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SKIN ELEMENTS LIMITED Interim / Quarterly Report 2026

Feb 26, 2026

65803_rns_2026-02-26_30374206-2671-43b5-aa81-944d1f0bcb47.pdf

Interim / Quarterly Report

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Interim Report

Interim Report SKIN ELEMENTS LIMITED December 2025 A B N 9 0 6 0 8 0 4 7 7 9 4 and its controlled entities

INTERIM REPORT

31 December 2025

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Corporate directory

Current Directors

Dr Peter Malone Chairman and Chief Executive Officer Filippo (Phil) Giglia Non-Executive Director Rod Nicholas Non-Executive Director Joshua Gordon Non-Executive Director

Company Secretary

Stuart Usher

Registered Office

Street + Postal: 1255A Hay Street West Perth WA 6005 Telephon e: +61 (0)8 6311 1900 Facsimile: +61 (0)8 6311 1999 Email: [email protected] Website: www.skinelementslimited.com

Auditors

BDO Audit Pty Ltd Street: Mia Yellagonga Tower 2 5 Spring Street Perth WA 6000 Telephon e: +61 (0)8 6382 4600 Facsimile: +61 (0)8 6382 4601 Website: www.bdo.com.au

Share Registry MUFG Corporate Markets (AU) Street: Level 12, QV1 Building, 250 St Georges Terrace Perth WA 6000 Telephone: 1300 554 474 (within Australia) +61 1300 554 474 (International) Facsimile: +61 (0)8 6370 4203 Email: [email protected] Website: au.investorcentre.mpms.mufg.com

Securities Exchange

Australian Securities Exchange Street: Level 40, Central Park, 152-158 St Georges Terrace Perth WA 6000 Telephone: 131 ASX (131 279) (within Australia) Telephone: +61 (0)2 9338 0000 Facsimile: +61 (0)2 9227 0885 Website: www.asx.com.au ASX Code: SKN

PAGE | i

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D

INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Contents

Results for announcement to the market ................................................................................................................................. 1 Directors’ report ........................................................................................................................................................................ 3 Auditor’s declaration of independence ..................................................................................................................................... 7 Condensed consolidated statement of profit or loss and other comprehensive income.......................................................... 8 Condensed consolidated statement of financial position ........................................................................................................ 9 Condensed consolidated statement of changes in equity ....................................................................................................... 10 Condensed consolidated statement of cash flows .................................................................................................................. 11 Notes to the consolidated financial statements ...................................................................................................................... 12 Directors’ declaration .............................................................................................................................................................. 23 Independent auditor’s review report ...................................................................................................................................... 24

PAGE | ii

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Results for announcement to the market

for the half-year ended 31 December 2025

Results for announcement to the market
for the half-year ended 31 December 2025		 Results for announcement to the market
for the half-year ended 31 December 2025
1.
REPORTING PERIOD(item 1)
Report for the period ended:
31 December 2025
Previous corresponding period is half-year ended:
31 December 2024
2.
RESULTS FOR ANNOUNCEMENT TO THE MARKET
Movement		 Percentage
Amount
%
$
Revenues from ordinary activities_(item 2.1)
Decrease
Loss from ordinary activities after tax attributable to members
(item 2.2)
Increase
in loss
Loss after tax attributable to members(item 2.3)_
Increase
in loss		 (41.23)
to
183,984
232.50
to
(4,010,205)
232.50
to
(4,010,205)
2.1. Dividends (items 2.4 and 5) Amount per
Franked amount
Security
per security
₵
%
Interim dividend nil
n/a
Final dividend nil
n/a
Record date for determining entitlements to the dividend_(item 2.5)
n/a
2.2. _Brief explanation of any of the figures reported above necessary to enable the figures to be understood (item 2.6):
The revenue and losses for the period reflect continued focus on the development and commercialisation of the Company’s
SE Formula technology brands and applications. The loss includes a non-cash accounting loss of $3,302,376 from the
settlement of $1,000,000 of Director liabilities via shares and options, measured at fair value at the deemed issue date in
accordance with IFRIC 19 and AASB 9, as detailed in note 10.2.1b
3.
DIVIDENDS(item 6)AND RETURNS TO SHAREHOLDERS INCLUDING DISTRIBUTIONS AND BUY BACKS
Nil.
3.1. Details of dividend or distribution reinvestment plans in operation are described below (item 6):
Not applicable

3. DIVIDENDS (item 6) AND RETURNS TO SHAREHOLDERS INCLUDING DISTRIBUTIONS AND BUY BACKS Nil.

3.1. Details of dividend or distribution reinvestment plans in operation are described below (item 6) : Not applicable

4.
RATIOS		 6 months to 6 months to
31 December 31 December
2025 2024
$ $
4.1. Financial Information relating to 4.2:
Earnings for the period attributable to owners of the parent
Net assets / (liabilities)
Less: Intangible assets
Net tangible assets / (liabilities)
Fully paid ordinary shares
(4,010,205) (1,206,091)
1,580,573 (1,967,135)
- -
1,580,573 (1,967,135)
Previous
Current Corresponding
Period Period
No. No.
2,999,714,115 830,652,760
4.2. Net tangible assets / (liability) backing per share (cents) (item 3): Previous
Current Corresponding
Period Period
₵ ₵
0.053 (0.237)

PAGE | 1

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES ABN 90 608 047 794

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

Results for announcement to the market

for the half-year ended 31 December 2025

Results for announcement to the market
for the half-year ended 31 December 2025		 Results for announcement to the market
for the half-year ended 31 December 2025
5.
DETAILS OF ENTITIES OVER WHICH CONTROL HAS BEEN GAINED OR LOST DURING THE PERIOD:(item 4)
5.1. Control gained over entities
Name of entities_(item 4.1)
Nil
Date(s) of gain of control(item 4.2)
n/a
5.2. _Loss of control of entities
Name of entities_(item 4.1)
Nil
Date(s) of loss of control(item 4.2)_
n/a
5.3. Contribution to consolidated loss from ordinary activities after tax by the
controlled entities to the date(s) in the current period when control was
gained / lost(item 4.3).
n/a
5.4. Loss from ordinary activities after tax of the controlled entities for the
whole of the previous corresponding period(item 4.3)
n/a
6.
DETAILS OF ASSOCIATES AND JOINT VENTURES:(item 7)
Name of entities_(item 7)
Nil
Percentage holding in each of these entities(item 7)_
N/A
6 months to
6 months to
31 December
31 December
2025
2024
$ $
Aggregate share of profits (losses) of these entities_(item 7)_ N/A
N/A

7. The financial information provided in the Appendix 4D is based on the interim final report (attached), which has been prepared in accordance with Australian Accounting Standards.

