Loss narrowed 35.3% but cash fell 63.5% as Iperion's runway tightens

Cash fell 63.5% from NZ$0.4m to NZ$0.2m, total equity collapsed 84.5% from NZ$0.3m to NZ$0.1m, and total assets ended at NZ$0.2m — below Annolyse's historical range, where the five-period mean is NZ$1.5m. That trajectory matters because the company continues to operate without commercial revenue.

The reported loss did narrow. PBT and NPAT both improved 35.3% to a NZ$0.3m loss from a NZ$0.5m loss prior. Operating cash outflows narrowed in parallel, from NZ$0.4m to NZ$0.3m. Revenue was effectively zero in FY26; the NZ$0.02m prior comparable was interest income on a financial asset rather than trading revenue, so the headline "revenue down" is denominator-driven and not a like-for-like deterioration.

At an operating cash burn of NZ$0.3m and a closing cash balance of NZ$0.2m, the existing balance sheet cannot fund another year of activity at this run-rate without further funding. Total liabilities also ticked up 22.6% to NZ$0.1m against a shrinking asset base, which means the equity cushion absorbed the full period loss.

The improvement is unprecedented-low against the company's own pattern. PBT and NPAT both grew 35.3%, which sits below Annolyse's historical baseline for this company (five-period mean 88.9%, range 45.3%–99.9%). Said differently, prior periods showed faster loss reduction; this year's improvement is the slowest in the available history, and it came from cost compression rather than from any revenue line lighting up.

Commercialisation remains the unresolved economic story. The prior-period release flagged a licence variation extending minimum performance targets — five Pathoglaze customers and SGD150,000 of top-line revenue by 30 of the relevant month — and FY26 produced none of that. Until sales commence, every period of operating spend is a direct draw on cash.

Interim context (HY26) showed a NZ$0.2m half-year loss and a NZ$0.2m half-year operating cash outflow, implying a second-half loss of roughly NZ$0.1m and a second-half cash outflow of roughly NZ$0.1m. The shape is therefore mildly H2-lighter on cash burn, but the directional read does not change: spend continues to outrun income.

Against the commentary carried over from the prior comparable — that fees to support cost of sales become payable only when sales activities commence — the absence of any FY26 revenue means the operating model has not yet been activated. The release does not support a view on when commercialisation begins or what scale it reaches.

FCF tracks NPAT closely (94.2%), confirming the loss is largely cash. There is no working-capital tailwind or balance-sheet assistance flattering the improvement.

The weaker quality angle is that none of the loss reduction comes from revenue. Without an operating top line, the only levers are cost compression and equity funding, and the equity base shrank 84.5% over the year. Capex was negligible (NZ$0.0m on intangibles), so the cash drain is operating, not investment-driven — which means future improvement requires either new sales under the Pathoglaze licence or a smaller cost base, not the unwind of a capital programme.

This briefing cannot assess the probability or timing of Pathoglaze commercialisation, the availability of further equity funding, or the licensor's posture on minimum performance targets.