REG - Wellnex Life Limited - Q2 FY26 Quarterly Update and Appendix 4C
29/01/2026 07:00
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RNS Number : 8220Q Wellnex Life Limited 29 January 2026
ASX/AIM Announcement
29 January 2026
Quarterly Update and Appendix 4C
Highlights
· Operating cash outflow improved significantly to $(0.16)m, from
$(2.98) m in Q1 FY26 on the back of 31.5% QoQ revenue growth and significant
cost reductions
· Customer cash receipts increased to $5.10m, up from $4.54m in the
previous quarter
· Manufacturing and operating cash flows returned to normal levels,
following a one-off raw material purchase in Q1 FY26
· Quarter end cash balance rose to $0.98m, with $2.01m in undrawn
financing facilities available
· Please join Executive Chairman, Ash Vesali, for an upcoming live
investor briefing on Monday, 2 February 2026 at 11am (AEDT). Register here:
https://wellnexlife.investorportal.com.au/live-investor-briefing/
Wellnex Life Limited (ASX/AIM: WNX) ("Wellnex Life" or the "Company")
Executive Chairman, Ash Vesali is pleased to provide the following operational
and business update along with its Appendix 4C for the quarter ended 31
December 2025 (all figures unaudited).
During the December quarter, the Company recorded customer cash receipts of
$5.1m, reflecting improved trading conditions and continued strength in core
brand Pain Away.
Revenue Q2 FY26 Q1 FY26 % Change
Brands $3.8 million $5.1 million (25.5%)
IP Licensing $3.3 million $0.3 million 1000%
Total $7.1 million $5.4 million 31.5%
Gross Profit $2.1 million $1.8 million 16.7%
Brands sales declined to $3.8m in Q2 FY26, primarily due to the Company's
previously announced decision to consolidate and deprioritise non-core assets,
as part of a strategic focus on core brand and long-term profitability.
Net operating cash outflow for the quarter was $(0.16)m, a significant
improvement compared with $(2.98)m in the prior quarter. As of 31 December
2025, the Company held $0.98m in cash and cash equivalents and had total
financing facilities of approximately $11.65m, of which $9.65m had been drawn
as further referred to in 7 of Appendix 4c below.
The Company remains focused on its turnaround strategy, improving cash
conversion, and strengthening its balance sheet.
During the quarter, payments of $0.36m were made to related parties. These
payments relate to directors' fees, executive remuneration and associated
costs.
The Board is encouraged by the strong execution and sustained engagement
across the business. The Company continues to operate with increased focus and
discipline to further identify opportunities to enhance margins and reduce
costs.
Join Executive Chairman, Ash Vesali, for an online investor briefing on
Monday, 2 February 2026 at 11am (AEDT). Register here:
https://wellnexlife.investorportal.com.au/live-investor-briefing/
This ASX/AIM announcement has been authorised by the Board of Wellnex Life
Limited (ASX/AIM:WNX).
--- END ---
For further information, please contact:
Wellnex Life Limited (ASX/AIM:WNX)
Reach Markets
Ash Vesali
T: 1300 805 941
Executive Chairman
E: IR@reachmarkets.com.au
(mailto:IR@reachmarkets.com.au)
E: ash.v@wellnexlife.com.au (mailto:ash.v@wellnexlife.com.au)
UK Investors
Strand Hanson (Financial & Nominated Advisor)
James Harris / Richard Johnson
Tel: +44 (0) 20 7409
3494
Orana Corporate LLP (Joint Broker)
swykeham@oranacorp.com
(mailto:swykeham@oranacorp.com)
Sebastian Wykeham
S.P. Angel Corporate Finance LLP (Joint Broker) Tel: +44 (0)20
3470 0470
David Hignell / Vadim Alexandre
To learn more, please visit: www.Wellnex Lifelife.com.au/
(https://wellnexlife.com.au/)
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
WELLNEX LIFE LIMITED
ABN Quarter ended ("current quarter")
77 150 759 363 31 December 2025
Consolidated statement of cash flows Current quarter $A'000 Year to date
(6 months)
$A'000
1. Cash flows from operating activities 5,101 9,637
1.1 Receipts from customers
1.2 Payments for (142) (259)
(a) research and development
(b) product manufacturing and operating costs (2,511) (7,097)
(c) advertising and marketing (619) (1,428)
(d) leased assets
(e) staff costs (1,064) (1,944)
(f) administration and corporate costs (379) (1,268)
1.3 Dividends received (see note 3) - -
1.4 Interest received 0 0
1.5 Interest and other costs of finance paid (264) (350)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (GST refund/(paid)) (285) (432)
1.9 Net cash from / (used in) operating activities (163) (3,141)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) businesses
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property -
(f) other non-current assets - -
2.2 Proceeds from disposal of: - -
(a) entities
(b) businesses - -
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property - -
