Announcement PDF ION Video Limited ABN 84 149 796 332 Appendix 4D Half-Year Report 31 December 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 1 of 28 Reporting period Report for the half-year ended 31 December 2025. Previous corresponding period is the half-year ended 31 December 2024. Results for announcement to the market Increase/(decrease) over previous corresponding period $ $ % Revenue from ordinary activities 290,321 (124,590) (30%) Loss from ordinary activities after tax attributable to members (2,739,564) (386,712) 16.4% Net loss for the period attributable to members (2,739,564) (386,712) 16.4% Dividends No dividends were paid or declared during the financial period and it is not proposed to pay dividends. No dividends have previously been declared or paid in prior financial periods and there are no dividend reinvestment plans in place. Explanation of results Results for the 6 months to December 2025 The Directors are pleased to present the first set of accounts since the Reset and Relaunch commenced. All parties have worked tirelessly to restructure the Company and its balance sheet, and to realign the business back towards its core intellectual property. For the first time since December 2023, the Company is pleased to report a Net Positive Asset position $1,321,242. Total liabilities during the period were reduced from $2,811,410 to $561,802 as at 31st December 2025. The net capital raised during the period of $4,785,709 consisting of both equity and convertible notes were directed towards reducing debts and funding existing operations, whilst the strategic reset was undertaken. ION Video Limited (ASX: IOV) ACN 149 796 332 Page 2 of 28 The Company has reduced its overall cost base by exiting uneconomic clients, rationalising engineering resources, and implementing further cost controls for the business. This has resulted in the business reducing its operating cash burn on a go forward basis to $180,000 per month, as previously disclosed to the market. Cash and receivables as at 31st December 2025 totalled $1,883,044, this provides the Company with adequate cash resources to execute its strategy until at least Q2 2027. Further information and brief explanation of the above figures is contained in the half year consolidated financial report, which has been subject to independent review and which is lodged with this Appendix 4D. Net tangible asset backing Current period Previous corresponding period Net tangible assets per ordinary security 0.01 cents (0.02 cents) Signed: Brent Jones EXECUTIVE DIRECTOR & CHAIRMAN 27 February 2026 Melbourne Half-Year Report 31 December 2025 ION Video Limited ABN 84 149 796 332 ASX CODE: IOV ION Video Limited (ASX: IOV) ACN 149 796 332 Page 4 of 28 Corporate Directory OFFICERS Brent Jones Non-Executive Chairman appointed 16 June 2025 Andrew Demetriou Non-Executive Director appointed 16 June 2025 Anthony Baker CEO appointed 12 November 2025 and Executive Director appointed 4 February 2026 Finbar O’Hanlon Executive Director appointed 4 February 2026 Giuseppe Rinarelli CFO, Executive Director appointed 6 October 2025 resigned 4 February 2026 and Company Secretary resigned 1 December 2025 Sophie Karzis Company Secretary appointed 1 December 2025 Ben Taverner CEO appointed 1 February 2025 resigned 12 November 2025 Gerard Bongiorno Non-Executive Chairman resigned 6 October 2025 Barry McNeill Non-Executive Director resigned 6 August 2025 John Wallace Non-Executive Director resigned 7 July 2025 REGISTERED OFFICE Level 2, 161 Collins Street Melbourne VIC 3000 PRINCIPAL PLACE OF BUSINESS Level 2, 161 Collins Street Melbourne VIC 3000 Telephone: (03) 8680 2317 Email: investor.relations@ion.video AUDITORS William Buck 20/181 William Street Melbourne VIC 3000 SHARE REGISTRY Automic Level 5, 126 Phillip Street Sydney NSW 2000 Telephone: (02) 9689 5414 WEBSITE www.ion.video ASX CODE IOV ION Video Limited (ASX: IOV) ACN 149 796 332 Page 5 of 28 Directors’ Report The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of ION Video Limited (formerly known as Linius Technologies Ltd and referred to hereafter as the 'Company' or 'parent entity' or ‘ION Video) and the entities it controlled at the end of, or during, the half-year ended 31 December 2025. Directors The following persons were directors of ION Video Limited during the reporting period and to the date of this report, unless otherwise stated: Brent Jones appointed 16 June 2025 Andrew Demetriou appointed 16 June 2025 Anthony Baker appointed 4 February 2026 Finbar O’Hanlon appointed 4 February 2026 Giuseppe Rinarelli appointed 6 October 2025 and resigned 4 February 2026 Gerard Bongiorno resigned 6 October 2025 Barry McNeill