# EDGAR Filing Document

**Accession Number:** 0001963439
**File Stem:** 0001213900-25-106215
**Filing Date:** 2025-11
**Character Count:** 126825
**Document Hash:** 097a33a85af6ef4c34e3fe0f4412031e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-106215.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001213900-25-106215

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 103

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Turbo Energy, S.A.
- **CENTRAL INDEX KEY:** 0001963439
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** U3
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41813
- **FILM NUMBER:** 251450437

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** STREET ISABEL LA CATOLICA, 8, DOOR 51
- **CITY:** VALENCIA
- **PROVINCE COUNTRY:** U3
- **BUSINESS PHONE:** 34 960 450 026

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** STREET ISABEL LA CATOLICA, 8, DOOR 51
- **CITY:** VALENCIA
- **PROVINCE COUNTRY:** U3

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16** 

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

For the month of November 2025

Commission File Number: **<u>001-41813</u>**

**TURBO ENERGY, S.A.**

(Name of Registrant)

**Plaza América, 2, Floor 4B, Valencia, Spain 46004**

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**EXPLANATORY NOTE**

Turbo Energy, S.A. ("**Turbo Energy**" or the "**Company**"), a company organized under the laws of the Kingdom of Spain, is furnishing this Report on Form 6-K to disclose its unaudited interim consolidated financial results for the six months ended June 30, 2025, and to provide an update on its recent business developments.

The following exhibits are attached:

---

| | |
|:---|:---|
| **EXHIBIT NO.** | **DESCRIPTION** |
| 99.1 | [Unaudited Interim Consolidated Financial Statements as of June 30, 2025 and for the six months ended June 30, 2025 and 2024](ea026244601ex99-1_turbo.htm) |
| 99.2 | [Operating and Financial Review and Prospects in Connection with the Interim Consolidated Financial Statements as of June 30, 2025 and for the six months ended June 30, 2025 and 2024](ea026244601ex99-2_turbo.htm) |

---

Also attached hereto and furnished herewith as Exhibit 101 are the Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited) formatted in XBRL (eXtensible Business Reporting Language), consisting of the following sub-exhibits:

---

| | |
|:---|:---|
| **EXHIBIT NO.** | **DESCRIPTION** |
| EX-101 INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| EX-101 SCH | Inline XBRL Taxonomy Extension Schema Document |
| EX-101 CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| EX-101 DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| EX-101 LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| EX-101 PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **TURBO ENERGY, S.A.** | **TURBO ENERGY, S.A.** |
| Date: November 4, 2025 | By: | */s/ Mariano Soria* |
|  |  | Mariano Soria |
|  |  | Chief Executive Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**TURBO ENERGY, S.A.**

**Condensed Interim Consolidated Financial Statements**

**For the six months ended June 30, 2025 and 2024**

**(Unaudited)**

**(Expressed in Euro)**

**INDEX TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| [Condensed Interim Consolidated Statements of Financial Position](#a_001) | F-2 |
| [Condensed Interim Consolidated Statements of Operations](#a_002) | F-3 |
| [Condensed Interim Consolidated Statements of Shareholders' Equity](#a_003) | F-4 |
| [Condensed Interim Consolidated Statements of Cash Flows](#a_004) | F-5 |
| [Notes to Unaudited Condensed Interim Consolidated Financial Statements](#a_005) | F-6 |

---

**TURBO ENERGY, S.A.**

**Condensed Interim Consolidated Statements of Financial Position**

**(Unaudited)**

**(Expressed in Euro)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
| <br>**As at** |<br>**Note** | **2025** | **2025** | **2024** | **2024** |
|  |  | **(Unaudited)** | **(Unaudited)** |  |  |
| **Assets** |  |  |  |  |  |
| **Current** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | 2 | € | 1364060 | € | 2384625 |
| &nbsp;&nbsp;&nbsp;Accounts receivable and other receivables | 4 |  | 991338 |  | 2926132 |
| &nbsp;&nbsp;&nbsp;Inventories | 5 |  | 2588272 |  | 1951822 |
| &nbsp;&nbsp;&nbsp;Amount due from related parties | 11 |  | 511807 |  | 246220 |
| &nbsp;&nbsp;&nbsp;Prepaid expense | 6 |  | 1601249 |  | 1020384 |
| &nbsp;&nbsp;&nbsp;Investments | 7 |  | 52050 |  | 52050 |
| &nbsp;&nbsp;&nbsp;Total Current Assets |  |  | 7108776 |  | 8581233 |
| **Non- Current Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 8 |  | 276933 |  | 273862 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 9 |  | 2115174 |  | 1712975 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 16 |  | 35541 |  | 35311 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets |  |  | 2040422 |  | 2043812 |
| **Total Assets** |  | € | 11576846 | € | 12647193 |
| **Liabilities and Shareholders' Equity** |  |  |  |  |  |
| **Current Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 10 | € | 2177632 | € | 2910818 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 12 |  | 38337 |  | 14901 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable – related party | 11 |  | 40627 |  |  |
| &nbsp;&nbsp;&nbsp;Amount due to related parties | 11 |  | 997917 |  | 1792045 |
| &nbsp;&nbsp;&nbsp;Lease liabilities - current portion | 16 |  | 19822 |  | 32367 |
| &nbsp;&nbsp;&nbsp;Bank loans - current portion | 13 |  | 4555627 |  | 4369949 |
| &nbsp;&nbsp;&nbsp;Debt bond - current portion | 12 |  | 253352 |  | 91411 |
| &nbsp;&nbsp;&nbsp;Total Current Liabilities |  |  | 8083314 |  | 9211491 |
| **Non-Current Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities | 16 |  | 16800 |  | 3958 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities |  |  | 33339 |  | 33339 |
| &nbsp;&nbsp;&nbsp;Debt bond - noncurrent portion | 12 |  | 2153492 |  | 774471 |
| **Total Liabilities** |  |  | 10286945 |  | 10023259 |
| **Shareholders' Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share Capital | 14 |  | 2754285 |  | 2754285 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 14 |  | 3872273 |  | 3808591 |
| &nbsp;&nbsp;&nbsp;Reserve | 15 |  | 1411846 |  | 1411846 |
| &nbsp;&nbsp;&nbsp;Accumulated Deficit |  |  | (6748503) |  | (5350788) |
| **Total Shareholders' Equity** |  |  | 1289901 |  | 2623934 |
| **Total Liabilities and Shareholders' Equity** |  | € | 11576846 | € | 12647193 |

---

*The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.*

 

**TURBO ENERGY, S.A.**

**Condensed Interim Consolidated Statements of Operations**

**(Unaudited)**

**(Expressed in Euro)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Six Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** |
|  | <br>**Note** | **2025** | **2025** | **2024** | **2024** |
| **Revenue** | 18 | € | 5026963 | € | 4808493 |
| **Revenue - related parties** | 1118 |  | 410342 |  | 68980 |
| **Other operating income** |  |  | 75153 |  | 75960 |
| Total Revenue |  |  | 5512458 |  | 4953433 |
| **Cost and Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues | 19 |  | 4188028 |  | 5115942 |
| &nbsp;&nbsp;&nbsp;Selling and administrative | 20 |  | 1137050 |  | 1131599 |
| &nbsp;&nbsp;&nbsp;Selling and administrative - related parties | 1120 |  | 356912 |  | 426545 |
| &nbsp;&nbsp;&nbsp;Salaries and benefits |  |  | 870583 |  | 834206 |
| &nbsp;&nbsp;&nbsp;Salaries and benefits - related parties | 11 |  | 124159 |  | 40865 |
| &nbsp;&nbsp;&nbsp;Bad debt expense | 4 |  | - |  | 143483 |
| Total Cost and Expenses |  |  | 6676732 |  | 7692640 |
| **Loss from operations** |  |  | (1164274) |  | (2739207) |
| **Other Income (Expense)** |  |  |  |  |  |
| Other income |  |  | 208 |  | - |
| Interest income |  |  | 3457 |  | 32525 |
| Interest expense |  |  | (157432) |  | (168474) |
| Interest expense – related party |  |  | (40627) |  | - |
| Foreign exchange gain (loss) |  |  | (39047) |  | 13825 |
| Total Other Income (Expense) |  |  | (233441) |  | (122124) |
| **Net Loss Before Income Tax** |  |  | (1397715) |  | (2861331) |
| **Income tax Expense (Recovery)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;- Current |  |  | - |  | - |
| &nbsp;&nbsp;&nbsp;- Deferred |  |  | - |  | - |
| **Net Loss** |  | € | (1397715) | € | (2861331) |
| **Basic and Diluted Net Loss per Ordinary Share** |  | € | (0.03) | € | (0.05) |
| **Weighted Average Number of Ordinary Shares Outstanding - Basic and Diluted** |  |  | 55085700 |  | 55085700 |

---

*The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.* 

**TURBO ENERGY, S.A.**

**Condensed Interim Consolidated Statements of Changes in Shareholders' Equity**

**(Unaudited)**

**(Expressed in Euro)**

**Six months ended June 30, 2025**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Additional** | **Additional** | | | | | **Total** | **Total** |
|  | | | **Share** | **Share** | **Paid In** | **Paid In** | | | **Accumulated** | **Accumulated** | **Shareholders'** | **Shareholders'** |
|  |<br>**Note** | **Number of**<br>**Outstanding**<br>**Shares** | **Capital** | **Capital** | **Capital** | **Capital** | **Reserve** | **Reserve** | **Deficit** | **Deficit** | **Equity** | **Equity** |
| **Balance, December 31, 2024** |  | 55085700 | € | 2754285 | € | 3808591 | € | 1411846 | € | (5350788) | € | 2623934 |
| Stock-based compensation | 2 |  |  | - |  | 63682 |  | - |  | - |  | 63682 |
| Net loss for the period |  | - |  | - |  | - |  | - |  | (1397715) |  | (1397715) |
| **Balance, June 30, 2025** |  | 55085700 | € | 2754285 | € | 3872273 | € | 1411846 | € | (6748503) | € | 1289901 |

---

**Six months ended June 30, 2024**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Additional** | **Additional** | | | | | **Total** | **Total** |
|  | | | **Share** | **Share** | **Paid In** | **Paid In** | | | **Accumulated** | **Accumulated** | **Shareholders'** | **Shareholders'** |
|  |<br>**Note** | **Number of**<br>**Outstanding**<br>**Shares** | **Capital** | **Capital** | **Capital** | **Capital** | **Reserve** | **Reserve** | **Deficit** | **Deficit** | **Equity** | **Equity** |
| **Balance, January 1, 2024** |  | 55085700 | € | 2754285 | € | 3104781 | € | 1411846 | € | (2013788) | € | 5257124 |
| Stock-based compensation | 2 |  |  | - |  | - |  | 32911 |  | - |  | 32911 |
| Net loss for the period |  | - |  | - |  | - |  | - |  | (2861331) |  | (2861331) |
| **Balance, June 30, 2024** |  | 55085700 | € | 2754285 | € | 3104781 | € | 1444757 | € | (4875119) | € | 2428704 |

---

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. 

