Half Yearly Earnings Report S1-2025 (audited)

Lleida, October 20, 2025

Relevant Event:

Comparison with the 2025 half-year data advance, presentation of the limited review

report and consolidated interim financial statements.

In accordance with the provisions of Article 17 of Regulation (EU) No. 596/2014 on market abuse, Article 227 of the consolidated text of the Securities Market Law approved by Royal Legislative Decree 6/2023 of March 17, and related provisions, as well as Circular 3/2020 of BME Growth of BME MTF Equity, the following information is made available to the market concerning Lleidanetworks Serveis Telemàtics, S.A. (the "Company" or "Lleida.net" or the "Group").

On July 27, 2025, the Company published, via a Relevant Event, a preliminary report on the main consolidated income statement and debt figures of the Company. This preliminary report was prepared based on the accounting information available at that time.

As of today, this information is complemented with the following documents:

• Limited Review Report and Consolidated Interim Financial Statements as of June

  30, 2025.

• Balance sheet and income statement of the parent company as of June 30, 2025. We remain at your disposal for any clarification you may deem appropriate.

  Sincerely,

  Francisco Sapena Soler

  Chief Executive Officer of Lleida.net

  Firmado digitalmente por 40897755Y FRANCISCO JOSE SAPENA (R: ESA25345331)

  
  
  

  Fecha: 2025.10.19

  12:58:26 +02'00'

  Lleida.net Group Results Report for the First Half of 2025

  On July 27, 2025, the Lleida.net Group published an advance of results based on provisional

  data available at that time.

  After the company's auditors' review, the differences between the advance and the data included in the consolidated financial statements approved by the Board of Directors are attached.

  Data in Thousand of Euros	HR 2025	Audit 2025	Var. €	Var.%
  Sales	10.134	10.134	0	0%
  Sales cost	(4.401)	(4.401)	0	0%
  Gross Margin	5.733	5.733	0	0%
  Personnel Expenses	(2.893)	(2.893)	0	0%
  External Services	(1.177)	(1.177)	0	0%
  Capitalisations	532	532	0	0%
  EBITDA	2.195	2.195	0	0%
  Other income	10	10	0	0%
  Depreciation	(1.026)	(1.026)	0	0%
  Other Result	(24)	(24)	0	-
  Operating Earnings	1.155	1.155	0	0%
  Net Financial Debt	(80)	(81)	(1)	-1%
  Impairment and Earning for disposal	-	1	1	-
  Exchanges Rate Differences	(138)	(105)	(33)	-24%
  Pre-Tax Earnings	937	970	33	4%

  The variations are not significant compared to the data presented in the advance and are

  mainly explained by a recalculation of consolidated exchange rate differences.

  Data in Thousand of Euros	2024 (6 month)	2025 (6 month)	YoY. €	YoY.%
  Sales	9.576	10.134	558	6%
  Sales cost	(4.533)	(4.401)	132	-3%
  Gross Margin	5.043	5.733	690	14%
  Personnel Expenses	(2.840)	(2.893)	(53)	2%
  External Services	(1.333)	(1.177)	156	-12%
  Capitalisations	518	532	14	3%
  EBITDA	1.388	2.195	807	58%
  Other income	46	10	(36)	-78%
  Depreciation	(1.041)	(1.026)	15	-1%
  Other Result	(4)	(24)	(20)	-500%
  Operating Earnings	389	1.155	766	197%
  Net Financial Debt	(114)	(81)	33	-29%
  Impairment and Earning for disposal		1	1
  Exchanges Rate Differences	(14)	(105)	(91)	650%
  Pre-Tax Earnings	261	970	709	272%
  Profit Tax	51	(71)	(122)	-239%
  Financial Year´s Earning	312	899	587	188%

  During the first half of 2025, consolidated sales reached €10.13 million, representing 6% growth compared to the same period of the previous year (+€558 thousand). This result reflects the strong performance of the main business lines, driven by commercial expansion and the consolidation of digital service offerings.

  The half-year results show a clearly positive balance, with widespread growth across major business lines and sustained progress in overall sales. The Company continues to strengthen its market position through service diversification, customer trust, and the ability to adapt to technological needs in the business environment.

