Interim Results for Six Months Ended 30 June 2026

Spectra Systems Corporation

30 September 2026

 

30 September 2026

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014, which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Spectra Systems Corporation

Interim Results for the Six Months Ended 30 June 2026

Spectra Systems Corporation ("Spectra Systems" or the "Company"), a leader in machine-readable high speed banknote authentication, security printing, brand protection technologies and gaming security software, announces its unaudited interim results for the six months ended 30 June 2026

Financial highlights:

• Revenue of $21,620k (2025: $34,965k) down 38.2%

• Adjusted EBITDA1 down 68.7% at $4,932k (2025: $15,764k)

• Adjusted PBTA1 down 71.2% to $4,138k (2025: $14,347k)

• Adjusted earnings2 per share down 68.2% to US 6.7 cents (2025: US 21.1 cents)

• Cash used in operations $(548k) (2025: $(670k))

• Cash3 of $14,893k (2025: $2,556k) and debt of $1,969k (2025: $3,718k) at 30 June 2026

• Annual dividend of $0.136 per share (2025: $0.116 per share), totaling $6,586k, declared on 30 March 2026 and paid on 17 July 2026

1 Before stock compensation expense and excludes non-controlling interest

2 Before amortization and stock compensation expense and excludes non-controlling interest

3 Does not include $1,439k (2025: $5,000k) of restricted cash (central bank customer) and investments. Cash at 30 June 2026 is stated before payment of the $6,586k dividend on 17 July 2026

Operational highlights:

• Executed a contract with HMRC with our partner, SICPA SA, for the production, supply, and tracking of UK vaping duty with an estimated gross value of $43.8M over five years

• Delivered a 10,000-sheet production sample to one of the four central banks we are engaged with which was successful and resulted in our qualification for participation in upcoming tenders

• Passed all laboratory tests and 2nd stage qualification with the Central Bank of Thailand

• Initiated and subsequently executed a licensing agreement with Oberthur Fiduciaire SAS for the Kryptonome polymer banknote security feature on preferential terms

• Modified our existing agreements and expanded our polymer supply chain to include a second qualified supplier of the BOPP substrate

• Achieved further production milestones on the sensor contracts with our customer with $11.4M billed and collected during H1

• Received an order for additional sensors, beyond the $39.6M contract for use by an affiliated organization (RNS 22 May 2026)

• Completed and billed the full design stage milestones on a quality control reader contract with a government customer

• Completed development and productization of our red phosphor with ROTOFLEX AG, a leading security ink supplier

• Initiated full scale qualification program of our red phosphor with SICPA SA

• Executed a phosphor supply agreement with SICPA SA worth $900k in 2027

• Successful in-house trials with our UberDullTM product for the economically advantageous conversion of commercial paper to security grade standards

• Successful launch of Powerball X’s and O’s across seven USA lotteries

• Highly successful Banknote Conference attendance resulting in effective meetings with thirteen central banks.

• Reduced third party debt by $1,287k (39.5%) since 31 December 2025

Commenting on the results, Nabil Lawandy, Chief Executive Officer, said:

"In the first half of 2026 we launched numerous new initiatives, executed, and successfully achieved key milestones, and completed the final phase of revenue recognition on the $39.6M sensor production contract with our customer. In addition, our Security Transactions business continued to prove that it has returned to profitability with a significant H1 contribution to our profits.

The H1 2026 numbers are overshadowed by the H1 2025 numbers which reflected the execution of a sensor contract which the Company has historically received every 6-8 years beginning with development and transitioning into production. This sensor was the 3rd generation of sensor technology with the same customer, and we are confident that there will be a 4th generation sensor development and production downstream.