**TURBO ENERGY, S.A.**

**Condensed Interim Consolidated Statements of Cash Flows**

**(Unaudited)**

**(Expressed in Euro)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** |
|  |<br>**Note** | **2025** | **2025** | **2024** | **2024** |
| **Cash Provided by (Used in)** |  |  |  |  |  |
| **Operating Activities** |  |  |  |  |  |
| Net loss before income tax |  | € | (1397715) | € | (2861331) |
| Items not affecting cash: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 2 |  | 63682 |  | 32911 |
| &nbsp;&nbsp;&nbsp;Bad debt expense | 4 |  | - |  | 143483 |
| &nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 8 |  | 5937 |  | 5829 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 9 |  | 48762 |  | 24842 |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 16 |  | 38250 |  | 31571 |
| &nbsp;&nbsp;&nbsp;Accretion of lease liabilities | 16 |  | 2442 |  | 1054 |
| &nbsp;&nbsp;&nbsp;Gain on lease cancellation | 16 |  | (137) |  | - |
| &nbsp;&nbsp;&nbsp;Provision for inventory reserves | 5 |  | - |  | (263202) |
| Changes in non-cash working capital items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Inventories | 5 |  | (636450) |  | 3174204 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 4 |  | 1934794 |  | 816345 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets |  |  | 3390 |  | - |
| &nbsp;&nbsp;&nbsp;Due from related parties | 11 |  | (151543) |  | 1418189 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 11 |  | (1329) |  | (9882) |
| &nbsp;&nbsp;&nbsp;Prepaid expense | 6 |  | (580865) |  | (194255) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 10 |  | (733186) |  | 12503 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 12 |  | 23436 |  | - |
| &nbsp;&nbsp;&nbsp;Accrued interest payable – related party | 11 |  | 40627 |  | - |
| Net cash provided by (used in) operating activities |  |  | (1339904) |  | 2332261 |
| **Investing Activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Short-term investments | 7 |  | - |  | (8000) |
| &nbsp;&nbsp;&nbsp;Proceeds from return of short-term investments | 7 |  | - |  | 500000 |
| &nbsp;&nbsp;&nbsp;Purchase of equipment | 8 |  | (9008) |  | (1996) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets | 9 |  | (450962) |  | (429709) |
| Net cash provided by (used in) investing activities |  |  | (459970) |  | 60295 |
| **Financing Activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from debt bond | 12 |  | 1667638 |  | - |
| &nbsp;&nbsp;&nbsp;Repayment of debt bond | 12 |  | (126676) |  | - |
| &nbsp;&nbsp;&nbsp;Repayment of bank loans | 13 |  | (90374) |  | (116479) |
| &nbsp;&nbsp;&nbsp;Net proceeds (repayment) from lines of credit | 13 |  | 276052 |  | (1066535) |
| &nbsp;&nbsp;&nbsp;Repayment of lease liabilities | 16 |  | (40488) |  | (32665) |
| &nbsp;&nbsp;&nbsp;Payments to related parties | 11 |  | (907213) |  | (1701854) |
| &nbsp;&nbsp;&nbsp;Proceeds from related parties | 11 |  | 370 |  | 400323 |
| Net cash provided by (used in) financing activities |  |  | 779309 |  | (2517210) |
| **Net change in cash** |  |  | (1020565) |  | (124654) |
| **Cash - beginning of period** |  |  | 2384625 |  | 620531 |
| **Cash - end of period** |  | € | 1364060 | € | 495877 |

---

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

**TURBO ENERGY, S.A.**

**Notes to the Unaudited Condensed Interim Consolidated Financial Statements**

**June 30, 2025 and 2024**

**(Expressed in Euro)**

**NOTE 1 – ENTITY INFORMATION**

Turbo Energy, S.A. (the "Company) was incorporated under the name of Distritech Solutions S.L. on September 18, 2013 under the laws of the Kingdom of Spain. The Company then changed its name to Solar Rocket S.L. on October 7, 2013. On April 8, 2021, Solar Rocket S.L. merged with a Spanish corporation Turbo Energy S.L.U. Turbo Energy S.L.U then became a wholly owned subsidiary of Solar Rocket S.L. This merger was approved by the Board of Directors of both companies. Following the merger, the Company changed its name to Turbo Energy S.L. on April 8, 2021. On February 8, 2023, we transformed the Company from a Spanish unipersonal limited company to a Spanish limited stock company. As such, our Company's name was changed to Turbo Energy, S.A.

The corporate purpose of the Company, in accordance with its bylaws, consists of the acquisition, distribution and sale of electrical and electronic material for the development of renewable energy projects, such as solar panels, inverters, chargers, regulators, batteries and structures, among others. We design, develop and distribute equipment for the generation, management and storage of photovoltaic energy. Our energy storage products are managed from the cloud and through the inverter of the installation by an advanced software system which is optimized by artificial intelligence ("AI"). The key advantage is that our products, when compared to conventional battery storage systems, reduce electricity costs and protect the installation from power outages. Historically, we have primarily sold inverters, batteries and photovoltaic modules to installers and other distributors for residential consumers located in Spain; however, since 2022, we have shifted our focus on developing and commercializing all-in-one, AI-optimized solar energy storage systems under the brand name *SUNBOX* with applications in the global residential (*SUNBOX Home* and *SUNBOX Home Lite*), commercial and industrial (*SUNBOX Industry*) and utility-scale (*SUNBOX Utility*) markets.

The Company is part of the Umbrella Global Energy, S.A., whose main shareholder is Crocodile Investment, S.L.U, (hereinafter, the ultimate partner), with registered office in Valencia. The majority shareholder of the Turbo Energy, S.A is Umbrella Global Energy, S.A. (hereinafter, the "majority shareholder"), which is part of the Umbrella Global Energy Group.

On November 8, 2022, Turbo Energy S.A. with the purpose to develop a new business in the field of self-consumption of electricity, acquired 100% of the ordinary shares for a total amount of €2,250 of IM2 Energía Solar Proyecto 35 S.L.U., a company under common control by our CEO and established under the laws of the Kingdom of Spain on August 1, 2019. Following the transaction, IM2 Energía Solar Proyecto 35 S.L.U. became our wholly owned subsidiary. On November 29, 2022, we changed its name to Turbo Energy Solutions S.L.U. Since its incorporation, Turbo Energy Solutions S.L.U. has had a very insignificant activity.

On September 21, 2023, Turbo Energy, S.A. entered into an Underwriting Agreement with Titan Partners Group, a division of American Capital Partners, LLC, and Boustead Securities, LLC as the representative ("Representative") of the underwriters named on Schedule 1 thereto, relating to the Company's firm commitment underwritten initial public offering (the "Offering") of ADSs, each representing five ordinary shares of the Company, par value five cents of euro per share, of the Company (the "Underwriting Agreement"). Pursuant to the Underwriting Agreement, the Company agreed to sell 1,000,000 ADSs to the underwriters at a public offering price of $5.00 per ADS (the "Offering Price"), before underwriting discounts and commissions, and granted the Representative a 45-day over-allotment option to purchase up to an additional 150,000 ADSs, equivalent to 15% of the ADSs sold in the Offering, at the Offering Price per ADS, pursuant to the Company's registration statement on Form F-1, as amended (File No. 333-273198), that was filed with the SEC and became effective on September 21, 2023, under the Securities Act of 1933, as amended (the "Securities Act"). The Offering was closed on September 26, 2023.

On September 6, 2024 Turbo Energy established a 50%-owned subsidiary in Chile for the development of storage solutions and Energy as a services ("EaaS") model products and services. Since its incorporation, this subsidiary has had very insignificant activity.

 ****

 ****

***Merger by absorption process***

On April 8, 2021, the merger of Solar Rocket, S.L. ("Absorbing Company") and Turbo Energy, S.L.U. ("Absorbed Company") was formalized in a public deed, being registered in the Mercantile Registry of Valencia on August 9, 2021. The merger process, approved by the respective shareholders' meetings on June 30, 2020, consisted of the extinction without liquidation of the Absorbed Company, transferring its assets and liabilities en bloc to the Absorbing Company, which acquired, by universal succession, the rights and obligations of the Absorbed Company. The Company recorded the assets and liabilities contributed by the Absorbed company at the values established in the accounting regulations in force at that time. The consolidated financial statements for the year 2021 include the information required by the regulations in relation to the aforementioned merger process.

On the same date of the merger described above, the Absorbing Company changed its corporate name to Turbo Energy, S.L.U., as described above.

**NOTE 2 – MATERIAL ACCOUNTING POLICIES**

***Statement of Compliance***

The consolidated financial statements of Turbo Energy, S.A. have been prepared in accordance with International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee ("IFRS IC") applicable to companies reporting under IFRS. The consolidated financial statements comply with IFRS as issued by the International Accounting Standards Board ("IASB").

These consolidated financial statements were approved by the Board of Directors of the Company on October 23, 2025.

 ****

***Basis of Presentation***

The interim consolidated financial statements of Turbo Energy, SA have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, as filed with the Securities and Exchange Commission on April 25, 2025, contained within the Company's Annual Report on Form 20-F, which were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The report of the auditors on those financial statements was unqualified and did not contain an emphasis of matter paragraph. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year

 ****

The interim consolidated financial statements are presented in Euro, which is the Company's functional currency. Transactions in currencies other than the functional currency are recorded in accordance with the policies stated under Foreign Currency Transactions in Note 2.

***Reclassification***

Certain amounts from prior period have been reclassified to conform to the current period presentation. These reclassifications had no impact on reported operating and net loss.

***Revenue Recognition***

The Company designs, develops, and distributes equipment for the generation, management and storage of photovoltaic energy. Our energy storage products are managed from the cloud and through the inverter of the installation by an advanced software system which is optimized by artificial intelligence ("AI"). The key advantage is that our products, when compared to conventional battery storage systems, reduce electricity costs and protect the installation from power outages.

Historically, the Company's revenue has been primarily generated from sales of inverters, batteries, and photovoltaic modules to installers and other distributors for residential consumers under individual customer purchase orders, some of which have underlying master sales agreements that specify terms governing the product sales. However, since 2022, we have shifted our focus on developing and commercializing all-in-one, AI-optimized solar energy storage systems under the brand name *SUNBOX* with applications in the global residential (*SUNBOX Home* and *SUNBOX Home Lite*), commercial and industrial (*SUNBOX Industry*) and utility-scale (*SUNBOX Utility*) markets.

The Company recognizes such revenue at the point in time when control of the products is transferred to the customer at the estimated net consideration for which collection is probable, taking into account the customer's rights to unit rebates, and rights to return unsold product.

Transfer of control occurs either when products are shipped to or received by the distributor or direct customer, based on the terms of the specific agreement with the customer, if the Company has a present right to payment and transfer of legal title and the risks and rewards of ownership to the customer has occurred. For most of the Company's product sales, transfer of control occurs upon shipment to the distributor or direct customer. In assessing whether collection of consideration from a customer is probable, the Company considers the customer's ability and intention to pay that amount of consideration when it is due. Payment of invoices is due as specified in the underlying customer agreement, typically 30 to 60 days from the invoice date, which occurs on the date of transfer of control of the products to the customer.

Since payment terms are less than a year, the Company has elected the practical expedient and does not assess whether a customer contract has a significant financing component.

A five-step approach is applied in the recognition of revenue: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when the Company satisfies a performance obligation. Customer purchase orders plus the underlying master sales agreements are considered to be contracts with the customer for purposes of applying the five-step approach.

