................................................. 80 Independent Auditor’s Report ................................................................................................................................................................. 81 Securities Exchange Information .......................................................................................................................................................... 85 Corporate Directory ....................................................................................................................................................................................... 89

Operating and Financial Review For the year ended 30 June 2025

RemSense Technologies Limited

OPERATING AND FINANCIAL REVIEW

REVIEW OF OPERATIONS

Business Overview

RemSense Technologies Limited (ASX: REM) strengthened its position in FY2025 as a leader in industrial digital transformation. Central to its operations is virtualplant, a high-resolution 3D photogrammetry asset visualisation platform that integrates with asset management systems to improve safety, reduce costs, and enhance productivity. The year was marked by disciplined execution, sustainable growth, and expanded adoption of virtualplant across energy, resources, and industrial sectors.

Financial and Operational Performance

FY2025 marked a year of significant operational progress for RemSense.

Revenue more than doubled to $3,435,517 (up 107% from $1,663,375 in FY2024), driven by expanded adoption of virtualplant, scanning services and subscriptions.
Gross margins improved to 71.9% (FY2024: 64.0%), reflecting cost discipline and efficiency gains.
While the Group recorded a net loss of $799,782, this represented a 67% improvement compared to FY2024 (loss of $2,306,165).
Importantly, RemSense delivered positive operating cashflows of $375,599 for the year, supported by customer receipts of $3,476,441. The balance sheet closed stronger with $368,315 in cash and net assets of $1,107,142.

REM utilises ‘underlying cash EBITDA’ which is a non-IFRS measure that is unaudited but derived from the audited financial statements, to assess the performance of its operations excluding significant noncash items.

		2025
		$
	Loss before income tax	(799,782)
	Add backs:
	Depreciation	66,297
	Amortisation	310,919
	Amortisation – right of use assets	94,212
	Finance expenses	16,040
	Finance income	3,784
	Earnings before interest, tax, depreciation & amortisation (EBITDA)	(308,530)
	Underlying adjustments:
	Share-based payment expense	879,914
	Underlying cash earnings before interest, tax, depreciation & amortisation(EBITDA)	571,384

Underlying cash EBITDA was $571,384, reflecting disciplined cost control. Positive operating cashflows were achieved in Q2 and Q3, supported by rising receipts and demand from Tier 1 clients. The Company exits FY2025 with a high-value sales pipeline under advanced negotiation.

Page | 1

Operating and Financial Review

RemSense Technologies Limited

For the year ended 30 June 2025

Project Delivery

During FY2025, RemSense delivered projects of increasing scale and complexity:

High-resolution photogrammetry and LiDAR scanning for LNG facilities in northwest Australia and Chevron’s deepwater U.S. Gulf of Mexico assets.
Renewal of Newmont’s virtualplant subscription at Boddington and re-opened discussions on global rollout.
Renewal of Woodside Energy and Triangle Energy subscriptions.
Partnership with Sentient Computing to deliver an immersive 3D training solution for an LNG processing module.
Multiple Remotely Piloted Aircraft System (RPAS) projects including water sampling, traffic monitoring, urban building inspections, and environmental surveys for Tier 1 mining companies.

Strategic Partnerships and Market Expansion

RemSense deepened and broadened its global partnerships:

Advanced discussions with Chevron on deploying virtualplant as a global inspection portal.
Expansion of opportunities with a major Oil&Gas producer in digital twin integration, commissioning and inspection.
Renewed engagement with Newmont, including proposals for African operations.
Progressed re-engagement with the Defence sector through DISP membership pathway and secured BARS certification.
Expanded international footprint into South Asia and North America including a establishing a partnership with a West African photogrammetry and drone-services provider.

Technology and Product Development

The Company continued to invest in enhancing virtualplant:

Upgrades to our AI-driven Asset Audit application for automated, geolocated asset identification.
Improved coordinate transformation, geolocation accuracy, and role-based access security for enterprise clients.
Development of data sovereignty and cybersecurity frameworks, with progress toward ISO 27001 compliance.
RPAS innovations including deep-water sampling payloads capable of operations to 200 metres.

Governance, People, and Safety

FY2025 governance and leadership enhancements included:

Recertification under ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.
Achieved Basic Aviation Risk Standard (BARS) certification.
Appointment of Leon Morgan as Commercial Director, strengthening sales leadership.
Promotion of Rory O’Connor to Chief Technical Officer (CTO), recognising his long-standing technical contribution.

Page | 2

Operating and Financial Review

RemSense Technologies Limited

For the year ended 30 June 2025

Outlook for FY2026

RemSense enters FY2026 with momentum and a strong foundation. Key drivers include:

Expansion of virtualplant adoption across Oil & Gas and mining sectors.
Potential global deployment of virtualplant with Chevron.
Renewed growth opportunities in Defence, infrastructure decommissioning, and industrial diversification.
Sustained recurring revenue from subscription renewals.
Continued innovation in AI-driven asset audit, cybersecurity, and compliance frameworks.

The Board remains confident that RemSense’s technology, partnerships, and disciplined execution provide a robust platform for sustained growth, margin expansion, and long-term shareholder value.

FINANCIAL RESULTS AND CONDITION

Financial Performance

RemSense Technologies Limited reported revenue of $3,435,517 for the year ended 30 June 2025, representing a 107% increase on the prior year $1,663,375. Growth was driven by the expansion of virtualplant scanning services and subscription revenues.

The Company achieved an underlying cash EBITDA of approximately $571,384, reflecting disciplined execution and improved operating leverage. While a net loss after tax of $799,782 was recorded, this represented a significant improvement on FY2024 (loss of $2,306,165), a 67% reduction in losses.

Gross margins improved to 71.9%, up from 64.0% in FY2024, supported by cost management initiatives, efficiency gains, and higher-value project delivery.

Cash Flow

Operating cash flows were positive at $375,599, compared to a $1,356,087 outflow in FY2024. Customer receipts strengthened throughout the year. Cash at 30 June 2025 was $368,315, up from $325,650 at the prior year-end.

Balance Sheet and Capital Management

Total assets increased to $2,239,883 (FY2024: $2,116,733), driven by investment in intangible assets and right-of-use assets. Net assets closed at $1,107,142, compared to $991,745 in FY2024.

Equity increased slightly to $8,890,197 issued capital mainly driven by options converted during the year. Increase in reserves are attributed to the valuation of options issued during the year.

Subsequent to year end, RemSense completed a $750,600 capital raising, providing additional funding for accelerating development, cybersecurity initiatives and working capital support and continues to maintain prudent financial discipline.

Overall Condition

FY2025 demonstrated a marked improvement in RemSense’s financial condition.

Key highlights include:

Doubling of revenue with diversified contributions from scanning services and recurring subscriptions.
A material improvement in gross margins and cost discipline.
Positive operating cashflow achieved for the first time in consecutive quarters.

Page | 3

Operating and Financial Review For the year ended 30 June 2025

RemSense Technologies Limited

Strengthened balance sheet with growing net assets.
Improved loss profile, positioning the Company closer to profitability.

The Board considers the Company to be in a stronger financial position entering FY2026, supported by recurring revenues, a robust sales pipeline, and continued access to capital markets if required.

BUSINESS STRATEGIES AND PROSPECTS

RemSense Technologies Limited remains focused on establishing virtualplant as a leading global platform for high-resolution digital asset visualisation. The Company’s strategy centres on:

Expansion of recurring revenues through subscription renewals and enterprise-wide adoption of virtualplant .
Deepening strategic partnerships with Tier 1 energy, resources, and industrial clients, including Chevron, Woodside, Newmont, and Shell.
Diversification into adjacent industries , including defence, data centres, infrastructure decommissioning, and environmental management.
Investment in innovation across AI-driven asset audit, cybersecurity frameworks, and compliance capabilities to maintain competitive advantage.
Scalable international growth , leveraging partnerships, reseller networks, and local alliances in North America, Asia, Africa, and the Middle East.

Growth Opportunities

The Company enters FY2026 with a robust sales pipeline and several high-value opportunities at advanced negotiation stage:

Chevron Global Inspection Portal – discussions are progressing on deploying virtualplant as a standardised inspection solution across Chevron’s global operations.
Newmont Mining Expansion – following the renewal of the Boddington subscription, proposals have been submitted for the application of virtualplant in African operations, highlighting the scalability of the platform.
Defence Sector Engagement – RemSense is advancing its alignment with the Defence Industry Security Program (DISP), enabling participation in secure projects. Pilot applications of virtualplant are being scoped for secure site inspections and virtual access to critical defence infrastructure.
Infrastructure Decommissioning – opportunities exist to leverage advanced imagery technology in large-scale, complex facility decommissioning and demolition, where safety, efficiency, and accuracy are critical.
Environmental and Sustainability Applications – RPAS innovations, including deep-water sampling tools and drone-enabled environmental surveys, create potential for new contracts in compliance monitoring and sustainability reporting.

Page | 4

Operating and Financial Review For the year ended 30 June 2025

RemSense Technologies Limited

Competitive Positioning

RemSense’s competitive strength lies in the combination of its:

Proven ability to deliver high-fidelity photogrammetry and LiDAR scanning at scale.
Proprietary AI-driven Asset Audit capability, providing actionable insights from high-resolution imagery.
Demonstrated integration with enterprise asset management systems such as SAP and IBM Maximo.
Strong safety credentials, including ISO recertifications and BARS aviation safety accreditation, which are prerequisites for resource sector clients.

These advantages reinforce RemSense’s positioning as a trusted provider of mission-critical digital transformation solutions for complex, high-risk industries.

Outlook

The Company’s strategies are designed to deliver:

Sustainable revenue growth through increased adoption of virtualplant .
Expansion of international recurring revenues from Tier 1 clients.
Entry into new high-value markets such as defence and infrastructure.
Ongoing margin expansion through efficiency, innovation, and scale.

With strong momentum, disciplined financial management, and a pipeline of transformative opportunities, RemSense is well positioned to deliver long-term growth and enhanced shareholder value in FY2026 and beyond.

BOARD AND MANAGEMENT CHANGES

No changes

Page | 5

Operating and Financial Review For the year ended 30 June 2025

RemSense Technologies Limited

MATERIAL BUSINESS RISKS

The key risk factors affecting the Company are set out below.

Technological obsolescence

Rapid technological advancements may render current products or technologies obsolete, necessitating continuous innovation and investment in research and development (R&D). Our development processes which centres on continuous innovation include constantly assessing potential vulnerabilities, prioritising items for correction, and through customer collaboration, regular enhancements help us protect against degradation to our software.

Sales and Customer Retention

Sales and customer retention are critical areas that can significantly impact its financial performance. Not meeting evolving customer needs or industry trends, risks losing customers to more adaptable competitors. A high pace of innovation needs to be maintained to avoid falling behind competitors in terms of technological advancement or failing to offer new, in-demand features can lead to loss of sales.

Intellectual property (IP) risks

The potential for IP theft, patent infringement, or challenges in securing patents for new technologies. Loss of IP could erode competitive advantage. We have implemented several legal measures, such as non-disclosure agreements, customer terms and condition agreements, software licensing, and employment agreements, to ensure that any confidential information is kept secure. Additionally, we take great care to ensure that certain details of our data and code remain undisclosed in public scenarios.

Regulatory and compliance risks

Changes in regulations, particularly to data privacy, cybersecurity, and product safety, may impact product development or market entry. We regularly monitor regulatory changes, engage with legal counsel, ensuring compliance with all relevant laws and standards.

Market acceptance and adoption

New technologies may face challenges in market acceptance, either due to consumer resistance, lack of awareness, or competition from established solutions. We have robust marketing strategies, customer education, and user-friendly design to encourage adoption, alongside customer feedback loops to refine offerings.

Cybersecurity

The increasing prevalence of cyberattacks poses a threat to data security, intellectual property, and overall business operations. RemSense has implemented strong cybersecurity measures, regular audits, and staff training to prevent breaches, as well as contingency planning for incident response.

Technology development often requires significant capital investment, and fluctuations in cash flow can impede progress. Challenges in securing funding or managing burn rate may arise. RemSense utilises diverse funding sources, maintaining a prudent financial management approach, and aligning spending with project milestones.

Supply chain and operational risks

Disruptions in the supply chain, including shortages of key components or delays in production, can impact the development and delivery of products. We have built strong relationships with suppliers, diversifying our supply sources.

Page | 6

Operating and Financial Review For the year ended 30 June 2025

RemSense Technologies Limited

MATERIAL BUSINESS RISKS (continued)

Key Personnel

RemSense has several key management personnel including subject matter experts in the target field. The ability to attract and retain top talent, especially in highly competitive tech fields, is crucial. A shortage of skilled professionals could slow innovation and product development. Risk mitigation measures include offering competitive remuneration packages with short, and long-term incentives, fostering a positive company culture, and investing in employee development programs.

Competition

Risk of intense competition from established players or emerging start-ups may erode market share and put pressure on margins. We are continuously innovating and focusing on unique value propositions and maintaining strong customer relationships to differentiate the Group from competitors.

Global economic conditions

Economic downturns, fluctuations in currency exchange rates, or geopolitical instability can affect global demand for technology products and services, or delay mobilisation.

Litigation risk

There is a risk that RemSense may be exposed to legal actions, including product liability claims, especially if a technology fails or causes harm. We have implemented rigorous testing and quality assurance processes, obtaining appropriate insurance coverage to minimise the impact of such actions.

Customer concentration

Over-reliance on a small number of key customers could lead to significant revenue loss if those customers reduce or terminate their business. We have taken steps to diversify our customer base and develop long-term contracts with key clients to reduce dependency on any single customer.

