24 June 2025

BSF Enterprise PLC

("BSF" or the "Company")

Interim 2025 Results

BSF (LSE: BSFA), (OTCQB: BSFAF), a leading innovator in tissue-engineered materials is pleased to announce its unaudited interim results for the six months ending 31 March 2025.

Dr Che Connon, CEO of BSF Enterprise  is pleased to present the report for the six months ended March 31, 2025.

Financial Summary: The net loss for the period decreased to £790,623, compared to a loss of £864,775 in the corresponding six-month period in 2024. This reduction reflects a small decrease in administrative expenses and an increase in grant income. Administrative expenses were 2% lower at £875,730, and grant income increased significantly to £67,823 (2024: £3,779). The loss per share decreased from 0.84 pence to 0.64 pence.

The Group's cash balance as of March 31, 2025, was £338,957, down from £637,656 at September 30, 2024. This reduction is due to the losses for the period and proceeds from a £500,000 placing in December 2024. No dividends were paid or proposed during this period.

Business Review Highlights:

●    Strategic Partnerships and Collaborations: BSF Enterprise, through its subsidiary 3D Bio-Tissues (3DBT), signed a strategic Memorandum of Understanding (MoU) with Sartorius, a global leader in bioprocessing solutions. This partnership aims to develop cost-effective and scalable production methods for lab-grown leather and alternative protein products.

●    Advancements in Lab-Grown Leather Commercialization: Lab-Grown Leather Ltd (LGL) is developing three core product lines: Elemental Leather™, Elemental+™, and Elemental X™.

○    Elemental Leather™ is a premium lab-grown leather designed to be identical to traditional leather.

○    Elemental+™ is an ultra-thin (>0.04mm) yet strong leather alternative, opening opportunities in weight-sensitive sectors like sportswear and electric vehicles.

○    Elemental X™ is a groundbreaking leather developed using engineering biology and AI, including the pioneering T-Rex leather derived from synthetic T-Rex DNA.

●    Breakthrough Developments and Market Engagement: Elemental+™ achieved a key milestone with its ultra-thin strength. The announcement of Elemental X™ and the T-Rex leather collaboration garnered global media attention, reaching an audience of over 500 million. LGL has since entered commercial discussions with three leading fashion and accessories brands regarding the T-Rex leather product.

●    New Product Development - CytoBoost: 3DBT is developing CytoBoost, a new product range for biopharma and biomedical research, designed to accompany City-Mix™. CytoBoost Revive has been shown to increase cell revival following thaw from cryostorage by up to 100%.

●    Kerato Progress: Kerato, our corneal replacement company, continues to make strong operational progress, securing grants for the development of its LiQD Cornea technology and for implementing an ISO-13485 quality management system.

●    Financial Developments and Strategic Funding: We successfully completed a strategic placement of 4,725,000 new ordinary shares at 3 pence per share in April 2025, raising £141,750 to support growth initiatives.

●    December 2024 Fundraising: Completed an oversubscribed placing of 20,000,000 new ordinary shares at 2.5 pence per share, raising £500,000. The placing included one warrant per share at an exercise price of 5 pence, valid for three years, with 15% of the funds subscribed by management. The funds will support strategic business objectives across BSF's subsidiaries.

●    Commercial Partnerships and Sample Development: LGL engaged with four major fashion brands, providing samples of Elemental Leather™ and receiving positive feedback that has led to product refinements.

●    Operational Efficiencies and Sustainability Initiatives: The use of 3DBT's City-Mix™ media additive is expected to save LGL over £500,000 in tissue production costs over the next five years, enhancing profitability and reinforcing our commitment to sustainability.

Outlook:

BSF Enterprise remains dedicated to advancing its portfolio of sustainable tissue-engineered materials and strategic collaborations. With significant progress in lab-grown leather commercialization, partnerships with industry leaders, and successful financing initiatives completed in 2025, the Group is well-positioned for continued growth, innovation, and value creation in the year ahead.

For further enquiries, please visit www.bsfenterprise.com or contact:

ISIN of the Ordinary Shares is GB00BHNBDQ51

SEDOL Code is BHNBDQ5.

