Announcement PDF 4DS Memory Limited Appendix 4E Preliminary final report 1. Company Details Name of entity: 4DS Memory Limited ABN: 43 145 590 110 Reporting period: For the year ended 30 June 2026 Previous period: For the year ended 30 June 2025 2. Results for announcement to the market 30 June 2026 30 June 2025 Change Change $ $ $ % Revenues from ordinary activities 339,555 305,160 34,395 11% Loss from ordinary activities after tax attributable to the owners of 4DS Memory Limited (1,593,894) (9,678,176) 8,084,282 (84%) Loss for the year attributable to the owners of 4DS Memory Limited (1,593,894) (9,678,176) 8,084,282 (84%) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The loss for the Group after providing for income tax amounted to $1,593,894 (30 June 2025: loss of $9,678,176). 3. Net tangible assets Reporting period Previous period Cents Cents Net tangible assets per ordinary security 0.34 0.43 4. Dividends There were no dividends paid, recommended or declared during the current and previous financial period. 5. Audit qualification or review The financial statements have been audited and an unmodified opinion has been issued. 6. Attachments The Annual Financial Report of 4DS Memory Limited for the year ended 30 June 2026 is attached. 4DS Memory Limited Appendix 4E Preliminary final report 7. Signed Signed ___________________________ Date: 28 August 2026 David McAuliffe Executive Chairman Annual Financial Report 4DS Memory Limited ABN 43 145 590 110 30 June 2026 4DS Memory Limited Contents 30 June 2026 1 Corporate directory ..........................................................................................................................................................2 Directors' report ...............................................................................................................................................................3 Auditor's independence declaration ..............................................................................................................................18 Consolidated statement of profit or loss and other comprehensive income.................................................................19 Consolidated statement of financial position.................................................................................................................20 Consolidated statement of changes in equity ................................................................................................................21 Consolidated statement of cash flows............................................................................................................................22 Notes to the consolidated financial statements.............................................................................................................23 Note 1. Material Accounting Policy Information........................................................................................................23 Note 2. Critical accounting judgements, estimates and assumptions .......................................................................24 Note 3. Other Expenses..............................................................................................................................................25 Note 4. Remuneration of auditors .............................................................................................................................25 Note 5. Income tax.....................................................................................................................................................25 Note 6. Cash and cash equivalents.............................................................................................................................26 Note 7. Investment in financial assets .......................................................................................................................26 Note 8. Cash flow information ...................................................................................................................................27 Note 9. Right-of-use assets ........................................................................................................................................27 Note 10. Trade and other payables............................................................................................................................28 Note 11. Lease liabilities.............................................................................................................................................28 Note 12. Issued capital...............................................................................................................................................29 Note 13. Earnings per share.......................................................................................................................................30 Note 14. Reserves.......................................................................................................................................................31 Note 15. Share-based payment..................................................................................................................................31 Note 16. Financial instruments ..................................................................................................................................33 Note 17. Key management personnel disclosures.....................................................................................................36 Note 18. Related party transactions ..........................................................................................................................37 Note 19. Parent entity