Australian Accounting Standards and International Financial Reporting Standards

Accounting Standards are set by the AASB and IASB and are outside the Directors’ and the Company’s control. Changes to accounting standards issued by the AASB and IASB may have a material adverse impact on the financial performance and position of RemSense Technologies as reported in its financial statements.

Unforeseen risk

There may be other unforeseeable circumstances beyond the control of the Company which may impact RemSense, its operations and/or the valuation and performance of its shares. The above list of key risks ought not to be taken as exhaustive of the risks faced by RemSense or its investors. The above risks and others not specifically referred to above may in the future materially affect RemSense Technologies, its financial performance or the value of its shares.

Each of the key risks if they were to materialise, could have a material and adverse impact on (amongst other things) the Group’s business, reputation, growth, financial position and/or financial performance. RemSense has an established risk management framework in place to identify, assess and mitigate risks in accordance with the materiality and risk tolerance parameters set by the Board of Directors.

Page | 7

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

DIRECTORS’ REPORT

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘Group’) consisting of RemSense Technologies Limited (referred to hereafter as the ‘Company’) and the entity it controlled at the end of, or during, the year ended 30 June 2025.

DIRECTORS

The names of the directors who held office during the whole of the financial year and up to the date of this report are noted below. Directors were in office for the entire period unless otherwise stated.

Warren Cook Managing Director Appointed 13 June 2024 Ross Taylor Non-Executive Chairman Appointed 20 August 2020 John Clegg Non-Executive Director Appointed 21 February 2024

PRINCIPAL ACTIVITIES

During the financial year the principal activities of the Group were to provide innovation, data capture and insights, and virtualplant Visual Twin software solutions across industrial, infrastructure and resources market sectors.

DIVIDENDS

The Directors recommend that no dividend be provided for the year ended 30 June 2025 (2024: Nil).

Page | 8

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

INFORMATION ON DIRECTORS

==> picture [480 x 32] intentionally omitted <==

----- Start of picture text -----

Information on Directors Experience, qualifications, and other directorships
----- End of picture text -----

Name:	Ross Taylor
Title:	Non-Executive Chair
Qualifications:	BCom, SIA, ACA
Experience and expertise:	Ross is a Chartered Accountant and an investment banking
	consultant with a thorough knowledge of international financial
	markets gained whilst working in Australia, London, New York,
	and Tokyo. Ross has extensive experience in the global
	investment banking sector and has held senior positions with
	Deutsche Bank, Bankers Trust and Barclays Capital.
Other current directorships:	Non-executive Chair of Lodestar Minerals Limited since 30 June
	2014
Former directorships (past 3	None
years):
Special responsibilities:	Member of the Audit and Risk Committee
	Member of the Nomination and People Committee
Interests in shares:	222,394
Interests in options:	14,055,599
Name:	Warren Cook
Title:	Managing Director
Qualifications:	BSc. (Hons)
Experience and expertise:	Warren has a Bachelor of Science (Geology) degree and more
	than 20 years’ experience in technology development and
	commercialisation across mining, environmental and energy
	industries. Warren spent five years as CEO of acQuire Technology
	Solutions delivering information management software solutions
	for the resource industry. Warren has extensive international
	experience having delivered projects in Australia, Brazil, Canada,
	Chile, France, Ghana, India, Indonesia, Iran, New Zealand, PNG,
	Philippines, South Africa, UK, and the USA.
Other current directorships:	None
Former directorships (past 3	None
years):
Special responsibilities:	None
Interests in shares:	1,375,000
Interests in options:	16,187,500
Interests in rights:	1,000,000

Page | 9

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

INFORMATION ON DIRECTORS (continued)

==> picture [480 x 289] intentionally omitted <==

----- Start of picture text -----

Name Experience, qualifications, and other directorships
Name: John Clegg
Title: Non-Executive Director
Qualifications: FCA, FAICD
Experience and expertise: John, a chartered accountant since 1965, brings over five decades
of expertise to his roles. Following sixteen years at Arthur Young
& Co. (Ernst & Young), in 1986 John shifted focus to start-up
ventures, offering directorship and consulting services. His
extensive portfolio includes guiding public companies through
IPOs, restructuring private firms, and serving as CFO for
Other current directorships: RemSense pre-ASX listing.
Former directorships (past 3 None
years):
None
Special responsibilities: Chair of the Nomination and People Committee
Chair of the Audit and Risk Committee
Interests in shares: 10,138,786
Interests in options: 9,300,000
----- End of picture text -----

‘Other current directorships’ stated above are current directorships for listed entities only and exclude directorships of all other types of entities.

‘Former directorships’ stated above are directorships held in the last three years for listed entities only and exclude directorships of all other types of entities.

COMPANY SECRETARY

David McArthur was appointed to the position of Company Secretary on 19 March 2021. David is a Chartered Accountant, having spent four years with a major international accounting firm, and has over 30 years’ experience in the corporate management of publicly listed companies. David has substantial experience in capital raisings, company re-organisations and restructuring, mergers and takeovers, and asset acquisitions by public companies.

Mr Jordan McArthur was appointed as the joint Company Secretary on 13 June 2025. Jordan is a Chartered Accountant with 14 years corporate and financial experience gained in Australia and the United Kingdom.

Page | 10

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

MEETINGS OF DIRECTORS

The number of meetings of the Company’s Board of Directors (“the Board”) and of each Board committee held during the year ended 30 June 2025, and the number of meetings attended by each director was:

	Full board Attended Held	Full board Attended Held	Audit and risk committee Attended Held	Audit and risk committee Attended Held
Ross Taylor	5	5	2	2
Warren Cook	5	5	2	2
John Clegg	5	5	2	2

Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee.

In addition to the meetings held above, several decisions of the Board were undertaken via nine circular resolutions.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

In the opinion of the Directors there were no matters that significantly affected the affairs of the Group during the financial year, other than those matters referred to in the Operating and Financial Review above.

LIKELY DEVELOPMENTS

The Group is focussed on the further development and marketing of its virtualplant technology, scanning services and provision of virtualplant subscription contracts. The Group anticipates expansion into key international markets contributing to revenue growth

ENVIRONMENTAL REGULATIONS

The Group is not subject to any significant environmental regulation under Australian Commonwealth or State Law.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

As announced to the market on 2 July 2025, following options were expired;

1,609,881 options exercisable at $0.40
515,000 options exercisable at $0.25

On 4 August 2025, Company issued 27,800,000 fully paid ordinary shares at an issue price of $0.027 and raised $750,600 (before costs). Applicants for this capital raising has received a free-attaching option on a basis of one option for every two shares applied for, which are exercisable at $0.04 on or before 9 November 2026.

On 7 September 2025, the second tranche of performance rights of 1,000,000 were vested and became exercisable on the second anniversary of Warren Cook’s appointment as CEO of the Company.

On 11 September 2025, the Company secured its first contract with Shell Energy, valued at $267,520, to deliver an advanced digital visualisation platform supporting facility commissioning.

Page | 11

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR (continued)

On 12 September 2025, the Company held a general meeting at which shareholders approved the following issuances;

462,962 fully paid ordinary shares and 231,481 free-attaching options to each of the directors, respectively; and
5,000,000 options to the broker engaged by the Company in connection with the Capital raising on 4 August 2025

Other than as disclosed above, no matters or circumstances have arisen since the end of the financial year that have significantly affected, or may significantly affect, the operations of the Group, the results of these operations, or the state of affairs of the Group in future financial years.

INDEMNITY AND INSURANCE OF OFFICERS

The Company has agreed to indemnify all Directors and Company Secretaries against any liability arising from a claim brought by a third party against the Company. The Company has paid premiums to insure each Director and Company Secretary against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct whilst acting in the capacity of Director or Company Secretary of the Company, other than conduct involving wilful breach of duty in relation to the Company. The current premium is $66,770 (2024: $72,727) to insure the Directors and Company Secretaries of the Company.

INDEMNITY AND INSURANCE OF AUDITOR

The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor.

During the financial year, the Group has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.

SHARES UNDER OPTION

The following options to subscribe for fully paid ordinary shares are outstanding at the reporting date:

Grant date	Expiry date	Exercise price	Number
		cents	under option
28-Jun-23	10-Dec-25	15	9,000,000
02-Aug-23	10-Dec-25	15	2,446,500
24-Aug-23	10-Dec-25	15	2,000,000
10-May-24	31-Mar-29	4	12,000,000
10-May-24	09-Nov-26	4	4,083,325
16-May-24	31-Mar-29	4	10,400,000
24-May-24	31-Mar-29	4	500,000
20-Jun-24	31-Mar-29	4	2,200,000
29-Nov-24	30-Nov-29	3.8	17,000,000
20-Mar-25	19-Mar-28	10	11,500,000
04-Aug-25	30-Jun-28	10	4,000,000
11-August-25	09-Nov-26	4	13,205,557
			88,335,382

Page | 12

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

No person entitled to exercise options or rights had or has any right by virtue of the option to participate in any share issue of the Company or of any other body corporate.

SHARES ISSUED ON THE EXERCISE OF OPTIONS

916,675 ordinary shares of RemSense Technologies Limited were issued during the year ended 30 June 2025, and up to the date of this report, on the exercise of 4 cents options granted. All amounts have been paid. (2024: Nil).

During the year ended 30 June 2025, no options expired or cancelled (2024: 1,250,000 expired and 920,000 cancelled).

PERFORMANCE SHARES

At the reporting date, the following performance shares were on issue:

Grant date	Expiry date	Number of
		performance rights
07-Sep-23	07-Sep-25	1,000,000

AUDIT AND NON-AUDIT SERVICES

Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 25 to the financial statements. The amount paid or payable to the auditor for non-audit services is $24,668 (2024: $32,452).

The directors are satisfied that the provision of non-audit services during the financial year, by the auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

The directors are of the opinion that the services as disclosed in note 25 to the financial statements do not compromise the external auditor’s independence requirements of the Corporations Act 2001 for the following reasons:

All non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and
None of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board, including reviewing, or auditing the auditor’s own work, acting in a management or decision-making capacity for the company, acting as advocate for the company or jointly sharing economic risks and rewards.

ROUNDING OF AMOUNTS

The amounts contained in the annual report have been rounded to the nearest $1 (unless otherwise stated) pursuant to the option available to the Company under ASIC Class Order 2016/191. The Company is an entity to which the class order applies.

Page | 13

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

AUDITOR INDEPENDENCE

A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 26.

AUDITOR

BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001 .

Page | 14

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

AUDITED REMUNERATION REPORT

This report, which forms part of the Directors’ Report, outlines the remuneration arrangements in place for the Directors of RemSense Technologies Limited for the year ended 30 June 2025. There were no other key management personnel during the year. The information provided in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001 and its Regulations.

The Remuneration Report details the remuneration arrangements for the Directors who are defined as those persons having authority and responsibility for planning, directing, and controlling the major activities of the Group, directly or indirectly, whether executive or otherwise.

Remuneration philosophy

The objective of the Group’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results achieved. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward. The Board of Directors (“the Board”) ensures that executive reward satisfies the following key criteria for good reward governance practices:

competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency

The Nomination and People Committee is responsible for determining and reviewing remuneration arrangements for its directors. The performance of the Group depends on the quality of its key management personnel. The remuneration philosophy is to attract, motivate and retain high performance and high-quality personnel.

The reward framework is designed to align executive reward to shareholders’ interest. The Board has considered that it should seek to enhance shareholders’ interests by:

rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards

Remuneration structure

In accordance with best practice corporate governance, the structure of non-executive director and executive director remuneration is separate and distinct.

Non-Executive Directors’ Remuneration

Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors’ fees and payments are reviewed annually by the Nomination and People Committee. The Nomination and People Committee may, from time to time, receive advice from independent remuneration consultants to ensure non-executive directors’ fees and payments are appropriate and in line with the market. The Chairman’s fees are determined independently to the fees of other non-executive directors based on comparative roles in the external market. The Chairman is not present at any discussions relating to the determination of his own remuneration.

Page | 15

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

Non-Executive Directors’ Remuneration (continued)

ASX Listing Rules require the aggregate non-executive directors’ remuneration be determined periodically by a general meeting. The most recent determination is in the Company’s Constitution where shareholders approved a maximum annual aggregate remuneration of $500,000.

Each Non-Executive Director receives a fee for being a Director of the Company which is inclusive of sub-committee memberships:

Non-Executive Directors $40,000 p.a. exclusive of statutory superannuation
Chairman $55,000 p.a. exclusive of statutory superannuation

Non-executive directors do not receive cash performance related compensation.

Executive Director and Senior Executive Remuneration

The Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components.

There are three components to the executive remuneration and reward framework:

base pay and non-monetary benefits
share-based payments
other remuneration such as superannuation and long-service leave

The combination of these comprises the executive’s total remuneration.

Fixed remuneration

Fixed remuneration, consisting of base salary, superannuation, and non-monetary benefits, are reviewed annually by the Nomination and People Committee. The process consists of a review of relevant comparative remuneration in the market and internally and, where appropriate, external advice on policies and practices. The Nomination and People Committee has access to external, independent advice where necessary.

Executives may receive their fixed remuneration in the form of cash or other fringe benefits where it does not create any additional costs to the Group and provides additional value to the executive.

Page | 16

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

Short-term incentive scheme

The short-term incentives (“STI”) program is designed to align the targets of the business units with the performance hurdles of key management. STI payments are granted to executives based on specific annual targets and key performance indicators (“KPIs”) being achieved. At this stage, the Group does not award any STIs.

