Announcement PDF Neuren Pharmaceuticals Limited Appendix 4D Half-year report 1. Company details Name of entity: ARBN: Reporting period: Previous period: Neuren Pharmaceuticals Limited 111 496 130 For the half-year ended 30 June 2025 For the half-year ended 30 June 2024 2. Results for announcement to the market 2025 $'000 2024 $'000 Change $'000 Change % Revenues from ordinary activities 39,723 32,106 7,617 24% Profit from ordinary activities after tax attributable to the owners of Neuren Pharmaceuticals Limited 15,031 8,016 7,015 88% Profit for the half-year attributable to the owners of Neuren Pharmaceuticals Limited 15,031 8,016 7,015 88% 2025 Cents Basic earnings per share Diluted earnings per share 2024 Cents 11.88 11.65 6.28 6.13 Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The profit after income tax for the half-year ended 30 June 2025 was A$15.0 million, compared with a net profit after tax of A$8.0 million for the half-year ended 30 June 2024. Royalty revenue from Acadia increased to A$28.3 million from A$24.3 million in the half-year ended 30 June 2024. For further commentary on the Company's results, please refer to the accompanying ASX release and the Directors’ report within the Interim Report. This information should be read in conjunction with the most recent Annual Report (for the financial year ended 31 December 2024). 3. Net tangible assets As at 30 Jun As at 31 Dec 2025 2024 Cents Cents Net tangible assets per ordinary security 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 247.87 273.52 Neuren Pharmaceuticals Limited Appendix 4D Half-year report 6. Dividends and other shareholder distributions Current period There were no dividends paid, recommended or declared during the current financial period. During the half-year ended 30 June 2025, Neuren completed on-market buy-backs totalling $39.6 million. Neuren purchased 3,273,098 ordinary shares on issue at the average price of $12.09. The share buy-back program concluded on 16 June 2025. Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities Not applicable. 9. Accounting standards The interim financial statements have been prepared in accordance with International Accounting Standard 34 and NZ IAS 34 Interim Financial Reporting. 10. Auditors review The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. 11. Attachments Details of attachments (if any): The Interim Report of Neuren Pharmaceuticals Limited for the half-year ended 30 June 2025 is attached. 12. Signed Signed ___________________________ Patrick Davies Non-Executive Chair Melbourne Date: 26 August 2025 Neuren Pharmaceuticals Limited ARBN 111 496 130 Consolidated Interim Financial Report for the Half-Year ended 30 June 2025 Neuren Pharmaceuticals Limited Contents 30 June 2025 Directors' report Directors' declaration Consolidated interim statement of profit or loss and other comprehensive income Consolidated interim statement of financial position Consolidated interim statement of changes in equity Consolidated interim statement of cash flows Notes to the consolidated interim financial statements Independent auditor's review report 1 2 5 6 7 8 9 10 17 Neuren Pharmaceuticals Limited Directors' report 30 June 2025 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Neuren Pharmaceuticals Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2025. Directors The following persons were directors of Neuren Pharmaceuticals Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Patrick Davies (Non-Executive Chair) Jonathan Pilcher (Chief Executive Officer/Managing Director) Dianne Angus (Non-Executive Director) Dr Jenny Harry (Non-Executive Director) Joe Basile (Non-Executive Director) Principal activities During the financial half-year the principal continuing activities of the consolidated entity consisted of: ● Development of pharmaceutical products for the treatment of neurodevelopmental disorders ● Royalty revenue from licence of intellectual property Review of operations Neuren Pharmaceuticals Limited (“Neuren” or the “Company”), and its subsidiaries (collectively the “Group”) is a biopharmaceutical company, incorporated in New Zealand and listed on the Australian Securities Exchange (ASX: NEU). Neuren is developing new drug therapies to treat multiple serious neurological disorders that emerge in early childhood. Trofinetide In April 2023, Neuren’s worldwide partner for trofinetide, Acadia Pharmaceuticals (NASDAQ: ACAD) launched DAYBUE™ (trofinetide) in the United States as the first approved treatment for Rett syndrome. DAYBUE™ net sales for the half-year to 30 June 2025 were US$180.7 million, delivering royalties of A$28.3 million to Neuren. The number of unique patients receiving a DAYBUE shipment continued to grow and in Q2 2025 reached a record high of 987, up from 954 in Q1 2025 and 920 in Q4 2024. The persistency rate remains steady above 50% after 12 months of treatment. 