Identitii (ASX:ID8) develops software to help organisations manage financial-crime compliance. Its FY26 results, reported on 27 August 2026 by company updates, show a wider loss, a small cash balance and a balance-sheet deficit, set against the launch of a new platform called BNDRY. The central question for the company is whether that new Revenue can replace a lost licence fee.

FY26 numbers

According to the summary of the company’s results, net loss after tax was A$4.88 million, up 47% from A$3.33 million. Revenue from ordinary activities was A$768,154, a 1% fall. Total expenses rose 16% to A$6.33 million. Cash stood at A$111,769, down A$995,142 over the year, and net Assets were a Deficit of A$1.88 million. Loss per share was 0.53 cents, measured before the later share consolidation.

The report said revenue was affected by the non-recurrence of a A$469,904 annual licence fee from Mastercard in February 2026, following the announced exit of that contract. Identitii had announced on 16 February 2026 that it was exiting its Overlay product and its Mastercard arrangement.

BNDRY and the new customers

The company launched BNDRY, a financial-crime compliance platform, which generated A$460,516 of new revenue in the year. Costs rose as well, including a A$335,247 increase in Marketing and a A$705,903 increase in legal and professional fees tied to Capital raising and customer documentation. In January 2026 the company said it had signed four new commercial contracts, three with Australian clubs and pubs and one with a payments provider, and that more than 100 venues had expressed interest. Interest is not a contract, and only signed contracts that are delivered become recognised revenue.

Funding and governance

In January 2026 Identitii announced a A$0.6 million Research and Development Loan Facility with Kashcade RD1 and expected a A$0.8 million R&D tax rebate. It was also running a rights issue targeting up to A$2.9 million, with A$2.3 million underwritten.

That rights issue drew regulatory scrutiny. On 10 February 2026 the Takeovers Panel declared unacceptable circumstances over the one-for-two non-renounceable rights issue, which was designed to raise A$2.88 million. The Panel’s concern was that underwriter Beauvais Capital could lift its voting power from 29.92% to as much as 49.91%. It ordered supplementary disclosure, a reopening of the offer for at least seven days with Withdrawal rights, and a bar on issuing securities to the underwriter without Shareholder approval.

Identitii also moved to consolidate its shares, Options and performance rights, with a Record Date of 17 August 2026 and Issue Date of 24 August 2026.

Sector context

Regulatory technology depends on long sales cycles and trust from compliance teams. Shifting from large financial-institution partners towards smaller venue customers can broaden the base, but individual contract values are likely to be smaller.

Key risks

Cash of under A$0.12 million at 30 June 2026 against annual expenses above A$6 million points to a need for further funding. The next Quarterly Report should clarify this. This is general information, not advice.