Long-term incentive scheme

The long-term incentives (“LTIs”) include long-service leave and share-based payments. Share rights and options are awarded to executives based on long-term incentive measures. These include increase in shareholder’s value relative to the entire market and the increase compared to similar companies.

The Group has adopted an Employee Incentive Option Plan (Plan). Under the Plan, the Company may grant options to Group eligible employees and consultants to attract, motivate and retain key employees over a period of three years up to a maximum of 10% of the Company’s total issued ordinary shares at the date of the grant. Director options are granted at the discretion of the Board and approved by shareholders. Performance hurdles are not attached to vesting periods however the Board determines appropriate vesting periods to provide rewards over time. Refer to note 21.

Group performance and link to remuneration

The remuneration of the Group’s key management personnel, including any component of remuneration that consists of securities in the Company, is not formally linked to the prior performance of the Group. The rationale for this approach is that the Group is in its development phase, and it is currently not appropriate to link remuneration to factors such as profitability or share price.

==> picture [488 x 21] intentionally omitted <==

----- Start of picture text -----

2025 2024 2023 2022 2021
----- End of picture text -----

Revenue from ordinary activities ($)	3,435,517	1,663,375	2,084,835	3,961,304	4,311,664
Other income ($)	171,321	174,917	80,380	80,559	373,088
Loss before income tax ($)	(799,782)	(2,306,165)	(3,033,883)	(2,451,102)	(728,623)
Net loss attributable to equity holders ($)	(799,782)	(2,306,165)	(3,033,883)	(2,451,102)	(728,623)
Share price at year end (cents)	4.6	1.8	6.2	15.5	n/a
Number of listed ordinary shares	167,233,989	116,555,128	45,465,530	31,289,192	n/a
Number of unlisted ordinary shares	48,304,559	48,304,559	48,304,559	48,304,559	54,593,751
Weighted average number of shares	166,363,427	162,350,496	85,359,551	48,090,267	31,309,445
Basic loss per share EPS (cents)	(0.48)	(1.87)	(3.55)	(5.10)	(2.33)
Listed options	15,990,457	15,990,457	9,003,957	-	-
Unlisted options	56,674,368	80,186,314	13,194,881	16,018,622	9,968,622
Net tangible (liabilities) / assets ($)	(335,069)	(200,199)	396,845	2,076,590	191,946
NTA Backing (cents)	(0.20)	(12.14)	0.42	2.61	0.35

During the financial years noted above, there were no dividends paid, or other returns of capital made by the Company to shareholders.

Use of remuneration consultants

No remuneration consultants provided services during the year.

Page | 17

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

Voting and comments made at the Company’s 2024 Annual General Meeting (“AGM”)

At the 29 November 2024 AGM, 99.95% of the votes received, supported the adoption of the remuneration report for the year ended 30 June 2024. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.

Employment contracts

Remuneration and other terms of employment for key management personnel are formalised in employment contracts. Details of these contracts are as follows:

Name:	Warren Cook
Title:	Managing Director and Chief Executive Officer
Agreement commenced:	7 September 2023
Details:	Base salary for the year ending 30 June 2025 of $275,000 plus statutory
	superannuation. Termination benefits are payable upon termination by the
	Company, other than for gross misconduct, equal to base salary for the notice
	period. Three months termination notice by either party.
	In addition to base salary, the Company issued 2 million options and 2 million
	performance rights.
	The options vested on 7 September 2023 and are exercisable at 15 cents on or
	before 10 December 2025. 1 million performance rights vested on 7 September
	2024 with the second tranche of 1 million vested on 7 September 2025.
	The terms of the issue of the options and performance rights, require the holder
	to remain an employee at the date the options are exercised, or performance
	rights vest. Any options not exercised, or performance rights not vested at the
	time employment ceases will be cancelled by the Company.

Key management personnel have no entitlement to termination payments in the event of removal for gross misconduct.

Page | 18

Directors’ Report

RemSense Technologies Limited

For the year ended 30 June 2025

Details of remuneration

Details of the remuneration of key management personnel of the Group are set out in the following tables.

==> picture [688 x 43] intentionally omitted <==

----- Start of picture text -----

Post Long
employment term
Short-term benefits benefits benefits Share-based payments Total
----- End of picture text -----

					Long	Equity-
			Other		service	settled	Performance
	Cash salary	Termination	benefits	Super-	leave	options	rights
	and fees	Benefits	(A)	annuation	(B)	(C)	(D)
2025	$	$	$	$	$	$	$	$
*Non-executive Directors*
Ross Taylor	45,692	-	-	5,255	-	139,280	-	190,227
John Clegg	33,231	-	-	3,822	-	113,865	-	150,918
*Executive Directors*
Warren Cook (MD)	286,6351	-	3,115	31,747	-	139,104	33,508	494,109
	365,558	-	3,115	40,824	-	392,249	33,508	835,254

1 Warren Cook’s cash salary and fees amount includes the annual leave accrued during the year.

Page | 19

RemSense Technologies Limited

For the year ended 30 June 2025

Directors’ Report

Details of remuneration (continued)

==> picture [698 x 35] intentionally omitted <==

----- Start of picture text -----

Post Long
employment term
Short-term benefits benefits benefits Share-based payments Total
----- End of picture text -----

					Long	Equity-
			Other		service	settled	Performance
	Cash salary	Termination	benefits	Super-	leave	options	rights
	and fees	Benefits	(A)	annuation	(B)	(C)	(D)
2024	$	$	$	$	$	$	$	$
*Non-executive Directors*
Ross Taylor	7,500	-	-	825	-	18,650	-	26,975
John Clegg	-	-	-	-	-	9,325	-	9,325
*Executive Directors*
Warren Cook (MD)	17,728	-	218	1,837	-	-	-	19,783
*Former Directors*
Steve Brown	108,537	-	471	13,761	(58,957)	-	-	63,812
Chris Sutherland	7,500	-	-	825	-	-	-	8,325
Sue Murphy	7,500	-	-	825	-	-	-	8,325
Richard Pace	-	-	-	-	-	34,740	-	34,740
*Executives*
Warren Cook (CEO)	218,056	-	2,678	22,828	-	40,436	59,322	343,320
*Former Executives*
Jillian Rosich	129,525	12,615	788	15,253	-	-	-	158,181
	496,346	12,615	4,155	56,154	(58,957)	103,151	59,322	672,786

Notes to the Remuneration Tables above

(A) Other benefits include mobile phone allowance and car parking benefits

(B) Long service leave provision on 30 June 2023 extinguished prior to Steve Brown’s retirement

(C) The fair value of options granted was determined using Black Scholes option pricing (D) The fair value of performance rights calculated using the share price on grant date, model expensed over vesting period

(E) Warren Cook held the position of CEO from 7 September 2023 to 14 June 2024 when he was appointed Managing Director

No part of directors’ remuneration was linked to performance for the year ended 30 June 2025 (2024: Nil).

No cash bonuses were granted during the year (2024: Nil).

Page | 20

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

Details of remuneration (continued)

The proportion of remuneration linked to performance and the fixed proportion are as follows:

==> picture [377 x 39] intentionally omitted <==

----- Start of picture text -----

Fixed remuneration At risk - LTI
Name 2025 2024 2025 2024
% % % %
----- End of picture text -----

*Non-executive Directors*
Ross Taylor	27	31	73	69
John Clegg	25	-	75	100
*Executive Directors*
Warren Cook	66	100	34	-
*Former Directors*
Steve Brown	-	100	-	-
Chris Sutherland	-	100	-	-
Sue Murphy	-	100	-	-
Richard Pace	-	-	-	100
*Former Executives*
Warren Cook	-	71	-	29
Jillian Rosich	-	100	-	-

No cash bonuses were granted during the year (2024: Nil).

Page | 21

Directors’ Report

RemSense Technologies Limited

For the year ended 30 June 2025

Additional disclosures relating to key management personnel

Shareholdings

The number of shares in the company held during the financial year by each director and KMP, including their personally related parties, is set out below:

	Held at 30 June 2024 Performance rights vested and exercised during theyear Sales Held at 30 June 2025
Warren Cook Ross Taylor John Clegg	375,000 1,000,000 - 1,375,000 222,394 - - 222,394 10,388,786 - (250,000) 10,138,786
	10,986,180 1,000,000 (250,000) 11,736,180

Performance rights

The number of performance rights in the company held during the financial year by each director and KMP, including their personally related parties, is set out below:

	Held at 30 June 2024	Granted	Vested and exercised during the year	Held at 30 June 2025	Maximum value to vest $
Warren Cook	2,000,000	-	(1,000,000)	1,000,000	4,598

Page | 22

RemSense Technologies Limited

Directors’ Report For the year ended 30 June 2025

Option holdings

The number of options over ordinary shares in the company held during the financial year by each director, including their personally related parties, is set out below:

	Held at 30 June 2024 Number Granted Number Acquired Number Expired / Cancelled Number Held at 30 June 2025 Number Vested and exercisable at 30 June 2025 Number Maximum value to vest $
Warren Cook Ross Taylor John Clegg	7,187,500 5,000,000 - - 12,187,500 12,187,500 - 9,075,599 5,000,000 - - 14,075,599 14,075,599 - 4,360,000 5,000,000 - - 9,360,000 9,360,000 -
	20,623,099 15,000,000 - - 35,623,099 35,623,099 -

No options issued to directors and key management personnel as part of compensation in current year or prior years, expired or were cancelled during the year ended 30 June 2025. (2024: 750,000 options)

No options granted as compensation in the current or prior years were exercised.

Page | 23

Directors’ Report

RemSense Technologies Limited

For the year ended 30 June 2025

Share-based remuneration granted as compensation

Details on options over ordinary shares in the Company that were granted as compensation to each director during the reporting period and details on options that vested during the reporting period are as follows:

	Options Granted Number	Exercise price (cents)	Grant date	Expiry date	Fair value at grant date (cents) Vested and exercisable at 30 June 2025 Number Yet to Vest at 30 June 2025 Number	Fair value at grant date (cents) Vested and exercisable at 30 June 2025 Number Yet to Vest at 30 June 2025 Number	Vested and exercisable at 30 June 2025 Number Yet to Vest at 30 June 2025 Number
Warren Cook	5,000,000	3.8	29-Nov-24	30-Nov-29	1.76	5,000,000	-
Ross Taylor	5,000,000	3.8	29-Nov-24	30-Nov-29	1.76	5,000,000	-
John Clegg	5,000,000	3.8	29-Nov-24	30-Nov-29	1.76	5,000,000	-

Other transactions with key management personnel

There were no other transactions with key management personnel not involving direct remuneration.

Page | 24

Directors’ Report For the year ended 30 June 2025

RemSense Technologies Limited

END OF AUDITED REMUNERATION REPORT

This report is made in accordance with a resolution of the Directors, pursuant to section 298(2)(a) of the Corporations Act 2001 .

On behalf of the Directors.

==> picture [67 x 84] intentionally omitted <==

Warren Cook

Managing Director

22 September 2025 Perth, WA

Page | 25

Tel: +61 8 6382 4600 Level 9, Mia Yellagonga Tower 2 Fax: +61 8 6382 4601 5 Spring Street www.bdo.com.au Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia

==> picture [78 x 30] intentionally omitted <==

DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF REMSENSE TECHNOLIGIES LIMITED

As lead auditor of Remsense Technologies Limited for the year ended 30 June 2025, I declare that, to the best of my knowledge and belief, there have been:

No contraventions of the auditor independence requirements of the Corporations Act 2001 relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Remsense Technologies Limited and the entities it controlled during the period.

==> picture [98 x 67] intentionally omitted <==

Ashleigh Woodley

Director

BDO Audit Pty Ltd

Perth

22 September 2025

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of A.C.N. 050 110 275 Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and A.C.N. 050 110 275 Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation

Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

Consolidated Statement of Profit or Loss and Other Comprehensive Income ...................................................... 28 Consolidated Statement of Financial Position ............................................................................................................................. 29 Consolidated Statement of Changesin Equity .............................................................................................................................. 31 Consolidated Statement of Cash Flows ............................................................................................................................................ 33 Notes to the Consolidated Financial Report ..................................................................................................................................34 Consolidated Entity Disclosure Statement ..................................................................................................................................... 79 Directors’ Declaration .................................................................................................................................................................................. 80 Independent Auditor’s Report ................................................................................................................................................................. 81 Securities Exchange Information .......................................................................................................................................................... 85 Corporate Directory ....................................................................................................................................................................................... 89

GENERAL INFORMATION

The consolidated financial statements cover RemSense Technologies Limited as a Group consisting of RemSense Technologies Limited and the entity it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is RemSense Technologies Limited’s functional and presentation currency.

RemSense Technologies Limited is a listed public company limited by shares, incorporated, and domiciled in Australia. Its registered and principal places of business is:

Registered office

Suite 0101, Level 1, 5 Mill Street Perth WA 6000

A description of the nature of the Group’s operations and its principal activities are included in the Directors’ Report, which is not part of the financial statements.

The financial statements were authorised for issued, in accordance with a resolution of directors, on 22 September 2025. The directors have the power to amend and reissue the financial statements.