70% of active patients have now been on therapy for 12 months or longer. There is substantial potential for future growth in the US with two-thirds of the 5,500 to 5,800 diagnosed Rett patients yet to try DAYBUE. During the half-year, Acadia completed the planned expansion of its DAYBUE field force in the US by ~30% to accelerate future growth in the community outside the Rett syndrome centres of excellence. In Q2 2025, approximately three-quarters of new patient referrals came from the community. Acadia has provided guidance for full-year net sales in 2025 of US$380-405 million. Assuming this guidance is met and an exchange rate of 0.65, Neuren anticipates earning full-year royalties of A$62-67 million. In January 2025, Acadia submitted a Marketing Authorisation Application (MAA) to the European Medicines Agency (EMA) for trofinetide for the treatment of Rett syndrome in adults and pediatric patients two years of age and older. Acadia anticipates potential marketing authorisation in Q1 2026 and continues to build its European commercialisation team. If granted marketing authorisation, trofinetide will be the first and only approved therapy for Rett syndrome in the European Union. In the meantime, the first shipment of DAYBUE was made to a Rett syndrome patient in Germany in April 2025 under a managed access program. In Japan, trofinetide received Orphan Drug Designation and Acadia is on track to commence the planned clinical trial in Japan in Q3 2025. Acadia has also entered into distribution agreements to facilitate named patient supply in other regions including Latin America, Middle East and Asia Pacific. 2 Neuren Pharmaceuticals Limited Directors' report 30 June 2025 NNZ-2591 Neuren is developing a second drug NNZ-2591 for multiple serious neurodevelopmental disorders with different genetic origins that have no or limited approved treatment options. Recognising the urgent unmet need, programs have been granted “orphan drug” designation in the United States. Orphan drug designation provides incentives to encourage development of therapies for rare and serious diseases. In 2024, Neuren achieved positive top-line results from the Phase 2 clinical trials of NNZ-2591 in children with PhelanMcDermid syndrome (PMS), Pitt Hopkins syndrome (PTHS) and Angelman syndrome (AS). In April 2025, Neuren confirmed the primary endpoints for a single Phase 3 pivotal clinical trial of NNZ-2591 in PMS at a Type C Meeting with the US Food and Drug Administration (FDA).The co-primary endpoints in the double-blind placebo-controlled study of treatment for 13 weeks will be the change from baseline in the Receptive Communication sub-domain of the Vineland Adaptive Behavior Scales, Third Edition (VABS-3 Receptive-Raw Score) and the overall score in the Phelan-McDermid Syndrome Assessment of Change (PMSA-C, previously referred to as CGI-I in Neuren’s Phase 2 trial). Both measures were robustly positive with clinically meaningful improvement in Neuren’s Phase 2 open-label clinical trial. 16 out of 18 children showed improvement measured by the VABS-3 Receptive-Raw Score, with mean improvement of 7.5 from a mean baseline of 29.0 (Wilcoxon signed rank test p=0.0001) and 16 out of 18 children showed improvement from baseline measured by the PMSA-C with a mean score of 2.4 (Wilcoxon signed rank test p<0.0001). The endpoints pair the caregiver’s assessment of change in one important symptom area with the clinician’s assessment of change across multiple aspects of PMS. Communication is one of the most impactful health concerns in PMS reported by caregivers. Receptive communication, as measured by VABS-3 Receptive-Raw Score, is the ability to receive and understand non-verbal and verbal interactions which is a foundational skill for the development of learning, social interaction, and speech. Alignment with FDA was previously reached on the other key features of the Phase 3 program at an End of Phase 2 Meeting. Neuren recently announced initiation of the first US investigational site in the US for the trial, with other sites in the US at various stages of the initiation process. Neuren’s financial strength means that no additional funding is required to execute the program. Neuren also added two new indications, hypoxic-ischemic encephalopathy (HIE) and SYNGAP1-related disorder (SRD) into its neurodevelopmental disorders pipeline for NNZ-2591. HIE is a devastating type of brain injury caused when a baby’s brain does not receive enough oxygen or blood flow before or shortly after birth. Many thousands of babies and children experience HIE every