SPACETALK LTD — Interim / Quarterly Report 2026

Jan 28, 2026

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ASX Announcement | 29 January 2026 Spacetalk Ltd (ASX: SPA)

Quarterly Activities Report, Business Update and Appendix 4C for the quarter ended 31 December 2025

Active Mobile Subscribers Up 26%, driving 20% Growth in Spacetalk Mobile Recurring Revenue. New Platform improves scalability and is key enabler for future growth.

Spacetalk Ltd (ASX: SPA) (“Spacetalk” or “the Company”) is pleased to provide its Appendix 4C for the quarter ended 31 December 2025 (2QFY26) along with an operational update.

Summary trading update

The quarter represented a significant and transformative period for the Company . In accord with the business strategy it pivoted away from a device-led business to one that is focussed on a SaaS solution and recurring revenues which will underpin the future growth. The Company completed a complex re-platforming of the business, culminating in the launch of its all-new platform and tech stack . The initial phase of the re-platforming is now largely complete, with further refinement and optimisation of core functionality continuing and scheduled for completion during Q3.

As part of the platform rollout, the Company implemented Customer Value Management (CVM) capabilities CVM is a core part of mobile and app customer engagement and retention with the aim of maximising Average Revenue Per User (ARPU), Customer Lifetime Value (CLTV), and lowering Customer Acquisition Costs (CAC). It is expected that the benefits of CVM will enhance the ability to manage the Company’s customer base effectively leading to a reduction in customer churn and increasing ARR.

Following the re-platforming and new software-led focus, the Company has developed a growing qualified pipeline of enterprise software opportunities at various stages of maturity. Subject to customary commercial and contractual processes, the Company anticipates progressing a number of these opportunities in coming months and expects to make some key announcements soon.

On this basis, the Company reconfirms its previously stated guidance of annual recurring revenue (ARR) of $20 - $25m in CY2026.

The launch of the Company’s new platform has unlocked enterprise software sales opportunities that were not accessible under the Company’s previously hardware-led business model. A software-led model is expected to offer improved scalability, monthly active user growth, margin potential and operating leverage over the medium to long term. In addition, it is important to note that a software-led revenue model is inherently more cash generative than a hardware-led model, due to lower working capital intensity and more favourable margin characteristics. While Operating Cash Flow (excluding Inventory) was positive at $2.6m during the quarter, the business now has increased optionality due to the high margin, cash generative software model.

To complete the re-platforming, the Company made strategic capital and resource allocation decisions during the quarter, prioritising investment in software capabilities over near-term hardware growth. As a result of this, as well as timing differences around the placing of orders by retailers, device revenue declined by 19% to $3.8m in H1FY26 compared to $4.7m in H1FY25. However, total income for H1FY26 of $10.1m was stable (H1FY25: $10.3m), with the decline in device sales being offset by a 30% (H1FY26: $3.9m vs H1FY25: $3.0m) increase in recurring mobile subscription revenue.

Overall, the Company continues to progress its long-term strategy, with the new platform forming a strategically important foundation for future growth expected to be driven by partnerships with telcos.

Financial Highlights:

• Global Active Mobile Subscribers Growth: Active subscribers for Spacetalk Mobile (MVNO) increased to 57.4k in 2QFY26 , up from 45.6k in 2QFY25 , representing a 26% year-on-year growth . This growth provides a solid foundation for continued subscriber expansion following the launch of the new platform.

• Annual Recurring Revenue (ARR) Performance: ARR increased by 9% year-on-year to $12.0m in 2QFY26 (2QFY25: $11.0m). This growth was primarily driven by a 20% increase in Spacetalk Mobile ARR, which now represents 42% of total customer revenue , up from 28% in 2QFY25 .

• Revenue performance for the quarter: Quarterly revenue declined by $0.6m to $5.6m in 2QFY26 , compared to $6.3m in 2QFY25 . The decline was primarily driven by lower device revenue, which comprises sell-in to retail partners and direct to consumer eCommerce sales. The reduction reflects lower sell-in volumes as retail channel inventory was drawn down during the period. Importantly, underlying consumer demand continued to grow, with sell-out from retail inventory increasing by 6% year-on-year, demonstrating continued customer demand despite reduced channel replenishment during the quarter.

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• Operating Payments (Excluding Inventory and service enabling costs): Operating payments (excluding inventory and service enabling costs) were stable at $3.9m in 2QFY26 , compared to $3.7m in 2QFY25 . Following a sustained period of business rightsizing in prior quarters, the Company has commenced targeted reinvestment to support its expansion strategy.