8. The report is based on accounts which have been reviewed by the Company’s independent auditor (item 9).

PAGE | 2

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Directors’ report

Your directors present their report on the Group, consisting of Skin Elements Limited ( Skin Elements or the Company ) and its controlled entities (collectively the Group ), for the half-year ended 31 December 2025.

Skin Elements is listed on the Australian Securities Exchange (ASX: SKN).

1. Directors

The names of Directors in office at any time during or since the end of the half-year are:

==> picture [11 x 10] intentionally omitted <==

Dr Peter Malone Chairman and Chief Executive Officer ( CEO ) Filippo (Phil) Giglia Independent Non-Executive Director Rod Nicholas Independent Non-Executive Director (appointed 24 February 2026) Joshua Gordon Independent Non-Executive Director (appointed 24 February 2026) Stuart Usher Independent Non-Executive Director (resigned 24 February 2026)

==> picture [11 x 10] intentionally omitted <==

==> picture [11 x 10] intentionally omitted <==

==> picture [11 x 10] intentionally omitted <==

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( the Directors or the Board )

Directors have been in office since the start of the half-year to the date of this report unless otherwise stated.

2. Operating and financial review

2.1. Nature of Operations and Principal Activities

Skin Elements is a researcher and developer of the innovative proprietary SE Formula[TM] biotechnology. This plant-based and organic sourced SE Formula[TM] is used as a base in the Company’s proprietary flagship products including the SuprCuvr TGAregistered hospital-grade plant-based disinfectant, ECO-Nurture plant bio-stimulant, Soléo Organics natural and organic sunscreen, PapayaActivs natural therapeutics skincare and Elizabeth Jane Natural Cosmetics brand.

2.2. Operations Review

2.2.1. Development of SE Formula[TM]

The Company’s proprietary SE Formula[TM] biotechnology platform underpins all product development activities. The SE Formula[TM] developed in the Company’s laboratories is a ground up research programme undertaken over an intensive 20-year research period and is the core of the Company’s five commercial product platforms.

To date, the Company has developed five highly effective core GREEN-Tech formulas, producing award winning, environmentally safe plant-based alternatives with specifications tested in real world applications, outperforming widely used chemical-based products in consumer, industrial and agriculture markets.

The SE Formula[TM] forms the basis of Skin Elements’ product range:

==> picture [10 x 10] intentionally omitted <==

Elizabeth Jane Natural Cosmetics

==> picture [10 x 10] intentionally omitted <==

Soléo Organics sun protection

==> picture [10 x 10] intentionally omitted <==

PapayaActivs therapeutics skincare

==> picture [10 x 10] intentionally omitted <==

SuprCuvr cleaners and disinfectants, and

==> picture [10 x 10] intentionally omitted <==

ECO-Nurture horticultural plant bio-stimulant

Products with the SE Formula[TM] have scientifically proven efficacy while using only natural and plant-based ingredients and have come to be trusted by consumers. They have all completed phase three development and will all now be readied for commercialization as formula, products or joint venture programmes

2.2.2. ECO-Nurture kiwifruit evaluation complete

ECO-Nurture is a sustainable, horticultural plant bio stimulant technology that is as an effective alternative to chemical-based agricultural sprays currently used in crop disease protection globally.

Over the past three growing seasons, over 6,400 litres of ECO-Nurture concentrate have been delivered to 120 kiwifruit orchards in New Zealand for application and assessment, with positive outcomes on kiwifruit plant protection and productivity without any chemical residue. A number of orchard managers have incorporated ECO-Nurture into their kiwifruit spray protection programmes and ECO-Nurture has been approved under Zespri Crop Allowed Other Compounds ( AOC ) Approval List. Headquartered in New Zealand, Zespri is the world’s largest marketer of kiwifruit with over $5 billion in sales annually.

Skin Elements continues to progress certification for the widespread adoption of ECO-Nurture for the New Zealand kiwifruit industry under approved Zespri Crop Protection Standards and is preparing for commercial roll-out of ECO-Nurture for the 2026 New Zealand kiwifruit growing season.

PAGE | 3

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Directors’ report

2.2.3. SuprCuvr – High performance disinfectant cleaner

SuprCuvr is a TGA registered hospital-grade disinfectant made from the Company’s proprietary 100% plant-based formula.

SuprCuvr is listed on the TGA’s Australian Register of Therapeutic Goods ( ARTG ) in Australia and has Ministry of Primary Industry ( MPI ) registration in New Zealand.

Following a two-year assessment, Spotless has adopted SuprCuvr for daily cleaning and disinfecting of suburban train carriages and stations in the Metro Trains Melbourne urban rail network, supplied and distributed by Bunzl Victoria (MCS facilities) global business cleaning and disinfectant solutions group.

Over the past two years, over 6,000 litres of SuprCuvr concentrate high performance 3-in-1 surface cleaner, glass cleaner and disinfectant cleaner has been delivered to Spotless for evaluation of cleaning and disinfecting train services and high schools in Melbourne. Spotless, a wholly owned subsidiary of Downer EDI Ltd, is the largest integrated facilities service provider throughout Australia and New Zealand across government, education, healthcare and aged care.