The cash from this contract continues to arrive as production milestones are achieved and sensors are delivered, with $11.4M billed and collected in the first half, supporting unrestricted cash of $14,893k on 30 June 2026 before the payment of our significantly increased dividend in July. As a result, of the outlier H1 2025 numbers, the consolidated group revenue of $21,620k and adjusted PBTA of $4,138k are significantly below the exceptional first half of 2025. It is important to note that the cyclical back-end of the year loaded profile of the security printing group (CSP), although producing a loss in H1 which suppressed profits, has a fully loaded order book which is expected to result in a small full year profit in that operation.

The H1 period resulted in a key achievement towards our goal to become a supplier of polymer banknote substrates to both fulfill an existing market need and position us to integrate our covert machine-readable taggants into the polymer itself. This continued and unrelenting effort has recently culminated in our full qualification by one of the four central banks we are actively engaged with, making us eligible to participate in future tenders and opening the door of credibility to other central banks.”

Spectra Systems Corporation

Dr. Nabil Lawandy, Chief Executive Officer

Tel: [phone]

Zeus (Nominated Adviser and Joint Broker)

James Joyce / Andrew de Andrade (Investment Banking)

Tel: [phone]

Allenby Capital Limited (Joint Broker)

Nick Naylor / James Reeve (Corporate Finance)

Amrit Nahal (Sales and Corporate Broking)

Tel: [phone]

The person responsible for arranging the release of this announcement on behalf of the Company is Dr. Nabil Lawandy, Chief Executive Officer of the Company.

Chief Executive Officer's statement

Introduction

Revenue for the first half was $21,620k (2025: $34,965k), a decrease of 38.2% from H1 2025 which was dominated by the sensor production contract with our customer reaching full revenue recognition during that period. Other factors that affected our revenues in H1 came primarily from the security printing group which had delays in sales of product, which have strongly recovered in the first part of H2, and a drop in optical materials sales. Revenue on the sensor production contract was $9,891k (2025: $11,278k), and a further $620k was recognized on completion of the pre-production development contract with the same customer.

Gross profit was $10,633k (2025: $19,922k), with gross margin of 49.2% (2025: 57.0%). Adjusted EBITDA (before stock compensation expense and excluding non-controlling interest) decreased 68.7% to a fully consolidated $4,932k (2025: $15,764k) and adjusted PBTA decreased 71.2% to $4,138k (2025: $14,347k). In addition to the reversible losses from the security printing group, we mounted an accelerated effort to deliver software capability on time to our sensor client.. We spent approximately $0.5M on contract employees in H1 to ensure the timely delivery of this capability. Net income attributable to the Company including all of these factors was $2,905k (2025: $10,064k), or US 6.0 cents per basic share (2025: US 21 cents).

Having used cash in operations of $548k (2025: $670k), cash at the end of the period amounted to $14,893k (2025: $2,556k), excluding $1,439k of restricted cash and investments (2025: $5,000k). Operating cash flow in the period included $11.4M collected from our sensor customer, offset principally by the payment of income taxes on the record 2025 profits, reflected in a reduction of $3,186k in accrued expenses and taxes payable, and a reduction of $1,359k in deferred revenue. The annual dividend of $0.136 per share (2025: $0.116), totaling $6,586k, was declared on 30 March 2026 and paid to shareholders on 17 July 2026, after the period end. It is included in current liabilities on 30 June 2026.

Total operating expenses were $7,093k (2025: $5,845k). Research and development expenses decreased 2.2% to $1,183k, general and administrative expenses increased 18.8% to $4,901k and selling and marketing expenses increased 9.0% to $557k. With the completion of the materials order for our government customer, we produced 10,000 lbs of material with 77% of the material sold in H1 and the rest in inventory

Spectra Systems had $1,969k of debt at 30 June 2026, a 39.5% reduction from 31 December 2025 ($3,256k) and a 47.0% reduction from 30 June 2025 ($3,718k), following repayments in the period.

Review of Operations

Authentication and Security Printing Business

The Authentication Systems business generated revenue of $13,860k (2025: $23,582k) and Adjusted EBITDA of $5,421k (2025: $14,277k).

