Ensurge Micropower ASA - Q2 2026

CEO comment
"In the first quarter, we delivered record battery performance. The second
quarter was about proving it repeats and developing our technology further. The
clearest evidence is a fourfold improvement in the performance of our LiPON
solid-state electrolyte, with three times improved homogeneity. Cycling also
moved from bench-level glove boxes into standard test boxes, which lifts the
limit on how many cells we can hold on test and how fast evidence accumulates.
We also built out the commercial function, broadened the pipeline into defense,
and defined a relocation that removes more than USD 3.5 million a year from our
cost base on completion. We enter the second half with a newly built commercial
function and an improved technology platform, with the goal of advancing further
and converting pipeline interest into formal development partnerships."

Operational highlights Q2 and to date
 Fourfold improvement in the core electrolyte. Ensurge delivered a 4x
improvement in the performance of its LiPON solid-state electrolyte, measured by
ionic conductivity, with 3x improved process homogeneity. The LiPON deposition
process is the critical enabler of Ensurge's solid-state technology stack and is
shared across the Company's baseline (stainless steel) platform and the Corning
"Encore" platform, so its performance and repeatability are crucial to both. The
same approach is now being applied to additional key process steps.
 Cycling moved outside the bench-level glove box. Reliable cycling was achieved
in standard test boxes at 30% of total battery cell capacity using Corning's
Ribbon Ceramic cathode of the Company's "Encore" platform, lifting the practical
constraint on how many cells the Company can hold on test at one time and how
quickly evidence for the stage gate accumulates.
 Commercial function established and pipeline broadened. Salil Soman was
appointed Chief Commercial Officer, bringing more than 25 years of experience
commercializing advanced battery technologies. The pipeline broadened into
defense applications alongside sensor technologies and medical implantables. 
 Negotiations advanced on the multi-year paid customer development program.
Terms are not yet final and the program is taking longer to conclude than the
Company anticipated. The Company will announce the agreement once terms are
finalized.
 San Jose relocation defined. The lease renegotiation reported in Q1 became a
defined relocation during the quarter, moving from the approximately 96,000 sq
ft Junction Avenue site to a facility of approximately 32,000 sq ft matched to
the Company's product-led operating model. On completion the relocation is
expected to reduce recurring site-related costs by approximately 70% and deliver
over USD 3.5 million of recurring annual savings on a net basis, while creating
the opportunity for a purpose-built pilot manufacturing line. The agreements are
not yet executed and the Company will confirm final terms and the resulting
financial effect on completion.
 Quality capability added and CFO search completed. A Director of Quality was
appointed, a foundational role responsible for building quality systems and
processes from the ground up, and the first phase of the Company's data
infrastructure modernization was completed. Subsequent to the period, Bryce
Dille, CFA, was appointed Chief Financial Officer effective 25 August 2026.

Financial highlights Q2 26
 USD 3 thousand revenue in Q2 and USD 157 thousand for the first half. From
strategic development and partnership activities. Substantially all of the
half-year amount was recognized in the first quarter.
 USD -4.4M EBITDA in Q2 26, versus USD -3.9M in Q1 26 and USD -4.3M in Q2 25 on
a like-for-like basis including capitalized R&D. Operating expenditure including
capitalized R&D was USD 4.4M in Q2 26 against USD 4.1M in Q1 26.
 R&D material costs -45% y/y in H1 26 and redeployed into experienced battery,
quality and test engineering as the product-led operating model took effect. The
structural reduction in the cost base follows the site relocation and will be
visible in the accounts from completion.
 Operations funded into mid-H2 2026. Cash of USD 3.2M at 30 June 2026, with
approximately USD 2.1m raised 31 July under the April 2026 Convertible Loans at
a 48% premium to the prevailing share price at time of commitment.

Outlook
The Company's priority remains to complete the work required to exit the
Proof-of-Concept stage gate and to bring the product to the level of
predictability needed to ship to customers. Work in the second half is organised
around three areas. On product, the Company will replicate its performance
results with credible external validation, demonstrate repeatability at larger
sample sizes, and advance the Corning Joint Development Agreement toward
completion of Phase 1. On commercial, the focus is the paid customer development
agreement milestone and converting the wider pipeline into multi-year
development programs. On cost, the Company will complete the site relocation,
concluding the fixed-cost restructuring initiated in February 2026, and design a
purpose-built pilot manufacturing line and showcase facility for partners and
customers. Taken together, the second half is targeted to deliver external
validation and a leaner cost base by year-end. The Company will report progress
against these items each subsequent quarter.

For further questions, please contact: ir@ensurge.com

About Ensurge Micropower ASA
Ensurge Micropower develops ultra-thin, flexible solid-state lithium micro
batteries that enable next-generation electronic devices. The Company's
proprietary platform is designed to deliver safe, high-performance energy
storage in space-constrained applications across medical devices, hearables,
wearables, industrial systems, and defense. Ensurge Micropower ASA is listed on
the Oslo Stock Exchange under the ticker ENSU.
arables\, industrial systems\, and defense. Ensurge Micropower ASA is listed on\
the Oslo Stock Exchange under the ticker ENSU.\