resigned 6 August 2025 John Wallace resigned 7 July 2025 Principal activities The principal activities of the Group were the repositioning and strategic reset of the Company’s business to focus on its patented virtual video infrastructure technology as enabling infrastructure for artificial intelligence systems. The Company’s patents describe a fundamentally different architecture for how video exists inside intelligent systems, allowing AI to access and compose video as programmable data rather than static files. Review of operations During the period, the Company completed a detailed review of the entire patent portfolio, technology team, customers and the current business plans. This resulted in a fundamental repositioning from application-focused software development to a pure enabling infrastructure and intellectual property business. The reporting period saw a strategic reset of the business involving: • Realignment of the technology platform with the core patent claims • Exit from legacy bespoke software contracts not aligned with the infrastructure positioning • Restructuring of the engineering team, now entirely Melbourne-based, enabling improved R&D tax treatment • Repositioning of the Company’s market narrative and commercial approach ION Video Limited (ASX: IOV) ACN 149 796 332 Page 6 of 28 TECHNOLOGY DEVELOPMENT During the period, the engineering team completed significant work to isolate and harden the core virtual video infrastructure, removing legacy application layers and preparing the platform for independent technical validation. This work culminated in a public technology showcase in February 2026 demonstrating prompt-to-virtual-video capabilities and AI-driven video assembly. The Melbourne-based engineering team focused on documentation, API specification, and preparing the enabling infrastructure for integration discussions with validation partners and potential commercial counterparties. CAPITAL MANAGEMENT Significant progress was achieved in reducing the Company’s monthly cash consumption to approximately $180,000 through exit from uneconomic contracts, workforce rationalisation, and tight cost controls. Based on current cash reserves and operating expenditure, the Company maintains a cash runway to at least Q2 2027. CORPORATE GOVERNANCE The Board was strengthened during and subsequent to the reporting period with the appointment of Anthony Baker as Chief Executive Officer and Executive Director and Finbar O’Hanlon (inventor of the Company’s foundational patents) as Executive Director, ensuring alignment between strategic direction, technology development, and intellectual property positioning. Capital Raising Activities During the period ION Video raised an aggregate of $1,888,291, net of transaction costs, through issues of fully paid ordinary shares and $3,000,000 through the issues of convertible notes, to professional and sophisticated investors. Proceeds from these issues are funding ION’s intellectual property development, marketing to increase client awareness of technology capabilities and working capital. Significant changes in the state of affairs The principal activities of the Group were fundamental repositioned from an application-focused software development business to a pure enabling infrastructure and intellectual property business. Other than the above there were no significant changes in the state of affairs of the Group during the financial period. Dividends No dividends were paid or declared during the financial period. ION Video Limited (ASX: IOV) ACN 149 796 332 Page 7 of 28 Matters subsequent to the end of the financial period On 29 January 2026, the Company completed the consolidation of its issued share capital on the basis that every hundred (100) existing ordinary shares were consolidated into one (1) Share (with a corresponding consolidation of all other securities on issue), as approved at the general meeting of the Company held on 16 January 2026. On 4 February 2026, the Company appointed CEO, Anthony Baker, and Founder and Head of Innovation, Finbar O’Hanlon, as directors of the Board. There are no other matters or circumstances has arisen since 31 December 2025 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Auditor's independence declaration A copy of the auditor's independence declaration, which forms part of this Directors’ Report, is set out on page 27. This report is made in accordance with a resolution of directors. On behalf of the directors Brent Jones CHAIRMAN 27 February 2026 Melbourne ION Video Limited (ASX: IOV) ACN 149 796 332 Page 8 of 28 Contents Consolidated statement of profit or loss and other comprehensive income 9 Consolidated statement