Imaging Biometrics Limited

("IBAI" or the "Company")

Company Update

IB Nimble Webinar - 27 February 2026

Imaging Biometrics Limited ('IBAI') comprises two subsidiary businesses, Imaging Biometrics LLC and Kirkstall Limited. In 2018, Imaging Biometrics, LLC ('IB') was acquired by Flying Brands Limited - now Imaging Biometrics Limited - and Kirkstall became part of the group in October last year.

In the subsequent eight years IB advanced several innovative technologies -including StoneChecker, LSN, and IB Zero G. Though substantial technical and developmental progress has been made over these years, it has not resulted in a concomitant commercial and revenue reward for shareholders. After considerable analysis we believe that this has been the consequence of pursuing too many projects with limited resources. One further consequence has been that we have invested less in the core legacy products that, in retrospect, we should have.

With the current market capitalisation of approximately £1.2m, our focus will be on how to address and correct the wide gap between market perception and our actual and anticipated operational performance. As a first step we hereby provide a comprehensive and concise update on our live projects:

The last major release of IB Clinic, announced last fall, has seen initial adoption. Several existing clinical sites have upgraded to FTB Express processing, indicating interest in faster, more automated tumor-response metrics. Longitudinal reporting, identified as a useful quality enhancement by the neurosurgical community, will be added to improve the utility of IB Neuro and FTB maps. These updates further substantiate IB Clinic as the cornerstone of the product portfolio and position it for broader clinical adoption.

The next version of IB Nimble is nearing completion and includes integrated DICOM viewing, a feature requested by customers. This allows imaging data to be viewed directly within IB Nimble, facilitating the process from review to interpretation to clinical decision-making. To support this release and inform users, we will host a webinar on February 27, where the team will demonstrate the new capabilities and interact with customers.

QSMetric, the platform for producing FDA-cleared, patented quantitative susceptibility maps (QSM), has attracted initial interest. The system accepts data directly from MRI scanners and generates QSM maps using a proprietary algorithm. It is now being prepared for distribution to trial sites.

IB Zero G is a patented piece of intellectual property with potential long-term applications. However, advancing this technology requires significant resources and development time that affect focus on our primary products. In line with our strategy, IB Zero G will remain on hold until the Company's resources allow progress without impacting core business priorities.

IB played a central role in advancing the gallium maltolate (GaM) programme through the successful completion of its Phase 1 clinical trial; the results of which have now been submitted for publication. As previously communicated, the scope and scale of a Phase 2 trial would require resources beyond what IB can provide independently. While we are proud of the significant milestones achieved-including FDA Fast Track designation, two Rare Pediatric Disease designations, and two Orphan Drug Designations-the long‑term development pathway for GaM would divert focus and resources from the continued year‑over‑year growth of IB's core portfolio. For these reasons, we will not focus on advancing the programme at this time. We do have commercialisation rights to the Phase 1 trial data and will remain alert for potential commercial opportunities.

Kirkstall Limited: Driven by the growing adoption of the improved QV1200 system and the expansion of our international distribution network, sales were £123k in 2025 compared with £67k in 2024, an increase of 84%.

In 2025 distributors were contracted in three strategically important markets:

China, South Korea and the United States, with the appointment of MB Research Labs ("MBR").  With over 50 years of expertise in toxicology, MBR was one of the first CROs to offer in vitro and alternative testing methodologies and brings strong credibility and new market access.

Relevance of UK and US government policies

The UK adheres to the "3Rs" (replace, reduce, refine) principle, overseen by the NC3Rs. In November 2025, a strategy was launched to phase out animal testing, with £75 million funding for alternatives including organ-on-a-chip systems-microfluidic devices mimicking human organs using real cells to test drug effects without animals. Key timelines: end skin/eye irritation testing by 2026, botulinum toxin potency testing on mice by 2027, and reduce dog/primate use in pharmacokinetic studies by at least 35% by 2030. Organ-on-a-chip is highlighted for human-relevant results in areas like vaccine development and toxicity assessment.

US agencies like FDA, EPA, and NIH promote "new approach methodologies" (NAMs). The FDA Modernization Act 2.0 (2022) allowed alternatives to animal testing for drugs, enabling sponsors to use methods such as cell-based assays and computer models rather than requiring animal studies. In April 2025, FDA announced phasing out animal tests initially for monoclonal antibodies, prioritising organoids and computational models to assess drug safety. EPA targets eliminating mammalian testing by 2035. NIH funds human-based tech, establishing a centre for organoids in 2025 to reduce animal reliance. Organ-on-a-chip and organoid technologies are key for predicting human responses more accurately than animal models.

Customer Highlights

Gent University (Belgium): Published research from the Faculty of Medicine and Health Sciences has demonstrated that models of three organs can be connected using our system to explore gut-brain barrier communication. Notably, Gent University evaluated two competing organ-on-a-chip systems before selecting QV1200 for their research programme.

Blood-Brain Barrier Research:

Professor Cave and his team at Nottingham Trent University are developing next generation blood-brain barrier (BBB) organ on a chip system by combining their advanced nanofiber tissue scaffold inserts with Kirkstall's Quasi Vivo® platform to recreate realistic blood flow and neurovascular interactions. By growing the three key BBB cell types (endothelial cells, pericytes and astrocytes) inside the QV1200 system, which continuously circulates nutrients like real blood, the team has shown that the cells form stronger, intercellular connections and behave much more like they do in the human body. Importantly, the new scaffolds allow the cells to grow into their natural three-dimensional tissue structures, unlike conventional two-dimensional cell culture models where cells sit on flat plastic membranes without flow, limiting their physiological behavior.  The QV1200 system's flowing, dynamic environment helps the BBB develop faster and far more effectively than older, static methods that lack real world physiological conditions. As a result, the platform offers a powerful, lifelike system for high throughput testing of new neurological treatments, enabling more reliable predictions of drug delivery and neuroprotective effects.

Professor Cave commented, "Our partnership with Kirkstall and their Quasi Vivo® technology is enabling us to build BBB models that are closer to human physiology than ever before. By combining dynamic flow with our nanofiber scaffolds, we are creating a three-dimensional tissue platform that will transform how new neurological therapies are discovered and evaluated."

Trevor Brown CEO of IBAI commented. "We recognise and share the frustration and disappointment experienced by shareholders in recent years and are determined to find a new modus operandi for the future. In the current year we are projecting a small profit and importantly, expect to have sufficient working capital without the need to approach shareholders for new funds before this year end and hopefully beyond."

The Directors of the Company accept responsibility for the contents of this announcement.

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