Oncolys BioPharma : Non-consolidated Financial Results for the Three Months Ended March 31, 2026

May 8, 2026

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 Three Months Ended March 31, 2026 (January 1, 2026 to March 31, 2026)

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

      	Net sales	Operating profit	Ordinary profit	Profit
      Three months ended March 31, 2026 March 31, 2025	Million yen % 3 - - -	Million yen % (420) (46.4) (785) -	Million yen % (413) (49.0) (810) -	Million yen % (414) (49.0) (811) -

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      March 31, 2026	(14.16)	-
      March 31, 2025	(32.66)	-

   2. Financial Position

   	Total assets	Net assets	Equity ratio
   	Million yen	Million yen	%
   As of March 31, 2026	4,528	3,593	79.2
   As of December 31, 2025	4,555	3,999	87.6

   (Reference) Equity: As of March 31, 2026: ¥3,585 million

   As of December 31, 2025: ¥3,992 million

2. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended December 31, 2025 Fiscal year ending December 31, 2026	Yen - -	Yen 0.00	Yen -	Yen 0.00	Yen 0.00
   Fiscal year ending December 31, 2026 (Forecast)		0.00	-	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, 2026 (January 1, 2026 to December 31, 2026) 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): March 31, 2026: 29,302,700 shares

      December 31, 2025: 29,291,600 shares

   2. Total number of treasury shares at the end of the period: March 31, 2026: 17,702 shares

      December 31, 2025: 17,641 shares

   3. Average number of shares during the period:

Three months ended March 31, 2026: 29,277,391 shares

Three months ended March 31, 2025: 24,850,917 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 three months ended March 31, 2026, the Japanese economy faced uncertainty over the outlook for corporate activities, as crude oil prices spiked following the closure of the Strait of Hormuz caused by Iran's counter-attack in response to strikes by the U.S. and Israel. The global economy also remained unstable, with heightened uncertainty over economic activities, mainly in countries with limited oil reserves.

      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, thereby advancing activities with a view to the post-launch of OBP-301. In addition, the Company is progressively moving 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 three months ended March 31, 2026, the Company recorded net sales of ¥3,090 thousand (no net sales in the same period of the previous fiscal year), and operating loss was ¥420,720 thousand (operating loss of

      ¥785,202 thousand in the same period of the previous fiscal year). In addition, the Company recorded interest income of ¥3,044 thousand and foreign exchange gains of ¥9,443 thousand as non-operating income, as well as interest expenses of ¥2,986 thousand and share issuance costs of ¥2,158 thousand as non-operating expenses, resulting in ordinary loss of ¥413,363 thousand (ordinary loss of ¥810,789 thousand in the same period of the previous fiscal year). As a result, net loss was ¥414,482 thousand (net loss of ¥811,653 thousand in the same period of the previous fiscal year).

   2. Explanation of Financial Position

      Assets at the end of the first quarter of the fiscal year under review were ¥4,528,277 thousand (0.6% decrease compared with the end of the previous fiscal year), owing partly to a decrease in cash and deposits. Liabilities were ¥935,185 thousand (68.2% increase compared with the end of the previous fiscal year), owing partly to an increase in loans payable. Net assets were ¥3,593,091 thousand (10.2% decrease compared with the end of the previous fiscal year), owing partly to a decrease in retained earnings.

   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 distribution partnership agreement for OBP-301, achieving the development event of LINE-1 inhibitor OBP-601 by Transposon, and the company's IPO, M&A and other corporate action that generates milestone revenue payments. The product sales revenue from OBP-301, which we aim to launch in Japan in 2026, will also fluctuate greatly depending on factors such as pharmaceutical prices and market development. Furthermore, our financial results fluctuate depending on terms and conditions of international alliance agreements of OBP-301.

   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. In addition, since the Company manages its performance annually, the Company omits the description of its earnings forecast for the second quarter (cumulative).

2. Quarterly Financial Statements and Primary Notes

(1) Quarterly Balance Sheets

(Thousand yen) As of December 31, 2025 As of March 31, 2026

Assets

Current assets

Short-term loans receivable from subsidiaries and

associates

46,959 47,970

Other 10 10

Total current assets 4,494,353 4,473,037

Non-current assets

Property, plant and equipment