Individual and consolidated annual audit 2025

Lleida, 8th April 2026

Other Relevant Event LLEIDANETWORKS SERVEIS TELEMÀTICS S.A.

Overview of 2025 Data Consolidated Accounts and Audit Presentation, Parent Company Individual Accounts and Audit Presentation, and Organizational Structure Presentation.

Under the provisions of Article 17 of the Regulation (EU) No 596/2014 regarding market abuse and Article 228 of the modified text of the Spanish Stock Market Act, approved by Spanish Royal Legislative Decree 4/2015 of 23 October and related provisions, as well as Circular 3/2020 of BME MTF Equity, we are hereby informing you of the following information relating to LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. ("Lleida.net", the "Company", or the "Group") :

On 19TH February 2026, the Company published a Relevant Event, a preview of the Company's leading figures for P&L and consolidated debt. This preview was drawn up based on the available accounting information.

As of today, the following documents are provided and attached to this PDF file to complement that information:

• Audit Report and Consolidated Annual Accounts for 2025

• Audits Report and Individual annual accounts for the financial year 2025.

• Report on Organisational Structure and Internal Control System.

• Excel file with the financial data.

We are available for any clarifications needed.

Sincerely,

Francisco Sapena Soler CEO of Lleida.net

Highlights from the Lleida.net Group's 2025 financial year

On February 19, 2026, Lleida.net Group released preliminary unaudited results based on provisional figures. Following the audit of the company's accounts, we now provide a reconciliation between the preliminary figures and those formally approved by the Board of Directors in the audited consolidated financial statements.

Figures in thousands of euros consolidated Preliminary Relevant Event Audited 2025 Var. € Var.%

The differences between the preliminary and final figures are not significant and are mainly due to higher provisions for trade receivables and adjustments to other results.

The main variations compared to the 2024 financial year figures are as follows:

The Lleida.net Group closed the 2025 financial year with a very positive performance in its main financial metrics, consolidating the improvement in operating profitability and strengthening its business model.

Sales per business line Thousands Euros

2024 2025 Var. € Var.%

Revenue reached 19.323 thousand euros, representing an increase of 1% compared to the previous year. This growth is supported by the strong performance of the main business lines, particularly SMS Solutions, which grew by 12% to 4.215 thousand euros, and Notification, which increased by 17% to 2.386 thousand euros.

Likewise, the Contracting line maintained a positive trend with growth of 3%. Meanwhile, ICX Wholesale Solutions showed a slight decrease of 2%, while Other SaaS recorded a one-off adjustment, reflecting the ongoing optimisation of the service portfolio. Overall, the diversification of the business and the momentum in higher-growth areas reinforce the strength of the Group's revenues.

This commercial performance, together with improved operational efficiency, has enabled the gross margin to increase to 10.612 thousand euros, 4% higher than in 2024, supported by a 2% reduction in cost of sales.

It is worth highlighting the significant improvement in the cost structure, particularly in external services, which decreased by 14%, while personnel expenses remained stable, reflecting appropriate cost control. Likewise, capitalised costs increased by 4%, contributing positively to value generation.

As a result of all the above, EBITDA increased significantly to 4.046 thousand euros, up 25% from the previous year, demonstrating a clear improvement in the ability to generate operating results.

Operating profit reached 1.635 thousand euros, with a growth of 49%, driven both by the improvement in EBITDA and by the favourable performance of other results, which turned positive during the year. Despite the increase in depreciation and in impairment losses and provisions, the strength of the business has made it possible to maintain a clearly upward trend in results. Net financial result improved by 15%, reducing its negative impact thanks to the reduction in debt.

As a result, profit before tax amounted to 1.359 thousand euros, 57% higher than in 2024.

Finally, consolidated profit after tax reached 1.245 thousand euros, representing an increase of 41%, reflecting the Group's strong overall performance, the robustness of its operating model, and its ability to significantly improve profitability, thereby laying solid foundations for future growth.

At the balance sheet level, there is a decrease in intangible assets due to the depreciation of goodwill, as well as a lower level of capitalisation in relation to the period's depreciation. The Group continues to invest in R&D, allocating 1 million euros during the period to remain a pioneer in the sector.

The variation in property, plant and equipment corresponds to additions made by the Group to support its future growth.

The increase in deferred tax assets arises from withholdings incurred abroad in the Group's companies; their recovery through corporate income tax will take place over a period exceeding one year. Therefore, the Group has classified them as long-term assets.

Within current assets, trade receivables decreased compared to the previous year, driven by the Group's strict collection policy and provisions made for older balances.

The Group's total available funds (cash and cash equivalents plus short-term financial investments) increased by €167 thousand, supported by the results achieved in 2025.

In equity, the 36% increase is explained by profits generated in 2025 and by foreign currency translation differences.

Trade and other payables decreased by 15%, reflecting the Group's policy of complying with supplier payment terms.

Financial debt decreased from €8.4 million in December 2023 to €7 million, as a result of the regular repayments of the Group's long-term loans.

In the preliminary unaudited cumulative results published on 19 February 2026, net financial debt of €5.7 million was reported, a figure that differs minimally from the figures included in the audited consolidated annual accounts. Net financial debt represents 1.43x EBITDA, compared to

2.29x at the end of the 2024 financial year.

PKF

Attest

LLEIDANETWORKS SERVEIS TELEMATICS, S.A

CONSOLIDATED FINANCIAL STATEMENTS AND CONSOLIDATED DIRECTOR'S REPORT FOR THE 2025 FINANCIAL YEAR TOGETHER WITH THE AUDIT REPORT ON THE CONSOLIDATED ANNUAL ACCOUNTS ISSUED BY AN INDEPENDENT AUDITOR

Translation of a report originally issued in Spanish based on our work performed in accordance with the audit regulations in force in Spain and of consolidated annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Note 2.a). In the event of a discrepancy, the Spanish-language version prevails.