  Sales by business Line (Thousand Euros) Contractig	2024 (6 month) 2025 (6 month) 1.588 1.955		YoY. € 367	YoY.% 23%
  Notification	1.032	1.150	118	11%
  Other SaaS	1.513	1.364	-149	-10%
  SMS Solutions	1.765	2.121	356	20%
  ICX Wholesale Solutions	3.678	3.544	-134	-4%
  Total	9.576	10.134	558	6%

  Performance by Business Line

• Contracting: This line consolidated as one of the most dynamic, growing 23% compared to the same period last year. Sales rose from €1.59 million in 2024 to

  €1.96 million in 2025, driven by increased adoption of electronic contracting services and corporate customer loyalty. Technological innovations in this line have improved product adaptation to customer needs, reinforcing it as one of the areas with the greatest growth potential.

• Notification: Maintained a very favorable trend, growing 11% to €1.15 million in sales. This result reflects the strength and maturity of the certified notification business, reinforced by the enactment of Law 1/2025, which boosted the adoption of these solutions as a valid and secure electronic communication method. Growth is also supported by market confidence, expansion into new sectors, and ongoing innovation in services offered.

• Other SaaS: Although slightly moderated compared to the previous year, this line

  remains a key pillar of the technological solutions portfolio. Sales amounted to

  €1.36 million, underscoring its strategic role. The decline mainly stems from phone validation services, while other SaaS products remain stable. The line is expected to strengthen in upcoming periods with the launch of new services such as timestamping and hybrid projects, enhancing value and market adaptability.

• SMS Solutions: Recorded significant growth of 20%, reaching €2.12 million. This result highlights the efforts of the commercial team, with higher message volumes and greater client and use diversification.

• ICX WHOLESALE Solutions: Maintained solid levels, with €3.54 million in revenue, demonstrating the Company's ability to sustain its leadership in international message traffic and wholesale services within a competitive, evolving environment.

Gross margin increased 14% to €5.73 million, reflecting improved revenue structure and efficient control of direct costs. This growth is largely due to a change in the sales mix, with higher contributions from more profitable lines such as Contracting and Notification, which showed the strongest growth.

The gross margin over sales rose from 52.7% in 2024 to 56.6% in 2025, evidencing improved operational profitability and optimization of the business model.

Personnel expenses remained nearly stable (+2%), while external services decreased by 12%, reflecting greater operational efficiency and resource optimization. This continues the trend from previous years, with detailed analysis of each cost line and its efficiency and value-added return, enabling a more rational resource allocation.

During the first half of 2025, the average workforce stood at 123.98 employees, compared to 129.52 in the same period of 2024. This slight reduction results from organizational optimization and internal process automation, allowing for maintained activity and improved results without affecting operational capacity. These actions directly contributed to increased productivity and overall efficiency, strengthening competitiveness in a context of sustained growth.

As a result, EBITDA increased by 58%, reaching €2.19 million, the highest level in recent years. EBIT amounted to €1.16 million, a 197% increase, demonstrating the Group's ability to translate growth into profitability.

Profit before tax stood at €970 thousand, compared to €261 thousand in 2024, representing a 272% increase.

As of June 30, 2025, the Lleida.net Group's consolidated balance sheet shows total assets of €16.7 million, compared to €17.5 million at the end of 2024, a 4% reduction.

Non-current assets decreased by 2% (from €11.1 million to €10.8 million), mainly due to goodwill amortization recorded during the period. However, the Group continued its innovation investment policy, capitalizing €532 thousand in RCD projects during the semester. Deferred tax assets increased by 7%.

Current assets decreased by 8% to €6 million, mainly due to a reduction in trade

receivables, short-term accruals, and cash equivalents.

Consolidated equity increased 24% to €5.0 million, driven by a 22% rise in shareholders' equity and improved currency translation differences.

Total liabilities decreased by 12%, with reductions in both non-current liabilities (-18%, mainly due to long-term debt reduction) and current liabilities (-11%), notably in provisions and short-term debt.

This balance evolution reflects an improved financial structure for Lleida.net Group, with reduced leverage and strengthened equity, resulting in a more solid and balanced position to face future periods.

In the July 27, 2025 preliminary report, a net financial debt of €6.293 million was reported, differing by €3 thousand from the figures included in the half-year accounts. Net financial debt represents 1.43 times the annualized EBITDA, compared to 2.29 times at the end of 2024.

(Translation of the report originally issued in Spanish.

In the event of discrepancy, the Spanish Language version prevails)

INDEPENDENT AUDIT REPORT ON CONSOLIDATED ANNUAL ACCOUNTS

To the Shareholders of LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A.