24 June 2025

BSF Enterprise PLC

("BSF" or the "Company")

Unaudited Interim Consolidated Financial Statements

for the period ended 31 March 2025

Chairman's Statement

On behalf of the Board, I present the 2025 Interim Financial Statements of BSF Enterprise Plc for the six months ended 31 March 2025.

During this period, the Company has continued to make remarkable progress in advancing its strategy, marked by substantial technological developments, new strategic partnerships, and significant steps toward commercialization across its key business areas.

One of the period's most pivotal achievements was the signing of a strategic Memorandum of Understanding (MoU) between our subsidiary 3D Bio-Tissues (3DBT) and global bioprocessing leader Sartorius. This partnership aims to combine 3DBT's innovative scaffold-free tissue-engineered materials and patented macromolecular crowders with Sartorius's extensive expertise in cell culture platforms and bioprocessing technologies. The collaboration is designed to accelerate the development of cost-effective, scalable, and sustainable production methods, particularly in the lab-grown leather and alternative protein sectors, aligning with BSF's vision of driving innovation and efficiency in sustainable biotechnology solutions.

In addition to our technological advancements, we strengthened our capital base through the approval and publication of our Prospectus by the Financial Conduct Authority (FCA). This allows the issuance of up to 28,926,352 new ordinary shares, providing the flexibility needed to support our growth strategy. This follows our successful fundraising in December 2024, raising £500,000 through an oversubscribed placing of 20,000,000 new ordinary shares at 2.5 pence per share. The placing also included one warrant per share at an exercise price of 5 pence, valid for three years, with management subscribing for 15% of the funds raised-demonstrating strong internal confidence in the Group's vision and execution capabilities. The shareholder approval of share allotment and the disapplication of pre-emption rights at our annual general meeting underscores investor confidence in our expansion plans.

Our subsidiary, Lab-Grown Leather Ltd (LGL), has made significant strides in its commercialization journey. Supported by the Northern Accelerator Growth Support Grant, LGL has initiated strategic collaborations with third parties to conduct market research, develop scalable production processes, and align commercialization with key sectors such as fashion, jewellery, and automotive. This includes building a comprehensive business case to position LGL as a stand-alone entity, unlocking value for both existing and new investors.

Among our most innovative milestones this year is the announcement of Elemental X™, the flagship product developed by LGL using our proprietary Advanced Tissue Engineering Platform (ATEP™). In a groundbreaking collaboration with VML and The Organoid Company, LGL unveiled plans for the world's first leather product inspired by Tyrannosaurus rex DNA. This pioneering project leverages creative innovation, genomic engineering, and sustainable tissue engineering to redefine the luxury materials industry. The T-Rex leather represents a sustainable and high-performance alternative, opening exciting new opportunities in accessories and automotive sectors.

Our commitment to financial discipline remains strong. We successfully executed a strategic placement of 4,725,000 new ordinary shares at 3 pence per share in April 2025, raising £141,750 within our available share issuance headroom. This placement reflects continued support from our largest shareholder and reinforces investor confidence in our business model, especially following the T-Rex leather announcement, which generated significant media attention and interest from potential partners.

Looking ahead, Lab-Grown Leather Ltd has made remarkable progress in product development, including a breakthrough with Elemental+™, an ultra-thin (>0.04mm) yet strong leather alternative that expands design possibilities in sportswear, electric vehicles, and aerospace. Elemental+™ and Elemental X™ products continue to attract substantial interest from major fashion brands, with several partners commissioning samples for testing and development. Positive feedback from these collaborations has led to ongoing product refinements, positioning us strongly for future commercialization.

Production expansion is on the horizon, supported by substantial cost savings through the use of 3DBT's City-Mix™ media additive, which is expected to save LGL over £500,000 in tissue production costs over the next five years. This initiative not only enhances profitability but also reinforces our commitment to sustainable and innovative materials.

BSF Enterprise remains resolute in its dedication to driving biotechnology forward, delivering transformative solutions across the materials, food technology, and life sciences sectors. Our progress in 2025 demonstrates our unwavering commitment to sustainability, ethics, and innovation, as we build a foundation for long-term value creation.