• Margin Improvement: Gross margin increased by 3% to 50% in 2QFY26 (2QFY25: 47%). The improvement was primarily driven by a favourable shift in revenue mix as a result of growth in higher margin Spacetalk Mobile revenue , relative to hardware sales.

• Operating Cash Flow (Before Inventory): Operating cash flow before inventory and service enabling investments was $2.6m in 2QFY26 , an improvement of $1.4m compared to $1.2m in 2QFY25 . This improvement reflects the Company’s underlying ability to generate cash from core operations, even as it continues to invest in capacity to support growth.

• Capital Raised : During 2QFY26, the Company raised $2.05m in capital (before costs) , as approved at the EGM and AGM. The funds have been deployed to support the Company’s strategic priorities, including international expansion and the development of the new platform.

• Scalable Telco SaaS Model: The Company has built a pipeline of and is progressing discussions with multiple global large telecommunications providers regarding partnerships to distribute Spacetalk’s family safety platform to their customer bases, delivering value to end consumers, and engagement, data and a new channel for customer lifecycle management to telcos.

These discussions reflect strong strategic alignment and a tangible growing market interest in Spacetalk’s software-led, hardware-enabled SaaS model. Successful execution of one or more partnerships would represent a significant milestone in the Company’s transformation, enabling Spacetalk to embed its platform within telco ecosystems, accelerate subscriber growth, and materially expand its addressable market.

• International Expansion Strategy: The Company has rolled out e-commerce capability across Europe , the UK , Singapore , the USA , Canada and New Zealand using a capitallight, e-commerce-first “land and expand” strategy. The next phase involves establishing a selective retail presence in targeted markets by partnering with anchor retailers to support product distribution, build brand awareness and drive e-commerce conversion as part of an iterative go-to-market model. The Company has developed a pipeline of potential anchor retail partners across priority markets, which is expected to support this next phase of expansion as opportunities are progressed.

Spacetalk Chief Executive Officer and Managing Director Simon Crowther said:

“2QFY26 was a transformational quarter for Spacetalk, marked by the launch of the Spacetalk 2.0 App in November. This platform upgrade, while complex , was essential to unlock advanced safety features and future growth. While the upgrade was not without its challenges, largely due to a data migration issue managed by a reputable AWS vendor and ongoing service outages with our wholesale provider the team has worked diligently to stabilise the platform, which now provides a scalable foundation for our software-led, hardware-enabled family safety ecosystem.

The new platform strengthens our unique multi-generational family safety offering across all life stages and accelerates our strategic evolution. Recurring revenue continues to gain momentum, with Spacetalk Mobile driving growth in both subscribers and ARR, demonstrating the scalability and resilience of our subscription model.

International expansion also progressed, with eCommerce initiatives and selective retail presence planned to build brand awareness and drive customer acquisition across Europe, the UK and New Zealand. This capital-light “land and expand” approach is laying the groundwork for efficient global growth.

Product innovation remains central to our strategy. The platform is increasingly open to non– Spacetalk wearable and mobile devices expanding our addressable market across multiple life stages. Our product roadmap includes enhanced digital safety tools for parental control, iOS and Android Watch Apps and Project Sibyl, a predictive analytics-based seniors' device, app features and B2B SaaS software, scheduled for pilot in 2QFY27. These offerings extend Spacetalk’s reach beyond children’s safety, positioning the platform to support families across generations.

Looking forward, expanding our mobile subscriber base through strategic telco partnerships and continued platform innovation will remain key priorities. Active discussions with several large telecommunications providers present opportunities to embed Spacetalk within telco ecosystems, accelerating access to millions of users and reinforcing our transition to a scalable, subscription-led SaaS model. Combined with Sibyl, this positions Spacetalk to meet the needs of the “sandwich generation” and deliver family safety solutions across all ages.

Overall, 2QFY26 reflects strong strategic momentum, with progress in recurring revenue, international expansion and product innovation, providing a solid foundation for sustainable, long-term growth.”

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Recurring revenue

Spacetalk achieved a 26% year-on-year increase in active mobile subscribers, reaching 57.4k in 2QFY26, up from 45.6k in 2QFY25. At quarter-end, over 56% of Spacetalk Mobile customers were on annual plans, supporting stronger customer retention and enhancing lifetime value across the platform.

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Growth in recurring revenue

Annual Recurring Revenue (ARR) increased by 9% vs PCP to $12.0m (2QFY25: $11.0m), as the revenue mix continues to shift to sustainable, high-quality recurring revenue streams.