Introduction

We have reviewed the interim consolidated financial statements of LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. (Parent Company) and its subsidiaries (the Group), which comprise the consolidated balance sheet as at June 30, 2025, the consolidated income statement, the consolidated statement of changes in equity, the consolidated cash-flow statement and the notes to the interim consolidated financial statements for the six-month period then ended. The directors of the Parent Company are responsible for the preparation and fair presentation of the interim consolidated financial statements in accordance with the regulatory framework of financial information applicable to the Group in Spain, as identified in Note 1.1 of the accompanying notes to the interim consolidated financial statements, and of the internal control deemed necessary to enable the preparation of the interim consolidated financial statements free of material misstatements, whether due to fraud or error. Our responsibility is to express a conclusion on these interim consolidated financial statements based on our limited review.

Scope of review

We have performed our limited review in accordance with the International Standard on Review

statements consists of making inquiries primarily to persons responsible for financial and accounting matters and applying analytical procedures and other review procedures. A limited review has a substantially lower scope than an audit conducted in accordance with the regulations governing the auditing of accounts and, therefore, does not enable us to obtain assurance that we would become aware of all significant matters than might be identified in an audit. Therefore, we do not express an audit opinion on the interim consolidated financial statements.

Conclusion

Based on our limited review, which cannot be understood as an audit, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements do not present fairly, in all material respects the true and fair view of the consolidated equity and consolidated financial position of LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. and subsidiaries, as of June 30, 2025, as well as its consolidated results and its consolidated cash-flows for the six-month period then ended, in accordance with the applicable financial information regulatory framework and, in particular, with the accounting principles and criteria contained therein.

PKF ATTEST Servicios Empresariales, S.L. Paseo Miraconcha, 25 20007 DONOSTIA

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º 48009 Bilbao - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271 Registered in ROAC (Spanish Official Register of Auditors) under No.S1520. Registered in ICJCE (Instituto de Censores Jurados de Cuentas de España)

PKF ATTEST is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s).

Other matters

This report has been prepared at the request of the Board of Directors of LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. in connection with the publication of the six-month period financial report required by the Circular 2/2022

PKF ATTEST Servicios Empresariales, S.L.

Registered in ROAC (Spanish Official Register of Auditors) under No. S1520

Zigor Bilbao Acedos

Registered in ROAC (Spanish Official Register of Auditors) under No. 21.844

October 17, 2025

2

PKF ATTEST Servicios Empresariales, S.L. Paseo Miraconcha, 25 20007 DONOSTIA

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º 48009 Bilbao - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271 Registered in ROAC (Spanish Official Register of Auditors) under No.S1520. Registered in ICJCE (Instituto de Censores Jurados de Cuentas de España)

PKF ATTEST is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s).

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON JUNE, 30TH2025 TOGETHER WITH THE INDEPENDENT LIMITED REVIEW REPORT ON THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(TRANSLATION FROM THE INTERIM FINANCIAL STATEMENTS TO BE ISSUED ORIGINALLY IN SPANISH AND PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN SPAIN. IN THE EVENT OF A DISCREPANCY, THE SPANISH-LANGUAGE VERSION PREVAILS)

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

Interim Consolidated Financial Statements and Consolidated Directo

Report for the period ended on June, 30th 2025 together with the Independent Auditor's Report on the Interim Consolidated Financial Statements

LIMITED REVIEW AUDIT REPORT ON THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND NOTES FOR THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2025:

Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024

Consolidated Income and Expenses Statement for the six-month period ended on June 30, 2025 and the six-month period ended on June 30, 2024.

Consolidated Statements of Changes in Equity for the six-month period ended on June 30, 2025 and for the six-month period ended on June 30, 2024.

Consolidated Statements of Cash Flows for the six-month period ended on June 30, 2025 and the six-month period ended on June 30, 2024.

Notes to the Consolidated Interim Financial Statements as of June 30, 2025.

CONSOLIDATED

REPORT FOR THE SIX-MONTH PERIOD ENDED ON JUNE 30th 2025

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2025 AND DECEMBER 31, 2024

(Expressed in Euros)

LLEIDANETWORKSSERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2025 AND DECEMBER 31, 2024

(Expressed in Euros)

LLEIDANETWORKSSERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

CONSOLIDATED INCOME AND EXPENSES STATEMENT FOR THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2025

AND THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2024

(Expressed in Euros)

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

A) CONSOLIDATED STATEMENTS OF RECOGNISED

INCOME AND EXPENSE FOR THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2025 AND THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2024

(Expressed in Euros)

Interim Consolidated Financial Statements of Group Lleidanetworks Serveis Telemâtics, S.A. and Subsidiariesfor the six-month period ended on June 30, 2025 5