year. It is one of the leading causes of neonatal death and neurodevelopmental disability worldwide. HIE can lead to a range of symptoms in surviving children, including developmental delays, cognitive impairment, cerebral palsy, and seizures. Some children develop serious long-term complications that can affect them well into adulthood. Currently, the only approved treatment for HIE is temporary hypothermia (cooling the head or whole body to lower the baby’s metabolic rate and give the brain some time to recover from the hypoxic event). Hypothermia provides a modest decrease in mortality and severe neurodevelopmental disability, however even with hypothermia, 40-45% of children who survive HIE have significant neurodevelopmental impairment at 2 years of age. Based on its therapeutic properties and data from a range of preclinical models, Neuren believes that NNZ-2591 can potentially provide a highly differentiated form of treatment continuing beyond acute treatment in the neonatal intensive care unit to target both the acute effects and chronic impairments resulting from HIE. SRD is caused by a variant on the SYNGAP1 gene located on Chromosome 6, which is responsible for producing the SYNGAP1 protein. The protein acts as a regulator in the synapses and insufficient production leads to impaired communication between neurons. This results in the many neurological issues seen in SYNGAP1 patients, including intellectual disability, low muscle tone, global development delay, epilepsy, sensory processing disorder, gross and fine motor skill delays, coordination disorder, speech delay, sleep and behavior disorder and autism spectrum disorder. In an in-vitro model of SRD in human iPSC-derived neurons, treatment with NNZ-2591 reversed the neuronal dysfunction caused by SYNGAP1 haploinsufficiency. 3 Neuren Pharmaceuticals Limited Directors' report 30 June 2025 Financial commentary The consolidated interim financial statements for the half-year are presented on pages 6 to 16. All amounts in the Financial Statements are shown in Australian dollars unless otherwise stated. The Group’s net profit after income tax for the half-year ended 30 June 2025 was A$15.0 million, compared with a net profit after tax of A$8.0 million for the half-year ended 30 June 2024. Royalty revenue of A$28.3 million was earned under the license agreement with Acadia (30 June 2024: A$24.3 million). Other income includes interest income of A$6.3 million (30 June 2024: A$5.8 million) and a foreign currency gain of A$5.2 million mainly due to the translation of cash and short-term investments held in Australian dollars to the US dollars functional currency. Research and development costs decreased by A$3.0 million to A$14.9 million, with higher expenditure for the half-year ended 30 June 2024 due to completion of the NNZ-2591 Phase 2 clinical trials as well as foundational work to prepare for Phase 3 development of NNZ-2591. Costs for the half-year ended 30 June 2025 include start-up costs for the Phase 3 trial of NNZ2591 in PMS. Corporate and administrative costs of A$2.5 million remained consistent with the prior period. A loss of A$2.6 million on the fair value of outstanding forward contracts to sell Australian dollars and buy US dollars was recognised at 30 June 2025 (30 June 2024: A$1.9 million gain). Income tax expense recognised for the half-year ended 30 June 2025 was A$4.7 million (30 June 2024: A$3.8 million). The basic earnings per share for the half-year to 30 June 2025 was A$0.1188 (half-year to 30 June 2024: earnings per share A$0.0628) based on a weighted average number of shares outstanding of approximately 126.6 million (half-year to 30 June 2024: 127.7 million). Total cash and short-term investments at 30 June 2025 were A$299.5 million (31 December 2024: A$222.2 million). Net cash generated from operating activities was A$128.3 million, compared with net cash used of A$20.5 million for half-year to 30 June 2024. This is mainly due to receipts from license agreements, with receipt of the first sales milestone and share of priority review voucher sale proceeds, both of which were earned in Q4 2024 and received in Q1 2025. The receipts from license agreements for the half-year to 30 June 2024 included only the receipt of quarterly royalties. Net cash used in financing activities was A$38.2 million, comprising A$39.6 million of payments for the share buy-back, offset by A$1.4 million of proceeds received on conversion of loan funded shares. 