Page | 27

Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 June 2025

==> picture [488 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
Note $ $
----- End of picture text -----

Revenue	4	3,435,517	1,663,375
Government grants	5	171,321	174,917
Finance income		3,784	4,670
Other gains		10,695	3,804
Other income		11,500	-
Expenses
Cost of sales		(964,737)	(599,412)
Share-based payment expense	20	(879,914)	(176,394)
Marketing and business development costs		(165,275)	(231,722)
Personnel expenses	6	(1,136,928)	(1,744,297)
General and administration costs		(409,502)	(477,203)
Professional fees		(388,373)	(278,536)
Depreciation	13	(66,297)	(99,510)
Amortisation	14	(310,919)	(261,309)
Amortisation – right of use assets	15	(94,212)	(95,074)
Research and development costs		(402)	(24,181)
Impairment of intangible assets		-	(131,965)
Finance expenses		(16,040)	(33,328)
Loss before income tax		(799,782)	(2,306,165)
Income tax expense	8	-	-
Loss for the year		(799,782)	(2,306,165)
Other comprehensive income, net of tax		-	-
Total comprehensive loss for the year		(799,782)	(2,306,165)
Total comprehensive loss attributable to owners of
the Company		(799,782)	(2,306,165)
Loss per share (cents per share)
Basic and diluted	7	(0.48)	(1.87)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

Page | 28

Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of 30 June 2025

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
Note $ $
----- End of picture text -----

Assets
Cash and cash equivalents	9	368,315	325,650
Trade and other receivables	10	94,581	6,196
Contract assets	4	9,289	22,178
Prepayments	11	71,389	97,357
Other financial assets	12	10,000	62,681
Total current assets		553,574	514,062
Property, plant, and equipment	13	178,266	274,350
Intangible assets	14	1,095,439	1,191,945
Right of use assets	15	275,379	87,151
Other financial assets	12	137,225	49,225
Total non-current assets		1,686,309	1,602,671
Total assets		2,239,883	2,116,733
Liabilities
Trade and other payables	16	178,857	199,694
Borrowings	17	40,728	95,063
Lease Liabilities	18	61,711	92,086
Employee benefits	6	201,387	153,517
Contract liabilities	4	82,225	271,774
Total current liabilities		564,908	812,134
Borrowings	17	-	11,007
Lease Liabilities	18	242,758	-
Employee benefits	6	105,568	80,121
Provisions		12,000	12,000
Contract liabilities – Government grant	5	207,507	209,726
Total non-current liabilities		567,833	312,854
Total liabilities		1,132,741	1,124,988
Net assets		1,107,142	991,745

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Page | 29

Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) As of 30 June 2025

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
Note $ $
----- End of picture text -----

Equity
Issued capital	19	8,890,197	8,827,931
Reserves	19	1,251,795	484,263
Accumulated losses		(9,034,850)	(8,320,449)
Total equity		1,107,142	991,745

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Page | 30

Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2024

==> picture [712 x 62] intentionally omitted <==

----- Start of picture text -----

Share Predecessor Options Performance Accumulated Total
capital reserve reserve rights losses equity
reserve
$ $ $ $ $ $
----- End of picture text -----

Balance on 1 July 2023 Loss after income tax expense for the year	7,204,024 (8,674) 59,306 - - - - -	(5,825,767) 1,428,889 (2,306,165) (2,306,165)
Total comprehensive loss for the year Transactions with owners in their capacity as owners Contributions of equity, net of transaction costs Transfer to accumulated losses on expiry of options Share-based payment transactions	- - - - 1,623,907 - - - - - 188,517 - - - 185,792 59,322	(2,306,165) (2,306,165) - 1,623,907 (188,517) - - 245,114
Balance on 30 June 2024	8,827,931 (8,674) 433,615 59,322	(8,320,449) 991,745

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Page | 31

Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued) For the year ended 30 June 2025

==> picture [712 x 62] intentionally omitted <==

----- Start of picture text -----

Share Predecessor Options Performance Accumulated Total
capital reserve reserve rights losses equity
reserve
$ $ $ $ $ $
----- End of picture text -----

Balance on 1 July 2024 Loss after income tax expense for the year	8,827,931 (8,674) 433,615 59,322 - - - -	(8,320,449) 991,745 (799,782) (799,782)
Total comprehensive loss for the year Transactions with owners in their capacity as owners Contributions of equity, net of transaction costs Transfer to accumulated losses on exercise of options Transfer to accumulated losses on expiry of options Share-based payment transactions	- - - - 62,266 - - - - - (36,667) - - - - (48,714) - - 819,406 33,507	(799,782) (799,782) - 62,266 36,667 - 48,714 - 852,913
Balance on 30 June 2025	8,890,197 (8,674) 1,216,354 44,115	(9,034,850) 1,107,142

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Page | 32

Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 June 2025

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
Note $ $
----- End of picture text -----

Cash flows from operating activities
Receipts from customers		3,476,441	1,894,039
Government grants		42,133	24,951
Payments to suppliers and employees		(3,123,332)	(3,254,371)
Interest paid		(23,427)	(20,706)
Interest received		3,784	-
Net cash generated from / (used in) operating activities	9(b)	375,599	(1,356,087)
Cash flows from investing activities
Proceeds from disposal of property, plant, and equipment		36,810	7,791
Payments for property, plant, and equipment		(2,488)	(23,319)
Payments for intangible assets		(87,444)	(565,614)
Net payments to term deposits and rental bonds		(35,320)	-
Net cash used in investing activities		(88,442)	(581,142)
Cash flows from financing activities
Proceeds from issue of shares and options		63,667	1,782,889
Proceeds from other short-term loans		65,000	197,316
Repayment of premium funding facility	17	(192,116)	(140,149)
Repayment of other short-term loans	17	(83,856)	(160,000)
Repayment of chattels and mortgages	17	(20,376)	(18,371)
Repayment of lease liabilities	9	(67,709)	(90,930)
Payment of capital raising costs		(4,118)	(97,528)
Net cash (used in) / generated from financing activities		(239,508)	1,473,227
Net increase / (decrease) in cash and cash equivalents		47,649	(464,002)
Cash and cash equivalents on 1 July		325,650	789,652
Effect of exchange rate fluctuations on cash held		(4,984)	-
Cash and cash equivalents on 30 June	9(a)	368,315	325,650

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Page | 33

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

NOTES TO THE CONSOLIDATED FINANCIAL REPORT For the year ended 30 June 2025

1 MATERIAL ACCOUNTING POLICIES

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

1.1 NEW OR AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED

The Group has adopted all the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period. No change to accounting policies was required.

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2025. The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

1.2 BASIS OF PREPARATION

These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001, as appropriate for, for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB”).

The amounts contained in the financial report have been rounded to the nearest $1 (unless otherwise stated) pursuant to the option available to the Company under ASIC Class Order 2016/191. The Company is an entity to which the class order applies.

Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, certain classes of property, plant, and equipment and derivative financial instruments.

1.3 PRINCIPLES OF CONSOLIDATION

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of RemSense Technologies Limited (“Company” or “parent entity”) as of 30 June 2025 and the results of all subsidiaries for the year then ended. RemSense Technologies Limited and its subsidiaries together are referred to in these financial statements as the ‘Group’.

Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and can affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

Page | 34

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

1.3 PRINCIPLES OF CONSOLIDATION (continued)

Intercompany transactions, balances, and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the noncontrolling interest acquired, is recognised directly in equity attributable to the parent.

Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position, and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance.

When the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities, and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

1.4 CURRENT AND NON-CURRENT CLASSIFICATION

Assets and liabilities are presented in the statement of financial position based on current and noncurrent classification.

An asset is classified as current when it is either expected to be realised or intended to be sold or consumed in the Group’s normal operating cycle, it is held primarily for the purpose of trading, it is expected to be realised within 12 months after the reporting date, or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. All other assets are classified as non-current.

A liability is classified as current when it is either expected to be settled in the Group’s normal operating cycle, it is held primarily for the purpose of trading, it is due to be settle within 12 months after the reporting date, or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting date. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

1.5 GOING CONCERN

The consolidated financial statements have been prepared on a going concern basis which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business.

For the year ended 30 June 2025, the Group recorded a loss of $799,782 (2024: 2,306,165) and had net cash inflows from operating activities of $375,599 (2024: net cash outflow of 1,356,087) and net cash outflows from investing activities of $88,442 (2024: 581,142). As of 30 June 2025, the Group had net assets of 1,107,142 (2024: $991,745), a working capital deficit of $11,336(2024: $298,072) and total cash on hand of 368,315 (2024: $325,650).

Page | 35

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

1.5 GOING CONCERN (continued)

The Directors believe that there are reasonable grounds the Group will be able to continue as a going concern, after considering the following factors:

Capital raised on 04 August 2025 amounting to $750,600 (before costs)
Secured its first contract with Shell Energy, valued at $267,520
Successful R&D grant claim
Access to the capital markets to raise additional funds
Expected conversion of issued listed and unlisted share options
Access to other funding opportunities such as borrowings from related parties
The ability of the Directors and management to continue managing its cashflows and cash reserves to successfully execute its contracted projects and win new work whilst operating withing the Group’s budget
Reduce or defer discretionary expenditure and / or new projects, to manage cashflow

Accordingly, the Directors believe the Group will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report.

Should the Group be unsuccessful in achieving the matters set out above, a material uncertainty would exist that may cast significant doubt about the Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

The financial report does not include any adjustments relating to the amounts or classification of recorded assets and liabilities that might be necessary if the Group does not continue as a going concern.

2 MATERIAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, revenue, and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. Judgements estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Share-based payment transactions

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model, using the assumptions detailed in note 20.

Page | 36

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

2 MATERIAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (continued)

Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pretax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utility of certain software and IT equipment.

Recognition of Intangible assets

Development expenditure incurred on Virtualplant assets is capitalised only when the entity can demonstrate all of the following:

the technical feasibility of completing the asset;
its intention and ability to complete and use or sell the asset;
how the asset will generate probable future economic benefits;
the availability of adequate resources to complete the development; and
the ability to reliably measure the expenditure attributable to the asset during its development.

Capitalised development costs are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.

Page | 37

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

3 OPERATING SEGMENTS

Accounting Policy

Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of RemSense Technologies Limited.

For management purposes, the Group is organised into one operating segment, collecting customer data, processing this information, and delivering outcome reports. This includes technology development, RPAS services and its virtualplant Visual Twin software product, and services a range of markets and applications. All the Group’s activities are interrelated, and discrete financial information is reported to the CODM as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Group as one segment. The financial results from the segment are equivalent to the financial statements of the Group as a whole. The accounting policies used by the Group in reporting segments internally are the same as those adopted in the financial statements.

During the year ended 30 June 2025, revenue amounting to $2,624,042 was derived from one of its major customers (2024: $607,290), which includes $538,414 was from an overseas project in Bangladesh (2024: Nil). These revenues are attributed to the provision of VP scanning services and subscriptions.

There have been no changes to the basis of segmentation or the measurement basis for segment profit or loss since 30 June 2025.

4 REVENUE

Accounting Policy

Revenue from contracts with customers

Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the services promised.

Rendering of services

Revenue from a contract to provide services is recognised over time as the services are rendered based on an hourly rate. For fixed priced jobs revenue is recognised at a point in time when the service is transferred to the customer. In the case of scanning work, this is the point at which the images are made available to the customer.

Page | 38

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

4 REVENUE (continued)

Accounting Policy

Methods for measuring progress towards satisfaction of a performance obligation

Output methods recognise revenue based on direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. Output methods include methods such as surveys of performance completed to date, appraisals of results achieved, milestones reached and time elapsed. When an entity evaluates whether to apply an output method to measure its progress, the entity shall consider whether the output selected would faithfully depict the entity’s performance towards complete satisfaction of the performance obligation.

Input methods recognise revenue based on the entity’s efforts or inputs to the satisfaction of a performance obligation (for example, resources consumed, labour hours expended, costs incurred) relative to the total expected inputs to the satisfaction of that performance obligation.

The input method is most appropriate for recognising revenue on the Group’s Engineering projects where invoices are issued at month-end based on hours worked and costs incurred until the job is complete.

The output method is most appropriate for recognising revenue on the Group’s remotely piloted aircraft system contracts. Revenue is booked when the asset, in this case the scanned images, are delivered to the customer.

Contract assets

Contract assets are recognised when the Group has transferred goods and services to the customer but where the Group is yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment purposes.

Contract liabilities

Contract liabilities are recognised when there is an obligation for the Group to transfer goods and services to the customer but where the Group has already received consideration from the customer. Revenue is recognised over the period it is earned. Contract liabilities are treated as financial liabilities for impairment purposes.

(a) The Group’s disaggregation of revenue from contracts with customers is as follows:

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

virtualplant scanning services	2,961,031	1,079,935
RPAS services	208,514	238,594
virtualplant subscriptions	147,824	227,174
RPAS subscriptions	118,148	117,672
	3,435,517	1,663,375

Page | 39

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

4 REVENUE (continued)

(a) The Group’s disaggregation of revenue from contracts with customers is as follows:

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Timing of revenue recognition
Services transferred at a point in time	3,169,546	1,318,529
Services transferred over time	265,971	344,846
	3,435,517	1,663,375

(b) The Group’s assets and liabilities related to contracts with customers are as follows:

==> picture [482 x 27] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Contract assets
Balance on 1 July	22,178	33,909
Reclassified to trade receivables	(18,791)	(33,909)
Written off – job not going ahead	(1,480)	-
Consideration for work completed not billed	7,382	22,178
	9,289	22,178

The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date for virtualplant scanning services. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer.

==> picture [478 x 52] intentionally omitted <==

----- Start of picture text -----

virtualplant RPAS virtualplant Total
subscriptions subscriptions scanning
services
$ $ $ $
----- End of picture text -----

Contract liabilities
Balance on 1 July 2023	84,800	69,328	195,716	349,844
Recognition of revenue	-	-	(195,716)	(195,716)
Amounts received in advance	296,000	166,492	-	462,492
Amortised over term of subscription	(227,174)	(117,672)	-	(344,846)
Balance on 30 June 2024	153,626	118,148	-	271,774
Amounts received in advance	194,570	-	-	194,570
Amortised over term of subscription	(265,971)	(118,148)	-	(384,119)
Balance on 30 June 2025	82,225	-	-	82,225

The contract liabilities primarily relate to the advance consideration received from customers for virtualplant scanning services, for which revenue is recognised at a point in time, virtualplant subscriptions for which revenue is recognised over time.