information............................................................................................................................38 Note 20. Interests in subsidiaries...............................................................................................................................38 Note 21. Commitments and contingencies................................................................................................................39 Note 22. Events after the reporting period................................................................................................................39 Consolidated entity disclosure statement......................................................................................................................40 Directors' declaration .....................................................................................................................................................41 Independent auditor's report to the members of 4DS Memory Limited .......................................................................42 Shareholder information ................................................................................................................................................46 General information The financial statements cover 4DS Memory Limited as a Group consisting of 4DS Memory Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is 4DS Memory Limited's functional and presentation currency. 4DS Memory Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business Level 2, 50 Kings Park Road 3155, Skyway Court, West Perth WA 6005 Fremont CA 94539 AUSTRALIA UNITED STATES 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 issue, in accordance with a resolution of Directors, on 28 August 2026. 4DS Memory Limited Corporate directory 30 June 2026 2 Directors Mr. David McAuliffe Dr. Guido Arnout Mr. Howard Digby Company secretary Mr. Peter Webse Registered and Principal Office Level 2, 50 Kings Park Road, West Perth WA 6005 PO Box 271 West Perth WA 6872 Share register Automic Registry Services Level 5 191 St Georges Terrace, Perth WA 6000 Phone: +61 8 9324 2099 Fax: +61 8 9321 2337 Email: [email protected] Web: www.automic.com.au Auditor PKF Perth Level 8, 905 Hay Street, Perth WA 6000 Solicitor Steinepreis Paganin Level 14, QV1 Building 250 St Georges Terrace Perth WA 6000 Stock exchange listing 4DS Memory Limited shares are listed on the Australian Securities Exchange (ASX code: 4DS) Website www.4dsmemory.com 4DS Memory Limited Directors' report 30 June 2026 3 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of 4DS Memory Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2026. 1. Directors The following persons were Directors of 4DS Memory Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Mr. David McAuliffe Executive Chairman Dr. Guido Arnout Non-Executive Director Mr. Howard Digby Non-Executive Director Information on Directors Name: Mr. David McAuliffe Title: Executive Chairman Appointed: 7 December 2015 Qualifications: LLB (Hons), BPharm Experience and expertise: Mr. McAuliffe is an experienced Company Director and Entrepreneur who has had over 25 years’ experience, mostly in the international biotechnology field. During that time, he was involved in numerous capital raisings and in licensing of technologies. He is a founder of several companies in Australia, France and the United Kingdom, many of which have become public companies. Other current directorships: - Former directorships (last 3 years): Non-Executive Chairman of Invex Therapeutics Limited (ASX: IXC) - resigned 7 November 2025 Interests in shares: 10,061,042 ordinary shares Interests in options: 6,000,000 unlisted options exercisable at $0.037 each on or before 27 February 2028 Name: Dr. Guido Arnout Title: Non-Executive Director Appointed: 7 December 2015 Qualifications: PhD Electrical Engineering Experience and expertise: Dr. Arnout has specific expertise with over 30 years in commercialising electronics technology from concept to product. He was the founding President and CEO of PowerEscape, which introduced the first tools for the development of low-power software executing on multicore devices. He was also founding President and CEO of CoWare, which pioneered system-level design tools for hardware-software co- design and the time-based licensing business model. Dr. Arnout co-founded the Open SystemC Initiative (OSCI), an industry consortium to standardise a language for system level design, and as its President submitted the SystemC language to IEEE. He served as VP of Engineering and later senior VP of marketing of CrossCheck Technology. He co-founded and later became VP of Engineering of Silvar-Lisco, the first commercial EDA (electronic design automation) company. Other current directorships: - Former directorships (last 3 years): - Interests in shares: 8,000,000 ordinary shares Interests in options: - 4DS Memory Limited Directors' report 30 June 2026 4 Name: Mr. Howard Digby Title: Non-Executive Director Appointed: 7 December 2015 Qualifications: BE (Mechanical, Hons) Experience and expertise: Mr. Digby began his career at IBM and has spent 25 years managing technology related businesses across the Asia Pacific region, of which 12 years were spent in Hong Kong ending with The Economist Group as Regional Managing Director. Prior to this he held senior management roles at Adobe and Gartner where his clients included major semiconductor players inclusive of Samsung, Hynix and TSMC. Upon returning to Perth, Howard served as Executive Editor of WA Business News and now spends his time as a company director, advisor and investor, having played key roles in several M&A and reverse takeover transactions. Other current directorships: Non-Executive Chairman of Singular Health Group Ltd (ASX: SHG) Non-Executive Director of Elsight Limited (ASX: ELS) Non-Executive Chairman of KTek Aerosystems Ltd (ASX: KTK) - appointed 20 March 2026 Former directorships (last 3 years): Non-Executive Director of Spenda Limited (ASX: SPX) - resigned 21 November 2024 Interests in shares: 6,688,629 ordinary shares Interests in options: 1,000,000 unlisted options exercisable at $0.037 each on or before 27 February 2028 Other current directorships quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. Former directorships (last 3 years) quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 2. Company secretary Name: Mr. Peter Webse Qualifications B.Bus, FGIA, FCIS Experience Mr. Webse has over 30 years company secretarial experience and is Director of Governance Corporate Pty Ltd, a company specialising in company secretarial, corporate governance and corporate advisory services. 3. Directors' meetings The number of Directors meetings and the number of meetings attended by each of the Directors of the Company during the financial year are: Attended Held Mr. David McAuliffe 8 8 Dr. Guido Arnout 8 8 Mr. Howard Digby 8 8 Held: represents the number of meetings held during the time the Director held office. 4. Principal activities 4DS Memory Limited (ASX: 4DS), with facilities located in Silicon Valley, is a semiconductor technology company bringing high bandwidth, high endurance, persistent non-volatile memory to advanced CMOS process nodes. Established in 2007, 4DS owns a patented IP portfolio, comprising 34 USA patents, and is the first company to develop PCMO ReRAM, on an advanced CMOS processing node. Its technology, known as Interface Switching ReRAM, features tuneable persistence and low energy per bit for today’s most challenging compute intensive and AI processor applications. 4DS Memory Limited Directors' report 30 June 2026 5 5. Review of operations Financial Review The loss for the Group after providing for income tax amounted to $1,593,894 (30 June 2025: $9,678,176). Operating Review On 18 August 2025, the Company announced completion of a comprehensive root cause analysis of the 20nm Sixth Platform Lot. Using both physical and chemical analytical techniques, the analysis confirmed that etch residues introduced during manufacturing resulted in electrical shorting of the memory devices. As this represented the Company's first manufacturing process incorporating 20nm memory cells, further process optimisation was determined to be necessary before successful scaling from the previously demonstrated 60nm platform could be achieved. Following completion of the analysis, the Company commenced discussions with its development partners to review the findings and assess the most appropriate strategic and technical pathway for the technology. On the same day, the Company announced that HGST had renewed the Joint Development Agreement for a twelfth consecutive term, reflecting the long-standing relationship between the parties and providing a framework for continued technical engagement while the Company evaluated future development pathways. Following discussions with its development partners, the Board announced a Strategic Review on 5 September 2025. As part of this process, development activities were paused and the Company disengaged from its collaborations with imec and Infineon Technologies LLC, including termination of the Infineon design agreement. The Strategic Review was established to evaluate the impact of artificial intelligence and data-centric computing on the Company's technology, assess opportunities to realise value from the Company's ReRAM intellectual property and identify strategic options that could enhance the Company's commercial position and deliver long-term shareholder value. During the review period, the Company implemented a number of initiatives to preserve capital and reduce operating expenditure. Effective from 1 November 2025, all Non-Executive Director fees were reduced to nil, consulting fees payable to Dr Guido Arnout were reduced, and Executive Chairman David McAuliffe voluntarily reduced his remuneration by 50%. These measures remained in place throughout the reporting period. At the Annual General Meeting held on 20 November 2025, shareholders re-elected Mr Howard Digby as a Non-Executive Director, maintaining Board continuity while the Strategic Review progressed. On 10 December 2025, the Company provided shareholders with an update on the Strategic Review. The Board and its advisers continued to assess a range of opportunities that may support the commercialisation of the Company's core memory technology, including opportunities within the broader AI-enablement ecosystem. During this process, the Company commenced preliminary confidential discussions with parties operating in complementary technology fields. At the reporting date, these discussions remained exploratory and no agreements, proposals or commitments had been entered into. During the March 2026 quarter, the Company continued to progress its strategic initiatives while maintaining a disciplined approach to cost management. The Company also announced that its validated 60nm PCMO ReRAM platform would remain the foundation of its technology and development program as it evaluated commercial opportunities aligned with anticipated demand for mature-node semiconductor memory. On 27 April 2026, the Company announced that it was progressing a proposed material acquisition and associated capital raising. ASX determined that the proposed transaction would require shareholder approval together with the Company re-complying with Chapters 1 and 2 of the ASX Listing Rules. Accordingly, the Company's securities were placed into voluntary suspension while discussions with ASX regarding the proposed transaction continued. During May 2026, the Company announced that it was advancing the commercialisation of its proven 60nm ReRAM platform within mature-node semiconductor markets, particularly India. The Board identified opportunities across industrial, automotive, aerospace, defence and embedded applications where reliability, manufacturability and operating stability remain critical. The Company also identified potential commercial pathways including semiconductor licensing, technology transfer, embedded memory applications, research and development collaborations and OEM integration opportunities. 