Returns under the Company's general assurance warranty of products have not been material historically and warranty-related services are not considered a separate performance obligation under the customer orders.

Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized upon transfer of control of the products to the customer. The Company has also elected to record sales commissions when incurred, as the period over which the sales commission asset would have been recognized is less than one year.

 ****

***Concentration of Revenue by Customer***

For the six months ended June 30, 2025 and 2024, there was one customer who comprised greater than 10% of the Company's revenue, which represented 13% and 15% of the Company's revenue, respectively.

***Cash and Cash Equivalents***

 ****

Cash consists of highly liquid instruments purchased with an original maturity of three months or less. As of June 30, 2025 and December 31, 2024, the Company had cash of €1,364,060 and €2,384,625, respectively. As of June 30, 2025 and December 31, 2024, the Company had no cash equivalents.

The Company minimizes the concentration of credit risk associated with its cash by maintaining its cash with high-quality insured financial institutions. However, cash balances in excess of the Spanish government insured limit (Fondo de Garantía de Depósitos (FDG)) of €100,000 are at risk.

***Accounts Receivable***

 ****

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in its existing accounts receivable.

The Company will run credit checks on all customers that request term payment.

***Inventories***

Inventories are valued at their acquisition cost, production cost or net realizable value, whichever is lower. Discounts for prompt payment are included as a lower price, whether or not they appear on the invoice and assigning value to its inventories. The Company adopts the weighted average price method.

Net realizable value represents the estimated sales price less all estimated costs that will be incurred in the process of commercialization, sales and distribution.

The Company makes the appropriate valuation adjustments, recording impairment expense when the net realizable value of the inventories is less than their acquisition cost.

***Property and Equipment***

Property and equipment is recognized and subsequently measured at cost less accumulated depreciation and any accumulated impairment losses, if any. When components of property and equipment have different useful lives they are accounted for separately. Depreciation is provided at rates which are calculated to write off the assets over their estimated useful lives as follows:

Furniture 10 years straight line <br> Tools and machinery 4 years straight line <br> Right-of-use assets Over term of the lease

***Intangible Assets***

Acquired intangible assets are initially measured at cost. Following the initial recognition, intangible assets are measured at cost less any accumulated amortization and any impairment losses. The useful lives of intangible assets are either definite or indefinite. Intangible assets that have a finite useful life are amortized over the assessed useful economic life and are assessed for impairment when there are any indicators present that the intangible asset may be impaired. The Company reviews the amortization period and method at least annually, and any changes are treated as changes in accounting estimates and applied prospectively.

Computer applications and webpages are amortized over estimated useful lives of three years and software is amortized over estimated useful lives of five years.

***Leases***

 ****

The determination of whether an arrangement is, or contains, a lease is based on the substance of the agreement on the inception date.

As a lessee, the Company recognizes a lease obligation and a right-of-use asset in the statements of financial position on a present-value basis at the date when the leased asset is available for use. Each lease payment is apportioned between a finance charge and a reduction of the lease obligation. Finance charges are recognized in finance cost in the statements of income and comprehensive income. The right of-use assets are depreciated over the shorter of its estimated useful life and the lease term on a straight-line basis.

Lease obligations are initially measured at the net present value of the following lease payments:

● fixed payments (including in-substance fixed payments), less any lease incentives;

● variable lease payment that are based on an index or a rate;

● amounts expected to be payable under residual value guarantees;

● the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and

● payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments are discounted using the interest rate implicit in the lease, or if this rate cannot be determined, the Company's incremental borrowing rate. Right-of-use assets are initially measured at cost comprising the following:

● the amount of the initial measurement of the lease obligation;

● any lease payments made at or before the commencement date less any lease incentives received; and

● any initial direct costs and rehabilitation costs.

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the statements of income and comprehensive income. Short-term leases are leases with a lease term of 12 months or less.

***Share Capital***

Ordinary shares are classified as equity, net of transaction costs directly attributable to the issue of ordinary shares.

Ordinary shares issued for consideration other than cash are based on their market value at the date the ordinary shares are issued.

 **

***Restricted Stock Units***

 **

The 2023 Equity Incentive Plan (the "Plan") administrator may award restricted stock units which represent the right to receive common stock at a future date in accordance with the terms of such grant upon the attainment of certain conditions specified by the Plan administrator. Restrictions or conditions could include, but are not limited to, the attainment of performance goals, continuous service with the Company or its subsidiaries, the passage of time or other restrictions or conditions. The Plan administrator determines the persons to whom grants of restricted stock units are made, the number of restricted stock units to be awarded, the time or times within which awards of restricted stock units may be subject to forfeiture, the vesting schedule, and rights to acceleration thereof, and all other terms and conditions of the restricted stock unit awards. The value of the restricted stock units may be paid in common stock, cash, other securities, other property, or a combination of the foregoing, as determined by the Plan administrator.

***Share-Based Compensation***

The Company accounts for share-based compensation under the fair value method in accordance with IFRS 2, "Share-based Payment," which requires all such compensation to employees and non-employees to be calculated based on its fair value of the equity instrument at the grant date and recognized in the earnings over the requisite service or vesting period. (See Note 14)

***<u>Liquidity</u>***

The Company has incurred a net loss of €1,397,715 during the six months ended June 30, 2025. However, the Company successfully completed its IPO on the Nasdaq in September 2023, whereby it raised €3.8 million, net of expenses related to the process. In addition, the Company has entered into several agreements with strategic clients, which will provide the necessary liquidity to support its operations and strengthen its financial position in the short and medium term.

The Company finds itself in a sector where many industry research studies and forecasts have projected large exponential growth in the coming years. Turbo Energy is a consolidated company with more than 10 years of proven experience. In the past three years, we have been making significant investments in research and development to help ensure that we are well positioned to present the markets we serve with highly differentiated value propositions when compared to other companies operating in the solar energy storage sector. To that end, our R&D investments have yielded the commercialization of proprietary, patented and patent pending hardware offerings, which include our line of all-in-one *SUNBOX* solar energy storage solutions designed for residential, commercial and industrial and utility-scale applications. In addition, we have pioneered leading edge software solutions, which incorporate our advanced AI-powered capabilities for energy management and optimization.

The Company's existing cash resources are expected to provide sufficient funds to carry out the Company's planned operations and expansion plan for more than 12 months. Also, the Company is part of the Umbrella Global Energy Group, where its principal company, the majority shareholder of Turbo Energy, has explicitly expressed its full support to carry out its operational development, in the event such support is needed.

 ****

***Provisions***

Provisions are recognized when there is a present legal or constructive obligation as a result of a past event, for which it is probable that a transfer of economic benefits will be required to settle the obligation, and where a reliable estimate can be made of the amount of the obligation. Provisions are discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability, if material. Where discounting is used, the increase in the provision due to passage of time ("accretion expense") is recognized as an expense on the statements of income and comprehensive income.

***Income Taxes***

Income tax expense comprises current and deferred tax. Deferred tax is recognized in the statements of income and comprehensive income except to the extent that they relate to items recognized directly in equity or in other comprehensive income or loss.

Current income tax is the expected tax payable or receivable in respect of the taxable income or loss for the period, using income tax rates enacted or substantively enacted at the reporting date, and any adjustments to tax payable in respect of previous periods.

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their related tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business acquisition or affects tax or accounting profit. The deferred tax assets and liabilities have been measured using substantively enacted tax rates that will be in effect when the amounts are expected to settle. Deferred tax assets are only recognized to the extent that it is probable that they will be able to be utilized against future taxable income. The assessment of the probability of future taxable income in which deferred tax assets can be utilized is based on the Company's latest approved forecast, which is adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax loss or credit. If a positive forecast of taxable income indicates the probable use of a deferred tax asset, especially when it can be used without a time limit, that deferred tax asset is usually recognized in full. The recognition of deferred tax assets that are subject to economic limits or uncertainties are assessed individually by management based on the specific facts and circumstances.

Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets or liabilities are recognized as a component of income or expense in the statements of income and comprehensive income, except where they relate to items that are recognized in other comprehensive income or loss or directly in equity.

***Foreign Currency Transactions***

 ****

The functional currency used by the Company is the Euro. Consequently, operations in currencies other than the Euro are considered to be denominated in foreign currency and are recorded at the exchange rates in force on the dates of the operations.

At year-end, monetary assets and liabilities denominated in foreign currency are converted by applying the exchange rate on the balance sheet date. The profits or losses revealed are charged directly to the profit and loss account for the year in which they occur.

On each balance sheet date, monetary assets and liabilities in foreign currency are converted at the rates in force on the closing date. Non-monetary items in foreign currency measured in terms of historical cost are converted at the exchange rate on the date of the transaction.

The exchange differences of the monetary items that arise both when liquidating them and when converting them at the closing exchange rate, are recognized in the results of the year, except those that are part of the investment of a business abroad, which are recognized directly in equity net of taxes until the time of its disposal.

***Income (Loss) Per Share***

Basic income (loss) per share is calculated by dividing the income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding in the period. For all periods presented, the income attributable to ordinary shareholders equals the reported income attributable to owners of the Company.

Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of ordinary shares outstanding for the calculation of diluted income per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase ordinary shares at the average market price during the period.

For the six months ended June 30, 2025 and 2024, restricted stock units were potentially instruments and were not included in the calculation of diluted loss per share as their effect would be antidilutive.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **(Ordinary Shares)** | **(Ordinary Shares)** | **(Ordinary Shares)** | **(Ordinary Shares)** |
| Restricted Stock Units |  | 1727742 |  | 1780328 |

---

***Impairment of Non-Financial Assets***

At the end of each reporting period, the Company reviews the carrying amounts of its non-financial assets to determine whether there is any indication that the carrying amount is not recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Management assesses impairment of non-financial assets such as property and equipment and intangible assets. In assessing impairment, management estimates the recoverable amount of each asset or cash generating unit ("CGU") based on expected future cash flows. The Company has applied judgment in its assessment of the appropriateness of the determination of CGU's. When measuring expected future cash flows, management makes assumptions about future growth of profits which relate to future events and circumstances. Actual results could vary from these estimated future cash flows. Estimation uncertainty relates to assumptions about future operating results and the application of an appropriate discount rate.

***Financial Instruments***

**<u>Financial Assets</u>**

 **

Financial assets are classified as either financial assets at fair value through profit and loss ("FVTPL"), amortized cost, or fair value through other comprehensive income ("FVTOCI"). The Company determines the classification of its financial assets at initial recognition.

**<u>Classification and Measurement</u>**

 ****

Classification determines how financial assets and financial liabilities are accounted for in financial statements and, in particular, how they are measured on an ongoing basis. IFRS 9 *Financial Instruments* approach for the classification of financial assets is driven by cash flow characteristics and the business model in which an asset is held. This single, principle-based approach replaces prior rule-based requirements. The model also results in a single impairment model being applied to all financial instruments.

Financial assets at FVTPL

Financial assets carried at FVTPL are initially recorded at fair value, and transaction costs are expensed in the statements of income and comprehensive income. Realized and unrealized gains and income arising from changes in the fair value of the financial asset held at FVTPL are included in the statements of income and comprehensive income in the period in which they arise. The Company has classified cash as FVTPL.