On behalf of the Board, I extend our heartfelt appreciation to our shareholders for their continued trust and support. We remain focused on honouring our commitments and creating enduring value for all stakeholders.    

Chief Executive's Report

I am pleased to present my report for the six months ended 31 March 2025.

Financial summary

The net loss for the period ended 31 March 2025 was £790,623 (2024: £864,775 loss). The decrease in the loss compared with the corresponding six-month period in 2024 reflects a small reduction in administrative expenses and an increase in grant income. In particular, administrative expenses of £875,730 were 2% lower than the corresponding period whilst grant income of £ 67,823 was received in the period (2024: £3,779). the Group generated revenues of £20,559 (2024: £54,295).

The loss per share decreased from 0.84 pence per share to 0.64 pence per share.

Cash flow

The Group's cash balances as at 31 March 2025 were £338,957 (compared with £637,656 at 30 September 2024). The reduction in cash balances reflects the losses for the period and placing proceeds of £500,000 in December 2024 .

Dividends 

During the period ended 31 March 2025, there were no dividends paid or proposed.

Business Review

Strategic Partnerships and Collaborations

In the six months ended 31 March 2025, BSF Enterprise, through its subsidiary 3D Bio-Tissues (3DBT), signed a strategic Memorandum of Understanding (MoU) with Sartorius, a global leader in bioprocessing solutions. This partnership aims to combine 3DBT's innovative scaffold-free tissue-engineered materials and patented macromolecular crowders-City-Mix™ for alternative protein and CytoBoost™ for biopharma-with Sartorius's expertise in cell culture platforms, bioprocess technologies, and scaling. The collaboration focuses on developing cost-effective and scalable production methods for lab-grown leather and alternative protein products, supporting BSF's sustainability objectives and commercial strategy.

Advancements in Lab-Grown Leather Commercialization

Lab-Grown Leather Ltd (LGL), BSF's wholly owned subsidiary, continued to accelerate commercialization efforts. LGL is developing three core product lines:

            •     Elemental Leather™: Premium lab-grown leather identical in feel, look, and smell to traditional leather.

          •    Elemental+™: Ultra-thin (>0.04mm) yet strong leather, achieved using vegetable-derived tanning components. This innovation unlocks opportunities in weight-sensitive sectors such as sportswear, electric vehicles, and aerospace.

         •   Elemental X™: Groundbreaking leather developed using engineering biology and AI, including the pioneering T-Rex leather derived from synthetic T-Rex DNA.

Lab-Grown Leather Ltd (LGL) is developing innovative leather materials from unique species, including T-Rex, utilizing a proprietary "scaffold-free" tissue engineering technology. This advanced platform allows engineered cells to generate their own natural structure, resulting in a product that closely mimics the composition and performance of traditional animal leather. This approach offers a sustainable and cruelty-free alternative to conventional leather production, addressing significant environmental and ethical concerns associated with traditional tanning processes, such as the use of harmful chemicals and deforestation.

Table 1: Lab-Grown Leather Ltd: Product Concepts, Market Appeal, and Visualization Strategy

Breakthrough Developments and Market Engagement

Elemental+™ achieved a key milestone, maintaining comparable strength at a thickness of just >0.04mm-up to a hundred times thinner than the thickest traditional leather-opening the door to new product applications. In addition, the announcement of Elemental X™ and the T-Rex leather collaboration with VML and The Organoid Company captured global media attention, with coverage reaching an audience of over 500 million, an estimated print circulation of 2.5 million, and more than 2,500 engagements on social media. Following this, LGL entered into commercial conversations with three leading fashion and accessories brands regarding the production of the world's first T-Rex leather product.

New product development from 3DBT - CytoBoost

The global market for consumables used in cryopreservation and post-thaw cell recovery is experiencing significant growth, projected to reach between US$80.6 billion by 2034 and US$95.45 billion by 2035, with a Compound Annual Growth Rate (CAGR) exceeding 21%. This expansion is largely driven by advancements in cell and gene therapies, regenerative medicine, and biobanking, all of which rely heavily on effective cell storage and revival. Consumables, including cryoprotective agents (CPAs), specialized freezing media, and post-thaw recovery solutions, form the largest segment of this market.