2.2.4. Soléo Organics sunscreen delivers performance

Soléo Organics is an award-winning, natural and organic sunscreen formulation, providing a highly effective, highperformance chemical-free sunscreen range. It was the first application borne out of Skin Elements’ SE Formula[TM] research and development program. Soleo Organics has been rated as the number one sunscreen globally out of 1,800 sunscreens by Environmental Working Group ( EWG ), Washington Post (Sprig.com) No1 sunscreen, a finalist in the Clean Beauty Awards, the UK Global Health & Pharma Awards – Best Natural Sunscreen Brand and most recently independently verified by Consumer NZ. Soleo Organics sunscreen formulations are independently tested and certified by the world’s leading testing laboratory to ensure reliability and integrity. Products are sold through the Company’s online store.

2.2.5. PapayaActiv – High concentration therapeutic skincare

PapayaActivs combines a high concentration of natural pawpaw extract with other active natural ingredients to help relieve the symptoms of skin conditions, like psoriasis, rashes, eczema, assist in healing of minor burns and wounds, and relieve mild muscle, joint and arthritic pain. PapayaActivs is listed on the ARTG and is available through the Company’s online store.

2.2.6. Elizabeth Jane Natural Cosmetics

Elizabeth Jane Natural Cosmetics ( EJNC ) is an extensive range of cosmetic skin repair products that utilise a range of responsible sourced ultra-high end natural ingredients formulated to protect, nourish and revitalise damaged skin. EJNC has been extensively test marketed globally and will be included in the future commercialisation programs.

2.2.7. Research and development ( R&D ) tax incentive and Radium Facility

The Company’s innovative research and development programmes for its natural SE FormulaTM Biotechnology sees it eligible for the Federal Government’s R&D Rebate applicable to qualifying R&D expenditure.

During the period, Skin Elements received the R&D Rebate of $610,222 in relation to qualifying R&D expenditure for the 2025 financial year. The Company also repaid $433,256 previously advanced by Radium Capital against this R&D Rebate.

2.2.8. Strategic placement completed and option exercise

During the period Skin Elements completed a $2,500,000 million capital raising (before costs), through a two-tranche placement to professional and sophisticated investors at $0.002 per share. Tranche One of $315,000 was issued under the Company’s ASX LR7.1 and 7.1A capacity, with Tranche Two of $2,185,000 completed following shareholder approval obtained at the Company’s 2025 Annual General Meeting.

The placement proceeds will enable the Company to drive towards commercialisation of its product range which is underpinned by its award-winning SE FormulaTM all-natural antimicrobial biotechnology, and provide additional working capital.

The Company issued a further 75,000,000 shares (and 35,000,000 free attaching options) at $0.002 per share to nominees of 62 Capital Pty Ltd for Lead Manager fees on the placement with a fair value of $150,000 as disclosed in note 10.2.1, and recognised in equity as a capital raising cost.

On 15 December 2025, a further $750,000 was raised by the conversion of 125,000,000 options at $0.006 per share.

2.2.9. Repayment of related borrowings

Following shareholder approval at the 2025 Annual General Meeting held 28 November 2025, the Company issued 500,000,000 shares with 250,000,000 free-attaching options to settle $1,000,000 in outstanding fees and advances, based on a deemed issue price of $0.002 per share, as agreed with Directors. As outlined in note 10.2.1b, the equity instruments were measured at fair value at the deemed date of issue of 11 December 2026 ($0.006) in accordance with IFRIC 19 and AASB 9, resulting in a non-cash loss of $3,302,376 recognised in profit or loss.

PAGE | 4

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Directors’ report

2.3. Financial Review

  • 2.3.1. Key profit and loss measures
Movement
(increased/
decreased)
Movement
$		 6 months to
6 months to
31 December
31 December
2025
2024
$ $
Revenues from ordinary activities
decreased
129,056
Loss from ordinary activities after tax
increased
2,804,114
EBITDA Loss
decreased
457,814
Adjusted EBITDA Loss§
decreased
77,814
2.3.2. Key net asset measures		 183,984
313,040
(4,010,205)
(1,206,091)
(658,135)
(1,115,949)
(658,135)
(735,949)
Movement
(increased/
decreased)
Movement
$		 31 December
30 June
2025
2025
$ $
Cash and cash equivalents
increased
1,672,512
Working capital_(excluding prepayments)
_increased
3,519,523
Net tangible assets
increased
3,517,634
Net assets
increased
3,517,634		 1,732,160
59,648
1,575,095
(1,944,428)
1,580,573
(1,937,061)
1,580,573
(1,937,061)

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

The Group incurred a loss for the half-year of $4,010,205 (31 December 2024: $1,206,091 loss); operating activities produced a net cash out-flow of $1,105,066 (31 December 2024: $483,051 in-flow). As at 31 December 2025, the Group has working capital of $1,575,095 (30 June 2025: $1,944,428 working capital deficit).

The ability of the Group to continue as a going concern is dependent on the Group securing additional debt and/or equity funding and/or generating profits from its normal course of business.

These conditions indicate the existence of a material uncertainty that may cast a significant doubt about the Group's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.

The Directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this financial report.

Based on the cash flow forecasts and other factors referred to above, the Directors are confident that there will be sufficient funds for the Group to meet its obligations and liabilities and are satisfied that the going concern basis of preparation is appropriate.

Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.

The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due.

2.4. Events Subsequent to Reporting Date

As detailed in note 7.1, on 24 February 2026, the Company appointed Mr Rod Nicholas and Mr Joshua Gordon as NonExecutive Directors, and Mr Stuart Usher retired from the Board (remaining as Company Secretary).

There are no other significant after balance date events that are not covered in this Directors' Report or within the financial statements as disclosed in note 7 Events subsequent to reporting date.