4 Neuren Pharmaceuticals Limited Directors' declaration 30 June 2025 The Directors of Neuren Pharmaceuticals Limited ("Neuren") declare that: The accompanying consolidated interim financial statements of Neuren and its subsidiaries for the half-year ended 30 June 2025 and the notes to those consolidated interim financial statements: · comply with International Accounting Standard 34 and NZ IAS 34 Interim Financial Reporting; and · present fairly, in all material respects, the financial position as at 30 June 2025 and of the performance for the half-year ended on that date of Neuren and its subsidiaries. In the Directors’ opinion there are reasonable grounds to believe that Neuren will be able to pay its debts as and when they become due and payable. This report is signed and the declaration is made in accordance with a resolution of the Board of Directors dated 26 August 2025. On behalf of the directors ___________________________ Patrick Davies Non-Executive Chair ___________________________ Joe Basile Non-Executive Director 26 August 2025 Melbourne 5 Neuren Pharmaceuticals Limited Consolidated interim statement of profit or loss and other comprehensive income For the half-year ended 30 June 2025 Half year ended Jun 2025 $'000 Half year ended Jun 2024 $'000 28,277 24,327 Finance income Net foreign currency gains Gain on financial derivatives measured at fair value through profit and loss Total income 6,293 5,153 39,723 5,836 23 1,920 32,106 Expenses Research and development costs Corporate and administrative costs Loss on financial derivatives measured at fair value through profit and loss Total expenses (14,897) (2,483) (2,622) (20,002) (17,889) (2,374) (20,263) Profit before income tax expense 19,721 11,843 (4,690) (3,827) 15,031 8,016 Items that may be reclassified subsequently to profit or loss Foreign currency translation (17,969) 3,513 Other comprehensive (loss)/income for the half-year, net of tax (17,969) 3,513 Total comprehensive (loss)/income for the half-year attributable to the owners of Neuren Pharmaceuticals Limited (2,938) 11,529 Note Revenue from contracts with customers 6 Income tax expense 7 Profit after income tax expense for the half-year attributable to the owners of Neuren Pharmaceuticals Limited Other comprehensive (loss)/income Cents Basic earnings per share Diluted earnings per share 3 3 11.88 11.65 Cents 6.28 6.13 The above consolidated interim statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 6 Neuren Pharmaceuticals Limited Consolidated interim statement of financial position As at 30 June 2025 Note As at 30 Jun As at 31 Dec 2025 2024 $'000 $'000 Assets Current assets Cash and cash equivalents Short term investments Trade and other receivables Contract assets Derivative financial instruments Income tax receivable Total current assets 5,906 293,631 6,518 14,004 187 320,246 3,153 219,089 157,967 17,756 1,362 399,327 Non-current assets Plant and equipment Deferred tax asset Total non-current assets 25 10,981 11,006 31 10,348 10,379 Total assets 331,252 409,706 6,663 1,260 7,923 2,895 42,866 45,761 55 55 41 41 7,978 45,802 323,274 363,904 127,591 4,682 (4,461) 195,462 165,270 4,695 13,508 180,431 323,274 363,904 Liabilities Current liabilities Trade and other payables Derivative financial instruments Income tax payable Total current liabilities Non-current liabilities Employee benefits Total non-current liabilities Total liabilities Net assets Equity Share capital Share option reserve Currency translation reserve Retained earnings 8 Total equity The above consolidated interim statement of financial position should be read in conjunction with the accompanying notes 7 Neuren Pharmaceuticals Limited Consolidated interim statement of changes in equity For the half-year ended 30 June 2025 Share option reserve $'000 Currency translation reserve $'000 173,127 4,382 (10,690) 38,388 205,207 Profit after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - - - 8,016 8,016 - - 3,513 - 3,513 Total comprehensive income for the half-year - - 3,513 8,016 11,529 277 - 765 - - 277 765 918 1,383 (918) - - - 1,383 (9) - - - (9) 175,696 4,229 (7,177) 46,404 219,152 Share option reserve $'000 Currency translation reserve $'000 165,270 4,695 13,508 180,431 363,904 - - - 15,031 15,031 - - (17,969) - (17,969) - - (17,969) 15,031 (2,938) (39,573) 1,380 - 512 - - (39,573) 1,380 512 525 (525) - - - (11) - - - (11) 127,591 4,682 (4,461) 195,462 323,274 Share capital $'000 Balance at 1 January 2024 Transactions with owners in their capacity as owners: Loan funded shares converted Share-based payments Transfer on conversion of loan funded shares and options Share options exercised Issue costs on conversion of loan funded shares Balance at 30 June 2024 Share capital $'000 Balance at 1 January 2025 Profit after income tax expense for the half-year Other comprehensive loss for the half-year, net of tax Total comprehensive (loss)/income for the halfyear Transactions with owners in their capacity as owners: On-market