Page | 40

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

5 GOVERNMENT GRANTS

Accounting Policy

Government grants are recognised at their fair value where there is a reasonable assurance that the grant will be received, and the Group will comply with the terms and conditions.

Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate.

Government grants relating to the purchase of intangible assets are included in non-current liabilities as contract liabilities and credited to profit or loss on a straight-line basis over the expected lives of the related assets.

	2025 $	2024 $
R&D tax incentive	171,321	174,917

During the financial year, the Group received a research and development (R&D) grant amounting to $169,102 (2024: $247,007). Out of this $42,133 was directly recognised as other income as it was related to R&D activities which were expensed.

Rest of this grant income has been recognised as deferred income in the statement of financial position and is being amortised in line with the associated intangible assets, in accordance with AASB 120 Accounting for Government Grants and Disclosure of Government Assistance.

This treatment aligns the recognition of grant income with the economic benefits derived from the associated intangible assets.

Below is a reconciliation on the portion of R&D tax incentive relating to capitalised expenditure during the year:

	2025	2024
	$	$
Contract liabilities – Government grants
Balance on 1 July	209,726	137,635
Capitalised R&D tax incentive	98,796	209,726
Unwind of R&D tax incentive	(101,015)	(137,635)
Balance on 30 June	207,507	209,726

Page | 41

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

6 PERSONNEL EXPENSES AND EMPLOYEE BENEFITS

Accounting Policy

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for annual and long service leave, not expected to settle within 12 months of the reporting date, are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expense

Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

The table below sets out personnel costs expensed during the year.

==> picture [482 x 35] intentionally omitted <==

----- Start of picture text -----

2025 2024
Note $ $
----- End of picture text -----

Directors’ and key management personnel remuneration	406,406	510,313
Staff salaries	1,369,584	1,751,337
Termination payments	4,109	32,148
Superannuation	144,533	183,446
Employee benefits (Annual leave & TOIL)	11,407	7,350
Payroll and fringe benefits tax	45,950	112,512
Recruitment expenses	-	67,483
Other associated personnel expenses	30,488	32,732
	2,012,477	2,697,321
Expensed in cost of sales	665,000	452,748
Capitalised in intangible assets	210,549	500,276
Expensed in personnel expenses	1,136,928	1,744,297
	2,012,477	2,697,321

Page | 42

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

6 PERSONNEL EXPENSES AND EMPLOYEE BENEFITS (continued)

The table below sets out employee benefits at the reporting date.

==> picture [482 x 35] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Salary accrual	66,398	15,482
Statutory superannuation contributions	7,636	6,419
Annual leave provision	121,429	120,161
Long service leave provision	105,568	80,121
Workplace giving	700	1,500
Time off in lieu provision	5,224	9,955
	306,955	233,638
Current	201,387	153,517
Non-current	105,568	80,121
	306,955	233,638

Page | 43

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

7 LOSS PER SHARE

Accounting Policy

Basic earnings per share

Basic earnings per share is calculated by dividing the profit / (loss) attributable to the owners of RemSense Technologies Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to account for the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

	2025 $	2024 $
Basic and diluted loss per share
Loss after income tax attributable to owners of
RemSense Technologies Limited	(799,782)	(2,306,165)
	Cents	Cents
Basic loss per share	(0.48)	(1.87)
Diluted loss per share	(0.48)	(1.87)
	Number	Number
Weighted average number of ordinary shares
Issued ordinary shares on 1 July	164,859,687	93,770,089
Effect of shares issued during the period	1,503,740	29,446,160
Weighted average number of ordinary shares on 30 June	166,363,427	123,216,249

Page | 44

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

8 INCOME TAX EXPENSE

Accounting Policy

The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:

When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in as transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits, or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probably that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities, and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

RemSense Technologies Limited (“the head entity”) and its wholly owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the ‘separate taxpayer within group’ approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.

Goods and Services Tax (‘GST’) and other similar taxes

Revenues, expenses, and assets are recognised net of the amount of, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Page | 45

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

8 INCOME TAX EXPENSE (continued)

(a) Amounts recognised in profit or loss

==> picture [482 x 26] intentionally omitted <==

----- Start of picture text -----

2025 2024
----- End of picture text -----

Current tax expense	-	-
Deferred tax expense	-	-
Income tax expense	-	-
Numerical reconciliation of income tax expense to prima facie
tax
payable
Loss from continuing operations before income tax	(799,782)	(2,306,165)
Tax at the Australian tax rate of 25% (2024: 25%)	(199,946)	(576,541)
Non-deductible expenses	213,987	46,741
Non-assessable income	(42,830)	(43,729)
Permanent differences	1,043	1,467
Tax losses not brought to account	27,746	572,062
Income tax expense	-	-

All unused tax losses were incurred by Australian entities.

The benefit of these tax losses will only be obtained if:

i) future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised,
ii) the conditions for deductibility imposed by tax legalisation continue to be complied with, iii) no changes in tax legislation adversely affect the Group in realising the benefit, and
iv) satisfaction of either the continuity of ownership or the same business test.

Page | 46

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

8 INCOME TAX EXPENSE (continued)

(b) Amounts recognised directly in equity

Deferred tax liabilities have not been recognised in respect of the following items:

	2025 $	2024 $
Net deferred tax	350	24,382

(c) Unrecognised deferred tax assets and liabilities

Deferred tax liabilities have not been recognised in respect of the following items:

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Deferred tax liabilities
Intangible assets	(159,691)	-
Right-of-use assets	(68,845)	(21,788)
	(228,536)	(21,788)
Off-set of deferred tax assets	228,536	21,788
	-	-
Deferred tax assets
Capital raising costs – s40-880	42,939	72,950
Intangible assets	226,515	156,836
Right-of-use lease liability	76,117	23,021
Property, plant, and equipment	2,264	2,266
Accrued expenses	14,500	21,003
Employee benefits	59,964	54,164
Carry forward tax losses – revenue	1,948,305	1,987,636
Carry forward tax losses – capital	53,706	53,706
Other temporary differences	10,521	15,171
	2,434,831	2,386,753
Off-set of deferred tax liabilities	(228,536)	(21,788)
Net unrecognised deferred tax assets	2,206,295	2,364,965

Page | 47

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

9 CASH AND CASH EQUIVALENTS

Accounting Policy

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalent also includes, bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position.

(a) Reconciliation of cash recorded in Statement of Financial Position to Statement of Cash Flows

	2025 $	2023 $
Cash and cash equivalents in the statement of cashflows	368,315	325,650

(b) Reconciliation of cash flows from operating activities

==> picture [494 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Cash flows from operating activities
Loss for the year		(799,782)	(2,306,165)
Adjustments for:
Equity-settled share-based payment transactions	20	852,913	183,099
Depreciation and amortisation		471,428	455,893
Net loss on foreign exchange translation		4,984	-
Annual and long service leave expense		11,407	42,510
Profit on disposal of property, plant, and equipment		(4,533)	(6,208)
Impairment of intangible assets		-	131,965
Other income		-	(101,526)
Net finance income		-	(648)
Change in trade and other receivables		378,663	(318,785)
Change in prepayments and deposits		199,358	57,977
Change in other operating assets		12,889	(4,670)
Change in other financial assets		-	11,731
Change in trade and other payables		(60,159)	(2,572)
Change in interest bearing liabilities		(7,386)	322,395
Change in contract liabilities		(746,093)	275,895
Change in employee benefitsprovision		61,910	(96,978)
Net cash generated from / (used in) operating activities		375,599	(1,356,087)

Page | 48

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

9 CASH AND CASH EQUIVALENTS (continued)

(c) Changes in liabilities arising from financing activities

==> picture [708 x 51] intentionally omitted <==

----- Start of picture text -----

ATO Radium
Chattels & Premium Total
payment plan Capital
mortgages Leases Funding
$ funding
$ $ $ $
$
----- End of picture text -----

Balance on 1 July 2023	49,754	183,016	-		-	232,770
Net cash from / (used in) financing activities	(18,370)	(90,930)	(140,149)	(160,000)	197,316	(212,133)
Premium funding facility	-	-	188,594	-	-	188,594
Interest on premium funding facility – not paid	-	-	648		-	648
Radium Capital offset against R&D	-	-	-		(197,316)	(197,316)
ATO payment plan	-	-	-	185,593	-	185,593
Balance on 30 June 2024	31,384	92,086	49,093	25,593	-	198,156
Net cash from / (used in) financing activities	(20,377)	(92,086)	(192,116)	(25,593)	-	(330,172)
New lease liability	-	302,703	-	-	-	302,703
Premium funding facility	-	-	172,744	-	-	172,744
Interest – not paid	-	1,766	-	-	-	1,766
Balance on 30 June 2025	11,007	304,469	29,721	-	-	345,197

Page | 49

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

10 TRADE AND OTHER RECEIVABLES

Accounting Policy

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Current
Trade receivables	57,957	6,174
Other receivables	36,624	22
	94,581	6,196

Provision for expected credit losses

The Group has not recognised a provision for expected credit losses for the year ended 30 June 2025 as credit risk has not increased significantly since initial recognition. Payment of invoices takes on average 30 days (2024: 30 days).

There were no trade receivable impairment losses for the year ending 30 June 2025 (2024: Nil).

Page | 50

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

10 TRADE AND OTHER RECEIVABLES (continued)

The ageing of trade receivables is as follows:

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Not overdue	50,640	6,174
0 to 3 months overdue	7,317	-
	57,957	6,174

Other receivables are non-interest bearing.

Note 21 includes disclosures relating to the credit risk exposures and analysis relating to the allowance for expected credit losses.

11 PREPAYMENTS

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Current
Insurance	40,720	44,780
Other	30,669	52,577
	71,389	97,357

Page | 51

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

12 OTHER FINANCIAL ASSETS

Accounting Policy

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part, or all, of a financial asset, the carrying value is written off.

Financial assets at fair value through profit or loss

Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increase significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, as 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired, or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measure on the probably weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset’s carrying value with a corresponding expense through profit or loss.

Page | 52

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

12 OTHER FINANCIAL ASSETS (continued)

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Bank guarantee term deposit	147,225	49,225
Term deposit over credit card facility	-	62,681
	147,225	111,906
Current	10,000	62,681
Non-current	137,225	49,225
	147,225	111,906

Reconciliation

Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out below:

==> picture [487 x 36] intentionally omitted <==

----- Start of picture text -----

Bank Credit card Total
Guarantee [(1) ] Bond [(2) ]
$ $ $
----- End of picture text -----

Balance on 1 July 2023	47,236	60,000	107,236
Interest income re-invested	1,989	2,681	4,670
Balance on 30 June 2024	49,225	62,681	111,906
Interest income received	-	3,149	3,149
Investments / (withdrawals) during the year	98,000	(65,830)	32,170
Balance on 30 June 2025	147,225	-	147,225

Bank guarantee held over the Group’s leased premises.

Term deposit over the credit card facility.

Refer to note 21 for further information on fair value measurement

Page | 53

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

13 PROPERTY, PLANT AND EQUIPMENT

Accounting Policy

Plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on diminishing balance basis to write off the net cost of each item of property, plant, and equipment (excluding land) over their expected useful lives as follows:

Plant and equipment 2 – 5 years Furniture and office equipment 5 – 10 years Mobile equipment and motor vehicles 8 years Communication and computer equipment 2 – 6 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained earnings / accumulated losses.

Page | 54

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

13 PROPERTY, PLANT AND EQUIPMENT (continued)

==> picture [482 x 35] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Plant and equipment – at cost	629,647	666,577
Less: accumulated depreciation	(469,603)	(443,470)
	160,044	223,107
Furniture and office equipment – at cost	13,569	38,836
Less: accumulated depreciation	(4,439)	(8,309)
	9,130	30,527
Communication and computer equipment – at cost	57,909	57,909
Less: accumulated depreciation	(50,131)	(44,554)
	7,778	13,355
Mobile equipment and motor vehicles – at cost	29,545	58,409
Less: accumulated depreciation	(28,231)	(51,048)
	1,314	7,361
Leasehold improvements – at cost	-	6,426
Less: accumulated depreciation	-	(6,426)
	-	-
	178,266	274,350

Reconciliations

Reconciliations of the written-down values at the beginning and end of the current and previous financial year are set out below:

==> picture [491 x 42] intentionally omitted <==

----- Start of picture text -----

Furniture Computer
Plant and and office & comms Mobile
equipment equipment equipment Equipment Total
$ $ $ $ $
----- End of picture text -----

Balance on 1 July 2023	293,051	34,285	20,076	9,856	357,268
Additions	13,692	-	4,483	-	18,175
Disposals	(5,000)	(2,062)	(4,603)	-	(11,665)
Depreciation on disposals	5,000	1,732	3,350	-	10,082
Depreciation expense	(83,636)	(3,428)	(9,951)	(2,495)	(99,510)
Balance on 30 June 2024	223,107	30,527	13,355	7,361	274,350
Additions	2,488	-	-	-	2,488
Disposals	(39,418)	(25,267)	-	(28,864)	(93,549)
Depreciation on disposals	30,818	6,923	-	23,532	61,273
Depreciation expense	(56,951)	(3,053)	(5,577)	(715)	(66,296)
Balance on 30 June 2025	160,044	9,130	7,778	1,314	178,266

Page | 55

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

14 INTANGIBLE ASSETS

Accounting Policy

Intangible assets are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangibles assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.