LLEIDANETWORKS SERVEIS TELEMATICS, S.A. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX-MONTH PERIOD

ENDED ON JUNE 30, 2025 AND THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2024

(Expressed in euros)

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2025 AND THE SIX-MONTH PERIOD ENDED ON JUNE 30, 2024

(Expressed in Euros)

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AS OF JUNE 30, 2025

NOTE 1. INCORPORATION, ACTIVITIES AND LEGAL SYSTEM OF THE PARENT COMPANY

1. Incorporation and registered Office of the Parent Company

   LLEIDANETWORKS SERVEIS TELEMÀTICS, S. A. (hereinafter "the Company"), was incorporated in Lleida on 30 January 1995. On 26 October 2021, the board of directors resolved to transfer the company's registered office to Calle Téllez, 56 Local C in Madrid. Previously, its registered office was located in the Agroalimentari Scientific and Technological Park of Lleida, Building H1, Floor 2, in Lleida.

   On June 30, 2011, the General Shareholders' Meeting resolved the transformation from a Limited Company to a Public Limited Company. On December 12, 2011, the agreement reached at the aforementioned meeting was submitted to the Mercantile Registry on February 17, 2012.

2. Activity of the Parent Company

   Its activity consists in acting as a teleoperator for short message management services (SMS) over the Internet, as well as any other activity related to the aforementioned corporate purpose.

3. Legal System of the Parent Company

   Parent Company is governed by its Articles of Association and by the current Corporate Enterprises Act.

4. Financial Year and Date of the Latest Annual Accounts

   The financial year of the Parent Company begins on 1 January and ends on 31 December of each year. The latest annual accounts prepared by the Parent Company correspond to the financial year ended 31 December 2024.

5. Quotation in Stocks Markets

On 1 June 2015, the Parent Company approved at the General Shareholders' Meeting the application to list all the shares of the Parent Company on the Alternative Equity Market (MAB), currently called BME Growth, of all of the Parent Company's shares.

On October 7, 2015, the Board of Directors of Bolsas y Mercados Españoles, Sistemas de Negociación, S.A., approved to incorporate 16.049.943 shares into the expanding companies segment of the Mercado Alternativo Bursátil with effect from October 9, 2015 of 0,02 euros nominal value each. The Parent Company currently has Solventis A.V., S.A. appointed as liquidity provider and Registered Advisor. On December 19, 2018, the Parent Company began trading under the dual listing modality on Euronext Growth Paris, with Invest Securities being the Listing Sponsor and Liquidity Provider. On November 2, 2020, the Company began trading on the OTCQX market in New York.

1.1) Group Companies

The Parent Company holds, directly, investments in different national and international companies, and controls, directly, these companies. On January 1st, 2016 the first consolidation of the Group Companies was carried out.

The main activity of the subsidiaries consists of the provision of telecommunications services, software development, the sending of text messages and emails, and the provision of services related to the study and analysis of computer processes in general.

Companies included in the Consolidation Perimeter

The breakdown of the Companies included in the consolidation perimeter as of June 30, 2025 is the following:

Cost of Holding Impairment of the Net amount of the Direct or Indirect Indirect Holding in euros participation in euros participation in euros Percentaje ofHolding Holding Applied Method of consolidation Group Lleidanetworks Serveis Telemiitics, S.A.

The breakdown of the Companies included in the consolidation perimeter as of December 31, 2024 is the following:

Lleida Information Technology Network Services has been included in the scope of consolidation using the full consolidation method, as it is considered that the parent company exercises control over its management through existing agreements between the partners.

The financial year of the Subsidiaries begins on 1st of January and ends on 31st of December of each year. The last Annual Accounts of the Subsidiaries drawn up correspond to the financial year ended on December 31, 2024.

During the 2025 financial year, there was a change in the consolidation perimeter as a result of the closure of the subsidiary in Costa Rica. This company ceased its operations and was excluded from the scope of consolidation as from the effective closing date, 8 May 2025.

the aim of focusing operations on the most strategic and profitable markets. This change does not have a significant impact on the consolidated f

the limited contribution of the subsidiary to the consolidated figures.

Detail of activities and registered office of the Subsidiaries included in the perimeter of consolidation as of June 30, 2025, is indicated below:

Lleidanetworks Serveis Telemàtics, LTD

Incorporated on December 28, 2005 in Dublin, with its registered office in Birchin Court 20, Birchin Lane London (United Kingdom). Its main activity is as operator.

Lleidanet USA Inc.

Incorporated on May 12, 2009 and its registered office is at 2719 Hollywood Boulevard Street 21 FL33020, Hollywood. Its main activity is as operator.