share buy-back Loan funded shares converted Share based payments Transfer on conversion of loan funded shares and options Issue costs on conversion of loan funded shares Balance at 30 June 2025 Retained earnings $'000 Total equity $'000 Retained earnings $'000 Total equity $'000 The above consolidated interim statement of changes in equity should be read in conjunction with the accompanying notes 8 Neuren Pharmaceuticals Limited Consolidated interim statement of cash flows For the half-year ended 30 June 2025 Note Cash flows from operating activities Receipts from license agreement Income tax paid Withholding tax paid Interest received GST refunded Payments for employees and directors Payments to other suppliers Half year ended Jun 2025 $'000 Half year ended Jun 2024 $'000 191,340 (46,973) (5,636) 5,800 135 (1,988) (14,372) 24,429 (34,163) (1,222) 5,929 221 (2,193) (13,537) 128,306 (20,536) Cash flows from investing activities Purchase of plant and equipment Less cash transferred (to)/from short-term investments (i) (5) (85,568) (3) 843 Net cash (used in)/from investing activities (85,573) 840 Cash flows from financing activities Proceeds from issue of shares Payment of share issue expenses Payments for share buy-back 1,380 (15) (39,573) 1,660 (9) - Net cash (used in)/from financing activities (38,208) 1,651 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents 4,525 3,153 (1,772) (18,045) 17,094 3,522 Cash and cash equivalents at the end of the financial half-year 5,906 2,571 Net cash from/(used in) operating activities 4 (i) The Company has reclassified cash held in short-term deposits from Cash and Cash Equivalents to Short-term Investments. The above consolidated interim statement of cash flows should be read in conjunction with the accompanying notes 9 Neuren Pharmaceuticals Limited Notes to the consolidated interim financial statements 30 June 2025 Note 1. Nature of the business Neuren Pharmaceuticals Limited (“Neuren” or the “Company”), and its subsidiaries (collectively the “Group”) is a publicly listed biopharmaceutical company developing drugs for neurological disorders. The Company is a limited liability company incorporated in New Zealand. The address of its registered office in New Zealand is at the offices of Lowndes Jordan, Level 15 HSBC Tower, 188 Quay Street, Auckland 1141. Neuren operates in Australia and its ordinary shares are listed on the Australian Securities Exchange (ASX code: NEU). These consolidated interim financial statements were approved for issue by the Board of Directors on 26 August 2025. Note 2. Material accounting policy information Basis of preparation These condensed consolidated interim financial statements are for the half-year ended 30 June 2025 and have been prepared in accordance with, and comply with International Accounting Standard 34 and NZ IAS 34 Interim Financial Reporting. The Group is a Tier 1 for-profit entity under the External Reporting Board Accounting Standards Framework in New Zealand. New or amended Accounting Standards and Interpretations adopted There have been no significant changes in accounting policies during the current period. The accounting policies that materially affect the measurement of the Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income, Consolidated Interim Statement of Financial Position, Consolidated Interim Statement of Changes in Equity and the Consolidated Interim Statement of Cash Flows have been applied on a basis consistent with those used in the audited financial statements for the year ended 31 December 2024 and the unaudited interim financial statements for the half-year ended 30 June 2024. There is no cyclical seasonality of interim operations. The presentation currency of the Group is Australian dollars and the functional currency is US dollars. These interim financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, this interim report is to be read in conjunction with the annual report for the year ended 31 December 2024. Comparatives Where deemed necessary, the comparatives have been reclassified to achieve consistency with the current financial halfyear. 