Quarterly Activities/Appendix 4C Cash Flow Report

• Cash and cash equivalents at A$5.39 million as of 30 September 2026
• Q1 FY27 revenue of approximately A$829k, lower due to defense procurement timing
• Significant US facility expansion and team growth completed
• Major North American military order of A$532k received
• Production of BF-100 fixed wing target drone initiated

Boresight Ltd. has released its Quarterly Activities Report and Appendix 4C Cash Flow Report for the quarter ended 30 September 2026. The company reported cash and cash equivalents of A$5.39 million with no debt. Q1 FY27 revenue was approximately A$829k, reflecting lower deliveries due to the lumpy timing of defense procurement. The company used the period to build A$1.45 million of inventory ahead of anticipated demand. US production moved to a larger facility in Huntsville, Alabama, with A$136k invested in expansion. Boresight secured a repeat purchase order from a North American military training customer worth A$532k, approximately three times the value of the previous order. Production has commenced at the US Huntsville facility. The BQ-750 Block 2 was released to market on 6 July 2026, with first orders delivered. Positive indicators from global conference attendance point to significant interest in the BF100 fixed wing target drone platform. The company spent A$962,516 on materials to build inventory and fulfill orders in the quarter, bringing the total since listing to A$1,128,581. Net operating cash outflow for the quarter was A$2.28 million, reflecting lower receipts ahead of payment for the North American order and purchases of long-lead electronics and components.

Boresight's priorities for Q2 FY27 include delivering the North American military order, completing construction of the Huntsville facility, supplying BQ-750 Block 2 drones for an international counter-UAS activity, and commencing full-rate production of the BF-100.