Lleidanet Honduras, S.A.

Its registered office in Tegucigalpa (Honduras), it was incorporated on January 11, 2012 subscribing, Lleidanetworks Serveis Telemàtics, S.A., 175 shares out of a total amount of 250 that were issued. Its main activity consists on being SMS operator, based on an interconnection network with the fixed and mobile operations of the Republic of Honduras.

Lleidanet Dominicana, S.R.L.

Headquartered in Tetelo Vargas Street 12, Santo Domingo (Dominican Republic), was incorporated on June 26, 2012.

Lleida SAS

With its registered office in Calle 70 nº4, Bogotá (Colombia), it was incorporated on November 16, 2012 Lleida Chile SPA

With its registered office in Santiago (Chile), it was incorporated on March 12, 2013. Its main activity is based on the provision, organization and commercialization of telecommunications services.

Lleidanet do Brasil Ltda

With registered office at Rua Tabapua 72, Sao Paulo (Brazil), it was incorporated on October 2, 2013. Its main activity is based on the provision of telecommunications services, program development, sending of text and email messages and the provision of study and analysis services of computer processes in general.

Lleidanet Guatemala, Sociedad Anónima

With its registered office in Guatemala (Guatemala), it was incorporated on November 7, 2013. Its main activity is the provision, organization and commercialization of telecommunication services and activities such as mobile messaging services (SMS and MMS), carriers, etc., the creation, generation and exploitation of information and communication technologies and the provision of consulting and advisory services on these matters.

Portabilidades Españolas, S.A.

Incorporated on December 4, 2015, with registered office at Parque Tecnológico de Gardeny Edificio H, Lleida. Its corporate purpose is the marketing of services based on number portability data to telecommunications operators for the routing of telephone traffic and short text messages.

Lleidanet Costa Rica Empresa Individual de Responsabilidad Limitada

On March 31, 2016, the Parent Company acquires D. Francisco José Sapena Soler 100% of this Company for the amount of 16,06 euros. Its main activity is the provision, organization and commercialization of telecommunication services and activities such as mobile messaging services (SMS and MMS), carriers, etc., the creation, generation and exploitation of information and communication technologies and the provision of consulting and advisory services on these matters. The company was dissolved on May 8, 2025.

Lleidanet Perú

With registered office at Cañon del Pato No. 103, Lima (Peru).

Its main activity is based on the provision, organization and marketing of telecommunications services and activities such as mobile messaging services (SMS and MMS), carriers, etc., the creation, generation and exploitation of information and communication technologies, and the provision of consulting and advisory services on these matters.

Lleida Information Technology Network Services

On October 1, 2020, the Company establishes the company in the United Arab Emirates together with the partner Adil Ismail Ali Al Fahem, with a share capital of 300 shares of which 147 are subscribed by Lleidanetworks Serveis Telemàtics, S.A. and that correspond to 49% of the capital stock of the incorporated company.

Lleidanet PKI, S.L.

On November 30, 2021, the Parent Company has acquired 100% of the shares of the company Lleidanet PKI, S.L. for a cost of 7.100.000 euros. On April 19, 2024, the Company changes its corporate name to Lleidanet PKI, S.L. replacing the previous corporate name Indenova, S.L.U.

Lleida Networks India Private Limited

With its registered office in New Delhi (India), it was incorporated on January 7, 2013. Its main activity is the establishment of a telecommunications operator in India, as well as providing VAS services, including SMS, MMS, UMS, and other types of messaging.

NOTE 2. PRESENTATION BASIS OF INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1. Financial Reporting Framework Applicable to the Group

   These annual accounts have been prepared by the Directors of the Company in accordance with the financial reporting framework applicable to the Group, which comprises the following:

   1. The Spanish Commercial Code and other applicable commercial legislation.

   2. The Spanish General Chart of Accounts approved by Royal Decree 1514/2007, together with its subsequent amendments and adaptations.

   3. The mandatory accounting standards issued by the Spanish Institute of Accounting and Auditing (ICAC) in the development of the General Chart of Accounts and related supplementary regulations.