Financial assets at FVTOCI

Financial assets at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently, they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. There are no financial assets classified as FVTOCI.

Financial assets at amortized cost

Financial assets at amortized cost are initially recognized at fair value, net of transaction costs, and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. The Company has classified accounts receivable and amounts due from related parties at amortized cost.

Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred.

**<u>Financial Liabilities</u>**

 ****

Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. The Company determines the classification of its financial liabilities at initial recognition.

Financial liabilities are classified as measured at amortized cost, net of transaction costs unless classified as FVTPL. The Company's accounts payable and accrued liabilities, amounts due to related parties, lease liabilities and bank loans are classified as measured at amortized cost.

The Company's bank loans were classified as measured at amortized cost at June 30, 2025 and December 31, 2024. During the six months ended June 30, 2025 and 2024, the Company incurred €34,392 and €46,180 of interest on bank loans, respectively.

**<u>Fair Value Measurement</u>**

Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value:

● Level 1 – defined as observable inputs such as quoted prices in active markets;

● Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

● Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The fair value measurement is categorized in its entirety by reference to its lowest level of significant input. Fair value is based on estimated cash flows, discounted at interest rates for similar instruments.

The carrying amounts shown on the Company's financial instruments including cash, accounts receivable, inventories, accounts payable and accrued liabilities approximate their fair value (Level 1) due to the short-term maturities of these instruments.

**<u>Impairment of Financial Assets</u>**

 ****

The Company assesses at each statement of financial position date whether there is objective evidence that a financial asset or group of financial assets is impaired.

The Company recognizes expected credit losses ("ECL") for accounts receivable based on the simplified approach. The simplified approach to the recognition of expected losses does not require the Company to track the changes in credit risk; rather, the Company recognizes a loss allowance based on lifetime expected credit losses at each reporting date from the date of the account receivable.

The Company measures expected credit loss by considering the risk of default over the contract period and incorporates forward-looking information into its measurement. ECLs are a probability-weighted estimate of credit losses.

ECLs are measured as the difference in the present value of the contractual cash flows that are due to the Company under the contract, and the cash flows that the Company expects to receive. The Company assesses all information available, including past due status, and forward-looking macro-economic factors in the measurement of the ECLs associated with its assets carried at amortized cost.

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

***New Accounting Pronouncements***

The following accounting standards and amendments have been issued by the IASB or the International Financial Reporting Interpretations Committee that are not yet effective as of the date of the Company's consolidated financial statements. The Company intends to adopt such standards upon the mandatory effective date.

***Recently Adopted Accounting Standards***

*Classification of Liabilities as Current or Non-current (Amendments to IAS 1)*

The amendments to IAS1 provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date. These amendments are effective for reporting periods beginning on or after January 1, 2023. The adoption of the amendments to IAS1 has not had a material effect on the Company's statements and disclosures.

**NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS**

The preparation of these consolidated financial statements in accordance with IFRS requires management to make estimates and judgments that affect the recognition, measurement and disclosure of amounts reported in these consolidated financial statements and accompanying notes. The reported amounts and note disclosures are determined using management's best estimates based on assumptions that reflect the most probable set of economic conditions and planned courses of action. Actual results may differ from such estimates. These judgments, estimates and assumptions are reviewed regularly.

The following are significant management judgments, estimates and assumptions used in applying the accounting policies of the Company that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses:

***Leases***

 ****

The Company exercises judgment in determining the approximate lease term on a lease-by-lease basis. The Company considers all facts and circumstances that may create an economic incentive to exercise renewal options and also evaluates the economic incentive related to the continuation of existing leaseholds. The Company is also required to estimate specific criteria in order to estimate the carrying amount of right-of-use assets and lease liabilities including the incremental borrowing rate and effective interest rate.

 ****

***Valuation of Accounts Receivable***

Management monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the individual trade balances will be paid. Credit risks for outstanding customer receivables are regularly assessed and allowances are recorded for estimated losses, if required.

***Valuation of Inventories***

Management makes estimates of future customer demand for products when establishing appropriate provisions for inventory obsolescence. In making these estimates, management considers the age of inventory and profitability of recent sales.

***Recoverability of Income Taxes***

 ****

The measurement and assessment of income tax assets and liabilities requires management to make judgments in the interpretation and application of the relevant tax laws and estimates of the Company's abilities to utilize losses carried forward to offset taxes payable on future taxable income. The actual amount of income taxes only becomes final upon filing and acceptance of the tax return by the relevant tax authorities, which occurs subsequent to the issuance of the financial statements.

***Useful Life of Property and Equipment***

 ****

Changes in the intended use of property and equipment as well as changes in technology or economic conditions may cause the estimated useful life of these assets to change. The change in useful lives could impact the depreciation expense and carrying value of property and equipment.

 

***Useful Life of Intangible Assets***

 ****

Changes in the intended use of intangible assets with determinable useful lives as well as changes in technology or economic conditions may cause the estimated useful life of these assets to change. The change in useful lives could impact the amortization expense and carrying value of intangible assets.

***Terms and Conditions of Restricted Stock Units***

Management determines the terms and conditions of Restricted Stock Units ('RSU"), including the vesting criteria, the form and timing of payment, the time within which RSU may be subject to forfeiture and rights to acceleration thereof.

**NOTE 4 – ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES, NET**

Accounts receivable and other receivables as of June 30, 2025 and December 31, 2024 are summarized as below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Customers by sales provision of services | € | 1389132 | € | 3360994 |
| VAT receivable |  | 80561 |  | 41242 |
| Others |  | 37209 |  | 39460 |
|  | € | 1506902 | € | 3441696 |
| Allowance for doubtful accounts |  | (515564) |  | (515564) |
|  | € | 991338 | € | 2926132 |

---

As of June 30, 2025 and December 31, 2024, the allowance for doubtful accounts was €515,564. During the six months ended June 30, 2025 and 2024, the Company recorded bad debt expense of €0 and €143,483 and bad debt recovery of €0 and €0, respectively.

**NOTE 5 – INVENTORIES**

As of June 30, 2025 and December 31, 2024, the Company had finished goods of €2,588,272 and €1,951,822, respectively.

During the six months ended June 30, 2025 and 2024, the Company recorded provision on slowing moving inventory in the statements of operations of €0 and €49,362, respectively, and recovery on provision on slowing moving inventory in the statements of operations of €402,908 and €312,563, respectively.

The Company outsourced the management of inventories to a third party with all the inventories located in a warehouse owned by the third party. The Company pays a monthly fee to the warehouse company for insurance coverage of the inventories, as stated in the agreement between both parties.

**NOTE 6 – PREPAID EXPENSE**

Prepaid expense as of June 30, 2025 and December 31, 2024 are summarized as below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Advancement to suppliers for inventory | € | 1313161 | € | 771863 |
| Advancement for PP&E under construction |  | 11683 |  | 11683 |
| Conference |  | 259934 |  | - |
| Insurance |  | - |  | 219007 |
| Security deposits and others |  | 16471 |  | 17831 |
|  | € | 1601249 | € | 1020384 |

---

**NOTE 7 – INVESTMENTS**

As of June 30, 2025 and December 31, 2024, the Company had short-term investment of €52,050, comprised of a short-term commercial deposit of €44,050 with an assembling vendor and a short-term commercial deposit with a sales company of €8,000. During the six months ended June 30, 2025 and 2024, the Company recognized interest income of €3,457 and €32,525 from the investments, respectively.

**NOTE 8 – PROPERTY AND EQUIPMENT**

Property and equipment as of June 30, 2025 and December 31, 2024 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Furniture | € | 66127 | € | 65118 |
| Laboratory Photovoltaic Installation |  | 223340 |  | 232806 |
| Tools and Machinery |  | 15838 |  | 7838 |
| Computer |  | 14915 |  | 14915 |
|  |  | 320220 |  | 320677 |
| Accumulated depreciation |  | (43287) |  | (46815) |
|  | € | 276933 | **€** | 273862 |

---

During the six months ended June 30, 2025 and 2024, the Company acquired property and equipment of €9,008 and €1,996, respectively. During the six months ended June 30, 2025 and 2024, the Company recorded depreciation expense of €5,937 and €5,829, respectively.

**NOTE 9 – INTANGIBLE ASSETS**

Intangible assets as of June 30, 2025 and December 31, 2024 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Software development | € | 111443 | € | 1563923 |
| Software SKN1 |  | 248419 |  | 248419 |
| Software SKN2 |  | 1248576 |  | - |
| Computer application |  | 33755 |  | 33755 |
| Research and Development Prototypes |  | 654866 |  | - |
| Web page |  | 6010 |  | 6010 |
|  |  | 2303069 |  | 1852107 |
| Amortization |  | (187895) |  | (139132) |
|  | € | 2115174 | € | 1712975 |

---

During the six months ended June 30, 2025 and 2024, the Company made additions to other intangible developments of €450,962 and €0, respectively. Other intangible developments refer to R&D projects, mainly the new *Turbo Energy App* software platform and the new *SUNBOX* prototypes.

During the first semester of 2025, Turbo Energy had ready and already in use the new *Turbo Energy App* software platform SKN2, as well as the first beta units already in use of the new *SUNBOX* energy storage solution developed for the U.S. market. Software development of €1,452,479 was transferred to Software SKN2 upon completion of the development.

During the six months ended June 30, 2025 and 2024, the Company recorded amortization expense of €48,763 and €24,842, respectively. The Company evaluated intangible assets for impairment for the six months ended June 30, 2025 and determined that there are no impairment losses.

**NOTE 10 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

Accounts payable and accrued labilities as of June 30, 2025 and December 31, 2024 are summarized as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Trade payable | € | 1885115 | € | 2024811 |
| VAT payable |  | 130088 |  | 56368 |
| Payroll taxes payable |  | 65750 |  | 56899 |
| Customer deposits | | 96,679 | | 772,740 |
|  | € | 2,177,632 | € | 2,910,818 |

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**NOTE 11 – RELATED PARTY TRANSACTIONS**

Amount due from (to) as of June 30, 2025 are summarized as follows:

Due from related parties:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ultimate** | **Ultimate** | **Senior** | **Senior** | **Other group** | **Other group** | | |
|  | **partner** | **partner** | **partner** | **partner** | **companies** | **companies** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;Credits pending collection | € | - | € | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | € | 16908 | € | 16908 |
| &nbsp;&nbsp;&nbsp;Long-term investment |  | - |  | 167489 |  | 112725 |  | 280214 |
| &nbsp;&nbsp;&nbsp;Trade receivables |  | 97 |  | - |  | 177985 |  | 178235 |
| **Total** | **€** | **97** | **€** | **167489** | **€** | **344221** | **€** | **511807** |

---

Due to related parties:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Senior** | **Senior** | **Other group** | **Other group** | | |
|  | **Ultimate**<br>**partner** | **partner** | **partner** | **companies** | **companies** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;Credits pending to pay | € | € | (996266) | € | (784) | € | (997050) |
| &nbsp;&nbsp;&nbsp;Credits pending collection |  |  | - |  | - |  | - |
| &nbsp;&nbsp;&nbsp;Trade payable |  |  | (867) |  | - |  | (867) |
| **Total** | **€** | **€** | **(997133)** | **€** | **(784)** | **€** | **(997917)** |