of financial position 10 Consolidated statement of changes in equity 11 Consolidated statement of cash flows 12 Notes to the financial statements 13 Directors' declaration 24 Independent auditor's review report to the members of ION Video Limited 25 Auditor's Independence Declaration 27 General information The financial statements cover ION Video Limited as a Group consisting of ION Video Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is ION Video Limited's functional and presentation currency. ION Video Limited is an ASX-listed public company limited by shares. Its registered office and principal place of business are: REGISTERED OFFICE Level 2, 161 Collins Street Melbourne VIC 3000 PRINCIPAL PLACE OF BUSINESS Level 2, 161 Collins Street Melbourne VIC 3000 A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 February 2026. ION Video Limited (ASX: IOV) ACN 149 796 332 Page 9 of 28 Consolidated Note December 2025 December 2024 $ $ Revenue Revenue 4 290,321 414,911 Other Income 4 276 857 Expenses Share-based payment expense 7 (1,513,302) (257,896) Employee expenses (484,375) (403,106) Employee software development expenses (426,752) (350,582) Software development expenses (382,976) (631,668) Compliance expenses (146,604) (143,427) Director remuneration expenses (excluding share-based payments) (107,500) (124,272) Other expenses (91,213) (114,624) Travel and accommodation expenses (88,473) (24,046) Patent expenses (51,195) (36,008) Finance expenses (6,899) (95,390) Amortisation expenses - (270,000) Consultant expenses 269,128 (317,601) Loss before income tax (2,739,564) (2,352,852) Income tax expense - - Loss after income tax expense for the half year attributable to owners of the parent (2,739,564) (2,352,852) Other comprehensive income for the half year, net of tax - - Total comprehensive loss for the half-year attributable to owners of the parent (2,739,564) (2,352,852) Loss per share for loss attributable to the owners of the parent Cents Cents Basic and diluted loss per share (0.04) (0.04) Weighted average number of shares used in determining basic loss per share 7,283,848,030 5,812,914,491 The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes Consolidated statement of profit or loss and other comprehensive income FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 10 of 28 The above consolidated statement of financial position should be read in conjunction with the accompanying notes Consolidated Note December 2025 June 2025 $ $ Assets Current assets Cash and cash equivalents 892,645 227,410 Trade and other receivables 5 990,399 345,795 Total current assets 1,883,044 573,205 Non-current assets Total non-current assets - - Total assets 1,883,044 573,205 Liabilities Current liabilities Trade and other payables 481,431 2,214,444 Contract liabilities 1,967 96,936 Employee provisions 61,014 70,651 Financial liability - 350,000 Total current liabilities 544,412 2,732,031 Non-current liabilities Trade and other payables - 64,549 Employee provisions 17,390 14,830 Total non-current liabilities 17,390 79,379 Total liabilities 561,802 2,811,410 Net assets / (liabilities) 1,321,242 (2,238,205) Equity Issued capital 6 62,289,231 59,428,522 Reserves 7 11,617,859 8,179,557 Accumulated losses (72,585,848) (69,846,284) Total Equity / (Deficiency in equity) 1,321,242 (2,238,205) Consolidated statement of financial position FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 11 of 28 Issued capital Equity reserve on Convertible Notes Equity settled benefits reserve Translation Reserves Accumulated losses Total Deficiency in equity Consolidated $ $ $ $ $ $ Balance at 1 July 2024 58,504,539 - 6,131,681 - (64,839,921) (203,701) Loss for the half year - - - - (2,352,852) (2,352,852) Total comprehensive loss for the half-year - - - - (2,352,852) (2,352,852) Transactions with owners in their capacity as owners: Shares issued (net of capital raising costs) 923,983 - - - - 923,983 Issue of convertible notes - 601,308 - - - 601,308 Share-based payments - - 284,846 - - 284,846 Total transactions with owners of the Company 923,983 601,308 284,846 - - 1,810,137 Balance at 31 December 2024 59,428,522 601,308 6,416,527 - (67,192,773) (746,416) Balance at 1 July 2025 59,428,522 1,775,000 6,416,527 (11,970) (69,846,284) (2,238,205) Loss for the half year - - - - (2,739,564) (2,739,564) Total comprehensive loss for the half-year - - - - (2,739,564) (2,739,564) Transactions with owners in their capacity as owners: Shares issued (net of capital raising costs) Refer to note 6 2,860,709 (1,075,000) - - - 1,785,709 Issue of convertible notes - 3,000,000 - - - 3,000,000 Share-based payments - - 1,513,302 - - 1,513,302 Total transactions