INDEPENDENT AUDIT REPORT ON CONSOLIDATED ANNUAL ACCOUNTS

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

Report on the annual consolidated accounts Opinion

We have audited the consolidates annual accounts of LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. (the Parent Company) and its subsidiaries (the Group), which comprise the consolidated balance sheet as at December 31, 2025, the consolidated income statement, the consolidated statement of changes in equity, the consolidated statement of cash flows and the notes thereto for the year then ended.

In our opinion, the accompanying consolidated annual accounts give a true and fair view, in all material respects, of the consolidated equity and consolidated financial position of the Group as at December 31, 2025, and of its consolidated results and cash flows for the year then ended in accordance with the applicable regulatory financial reporting framework (identified in Note 2.a of the consolidated annual accounts) and, in particular, with the accounting principles and policies contained therein.

Basis for opinion

We conducted our audit in accordance with the audit regulations in force in Spain. Our responsibilities under those standards are further described in the

responsibilities for the audit of the consolidated annual accounts section of our report.

We are independent of the Group in accordance with the ethical requirements, including those related to independence, that are relevant to our audit of the consolidated annual accounts in Spain as required by the audit regulations in force. In this regard, we have not provided services other than those relating to the audit of accounts, and situations or circumstances have not arisen that, in accordance with the provisions of the aforementioned audit regulations, have affected our necessary independence such that it has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated annual accounts of the current period. These matters were addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271

Inscrita en el Registro Oficial de Auditores de Cuentas (ROAC) con el Nº S1520. Inscrita en el Instituto de Censores Jurados de Cuentas de España (ICJCE)

PKF ATTEST es miembro de PKF Global, la red de firmas miembro de PKF International Limited, cada una de las cuales es una entidad legal separada e independiente y no acepta ninguna responsabilidad u obligación por las acciones o inacciones de cualquier miembro individual o firma(s) corresponsal(es).

We have determined that the matter described below is the most significant risk considered in the audit and should be communicated in our report:

Recoverability of capitalised amounts related to Intangible Assets Research and Development and Deferred Tax Assets

As explained in Note 5 of the accompanying consolidated financial statements, as at 31 December 2025, the Group has capitalised cost incurred in research projects, net of the related amortisation,

Intangible assets within non-current assets in the consolidated balance sheet. Furthermore, as disclosed in Note 14 to the accompanying consolidated financial statements, as at 31 December 2025, the Group has recognised an amount of 1,994,27 withing non-current assets in the consolidated balance sheet, corresponding to tax credits arising from certain deductions and tax loss carryforwards available for offset at that date. In addition, as at 31 December 2025, the Group

982,379.76, respectively, which have not been recognised in the consolidated balance sheet, as the Directors of the Parent Company consider that, at that date, the accounting recognition criteria for deferred tax assets are not met. The recoverability of the aforementioned assets is supported by the business plan prepared by the Directors of the Parent Company, which in turn is based on studies, analyses, assumptions and other highly technical financial and funding projections requiring the application of significant judgement and estimates by management. Accordingly, this matter has been identified as an area of significant focus in our audit.

In this regard, we analysed the estimation of expected future revenue cash flows and assessed the reasonableness of the assumptions used in the preparation of the business plan. Our audit procedures also included evaluating the assumptions and estimates made by the Directors of the Parent

of deferred tax assets

deductions and tax loss carryforwards. This analysis considered, among other factors, the future projection period, sensitivity analysis and the financial support available for the execution of the envisaged business plan.

Other Matters

The consolidated financial statements for the previous financial year were audited by another auditor, who issued an audit report dated 25 April 2025, expressing an unqualified opinion.

Other information: Consolidated

report

The other information comprises exclusively the consolidated

for 2025, the preparation of which is the responsibility of the Parent Directors and which does not form part of the consolidated annual accounts.

Our audit opinion on the consolidated annual accounts does not cover the consolidated Direc report. Our responsibility relating to the consolidated

, in accordance with the audit regulations in force, consists of evaluating and reporting on the consistency of the consolidated



with the consolidated annual accounts, based on the knowledge of the Group obtained in the audit of those consolidated annual accounts, as well as evaluating and reporting on whether the content and presentation of the consolidated are in conformity with the applicable regulations. If, based on the work we have performed, we conclude that there are material misstatements, we are required to report that fact.

2

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

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271

Inscrita en el Registro Oficial de Auditores de Cuentas (ROAC) con el Nº S1520. Inscrita en el Instituto de Censores Jurados de Cuentas de España (ICJCE)

PKF ATTEST es miembro de PKF Global, la red de firmas miembro de PKF International Limited, cada una de las cuales es una entidad legal separada e independiente y no acepta ninguna responsabilidad u obligación por las acciones o inacciones de cualquier miembro individual o firma(s) corresponsal(es).

Based on the work performed, as described above, the information contained in the consolidated

is consistent with that disclosed in the consolidated annual accounts for 2025 and its content and presentation are in conformity with the applicable regulations.

Responsibilities of the Directors and the Audit Committee for the consolidated annual accounts

The Directors of the Parent Company are responsible for the preparation of the accompanying consolidated annual accounts so that they give a true and fair view of the consolidated equity, consolidated financial position and consolidated results of the Group, in accordance with the regulatory financial reporting framework applicable to the Group in Spain, and for such internal control as they determine is necessary to enable the preparation of consolidated annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated annual accounts, the Directors of the Parent Company are responsible for assessing the

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

The Audit Committee of the Parent Company is responsible for overseeing the process involved in the preparation and presentation of the consolidated annual accounts.

of the consolidated annual accounts

Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the audit regulations in force in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated annual accounts.