§ Adjusted EBITDA is disclosed to provide a clearer view of the company's core operational performance by excluding non-recurring, nonoperating, or non-cash items such as share-based or share-settled payments and restructuring costs. This measure helps investors better assess the company's ability to generate cash flows and compare results across periods and industry peers.

PAGE | 5

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Directors’ report

  • 2.5. Future Developments, Prospects, and Business Strategies

  • Likely developments in the operations, business strategies and prospects of the Group include:

==> picture [10 x 10] intentionally omitted <==

  • The Company will undertake future capital raising through either equity placement facility, private placement or entitlement issue, and the consideration of other equity and debt proposals

==> picture [10 x 10] intentionally omitted <==

  • The Company will continue to focus on development and commercialisation of its natural anti-microbial technology as set out in its review of operations.

Other likely developments, future prospects and business strategies of the operations of the Group and the expected results of those operations have not been included in this report particularly given the early stage of the Company’s commercial operations with its new expanded range of natural and organic products. The Directors believe that the inclusion of such information would be likely to be unreasonably prejudicial to the Group.

3. Auditor independence

The Company’s auditor’s, BDO Audit Pty Ltd’s ( BDO ), independence declaration under section 307C of the Corporations Act 2001 (Cth) for the half-year ended 31 December 2025 has been received and can be found on page 7 and forms part of this Directors’ report for the half-year ended 31 December 2025.

This Report of the Directors, is signed in accordance with a resolution of directors made pursuant to section 306(3) of the Corporations Act 2001 (Cth).

==> picture [208 x 35] intentionally omitted <==

DR PETER MALONE

Chairman and Chief Executive Officer Dated this Friday, 27 February 2026

PAGE | 6

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES ABN 90 608 047 794

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AUDITOR’S DECLARATION OF INDEPENDENCE

PAGE | 7

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D

INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Condensed consolidated statement of profit or loss and other comprehensive income for the half-year ended 31 December 2025

for the half-year ended 31 December 2025
Note 6 months to
6 months to
31 December
31 December
2025
2024
$ $
Continuing operations
Revenue
1.1
Cost of sales
Gross profit
Other income
1.2
Administrative and other costs
Research and development costs
Selling and distribution costs
Operating loss
Interest and finance costs
Fair value loss on debt-to-equity settlement
10.2.1
Loss before tax
2.1.1
Income tax benefit
Net loss for the half-year
Other comprehensive income, net of income tax
Other comprehensive income for the period, net of tax
Total comprehensive income attributable to members of the parent entity
Earnings per share:
Basic and diluted loss per share (cents per share)		 183,984
313,040
(36,523)
(39,215)
147,461
273,825
227,990
420,693
(523,775)
(991,371)
(496,438)
(792,387)
(12,976)
(27,504)
(657,738)
(1,116,744)
(50,091)
(89,347)

(3,302,376)
-
(4,010,205)
(1,206,091)
-
-
(4,010,205)
(1,206,091)
-
-
-
-
(4,010,205)
(1,206,091)
₵
₵
(0.31)
(0.20)

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

PAGE | 8

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Condensed consolidated statement of financial position

as at 31 December 2025

Condensed consolidated statement of financial position
as at 31 December 2025
Note 31 December
30 June
2025
2025
$ $
Current assets
Cash and cash equivalents
Trade and other receivables
3.1.1
Other current assets
Total current assets
Non-current assets
Right of use asset - property, plant, and equipment
Intangible assets
4.1
Total non-current assets
Total assets
Current liabilities
Trade and other payables
3.2.1
Borrowings
3.3.1
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets (deficiency)
Equity
Issued capital
5.1.1
Reserves
5.2
Accumulated losses
Total equity		 1,732,160
59,648
272,279
653,197
3,207
5,096
2,007,646
717,941
2,271
2,271
-
-
2,271
2,271
2,009,917
720,212
424,257
2,212,883
5,087
444,390
429,344
2,657,273
-
-
429,344
2,657,273
1,580,573
(1,937,061)
-
-
32,094,155
25,868,692
1,638,203
335,827
(32,151,785)
(28,141,580)
1,580,573
(1,937,061)

The condensed consolidated statement of financial position is to be read in conjunction with the accompanying notes.

PAGE | 9

SKIN ELEMENTS LIMITED

INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES

ABN 90 608 047 794

APPENDIX 4D

Condensed consolidated statement of changes in equity

for the half-year ended 31 December 2025

for the half-year ended 31 December 2025
Note
Balance at 1 July 2024
Loss for the half-year
Other comprehensive income for the half-year
Total comprehensive income for the half-year
Transaction with owners, directly in equity		 Share-based
Issued
Accumulated
payment
Total
capital
losses
reserve
equity
$ $ $ $
24,444,454
(26,413,119)
335,827
(1,632,838)
-
(1,206,091)
-
(1,206,091)
-
-
-
-
-
(1,206,091)
-
(1,206,091)
Shares issued during the half-year_(net of costs)_ 491,794
-
-
491,794
Share-based payments during the half-year:rights -
-
380,000
380,000
Conversion of Class A performance rights 380,000
-
(380,000)
-
Balance at 31 December 2024
Balance at 1 July 2025
Loss for the half-year
Other comprehensive income for the half-year
Total comprehensive income for the half-year
Transaction with owners, directly in equity
Shares issued during the half-year_(net of costs)_
5.1.1
Share-settled payments during the half-year
10.2.1b
Balance at 31 December 2025		 25,316,248
(27,619,210)
335,827
(1,967,135)
25,868,692
(28,141,580)
335,827
(1,937,061)
-
(4,010,205)
-
(4,010,205)
-
-
-
-
-
(4,010,205)
-
(4,010,205)

3,225,463
-
-
3,225,463

3,000,000
-
1,302,376
4,302,376
32,094,155
(32,151,785)
1,638,203
1,580,573

The condensed consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.

