Quarterly Activities/Appendix 4C Cash Flow Report

• Alexium faced manufacturing challenges in Q4 FY26, impacting sales ramp-up
• The company has addressed manufacturing issues and renewed customer commitments
• New customer requests for mPCM, dehumidification, and flame-resistant coatings
• Alexium appointed Randy Lane as COO to strengthen leadership
• The company remains focused on profitable results from mPCM and flame-retardant technology

Alexium International Group Ltd reported a challenging Q4 FY26 due to manufacturing issues at the Dayton Facility, which disrupted production volumes and delayed sales ramp-up. The company has addressed these issues, and customers are renewing their purchase commitments. New customer requests for mPCM, dehumidification, and flame-resistant coatings increased in Q4. Alexium appointed Randy Lane as Chief Operating Officer to strengthen leadership. The company remains focused on profitable results from mPCM and flame-retardant technology. Sales were comparable to the previous quarter at $1.2 million. Cash receipts increased by $750 thousand, primarily due to higher sales volume. Financing activities included routine activity on the Line of Credit, with a balance of $360 thousand against an eligible borrowing base of $206 thousand. The company continues to receive strong support from lenders and major shareholders.