   4. Royal Legislative Decree 1/2010 of 2 July, approving the Consolidated Text of the Spanish Companies Act.

   5. Any other applicable Spanish accounting regulations.

2. Presentation Currency and Functional currency

   In accordance with the applicable laws and regulations on accounting, the Interim Consolidated Financial Statements are expressed in euros. The euro is the functional currency of the Parent Company and all other companies except those listed below:

   • Lleidanet USA Inc: US dollars (USD)

   • Lleidanet Honduras, SA: Honduran lempira (HNL)

   • Lleidanet Dominicana, SRL: Dominican peso (DOP)

   • Lleida SAS: Colombian peso (COP)

   • Lleida Chile SPA: Chilean peso (CLP)

   • Lleidanet do Brasil Ltda: Brazilian real (BRL)

   • Lleidanet Guatemala: Guatemalan quetzal (GTQ)

   • Lleidanet Perú: Peruvian sol (PEN)

   • Lleida Information Technology Network Services; Dirham (AED)

   • Lleidanet India: Indian rupee (INR)

3. Critical Aspects of Uncertainties Valuation and Estimation

   In preparing the accompanying consolidated interim financial statements, estimates were made by the Parent Company's Board of Directors in order to measure certain of the assets, liabilities, income and expenses reported herein. The estimates and judgements relate to:

   • Reasonableness of capitalisation and recoverability of research projects.

   • Reasonableness of the recognition and recoverability of goodwill arising from the acquisition of Lleidanet PKI, S.L.

   • Reasonableness of the recognition and recoverability of deferred tax assets

   Although these estimates have been made on the basis of the best information available at the end of the six months ended 30 June 2025, it is possible that events that may occur in the future may make it necessary to modify (upwards or downwards) in future years, which would be done prospectively, recognising the effects of the change in estimate in the corresponding profit and loss account consolidated.

   In November 2021, following the acquisition of the company Lleidanet PKI, S.L., goodwill amounting to 4,7 million euros was recognized. The main assets of Lleidanet PKI are intangible assets, as reflected in its balance sheet. Lleidanet PKI enjoys strong brand recognition both nationally and internationally, and has a recurring customer base that values its services. Its R&D developments will enable new applications of its services

   strategy. The company has key personnel who remain within the Lleida.net Group; they are members of the management committee and contribute to achieving the objectives set by the Board of Directors of the Parent Company. The acquisition of Lleidanet PKI has also generated sales synergies, as Lleidanet PKI and
   
   
   
   
   

   net PKI can expand

   The Board of Directors of the Parent Company has carried out an analysis of the recoverability of the consolidated goodwill, using cash flow projections based on the sales forecasts for the 2025

   2028 period. According to Management, these projections are based on the 2025 budget, its degree of achievement at the date of preparation of these Consolidated Annual Accounts, and the best estimates of Management regarding the business outlook through 2028 for the purpose of the impairment test as of 30 June 2025. Sales growth has been estimated at 8,8%, 16,7%, 14,2%, and 14%, respectively, for each of the four subsequent years. Cash flows have been discounted using the post-tax weighted average cost of capital (WACC). The discount rate applied was 10,64%, and a perpetual growth rate of 2% was used.
   
   

   In light of the foregoing, the Board of Directors of the Parent Company has not considered it necessary to record any impairment of the goodwill, based on the expected positive cash flow generation of the acquired subsidiary in the coming years.

   Negative working capital

   As at 30 June 2025, the Group had negative working capital of 2,7 million euros (negative working capital of 3,3 million euros as at 31 December 2024). Considering the expected cash flows for the coming years, the Directors do not believe that this circumstance will cause financial or liquidity problems for the Group.

4. Comparison of the Information

   In accordance with commercial legislation, the Board of Directors presents, for comparative purposes with each of the balance sheet items, in addition to the figures at 30 June 2025, the figures for the previous year. It also presents, for comparative purposes with each of the items in the consolidated income statement, the consolidated statement of changes in equity and the consolidated cash flow statement, in addition to the figures for the six months ended 30 June 2025, the figures for the six months ended 30 June 2024.

   In the accompanying notes to the financial statements, the figures as of 30 June 2025 are presented together with those for the previous financial year, as included in the notes relating to the balance sheet figures.

   Likewise, in addition to the figures corresponding to the six-month period ended 30 June 2025, the comparative figures for the six-month period ended 30 June 2024 are also included, with respect to the information presented in the income statement.

   The items for both years are comparable and homogeneous.

5. Changes in accounting criteria

   No changes in accounting policies have been made.

6. Correction of Errors

   The Interim Consolidated Financial Statements for the period ended as of June 30, 2025 do not include related adjustments because of errors detected in previous years' annual accounts or financial statements.

7. Relative importance

In determining the information to be disclosed in these consolidated financial statements on the various items in the financial statements or other matters, the Company, in accordance with the Conceptual Framework of the General Accounting Plan, has taken into account the relative importance in relation the consolidated financial statements for the six-month period ended 30 June 2025.