with owners of the Company 2,860,709 1,925,000 1,513,302 - - 6,299,011 Balance at 31 December 2025 62,289,231 3,700,000 7,929,829 (11,970) (72,585,848) 1,321,242 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes Consolidated statement of changes in equity FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 12 of 28 Consolidated Note December 2025 December 2024 $ $ Cash flows from operating activities Receipts from customers 255,153 299,161 Receipts from GST refundable 113,549 72,493 Payments to suppliers (3,078,803) (1,840,646) Interest received 276 857 Interest paid (6,899) (16,752) Net cash used in operating activities (2,716,724) (1,484,887) Cash flows from investing activities Net cash used in investing activities - - Cash flows from financing activities Proceeds from issue of shares 6 1,487,000 430,000 Proceeds from issue of convertible notes 7 1,946,250 1,075,000 Capital raising costs paid (51,291) (9,067) Insurance premium funding payments - (89,336) Net cash from financing activities 3,381,959 1,406,597 Net decrease in cash and cash equivalents 665,235 (78,290) Cash and cash equivalents at the beginning of the half year 227,410 201,011 Cash and cash equivalents at the end of the half year 892,645 122,721 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes Consolidated statement of cash flows FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 13 of 28 NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY ION Video Limited (the “Company”) is a company domiciled in Australia. These condensed consolidated interim financial statements (“half-year financial statements”) as at and for the six months ended 31 December 2025 comprise the Company and its subsidiaries (together referred to as the “Group”). The Group is a for-profit entity primarily involved in technology, including research and development of technology products, software development and the commercialisation and licencing of computer software. BASIS OF PREPARATION These general purpose financial statements have been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001, and IAS 34 Interim Financial Reporting. They do not include all of the information required for a complete set of annual financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual consolidated financial statements as at and for the year ended 30 June 2025. These interim financial statements were authorised for issue by the Company’s Board of Directors on 27 February 2026. Except as stated below, these interim financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2025, which are available at the Company’s registered office located at Level 2, 161 Collins Street, Melbourne, Victoria and on the website www.ion.video. CHANGES IN MATERIAL ACCOUNTING POLICIES The accounting policies applied in these interim financial statements are the same as those applied in the Group’s consolidated financial statements as at and for the year ended 30 June 2025. A number of new standards are effective from 1 July 2025 but they do not have a material effect on the Group’s financial statements. GOING CONCERN For the half year ended 31 December 2025, the Group incurred an operating net loss of $2,739,564 (2024: $2,352,852) and net cash outflows from operating activities of $2,716,724 (2024: $1,484,887). The Group had net assets of $1,321,242 at 31 December 2025 (30 June 2025: $2,238,205 deficiency) and cash on hand of $892,645 (30 June 2025: $227,410). Notes to the condensed consolidated financial statements FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 14 of 28 NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) GOING CONCERN (CONTINUED) These conditions give rise to a material uncertainty as to whether the Group will be able to continue as a going concern and, should the Group be unable to continue as a going concern it may be required to realise assets at an amount different to that recorded in the statement of financial position, settle liabilities other than in the ordinary course of business and make provisions for other costs which may arise. The ability of the Group to continue as a going concern is dependent upon a number of factors, one being the continuation and availability of funds. The financial statements have been prepared on the basis that the Group is a going concern, which contemplates the continuity of its business, realisation of assets, and the settlement of liabilities in the normal course of business for a period of at least twelve months from the date of approval of these annual financial statements. In determining that the going concern assumption is appropriate, the directors have had regard to: • confidence in achieving expected sales