Revenue on the sensor production contract with our central bank customer was $9,891k in H1 2026 (H1 2025: $11,278k). With cumulative revenue of $40,083k, the production contract, including the related statement of work on preparing for sensor parts obsolescence was fully recognized by 30 June 2026. Cumulative billings on the contract were $27,978k at 30 June 2026, and the balance of $12,105k, included in unbilled receivables, will be billed as the remaining milestones are achieved and sensors are delivered to specific currency processing sites. One of the non-essential features of the sensor capability related to a remote service feature was not performing at the levels specified by the contract and rather than pay a fixed fee of $1.265M back to the customer, we spent approximately $1.5M in high-cost software engineering contractors to resolve the issue in H1 and maintain our strong relationship with our most valued customer. The pre-production development contract was completed in the period with the final milestone of $620k recognized. The sensor maintenance contract executed in 2025, worth approximately $6.7M from 2026 to 2030, contributed maintenance revenue in the period. The two additional sensor orders of $1.3M received in May and $1.4M confirmed in July, will be delivered between Q3 2026 and Q2 2027.

Revenue from the quality control reader contract with a government customer was $1,471k in the period, representing the design stage milestones, with the installation stage expected to follow in 2027.  Our optical materials business segment had lower sales with an expected recovery to a full year revenue decrease of approximately $90k. Additional revenue of $440k was received from the sale of covert materials to De La Rue with a total to date of $569k.

The security printing group generated revenue of $6,163k (2025: $9,293k) and an EBITDA loss of $(1,180k) (2025: EBITDA of $426k) which, after depreciation and amortization, resulted in a net loss of $(2,054k) (2025: net loss of $(847k)).

The security printing arm executed contract with HMRC for the UK vaping duty stamp scheme in February 2026. CSP led the contract bid with SICPA SA and is responsible for the production and supply of stamps, with high level forensic authentication features and associated devices provided by Spectra from Rhode Island. The total estimated contract value is $43.8Mover five years, with an option for an additional year. Transitional stamps became available for purchase from April 2026, the scheme becomes mandatory on 1 October 2026, and full enforcement begins on 1 April 2027. The combination of stamp production ahead of later than expected orders and a delivery delay of paper for other security printing work, together resulted in most of the group’s loss in H1. These losses are expected to be reversed in the second half   and result in a small estimated total year profit by the end of H2. In addition, following contract commencement and continued engagement with industry participants and other stakeholders, the security printing group has received orders over the past two months that are significantly higher than originally anticipated for the ramp up phase. Based on the current production volumes, the Company has therefore increased its internal forecast for tax stamp volumes in 2027. The restructuring of the security printing group continued in the first half with the first phase, in the UK facility, has been completed. The second phase of restructuring for profitability is underway in France.

In addition, the concerted effort in H1 to convert postage stamp organizations to hybrid bar coded stamps with higher margins results in the beginning of H2 with PostNL placing their first barcoded stamp order and Swiss Post confirming the conversion of their stamp program to hybrid stamps, resulting in an increase in revenue over the five-year contract of approximately 40%

The gaming security software side of the Company's business, the Secure Transactions Group, generated revenue of $1,597k (H1 2025: $2,089k) and Adjusted EBITDA of $691k (H1 2025: $1,062k). Although this may imply a decreasing trend, taken in the context of last year’s revenue being driven by a specific industry event, this profit is based on normal operating environment which clearly shows that the group is establishing a track record of profit stability.

On the polymer banknote side of the integrated business, we delivered a 10,000-sheet sample of our substrate to one of the central banks we are engaged with and were delighted to receive a full qualification of our Fusion product. We are optimistic that this could lead to a substantial order in H2 for the purpose of validating our large-scale production capabilities that would result in a transformative level of penetration in this market. With this important milestone, we have invested further in automated inspection systems to allow us to produce multi-billion banknote quantities in our Wolverhampton facility.