PAGE | 10

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES

ABN 90 608 047 794

Condensed consolidated statement of cash flows

for the half-year ended 31 December 2025

Condensed consolidated statement of cash flows
for the half-year ended 31 December 2025
Note 6 months to
6 months to
31 December
31 December
2025
2024
$ $
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Receipt of_Research and development (R&D) tax incentive_grant income
Interest paid and facility fees
Interest received
Repayment of historical advanced R&D costs previously recognised
Net cash (used in) / provided by operating activities
Cash flows from investing activities
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue costs
Proceeds of borrowings
Repayments of borrowings
Net cash provided by / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents held
Cash and cash equivalents at the beginning of the half-year
Cash and cash equivalents at the end of the half-year
-
(2,682)		 182,671
326,785
(1,091,821)
(950,268)
610,222
1,193,606
(50,091)
(89,347)
-
2,275
(756,047)
-
(1,105,066)
483,051
-
-
3,250,000
-
(39,166)
(7,732)
-
261,410
(433,256)
(789,470)
2,777,578
(535,792)
1,672,512
(52,741)
59,648
115,071
1,732,160
62,330

The condensed consolidated statement of cash flows is to be read in conjunction with the accompanying notes.

PAGE | 11

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D

INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Notes to the consolidated financial statements

for the half-year ended 31 December 2025

In preparing the December 2025 interim financial report, Skin Elements Limited has grouped notes into sections under three key categories:

Section A: How the numbers are calculated ............................................................................................................................ 13 Section B: Unrecognised items ................................................................................................................................................ 18 Section C: Other Information ................................................................................................................................................... 19

Material accounting policies specific to each note are included within that note. Accounting policies that are determined not to be material are not included in the financial statements.

The financial report is presented in Australian dollars, except where otherwise stated.

Company details

The registered office of the Company is: Street + Postal: 1255A Hay Street West Perth WA 6005 Australia

PAGE | 12

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES

ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

SECTION A. HOW THE NUMBERS ARE CALCULATED

This section provides additional information about those individual line items in the financial statements that the Directors consider most relevant in the context of the operations of the Group.

Note
1
Revenue and other income
Note		 6 months to
6 months to
31 December
31 December
2025
2024
$ $
1.1
Revenue
Sales to customers
1.2
Other Income
Research and development tax incentive grant income
Other income		 183,984
313,040
183,984
313,040
227,593
418,441
397
2,252
227,990
420,693
Note
2
Expenses
Note		 6 months to
6 months to
31 December
31 December
2025
2024
$ $
2.1
Expenses by nature
Administration expenses
2.2
217,114
308,700
Advertising and marketing expenses
12,976
27,504
Amortisation
-
3,047
Corporate expenses
2.3
133,233
137,374
Employee benefits expense
2.4
202,963
579,204
Fair value loss on debt-to-equity settlement
10.2.1b
3,302,376
-
Occupancy costs
20,556
52,393
Manufacturing, purchasing, and distribution costs
36,523
39,215
Research and development expenses
496,438
792,387
Total expenses by nature
4,422,179
1,939,824
2.1.1
Reconciliation to net profit or loss before tax
Total revenue and other income
411,974
733,733
_Less:_Total expenses by nature
(4,422,179)
(1,939,824)
Net loss before tax
(4,010,205)
(1,206,091)
-
-
2.2
Administration expenses
Accounting expenses
30,600
55,414
External consulting fees
15,000
15,000
Interest expenses and finance facility costs
50,091
89,347
Other expenses
121,423
148,939
217,114
308,700
4,422,179
1,939,824
411,974
733,733
(4,422,179)
(1,939,824)
(4,010,205)
(1,206,091)
-
-
30,600
55,414
15,000
15,000
50,091
89,347
121,423
148,939
217,114
308,700

PAGE | 13

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D

INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

Note
2
Expenses(cont.)
Note		 6 months to
6 months to
31 December
31 December
2025
2024
$ $
2.3
Corporate expenses
ASX and ASIC fees
Audit expenses
Legal expenses
Share Registry and shareholder communications
2.4
Employee benefits expense
Directors’ fees
Executive services contracts
Wages and salaries – non-R&D
Share-based performance rights
2.4.1		 22,525
22,635
62,490
54,510
25,450
16,342
22,768
43,887
133,233
137,374
60,000
60,000
119,891
119,891
23,072
19,313
-
380,000
202,963
579,204

2.4.1 The Company has issued performance rights to Directors and Consultants which will convert into fully paid shares on achieving certain performance hurdles. These performance rights are recorded at fair value which is amortised over the vesting period (up to four years from date of issue) or derecognised.

Note
3
Financial assets and financial liabilities
3.1
Trade and other receivables
Note		 31 December
30 June
2025
2025
$ $
3.1.1
Current
Trade receivables
18,542
17,228
_Research and development tax incentive_rebate receivable
3.1.2
253,360
635,592
Other receivables
377
377
272,279
653,197
3.1.2
The Group continued its development program during the half-year ended 31 December 2025 resulting in a claim for
research and development tax incentive which has been included as a receivable at year end.		 18,542
17,228
253,360
635,592
377
377
272,279
653,197
3.2
Trade and other payables
Note		 31 December
30 June
2025
2025
$ $
3.2.1
Current
Unsecured
Trade payables
3.2.2
Key management personnel related
9
Sundry payables and accrued expenses
Net Goods and Services Tax payable / (receivable)		 321,006
415,899
59,129
1,676,859
85,251
105,909
(41,129)
14,216
424,257
2,212,883

3.1.2 The Group continued its development program during the half-year ended 31 December 2025 resulting in a claim for research and development tax incentive which has been included as a receivable at year end.