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Annual Recurring Revenue (ARR)
14.0 14.0
12.0
11.0
12.0 12.0
8.9 1.4
10.0 1.8 10.0
2.3
7.4 1.9
8.0 2.6 8.0
5.8
6.0 4.4 2.5 3.5 6.0
3.5 2.3
4.0 8.3 4.0
2.6 6.6
4.3
2.0 2.2 3.5 4.6 2.0
2.3
- 1. - 3 - - 0.6 -
2Q 20 2Q 21 2Q 22 2Q 23 2Q 24 2Q 25 2Q 26
Spacetalk Mobile App Schools ARR
Millions ($)
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• ARR from Spacetalk Mobile increased by 26% year-on-year to $8.3m (2QFY25: $6.6m), driven by continued growth in the subscriber base. The business remains focused on scaling mobile revenue given its superior unit economics compared to app only revenue. Bundling app access within mobile plans enhances customer adoption, retention and lifetime value, and provides an opportunity for multiple recurring revenue streams per family, improving overall recurring revenue quality and per-customer profitability.

• ARR from the App declined modestly to $2.3m (2QFY25: $2.6m), reflecting an increasing migration of customers to the mobile subscription model. App engagement remains strong, with the majority of users now accessing the platform through bundled mobile plans rather than standalone subscriptions. The launch of the new platform during the quarter with enhanced safety features is expected to further drive user and subscriber growth through improved customer acquisition, engagement and retention, contributing positively to ARR over time.

ARR from Schools declined by $0.4m to $1.4m (2QFY25: $1.8m), consistent with expectations, as the business continues to manage this offering in run-off mode while state governments progressively provide one-stop-shop student management and messaging services.

Income and Gross Profit Highlights[1] :

Revenue Spacetalk Mobile Apps Schools Recurring revenue Devices Corporate Total income Gross profit Spacetalk Mobile Apps Schools Recurring gross profit Devices Corporate Totalgrossprofit Gross margin %	2Q26 2Q25 Var % 1,975 1,640 20% 485 654 (26%) 247 480 (49%) 2,707 2,774 (2%) 2,044 3,043 (33%) 886 445 99% 5,637 6,262 (10%) 2Q26 2Q25 Var % 944 905 4% 399 479 (17%) 208 453 (54%) 1,551 1,837 (16%) 811 921 (12%) 886 445 99% 3,248 3,203 1% 50% 47%	HY26 HY25 Var %
		3,927 3,032 30% 1,004 1,220 (18%) 566 918 (38%)
		5,497 5,170 6% 3,761 4,666 (19%) 888 455 95%
		10,146 10,291 (1%)
		HY26 HY25 Var %
		1,958 1,617 21% 778 865 (10%) 472 877 (46%)
		3,208 3,359 (4%) 1,408 1,419 (1%) 888 455 95%
		5,504 5,233 5%
		50% 49%

1 HY26 financial figures are unaudited and subject to finalisation

Key movements

• Revenue declined by 10% year-on-year to $5.6m in 2QFY26 (2QFY25: $6.3m), primarily reflecting lower device sales. On a half-year basis, HY26 revenue was stable at $10.2m compared to $10.3m in HY25 despite short-term device timing impacts.

• Device revenue declined by 33% year-on-year to $2.0m in 2QFY26 (2QFY25: $3.0m), primarily due to timing impacts as retail partners continued to draw down existing inventory, resulting in reduced reorder activity during the quarter. However underlying consumer demand continued to grow during the period, with sell-out from retail inventory increasing by 6% year-on-year, despite reduced channel replenishment during the quarter. For HY26, device revenue decreased by 19% to $3.8m, compared to $4.7m in HY25.

• Spacetalk Mobile revenue increased by 20% year-on-year to $2.0m in 2QFY26 (2QFY25: $1.6m), driven by continued growth in the subscription base. For HY26, Spacetalk Mobile revenue grew by 30% to $3.9m, compared with $3.0m in HY25.

• Apps revenue declined by 26% year-on-year to $485k in 2QFY26 (2QFY25: $654k), primarily reflecting customer migration to Spacetalk Mobile subscriptions, which bundle app access within the plan. The launch of the enhanced platform during the quarter is expected to support accelerated subscriber growth, higher engagement and improved retention, contributing positively to ARR over time. For HY26, Apps revenue declined slightly at $0.8m, compared with $0.9m in HY25.