(f) other non-current assets - -
2.3 Loan repayment from other entity - -
2.4 Dividends received (see note 3) - -
2.5 Other (cash acquired from CBDG Administration) -
2.6 Net cash from / (used in) investing activities - -
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt (331) (1,150)
securities
3.5 Proceeds from borrowings 4,735 11,677
3.6 Repayment of borrowings (3,440) (6,907)
3.7 Transaction costs related to loans and borrowings - -
3.8 Share applications to be refunded - -
3.9 Other (repayment of lease liabilities) - -
3.10 Net cash from / (used in) financing activities 965 3,620
4. Net increase / (decrease) in cash and cash equivalents for the period 174 497
4.1 Cash and cash equivalents at beginning of period
4.2 Net cash from / (used in) operating activities (item 1.9 above) (163) (3,141)
4.3 Net cash from / (used in) investing activities (item 2.6 above)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 965 3,620
4.5 Effect of movement in exchange rates on cash held (1) (1)
4.6 Cash and cash equivalents at end of period 975 975
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 975 174
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (funds held in trust) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 975 174
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 360
in item 1
6.2 Aggregate amount of payments to related parties and their associates included
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities 9,125 (7,120)
7.2 Credit standby arrangements - -
7.3 Other (Director's loan) 2,525 (2,525)
7.4 Total financing facilities 11,650 (9,645)
7.5 Unused financing facilities available at quarter end 2,005
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
1.
Sec
ure
d
Rev
olv
ing
Tra
de
and
Deb
tor
Fac
ili
ty
wit
h
Sco
tti
sh
Pac
ifi
c
of
$3.
8
mil
lio
n
Int
ere
st
Rat
e:
BBS
Y
plu
s
6.8
%.
2.
Sec
ure
d
loa
n
fac
ili
ty
wit
h
Rea
ch
Who
les
ale
of
up
to
$5.
35m
at
14%
per
ann
um
exp
iri
ng
Aug
ust
202
7.
A
fur
the
r
$0.
375
m
is
ava
ila
ble
to
the
com
pan
y
if
req
ues
ted
at
the
abs
olu
te
dis
cre
tio
n
of
len
der
.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (163)
8.2 Cash and cash equivalents at quarter end (item 4.6) 975
8.3 Unused finance facilities available at quarter end (item 7.5) 2,005
8.4 Total available funding (item 8.2 + item 8.3) 2,980
8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 18.3
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
ne
t
op
er
at
in
g
ca
sh
fl
ow
s
in
it
em
1
.9
,
an
sw
er
it
em
8
.5
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8
.5
.
8.6 If item 8.5 is less than 2 quarters, please provide answers to the following
questions:
8.6.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
8.6.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
8.6.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2
and 8.6.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with
accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
29
January 2026
Date:
...................................................................................
The
Board of Directors
Authorised by:
...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's activities
for the past quarter, how they have been financed and the effect this has had
on its cash position. An entity that wishes to disclose additional information
over and above the minimum required under the Listing Rules is encouraged to
do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 107: Statement of Cash Flows apply to this report. If this
quarterly cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standard applies to this report.
3. Dividends received may be classified either as cash flows from
operating activities or cash flows from investing activities, depending on the
accounting policy of the entity.
4. If this report has been authorised for release to the market by
your board of directors, you can insert here: "By the board". If it has been
authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by
your board of directors and you wish to hold yourself out as complying with
recommendation 4.2 of the ASX Corporate Governance Council's Corporate
Governance Principles and Recommendations, the board should have received a
declaration from its CEO and CFO that, in their opinion, the financial records
of the entity have been properly maintained, that this report complies with
the appropriate accounting standards and gives a true and fair view of the
cash flows of the entity, and that their opinion has been formed on the basis
of a sound system of risk management and internal control which is operating
effectively.
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. END UPDBPMJTMTATTPF
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