4DS Memory Limited Directors' report 30 June 2026 6 On 26 May 2026, the Company confirmed payment of approximately A$755,000 to imec in respect of research and development services provided and accrued during the first half of 2025. The Company also advised that Executive Chairman David McAuliffe's planned business development visit to India would occur during June 2026. During June 2026, the Executive Chairman completed a series of meetings with representatives of the India Semiconductor Mission, the Semiconductor Laboratory, leading research institutions including IIT Delhi, IIT Bombay and the Indian Institute of Science, together with major industrial organisations and potential commercial partners. These discussions confirmed strong alignment between the Company's validated 60nm ReRAM technology and India's expanding semiconductor manufacturing capability. The Company also explored opportunities in neuromorphic computing and Computing-in-Memory architectures and executed a number of non-disclosure agreements to support ongoing technical and commercial engagement. At the end of the reporting period, the Company advised that discussions with HGST regarding a potential renewal of the Joint Development Agreement were expected to take place during July 2026, with shareholders to be updated following completion of those discussions. Patent portfolio 4DS Memory has a patented IP portfolio, comprising 34 USA patents granted, which have been developed in-house to create high-density Storage Class Memory. The granted patents are 100% owned by the Company. These 34 patents are specifically related to the operation of the Company and are free from any royalty or licensing obligations. Corporate and Management Changes During the year, Mr Peter Himes (Chief Strategy Officer) and Mr Ting Yen (Chief Technology Officer) resigned from their respective positions. Effective from 1 November 2025, the following adjustments to Board and Executive remuneration were implemented. ● All Non-Executive Directors (NED): All NED fees reduced to $0. ● Consulting fees: Payment to Dr Guido Arnout reduced by 50% and with a further reduction to 32% effective from January 2026 onwards. ● Executive Chairman: Mr. David McAuliffe’s base salary reduced by 50%, from $200,000 per annum to $100,000 per annum, plus statutory superannuation. Significant changes in the state of affairs On 16 December 2024, the Company entered into an agreement with Infineon Technologies LLC to design a custom ReRAM memory test chip for 4DS. The agreement initially covered a 15-month scope of work valued at US$4.5 million, with an upfront payment of US$1.5 million due in January 2025 and the remaining balance payable in varying monthly instalments. On 29 August 2025, the Company terminated the agreement. The termination brings the contractual relationship to an end, with no further payments contemplated at this time. For further information refer to the ASX announcement dated 5 September 2025. Refer to the operating review and placement and issue of securities for other significant changes in the state of affairs of the Group during the financial year. 6. Material business risks There are a number of material risks that, either individually or in combination, may materially and adversely affect the future operating and financial performance and prospects of the Company and the value of its shares. Some of these risks may be mitigated by the Group's internal controls and processes but some are outside the control of the Company, its Directors and management. The material risks identified by management are described below: 4DS Memory Limited Directors' report 30 June 2026 7 (a) Development and commercialisation of technologies While the Company will undertake all reasonable due diligence in its business decisions and operations, the Company will have no influence or control over the activities or actions of its competitors, whose activities or actions may positively or negatively affect the operating and financial performance of the Company’s projects and business. For instance, new technologies could result in the Company’s technologies not being differentiated to other similar offerings. The size and financial strength of some of the Company’s competitors may make it difficult for it to maintain a competitive position in the technology market. In particular, the Company’s ability to acquire additional technology interests could be adversely affected if it is unable to respond effectively and/or in a timely manner to the strategies and actions of competitors and potential competitors or the entry of new competitors into the market. This may in turn impede the financial condition and rate of growth of the Company. (b) Intellectual Property risk A substantial part of the Company's commercial success will depend on its ability to establish and protect the Company’s intellectual property to maintain trade secret protection and to operate without infringing the proprietary rights of third parties. The underlying technology on which the commercial value of the