Software development

Costs that are directly associated with the development of software are recognised as intangible assets where the following criteria are met:

It is technically feasible to complete the software product so that it will be available for use
Management intends to complete the software product and use or sell it  There is an ability to use or sell the software product
It can be demonstrated how the software product will generate probable future economic benefits
Adequate technical, financial, and other resources to complete the development and to use or sell the software product are available and
The expenditure attributable to the software product during its development can be reliably measured.

Software is amortised over the period of its expected finite life, being five years.

Other development expenditure that does not meet the above criteria is recognised as an expense when incurred. Development costs previously recognised as expenses are not recognised as assets in a subsequent period. Research costs, and costs associated with maintenance, are recognised as an expense when incurred.

Page | 56

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

14 INTANGIBLE ASSETS (continued)

==> picture [494 x 36] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Patents and trademarks– at cost	19,995	19,995
Less: accumulated amortisation	-	-
	19,995	19,995
virtualplant: Software – at cost	834,990	834,990
Less: accumulated amortisation	(344,938)	(177,941)
	490,052	657,049
virtualplant: IP – at cost	400,000	400,000
Less: accumulated amortisation	(236,274)	(156,274)
	163,726	243,726
virtualplant: other software development – at cost	500,475	291,883
Less: accumulated amortisation	(84,630)	(20,708)
	415,845	271,175
Intangible assets under construction	5,821	-
	5,821
	1,095,439	1,191,945

Page | 57

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

14 INTANGIBLE ASSETS (continued)

Reconciliations

Reconciliations of the written-down values at the beginning and end of the current and previous financial year are set out below:

==> picture [510 x 50] intentionally omitted <==

----- Start of picture text -----

virtualplant
other Intangible
Patents and virtualplant virtualplant
software assets under
trademarks software IP Total
development construction
$ $ $ $
$ $
----- End of picture text -----

Balance on 1 July 2023	17,425	616,671	323,726	74,222	-	1,032,044
Additions	2,570	332,944	-	230,100	-	565,614
Impairment	-	(131,965)	-	-	-	(131,965)
Reclassification to profit or loss	-	-	-	(12,439)	-	(12,439)
Amortisation expense	-	(160,601)	(80,000)	(20,708)	-	(261,309)
					-
Balance on 30 June 2024	19,995	657,049	243,726	271,175		1,191,945
Additions	-	-	-	-	214,413	214,413
Transferred to intangible
assets after construction	-	-	-	208,592	(208,592)	-
completion
Amortisation expense	-	(166,997)	(80,000)	(63,922)	-	(310,919)
Balance on 30 June 2025	19,995	490,052	163,726	415,845	5,821	1,095,439

Assessment of Impairment indicators

During the year ending 30 June 2025, management completed a full review of its capitalised development expenditure and intangible assets under construction as specified under AASB136 para 12. There were no indicators of impairment identified during this exercise.

Page | 58

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

15 RIGHT-OF-USE ASSETS

Accounting Policy

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except when included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of-use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.

The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2023
$ $
----- End of picture text -----

Land and buildings – right of use	470,379	187,939
Less: accumulated depreciation	(195,000)	(100,788)
	275,379	87,151
Reconciliation of movements:
Opening balance	87,151	182,225
Additions1	282,440	-
Amortisation	(94,212)	(95,074)
Closing balance	275,379	87,151

1 During the year, Group entered into a new lease agreement for a 3-year term, to move its office to Suite 0101, Level 1, 5 Mill Street, Perth WA 6000.

Page | 59

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

16 TRADE AND OTHER PAYABLES

Accounting Policy

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Current
Trade payables	103,191	82,581
Other payables and accrued expenses	58,900	96,359
Authorised government agencies	16,766	20,754
	178,857	199,694

Refer to note 21 for further information on financial instruments.

17 BORROWINGS

Accounting Policy

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

==> picture [481 x 41] intentionally omitted <==

----- Start of picture text -----

Book value Fair value Book value Fair value
2025 2025 2024 2024
$ $ $ $
----- End of picture text -----

Current
Chattels and mortgages	11,007	11,007	31,383	31,383
Premium funding	29,721	29,721	49,094	49,094
ATO payment plan	-	-	25,593	25,593
	40,728	40,728	106,070	106,070
Current	40,728	40,728	95,063	95,063
Non-current	-	-	11,007	11,007
	40,728	40,728	106,070	106,070

Page | 60

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

17 BORROWINGS (continued)

==> picture [480 x 32] intentionally omitted <==

----- Start of picture text -----

Chattels & Premium Radium ATO
mortgages funding Capital [(1) ] payment plan [(2) ] Total
$ $ $ $ $
----- End of picture text -----

Balance on 1 July 2023	49,754	-	-	-	49,754
Financing of premium funding facility	-	188,594	-	-	188,594
Loans and borrowings received	-	-	198,080	-	198,080
Financing of ATO payment plan	-	-	-	178,856	178,856
Interest charge	4,316	6,603	5,236	6,737	22,892
Interest paid	(4,316)	(5,954)	-	-	(10,270)
Principal repaid	(18,371)	(140,149)	-	(160,000)	(318,520)
ATO R&D refund paid to Radium	-	-	(228,267)	-	(228,267)
R&D refund repaid to Company	-	-	24,951	-	24,951
Balance on 30 June 2024	31,383	49,094	-	25,593	106,070
Financing of premium funding facility	-	172,743	-	-	172,743
Interest charge	2,311	8,272	-	-	10,583
Interest paid	(2,311)	(8,272)	-	-	(10,583)
Principal repaid	(20,376)	(192,116)	-	(25,593)	(238,085)
Balance on 30 June 2025	11,007	29,721	-	-	40,728

(1) On 16 October 2023, the Company secured a loan through Radium Capital for $198,080 (before costs of $764) as an advance on 80% of the Group’s estimated ATO R&D claim, plus interest payable at 16% p.a. The R&D grant was paid to Radium Capital with the balance refunded to the Company on 14 December 2023.

(2) On 9 November 2023, RemSense Pty Ltd, a subsidiary of RemSense Technologies Limited, entered a payment plant with the ATO for its September 2023 and October 2023 BAS and PAYGW liabilities totalling $178,856. Repayments were $20,000 per month for nine months with the balance including 11.15% interest making up the tenth instalment.

Refer to note 21 for further information on financial instruments.

Page | 61

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

18 LEASE LIABILITIES

Accounting Policy

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that to not depend on an index or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following:

future lease payments arising from a change in an index, or a rate used
residual guarantee
lease term, or
certainty of a purchase option and termination penalties.

When a lease liability is remeasured, an adjustment is made to the corresponding right-of-use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Opening balance	92,086	183,016
Recognition of lease liabilities	302,703	-
Interest charged	1,766	10,436
Less principal repayments	(92,086)	(101,366)
Lease liabilities included in the consolidated statement
of financialposition	304,469	92,086
Current	61,711	92,086
Non-current	242,758	-
	304,469	92,086

Refer to note 21 for further information on financial instruments.

Page | 62

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

19 CAPITAL AND RESERVES

Accounting Policy

Ordinary shares are classified as equity.

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

Issued capital

==> picture [482 x 53] intentionally omitted <==

----- Start of picture text -----

Ordinary shares
Number of shares Amount in $
2025 2024 2025 2024
----- End of picture text -----

Balance on 1 July	164,859,687	93,770,089	8,827,931	7,204,024
Issue of shares on conversion of performance rights	1,000,000	-	-	-
Issue of shares on conversion of options	916,675	-	36,667	-
Issue of shares in lieu of consulting fees	457,627	-	27,000	-
Issue of fully paid shares for cash	-	71,089,598	-	1,818,957
Capital raising costs	-	-	(1,401)	(195,050)
Balance on 30 June	167,233,989	164,859,687	8,890,197	8,827,931

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

There is no current on-market share buy-back.

Reserves

Predecessor accounting reserve

The predecessor accounting reserve arises from the capital reorganisation and records the net liabilities of RemSense Technologies Limited as at the acquisition date being 14 April 2021.

Share-based payments reserve

The share-based payments reserve represents the fair value of performance rights and shares to be issued to directors, consultants, and employees. This reserve will be transferred to issued capital once the shares are issued or reversed through retained earnings if the options expire or are cancelled. Refer to note 20.

Page | 63

Notes to the Consolidated Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

19 CAPITAL AND RESERVES (continued)

Reserves (continued)

==> picture [482 x 26] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Predecessor accounting	(8,674)	(8,674)
Options	1,216,354	433,615
Performance rights	44,115	59,322
	1,251,795	484,263

The following table shows the movement in the options reserve during the year:

==> picture [489 x 39] intentionally omitted <==

----- Start of picture text -----

Options
Number of options Amount in $
2025 2024 2025 2024
----- End of picture text -----

Balance on 1 July	45,081,500	11,585,000	433,615	59,306
Issue of 3.8 cents options to Directors, expiring on 30-Nov-29	15,000,000	-	265,350	-
Issue of 3.8 cents options to Consultants, expiring on 30-Nov-29	2,000,000	-	35,380	-
Issue of 10 cents options to Consultants & employees, expiring on 19-Mar-28	11,500,000	-	306,545	-
Exercise of 4 cents options, expiring on 09-Nov- 26	(916,675)	-	(36,667)	-
Vesting expense related to 4 cents options, expiring on 31-Mar-29, granted on 16-May-24	-	-	188,297	-
Vesting expense related to 4 cents options, expiring on 31-Mar-29, granted on 20-Jun-24	-	-	23,834	-
Cancellation of options on employee termination	-	(670,000)	-	(32,130)
Expired and exercised Class A Director &
founder options issued 19-Mar-21	-	-	-	332,682
Class B options issued on exercise of Class A options (fair value embedded in class A options)	-	1,020,000	-	-
Issue of 15 cent options to a KMP, expiring on 10- Dec-25	-	2,000,000	-	25,240
Issue of 4 cent options to KMPs, employees and	-		-
consultants, expiring 31-Mar-29		25,200,000		98,536
Issue of listed 15 cent options to a broker,	-		-
expiring on 15-Dec-25		2,446,500		24,465
Issue of 4 cent options to broker, expiring on 09-	-		-
Nov-26		5,000,000		37,550
Expiry of 30-Jun-24, 30 cent options, issued on 20-Apr-21	-	(1,500,000)	-	(112,034)
Balance on 30 June	72,664,825	45,081,500	1,216,354	433,615

Page | 64

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

20 SHARE-BASED PAYMENTS

Accounting Policy

Equity-settled and cash-settled share-based compensation benefits are provided to employees.

Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price.

The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using the Black-Scholes option pricing model that considers the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

The cost of equity-settled transactions is recognised as an expense with a corresponding increase inequity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vet and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying the Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:

during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting date.

All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to settle the liability.

Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether that market condition has been met or not, provided all other conditions are satisfied.

If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification.

If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee, and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.

If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification.

Page | 65

Notes to the Consolidated Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

20 SHARE-BASED PAYMENTS (continued)

The share-based payment expense included within the consolidated financial statements can be broken down as follows:

==> picture [482 x 35] intentionally omitted <==

----- Start of picture text -----

2025 2024
Note $ $
----- End of picture text -----

Options issued to key management personnel	24	392,249	103,151
Rights issued to key management personnel	24	33,508	59,322
Options issued to employees		107,915	13,921
Options issued to consultants		319,242	6,705
Shares issued to service providers		27,000	-
Expensed in the statement of profit or loss		879,914	183,099
Capital raising costs
Options issued to consultants		-	62,015
Capitalised within equity		-	62,015

Share-based payment programme

The Company has adopted an Employee Share Option Scheme (“ESOS”). Under the ESOS, the Company may grant options and rights to Company eligible employees to acquire securities to a maximum of 10% of the Company’s total issued ordinary shares at the date of the grant. The fair value of share options granted is measured using the Black Scholes option pricing model.

The options and rights vest on a time scale as specified in the ESOS and are granted for no consideration. Options and rights granted under the plan carry no dividend or voting rights. When exercisable, each option is converted into one ordinary share. The maximum term of an option is five years from grant date and the exercise price is settled in cash.

Options will not be transferable and will not be listed on the ASX unless the offer provides otherwise or the Board in its absolute discretion approves.

Page | 66

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

20 SHARE-BASED PAYMENTS (continued)

Options

On 30 June 2025, a summary of the Group options issued and not exercised under the share-based payment programme are as follows. Options are settled by the physical delivery of shares:

==> picture [702 x 46] intentionally omitted <==

----- Start of picture text -----

Expired / Vested and
Exercise Balance at Granted Exercised forfeited Balance at exercisable
Grant Vesting Expiry Price the start of during during during the end of at the end of
date date date (cents) the year the year the year the year the year the year
----- End of picture text -----

20-Jul-22	20-Jul-22	30-Jun-25	40	1,020,000	-	-	-	1,020,000	1,020,000
15-Dec-22	15-Dec-22	30-Jun-25	25	515,000	-	-	-	515,000	515,000
28-Jun-23	28-Jun-23	10-Dec-25	15	9,000,000	-	-	-	9,000,000	9,000,000
2-Aug-23	2-Aug-23	10-Dec-25	15	2,446,500		-	-	2,446,500	2,446,500
24-Aug-23	24-Aug-23	10-Dec-25	15	2,000,000		-	-	2,000,000	2,000,000
10-May-24	16-Nov-24	31-Mar-29	4	12,000,000		-	-	12,000,000	12,000,000
10-May-24	13-Jun-24	09-Nov-26	4	5,000,000		(916,675)	-	4,083,325	4,083,325
16-May-24	27-Nov-24	31-Mar-29	4	10,400,000		-		10,400,000	10,400,000
24-May-24	10-Dec-24	31-Mar-29	4	500,000		-	-	500,000	500,000
20-Jun-24	20-Dec-24	31-Mar-29	4	2,200,000		-	-	2,200,000	2,200,000
29-Nov-24	29-Nov-24	30-Nov-29	3.8	-	17,000,000	-	-	17,000,000	17,000,000
14-Mar-25	14-Mar-25	19-Mar-28	10	-	10,000,000	-	-	10,000,000	10,000,000
20-Mar-25	20-Mar-25	19-Mar-28	10	-	1,000,000	-	-	1,000,000	1,000,000
20-Mar-25	25-Mar-25	19-Mar-28	10	-	500,000	-	-	500,000	500,000
Total				45,081,500	28,500,000	(916,675)	-	72,664,825	72,664,825
Weighted average	exercise price	(cents)		8.34	6.30	4.00	-	7.59	7.59

At the reporting date, the weighted average remaining contractual life of options outstanding at year end was 2.90 years.