---

Amount due from (to) as of December 31, 2024 are summarized as follows:

Due from related parties:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ultimate** | **Ultimate** | | **Other group** | **Other group** | | |
|  | **partner** | **partner** | **Senior**<br>**partner** | **companies** | **companies** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;Credits pending collection | € | - | € | € | 16908 | € | 16908 |
| &nbsp;&nbsp;&nbsp;Long-term investment |  | - |  |  | 112725 |  | 112725 |
| &nbsp;&nbsp;&nbsp;Trade receivables |  | 250 |  |  | 116337 |  | 116587 |
| **Total** | **€** | **250** | **€** | **€** | **245970** | **€** | **246220** |

---

Due to related parties:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Senior** | **Senior** | **Other group** | **Other group** | | |
|  | **Ultimate**<br>**partner** | **partner** | **partner** | **companies** | **companies** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;Credits pending to pay | € | € | (1900000) | € | (784) | € | (1900784) |
| &nbsp;&nbsp;&nbsp;Credits pending collection |  |  | 164380 |  | - |  | 164380 |
| &nbsp;&nbsp;&nbsp;Trade payable |  |  | (2196) |  | (53445) |  | (55641) |
| **Total** | **€** | **€** | **(1737816)** | **€** | **(54229)** | **€** | **(1792045)** |

---

All the amounts due to and from related parties are unsecured, non-interest bearing and due on demand, except for the loan agreement from Umbrella Global Energy, S.A. of €3,800,000. This five-year loan was formalized and signed on June 30, 2023, with a market interest rate of 6.25% per year, payable bi-annually. During the six months ended June 30, 2025 and 2024, Turbo Energy received proceed from the loan of €0 and €380,000, respectively. During the six months ended June 30, 2025 and 2024, Turbo Energy repaid €903,734 and €1,300,000, respectively. Also, during the year ended December 31, 2024, €600,000 of the loan was converted to partner contribution. As of June 30, 2025 and December 31, 2024, the loan amount was €996,226 and €1,900,000, respectively. During the six months ended June 30, 2025 and 2024, a total amount of €40,627 and €107,277 had been paid for interest, respectively.

Transactions with related parties during the six months ended June 30, 2025 and 2024 were summarized as follows:

**Six Months Ended June 30, 2025** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Senior** | **Senior** | **Other group** | **Other group** | | |
|  | **Ultimate**<br>**partner** | **partner** | **partner** | **companies** | **companies** | **Total** | **Total** |
| Sales | € | € | - | € | 410342 | € | 410342 |
| \*Services received |  |  | 521698 |  | - |  | 521698 |
| **Total** | € | € | (521698) | € | 410342 | € | (111356) |

---

\* Comprised of selling and administrative – related parties of €356,912, salaries and benefits – related parties of €124,159 (including stock-based compensation of €63,682 from RSU) and interest expense – related parties of €40,627.

**Six Months Ended June 30, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Senior** | **Senior** | **Other group** | **Other group** | | |
|  | **partner** | **partner** | **companies** | **companies** | **Total** | **Total** |
| Sales | € | - | € | 68980 | € | 68980 |
| \*Services received |  | 467410 |  | - |  | 467410 |
|  | **€** | **(467410)** | **€** | **68980** | **€** | **(398430)** |

---

\* Comprised of selling and administrative – related parties of €426,545 and salaries and benefits – related parties of €40,865 which includes stock-based compensation of €32,911 from RSU grant.

Our related party transactions during the six months ended June 30, 2025 include sales of products or services made to or purchases of products or services from affiliated group companies that are under common control and to associates of such group companies. These transactions include income accrued from the commercial activities of our Company. The purchases relate to merchandise that we sell in its normal course of commercial operations.

During the six months ended June 30, 2025 and 2024, the Company made payment to the related parties of €907,213 and €1,701,584, respectively. During the six months ended June 30, 2025 and 2024, the Company received advancement from related parties of €370 and €400,323, respectively.

Umbrella Global Energy, S.,A., as the holding company of the group, assumes all structural costs such as those related to human resources, licenses, legal, tax, labor, marketing and other generic structural costs. A margin of 13% is applied to these costs and the resulting amount is distributed to the four most significant companies in the group based on their estimated revenue in the monthly management fees.

During the six months ended June 30, 2025 and 2024, the Company incurred management fees to Umbrella Global Energy, S.A. of €350,000 and €420,000, respectively.

No compensation has been paid to the executives under Crocodile Investment SLU. The Company expects to continue with the same allocation structure in the future.

**NOTE 12 – DEBT BOND**

On August 26, 2024, the Company entered into an agreement with Enerfip, a leading France-based crowdfunding platform dedicated to renewable energy projects and regulated by The French Financial Markets Authority and Prudential Control and Resolution Authority (the "Enerfip Agreement"). Pursuant to the Enerfip Agreement, the Company closed on subscriptions by European individual investors, raising total gross proceeds of €2,533,520 (approximately US$1,647,637) through a 36-month simple debt bond with an interest rate of 8.75%. During the six months ended June 30, 2025, the Company received proceed from debt bond of €1,667,638 and made repayment of debt bond of €126,676. As of June 30, 2025 and December 31, 2024, the debt bond was $2,406,844 and 865,882, respectively.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Debt bond | € | 2406844 | € | 865882 |
| less: current portion |  | (253352) |  | (91411) |
|  | € | 2153492 | € | 774471 |

---

During the six months ended June 30, 2025 and 2024, interest expense totaled €92,733 and €0, respectively. As of June 30, 2025 and December 31, 2024, the accrued interest was €38,337 and €14,901, respectively.

**NOTE 13 – BANK LOANS**

Bank loans as of June 30, 2025 and December 31, 2024 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Bank loans** | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Bank loans | € | 382 | € | 90756 |
| Lines of credit |  | 4555245 |  | 4279193 |
|  |  | 4555627 |  | 4369949 |
| less: current portion |  | (4555627) |  | (4369949) |
|  | € | - | € | - |

---

The terms and conditions of outstanding bank loans are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Face** | **Face** | |
| <br>**Bank Loans** |<br>**Currency** | **Nominal**<br>**interest rate** | **Year of**<br>**maturity** | **Value** | **Value** | **Carrying**<br>**Amount** |
| Bankia SA | EUR | 1.50% | 2025 |  | 400000 |  |
| Targobank SA | EUR | 1.87% | 2025 |  | 100000 |  |
| Banco de Sabadell SA | EUR | 1.50% | 2025 |  | 250000 |  |
| Liberbank | EUR | 1.55% | 2025 |  | 170000 |  |
|  |  |  |  | € | 920000 | € |

---

During the six months ended June 30, 2025 and 2024, the Company incurred bank loan interest expense of €336 and €4,085, respectively.

The Company's obligations are secured by substantially all of the assets of the Company.

In addition, the Company maintains the following lines of credit:

**As of June 30, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **June 30,** | **June 30,** |
| <br>**Line of credit** | **Credit <br> Limit** | **Credit <br> Limit** | <br>**Nominal<br> interest rate** | <br>**Maturity** | **2025<br> Carrying<br> Value** | **2025<br> Carrying<br> Value** |
| Caixabank | € | 2500000 | 0.60% +Euribor | 3/25/2025 |  | (2356856) |
| BBVA |  | 1000000 | 1.90% + Euribor | 12/22/2025 |  |  |
| BBVA |  | 570000 | 1.90% + Euribor | 12/22/2025 |  | (1294656) |
| Bankinter |  | 2690000 | 0.90% + Euribor | 3/20/2025 |  | (903733) |
|  | € | 6760000 |  |  | € | (4555245) |

---

The company is currently in default for the lines of credit matured in March 2025 and in the process of negotiating and converting between short term to long term the financing agreements with the aim of strengthening its financial structure and supporting its ongoing projects. These efforts are intended to secure the resources necessary to maintain the company's sustainability and growth.

**As of December 31, 2024** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **December 31,** | **December 31,** |
| | | | | | **2024** | **2024** |
| | **Credit** | **Credit** | | | **Carrying** | **Carrying** |
| <br>**Line of credit** | **Limit** | **Limit** | <br>**Nominal**<br>**interest**<br>**rate** | <br>**Maturity** | **Value** | **Value** |
| Caixabank | € | 2500000 | 0.60% + Euribor | 3/25/2025 | € | 2455013 |
| Sabadell |  | 2400000 | 1.20% + Euribor | 2/8/2025 |  | 196576 |
| BBVA |  | 1570000 | 1.90% + Euribor | 12/22/2025 |  | 992712 |
| Santander |  | 4000000 | 0.45% + Euribor | 2/28/2025 |  | 30720 |
| Bankinter |  | 2690000 | 0.90% + Euribor | 3/20/2025 |  | 494172 |
| Bankinter |  | 110000 | 0.75% + Euribor | 3/20/2025 |  | 110000 |
|  | € | 13270000 |  |  | € | 4279193 |

---

The Company has a €6.7 million facility that is unsecured and can be drawn down to meet short-term financing needs. Interest is payable at an average rate of Euribor plus 1.5 basis points. During the six months ended June 30, 2025 and 2024, the Company incurred interest expense from the line of credit of €34,056 and €42,095, respectively.

**NOTE 14 – SHARE CAPITAL**

**Authorized**

The Company has authorized 75,085,700 ordinary shares with a par value of €0.05.

**Issuances**

On September 22, 2023, the Company announced its initial public offering of 1,000,000 American Depositary Shares ("ADSs"), representing 5,000,000 ordinary shares, at a price of $5.00 per ADS to the public for a total of $5,000,000 of gross proceeds to the Company, before deducting underwriting discounts and offering expenses (the "Offering"). In connection with the Offering, the ADSs began trading on the Nasdaq Capital Market under the symbol "TURB." During December 2023, the Company issued 5,000,000 ordinary shares from the initial public offering for proceeds of €3,354,781, net of share offering costs and underwriting cost of €1,350,200.

During December 2022, we issued 50,000,000 ordinary shares (pre-stock split: 2,500,000 shares) for proceeds of €2,500,000, to our parent company, who was also our sole shareholder at that time.

The Company has reflected the issuance of ordinary shares for all periods presented due to their nominal value, relative to the Offering. The Company accounted for the proceeds as share capital in the year ended December 31, 2022. Earnings per share and ordinary shares outstanding have been retroactively reflected to show this issuance from the earliest period reported.

**Stock Split**

In February 2023, the Company effected a forward stock split of the issued and outstanding ordinary shares on a 20-for-1 basis. We increased our issued and outstanding share capital from 2,504,285 ordinary shares to 50,085,700 ordinary shares. The Commercial Registry of Valencia approved the forward stock split on February 1, 2023. The consolidated financial statements retrospectively reflected the forward stock split.

**Issued and Outstanding**

As of June 30, 2025 and December 31, 2024, the total issued and outstanding share capital consisted of 55,085,700 ordinary shares at €2,754,285, all subscribed and paid up.

**Restricted Stock Units**

On April 5, 2024, the Compensation Committee and the Board of Directors of the Company approved the grant of 1,780,328 Restricted Share Units (RSUs) which can be converted into 356,067 ADSs of the Company, representing 1,780,328 Ordinary Shares of the Company, to certain officers, directors and employees of the Company with a vesting date of January 1, 2027.