• Schools revenue declined by 49% year-on-year to $247k in 2QFY26 (2QFY25: $480k), in line with expectations, as the business continues to manage this offering in run-off mode while state governments progressively insource these services. For HY26, Schools revenue declined by 19% to $0.6m, compared with $0.9m in HY25.

Cashflow from Operating & Investing Activities

• Operating Cash Flow : Net cash generated from operating activities before inventory and service enabling investments was $2.6m in 2QFY26, an improvement from $1.2m in 2QFY25, reflecting the Company’s strengthening ability to generate cash from core operations.

• Investing activities increased to $1.2m in 2QFY26 (2QFY25: $0.4m), reflecting continued investment in strategic growth initiatives, including the launch of the new platform during the quarter, and ongoing development of the seniors app, targeted for release in 2QFY27.

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Financing Activities:

• During the quarter, the Company raised $2.05m in capital, and Pure Asset Management (“Pure”) converted $1.0m of the $4.6m debt, reducing the outstanding balance in line with approvals received at the EGM and AGM.

Related Party Payments

Payments to related parties and their associates during the quarter amounted to $190k, and this related to aggregate remuneration paid to all Directors of the company for the period.

To keep up to date with company news and announcements visit investorhub.spacetalk.co.

For further information or investor enquiries, please contact:

Spacetalk Ltd (ASX: SPA)

Simon Crowther CEO and Managing Director investors@spacetalk.co www.spacetalk.co

ABOUT SPACETALK LTD

Spacetalk Ltd (ASX: SPA) develops and sells hardware and software to provide safety at every stage of life. Spacetalk offers families a suite of solutions: Australia’s best-selling Kids Smart Watches (GFK Report July 2024: Total Sales of Kids Smartwatch in Australia), Spacetalk Mobile, Spacetalk App, and Adult Wearables. The Spacetalk ecosystem provides freedom with peace of mind. To learn more, please visit: www.spacetalk.co

FORWARD-LOOKING STATEMENTS

This announcement may contain forward-looking statements. These statements are based on Spacetalk's expectations, estimates, and projections at the time the statements are made. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Actual outcomes and results may differ materially from those expressed or implied in these forward-looking statements. Spacetalk undertakes no obligation to update these statements for events or circumstances occurring after the date of this announcement.

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Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Spacetalk Ltd ABN Quarter ended (“current quarter”) 93 091 351 530 December 2025

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other 1.9 Net cash from / (used in) operating activities	5,642 10,154 - - (3,521) (6,783) (1,561) (2,101) (79) (102) (1,357) (2,790) (682) (2,714) - - - - (259) (490) - - 886 888 - -
	(931)	(3,938)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant, and equipment (d) investments (e) intellectual property (f) other non-current assets	- - - - (4) (6) - - (1,214) (1,964) - -

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 9

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant, and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities		- - - - - - - - - - - - - - - - - -
		(1,218)	(1,970)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities		1,944 6,768 - - - - (419) (476) - - - - - - - - - -
		1,525	6,292
4. 4.1 4.2 4.3	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above)	2,156 1,149 (931) (3,938) (1,218) (1,970)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 10

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.4 4.5 4.6	Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	1,525 2	6,292 1
		1,534	1,534
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		1,373 161 - -	1,995 161 - -
		1,534	2,156
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 190 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - _ Aggregate amount paid to all Directors of the entity including salary, directors fees, consulting fees and superannuation._			190
			-

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities 3,600 3,600 Credit standby arrangements - - Other (please specify) - - Total financing facilities 3,600 3,600 Unused financing facilities available at quarter end NIL Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		3,600	3,600
		-	-
		-	-
		3,600	3,600
	Restructure post shareholder approval at the EGM during 2QFY26: On 11 July 2025,Pure Asset Management agreed to subscribe for 1,000,000 Converting Notes in settlement of $1.0m of secured debt owed by the Company. The conversion took effect immediately upon issuance of the Converting Notes, reducing the outstanding secured debt facility to $3.6m. In addition, Pure agreed to the following amendments to its existing secured loan facility: • Suspension of all capital repayments for the remainder of the 2025 calendar year; and • Extension of the loan maturity date by three months to 30 June 2027. Subsequently, the Company obtained shareholder approval for the issuance of the Converting Notes to Pure Asset Management at the EGM held on 5 November 2025. The following changes to the key terms of the facility were approved: KEY TERMS: Debt Facility: $3.6m • Interest rate: 9.50% • Maturity date: 30 June 2027 Convertible Note: $1.0m • Interest rate: 10.00% • Conversion date: 31 July 2026