through the Group’s commercialisation activities; • prudent management of costs as required including the ability to control expenditures in line with cash resources available; • being able to raise additional capital funds through conducting a capital raising to enable the continuation of the development and commercialisation activities as planned; and • the Directors have prepared cash flow projections for the period from 1 January 2026 until 31 March 2027 that support the Group’s ability to continue as a going concern. These cashflow projections assume the Group’s ability to control expenditures to the level of funding available in addition to raising additional capital in order to maintain positive cash flows. The Directors are confident the Group will be able to secure sufficient capital funds and the Group has a demonstrated track record of raising capital as required. The Group’s ability to continue to operate as a going concern is dependent upon the items listed above, the achievement of which is uncertain at the date of approval of these financial statements. Notes to the condensed consolidated financial statements FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 15 of 28 NOTE 2. COMMITMENTS AND CONTINGENT LIABILITIES The Group has no contingent liabilities and commitments at the date of this report. NOTE 3. SEGMENT REPORTING During the half-year the Group operated as an intellectual property business focused on video infrastructure technology. NOTE 4. REVENUE AND OTHER INCOME Consolidated December 2025 $ December 2024 $ Revenue from services rendered* 290,321 414,911 *An amount of $94,970 (2024:$113,951) included in income in advance at 30 June 2025 has been recognised as revenue during the period. Other income: Interest income 276 857 Total revenue and other income 290,597 415,768 NOTE 5. TRADE AND OTHER RECEIVABLES Consolidated December 2025 $ June 2025 $ Accounts receivable 210,618 278,339 Prepaid expenses and other receivables* 779,781 67,456 990,399 345,795 Accounts receivable are shown net of impairment losses of $nil (June 2025: $134,620). * Includes director-related receivables of $572,567 (June 2025: $6,250), which are being settled by March 2025. Notes to the condensed consolidated financial statements FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 16 of 28 NOTE 6. ISSUED CAPITAL Legal Parent Consolidated December 2025 June 2025 December 2025 June 2025 Shares Shares $ $ Ordinary shares - fully paid 9,074,860,576 6,151,215,714 62,289,231 59,428,522 Movements in ordinary share capital Details Date No. of shares Legal Parent Legal parent Balance as at 30 June 2025 6,151,215,714 Issue of shares through private placement July 2025 350,000,000 Issue of shares as share-based payments^ September 2025 88,298,590 Issue of shares on conversion of convertible notes# October 2025 510,179,289 Issue of shares associated with previous capital facility October 2025 27,500,000 Issue of shares through private placement October 2025 750,000,000 Issue of shares on conversion of convertible notes# October 2025 152,666,983 Issue of shares through private placement December 2025 737,000,000 Issue of shares as share-based payment to Directors^ December 2025 300,000,000 Issue of shares as share-based payment^ December 2025 8,000,000 Balance as at 31 December 2025 9,074,860,576 Details Date $ Group Balance as at 30 June 2025 59,428,522 Issue of shares through private placement* July 2025 345,191 Issue of shares conversion of convertible notes* October 2025 818,523 Issue of shares through private placement* October 2025 745,120 Issue of shares conversion of convertible notes* October 2025 248,373 Issue of shares through private placement* December 2025 703,502 Balance as at 31 December 2025 62,289,231 *Net of share issue costs $51,291 (2024: $9,067). ^Net of $1,004,299 (2024: $26,950) of share-based payment transaction costs. # refer to note 9 for details of the convertible notes. Notes to the condensed consolidated financial statements FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 17 of 28 NOTE 6. ISSUED CAPITAL (CONTINUED) Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. NOTE 7. RESERVES EQUITY RESERVE ON CONVERTIBLE NOTE The convertible notes issued are classified as equity due to the following reasons: • The issuer has a present and unconditional right to settle the obligation by issuing a fixed number of equity instruments. • The conversion feature meets the ‘fixed-for-fixed’ criterion, whereby a fixed amount of debt is exchanged for a fixed number of shares. • Once the issuer’s conversion right becomes exercisable, the issuer can avoid cash settlement by issuing a conversion notice on or