NOTE 3. RECOGNITION AND VALUATION STANDARDS

The principal valuation standards used by the Group in the drafting of its Interim Consolidated Financial Statements on June 30, 2025, in accordance with those established by the General Accounting Plan, were as follows:

1. Consolidation Principles

   The consolidation of the Financial Statements of Lleidanetworks Serveis Telemàtics, S.A. with the Financial Statements of its investee companies mentioned in Notes 1.1 and 2, was carried out using the following methods:

   1. Application of the global integration method for all subsidiaries, i.e. those over which it as effective control.

   2. Application of the equity method as equivalence for associated companies, i.e. those over which a notable influence is exercised in terms of management but in which there is no majority vote or joint management with third parties.

      The consolidation of the operations of Lleidanetworks Serveis Telemàtics, S.A. with those of the subsidiaries was performed according to the following basic principles:

      • The criteria used in formulation of the Balance Sheets, the Profit and Loss Account and the Statement of Changes in Equity and Cash-Flow Statements for each one of the consolidated companies are, generally, and in their basic aspects, homogenous.

      • The Consolidated Balance Sheet, the Consolidated Profit and Loss Account, the Consolidated Statement of Changes in Equity and Consolidated Statements of Cash Flow include all adjustments and eliminations of the consolidation process, as well as relevant valuation homogenizations to reconcile balances and transactions between the consolidating companies.

      • Balances and transactions between consolidated companies were eliminated in the consolidation process.

      • The deletion of Subsidiary equity investment was conducted by compensating the shareholding of the Parent Company with the proportional part of the net equity of the subsidiaries which is represented by the shareholding on the date of the first consolidation. The first consolidation differences were treated as follows:

        1. Positive differences which cannot be allocated to the equity elements of the Subsidiaries were included in the "Consolidation Goodwill" heading of the Consolidated Balance Sheet. The impairment losses must be recognized in the Consolidated Profit and Loss Account and are irreversible.

        2. Negative differences arising on first-time consolidation: in the exceptional case that the difference is negative, such excess is recognized as income for the year in the consolidated income statement, or as reserves of the Parent Company. However, before recognizing such income, the amounts giving rise to this difference are reviewed and reassessed.

      • The consolidated income for the financial year shows the part that may be attributed to the Parent Company, comprised of the income obtained by the latter plus the corresponding part, by virtue of the financial shareholding, of the income obtained by the invested companies

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        

      • The shareholding value of the minority interests in the equity and the attribution of income in the Consolidated Balance Sheet. The value breakdown of these shareholdings is presented in Note 4.

   Conversion difference

   The conversion of the annual accounts of companies whose functional currency is not the euro, where applicable, is carried out in accordance with the following rules:

   Assets and liabilities are converted to euros at the exchange rate in force on the closing date of the consolidated financial statements.

   Income statement items are converted using the average exchange rate for the financial year. Equity items, including profit or loss for the year, are translated at the historical exchange rate.

   The difference between the net amount of assets and liabilities and equity items is recognised in the consolidated balance sheet under "Value adjustments - Translation differences of consolidated companies", net of any tax effect, and after deducting the portion corresponding to external partners.

   Consolidation goodwill and adjustments to the fair values of assets and liabilities arising from the application of the acquisition method, if any, are considered elements of the acquired company and are therefore converted at the closing exchange rate.

   Cash flows are converted at the exchange rate on the date of each transaction or using a weighted average exchange rate for the period, provided there are no significant variations.

2. Intangible Fixed Assets

   Assets included in intangible fixed assets are valued by their cost, whether purchase price or production cost, reduced by the corresponding accumulated amortization and losses from any impairment which, where appropriate, has occurred.

   The depreciable amount of an intangible asset is allocated on a systematic basis over its useful life. The amortisation charge for each period is recognised in profit or loss.

   Research and Development Costs

   Research Expenses

   Capitalized research and development costs are specifically individualized for projects and their costs are clearly established so they can be spread over time. Similarly, Management the Group has substantial grounds for expecting the technical success and the financial and commercial profitability of these projects

   Research and development costs that appear as assets are amortized on a straight-line basis over their useful life, at an annual rate of 20%, and always within a period of 5 years.

   As soon as there are reasonable doubts over the technical success or financial and commercial profitability of a project, the values recorded in the asset that apply to it are directly allocated to the financial year's losses.

   Development Expenses

   Development expenses incurred during the year are capitalized when all of the following conditions are met:

   • There is a specific and clearly identifiable project that allows reliable measurement of the expenditure attributable to the project.