In addition, we have taken steps to solidify our biaxially oriented polypropylene (BOPP) supply chain and have validated a second supplier of BOPP. To further differentiate ourselves from the other suppliers, we continue to have discussions with a longtime, UK -based partner of CSP as a potential acquisition.

Our smartphone technology, although stalled by unforeseen complications with our partner at the time and followed by delays by the target customer, has nonetheless made significant technological advancements on the printing side of the technology. During H1 and into H2, we have worked closely with ROTOFLEX AG, a Swiss based supplier of high-quality security inks to develop an ink which is targeted to UV-flexographic printing, which is more ubiquitous in the tax stamp industry, our primary target market.

Strategy and Prospects

The Company's strategy for increasing revenue and earnings has three initiatives:

• developing breakthrough products with large market opportunities and potential in-house margin leverage

• selling more products to existing customers

• partnering with key partners with products already in use which we can upgrade for increased profits for both ourselves and our partners.

Focus security printing customer base on polymer substrate production and tax, revenue, and hybrid stamps.,

Our newest in-house developed and validated product is UberDullTM , a patent pending product which can disruptively alter the security printing industry by changing the economics of UV-dull security substrates.

On selling more products to existing customers, examples include:

• the $14.5M development and $39.6M production contracts with our long-term customer

• the $1.9M QC reader contract with an organization related to the sensor contract

• the Swiss Post conversion to hybrid stamps, and

• the $900k sale of phosphors in 2027 and large-scale testing with SICPA SA of our red phosphor.

The partnering strategy approach includes:

• HMRC vaping duty stamp contract with SICPA SA,

• joint development of an ink with our exceptional performance red phosphor with ROTOFLEX AG for one of their larger tax stamp customers, NASPS in Egypt

• partnering with Security Papers in the UK to include covert security features for an upcoming central bank tender.

Re-alignment of the security printing group customer base:

• This has been ongoing and has already yielded a positive impact.  We have transitioned one customer to hybrid and expect a second to do so in the next 12-18 months.  With the successful bid for the HMRC business with a partner that dominates the tax stamp industry, we are well on the way to winning other similar contracts on the credibility of the UK HMRC contract. Polymer is going to be manufactured for sale in 2026 and will lead the transition to a business driven by polymer substrates and tax and revenue stamps, both with significantly higher margins and growth as compared to the legacy postage stamp business when Cartor Security Printers was acquired. 

Prospects

Our prospects for the future are comprised of several opportunities across all our operating groups.  The prospects are best segmented into near term, 2026-2028 and longer term, 2029–2031-time frames. As would be expected, there is more visibility and confidence in the shorter time frame estimates.

The shorter-term prospects include significant sales of our red phosphor, a development contract for a tobacco device, 40%-50% higher sales of HMRC products, and a White Paper study for our sensor customer.

We also expect to have further Fusion substrate sales in 2026, an order from a central bank with which we have been qualified, and the possibility of an order  for first billion notes for India conversion to polymer with our partner in India, UFlex Ltd.

Longer term prospects include covert materials sales relating to a joint effort with Security Papers in the UK for an upcoming ECB tender, , sales relating to smartphone authentication of tax stamps, authentication inks for a tobacco device,

Outside Service Providers

• With the completion of the revenue recognition of the sensor contract to further facilitate the consolidation of the UK-based security printing group (Cartor Security Printers), and the Company has decided to transition its auditors from Miller Wachman to Crowe LLP, which currently handles the UK financials.

• The Company has also transitioned our patent portfolio management and new patent filings from Pryor Cashman in New York, NY to Morse Law in Boston Massachusetts.