3.2.2 Trade payables are non-interest bearing and usually settled within the lower of terms of trade or 60 days. As at 31 December 2025 creditors amounting to $172,018 were in excess of 60 days (June 2025: $281,930). Of this, $152,623 was settled post balance date.

PAGE | 14

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

Note
3
Financial assets and financial liabilities(cont.)
3.3
Borrowings		 31 December
30 June
2025
2025
$ $
3.3.1
Current
R&D Rebate Advance Facility
Leases – motor vehicle		 -
433,256
5,087
11,134
5,087
444,390
Note
4
Non-financial assets and financial liabilities
4.1
Intangible assets		 31 December
30 June
2025
2025
$ $
SE FormulaTM
Accumulated amortisation
Accumulated impairment
Website development costs
Accumulated amortisation
Accumulated impairment
Total intangibles		 9,859,296
9,859,296
(2,379,486)
(2,379,486)
(7,479,810)
(7,479,810)
-
-
55,410
55,410
(45,230)
(45,230)
(10,180)
(10,180)
-
-
-
-

4.1.1 Key estimates

a. Impairment

The Group assesses intangible assets for impairment at each reporting date in accordance with AASB 136. This involves evaluating conditions specific to the asset that may indicate a change in recoverable amount.

An impairment charge of $7,489,990 was recognised in a prior period against the Group’s intellectual property assets, reducing their carrying amount to nil. The impairment was based on a value-in-use discounted cash flow model, reflecting limited sales history and insufficient contracted sales to support reliable cash flow forecasts. At the current reporting date, these conditions persist and the carrying value remains at nil.

The key estimate relates to the potential reversal of impairment. Under AASB 136, reversals are permitted when there is an indication that the recoverable amount of an asset has increased since the last impairment was recognised. A reversal would be recognised in profit or loss to the extent that the revised carrying amount does not exceed the amount that would have been determined (net of amortisation) had no impairment been recognised previously.

Accordingly, if commercialisation of the intellectual property proves successful and contracted sales provide reliable evidence of positive future cash inflows, some or all of the prior impairment may be reversed.

PAGE | 15

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D

INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

Note
5
Equity
5.1
Issued capital
Note		 31 December
30 June		 31 December
30 June
2025
2025		 2025
2025
No.
No.		 $ $
Fully paid ordinary shares
2,999,714,115
1,049,714,115
5.1.1
Ordinary shares
6 months to
31 December
2025
No.
12 months to
30 June 2025
No.
At the beginning of the period
1,049,714,115
563,986,095
Shares issued during the period:
04.11.24_Debt for equity_
-
166,666,665
04.12.24_Class A performance_
rights converted
5.4.1
-
100,000,000
07.03.25_Rights issue_
-
171,230,552
13.03.25_Oversubscriptions_
-
47,830,803
17.10.25_Tranche 1 Placement_
157,500,000
-
12.12.25_Tranche 2 Placement_
1,092,500,000
-
12.12.25_KMP fee settlement_
10.2.1b
500,000,000
-
12.12.25_Lead manager fee_
10.2.1a
75,000,000
15.12.25_Exercise of options_
5.3.1
125,000,000
Prior period applications
reversed
-
-
Share issue transaction costs
-
-
At end of the period
2,999,714,115
1,049,714,115		 2,999,714,115
1,049,714,115		 32,094,155
25,868,692
6 months to
31 December
2025
No.
12 months to
30 June 2025
No.		 6 months to
31 December
2025
$ 12 months to
30 June 2025
$
25,868,692
24,444,454
-
500,000
-
380,000
-
513,692
-
143,492
315,000
-
2,185,000
-
3,000,000
-
150,000
750,000
(26,113)
(174,537)
(86,833)
2,999,714,115
1,049,714,115		 32,094,155
25,868,692

5.1.2
Treasury shares		 31 December
30 June
2025
2025
No.
No.
At beginning of the period
At end of the period		 25,500,000
25,500,000
25,500,000
25,500,000
5.2
Reserves		 Note 31 December
30 June
2025
2025
$ $
5.2.1
Summary of share-based payment reserve
Options
Performance rights		 5.3
5.4		 1,638,203
335,827
-
-
1,638,203
335,827

PAGE | 16

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

Note
5
Equity(cont.)
5.3
Options
Note		 31 December
30 June		 31 December 30 June
2025
2025		 2025 2025
No.
No.		 $ $
Options on issue
1,139,912,553
410,412,553
5.3.1
Options movement during the period:
6 months to
31 December
2025
No.
12 months to
30 June 2025
No.
At the beginning of the period
410,412,553
191,351,198
07.03.25_Free attaching to the_
rights issue
-
171,230,552
13.03.25_Free attaching to_
oversubscriptions
-
47,830,803
17.10.25_Free attaching_
Tranche 1
78,750,000
-
31.10.25_Option expiry_
(58,000,000)
-
12.12.25_Free attaching:
⚫ _Tranche 2
546,250,000
-
⚫ KMP fee settlement_10.2.1b
250,000,000
-
⚫ _Lead manager fee
37,500,000
-
15.12.25_Exercised at $0.006_
(125,000,000)
-
At end of the period
1,139,912,553
410,412,553
Comprising the following options:
Unlisted
 $0.05 options exp. 31.10.25
-
58,000,000
 $0.01 options exp. 21.02.28
219,061,355
219,061,355
 $0.006 options exp. 30.11.28
787,500,000
-
Listed
 $0.025 options exp. 31.05.26
133,351,198
133,351,198
1,139,912,553
410,412,553		 1,139,912,553
410,412,553		 1,638,203 335,827
6 months to
31 December
2025
No.
12 months to
30 June 2025
No.		 6 months to 12 months to
30 June 2025
$
31 December
2025
$
410,412,553
191,351,198
-
171,230,552
-
47,830,803
78,750,000
-		 335,827 335,827
-
-
-
-
-
-
-
-
-
-
-
(58,000,000)
-		 -
-
1,302,376
-
(125,000,000)
-		 -
1,139,912,553
410,412,553		 1,638,203 335,827
-
58,000,000
219,061,355
219,061,355
787,500,000
-
133,351,198
133,351,198
1,139,912,553
410,412,553
5.4
Performance rights
Note		 31 December
30 June		 31 December 30 June
2025
2025		 2025 2025
No.
No.		 $ $
Performance rights
5.4.1
Performance rights movement
during the period:
At the beginning of the period
Amortisation of rights
Derecognition of rights not
achieved_(in profit and loss)_
Cancellation of rights
Issue of Class A rights
Issue of Class B rights
Class A performance rights
converted
At end of the period		 62,000,000
62,000,000		 - -
6 months to
31 December
2025
No.
12 months to
30 June 2025
No.		 6 months to 12 months to
30 June 2025
$
31 December
2025
$
62,000,000
62,000,000		 -
-
-
-
380,000
-
(380,000)
-
-
-		 -
-
-		 -
-
(62,000,000)		 -
-
100,000,000		 -
-
62,000,000
-
(100,000,000)		 -
-
62,000,000
62,000,000		 - -

