Quarterly Activities & Appendix 4C Cash Flow Reports

• Revenue of $766,000 achieved in the quarter
• Gross margin of 61%, an improvement on prior corresponding period
• Significant positive momentum with the AerisTech Pty Ltd Joint Venture

Aeris Environmental Ltd reported quarterly revenue of $766,000, an increase of 5% on the previous quarter. The company's gross margin for the quarter was 61%, an improvement on the prior corresponding period and above the targeted range. Operating expenses continued to be well-controlled and were in the targeted range. The company's cash receipts were $501,000 for the quarter, and cash and cash equivalents were $1,029,000 on 31 December 2024. Aeris entered into a binding agreement with Cognian Technologies Limited to establish the AerisTech corporate joint venture, expanding the company's suite of proprietary solutions. The joint venture has onboarded a new enterprise customer, deploying hardware and software to aid in the collection and visualization of facility data, which is expected to deliver cost savings and risk reductions for the customer. Aeris continues to build a strong and rapidly-growing new enterprise customer pipeline for its AerisTech energy, carbon management and reduction ecosystem. The consumables segment of the business also continued to expand during the quarter, with both domestic and international revenues growing. Aeris has achieved listing as a qualified supplier to Wilmar International, a major international agribusiness, and a large industrial customer in China has been developing a new chemical product with the assistance of Aeris' proprietary biocide technology.

The company expects growth to be driven both in terms of new customers and significant expansion with the customers now being developed. Sales to Wilmar are expected to be material, following the implementation of the company's manufacturing in China, which is anticipated to commence before the end of the current financial year.

Aeris is now well positioned to focus on its growth objectives, expanding its capabilities to deliver large enterprise programmes and building a domestic and international network of distribution and channel partners. The market for Universal Building Intelligence is likely to be driven by both legislation and sustainability compliance directives, and Aeris has a strategic vision of emerging leadership in this multibillion-dollar marketplace.