A further description of our responsibilities for the audit of the consolidated annual accounts is

included in Appendix 1

.

ages 5 and 6,

3

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

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271

Inscrita en el Registro Oficial de Auditores de Cuentas (ROAC) con el Nº S1520. Inscrita en el Instituto de Censores Jurados de Cuentas de España (ICJCE)

PKF ATTEST es miembro de PKF Global, la red de firmas miembro de PKF International Limited, cada una de las cuales es una entidad legal separada e independiente y no acepta ninguna responsabilidad u obligación por las acciones o inacciones de cualquier miembro individual o firma(s) corresponsal(es).

Report on other legal and regulatory requirements

Additional report to the Audit Committee of the Parent Company

The opinion expressed in this report is consistent with the content of our additional report to the Parent

Audit Committee dated on April 8, 2026.

Engagement period

The Extraordinary General S

Meeting of the Parent Company held on June 5, 2025 appointed us as auditors for a period of 3 years from the year ended Decembre 31, 2025.

PKF ATTEST Servicios Empresariales, S.L.

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

Zigor Bilbao

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

April 8, 2026

4

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

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271

Inscrita en el Registro Oficial de Auditores de Cuentas (ROAC) con el Nº S1520. Inscrita en el Instituto de Censores Jurados de Cuentas de España (ICJCE)

PKF ATTEST es miembro de PKF Global, la red de firmas miembro de PKF International Limited, cada una de las cuales es una entidad legal separada e independiente y no acepta ninguna responsabilidad u obligación por las acciones o inacciones de cualquier miembro individual o firma(s) corresponsal(es).

Appendix 1

Further to the information contained

responsibilities in relation to the audit of the consolidated annual accounts.

consolidated annual accounts.

As part of an audit in accordance with prevailing audit regulations in Spain, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an



Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors of the Parent Company.

basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt o

continue as a going concern. If we conclude that a material uncertainty exists, we are required

accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are

events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated annual accounts, including the disclosures, and whether the consolidated annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.

Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee of the Parent Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee of the Parent Company with a statement that we have complied with relevant ethical requirements regarding independence, and we have communicated with it to report on all matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

5

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

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271

Inscrita en el Registro Oficial de Auditores de Cuentas (ROAC) con el Nº S1520. Inscrita en el Instituto de Censores Jurados de Cuentas de España (ICJCE)

PKF ATTEST es miembro de PKF Global, la red de firmas miembro de PKF International Limited, cada una de las cuales es una entidad legal separada e independiente y no acepta ninguna responsabilidad u obligación por las acciones o inacciones de cualquier miembro individual o firma(s) corresponsal(es).

From the matters communicated with the Audit Committee of the Parent Company, we determine those matters that were of most significance in the audit of the consolidated annual accounts of the current period and are therefore the key audit matters.

about the matter.

6

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

PKF ATTEST SERVICIOS EMPRESARIALES, S.L.

Alameda de Recalde, 36 8º - Reg. Merc. Biz., Tomo 4205, Sec 8, Hoja 34713, Folio 112, Incs 1ª C.I.F. B-95221271

Inscrita en el Registro Oficial de Auditores de Cuentas (ROAC) con el Nº S1520. Inscrita en el Instituto de Censores Jurados de Cuentas de España (ICJCE)

PKF ATTEST es miembro de PKF Global, la red de firmas miembro de PKF International Limited, cada una de las cuales es una entidad legal separada e independiente y no acepta ninguna responsabilidad u obligación por las acciones o inacciones de cualquier miembro individual o firma(s) corresponsal(es).

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND CONSOLIDATED DIRECTOR

REPORT FOR THE 2025 FINANCIAL YEAR TOGETHER WITH THE AUDIT REPORT ON THE CONSOLIDATED ANNUAL ACCOUNTS ISSUED BY AN INDEPENDENT AUDITOR

(TRANSLATION FROM THE 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

Consolidated Financial Statements and

s Report for the Financial Year 2025

together with Audit Report on the Consolidated Annual Accounts issued by an Independent Auditor.

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

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

(Expressed in euros)

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

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

(Expressed in euros)

Equity 5.595.020,83 4.235.097,69

Capital Note 12.1 320.998,86 320.998,86

Share Capital 320.998,86 320.998,86

Issue Premium Reserves

Legal y statutory Other Reserves

Debts with credit institutions Note 9.1 2.622.262,64 3.208.616,49 Finance lease liabilities 47.771,80 -

Other financial liabilities Note 9.1 485.884,33 485.884,33

Deferred tax liabilities - 23.596,61

CURRENT LIABILITIES

7.694.655,41

9.732.505,16

Short-term provisions Note 19 9.035,66 217.604,61

Suppliers Sundry creditors

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDIARIES

CONSOLIDATED PROFIT AND LOSS ACCOUNTS FOR THE FINANCIAL YEAR 2025 AND 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 FINANCIAL YEAR ENDED 2025 AND 2024

(Expressed in euros)

Consolidated Financial Statements ofGroup Lleidanetworks Serveis Telemâtics, S.A. and Subsidiaries for thefinancial year 2025

LLEIDANETWORKS SERVEIS TELEMATICS, S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 2025 Y 2024

(Expressed in euros)

GROUP LLEIDANETWORKS SERVEIS TELEMÀTICS AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 2025 Y 2024

(Expressed in euros)

LLEIDANETWORKS SERVEIS TELEMÀTICS, S.A. AND SUBSIDARIES

CONSOLIDATED ANNUAL REPORT FOR THE 2025 FINANCIAL YEAR

NOTE 1. INCORPORATION, ACTIVITY AND LEGAL REGIME 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 agreed to move the Company's registered office to Calle Téllez, 56 Local C, Madrid. Previously, its registered office was located at Parc Cientific i Tecnologic Agroalimentari de Lleida, Edificio H1, Planta 2, 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 of acting as a telecommunications operator for Short Message Service (SMS) management via the Internet, electronic notification and contracting services, as well as any other activity related to the aforementioned corporate purpose.

3. Legal Regime of the Parent Company

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

4. Financial year and closing 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 and approved by the Parent Company correspond to the financial year ended 31 December 2024.

   The Group intends to file its consolidated annual accounts with the Mercantile Registry of Madrid.

5. Listing on Stock Markets

On 1 June 2015, the Parent Company approved at its Shareholders' Meeting the request for the admission to trading of all the Parent Company's shares on the Alternative Stock Market (MAB), currently known as BME Growth.

On 7 October 2015, the Board of Directors of Bolsas y Mercados Españoles, Sistemas de Negociación, S.A., approved the admission to the growth companies segment of the Alternative Stock Market, effective from 9 October 2015, of 16.049.943 shares with a par value of 0,02 euros each. The Parent Company has currently appointed Solventis A.V., S.A. as its liquidity provider and Registered Advisor. On 19 December 2018, the Company began trading under a dual listing on Euronext Growth Paris, with Invest Securities acting as the Listing Sponsor. On 2 November 2020, the Company began trading on the OTCQX market in New York and ceased to be listed on the same on 1 January 2026.

1.1) Subsidiaries

The Parent Company directly holds stakes in various national and international companies and exercises direct control over them. On 1 January 2016, the first consolidation of the companies forming the Group was carried out.

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

Companies included in the Consolidation Perimeter:

The detail of the Subsidiary Companies included in the consolidation perimeter, as of 31 December 2025, is as follows:

The detail of the Subsidiary Companies included in the consolidation perimeter, as of 31 December 2024, is as follows:

The classification of the companies detailed above as subsidiaries is determined by the case set forth in section 1.a) of Article 2 of the Rules for the Preparation of Consolidated Annual Accounts, approved by Royal Decree 1159/2010 of 17 September, as the Parent Company holds, directly or indirectly, the majority of the voting rights of said companies, except in the case of Lleida Information Technology Network Services, which has been included in the consolidation perimeter using the full consolidation method, as the parent company is considered to exercise control over its management through existing agreements between the shareholders.

The financial year of the subsidiary companies begins on 1 January and ends on 31 December of each year. The latest annual accounts prepared for the subsidiaries correspond to the financial year ended 31 December 2025.

During the 2025 financial year, a change occurred in the consolidation perimeter as a result of the closure of the subsidiary in Costa Rica. Said company ceased its activity and was excluded from the consolidation perimeter as of the effective closing date, 8 May 2025. This decision is part of the process of streamlining and optimizing the Group's international structure, with the aim of concentrating activity in the most strategic and profitable markets. This change does not have a significant impact on the consolidated financial statements, nor on the Group's operating performance, given the minor weight of the company in the consolidated figures.

Additionally, in April 2025, the subsidiary Lleidanetworks Serveis Telemàtics, LTD in the United Kingdom was liquidated, which has not had a significant impact on the consolidated financial statements or the Group's operating performance, given the minor weight of this subsidiary in the consolidated figures.

The details of the registered office and activities of the Subsidiaries included in the consolidation perimeter as of 31 December 2025 are as follows:

Lleidanetworks Serveis Telemàtics, LTD

Incorporated on 28 December 2005 in Dublin with a permanent establishment in London, and its registered office at Birchin Court 20, Birchin Lane, London (United Kingdom). Its main activity is that of a telecommunications operator. The company was liquidated on 10 April 2025.

Lleidanet USA Inc

Incorporated on 12 May 2009 and its registered office is located at 2719 Hollywood Boulevard Street 21 FL33020, Hollywood. Its main activity is that of a telecommunications operator.

Lleidanet Honduras, S.A.

With its registered office in Tegucigalpa (Honduras), it was incorporated on 11 January 2012, with Lleidanetworks Serveis Telemàtics, S.A. subscribing to 175 shares out of a total of 250 issued. Its main activity is SMS operation, based on a network of interconnections with mobile and fixed-line operators in the Republic of Honduras.

Lleidanet Dominicana, S.R.L.

With its registered office at Calle Tetelo Vargas 12, Santo Domingo (Dominican Republic), it was incorporated on 26 June 2012.

Lleida SAS

With its registered office at Calle 70 nº4, Bogotá (Colombia), it was incorporated on 16 November 2012.

Lleida Chile SPA

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

Lleidanet do Brasil Ltda

With its registered office at Rua Tabapuã 72, São Paulo (Brazil), it was incorporated on 2 October 2013. Its main activity is based on the provision of telecommunications services, software development, sending text messages and emails, and providing study and analysis services for computer processes in general.

Lleidanet Guatemala, Sociedad Anónima

With its registered office in Guatemala (Guatemala), it was incorporated on 7 November 2013. Its main activity is based on the provision, organization, and commercialization 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.

Portabilidades Españolas, S.L.U.

Incorporated on 4 December 2015, with its registered office at Parque Tecnológico de Gardeny, Edificio H, Lleida. Its corporate purpose is the commercialization of services based on number portability data for 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 acquired 100% of this company, located in San José (Costa Rica), from Mr. Francisco José Sapena Soler for an amount of 16,06 euros. Its main activity is based on the provision, organization, and commercialization 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. The company was closed on May 8, 2025.

Lleidanet Perú

With its registered office at Cañón del Pato No. 103, Lima (Peru). Its main activity is based on the provision, organization, and commercialization 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 1 October 2020, the Company was incorporated with its registered office in Dubai (United Arab Emirates), together with the partner Adil Ismail Ali Al Fahem, with a share capital of 300 shares, 147 of which were subscribed by Lleidanetworks Serveis Telemàtics, S.A., representing 49% of the share capital of the incorporated company.

Lleida.net PKI, S.L.U.

On 30 November 2021, the Parent Company acquired 100% of the shares of the company Indenova, S.L., with its registered office at Calle Traginers, 14 - 2º B, Valencia, for a cost of 7.100.000,00 euros. On 19 April 2024, the Company changed its corporate name to Lleidanet PKI, S.L., replacing the former corporate name Indenova, S.L.U.

Lleida Networks India Private Limited

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

None of the Subsidiary Companies included in the consolidation perimeter are listed on a Stock Exchange.

There are no significant restrictions on the ability of the Subsidiary Companies to transfer funds to the Parent Company in the form of cash dividends or to repay loans. Likewise, none of the companies have been classified as held for sale.

NOTA 2. BASIS OF PREPARATION OF THE CONSOLIDATED ANNUAL ACCOUNTS

1. Fair Presentation and Financial Reporting Framework applicable to the Group

   These consolidated annual accounts have been prepared by the Directors of the Parent Company in accordance with the regulatory financial reporting framework applicable to the Group, which is established in:

   1. The Code of Commerce and all other commercial legislation.

   2. The General Accounting Plan approved by Royal Decree 1514/2007 and its subsequent amendments and adaptations.

   3. Royal Decree 1159/2010, of 17 September, which approves the Rules for the Preparation of Consolidated Annual Accounts and modifies the General Accounting Plan.

   4. The mandatory standards approved by the Institute of Accounting and Auditing (ICAC) in the development of the General Accounting Plan and its complementary standards.

   5. Legislative Royal Decree 1/2010, of 2 July, which approves the Consolidated Text of the Capital Companies Act.

   6. All other applicable Spanish accounting regulations.

      The consolidated annual accounts for the 2025 financial year have been prepared based on the accounting records of the Parent Company and the consolidated companies (Note 1) and include, where applicable, the adjustments and reclassifications necessary for appropriate temporal and/or valuation homogenization.

      The consolidated annual accounts are presented in accordance with the applicable regulatory financial reporting framework and, in particular, with the accounting principles and criteria contained therein, so that they show a true and fair view of the consolidated equity and the consolidated financial position of the Group at the year-end date, as well as the consolidated results of its operations and its consolidated cash flows for the annual period ended on that date. These consolidated annual accounts, which have been prepared by the Directors of the Parent Company, are pending approval by the General Shareholders' Meeting, and it is expected that they will be approved without significant modifications. Meanwhile, the prepared consolidated annual accounts for the 2024 financial year were approved by the General Shareholders' Meeting of the Parent Company on 5 June 2025.

      There are no exceptional reasons why, in order to show a true and fair view, legal provisions regarding accounting matters have not been applied.

2. Accounting Principles

   For the preparation of the consolidated annual accounts for the 2025 financial year, the applicable regulatory financial reporting framework has been followed, and in particular, the recognition and valuation standards described in Note 5. The Directors of the Parent Company have prepared these consolidated annual accounts considering all mandatory accounting principles and standards that have a significant effect on said consolidated annual accounts. There is no mandatory accounting principle that has been omitted in the preparation of these consolidated annual accounts. Furthermore, no non-mandatory accounting principles have been applied.

3. Functional and Presentation Currency

   In accordance with current accounting legislation, the Consolidated Financial Statements are presented in euros. The euro is the functional currency of the Parent Company and all other subsidiaries, except for 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: UAE Dirham (AED)
   
   Lleidanet India: Indian Rupee (INR)
   
   
4. Critical Aspects of Valuation and Estimation of Uncertainty

   In the preparation of the accompanying consolidated financial statements, estimates made by the Board of Directors of the Parent Company have been used to value some of the assets, liabilities, income, and expenses recorded therein. These estimates and criteria refer to:

   • Reasonableness of the capitalization and recoverability of research and development projects.

   • Reasonableness of the recognition and recoverability of the consolidation 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 based on the best information available at the close of the period ended 31 December 2025, it is possible that future events may require modifications (either upwards or downwards) in coming years. These would be applied prospectively, recognizing the effects of the change in estimate in the corresponding consolidated profit and loss account.

   There have been no significant changes in accounting estimates affecting the current financial year or that are expected to affect future years.

   Negative Working Capital

   As of 31 December 2025, the Group presents a negative working capital amounting to 1.8 million euros (compared to a negative working capital of 3,2 million euros as of 31 December 2024). Considering the expected cash flows for the coming financial years, the Directors of the Parent Company do not estimate that this circumstance will cause any financial or liquidity problems for the Group.

5. Comparison of Information

   In accordance with commercial legislation, the Board of Directors of the Parent Company presents, for comparative purposes with each of the items in the consolidated balance sheet, the figures for the previous financial year in addition to those as of 31 December 2025. Likewise, for comparative purposes with each of the items in the consolidated profit and loss account, the consolidated statement of changes in equity, and the consolidated cash flow statement, it presents the figures for the period ended 31 December 2024, in addition to those for the period ended 31 December 2025.

   Regarding the consolidated notes to the financial statements (the report), the figures for the previous financial year are presented for comparative purposes alongside the figures corresponding to 31 December 2025.

   The items for both financial years are comparable and consistent.

6. Changes in Accounting Policies

   There have been no significant changes in accounting policies compared to the policies applied in the previous financial year.

7. Correction of Errors

   The consolidated financial statements for the financial year ended 31 December 2025 do not include adjustments derived from errors detected in the consolidated annual accounts of previous years.

8. Materiality

In determining the information to be disclosed in these consolidated notes regarding the various financial statement line items or other matters, the Group, in accordance with the Conceptual Framework of the General Accounting Plan, has taken into account materiality in relation to the consolidated financial statements for the financial year ended 31 December 2025.

NOTE 3. RECOGNITION AND VALUATION STANDARDS

The main valuation standards used by the Group in the preparation of its Consolidated Annual Accounts for the 2025 financial year, in accordance with those established by the applicable Financial Reporting Framework, have been the following:

1. Consolidation principles

   The most important consolidation principles applied have been the following:

   Subsidiary Companies-

   Subsidiaries are all entities over which the Group holds or may hold, directly or indirectly, control. Control is understood as the power to govern the financial and operating policies of an entity so as to obtain economic benefits from its activities. In assessing whether the Group controls another entity, the existence of potential voting rights that are currently exercisable or convertible is taken into consideration. Subsidiaries are consolidated from the date of the first consolidation (1 January 2024), and from that date, their income, expenses, and cash flows are recognized in the consolidated annual accounts. Subsidiaries are excluded from consolidation from the date on which control is lost.

   The acquisition method is used to account for the acquisition of subsidiaries. Under this method, the acquisition cost is the fair value of the assets delivered, the liabilities incurred or assumed, and the equity instruments issued at the date of exchange, as well as the fair value of any contingent consideration that depends on future events or the fulfillment of certain conditions.

   The assets, liabilities, income, expenses, and cash flows of the subsidiaries are incorporated into the consolidated annual accounts by applying the full consolidation method, according to which:

   • Where necessary, the appropriate adjustments and reclassifications are made in the Group companies to ensure the proper homogenization of timing, valuation, internal operations, and the structure of the annual accounts of the consolidated companies for the purpose of aggregation.

   • The carrying amounts representing the equity instruments of the subsidiary held by the parent company are offset, at the acquisition date, against the proportional part of the subsidiary's equity items attributable to said holdings (investment-equity elimination). Generally, this offsetting is performed based on the values resulting from the application of the acquisition method.

   • Generally, the identifiable assets acquired and liabilities assumed from the subsidiary are measured at their fair value at the acquisition date.

   • At the acquisition date, the difference between the consideration transferred to obtain control of the acquired company (plus, in the case of business combinations achieved in stages, the acquisition-date fair value of any previous equity interest) and the proportional part of the equity representing the shareholding in the subsidiary's capital is recognized, if positive, as consolidation goodwill. In the exceptional event that the difference is negative, such excess is recognized as a positive result for the year in the consolidated profit and loss account, or as Reserves of the Parent Company. However, before recognizing said income, the amounts giving rise to such difference are reassessed.

     Consolidation goodwill is allocated to each of the cash-generating units (CGUs) or groups of units expected to benefit from the business combination. Subsequent to initial recognition, consolidation goodwill is measured at its acquisition price less accumulated amortization and, where applicable, the accumulated amount of impairment losses recognized in accordance with the criteria indicated in Note 5.d) of these consolidated notes.
     
     

     Consolidation goodwill is amortized over its useful life. The useful life is determined separately for each cash-generating unit (CGU) to which goodwill has been allocated. It is presumed, unless there is evidence to the contrary, that the useful life of consolidation goodwill is ten years and that its recovery is linear. Furthermore, 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. If such indications exist, they are tested for potential impairment in accordance with Note 5.d) of these consolidated notes, and, where applicable, the corresponding valuation adjustment is recorded.

     Impairment losses recognized for consolidation goodwill, where applicable, are not subject to reversal in subsequent financial years.

     • The assets and liabilities of the group companies are incorporated into the consolidated balance sheet at the same carrying amounts as they appear in the respective balance sheets of said companies, except for the assets acquired and liabilities assumed at the acquisition date, which are incorporated into the consolidated balance sheet based on their fair value at the acquisition date, after considering the amortization and impairment incurred since that date.

     • Income, expenses, and cash flows of the subsidiaries are incorporated into the consolidated annual accounts from the acquisition date.

     • Intercompany receivables and payables between companies included in the consolidation, as well as income, expenses, and cash flows relating to transactions between said companies (intragroup items), are eliminated. Results generated as a consequence of internal operations are eliminated and deferred until they are realized through transactions with third parties outside the Group.

     • Internal dividends recorded, where applicable, as income for the year by a group company, which have been distributed by another company belonging to the same group, are eliminated and treated as reserves of the receiving company. In the case of interim dividends, they are eliminated against the equity item representing them in the distributing company.

     • Reserves of subsidiaries consolidated using the full consolidation method are presented, where applicable, within consolidated equity under the heading "Shareholders' Equity

       Reserves Reserves in companies consolidated by the full consolidation method" in the consolidated balance sheet.
       
       

     • The value of the participation of minority shareholders (non-controlling interests), where applicable, is calculated based on their effective share in the equity of the subsidiary consolidated by the full consolidation method and is presented under the heading "Equity

       Non-controlling interests" in the consolidated balance sheet. In general, consolidation goodwill is not attributed to non-controlling interests. Likewise, the attributed portion of reserves, valuation adjustments, and grants, donations, and bequests received corresponding to them based on their shareholding are presented under this heading. The value of their share in the results of the subsidiaries is presented, where applicable, under the heading "Profit/Loss attributed to non-controlling interests" in the consolidated profit and loss account.
       
       

     • When there is an excess between the losses attributable to the non-controlling interests of a subsidiary and the portion of equity (excluding the results for the year) of said company that proportionally corresponds to them, such excess is attributed to the non-controlling interests, even if this implies a debit balance in said item.

     • Once control has been obtained, subsequent transactions that result in a modification of the Parent Company's interest in the subsidiary provided that, in the case of a reduction, they do not involve a loss of control are treated in the consolidated accounts as a transaction with treasury equity instruments. Consequently, in the investment-equity elimination and in the calculation of non-controlling interests, the following rules apply:

       1. The amount of consolidation goodwill or recognized negative difference is not modified, nor is that of other assets or liabilities in the consolidated balance sheet.

       2. In cases of a reduction in the ownership interest without loss of control, the profit or loss recognized in the individual annual accounts is eliminated solely for consolidation purposes; this circumstance gives rise to an adjustment in the reserves of the company reducing its interest.

       3. The amount of "Valuation adjustments" and "Grants, donations, and bequests received" of the subsidiary appearing, where applicable, in the consolidated balance sheet, is quantified based on the percentage of ownership held by the group companies in the capital of said subsidiary after the transaction has been completed.

       4. The participation of non-controlling interests in the equity of the subsidiary is shown in the consolidated balance sheet based on the percentage of ownership held by third parties outside the group in the capital of said company after the transaction, consequently including the percentage of participation in the goodwill recorded in the consolidated accounts associated with the modification that has occurred.

       5. Where applicable, the adjustment required to comply with the provisions in a., c., and d. results in a variation in the reserves of the company that reduces or increases its ownership interest.

          Note 1 discloses the identification data of the subsidiaries included in the consolidation perimeter using the full consolidation method.

          Associated Companies-

          Associated companies are all entities over which any of the group companies exercises significant influence. Significant influence is understood to exist when the Group has a shareholding in the company and the power to intervene in its financial and operating policy decisions, without reaching control or joint control over it.

          Associated companies are included in the consolidated accounts by applying the equity method (or "procedure of translation into equity"). When the equity method is applied for the first time, investments in associates are measured in the consolidated balance sheet at the amount that the group companies' investment percentage represents, at the time of investment, of the company's equity. If the difference resulting between the amount at which the shareholding was recorded in the individual accounts and the aforementioned value is positive, the goodwill revealed is included in the carrying amount of the investment recorded under the heading "Investments accounted for using the equity method." In the exceptional case that it is negative, the difference is recognized in the consolidated profit and loss account as a positive result.

          The results generated by the company accounted for using the equity method are recognized from the date on which significant influence is acquired.

          The carrying amount of the shareholding in the consolidated balance sheet is modified, increasing or decreasing it in the proportion corresponding to the associated companies, by the variations experienced in the equity of the investee company since the initial valuation, after eliminating the proportion proceeding from unrealized results generated in transactions between said company and the associated companies.

          Distributed profits from the investee company recorded as income are eliminated and treated as reserves of the company holding the share.

          Once the equity method has been applied and, where applicable, the losses of the investee company have been recognized, the Group applies the provisions of section 2.5.3 of recognition and valuation standard 9, "Financial Instruments," of the General Accounting Plan, to determine whether it is necessary to recognize additional impairment losses regarding its net investment in the investee company.

          Valuation and timing homogenization is applied to associated investments in the same way as for subsidiaries.

          Note 1 discloses the identification data of the associated companies included in the consolidation perimeter using the equity method.

          Transalation Differences-

          The translation of the annual accounts of companies whose functional currency is other than the Euro is carried out in accordance with the following rules:

     • Assets and liabilities are translated into euros at the exchange rate prevailing at the closing date of the consolidated financial statements.

     • Income statement items are translated using the average exchange rate for the year (considered as the historical exchange rate).

     • Equity items, including the profit or loss for the year, are translated at the historical exchange rate.

     • The difference between the net amount of assets and liabilities and the equity items is recorded within the equity of the consolidated balance sheet under the heading "Valuation adjustments

       Translation differences of consolidated companies," where applicable, net of the tax effect, and after deducting the portion corresponding to non-controlling interests.
       
       

     • Consolidation goodwill and any fair value adjustments to assets and liabilities arising from the application of the acquisition method are considered elements of the acquired company and are therefore translated at the closing exchange rate.

     • Cash flows are translated at the exchange rate on the date the transaction occurred, or using a weighted average exchange rate for the period, provided there have been no significant fluctuations.

2. Intangible Assets

   Items included in intangible assets are measured at cost, which is either the acquisition price or the production cost, less any corresponding accumulated amortization and any impairment losses that may have occurred.

   The amortizable amount of an intangible asset (its cost less its residual value, where applicable) is distributed on a systematic basis over its useful life. The amortization charge for each period is recognized in the profit or loss for the year.

   The Company reviews the residual value, useful life, and amortization method of intangible assets at the end of each financial year. Any modifications to the criteria initially established are recognized as a change in accounting estimate.

   The criteria for the recognition of impairment losses on these assets and, where applicable, the reversal of impairment losses recorded in previous years, are described in Note 4.d).

   Research and Development Expenses

   Research Expenses

   Capitalized research expenses are specifically individualized by project, and their cost is clearly established so that it can be distributed over time. Furthermore, the Management of the Parent Company has well-founded reasons for the technical success and the economic-commercial profitability of said projects.

   Research expenses appearing as assets are amortized on a straight-line basis over their useful life, at an annual rate of 20%, and always within a 5-year period.

   At the moment reasonable doubts arise regarding the technical success or the economic-commercial profitability of a project, the amounts recorded as assets corresponding to said project are directly charged as losses for the financial year.

   Development Expenses

   Development expenses for the year are capitalized from the moment all of the following conditions are met:

   • Existence of a specific and individualized project that allows for a reliable measurement of the costs attributable to the completion of the project.

   • The allocation, charging, and temporal distribution of costs for each project are clearly established.

   • At all times, there are well-founded reasons for the technical success of the project, both in the event that the Company intends to exploit it directly and in the event of selling the result of the project to a third party upon completion, provided a market exists.

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

   • The financing of the various projects is reasonably assured to complete their execution. Furthermore, the availability of adequate technical or other resources to complete the project and to use or sell the intangible asset is ensured.

   • There is an intention to complete the intangible asset in question, in order to use it or sell it.

   Compliance with all the aforementioned conditions is verified during all financial years in which the project is carried out; the amount to be capitalized is that which is incurred from the moment such conditions are met.