Despite the market's growth, challenges such as cryoinjury-damage occurring during freezing and thawing-and Cryopreservation-Induced Delayed Onset Cell Death (CIDOCD)-cell death hours to days after thawing-remain significant hurdles. These challenges necessitate continuous innovation in consumables, including the development of less cytotoxic CPAs and specialized post-thaw reagents designed to mitigate cellular stress and promote recovery. The industry is shifting towards a holistic biopreservation approach, focusing on maintaining cell viability and functionality throughout the entire process, not just during freezing. This includes developing "smart" or "optimized" cryo-media formulations that balance protection with reduced toxicity. There's also a growing demand for animal-origin-free and chemically defined formulations to ensure consistency, reduce contamination risks, and meet stringent regulatory requirements.

Key market players like Thermo Fisher Scientific, BioLife Solutions, Pluristyx, PromoCell GmbH, and Sartorius AG offer a range of specialized freezing media and post-thaw recovery supplements. These products aim to address specific issues like post-thaw stress response and improve overall cell yield and functionality.

Geographically, North America currently dominates the market due to a favourable regulatory environment and high healthcare expenditure. However, the Asia-Pacific (APAC) region is rapidly emerging as a high-growth area, fuelled by increasing investments in biotechnology and rising awareness of stem cell storage. The market's growth drivers include the increasing demand for advanced medical treatments and the expansion of stem cell research and biobanking. However, high costs, safety concerns, and varying global regulations pose restraints to market expansion.

3D Bio-Tissues (3DBT) is contributing to this market with media supplements like City-Mix and CytoBoost. City-Mix uses macromolecular crowding to enhance cell proliferation and yield, potentially reducing the need for expensive growth factors, which offers significant cost savings, particularly for the cultivated meat industry. CytoBoost-revive, whilst currently in Beta-testing is showing impressive results in 3^rd party hands, it is positioned to address a significant and growing need in the cryopreservation market, specifically the post-thaw media additives. If this product can continue to demonstrably improve post-thaw viability, it represents a substantial value proposition for cell therapies and cultivated meat production, where cryopreservation is a critical step.

Kerato Ltd. is developing LiQD Cornea, a cell-free, liquid hydrogel to address the global shortage of donor corneas. This innovative solution, composed of collagen-like peptides and polyethylene glycol, forms a self-sealing gel on contact with corneal tissue, promoting healing and reducing inflammation. Its key advantages include spontaneous gelation at body temperature, lower cost and reduced immune rejection compared to existing treatments, and potential for outpatient application.

LiQD Cornea's "in situ tissue engineering" approach offers a paradigm shift from traditional corneal transplants, providing a less invasive, faster recovery for patients, and reducing healthcare burdens. Kerato is pursuing a strategic regulatory pathway, initiating veterinary trials in Q3 2025 and aiming for a human clinical trial in 2027, leveraging veterinary data to de-risk and accelerate human trials.

The global corneal transplant market, valued at $439.8 million in 2023, is projected to reach $795.0 million by 2033, driven by increasing corneal disorders and an aging population. Despite this growth, a severe donor shortage exists, with millions awaiting transplants. LiQD Cornea aims to disrupt this market by offering a widely accessible, synthetic, and less immunogenic alternative, significantly expanding the addressable market and offering substantial revenue potential.

Table 2: Kerato Ltd: LiQD Cornea Development Milestones & Investor Communication Plan

Financial Developments and Strategic Funding

BSF Enterprise strengthened its financial position by successfully completing a strategic placement of 4,725,000 new ordinary shares at 3 pence per share in April 2025, raising £141,750 to support its strategic business and growth initiatives. This placement was executed within the Company's remaining headroom for shares under FCA Rules and reflects continued shareholder confidence, especially in light of the T-Rex leather milestone.