During the six months ended June 30, 2025 and 2024, the Company recorded €63,682 and €32,911 stock-based compensation expense, respectively. The stock-based compensation incurred from common stock awarded was reported under salaries and benefits – related parties in the statements of operations with share-based payment reserve of €63,682 and €32,911 recognized under reserve in the balance sheets, respectively.

During the six months ended June 30, 2025, 52,585 RSUs valued at €11,315 were forfeited.

As of June 30, 2025, the Company had 1,727,742 RSUs valued at €371,749 and 1,780,328 RSUs valued at €383,064, respectively.

A summary of activity regarding the RSUs issued was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Weighted Average** | **Weighted Average** |
|  | | **Grant Date Fair Value** | **Grant Date Fair Value** |
|  |<br> **Number of**<br>**Units** | **Per Share** | **Per Share** |
| Balance, December 31, 2023 | - | € | - |
| Granted | 1780328 |  | 0.22 |
| Vested | - |  | - |
| Forfeited | - |  | - |
| Balance, December 31, 2024 | 1780328 | € | 0.22 |
| Granted | - |  | - |
| Vested | - |  | - |
| Forfeited | (52586) |  | - |
| Balance, June 30, 2025 | 1727742 | € | 0.22 |

---

As of June 30, 2025 and December 31, 2024, the unrecognized stock-based compensation of €204,258 and €267,940 is expected to be recognized over a weighted -average period of two years and 2.5 years, respectively.

**NOTE 15 – RESERVE**

As of June 30, 2025 and December 31, 2024, reserve was €1,411,846 comprised of legal reserves and other reserves.

**Legal Reserve**

In accordance with the Capital Company Law, companies must allocate an amount equal to 10% of the profit for the year to the legal reserve until it reaches 20% of the share capital. The legal reserve may only be used to increase the share capital. Except for the above purpose and as long as it does not exceed 20% of the share capital, the legal reserve can only be used to offset losses, provided there are no other reserves available which are sufficient for this purpose. As of June 30, 2025 and December 31, 2024, it was partially constituted after the aforementioned capital increase. As of June 30, 2025 and December 31, 2024, legal reserve was €500,857.

**Other Reserve**

The Company maintains an unrestricted reserve for undistributed profits from previous years. As of June 30, 2025 and December 31, 2024, other reserves were €910,989.

**NOTE 16 – LEASES**

As of June 30, 2025 and December 31, 2024, the Company had the following lease obligations:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **Discount**<br>**Rate** | <br>**Maturity** | **2025** | **2025** | **2024** | **2024** |
| Current | 3.0 % - 4.5% | 2025-2028 | € | 19822 | € | 32367 |
| Non-current | 3.0 % - 4.5% | 2026-2028 |  | 16800 |  | 3958 |
|  |  |  | € | 36622 | € | 36325 |

---

---

| | | |
|:---|:---|:---|
| Balance - December 31, 2023 | € | 56066 |
| Lease liability additions from lease modification |  | 41944 |
| Repayment of Lease liability |  | (63996) |
| Interest expense on lease liabilities |  | 2311 |
| Balance - December 31, 2024 | € | 36325 |
| Lease liability additions |  | 42644 |
| Cancellation of lease |  | (4301) |
| Repayment of Lease liability |  | (40488) |
| Interest expense on lease liabilities |  | 2442 |
| Balance - June 30, 2025 | € | 36622 |

---

On September 8, 2020, the Company entered into a vehicle lease agreement under a four-year term and monthly lease payment of €527. The lease expired on September 8, 2024 and was fully paid off.

On June 1, 2022, the Company entered into an office lease agreement under a two-year term extensible for three years upon expiry and monthly lease payment of €3,384 during the first year and €3,492 during the second year. On April 1, 2024, the Company extended the office lease for one additional year starting from June 2024 through May 2025 with a monthly payment of €3,618.

On September 26, 2022, the Company entered into a vehicle lease agreement under a three-year term and monthly lease payment of €420.

On November 15, 2022, the Company entered into a vehicle lease agreement under a three-year term and monthly lease payment of €417. The lease was cancelled on January 1, 2025. During the six months ended June 30, 2025, the Company recognized gain from cancellation of the lease of €137.

On August 17, 2023, the Company entered into a vehicle lease agreement under a three-year term and monthly lease payment of €572.

On February 2, 2024, the Company entered into a vehicle lease agreement under a three-year term and monthly lease payment of €458.

On April 27, 2024, the Company entered into a vehicle lease agreement under a four-year term and monthly lease payment of €619.

The following table summarizes the maturity of our lease liabilities as of June 30, 2025:

---

| | | |
|:---|:---|:---|
| Year Ended December 31, |  |  |
| 2025 (excluding 6 months ended June 30, 2025) | € | 11080 |
| 2026 |  | 16923 |
| 2027 |  | 7887 |
| 2028 |  | 2476 |
| Total lease payments |  | 38366 |
| Less: financing cost |  | (1744) |
| Lease liabilities | € | 36622 |

---

As of June 30, 2025 and December 31, 2024, the Company has right-of-use assets as follows:

---

| | | |
|:---|:---|:---|
| Balance - December 31, 2023 | € | 54935 |
| Additions from lease modification |  | 41944 |
| Depreciation |  | (61568) |
| Balance - December 31, 2024 | € | 35311 |
| Additions from lease modification |  | 42644 |
| Depreciation |  | (38250) |
| Cancellation of lease |  | (4164) |
| Balance - June 30, 2025 | € | 35541 |

---

**NOTE 17 – FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

Set out below are categories of financial instruments and fair value measurements as of June 30, 2025 and December 31, 2024: ****

 ****

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Financial assets at fair value |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | € | 1364060 | € | 2384625 |
| Financial assets at amortized cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable and other receivables | € | 991338 | € | 2926132 |
| &nbsp;&nbsp;&nbsp;Amount due from related parties | € | 511807 | € | 246220 |
| Financial liabilities at amortized cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | € | 2177632 | € | 2910818 |
| &nbsp;&nbsp;&nbsp;Amount due to related parties | € | 997917 | € | 1792045 |
| &nbsp;&nbsp;&nbsp;Lease liabilities | € | 36622 | € | 36325 |
| &nbsp;&nbsp;&nbsp;Bank loans | € | 4555627 | € | 4369949 |
| &nbsp;&nbsp;&nbsp;Debt bond | € | 2406844 | € | 865882 |

---

***Liquidity Risk***

Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due in the normal course of business. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a reasonable price. Difficulty accessing the capital markets could impair the Company's capacity to grow, execute its business model and generate financial returns. The Company manages its liquidity risk by monitoring its operating requirements to ensure financial resources are available, actively monitoring market conditions and by diversifying its sources of funding and maintaining a diversified maturity profile of its debt obligations.

***Credit Risk***

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company's main credit risk relates to its cash and accounts receivable. The Company's credit risk is reduced by a broad customer base and a review of customer credit profiles.

The Company's maximum exposure to credit risk corresponds to the carrying amount for all cash and accounts receivable. Cash is held with prominent financial institutions. Accounts receivable are held with vendors in which the Company has a historically strong relationship with or related to VAT receivable.

The Company mitigates credit risk associated with its trade receivables through established credit approvals, limits and a regular monitoring process. The Company generally considers the credit quality of its financial assets that are neither past due nor impaired to be solid. Credit risk is further mitigated due to the large number of customers and their dispersion across geographic areas.

For the six months ended June 30, 2025 and 2024, there was one customer who accounted for greater than 10% of the Company's revenue, which represented 11% and 12% of the Company's revenue, respectively.

***Market Risk***

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

***Currency Risk***

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is not exposed to significant currency risk.

***Interest Risk***

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its lines of credit due to fluctuations in interest rates. The Company's bank loans and leases have fixed rates of interest resulting in limited interest rate fair value risk for the Company. The Company manages interest rate risk by negotiating financing terms in individual arrangements that are most advantageous, considering all relevant factors including credit margin, term and basis. The risk management objective is to minimize the potential for changes in interest rates to cause adverse changes in cash flows to the Company.

***Other Price Risk***

Other price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company is not exposed to other price risk.

***Legal Risks***

On April 2025, Boustead Securities, LLC ("Boustead") initiated an arbitration proceeding against Turbo Energy, S.L. ("Turbo Energy" or the "Company") before the Financial Industry Regulatory Authority ("FINRA"), Case No. 25-01072. The arbitration arises from Boustead's prior role as placement agent and underwriter in connection with the Company's initial public offering. Boustead's claims seek recovery of approximately $216,000 in cash fees and warrants for more than 96,000 shares of the Company, which Boustead alleges are due pursuant to a right of first refusal provision contained in the parties' March 7, 2022 Engagement Agreement.

On August 7, 2025, Turbo Energy filed its Answer and asserted counterclaims against Boustead, alleging, among other things, breach of contract, negligent misrepresentation, and fraud, and seeking damages and other relief. Turbo Energy's counterclaims arise from disputes concerning the calculation and payment of certain expenses and the scope and enforceability of Boustead's right of first refusal. On August 27, 2025, Boustead filed its response denying all allegations in Turbo's counterclaims and asserting affirmative defenses.

On September 18, 2025, the FINRA arbitration panel issued an order denying Boustead's motion to change the hearing location. The arbitration proceedings remain ongoing. The Company intends to vigorously pursue its counterclaims and defend against all claims asserted by Boustead. At this stage, the Company cannot predict the outcome of the arbitration or estimate any potential loss or recovery.

***Capital Management***

The Company's capital consists of share capital and reserve. The Company's capital management is designed to ensure that it has sufficient financial flexibility both in the short and long-term to support its financial obligations and the future development of the business.

The Company manages its capital with the following objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Ensuring sufficient liquidity is available to support its financial obligations and to execute its operating strategic plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Maintaining financial capacity and flexibility through access to capital to support future development of the business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Minimizing its cost of capital and considering current and future industry, market and economic risks and conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Utilizing short-term funding sources to manage its working capital requirements and long- term funding sources to match the long-term nature of the property, plant and equipment of the business.

There were no changes to the Company's approach to capital management during the six months ended June 30, 2025 and 2024. The Company is not subject to externally imposed capital requirements.

**NOTE 18 – REVENUE**

The Company's sales are derived from sales of electronic products and services. The following is the Company's revenue by geographical markets during the six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Spain | € | 4679846 | € | 3660964 |
| Europe |  | 391388 |  | 1162753 |
| Rest of the world |  | 366071 |  | 53756 |
|  | € | 5437305 | € | 4877473 |

---

During the six months ended June 30, 2025 and 2024, the Company recognized revenue of €5,437,305 and €4,877,473, of which €410,342 and €68,980 derived from related parties, respectively.

We consider related parties those companies that are part of Umbrella Energy Group.

**NOTE 19 – COST OF REVENUE**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Purchase of finished goods | € | 4143719 | € | 5375537 |
| Purchase of raw materials |  | 43602 |  | 1056 |
| Outsourcing service |  | 707 |  | 2550 |
| Inventory adjustment |  | - |  | (263201) |
|  | € | 4188028 | € | 5115942 |

---

During the six months ended June 30, 2025 and 2024, the Company incurred cost of sales of €4,188,028 and €5,115,942, of which €0 and €0 derived from related parties, respectively.