prior to maturity date. • The noteholder cannot demand cash settlement once the issuer’s conversion right becomes exercisable. • There are no derivatives embedded within the convertible notes. • Interest incurred on the convertible notes are capitalised and there is no obligation for the issuer to make cash interest payments. CONVERTIBLE NOTE RESERVE In September 2024, the Company entered into a convertible note deed poll enabling the Company to issue up to $3 million of funding. Under the terms of the deed, the company issued Convertible Notes over four tranches: Tranche 1: $380,000 in September 2024, maturing 23 September 2026; Tranche 2: $445,000 in October 2024, maturing 23 September 2026; Tranche 3: $250,000 in December 2024, maturing 3 December 2026; and Tranche 4: $350,000 in February 2025, maturing 26 February 2027. Notes to the condensed consolidated financial statements FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 18 of 28 NOTE 7. RESERVES (CONTINUED) CONVERTIBLE NOTE RESERVE (CONTINUED) The principal amount outstanding and accrued interest (20% per annum) are convertible at the Note holders’ election into ordinary shares at a fixed share price of $0.002. The Group also has the ability to convert the notes into ordinary shares on the same terms as the Note holder at any time after the first anniversary of the notes and prior to the maturity date of the notes. During the period the following convertible notes were converted: Tranche 1: $380,000 was converted into 232,071,154 shares; Tranche 2: $445,000 was converted into 278,108,135 shares; and Tranche 3: $250,000 was converted into 152,666,983 shares. In February 2025, the Company entered into a convertible note deed poll enabling the Company to issue up to $750,000 of funding. Under the terms of the deed, the company issued $350,000 Convertible Notes in March 2025, maturing 25 March 2027. The principal amount outstanding and accrued interest (20% per annum) are convertible at the Note holders’ election into ordinary shares at a fixed share price of $0.002. The Group also has the ability to convert the notes into ordinary shares on the same terms as the Note holder at any time after the first anniversary of the notes and prior to the maturity date of the notes. In June 2025, the Company entered into a convertible note deed poll, enabling the Company to issue up to $3 million of funding. Under the terms of the deed, the company issued Convertible Notes over four tranches: Tranche 1: $350,0001 in July 2025, maturing 23 September 2027; Tranche 2: $1,185,0002 in September 2025, maturing 23 September 2027; Tranche 2: $908,750 in November 2025, maturing 13 November 2027; and Tranche 2: $556,2503 in December 2025, maturing 24 December 2027. The principal amount outstanding and accrued interest (20% per annum) are convertible at the Note holders’ election into ordinary shares at a fixed share price of $0.001. The Group also has the ability to convert the notes into ordinary shares on the same terms as the Note holder at any time after the first anniversary of the notes and prior to the maturity date of the notes. 1 $350,000 received in respect of these convertible notes were classified as a financial liability as at 30 June 2025. 2 Includes $500,000 convertible notes for Brent Jones and $10,000 convertible notes for Joe Rinarelli approved by shareholders on 14 August 2025. 3 Includes $546,250 convertible notes for Brent Jones and $10,000 convertible notes for Joe Rinarelli approved by shareholders on 24 November 2025. Notes to the condensed consolidated financial statements FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 ION Video Limited (ASX: IOV) ACN 149 796 332 Page 19 of 28 NOTE 7. RESERVES (CONTINUED) EQUITY SETTLED BENEFITS RESERVE SHARE BASED PAYMENTS Employee share option plan An employee share option plan (ESOP) has been established by the Group, whereby the Group may, at the discretion of the Board, grant options over ordinary shares in the Company to personnel of the Group. The options are issued for nil consideration and are granted in accordance with time based and/or performance targets established by the Board. Share options (equity settled) The key terms and conditions of share options on issue are as follows; all options are to be settled by the physical delivery of shares. Grant date Number of instruments Exercise price Vesting conditions Contractual life of options Options granted under the ESOP On 12 September 2025 150,000,000 nil Continued employment to 30 September 2026 4 years On 12 September 2025 100,000,000 nil Continued employment and a share price greater than or equal to $0.003, as measured by the 20-day VWAP, by 30 Sep