PAGE | 17

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

SECTION B. UNRECOGNISED ITEMS

This section of the notes provides information about items that are not recognised in the financial statements as they do not (yet) satisfy the recognition criteria.

In addition to the items and transactions disclosed below, there are also unrecognised tax amounts.

Note 6 Commitments

6.1 Capital commitments

The Group does not have any capital commitments (30 June 2025: $nil).

Note 7 Events subsequent to reporting date

7.1 Board changes

On 24 February 2026, the Company announced the appointment of Mr Rod Nicholas and Mr Joshua Gordon as NonExecutive Directors, effective that date. At the same time, Mr Stuart Usher retired as a Non-Executive Director and will continue in his role as Company Secretary.

There have been no other matters or circumstances that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.

Note 8 Contingent liabilities

There are no contingent liabilities as at 31 December 2025 (30 June 2025: Nil).

PAGE | 18

SKIN ELEMENTS LIMITED

APPENDIX 4D

AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

SECTION C. OTHER INFORMATION

This section of the notes includes other information that must be disclosed to comply with the accounting standards and other pronouncements, but that is not immediately related to individual line items in the financial statements.

Note
9
Related party transactions
Note		 Note
9
Related party transactions
Note		 Payable Balance
31 December
2025
$ 30 June
2025
$ 59,129
1,676,859
59,129
1,676,859		 Payable Balance
31 December
2025
$ 30 June
2025
$ 59,129
1,676,859
59,129
1,676,859
Related party balances within trade and other payables
9.1.1
9.1.1
Movements in the balances payable
Note
Opening		 Closing
balance as at

owed are as follows:
balance as at
1 Jul 2025
$ Salary and
fees earned
$		 Funds
Repayments
31 Dec 2025
advanced

$		 $ $
Boston Technology Management Pty Ltd
9.1.1a
777,785
149,160		 177,250 (1,103,897)
298
Service fees – Peter Malone
Colosseum Securities Pty Ltd
158,102
33,000		 - (191,102)
-
Director fees – Filippo (Phil) Giglia
Spitfire Corporate Pty Ltd
89,291
33,000		 - (122,291)
-
Director fees – Stuart Usher
Geneva Partners Pty Ltd
57,750
16,500		 - (67,250)
7,000
Company secretary fees – Stuart Usher
Boston Technology Management Pty Ltd
402,301
96,960		 8,128 (475,278)
32,111
Service fees – Craig Piercy
Blackridge Pty Ltd
9.1.1b
191,630
96,960		 (268,870)
19,720
Service fees – Leo Fung
1,676,859
425,580		 185,378 (2,228,688)
59,129

a. Included in repayments made to Peter Malone is $800,000 settled via equity issues as described in note 10.2.1b.

  • b. Included in repayments made to Leo Fung is $200,000 settled via equity issues as described in note 10.2.1b.
Note
10
Share-based payments
Note		 6 months to
6 months to
31 December
31 December
2025
2024
$ $
10.1 Share-based payments:
Net recognised in profit and loss
-
380,000
Net recognised in profit and loss, settlement of liabilities
10.2.1b
3,302,376
-
Recognised in equity (transaction costs):
Shares and Options
10.2.1a
150,000
-
Recognised in net assets, settlement of liabilities
10.2.1b
1,000,000
500,000
Gross share-based payments
4,452,376
880,000
4,452,376
880,000

10.2 Share-based payment arrangements in effect during the half-year

10.2.1 Issued during the current half-year

a. Lead manager services were provided in connection with the capital raising and were contractually based on a fee of 6% of proceeds raised, equating to $150,000. In accordance with AASB 2 Share-based Payment, where services received from non-employees can be reliably measured, the transaction is measured based on the fair value of the services received. Accordingly, the equity instruments issued to the lead manager have been measured at $150,000, being the fair value of the services provided. The transaction value has been recognised as a cost of raising capital and recorded in equity in accordance with AASB 132 Financial Instruments: Presentation .

PAGE | 19

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

Note 10 Share-based payments (cont.)

10.2 Share-based payment arrangements in effect during the half-year (cont.)

  • b. During the period, the Company settled KMP liabilities totalling $1,000,000 through the issue of ordinary shares with freeattaching options ($800,000 – Peter Malone; $200,000 – Leo Fung). The transaction was accounted for as an extinguishment of financial liabilities in accordance with AASB 9 Financial Instruments and IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments , with the liabilities derecognised at their carrying amount.

In accordance with IFRIC 19, the equity instruments issued (being both shares and options) were measured at their fair value at the date of extinguishment. The fair value of the shares was determined based on the Company’s quoted market price at that date ($0.006 per share), and the fair value of the options was determined using an option pricing model. The combined fair value of the shares and options represents the total consideration for the extinguishment of the liabilities.