**NOTE 20 – SELLING AND ADMINISTRATIVE EXPENSES**

The Company incurred the following selling and administrative expenses during the six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Professional fees | € | 789482 | € | 903531 |
| Shipping and handling expenses |  | 166318 |  | 100251 |
| Warehouse handling |  | 35930 |  | 35667 |
| Miscellaneous operating expenses |  | 104370 |  | 133704 |
| Marketing and advertising |  | 135780 |  | 125336 |
| Leases and royalties |  | 38643 |  | 84491 |
| Insurance premiums |  | 115928 |  | 104674 |
| Repair and conservation |  | 12599 |  | 6004 |
| Supplies |  | 1962 |  | 2244 |
| Depreciation of property and equipment |  | 5938 |  | 5829 |
| Amortization of intangible assets |  | 48762 |  | 24842 |
| Amortization of right-of-use assets |  | 38250 |  | 31571 |
|  | € | 1493962 | € | 1558144 |

---

During the six months ended June 30, 2025 and 2024, the Company incurred selling and administrative expenses of €1,493,962 and €1,558,144, of which €481,071 and €426,545 derived from related parties, respectively.

**NOTE 21 – SUPPLEMENTAL CASH FLOW INFORMATION**

Set out below are non-cash investing and financing activities during the six months ended June 30, 2025 and 2024:

Non-cash investing and financing activities:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **2025** | **2025** | **2024** | **2024** |
| Reallocation of opening deficit to reserve | € | - | € | - |
| Recognition of right-of-use assets from lease modification | € | 42644 | € | 41946 |
| Derecognition of right-of-use assets | € | 4164 | € | - |

---

During the six months ended June 30, 2025 and 2024, the Company paid interest of €167,752 and €60,065, respectively, and income taxes of €0 and €252, respectively.

**NOTE 22 – SUBSEQUENT EVENTS**

***New Contracts***

On September 10, 2025, the Company announced the signing of a flagship agreement providing for Turbo Energy to power Uber's electric vehicle ("EV") fleet in Spain. At the heart of the project is Turbo Energy's proprietary, patent-pending *SUNBOX Industry* system, an innovative energy storage solution. *SUNBOX Industry* not only enables large-scale charging but also offers unique functionalities for projects with limited power availability, helping fleets overcome grid constraints that often slow the adoption of electric mobility.

In mid-September 2025, the Company announced that it has been selected by a related party under common control of Umbrella Global Energy, S.A. , the parent company of the Company, to supply and implement energy storage projects in Spain with a total capacity around 366 MWh. The projects, valued at approximately $53 million, are scheduled to be executed over the next two years. This large-scale initiative will be developed through a related group entity under an existing framework agreement with a top-tier industrial client in the construction sector. Due to confidentiality obligations, the name of the end client cannot be disclosed; however, the contract is supported by a binding commercial agreement with that client, which constitutes the basis for the group's engagement.

***New Product Launch***

In October 2025, the Company announced the expansion of its commercial and industrial storage portfolio with the launch of *SUNBOX Industry Max*, a powerful new 5 MWh energy storage system purpose-built for electro-intensive industries, alongside a customized software service designed to optimize complex industrial energy operations.

***Appointment of New Chief Financial Officer***

In October , 2025, the Company announced the appointment of Lucia Tamarit as the Company's new Chief Financial Officer, effective October 22, 2025 Ms. Tamarit has succeeded Alejandro Morangues, who stepped down from his position to pursue other career opportunities. Ms. Tamarit holds a Licentiate degree in Business Administration and Management and a Professional Specialist Degree in Auditing from the Polytechnic University of Valencia. She also completed an Erasmus program at Ghent University in Belgium. Prior to joining Turbo Energy, Ms. Tamarit served as Financial Manager at CSP Spain, a leading Spanish port operator, where she had been responsible for accounting, taxation, management control and reporting to the parent company's international CFO. She previously worked for Ernst & Young in Madrid and Valencia, gaining extensive experience in auditing multinational companies and implementing ERP systems such as SAP.

## Exhibit 99.2

**Exhibit 99.2**

**OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

**The following discussion and analysis of Turbo Energy, S.A. ("we," "our," "us," the "Company" or "Turbo Energy")'s financial condition as of June 30, 2024 and results of operations for the six months ended June 30, 2025 and June 30, 2024 should be read together with our interim consolidated financial statements and the related notes included elsewhere in this filing and our audited consolidated financial statements included in our Annual Report on Form 20-F for the year ended December 31, 2024. The following discussion contains forward-looking statements that reflect our current plans, estimates and beliefs and involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements and our past results may not be indicative of future results. Factors that could cause or contribute to such differences include those discussed below and elsewhere in this filing and in our Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission, or SEC. The forward-looking statements made in this discussion relate only to events or information as of the date on which the statements are made in this discussion. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this discussion and the documents that we reference in this discussion completely and with the understanding that our actual future results or performance may be materially different from what we expect.**

**Background**

Turbo Energy is a globally recognized pioneer of proprietary solar energy storage technologies and solutions managed through Artificial Intelligence ("AI"). Turbo Energy's elegant all-in-one and scalable, modular energy storage systems empower residential, commercial and industrial users expanding across Europe, North America and Latin America to materially reduce dependence on traditional energy sources, helping to lower electricity costs, provide peak shaving and uninterruptible power supply and realize a more sustainable, energy-efficient future.

A testament to the Company's commitment to innovation and industry disruption, Turbo Energy's introduction of its flagship *SUNBOX* – unveiled to the market in the fourth quarter of 2022 – represents one of the world's first high performance, competitively priced, all-in-one home solar energy storage systems, which also incorporates patented EV charging capability and powerful AI processes to optimize solar energy management delivered in the form of an intuitive, easy to use, cloud-based mobile app, marketed as *Turbo Energy App*.

Guided by our innovative mindset, we are endeavoring to deliver affordable, high performance solar energy storage technologies and solutions adaptable to every home, business, industrial plant and government facility on the globe. Our primary near-term growth objectives are centered on exploiting our competitive differentiation and include:

● elevating global awareness and appreciation for the clean, elegant aesthetic and robust functionality, scalability and customization of *SUNBOX* solar energy storage solutions pioneered by Turbo Energy to support residential installations *(SUNBOX Home* and *SUNBOX Home Lite),* commercial and industrial installations *(SUNBOX Industry* and *SUNBOX Industry Max),* and utility companies *(SUNBOX Utility)*; as well as the ease of *SUNBOX* installations with limited training required;

● implementing global market penetration and geographic expansion initiatives with concentration in North America, South America and Europe; and

● focusing on achieving fundamental financial strength through increased revenue, expense discipline and positive cash flow on a subsequent quarter-over-quarter basis; strengthen balance sheet through smart capital formation strategies.

**Competitive Strengths**

Our competitive strengths include the following:

●  ***Innovative Product Offerings:*** We have pioneered *SUNBOX*, an all-in-one, scalable, modular solar energy storage system. This system is enhanced by our proprietary AI-powered app, *Turbo Energy App*, which optimizes solar energy management and provides users with real-time data and predictive analytics. The inclusion of electric vehicle (EV) charging capabilities in our patented *SUNBOX EV* solution positions us uniquely in the market. Moreover, our product line, including the *SUNBOX Home*, *SUNBOX Home Lite*, *SUNBOX Industry, SUNBOX Industry Max* and *SUNBOX Utility*, caters to a wide range of customer needs from residential to industrial and utility-scale applications. This versatility in product offerings allows us to address our target market segments in a highly efficient and effective manner.

●  ***Advanced Technology Integration*:** The engagement of AI and machine learning technologies in our *Turbo Energy App* demonstrates our strong commitment to leveraging advanced technology for optimizing energy usage and providing valuable insights to users. This advanced technological capability is a significant competitive differentiator for us.

●  ***Strategic Market Expansion*:** We have a clear strategy for global market penetration and expansion, with particular focus on North America, South America and Europe. Our recently granted UL certifications in the United States signal our readiness to enter and effectively compete in the U.S. residential energy storage market with our differentiated *SUNBOX Home* solution, representing potentially significant long-term growth for our Company.

●  ***Strong R&D Focus*:** Our dedication to research and development is evident in our continuous product innovation and enhancement. This focus ensures we remain at the forefront of delivering leading-edge solar energy storage technology, raising the bar for performance and excellence in the markets we serve.

●  ***Strategic Partnerships*:** We have established strong strategic business partnerships with numerous industry leaders in electrical utilities and renewable energy, helping to greatly expand and enhance our market reach, reputation and credibility.

●  ***Experienced Leadership Team:*** Our proven and experienced leadership team possesses deep expertise in solar energy storage technologies and AI-enabled software development, which is crucial for executing our strategic initiatives successfully.

Collectively, these strengths underpin and amplify Turbo Energy's reputation as a trusted industry leader and respected technology innovator in the global solar energy storage market.

Turbo Energy is a proud subsidiary of Umbrella Global Energy, S.A., a vertically integrated, global collective of solar energy-focused companies, which is traded on the Spanish Stock Exchange under symbol "UMB."

We were organized under the laws of the Kingdom of Spain in September 2013. Our American Depository Shares (ADSs) are presently listed on the Nasdaq Capital Market under the symbol "TURB."

**General**

The unaudited condensed interim consolidated financial statements of Turbo Energy have been prepared in accordance with International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee ("IFRS IC") applicable to companies reporting under IFRS. The consolidated financial statements comply with IFRS as issued by the International Accounting Standards Board ("IASB"). The consolidated financial statements of the Company were prepared on a historical cost basis except where certain financial instruments that are required to be measured at fair value. These consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

 ****

The unaudited condensed interim consolidated financial statements are presented in Euro, which is the Company's functional currency. Transactions in currencies other than the functional currency are recorded in accordance with the policies stated under Foreign Currency Transactions in Note 2 of the accompanying financial statements.

**Recent Developments**

 ****

***Expansion of Board of Directors***

On February 11, 2025, the Company announced the appointment of Julian Groves to the Company's Board of Directors, which was approved by the Company's shareholders on December 18, 2024 at the Extraordinary General Meeting of Shareholders. Groves brings Turbo Energy extensive experience in commercial strategy, geographic market expansion, worldwide product distribution and logistics, capital formation, private equity investments and corporate governance, as well as nearly three decades of experience leading business-to-business, direct-to-consumer, retail, wholesale and ecommerce initiatives for numerous iconic global brands in both the public and private sectors.

 **

***Intellectual Property***

 **

<u>Product Patent</u>

 ****

On June 12, 2025, Turbo Energy announced that it has been granted a new patent for its innovative system designed to integrate energy storage and expand photovoltaic generation in upstream installations. The patented system provides a unique method for enhancing energy efficiency and flexibility in self-consumption solar power systems-particularly those configured to prevent surplus energy from being injected into the electrical grid.

The patent, (#iP202430282) issued by the Spanish Patent and Trademark Office, covers Turbo Energy's proprietary system and procedure that enable the addition of energy storage (retrofit) and/or new photovoltaic panels (repowering) to existing installations without requiring complex retrofitting or integration with legacy components. This breakthrough technology ensures that excess photovoltaic energy can be stored and utilized at times of reduced solar generation, significantly optimizing energy usage and minimizing reliance on the external power grid.