Nabil M. Lawandy

Chief Executive Officer

30 September 2026

Consolidated statements of income for the half year ended 30 June 2026

	Half Year	Half Year	Full Year
	to 30 Jun 2026	to 30 Jun 2025	to 31 Dec 2025
	Unaudited	Unaudited	Audited
	USD '000	USD '000	USD '000
Revenues
Product	$ 18,919	$ 32,295	$ 56,655
Service	2,701	2,670	7,629
Total revenues	21,620	34,965	64,284
Cost of sales	10,987	15,043	27,212
Gross profit	10,633	19,922	37,072
Operating expenses
Research and development	1,183	1,210	2,697
General and administrative	4,901	4,124	8,984
Unabsorbed manufacturing overhead - idle capacity	452	-	-
Sales and marketing	557	511	1,089
Total operating expenses	7,093	5,845	12,770
Operating profit	3,540	14,077	24,302
Interest income (expense), net	108	15	13
Other income	122	-	-
Foreign currency gain (loss)	(19)	(32)	132
Extinguishment of contingent consideration	-	-	2,367
Profit before taxes	3,751	14,060	26,814
Income tax expense	850	4,000	6,769
Net income	2,901	10,060	20,045
Net loss attributable to noncontrolling interest	(4)	(4)	(11)
Net income attributable to Spectra Systems Corporation	$ 2,905	$ 10,064	$ 20,056
Earnings per share
Basic	$ 0.06	$ 0.21	$ 0.42
Diluted	$ 0.06	$ 0.21	$ 0.41

All of the Group's operations are continuing.

Consolidated statements of comprehensive income for the half year ended 30 June 2026

	Half Year	Half Year	Full Year
	to 30 Jun 2026	to 30 Jun 2025	to 31 Dec 2025
	Unaudited	Unaudited	Audited
	USD '000	USD '000	USD '000
Net income	$ 2,901	$ 10,060	$ 20,045
Other comprehensive income (loss)
Unrealized gain (loss) on currency exchange	(161)	638	667
Reclassification for realized (gain) loss in net income	19	32	(132)
Total other comprehensive income (loss)	(142)	670	535
Comprehensive income	2,759	10,730	20,580
Net gain (loss) attributable to noncontrolling interest	(4)	(4)	(11)
Comprehensive income attributable to Spectra Systems Corporation	2,763	10,734	20,591

Consolidated balance sheets as of 30 June 2026

	As of	As of	As of
	30 June 2026	30 June 2025	31 December 2025
	Unaudited	Unaudited	Audited
	USD '000	USD '000	USD '000
Current assets
Cash and cash equivalents	$ 14,893	$ 2,556	$ 14,820
Trade receivables, net of allowance	1,535	2,558	2,906
Unbilled and other receivables	14,713	14,431	14,806
Inventory	7,630	9,153	8,027
Prepaid expenses and other current assets	1,527	827	872
Total current assets	40,298	29,525	41,431
Non-current assets
Property, plant and equipment, net	7,268	9,195	8,232
Operating lease right of use assets, net	5,025	5,535	4,946
Intangible assets, net	12,828	13,797	13,040
Restricted cash and investments	1,439	5,000	3,180
Investments	99	102	100
Deferred tax assets, net	1,479	1,020	1,381
Other assets	58	65	58
Total non-current assets	28,196	34,714	30,937
Total assets	$ 68,494	$ 64,239	$ 72,368
Current liabilities
Accounts payable	$ 3,237	$ 4,993	$ 4,248
Accrued expenses and other liabilities	1,079	976	1,482
Dividends payable	6,586	-	-
Line of credit and bank overdrafts	818	1,246	391
Operating lease liabilities, short term	933	330	647
Taxes payable	75	1,592	3,223
Third party loans, short term	816	1,866	2,023
Deferred revenue	1,355	2,025	2,719
Total current liabilities	14,899	13,028	14,733
Non-current liabilities
Operating lease liabilities, long term	4,277	5,341	4,484
Third party loans	1,153	1,852	1,233
Contingent consideration	-	2,513	-
Deferred revenue	556	-	560
Total non-current liabilities	5,986	9,706	6,277
Total liabilities	20,885	22,734	21,010
Stockholders' equity
Common stock	484	482	483
Additional paid-in capital - common stock	57,776	57,654	57,702
Accumulated other comprehensive income (loss)	14	292	156
Treasury stock	(34)	-	(36)
Accumulated deficit	(11,171)	(17,473)	(7,491)
Total Spectra Systems Corporation stockholders' equity	47,069	40,955	50,814
Noncontrolling interest	540	550	544
Total stockholders' equity	47,609	41,505	51,358
Total liabilities and stockholders' equity	$ 68,494	$ 64,239	$ 72,368