Company’s intellectual property assets is based is dependent on the availability, scope and effectiveness of any relevant legal protections. These legal mechanisms, however, do not guarantee that the intellectual property will be protected or that the Company's competitive position will be maintained. No assurance can be given that employees or third parties will not breach confidentiality agreements, infringe or misappropriate the Company's intellectual property or commercially sensitive information, or that competitors will not be able to produce non-infringing competitive products. Competition in retaining and sustaining protection of technologies and the complex nature of technologies can lead to expensive and lengthy disputes for which there can be no guaranteed outcome. Additionally, securing rights to (or developing) technologies complementing the Company’s existing intellectual property will also play an important part in the commercial success of the Company. There is no guarantee that such rights can be secured, or that such technologies can be developed. (c) Competition The industry in which the Company will operate is subject to domestic and international competition. Current or future competitors develop new, superior or more cost-effective solutions for the coordination of autonomous systems. The Company’s competitors include both emerging technology enterprises and large, established corporations or multinationals with significantly greater financial, technical and marketing resources. Those competitors may decide to enter the Company’s target markets and be able to fund aggressive marketing strategies or offer competing products at lower price points, which may negatively affect the operating and financial performance of the business. (d) New Market The Company will look to expand its product offerings into new markets and domains. Any efforts to enter a new market space holds the risk that the product offering does not meet the needs of the market at an acceptable price point, the product does not meet the relevant regulatory or certification standards and or the underlying intellectual property is not registrable or protectable in the market. New markets usually cost substantially more to penetrate than a known market. 7. Dividends No dividend has been declared or paid by the Company. 8. Placement and issue of securities For the financial year ended 30 June 2026, a total of 4,800,000 options and 21,500,000 options lapsed as the vesting conditions attached to these options could no longer be satisfied. 9. Matters subsequent to the end of financial year No matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. 4DS Memory Limited Directors' report 30 June 2026 8 10. Likely developments and expected results of operations Information on likely developments in the operations of the Group and the expected results of operations have not been included in this report because the Directors believe it would be likely to result in unreasonable prejudice to the Group. 11. Environmental regulation and performance The Group is not subject to any significant environmental regulation under Australian Commonwealth or State law. The Group aims to comply with the identified regulatory requirements in each jurisdiction in which it operates. There have been no known material breaches of the environmental regulations. 12. Share options All options were granted in previous financial years. No options have been granted since the end of the previous financial year. Unissued ordinary shares of 4DS Memory Limited under option at the date of this report are as follows: Grant Date Expiry Date Exercise Price Number under option 31/05/2022 31/05/2027 $0.100 10,500,000 19/12/2022 19/12/2027 $0.037 11,700,000 27/02/2023 27/02/2028 $0.037 7,000,000 05/02/2024 05/02/2029 $0.073 5,500,000 08/01/2025 28/02/2028 $0.036 192,813,480 227,513,480 All unissued shares are ordinary shares of the Company. All unvested options expire on termination of employment unless the Board makes a determination (in its absolute discretion) that the employee’s performance during the term and the circumstances of the termination of the employment are such that all unvested options on the date of termination will continue to vest according to the vesting schedule and only expire on the expiry date. Further details about share-based payments to Directors and Key Management Personnel (KMP) are included in the remuneration report. Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related body corporate. Shares issued as a result of the exercise of options There were no ordinary shares of 4DS Memory Limited issued on the exercise of options during the year ended 30 June 2026 and up to the date of this report. 13. Indemnification and insurance of Directors, Officers and Auditors Indemnification The Company indemnifies each of its Directors, Officers and Company Secretary. The Company indemnifies each Director or Officer to the maximum extent permitted by the Corporations Act 2001 from liability to third parties, except where the liability arises out of conduct involving lack of good faith, and in defending legal and administrative proceedings and applications for such proceedings. The Company must use its best endeavours to insure a director or Officer against any liability, which does not arise out of conduct constituting a wilful breach of duty or a contravention of the Corporations Act 2001. The Company must also use its best endeavours to insure a director or Officer against liability for costs and expenses incurred in defending proceedings whether civil or criminal. The Company has not entered into any agreement with its current auditors indemnifying them against any claims by third parties arising from the