Oncolys BioPharma : Non-consolidated Financial Results for the Six Months Ended June 30, 2025

August 8, 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 filing semi-annual securities report: August 8, 2025 Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on financial results: No Schedule of financial results briefing session: Scheduled (for analysts)

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

1. Financial Results for the Six Months Ended June 30, 2025 (January 1, 2025 to June 30, 2025)

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

      	Net sales	Operating profit	Ordinary profit	Profit
      Six months ended	Million yen %	Million yen %	Million yen %	Million yen %
      June 30, 2025	28 (9.0)	(1,267) -	(1,311) -	(1,313) -
      June 30, 2024	31 (50.2)	(793) -	(752) -	(754) -

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      June 30, 2025	(52.85)	-
      June 30, 2024	(36.96)	-

   2. Financial Position

   	Total assets	Net assets	Equity ratio
   	Million yen	Million yen	%
   As of June 30, 2025	1,932	1,438	74.1
   As of December 31, 2024	3,198	2,752	85.8

   (Reference) Equity: As of June 30, 2025: ¥1,431 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 semi-annual 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): June 30, 2025: 24,961,600 shares

      December 31, 2024: 24,961,600 shares

   2. Total number of treasury shares at the end of the period: June 30, 2025: 114,238 shares

      December 31, 2024: 101,238 shares

   3. Average number of shares during the period:

Six months ended June 30, 2025: 24,849,129 shares

Six months ended June 30, 2024: 20,421,423 shares

• These semi-annual financial results are outside the scope of review by certified public accountants or an audit corporation.

• 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. Semi-annual Financial Statements and Primary Notes 3

   1. Semi-annual Balance Sheets 3

   2. Semi-annual Statements of Income 5

   3. Semi-annual Statements of Cash Flows 6

   4. Notes to Semi-annual Financial Statements 7

      (Notes on going concern assumption) 7

      (Notes in the case of significant changes in shareholders' equity) 7

      (Segment information, etc.) 7

      (Revenue recognition) 7

      (Significant subsequent events) 7

3. Supplemental Information 10

   1. Research and Development Activities 10

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

   1. Explanation of Business Results

      During the six months ended June 30, 2025, the Japanese economy faced heightened uncertainties over the future, among others, with deteriorated economic sentiment of export related industries including motor vehicles, which are exposed to the impacts of tariff policy of the U.S. Trump administration, as indicated in the Bank of Japan's Tankan survey for July 2025. Furthermore, the unstable situation for the overseas economy is expected to persist due to political factors such as the policy trend in the U.S., as well as the continued uncertainties over the Middle East.

      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 OBP-301 virotherapy for cancer. 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 six months ended June 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 ¥1,267,127 thousand (operating loss of ¥793,371 thousand in the same period of the previous fiscal year). In addition, the Company recorded interest income of ¥1,824 thousand as non-operating income, and interest expenses of ¥2,289 thousand, amortization of restricted stock remuneration of ¥5,030 thousand, foreign exchange losses of ¥39,061 thousand, and other items as non-operating expenses, resulting in ordinary loss of ¥1,311,654 thousand (ordinary loss of

      ¥752,997 thousand in the same period of the previous fiscal year). As a result, loss was ¥1,313,230 thousand (net loss of ¥754,868 thousand in the same period of the previous fiscal year).

   2. Explanation of Financial Position

      Assets at the end of the semi-annual period of the fiscal year under review were ¥1,932,328 thousand (39.6% decrease compared with the end of the previous fiscal year), owing partly to a decrease in cash and deposits. Liabilities were ¥493,349 thousand (10.5% increase compared with the end of the previous fiscal year), owing partly to an increase in accounts payable - other. Net assets were ¥1,438,978 thousand (47.7% 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. Semi-annual Financial Statements and Primary Notes

(1) Semi-annual Balance Sheets

(Thousand yen)

As of December 31, 2024 As of June 30, 2025

Assets

Current assets

Short-term loans receivable from subsidiaries and associates

- 28,962

Total current assets 3,098,244 1,869,644

Non-current assets