Amounts are rounded independently to the nearest thousand

Consolidated statements of cash flows for the half year ended 30 June 2026

	Half Year	Half Year	Full Year
	to 30 Jun 2026	to 30 Jun 2025	to 31 Dec 2025
	Unaudited	Unaudited	Audited
	USD '000	USD '000	USD '000
Cash flows from operating activities
Net income	$ 2,901	$ 10,060	$ 20,045
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Extinguishment of contingent consideration	-	-	(2,531)
Depreciation and amortization	1,355	1,696	2,903
Stock-based compensation expense	33	49	98
Lease expense	-	53	102
Deferred taxes	(94)	1,000	468
Translation and other non-cash items	-	-	-
Changes in operating assets and liabilities
Accounts receivable	1,359	659	238
Unbilled and other receivables	7	(9,805)	(10,195)
Inventory	334	(2,631)	(1,595)
Prepaid expenses and other assets	(594)	465	406
Accounts payable	(1,304)	1,173	311
Accrued expenses and taxes payable	(3,186)	65	2,056
Deferred revenue	(1,359)	(3,454)	(2,199)
Net cash provided by (used in) operating activities	(548)	(670)	10,107
Cash flows from investing activities
Restricted cash and investments	1,740	(2,937)	(1,117)
Payment of patent and trademark costs	(163)	(358)	(308)
Purchases of property, plant and equipment, net	(158)	(993)	(186)
Net cash provided by (used in) investing activities	1,419	(4,288)	(1,611)
Cash flows from financing activities
Repurchase of stock	-	-	(36)
Dividends paid	-	(5,602)	(5,612)
Third party loan principal payments	(1,254)	(1,035)	(1,365)
Line of credit and bank overdrafts	440	794	(48)
Proceeds from exercise of stock options	42	-	-
Net cash used in financing activities	(772)	(5,843)	(7,061)
Effect of exchange rate on cash and cash equivalents	(26)	44	31
Net increase (decrease) in cash and cash equivalents	73	(10,757)	1,466
Cash and cash equivalents, beginning of period	14,820	13,313	13,354
Cash and cash equivalents, end of period	$ 14,893	$ 2,556	$ 14,820

Amounts are rounded independently to the nearest thousand

Notes to financial information

1. Basis of preparation

This report was approved by the Directors on 29 September 2026.

This financial information has been prepared using the recognition and measurement principles of US Generally Accepted Accounting Principles (GAAP). The Group has not elected to apply IAS 34 Interim Financial Reporting.

The principal accounting policies used in preparing the interim results are those the Company expects to apply in its financial statements for the year ending 31 December 2026 and are unchanged from those disclosed in the Company's Annual Report for the year ended 31 December 2025.

The results for the half year are unaudited. The financial information for the year ended 31 December 2025 does not constitute the full statutory accounts for that period. The Annual Report and financial statements for the year ended 31 December 2025 have been filed with the Registrar of Companies. The Independent Auditors' Report on the financial statements for the year ended 31 December 2025 was unmodified and did not draw attention to any matters by way of emphasis.

2. Earnings per share

The calculation of basic earnings per share is based on the net income attributable to Spectra Systems Corporation divided by the weighted average number of common shares outstanding. Diluted earnings per share is calculated by considering the dilutive impact of common stock equivalents under the treasury stock method as if they were converted into common stock as of the beginning of the period or as of the date of grant, if later. Excluded from the calculation of diluted earnings per common share for the six months ended 30 June 2026 were 582,000 shares related to stock options (six months ended 30 June 2025: 132,000; year ended 31 December 2025: 132,000) because their exercise prices would render them anti-dilutive. The following table shows the calculation of basic and diluted earnings per common share.

	Half Year	Half Year	Full Year
	to 30 Jun 2026	to 30 Jun 2025	to 31 Dec 2025
Numerator:
Net income	$ 2,901,314	$ 10,059,597	$ 20,055,896
Denominator:
Weighted average common shares	48,358,798	48,270,831	48,289,071
Effect of dilutive securities:
Stock options	408,475	755,756	621,332
Diluted weighted average common shares	48,767,273	49,026,587	48,910,403
Earnings per common share:
Basic:	$ 0.06	$ 0.21	$ 0.42
Diluted:	$ 0.06	$ 0.21	$ 0.41

3. Dividend

On 30 March 2026 the Board declared an annual dividend of $0.136 per share, paid on 17 July 2026 to shareholders of record on 3 July 2026 (ex-dividend date 2 July 2026). The dividend of $6,586k was recognized as a liability at 30 June 2026.

4. French reorganization

The Company's security printing business is carried on through Cartor Holdings Limited and its subsidiaries: Cartor Security Printers Limited in the United Kingdom, Cartor Security Printing SAS in France, and the French branch of Cartor Security Print Group Limited. The Board approved a reorganization of the security printing business in 2025. The United Kingdom phase was completed in the first half of 2026 and the French phase efforts are continuing.

At 30 June 2026 the French operations continued to trade. Accordingly, no restructuring costs, termination benefits, or write down of the French assets are recognized in these interim financial statements. The French operations are included in these interim financial statements at revenue of $3,963k and a loss of $404k for the six months, with net liabilities of $23k before intra-group balances. Amounts owed by the French company to other Cartor companies of EUR 1,055k and amounts owed to it of EUR 302k are eliminated on consolidation

.

5. Reclassification

Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

6. Copies of this statement are available to the public on the Company's website at http://www.spsy.com.

Appendix - Reconciliation of Non-GAAP measures

The Company publishes certain additional information in a non-statutory format in order to provide readers with an increased insight into the underlying performance of the business. Reconciliations to the GAAP measures are shown in the following tables:

	Half Year	Half Year	Full Year
	to 30 Jun 2026	to 30 Jun 2025	to 31 Dec 2025
	Unaudited	Unaudited	Unaudited
	USD '000	USD '000	USD '000
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)
Operating profit	$ 3,540	$ 14,077	$ 24,302
Depreciation	1,005	1,400	2,045
Amortization	350	240	851
Stock compensation	33	43	98
Operating loss - noncontrolling interest	4	4	11
Stock compensation - noncontrolling interest	-	-	-
Adjusted EBITDA	$ 4,932	$ 15,764	$ 27,307
Adjusted profit before taxes and amortization (PBTA)
Profit before taxes	$ 3,751	$ 14,060	$ 26,814
Gain on extinguishment of contingent consideration	-	-	(2,531)
Amortization	350	240	851
Stock compensation	33	43	98
Operating loss - noncontrolling interest	4	4	11
Stock compensation - noncontrolling interest	-	-	-
Adjusted PBTA	$ 4,138	$ 14,347	$ 25,243
Adjusted earnings per share
Adjusted PBTA	$ 4,138	$ 14,347	$ 25,243
Income tax expense	(850)	(4,000)	(6,769)
Adjusted earnings	$ 3,288	$ 10,347	$ 18,474
Diluted weighted average common shares	48,767,273	49,026,587	48,910,403
Adjusted earnings per share	$ 0.067	$ 0.211	$ 0.378

 

END