Page | 67

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

20 SHARE-BASED PAYMENTS (continued)

Key valuation assumptions made at valuation date under the Black & Scholes option pricing model are summarised below:

==> picture [715 x 57] intentionally omitted <==

----- Start of picture text -----

Vesting Share
Number of Exercise Grant Expiry Life of the Volatility Risk free Fair value
Date price
Options Price date date Options Rate at grant
at grant
date
date
(cents) (years) (cents)
(cents)
----- End of picture text -----

Tranche	3	1,020,000	40	18-Jul-22	30-Jun-25	18-Jul-22	2.95	95%	0.09%	4.431	16.0
Tranche	4	515,000	25	15-Dec-22	30-Jun-25	15-Dec-22	2.54	90%	3.31%	5.404	13.5
Tranche	5	9,000,000	15	28-Jun-23	10-Dec-25	28-Jun-23	2.45	90%	3.99%	2.459	6.9
Tranche	6	2,446,500	15	02-Aug-23	15-Dec-25	02-Aug-23	2.37	90%	3.90%	1.000	n/a
Tranche	7	2,000,000	15	24-Aug-23	10-Dec-25	24-Aug-23	2.30	90%	3.90%	1.262	4.87
Tranche	8	5,000,000	4	10-May-24	09-Nov-26	13-Jun-24	2.50	100%	3.92%	0.751	2.0
Tranche	9(1)	12,000,000	4	10-May-24	31-Mar-29	16-Nov-24	4.89	100%	3.92%	1.158	1.8
Tranche	10(1)	10,500,000	4	16-May-24	31-Mar-29	27-Nov-24	4.88	100%	3.92%	1.317	2.0
Tranche	11(1)	500,000	4	24-May-24	31-Mar-29	10-Dec-24	4.85	100%	3.92%	1.642	2.4
Tranche	12(1)	2,200,000	4	20-Jun-24	31-Mar-29	20-Dec-24	4.78	100%	4.02%	1.146	1.8
Tranche	13	17,000,000	3.8	29-Nov-24	30-Nov-29	29-Nov-24	5.01	100%	4.05%	1.769	2.5
Tranche	14.1	10,000,000	10	14-Mar-25	19-Mar-28	14-Mar-25	2.99	100%	3.76%	2.636	5.2
Tranche	14.2	1,000,000	10	20-Mar-25	19-Mar-28	20-Mar-25	2.99	100%	3.76%	2.769	5.4
Tranche	14.3	500,000	10	25-Mar-25	19-Mar-28	25-Mar-25	2.99	100%	3.76%	3.051	5.8

(1) The vesting conditions for tranches 9 to 12 requires the employee to remain as an employee six months after the issue of the options.

Page | 68

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

20 SHARE-BASED PAYMENTS (continued)

Options (continued)

On 30 June 2024, a summary of the Group options issued and not exercised under the share-based payment programme are as follows. Options are settled by the physical delivery of shares:

==> picture [702 x 46] intentionally omitted <==

20-Apr-21	30-Jun-23	30-Jun-24	30	1,000,000	-	-	(1,000,000)	-	-
2-Aug-21	30-Jun-23	30-Jun-24	30	500,000	-		(500,000)	-	-
20-Jul-22	20-Jul-22	30-Jun-25	40	1,020,000	-	-	-	1,020,000	1,020,000
15-Dec-22	15-Dec-22	30-Jun-25	25	1,085,000	-	-	(570,000)	515,000	515,000
28-Jun-23	28-Jun-23	10-Dec-25	15	9,000,000	-	-	-	9,000,000	9,000,000
2-Aug-23	2-Aug-23	10-Dec-25	15	-	2,446,500	-	-	2,446,500	2,446,500
24-Aug-23	24-Aug-23	10-Dec-25	15	-	2,000,000	-	-	2,000,000	2,000,000
10-May-24	16-Nov-24	31-Mar-29	4	-	12,000,000	-	-	12,000,000	-
10-May-24	13-Jun-24	09-Nov-26	4	-	5,000,000	-	-	5,000,000	5,000,000
16-May-24	27-Nov-24	31-Mar-29	4	-	10,500,000	-	(100,000)	10,400,000	-
24-May-24	10-Dec-24	31-Mar-29	4	-	500,000	-	-	500,000	-
20-Jun-24	20-Dec-24	31-Mar-29	4	-	2,200,000	-	-	2,200,000	-
Total				12,605,000	34,646,500	-	(2,170,000)	45,081,500	19,981,500
Weighted average	exercise price	(cents)		19.67	5.41	-	27.49	8.34	13.78

At the reporting date, the weighted average remaining contractual life of options outstanding at year end was 3.37 years.

Page | 69

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

20 SHARE-BASED PAYMENTS (continued)

Performance rights

On 30 June 2025, a summary of the Group options issued and not exercised are as follows:

Grant date	Vesting date	Expiry date	Balance at the start of theyear	Granted during theyear	Exercised during theyear Expired / forfeited during theyear	Balance at the end of theyear Vested and exercisable at the end of theyear
07-Sep-23	07-Sep-24	07-Sep-25	-	1,000,000	(1,000,000) -	- -
07-Sep-23	07-Sep-25	07-Sep-25	-	1,000,000	- -	1,000,000 -
			-	2,000,000	(1,000,000) -	1,000,000 -

Each performance right represents a right to have issued one fully paid ordinary share at the end of the performance period. No exercise price will be payable and the applicable performance hurdles must be met to be eligible to receive the shares.

On 24 August 2023, Warren Cook received 2,000,000 performance rights as part of his contract of employment. 1,000,000 performance rights were vested and converted to fully paid ordinary shares on 7 September 2024. Subsequent to the year end, the balance of the performance rights was vested and exercisable on 7 September 2025.

The fair value of the expense is based on the share price on grant date (4.9 cents), expensed over vesting period.

Page | 70

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

21 FINANCIAL INSTRUMENTS

Accounting Policy

Recognition and derecognition

Financial assets and liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred.

A financial liability is derecognised when it is extinguished, discharged, cancelled, or expires.

Classification and initial measurement of financial assets

All financial assets are initially measured at fair value adjusted for transaction costs (where applicable).

For subsequent measurement, financial assets are amortised at cost

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses.

The classification is determined by both:

the entity’s business model for managing the financial asset; and
the contractual cash flow characteristics of the financial asset.

Subsequent remeasurement of financial assets Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):

they are held within a business model whose objective is to hold the financial assets to collect its contractual cash flows
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised costs using the effective interest method.

Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments as well as listed bonds that were previously classified as held-to-maturity under AASB 139.

Page | 71

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

21 FINANCIAL INSTRUMENTS (continued)

Accounting Policy (continued)

==> picture [473 x 8] intentionally omitted <==

Classification and measurement of financial liabilities

The Group’s financial liabilities include borrowings, trade, and other payables.

Financial liabilities are initially measured at fair value, and where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss.

Subsequently, financial liabilities are initially measured at amortised cost using the effective interest method.

All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income.

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.

The Group’s overall strategy remains unchanged from 2024.

The capital structure of the Group consists of cash and cash equivalents, borrowings, and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.

None of the Group’s entities are subject to externally imposed capital requirements.

Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as tax and general administrative outgoings.

Financial risk management objectives

The Group is exposed to market risk (including foreign currency exchange rate risk and interest rate risk), credit risk and liquidity risk.

The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed on a continuous basis to reflect changes in market conditions and the Group’s activities. The Group does not trade financial instruments, including derivative financial instruments, for speculative purposes.

Page | 72

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

21 FINANCIAL INSTRUMENTS (continued)

Market risk

The Group’s activities expose it primarily to the financial risks of changes in interest rates.

There has been no change to the Group’s exposure to market risks or the manner it manages and measures the risk from the previous period.

Interest rate risk management

The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings.

The Group’s exposure to interest rate on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest rate risk sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to interest rates for nonderivative instruments at the balance date.

The Group’s sensitivity to interest rates is immaterial.

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties, confirming references, and setting appropriate credit limits. The maximum exposure to credit risk at the reporting date to recognise financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes the financial statements. The Group does not hold any collateral.

The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected credit loss allowance for trade receivables.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

The expected credit loss rates are based on the payment profiles of sales over a period of 24 months before 30 June 2025 and the corresponding historical credit losses experienced within this period.

The loss allowance on all financial assets is measured by considering the probability of default. Receivables are in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates the Group is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Group.

Page | 73

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

21 FINANCIAL INSTRUMENTS (continued)

Credit risk management (continued)

The historical loss rates are adjusted to reflect current and forward-looking information has adopted a lifetime expected credit loss allowance in estimating expected credit losses to trade receivables through a matrix using overdue days. This provision is considered representative across all customers based on recent sales experience, historical collection rates and forward-looking information that is available. As disclosed in note 10, no provision for expected credit loss has been made.

Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity, and a failure to make contractual payments for a period greater than one year.

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk management framework for the management of the Group’s short, medium, and long-term funding and liquidity management requirements.

The Group manages liquidity risk by maintaining adequate banking and borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities, excluding liabilities associated with discontinued operations.

Non-derivative financial liabilities

The following table details the Group’s expected contractual maturities for its non-derivative financial liabilities.

These have been drawn up based on undiscounted contractual maturities of the financial liabilities based on the earliest date the Group can be required to repay.

The table includes both interest and principal cash flows.

==> picture [494 x 64] intentionally omitted <==

----- Start of picture text -----

Weighted Less than 6 months 1 – 5 years
average 6 months to 1 year
interest
rate
% $ $ $
----- End of picture text -----

30 June 2025
Trade and other payables (including salary and
superannuation liabilities)	n/a	253,591	-	-
Borrowings (including right of use lease liabilities)	6.84	48,206	44,840	250,385
		301,797	44,840	250,385
30 June 2024
Trade and other payables (including salary and
superannuation liabilities)	n/a	223,095	-	-
Borrowings (including right of use lease liabilities)	7.43	134,073	53,076	11,007
		357,168	53,076	11,007

Page | 74

Notes to the Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

21 FINANCIAL INSTRUMENTS (continued)

Fair value measurement

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy.

The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Transfers

There have been no transfers between the levels of the fair value hierarchy during the year ended 30 June 2025.

Not measured at fair value

The Group has various financial instruments which are not measured at fair value on a recurring basis in the statement of financial position.

The Directors consider that the carrying amounts of current receivables, current payables and current borrowings are a reasonable approximation to their fair values.

The methods and valuation techniques used for the purposes of measuring fair values are unchanged compared to the previous reporting period.

22 SUBSIDIARIES

The consolidated financial statements incorporate the assets, liabilities, and results of the following wholly owned subsidiary in accordance with the accounting policy described in note 1.4:

Name of subsidiary	Place of incorporation	Equity Interests 2025 2024 % %	Equity Interests 2025 2024 % %
RemSense Pty Ltd	Australia	100	100

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation.

Page | 75

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

23 PARENT COMPANY DISCLOSURES

Accounting Policy

The accounting policies of the parent entity, which has been applied in determining the financial information shown below, are the same as those applied in the consolidated financial statements.

As at, and throughout the financial year ended 30 June 2025, the parent entity of the Group was RemSense Technologies Limited.

==> picture [482 x 28] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Result of the parent entity
Loss for the year	(2,022,633)	(2,306,165)
Total comprehensive loss for the year	(2,022,633)	(2,306,165)
Financial position of parent entity at year end
Current assets	44,667	223,814
Total assets	82,133	1,175,471
Current liabilities	(197,842)	(183,726)
Total liabilities	(197,842)	(183,726)
Total equity of the parent entity comprising of:
Share capital	8,159,313	8,097,047
Reserves	1,297,136	492,937
Accumulated losses	(9,572,158)	(7,598,239)
Total equity	(115,709)	991,745

Page | 76

Notes to the Financial Report

RemSense Technologies Limited

For the year ended 30 June 2025

24 RELATED PARTIES

Accounting Policy

Key management personnel compensation

Directors’ remuneration is expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount because of past service provided by the employee and the obligation can be estimated reliably.

