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Original-Research: Advanced Blockchain AG - from GBC AG

22.07.2026 / 11:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

Classification of GBC AG to Advanced Blockchain AG

Company Name: Advanced Blockchain AG
ISIN: DE000A0M93V6

Reason for the research: Research Report (Anno)
Recommendation: Buy
Target price: 2.00 EUR
Target price on sight of: 31.12.2027
Last rating change:
Analyst: Matthias Greiffenberger, Cosmin Filker

Balance sheet adjustment completed. ABAG 2.0 Awaits Operational Proof.

Advanced Blockchain AG (ABAG) continued its far-reaching balance sheet reset
in fiscal year 2025. While the parent company's revenue rose to EUR0.31
million from EUR0.23 million in the prior year, the operating cost base
remained high. EBITDA deteriorated to -EUR1.67 million from -EUR1.29 million in
the prior year, while EBIT fell to -EUR3.36 million from -EUR1.46 million in the
prior year due to high impairment charges. On the bottom line, the net loss
for the year increased to -EUR3.48 million, compared to -EUR1.78 million in
fiscal year 2024. Earnings were therefore once again significantly affected
by legally required review and remediation work, legal and consulting
expenses, and extensive necessary balance-sheet adjustments.

The most significant impact occurred at the subsidiary Incredulous Labs
Ltd., where a large portion of the investment and token portfolio is
concentrated. In 2025, Incredulous Labs generated revenue of $0.05 million,
down from $0.23 million in the prior year, and reported a net loss of $16.98
million, compared to an adjusted net profit of $0.95 million in the prior
year. This was primarily due to extensive impairment charges on intangible
assets and token rights, fair value losses on unlisted project investments,
as well as write-offs and allowances for doubtful accounts. As a result,
Incredulous Labs' total assets fell significantly to USD 5.39 million from
USD 21.64 million in the prior year, while equity declined to negative USD
7.48 million from positive USD 9.50 million. While this development
significantly impacts the company's balance sheet ratios in the short term,
it also creates a much more conservative starting point for future
valuation.

On a positive note, significant progress was made in the fiscal year 2025 in
addressing historical issues and improving governance and control
structures. The auditor in Cyprus assessed the further development of the
control systems not merely as isolated improvements, but as a comprehensive
transformation. Thanks to the extensive asset protection measures continued
throughout 2025 and beyond, the systematic review of historical
transactions, and the comprehensive optimization of internal control and
reconciliation processes, the issues that had led to the disclaimer of
opinion on Incredulous Labs' 2023 and 2024 financial statements were
substantially resolved. As a result, Incredulous Labs was no longer issued a
disclaimer of opinion for the 2025 fiscal year, but rather a qualified
opinion. The remaining qualification primarily relates to an intra-group
balance with Brain Networks Ltd. In our view, this reflects significant
qualitative progress compared to previous years and strengthens the Group's
transparency and capital market viability. At the same time, the financial
situation remains strained. As of December 31, 2025, Advanced Blockchain AG
had cash and cash equivalents of only EUR0.11 million, while Incredulous Labs
reported bank balances of only approximately $3,700. After the balance sheet
date, the liquidity base was strengthened by a six-figure shareholder loan.
However, further financing measures and the successful monetization of
portfolio assets remain key prerequisites for implementing the new strategy
and achieving the Group's sustainable stabilization.

Strategically, the company is now poised to transition from balance sheet
restructuring to operational value creation. Under the "ABAG 2.0" vision,
the existing investment model is to be expanded to include the areas of
Investments, Treasury, Innovation, Consulting, and Analytics. Additional
revenue potential is expected to be tapped primarily through ABX Analytics,
tokenization projects, the use of the trading license in Dubai/UAE, and
selective activities in AI- and robotics-related areas. In the short term,
we do not yet expect any material earnings contributions from these
initiatives, but we see meaningful strategic optionality. At the same time,
the portfolio strategy is likely to focus more strongly on a few core
positions with higher value appreciation potential, including, in
particular, PEAQ, Panoptic, zCloak/Starks Network, and other selected DeFi,
infrastructure, and DePIN positions.

We continue to consider an adjusted NAV approach appropriate for valuation.
Traditional multiples are currently of limited use due to the lack of a
normalized earnings base. Based on the fair values recognized on the balance
sheet, the remaining token and project rights, a risk-adjusted valuation for
PEAQ, and a limited option value for ABAG 2.0, we calculate a risk-adjusted
gross asset value of EUR14.70 million. After deducting external obligations,
financing discounts, and capitalized holding costs, the adjusted NAV amounts
to EUR8.12 million. With 4.06 million outstanding shares, this corresponds to
a fair value of EUR2.00 per share.

The stock remains a speculative investment with heightened dependence on
token markets, portfolio monetization, financing opportunities, and the
successful implementation of the new operational strategy. At the same time,
following the balance sheet reset, improved control structures, and a
stronger focus on selected value drivers, we see an improved foundation for
a potential revaluation. Based on our optimistic adjusted NAV model, we
therefore assign a BUY rating with a price target of EUR2.00.

You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=148adde774e8e580214409a83eca299a

Contact for questions:
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Disclosure of potential conflicts of interest pursuant to Section 85 of the
German Securities Trading Act (WpHG) and Article 20 of the Market Abuse
Regulation (MAR) The following potential conflict of interest exists in
relation to the company analysed above: (5a,11); A list of potential
conflicts of interest can be found at: https://www.gbc-ag.de/de/Offenlegung
+++++++++++++++
Completed: July 21, 2026 (2:00 p.m.)
First release: July 22, 2026 (11:00 a.m.)

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2369360 22.07.2026 CET/CEST

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