In addition, the Company completed an oversubscribed placing in December 2024, raising £500,000 through the issue of 20,000,000 new ordinary shares at 2.5 pence per share. This placing included one warrant per share at an exercise price of 5 pence, valid for three years, with management subscribing for 15% of the funds raised. The proceeds are being strategically allocated to support key projects across the Group's subsidiaries, including the scale-up of Lab-Grown Leather's pilot plant, the advancement of Kerato Ltd's LiQD Cornea device towards clinical trials, and the launch of CytoBoost™ in the biopharma sector.

Comprehensive IP Strategy: Protecting Innovation and Driving Valuation

A robust intellectual property (IP) strategy, encompassing patents, copyrights, and trade secrets, is crucial for pre-revenue biotechnology companies like BSF's subsidiaries to protect innovation, strengthen market position, and attract investors. Investors meticulously evaluate patent strength, including claim breadth, enforceability, and jurisdictional coverage, as IP creates competitive barriers, adds long-term value, and is fundamental to company valuation. A high rate of patent generation signals a defensible market position and provides a "financial safety net" for investors in deep tech ventures.

For BSF, IP is a core asset that directly contributes to valuation and mitigates risk. The communication strategy should emphasize how each IP asset creates a "moat" around innovations and contributes to future revenue, potentially through licensing. For example, LGL's patented scaffold-free technology offers a more authentic, durable, and cost-effective lab-grown leather. Similarly, 3DBT's patent on macromolecular crowders for City-Mix should be presented as a proprietary solution that reduces customer costs and increases yields, securing a defensible position in the cell culture media market. This approach translates technical IP into clear business impact, demonstrating how IP enables competitive advantage and supports pricing power.

BSF is actively identifying and communicating potential licensing deals or strategic partnerships that can leverage its IP to generate non-dilutive capital or early-stage revenue, even if the primary products are not yet commercialized. This showcases financial prudence and alternative value creation pathways. Properly protected trade secrets, such as proprietary genomic data or manufacturing processes, also provide a competitive edge. A strong IP portfolio will enhance opportunities for licensing, joint ventures, and co-development deals, which are crucial for generating revenue before full commercialization. Thus, BSF is highlighting a pipeline of potential licensing opportunities, via a diversified revenue strategy and proactive capital management, which will appeal to investors in the current biotech funding climate.

Table 3: BSF Enterprise PLC IP Portfolio Overview & Strategic Value

Commercial Partnerships and Sample Development

In 2025, LGL engaged with four major fashion brands, producing eight 10x10cm² samples of Elemental Leather™ for testing and development. Feedback from these partners has led to notable improvements in product quality and suitability for downstream processing. These iterative developments have helped refine the leather's look, feel, and compatibility with traditional tanning techniques.

Operational Efficiencies and Sustainability Initiatives

Over the next five years, LGL's purchase and use of 3DBT's City-Mix™ media additive is expected to save the Company more than £500,000 in tissue production costs. This cost-saving measure reinforces BSF's commitment to operational efficiency and sustainable manufacturing practices, supporting the Group's broader strategy to scale production and increase profitability.

Che Connon, Chief Executive Officer

24 June 2025

Registered number: 11554014

BSF Enterprise Plc

Unaudited Interim Consolidated Financial Statements

for the period ended 31 March 2025

Statement of directors' responsibilities in respect of the interim results

The Directors; being Min Yang (Non-Executive Chairman), Dr Che Connon (Managing Director), Geoffrey Baker (Executive Director) and Dennis Ow (Non-Executive Director) confirm that the set of Interim Financial Statements has been prepared in accordance with International Accounting Standard 34 "interim financial reporting", as it applies in the European Union and that interim report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:

●     an indication of important events that have occurred during the first six months of the financial year;

●     and material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.

By order of the Board

Min Yang

Chairman

24 June 2025

Consolidated Statement of Comprehensive Income

for the period ended 31 March 2025

There are no items of other comprehensive income.

The notes to the interim financial statements form an integral part of these interim financial statements.

Consolidated Statement of Financial Position

as at 31 March 2025

  The notes to the interim financial statements form an integral part of these interim financial statements.

Consolidated Statement of Changes in Equity

for the period ended 31 March 2025

Consolidated Statement of Cash Flows

for the period ended 31 March 2025