   • The allocation, attribution, and timing of costs for each project are clearly established.

   • At all times, there is well-

     Company intends to use it internally or sell the results to a third party once completed, provided a market exists.
     
     

   • The economic and commercial profitability of the project is reasonably assured.

   • Financing for the various projects is reasonably assured to complete their development. In addition, there is assurance of the availability of adequate technical and other resources to complete the project and to use or sell the intangible asset.

   • There is an intention to complete the intangible asset in question for its use or sale.

     Compliance with all of the above conditions is verified throughout the periods during which the project is carried out, and capitalization begins from the moment these conditions are fulfilled.

     Expenditures initially recognized as expenses for the year that subsequently meet the above conditions are not capitalized under any circumstances.

     Research and development projects commissioned to other companies or institutions are valued at their acquisition cost.

     
     
     

     all directly attributable costs necessary to create, produce, and prepare the asset to operate as intended. These include, in particular:

   • Personnel costs directly related to research and development activities,

   • Costs of raw materials, consumables, and services used directly in the R&D project,

   • Depreciation of fixed assets directly assigned to the R&D project, and

   • A reasonable portion of indirect costs attributable to the R&D activities.

   Idle capacity costs and general overheads of the Company are not charged to research and development projects. For research projects that have been capitalized upon meeting the required criteria, financial expenses are not capitalized, even if the projects last for more than one year.

   Cost allocation to development projects is carried out until the completion of the project, provided there is certainty of its technical and economic success.

   Capitalized development expenses are amortized on a systematic basis over their useful life, which does not exceed five years, beginning from the date the project is completed. The amount of these capitalized expenses does not include any research expenses.

   Computer Applications

   Licenses for computer applications purchased from third parties are capitalized on the basis of the costs incurred for purchasing. Computer applications are amortized on a straight-line basis throughout their useful lives, at an annual rate of 33%.

   Maintenance expenses for computer applications incurred during the financial year are recognized in the Consolidated Profit and Loss Account.

   Industrial Property

   Corresponds to the capitalized development expenses for which the relevant patent or similar has been obtained and includes the registration and formalization costs for the industrial property, as well as the costs for purchasing the corresponding rights from third parties.

   During all these years, the Group has been able to develop methods and unique technologies in its sector by continuous investment in research and development. The result of this effort has been the publication of patents at European, American and PCT levels, putting in value the effort developed during these last years. These patents allow the Group to license this technology to third parties and protect it against possible copies of other actors in the sector, less scrupulous when creating original models.

   Consolidation Goodwill

   Consolidation goodwill is recognised as an asset when its value is evident as a result of a costly acquisition in the context of a business combination. Its amount is determined in accordance with section m) of this Note and is allocated from the acquisition date to each of the Group's cash-generating units that are expected to benefit from the synergies of the business combination .

   Consolidation goodwill arising from business combinations represents the positive difference between the cost of the business combination and the value at the acquisition date of the assets acquired, liabilities and contingent liabilities assumed from the acquired business, as set out in section m) (business combinations).

   After initial recognition, consolidation goodwill is measured at its acquisition cost less accumulated amortisation and, where applicable, the accumulated amount of any impairment losses recognised.

   Consolidation goodwill is amortised over its useful life. The useful life is determined separately for each cash-generating unit to which goodwill has been allocated. Unless there is evidence to the contrary, it is assumed that the useful life of goodwill is a maximum of ten years and that its recovery is linear.

   In addition, at least annually, an analysis is performed to determine whether there are any indications of impairment of the cash-generating units to which consolidation goodwill has been allocated, and, if there are any, their possible impairment is checked in accordance with the section "Impairment of intangible and tangible fixed assets" in this Note, and the corresponding valuation adjustment is recorded, if applicable.

   Impairment adjustments recognised in consolidation goodwill are not reversed in subsequent years.

3. Tangible Fixed Assets

Tangible fixed assets are valued by their acquisition price or production cost, net of the corresponding accumulated amortization and, where appropriate, of the accumulated value of the recognized allowances for impairment.

Repair and maintenance expenses incurred during the financial year are debited in the Consolidated Profit and Loss Account. Costs for renovating, extending or improving intangible fixed assets, representing an increase in capacity, productivity or lengthening of useful life, are capitalized as a higher value of the corresponding assets, once the book values of the replaced items have been de-recognized.

Tangible fixed assets, net of their residual value, where appropriate, are amortized by a straight-line-basis distribution of the various items that constitute these fixed assets over the years of estimated useful life making up the period in which the Group hopes to use them, according to the following table: