Description

/s/ Jeremy Levin

Simplified operations

Agreed settlement with DFA investors

Progressing strategic review

Settlement with DFA investors – Opthea completed binding settlement and release agreements with investors under the Development Funding Agreement (“DFA”), eliminating a major liability and providing clarity over future cash resources.

Significantly lower operating costs – With clinical programs concluded and operations streamlined, quarterly research and development expenditure declined 80 % versus the prior quarter, and personnel costs fell 94 %.

Balance-sheet improvement – Opthea’s cash position to strengthen materially during the next reporting period through its receipt of an R&D tax inventive (see ASX announcement dated 6 October 2025), creating flexibility for value-building initiatives.

Strategic review under way – Opthea is reviewing all internal assets, intellectual-property holdings, and potential partnerships to determine the optimal path for shareholder value creation. It is intended that an update will be provided later in 2025.

Email: info@opthea.com

Consolidated statement of cash flows

Cash flows from operating activities

Receipts from customers

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

Dividends received (see note 3)

Interest received

Interest and other costs of finance paid

Income taxes paid

Government grants and tax incentives

Other (provide details if material)

Net cash from / (used in) operating activities

Cash flows from investing activities

Payments to acquire or for:

(a)   entities

(b)   businesses

(c)   property, plant and equipment

(d)   investments

(e)   intellectual property

(f)   other non-current assets

Consolidated statement of cash flows

Proceeds from disposal of:

(a)   entities

(b)   businesses

(c)   property, plant and equipment

(d)   investments

(e)   intellectual property

(f)   other non-current assets

Cash flows from loans to other entities

Dividends received (see note 3)

Other (provide details if material)

Net cash from / (used in) investing activities

Cash flows from financing activities

Proceeds from issues of equity securities (excluding convertible debt securities)

Proceeds from issue of convertible debt securities

Proceeds from exercise of options

Transaction costs related to issues of equity securities or convertible debt securities

Proceeds from borrowings

Repayment of borrowings

Transaction costs related to loans and borrowings

Dividends paid

Other (provide details if material)

Net cash from / (used in) financing activities

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)

See chapter 19 of the ASX Listing Rules for defined terms.

Consolidated statement of cash flows

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

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

6.

Payments to related parties of the entity and their associates

See chapter 19 of the ASX Listing Rules for defined terms.

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.

$US’000

$US’000

Loan facilities

Credit standby arrangements

Other (please specify)

Total financing facilities

Unused financing facilities available at quarter end

8.

Estimated cash available for future operating activities

Net cash from / (used in) operating activities (item 1.9)

Cash and cash equivalents at quarter end (item 4.6)

Unused finance facilities available at quarter end (item 7.5)

Total available funding (item 8.2 + item 8.3)

Estimated quarters of funding available (item 8.4 divided by item 8.1) (A)

(A)  The future cash burn is expected to decrease due to the discontinuation of the Shore and Coast development program and settlement of DFA financial liability.

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.

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?

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?

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?

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.

See chapter 19 of the ASX Listing Rules for defined terms.

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

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

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.

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.

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.

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”.

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.

See chapter 19 of the ASX Listing Rules for defined terms.