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) (931) Cash and cash equivalents at quarter end (item 4.6) 1,534 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.2 + item 8.3) 1,534 Estimated quarters of funding available (item 8.4 divided by item 8.1) 1.7 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(931) 1,534 -
		1,534
		1.7
	Answer: In the short term, the Company does not expect a material deviation from current operating cash flow levels. Over the medium to long term, operating cash flows are expected to improve because of the following key factors: Operating cash flow (excluding inventory payments): Operating cash flow excluding inventory investments was $2.6m, demonstrating the Company’s ability to generate positive cash flows from core operations independent of inventory funding requirements. As Spacetalk strategically transitions toward a SaaS-led model, working capital needs are lower compared to hardware-led approach, further enhancing cash generation and capital efficiency. Scalable Telco SaaS Model: The Company is progressing constructive discussions with multiple global large telecommunications providers regarding potential partnerships to distribute Spacetalk’s family safety platform to their customer bases. These discussions reflect strong strategic alignment and growing market interest in Spacetalk’s software-led, hardware-enabled SaaS model. Successful execution of one or more partnerships would represent a significant milestone in the Company’s transformation, enabling Spacetalk to embed its platform within telco ecosystems, accelerate subscriber growth, and materially expand its addressable market. New Products: Spacetalk is advancing the development of next-generation kids and seniors hardware devices. The new kids devices are expected to be lower cost to manufacture, supporting improved operating margins and profitability, while the seniors device, Sibyl, leverages predictive analytics powered by AI algorithms from UNSW and NeuRA to identify early health risks. Sibyl, a device-agnostic solution targeting the “sandwich generation”, offers 24/7 fall prediction and monitoring, emergency alerts, and predictive health insights, presenting a compelling value proposition for care providers, insurers, and consumers. These innovations are expected to materially expand Spacetalk’s addressable market across B2C and B2B channels, with a pilot of Sibyl scheduled for 2QFY27. International expansion: Spacetalk’s capital-light, digital-first strategy has expanded its total addressable market by ~25x, from ~38 million to over 940 million people. While still at an early stage, this approach has established a scalable foundation for global growth, leveraging international retail partnerships to build brand awareness and support a “land and expand” eCommerce-first model across Europe, the UK, Singapore, the USA, Canada, and New Zealand, with anchor retail presence in selected markets expected to accelerate brand recognition and drive online conversion.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

• 8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: YES

Capital raise: The Company is actively engaging with interested investors and major shareholders to secure additional capital in support of its strategic objectives. The Directors consider the Company to have reasonable prospects of successfully raising the required funding. Proceeds are intended to support continued innovation across the Spacetalk platform, strengthen global market reach, and support demand for its devices, underpinning sustainable growth and long-term shareholder value.

• 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: YES

The Company remains confident in its ability to sustain operations and deliver on its strategic objectives, supported by several key drivers:

New Products: Spacetalk is advancing its next-generation kids and seniors’ devices. The new kids devices are lower cost to produce, improving margins, while Sibyl, the seniors AI device, offers 24/7 fall prediction, emergency alerts, and predictive health insights. Sibyl targets the “sandwich generation” and is expected to expand the addressable market across B2C and B2B segments, with a pilot scheduled for 2QFY27.

Recurring Revenue Growth: Spacetalk Mobile delivered 20% year-on-year ARR growth, driven by strong subscription adoption. Over 56% of customers are on annual plans, supporting retention, lifetime value, and predictable revenue streams.

Operational and Financial Strength: The Company maintains disciplined cost management with the flexibility to scale expenses if needed. Current inventory levels support positive operating cash flow, and the strategic transition to a SaaS-led model further reduces working capital requirements, reinforcing the Company’s ability to sustain operations and drive long-term growth.

Scalable Telco SaaS Model: Ongoing constructive discussions with multiple large global telecommunications providers, if successfully concluded, will represent a major milestone in Spacetalk’s strategic transition from a hardware-enabled SaaS provider. These potential partnerships would embed Spacetalk’s family safety platform directly within telco ecosystems, providing access to a broader customer base and accelerating the scale and reach of our subscription offering.

Strategic Outlook: Spacetalk’s combination of innovative product launches, recurring revenue growth, and scalable partnerships provides strong confidence in the Company’s ability to continue operations and achieve its strategic objectives.

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 14

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

29 January 2026

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

By the Board Authorised by: ................................................................................... (Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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