Oncolys BioPharma : Non-consolidated Financial Results for the Nine Months Ended September 30, 2025

November 7, 2025

Company name: Oncolys BioPharma Inc. Stock exchange listing: Tokyo Stock Exchange Code number: 4588

URL: https://www.oncolys.com Representative: Yasuo Urata, President & CEO Contact: Kohei Hata, Executive Officer Email: [email protected]

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on financial results: No Schedule of financial results briefing session: No

(Amounts of less than one million yen are rounded down.)

1. Financial Results for the Nine Months Ended September 30, 2025 (January 1, 2025 to September 30, 2025)

   1. Operating Results (% indicates changes from the previous corresponding period.)

      	Net sales	Operating profit	Ordinary profit	Profit
      Nine months ended	Million yen %	Million yen %	Million yen %	Million yen %
      September 30, 2025	28 (9.0)	(1,571) -	(1,614) -	(1,617) -
      September 30, 2024	31 (50.2)	(1,230) -	(1,243) -	(1,246) -

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      September 30, 2025	(64.63)	-
      September 30, 2024	(59.56)	-

   2. Financial Position

   	Total assets	Net assets	Equity ratio
   	Million yen	Million yen	%
   As of September 30, 2025	2,188	1,770	79.1
   As of December 31, 2024	3,198	2,752	85.8

   (Reference) Equity: As of September 30, 2025: ¥1,731 million

   As of December 31, 2024: ¥2,744 million

2. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended December 31, 2024 Fiscal year ending December 31, 2025	Yen - -	Yen 0.00 0.00	Yen - -	Yen 0.00	Yen 0.00
   Fiscal year ending December 31, 2025 (Forecast)				0.00	0.00

   (Note) Revision to the forecast for dividends announced most recently: No

3. Financial Results Forecast for the Fiscal Year Ending December 31, 2025 (January 1, 2025 to December 31, 2025) Financial results forecast is not disclosed due to the difficulty of making reasonable estimates. For details, please see "1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Financial Results Forecast and Other Forward-looking Information" on page 2 of the supplementary material.

1. Accounting policies adopted specially for the preparation of quarterly financial statements: No

2. Changes in accounting policies, changes in accounting estimates and retrospective restatement

   1. Changes in accounting policies due to the revision of accounting standards: No

   2. Changes in accounting policies other than 1) above: No

   3. Changes in accounting estimates: No

   4. Retrospective restatement: No

3. Total number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): September 30, 2025: 25,866,600 shares

      December 31, 2024: 24,961,600 shares

   2. Total number of treasury shares at the end of the period: September 30, 2025: 17,641 shares

      December 31, 2024: 101,238 shares

   3. Average number of shares during the period:

Nine months ended September 30, 2025: 25,018,117 shares

Nine months ended September 30, 2024: 20,932,636 shares

• Review of the attached quarterly financial statements by certified public accountants or an audit corporation: No

• Explanation of the proper use of financial results forecast and other notes (Note regarding forward-looking statements, etc.)

The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of the release of these materials and certain assumptions deemed reasonable, and do not represent a commitment from the Company that they will be achieved. In addition, actual financial results, etc. may differ significantly due to a wide range of factors. For the assumptions used in forecasting financial results and notes regarding the use of financial forecasts, etc., please see "1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Financial Results Forecast and Other Forward-looking Information" on page 2 of the supplementary material.

Table of Contents

1. Qualitative Information on Quarterly Financial Results for the Period under Review 2

   1. Explanation of Business Results 2

   2. Explanation of Financial Position 2

   3. Explanation of Financial Results Forecast and Other Forward-looking Information 2

2. Quarterly Financial Statements and Primary Notes 3

   1. Quarterly Balance Sheets 3

   2. Quarterly Statements of Income 5

   3. Notes to Quarterly Financial Statements 6

      (Notes on going concern assumption) 6

      (Notes to statements of cash flows) 6

      (Notes in the case of significant changes in shareholders' equity) 6

      (Segment information, etc.) 6

      (Revenue recognition) 6

      (Per share information) 7

      (Significant subsequent events) 7

3. Supplemental Information 8

   1. Research and Development Activities 8

1. Qualitative Information on Quarterly Financial Results for the Period under Review

   1. Explanation of Business Results

      During the nine months ended September 30, 2025, although uncertainties increased due to U.S. tariff policy, the Japanese economy saw robust corporate activities, with the expectation of limited impacts of the tariff policy following the agreement between Japan and the U.S. Furthermore, the unstable situation for the overseas economy is expected to improve due to declining risk factors such as signs of a resolution of the Israel conflict.

      Under these circumstances, the Company has been pursuing a vision of "Providing new options to future cancer treatments, and leaving our footprint in the history of cancer treatment through those achievements." In particular, the Company is promoting research, development, and business activities with a focus on oncolytic virus OBP-301. The Company moves from the conventional single business model dependent on licenses to a "hybrid business model" that combines a pharmaceutical company-type business model and a license-type business model with the development of the domestic business of OBP-301 as a pharmaceutical company-type business model.

      In addition, concerning LINE-1 inhibitor OBP-601 (censavudine), Transposon Therapeutics, Inc. (hereinafter "Transposon") is conducting clinical trials at its own expense based on a license agreement and proceeding with business activities.

      For details of the Company's activities, please refer to "3. Supplemental Information (1) Research and Development Activities."

      For the nine months ended September 30, 2025, the Company recorded net sales of ¥28,546 thousand (net sales of ¥31,384 thousand in the same period of the previous fiscal year), and operating loss was ¥1,571,067 thousand (operating loss of ¥1,230,138 thousand in the same period of the previous fiscal year). In addition, the Company recorded interest income of ¥3,348 thousand, and other items as non-operating income, and interest expenses of ¥3,803 thousand, amortization of restricted stock remuneration of ¥6,098 thousand, share acquisition rights issuance costs of ¥7,177 thousand, share issuance costs of ¥1,513 thousand, foreign exchange losses of

      ¥28,296 thousand, and other items as non-operating expenses, resulting in ordinary loss of ¥1,614,576 thousand (ordinary loss of ¥1,243,866 thousand in the same period of the previous fiscal year). As a result, loss was

      ¥1,617,044 thousand (net loss of ¥1,246,692 thousand in the same period of the previous fiscal year).

   2. Explanation of Financial Position

      Assets at the end of the third quarter of the fiscal year under review were ¥2,188,416 thousand (31.6% decrease compared with the end of the previous fiscal year), owing partly to a decrease in cash and deposits. Liabilities were ¥417,560 thousand (6.5% decrease compared with the end of the previous fiscal year), owing partly to a decrease in income taxes payable. Net assets were ¥1,770,855 thousand (35.7% decrease compared with the end of the previous fiscal year), owing partly to loss incurred.

   3. Explanation of Financial Results Forecast and Other Forward-looking Information

   The Company still has a small stable revenue base, and our financial results fluctuate greatly depending on the presence or absence of milestone revenue payments generated from our domestic distribution partnership agreement for OBP-301, achieving the development event of LINE-1 inhibitor OBP-601 by Transposon, and that company's IPO, M&A and other corporate action that generates milestone revenue payments.

   For these reasons, we believe that it is difficult to calculate an appropriate and reasonable figure for the earnings forecast at this time due to the many undetermined factors that will affect our business performance, and therefore, we refrain from disclosing the forecast.

2. Quarterly Financial Statements and Primary Notes

(1) Quarterly Balance Sheets

(Thousand yen) As of December 31, 2024 As of September 30, 2025

Assets

Current assets

Total current assets 3,098,244 2,111,987

Other - 10

Non-current assets