   In no case shall expenditures initially recognized as expenses for the year be capitalized if they subsequently meet the aforementioned conditions for capitalization.

   Research and development projects commissioned to other companies or institutions are measured at their acquisition price.

   Projects carried out using the Company's own resources are measured at their production cost, which includes all directly attributable costs necessary to create, produce, and prepare the asset so that it can operate in the intended manner. This specifically includes: personnel costs directly assigned to the R&D activities; costs of raw materials, consumables, and services used directly in the R&D project; amortization of fixed assets directly assigned to the R&D project; and the portion of indirect costs that can be reasonably allocated to the R&D project activities.

   In no case shall the costs of sub-activity or the general overheads of the Company be allocated to research and development projects. For research projects that have been capitalized due to meeting the established requirements, financial expenses are not capitalized either, despite the projects having a duration of more than one year.

   The allocation of costs to development projects is carried out until the moment the project is completed, provided there is certainty of the technical and economic success of its exploitation.

   Development expenses appearing as assets are amortized according to a systematic plan over their useful life, which does not exceed five years, with amortization beginning from the date of the project's completion. The amount of these capitalized expenses shall in no case include research expenses.

   Computer Software

   Licenses for computer applications acquired from third parties are capitalized on the basis of the costs incurred to acquire them.

   Computer applications are amortized on a straight-line basis over their useful life, at an annual rate of 33%.

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

   Industrial Property

   This item corresponds to capitalized development expenses for which the corresponding patent or similar right has been obtained. It includes the costs of registration and formalization of industrial property, as well as the costs of acquiring the corresponding rights from third parties.

   Throughout these years, the Group has been capable of developing unique methods and technologies in its sector through continuous investment in research and development. As a result of this effort, patents have been published at European, American, and PCT (Patent Cooperation Treaty) levels, showcasing the value of the effort developed over the last few years. These patents allow the Group to license this technology to third parties and protect it against potential copying by other actors in the sector who may be less scrupulous when it comes to creating original models.

   Consolidation Goodwill

   Consolidation goodwill is recognized as an asset when its value arises from an acquisition for consideration within the context of a business combination. Its amount is determined in accordance with section (q) of this Note and is allocated, from the acquisition date, to each of the Group's cash-generating units (CGUs) 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 acquisition-date value of the acquired assets, liabilities, and contingent liabilities assumed from the acquired business, as set out in section (m) (Business Combinations).

   Subsequent to initial recognition, consolidation goodwill is measured at its acquisition price less accumulated amortization and, where applicable, the cumulative amount of recognized impairment losses.

   Consolidation goodwill is amortized 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 presumed that the useful life of goodwill is a maximum of ten years and that its recovery is linear.

   Furthermore, at least annually, the Group assesses whether there are indications of impairment for the cash-generating units to which consolidation goodwill has been allocated. If such indications exist, an impairment test is performed in accordance with the "Impairment of intangible and tangible fixed assets" section of this Note, and the corresponding valuation adjustment is recorded if necessary.

   Impairment losses recognized for consolidation goodwill are not reversed in subsequent periods.

3. Tangible Fixed Assets

   Tangible fixed assets are measured at their acquisition price, net of the corresponding accumulated depreciation and, where applicable, the cumulative amount of recognized impairment losses, in accordance with the criteria mentioned in Note 4.d).

   Repair and maintenance expenses incurred during the financial year are charged to the Profit and Loss Account. The costs of renewal, expansion, or improvement of tangible fixed assets that represent an increase in capacity, productivity, or an extension of their useful life are capitalized as an addition to the cost of the corresponding assets, once the carrying amounts of the replaced elements have been derecognized.

   Tangible fixed assets, net of their residual value where applicable, are depreciated by distributing the cost of the various elements that comprise said assets on a straight-line basis over the estimated years of useful life, which constitute the period in which the Group expects to use them, according to the following table:

   	Annual Percentage	Estimated Years of Useful Life
   Buildings	2,50	40
   Technical facilities	8 - 10	12,50 - 10
   Machinery	20 - 25	5 - 4
   Transport elements	10	10
   Other installations	10	10
   Furniture	10 - 15	10 - 6,67
   Computer equipment	25 - 50	4 - 2
   Other tangible fixed assets	15	6,67

   The Company reviews the residual value, useful life, and depreciation method of tangible fixed assets at the close of each financial year and, if appropriate, these are adjusted prospectively.

   The carrying amount of an item of tangible fixed assets is derecognized upon its disposal or through any other means of divestment.

   The gain or loss arising from the derecognition of an item of tangible fixed assets is determined as the difference between the net amount obtained from its disposal or divestment, if any (net of selling costs), and the carrying amount of the item. This gain or loss is charged to the profit and loss account for the financial year in which it occurs.

   The criteria for recognizing impairment losses on these assets and, where applicable, the reversal of impairment losses recorded in previous years, are described in Note 4.d).

4. Impairment of Intangible and Tangible Fixed Assets

At the end of each reporting period, the Group assesses whether there are any indications of impairment in the value of an item of intangible or tangible fixed assets, or of any cash-generating unit (CGU), in which case the recoverable amounts are estimated and the necessary valuation adjustments are made.

An impairment loss is understood to exist for an item of intangible or tangible fixed assets when its carrying amount exceeds its recoverable amount, the latter being the higher of its fair value less costs to sell and its value in use. The determination of value in use is based on the expected future cash flows to be derived from the use of the asset.

Valuation adjustments for impairment of intangible or tangible fixed assets, as well as their reversal when the circumstances that motivated them cease to exist, are recognized as an expense or income, respectively, in the profit and loss account.

In the annual periods ended December 31, 2025 and 2024, the Group has not recorded any impairment losses on intangible or tangible fixed assets.