The Notice of Meeting disclosed a deemed issue price of $0.002 per share, reflecting the commercial terms of the arrangement at the time it was negotiated. However, for accounting purposes, the equity instruments were required to be measured at fair value at the extinguishment date, when the Company’s share price was higher. The deemed issue price does not represent fair value under AASB 13 Fair Value Measurement .

Accordingly, the difference between the carrying amount of the liabilities extinguished ($1,000,000) and the fair value of the equity instruments issued (comprising shares of $3,000,000 and options of $1,302,376) resulted in a loss of $3,300,592, recognised in profit or loss in accordance with AASB 9 and IFRIC 19.

The options valued and issued on terms as detailed in the following and valued in accordance with 10.3.

10.3 Fair value of rights granted during the year

Methodology Black Scholes
Grant date / issue date: 12.12.25
Exercise price $0.006
Grant date price: $0.006
Risk free rate 4.116%
Volatility 170%
Number of options issued: 250,000,000
Expiry date 3 years
Value per right $0.00521
Fair values
Total fair value $1,302,376 $nil $nil $nil $nil
Recognised in the year $1,302,376

Note 11 Operating segments

11.1 Identification of reportable segments

The Group operates in the biotechnology sector, focused on developing its proprietary SE Formula™ technology. Based on internal reports reviewed by the Board for resource allocation, management has determined that the Group has a single operating segment in both the current and comparative periods.

PAGE | 20

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2025

Note 12 Statement of material accounting policies

This note provides a list of the material accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the periods presented, unless otherwise stated.

12.1 Basis of preparation

12.1.1 Reporting Entity Skin Elements Limited ( Skin Elements or the Company ) is a listed public company limited by shares, domiciled, and incorporated in Australia. These are the consolidated financial statements and notes of Skin Elements and controlled entities (collectively the Group ). The financial statements comprise the consolidated financial statements of the Group. For the purposes of preparing the consolidated financial statements, the Company is a for-profit entity. The Group is a for-profit entity and is primarily involved in research and development of proprietary biotechnology. The separate financial statements of Skin Elements, as the parent entity, have not been presented with this financial report as permitted by the Corporations Act 2001 (Cth).

12.1.2 Basis of accounting The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 (Cth) and AASB 134 Interim Financial Reporting . Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting . The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report. The financial statements were authorised for issue on 27 February 2026 the Directors of the Company. 12.1.3 Going Concern The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Group incurred a loss for the half-year of $4,010,205 (31 December 2024: $1,206,091 loss); operating activities produced net cash out-flow of $1,105,066 (31 December 2024: $483,051 in-flow). As at 31 December 2025, the Group has working capital of $1,575,095 (30 June 2025: $1,944,428 working capital deficit). The ability of the Group to continue as a going concern is dependent on the Group securing additional debt and/or equity funding and/or generating profits from its normal course of business. These conditions indicate the existence of a material uncertainty that may cast a significant doubt about the Group's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The Directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this financial report. Based on the cash flow forecasts and other factors referred to above, the Directors are confident that there will be sufficient funds for the Group to meet its obligations and liabilities and are satisfied that the going concern basis of preparation is appropriate. Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due. 12.1.4 Comparative figures Where required by accounting standards comparative figures have been adjusted to conform to changes in presentation for the current financial year. Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, an additional (third) statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements is presented.

PAGE | 21

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Notes to the condensed consolidated financial statements for the half-year ended 31 December 2025

Note Note 12
Statement of material accounting policies
**12.2 ** Use of estimates and judgments
The preparation of consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
These estimates and associated assumptions are based on historical experience and various factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.
Judgements made by management in the application of AASBs that have significant effect on the consolidated financial
statements and estimates with a significant risk of material adjustment in the next year are discussed in note 12.2.1.
12.2.1 Critical Accounting Estimates and Judgments
Management discusses with the Board the development, selection and disclosure of the Group's critical accounting policies
and estimates and the application of these policies and estimates. The estimates and judgements that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed
below:
a. _Key estimate – Impairment of intangibles ..................................._Refer note 4.1 Intangible assets.
b. Key estimate – Share-based payments ........................................_Refer note 10_Share-based payments.
**12.3 ** New Accounting Standards and Interpretations not yet mandatory or early adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2025
reporting periods and have not been early adopted by the Group. The Group’s assessment of the impact of these new
standards and interpretations is set out below. These standards are not expected to have a material impact on the entity in
the current or future reporting periods and on foreseeable future transactions.
**12.4 ** Rounding of amounts
The amounts contained in these financial statements have been rounded to the nearest dollar under the option available to
the Group under Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/Directors’
Reports)Instrument 2016/191 dated 24 March 2016.

PAGE | 22

SKIN ELEMENTS LIMITED

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

AND CONTROLLED ENTITIES ABN 90 608 047 794

Directors’ declaration

The Directors of the Company declare that in the Directors' opinion:

  1. The attached financial statements and notes, as set out on pages 8 to 22, are in accordance with the Corporations Act 2001 (Cth) including:

  2. (a) comply with Accounting Standard AASB 134: Interim Financial Reporting ; and

  3. (b) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2025 and of its performance for the financial year ended on that date

  4. Subject to the matters disclosed in note 12.1.3, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is signed in accordance with a resolution of the Directors made pursuant to section 303(5) of the Corporations Act 2001 (Cth).

On behalf of the Directors

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DR PETER MALONE

Chairman and Chief Executive Officer Dated this Friday, 27 February 2026

PAGE | 23

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

ABN 90 608 047 794

Independent auditor’s review report

PAGE | 24

SKIN ELEMENTS LIMITED AND CONTROLLED ENTITIES ABN 90 608 047 794

APPENDIX 4D INTERIM FINANCIAL REPORT 31 December 2025

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PAGE | 25

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