Key management personnel compensation

Key management personnel compensation comprises the following:

==> picture [482 x 27] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

Short-term employee benefits	368,673	513,116
Long-term employee benefits	-	(58,957)
Post-employment benefits	40,824	56,154
Share-based payments – options	392,249	103,151
Share-based payments – performance rights	33,508	59,322
	835,254	672,786

25 AUDITOR’S REMUNERATION

The auditor of RemSense Technologies Limited is BDO Audit Pty Ltd. During the financial year the following fees were paid or payable for the services provided by BDO Australia, the auditor of the Group and its network firms:

==> picture [482 x 39] intentionally omitted <==

----- Start of picture text -----

2025 2024
$ $
----- End of picture text -----

BDO Australia
*Audit and other assurance services*
Audit and review of financial reports	107,007	90,159
*Non-audit services*
Taxation services	24,668	32,452
Total remuneration services of BDO Australia	131,675	122,611

Page | 77

Notes to the Financial Report For the year ended 30 June 2025

RemSense Technologies Limited

26 MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

As announced to the market on 2 July 2025, following options were expired;

1,609,881 options exercisable at $0.40
515,000 options exercisable at $0.25

On 7 September 2025, the second tranche of performance rights of 1,000,000 were vested and became exercisable on the second anniversary of Warren Cook’s appointment as CEO of the Company.

On 11 September 2025, the Company secured its first contract with Shell Energy, valued at $267,520, to deliver an advanced digital visualisation platform supporting facility commissioning.

On 12 September 2025, the Company held a general meeting at which shareholders approved the following issuances;

462,962 fully paid ordinary shares and 231,481 free-attaching options to each of the directors, respectively; and
5,000,000 options to the broker engaged by the Company in connection with the Capital raising on 4 August 2025

Page | 78

Consolidated Entity Disclosure Statement For the year ended 30 June 2025

RemSense Technologies Limited

CONSOLIDATED ENTITY DISCLOSURE STATEMENT As of 30 June 2025

Basis of preparation

This consolidated entity disclosure statement has been prepared in accordance with the s295(3A)(a) of the Corporations Act 2001 and includes the required information for RemSense Technologies Limited and the entities it controls in accordance with AASB 10 Consolidated Financial Statements.

Name of entity	Type of entity	Place formed or incorporated	Percentage of share capital held (if applicable) Australian tax resident or foreign tax resident Foreign tax jurisdiction (if applicable)	Percentage of share capital held (if applicable) Australian tax resident or foreign tax resident Foreign tax jurisdiction (if applicable)	Percentage of share capital held (if applicable) Australian tax resident or foreign tax resident Foreign tax jurisdiction (if applicable)
RemSense Technologies Limited	Body Corporate	Australia	n/a	Australian	n/a
RemSense Pty Ltd	Body Corporate	Australia	100%	Australian	n/a

At the end of the financial year, no entity within the consolidated entity was a trustee of a trust within the consolidated entity, a partner in a partnership within the consolidated entity, or a participant in a joint venture within the consolidated entity.

Page | 79

Directors’ Declaration

RemSense Technologies Limited

For the year ended 30 June 2025

DIRECTORS’ DECLARATION

In accordance with a resolution of the Directors of RemSense Technologies Limited, we state that:

In the directors’ opinion:

The financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001, and other mandatory professional reporting requirements.

2. The attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as disclosed in note 1.2.

The financial statements and notes give a true and fair view of the Group’s financial position as of 30 June 2025 and of its performance for the financial year ended on that date.
There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
The Consolidated Entity Disclosure Statement on page 79 is true and correct.

This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the year ended 30 June 2025.

On behalf of the Board

==> picture [67 x 83] intentionally omitted <==

Warren Cook

Managing Director

22 September 2025 Perth

Page | 80

Tel: +61 8 6382 4600 Level 9, Mia Yellagonga Tower 2 Fax: +61 8 6382 4601 5 Spring Street www.bdo.com.au Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia

==> picture [78 x 30] intentionally omitted <==

INDEPENDENT AUDITOR'S REPORT

To the members of RemSense Technologies Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of RemSense Technologies Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2025, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial report, including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration.

In our opinion the accompanying financial report of the Group, is in accordance with the Corporations Act 2001 , including:

(i) Giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its financial performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to Note 1.5 in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern and therefore the group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this matter.

==> picture [78 x 30] intentionally omitted <==

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report.

Revenue Recognition

Key audit matter	How the matter was addressed in our audit

The Group has several material revenue streams in the form of engineering services, scanning jobs and Software as a Service (SaaS) contracts. The revenue streams are material to the financial report. Management focuses on revenue as the key driver by which the performance of the Group is measured. Refer to Note 4 in the financial report for disclosures relating to the Group’s revenue accounting policy and judgements applied in revenue recognition. The core principle of AASB 15 Revenue from contracts with customers, is that an entity should recognise revenue to depict the transfer of promised services to customers that reflects the consideration to which the entity expects to be entitled for those services. Revenue recognition is a key audit matter due to the significance of revenue to the financial report and the complex nature of accounting for the appropriate timing of revenue related to the individual revenue streams.	Our procedures included, but were not limited to the following: • Assessing the appropriateness of management’s revenue recognition policy, ensuring that the policy is in accordance with the five step model adopted by the relevant Australian Accounting Standard AASB 15; • Understanding and documenting the process and controls used by the group in recording revenue; • Checking a sample of revenue transactions to evaluate whether they were appropriately recorded as revenue ensuring the amounts recorded agree to supporting evidence; • Testing a sample of outstanding customer contracts at year end and agreeing to supporting records to ensure that contract assets and contract liabilities have been recognised in accordance with the accounting standards and the Group’s accounting policy; • Performing cut-off procedures to ensure that revenue was captured in the appropriate financial year; and • Assessing the adequacy of the related disclosures in note 4 of the financial report.

==> picture [78 x 30] intentionally omitted <==

Other information

The directors are responsible for the other information. The other information comprises the information contained in Group report for the year ended 30 June 2025 but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the Financial Report

The directors of the Company are responsible for the preparation of:

a) the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001 , and

for such internal control as the directors determine is necessary to enable the preparation of:

i) the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

==> picture [78 x 30] intentionally omitted <==

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:

https://www.auasb.gov.au/media/bwvjcgre/ar1_2024.pdf

This description forms part of our auditor’s report.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 15 to 25 of the directors’ report for the year ended 30 June 2025.

In our opinion, the Remuneration Report of RemSense Technologies Limited, for the year ended 30 June 2025, complies with section 300A of the Corporations Act 2001 .

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

BDO Audit Pty Ltd

==> picture [98 x 97] intentionally omitted <==

Ashleigh Woodley

Director

Perth, 22 September 2025

Securities Exchange Information

RemSense Technologies Limited

SECURITIES EXCHANGE INFORMATION

The shareholder information set out below was applicable on 16 September 2025:

1. Distribution of ordinary shares

==> picture [483 x 32] intentionally omitted <==

----- Start of picture text -----

Range Total holders Ordinary shares % of issued capital
----- End of picture text -----

1 – 1,000	44	17,475	0.01
1,001 – 5,000	236	638,614	0.33
5,001 – 10,000	123	1,025,744	0.53
10,001 – 100,000	303	11,133,922	5.74
100,001 and over	153	181,199,719	93.39
Total	859	194,015,474	100.00

There were 431 holders of less than a marketable parcel of ordinary shares.

2. Distribution of listed options

==> picture [483 x 32] intentionally omitted <==

----- Start of picture text -----

Range Total holders Ordinary shares % of issued capital
----- End of picture text -----

1 – 1,000	22	11,522	0.07
1,001 – 5,000	21	49,582	0.31
5,001 – 10,000	15	108,732	0.68
10,001 – 100,000	27	894,608	5.59
100,001 and over	25	14,926,013	93.34
Total	110	15,990,457	100.00

3. Substantial shareholders

The substantial shareholders are set out below:

	Number of shares
Richard Pace	30,351,005
Trench Super Pty Ltd	13,587,638
Adrian John Hollis	12,814,473
Netwealth Investments Limited	12,536,557

Page | 85

Securities Exchange Information

RemSense Technologies Limited

4. Voting rights

Ordinary shares

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll, every member present or by proxy shall have one vote for every share held.

Options and rights

No voting rights.

5. Corporate Governance Statement

In accordance with Listing Rule 4.10.3, the Company’s Corporate Governance Statement can be found on the Company’s website.

Refer to: https://remsense.com.au/investors/corporate-governance/

6. Unlisted options

==> picture [483 x 32] intentionally omitted <==

----- Start of picture text -----

Grant date Number Number of Expiry date Exercise price
holders (cents)
----- End of picture text -----

28-Jun-2023	9,000,000	3	10-Dec-2025	15
24-Aug-2023	2,000,000	1	10-Dec-2025	15
09-Nov-2023	41,044,758	111	09-Nov-2026	4
10-May-2024	25,100,000	21	31-Mar-2029	4
29-Nov-2024	17,000,000	5	30-Nov-2029	3.8
20-Mar-2025	11,500,000	4	19-Mar-2028	10
04-Aug-2025	4,000,000	1	30-Jun-2028	10
11-Aug-2025	13,205,557	34	09-Nov-2026	4

7. Performance rights

Grant date	Number	Number of	Expiry date
		holders
24-Aug-2023	1,000,000	1	10-Dec-2025

Page | 86

Securities Exchange Information

RemSense Technologies Limited

8. Twenty largest shareholders on 16 September 2025

==> picture [482 x 39] intentionally omitted <==

----- Start of picture text -----

Ordinary shares
Number % of issued
Shareholders held shares
----- End of picture text -----

VALRICH SUPERANNUATION PTY LTD	17,851,005	9.20
TRENCH SUPER PTY LTD	13,387,638	6.90
ADRIAN JOHN HOLLIS	12,814,473	6.60
NETWEALTH INVESTMENTS LIMITED	12,536,557	6.46
RICHARD PACE	12,500,000	6.44
ENDEAVOUR RIVER PTY LTD	7,250,000	3.74
MR NICHOLAS JOHN CLEGG	5,825,000	3.00
ROSHERVILLE PTY LTD	5,750,000	2.96
MR BRYANT JAMES MCLARTY	4,588,873	2.37
OMNIVEST PTY LTD	4,019,786	2.07
RIGGERS SPLASH FOR CASH PTY LTD <RIGGERS SPLASH FOR CASH	3,960,000	2.04
A/C>
GRANT STREET PTY LTD	3,745,777	1.93
SUNLORA PTY LTD	3,038,265	1.57
JON EDWARDS SUPER PTY LTD	2,925,926	1.51
BIOSYNERGY INTERNATIONAL PTY LTD	2,778,168	1.43
MR FRANCIS JOSEPH MAHER & MRS SHARON JANE MAHER <MAHER	2,635,137	1.36
FAMILY A/C>
10 BOLIVIANOS PTY LTD	2,524,650	1.30
EGMONT PTY LTD	2,260,112	1.16
SUTHO ONE PTY LTD	1,958,122	1.01
LITTLE BREAKAWAY PTY LTD	1,861,111	0.96

Page | 87

Securities Exchange Information

RemSense Technologies Limited

9. Twenty largest listed option holders on 16 September 2025

==> picture [482 x 39] intentionally omitted <==

----- Start of picture text -----

Listed options
Number % of issued
Option holders held options
----- End of picture text -----

MR LEIGH MACKAY	2,596,502	16.24
OUTBACK CAPITAL PTY LTD	2,088,888	13.06
MR JAMES MICHAEL HALLION & MISS BRIDGET ANNE HALLION <JBHAL	1,200,505	7.51
SUPERFUND A/C>
SURVEYOR HOLDINGS PTY LTD	1,000,000	6.25
MR FRANCIS JOSEPH MAHER & MRS SHARON JANE MAHER <MAHER	1,000,000	6.25
FAMILY A/C>
MR ILAN SAUL DAVIDOFF	1,000,000	6.25
MBA INVESTMENTS PTY LTD	750,001	4.69
MR MD AKRAM UDDIN	625,051	3.91
SMB GROUP HOLDINGS PTY LTD	500,000	3.13
CLIFFE & CO PTY LTD	500,000	3.13
MBA INVESTMENTS PTY LTD	408,334	2.55
GEN Y INVESTING PTY LTD	360,000	2.25
GILSMITH SMSF PTY LTD	350,000	2.19
RIYA INVESTMENTS PTY LTD	333,333	2.08
MS ANGELA MARGARET DAY	300,000	1.88
MISS MICHAELA JANE MCARTHUR	281,750	1.76
SUTHO ONE PTY LTD	256,733	1.61
SIMMO ENTERPRISES PTY LTD	240,000	1.50
ASENNA WEALTH SOLUTIONS PTY LTD	240,000	1.50
CAMBOURNE CAPITAL PTY LIMITED	200,000	1.25

Page | 88

RemSense Technologies Limited

Corporate Directory

CORPORATE DIRECTORY

Directors

Mr Ross Taylor Mr Warren Cook Mr John Clegg

Company Secretary

Mr David McArthur Mr Jordan McArthur

Registered and Principal Office

Suite 0101, Level 1, 5 Mill Street Perth WA 6000

Telephone: +61 8 6118 5610

Auditor

BDO Audit Pty Ltd Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth WA 6000

Share Registry

Automic Group Level 5, 191 St Georges Terrace Perth WA 6000

Banker

National Australia Bank 100 St Georges Terrace Perth WA 6000

Solicitor

Steinepreis Paganin Level 4, The Read Buildings 16 Milligan Street Perth WA 6000

Telephone: +61 1300 288 664

ASX Code

Shares: REM Options: REMO

Website and Email

Website: Email:

www.remsense.com.au [email protected]

Page | 89

AI assistant

REMSENSE TECHNOLOGIES LIMITED — Annual Report 2025

65684_rns_2025-09-22_d1af2afa-289b-4b4f-b990-dc2bb5e5965e.pdf

ANNUAL FINANCIAL REPORT