10 Neuren Pharmaceuticals Limited Notes to the consolidated interim financial statements 30 June 2025 Note 3. Earnings per share Basic earnings per share is calculated by dividing the profit for the period attributable to the equity holders of the company by the weighted average number of ordinary shares on issue during the period excluding shares held as treasury stock. Diluted earnings per share is calculated by dividing the profit attributable to ordinary equity holders of the company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. Half year ended Jun 2025 $'000 Half year ended Jun 2024 $'000 15,031 8,016 Profit after income tax attributable to the owners of Neuren Pharmaceuticals Limited Number Number Weighted average number of ordinary shares used in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options over ordinary shares 126,576,586 127,674,028 2,414,558 3,145,014 Weighted average number of ordinary shares used in calculating diluted earnings per share 128,991,144 130,819,042 Cents Cents Basic earnings per share Diluted earnings per share 11.88 11.65 6.28 6.13 Half year ended Jun 2025 $'000 Half year ended Jun 2024 $'000 Profit after income tax expense for the half-year 15,031 8,016 Adjustments for: Depreciation of property, plant and equipment Share based payments expense Foreign exchange (gain)/loss Unrealised loss/(gain) on derivative financial instruments 11 512 (5,153) 2,622 11 765 20 (1,920) Change in working capital: Decrease in trade and other receivables Decrease in contract assets (Decrease) in current and deferred taxes Increase in trade and other payables 151,449 3,752 (43,686) 3,768 3,749 (32,235) 1,058 Net cash from/(used in) operating activities 128,306 (20,536) Note 4. Reconciliation of profit after income tax to net cash from/(used in) operating activities 11 Neuren Pharmaceuticals Limited Notes to the consolidated interim financial statements 30 June 2025 Note 5. Operating segments Identification of reportable operating segments The segment reporting reflects the way information is reported internally to the chief operating decision maker. The Board of the Group has been identified as the chief operating decision maker. The Board assesses the financial performance and position of the group and makes strategic decisions. The Group has two reportable operating segments, commercial products and research and development. Reportable segment Principal activities Commercial products Research & development Milestone and royalty revenue from licence of intellectual property. Development of pharmaceutical products for the treatment of neurodevelopmental disorders. Commercial products Jun-25 Jun-24 $'000 $'000 Revenue Research and development costs Finance income Net foreign currency gain (Loss)/gain on financial derivatives Other expenses Profit before income tax Income tax expense Profit after income tax Other comprehensive income Total comprehensive income Research & development Jun-25 Jun-24 $'000 $'000 Corporate Jun-25 Jun-24 $'000 $'000 Total Jun-25 Jun-24 $'000 $'000 28,277 24,327 - - - - 28,277 24,327 - - (14,897) - (17,889) - 6,293 5,836 (14,897) 6,293 (17,889) 5,836 - - - - 5,153 23 5,153 23 - - - - (2,622) (2,483) 1,920 (2,374) (2,622) (2,483) 1,920 (2,374) 28,277 24,327 (14,897) (17,889) 6,341 5,405 19,721 11,843 - - - - (4,690) (3,827) (4,690) (3,827) 28,277 24,327 (14,897) (17,889) 1,651 1,578 15,031 8,016 - - - - (17,969) 3,513 (17,969) 3,513 28,277 24,327 (14,897) (17,889) (16,318) 5,091 (2,938) 11,529 All revenue from licences of intellectual property is from Acadia Pharmaceuticals Inc. (Acadia) and is received from the United States. Assets and liabilities are not allocated to segments and are therefore not reported. Note 6. Revenue from contracts with customers Disaggregation of revenue from contracts with customers The Group derives revenue from the sale of goods and services at a point in time under the following major business activities: Revenue from contracts with customers Licenses of intellectual property - royalty income 12 Half year ended Jun 2025 $'000 Half year ended Jun 2024 $'000 28,277 24,327 Neuren Pharmaceuticals Limited Notes to the consolidated interim financial statements 30 June 2025 Note 6. Revenue from contracts with customers (continued) All revenue from licences of intellectual property is received from the United States. Neuren is eligible to receive quarterly royalty income, calculated as a percentage of net sales of DAYBUE in North America and is recognised in the period the Acadia makes the sales of DAYBUE. The royalty rate for ≤US$250 million of annual net sales is 10%. The royalty rate then increases to 12% for annual net sales greater than US$250 million but less than or equal to US$500 million. Neuren is also eligible to receive future milestone payments of up to US$300 million on achievement of a series of three thresholds of total annual net sales. Note 7. Income tax Income tax expense is recognised based on management’s estimate of the weighted average effective annual income tax rate expected for the full financial year. The estimated average annual tax rate used for the half-year ended 30 June 2025 is 30%. Half year ended Jun 2025 $'000 Half year ended Jun 2024 $'000 Income tax expense Current tax Deferred tax - origination and reversal of temporary differences Under provision in prior