<u>UL Certification for U.S. SUNBOX Home</u> 

On April 1, 2025, the Company announced that it has completed one of the most rigorous safety certification processes in the United States and received Underwriters Laboratories ("UL") 5500 and 9540 certifications for its innovative *SUNBOX Home* all-in-one solar energy storage system for residential applications in the United States. The UL certification mark is one of the most widely recognized product accreditations in the U.S. and is regarded a pre-requisite for permitting and insurance purposes.

***Enerfip Crowdfunding Platform***

On August 26, 2024, Turbo Energy entered into an agreement with Enerfip, a leading France-based crowdfunding platform, providing for the Company to explore, through Enerfip's crowdfunding platform, financing from European individual investors, namely investors residing in France and Spain. If Turbo Energy's project receives acceptance and interest among investors on Enerfip's platform, the form agreed between the parties to carry out the financing would be to raise up to €2,000,000 on a first tranche through a 36-month simple debt bond, with an interest rate of 8.75% ("Crowd Bond"). The interest will be repaid semiannually. On October 28, 2024, the Company closed the issuance of the first tranche and reported on Form 6-K filed with the SEC that the yielded subscriptions amounting to gross proceeds of €914,110. The second tranche was closed on January 7, 2025, raising total gross proceeds of €619,410 (approximately US$643,666); and the third tranche closed on February 27, 2025, raising total gross proceeds of €1,000,000 (approximately US$1,078,475).

 ****

 ****

***U.S. Expansion Initiative***

On October 22, 2024, the Company announced that it has partnered with U.S.-based Connection Holdings to employ its award-winning market penetration capabilities and to leverage its extensive nationwide network of leading U.S. solar installation companies to assist Turbo Energy in introducing and winning U.S. market share for the Company's proprietary, all-in-one, AI-optimized *SUNBOX Home* solar energy storage system designed specifically for residential applications. According to the Q3 2024 industry research report released by the Solar Energy Industries Association and Wood Mackenzie, homeowners and businesses are increasingly demanding solar systems that are paired with battery storage. California's shift in net metering policy and state incentives for solar-plus-storage in other markets have driven attachment rates up in recent quarters. The report further states that by 2028, 28% of all new distributed solar capacity will be paired with storage, compared to under 12% in 2023. (*Source: https://seia.org/research-resources/solar-industry-research-data/)*

Turbo Energy's U.S. market launch will be led by a multi-month beta test, whereby Connection Holdings will coordinate the deployment of several *SUNBOX Home* system installations in residences located in key, high growth markets across the nation. Following the conclusion of the beta test and analysis of collected data and feedback from installers and homeowners, Connection Holdings is tasked with implementing a national marketing campaign designed to ramp sales of *SUNBOX Home* and help to define and refine, as necessary, the U.S.-based infrastructure needed to support anticipated market demand in the months and years to come.

***Latin American Expansion Initiative***

On March 19, 2025, Turbo Energy announced its expansion into Latin America with the formation of Turbo Energy Solutions ("TES"), a wholly owned subsidiary of the Company created to offer advanced, fully integrated, end-to-end solutions for scalable generation, storage and intelligent AI-optimized management of solar energy for commercial and industrial ("C&I") customers in Chile. Through TES, the Company has also introduced its new Energy-as-a-Service financing program, which enables C&I customers in Chile to acquire, deploy and capitalize on advanced solar energy production systems integrated with *SUNBOX Industry* and its innovative AI-powered energy management system, without the need to make large upfront investments in equipment. Customers benefit from an optimized, efficient and sustainable energy supply while also taking full economic advantage of a payment system based on *SUNBOX Industry*'s AI-powered energy management performance. The EaaS financing program represents a potentially lucrative new recurring revenue stream for Turbo Energy that is expected to fuel exponential growth for the Company as market acceptance and adoption of *SUNBOX Industry* gains momentum in the region.

On April 30, 2025, Turbo Energy announced that it had teamed with Saesa, one of Chile's largest electric utilities, to expand the deployment of smart battery systems across the Andean country. This partnership marks a significant step forward in Turbo Energy's expansion into Latin America, resulting in the completion of the companies' first joint project- the installation of a smart battery energy storage system (BESS) at the headquarters of Bayas del Sur, a leading berry producer in southern Chile. The project integrates lithium batteries with 200 kW of power and 880 kWh of storage capacity. Designed to complement Bayas del Sur's existing photovoltaic installation, the system enables the plant to optimize energy consumption, reduce fuel dependence and maintain operations during peak demand periods or grid outages.

***Introduction of SUNBOX Home Lite***

On February 26, 2025, the Company announced its official market launch of the Company's latest innovation in smart photovoltaic energy storage tailored for smaller residential installations - the *SUNBOX Home Lite*. *SUNBOX Home Lite* combines the sleek design and robust functionality of the original *SUNBOX Home* with a focus on homes requiring less than 15kh of solar energy storage. This cutting edge innovation is supported by Turbo Energy's state-of-the-art cloud-based SaaS solution, which leverages Artificial Intelligence to provide intelligent data collection, optimized stored energy management and predictive analytics which provide real-time insight into weather and electricity price forecasts, solar panel performance, energy consumption and material cost savings opportunities.

Turbo Energy has shipped 100 units to Solar360, which are available for immediate installation. A longstanding valued partner of Turbo Energy, Solar360, a joint venture of Repsol and Telefónica España, is engaged in the photovoltaic self-consumption business offering comprehensive solutions for individual customers; communities of neighbors; and companies, both SMEs and large corporations, through solar panel installations. In addition to the reach of its channels and its strength in operations and distribution, Telefónica contributes its technological expertise and IoT capabilities to provide differential optimization in the market. Repsol brings its experience in self-consumption and multi-energy in Spain, allowing them to offer customers a specific electricity rate that complements photovoltaic installations.

 ****

 **

***Contract to Power Uber's Electric Fleet in Spain***

 **

On September 10, 2025, Turbo Energy announced the signing of a flagship agreement providing for the Company to power Uber's electric vehicle ("EV") fleet in Spain. Uber Technologies, Inc. is a global technology platform that connects riders, drivers, eaters and merchants, empowering seamless mobility, delivery, and freight services across more than 70 countries and approximately 15,000 cities. Uber continues to advance urban transportation through innovation, scale and a commitment to reshaping how people move and get around.

At the heart of the project is Turbo Energy's proprietary, patent-pending *SUNBOX Industry* system, an innovative energy storage solution. *SUNBOX Industry* not only enables large-scale charging but also offers unique functionalities for projects with limited power availability, helping fleets overcome grid constraints that often slow the adoption of electric mobility. To power 10 high-capacity charging points for Uber, *SUNBOX Industry* systems were installed to create a 1 MWh / 2 MWh smart storage hub, unlocking the ability to charge over 300 vehicles even though the site's grid connection could only supply 600 kW, covering a third of the power needed to run all the chargers. By adding 1,000 kW of flexible storage capacity, *SUNBOX Industry* expanded total available power to 1.6 MW – ensuring seamless charging without overloading the grid. With built-in AI control, *SUNBOX Industry* automatically adjusts charging power based on grid supply and battery status, guaranteeing uninterrupted operation and avoiding costly downtime. This capability makes *SUNBOX Industry* an ideal solution for companies looking to electrify fleets in areas where grid capacity is limited.

 ****

***$53 Million Contract to Deploy Solar Storage Capacity Across 10 Factories***

On September 26, 2025, the Company announced that it has been selected to supply and implement energy storage projects in Spain with a total capacity of 366 MWh. The projects, valued at approximately $53 million, are scheduled to be executed over the next two years. This large-scale initiative will be developed for a major industrial group in the construction industry. Turbo Energy will provide turnkey integration of the systems, along with its AI-driven energy management platform, for deployment across more than ten industrial facilities with varying technical requirements. These systems will help the factories optimize electricity consumption, enhance operational efficiency, reduce exposure to volatile energy prices and significantly advance the electrification of its operations.

The *SUNBOX Industry* solar battery storage solution, introduced in 2024, is a patent-pending, highly scalable energy storage and management system designed for commercial and industrial facilities. It supports new solar PV deployments, expansions of existing systems, or direct rooftop connections to expand energy capacity with smart storage. Each system integrates with Turbo Energy's cloud-based AI energy management platform, which automatically mitigates electricity market volatility by purchasing energy at optimal times and prices. *SUNBOX Industry* also provides configurable backup power during outages or periods of peak demand. With scalability ranging from 30 kW to 2,000 kW in power and 30 kWh to 4,000 kWh in storage capacity, the solution offers unmatched flexibility for both isolated and grid-connected projects. Notably, Turbo Energy's brand-agnostic design allows *SUNBOX Industry* to be deployed seamlessly in existing facilities, while also enabling photovoltaic expansions to connect in direct current and share surpluses in parallel with legacy systems.

 ****

***Introduction of SUNBOX Industry Max***

On October 8, 2025, Turbo Energy announced the commercial launch of *SUNBOX Industry Max*, a powerful new 5 MWh energy storage system purpose-built for electro-intensive industries, alongside a customized software service designed to optimize complex industrial energy operations. *SUNBOX Industry Max* represents a significant evolution in industrial-scale energy storage. Its highly modular and configurable design supports multiple deployment architectures, allowing customers to tailor capacity and functionality to their specific energy profiles. The system seamlessly integrates with Turbo Energy's new AI-driven software service, enabling intelligent forecasting, dynamic load balancing and predictive asset management across distributed facilities.

The launch marks a key step in Turbo Energy's long-term strategy to expand its footprint in the global commercial and industrial market, a segment representing one of the fastest-growing opportunities within the renewable energy sector. By merging high-capacity storage technology with proprietary AI software service, Turbo Energy continues to differentiate itself as a technology-driven energy innovator focused on enabling industrial decarbonization and operational autonomy. *SUNBOX Industry Max* will debut as part of the Company's recently awarded $53 million contract covering ten large-scale industrial facilities.

 ****

***Appointment of New Chief Financial Officer***

On October 23, 2025, the Company announced the appointment of Lucia Tamarit as the Company's new Chief Financial Officer, effective October 22, 2025 Ms. Tamarit has succeeded Alejandro Morangues, who has elected to pursue other career opportunities. Ms. Tamarit holds a Licentiate degree in Business Administration and Management and a Professional Specialist Degree in Auditing from the Polytechnic University of Valencia. She also completed an Erasmus program at Ghent University in Belgium. Prior to joining Turbo Energy, Ms. Tamarit served as Financial Manager at CSP Spain, a leading Spanish port operator, where she had been responsible for accounting, taxation, management control and reporting to the parent company's international CFO. She previously worked for Ernst & Young in Madrid and Valencia, gaining extensive experience in auditing multinational companies and implementing ERP systems such as SAP. Ms. Tamarit will report directly to the Company's Chief Executive Officer.

**Results of Operations (Expressed in Euros)**

The following table presents certain financial data for the periods indicated:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** | | | |
|  | **2025** | **2025** | **2024** | **2024** | **€ Change** | **€ Change** |<br>**% Change** |
| Revenue, net | € | 5026963 | € | 4953433 | € | 73530 | 1.5% |
| Cost of Revenues |  | 4188028 |  | 5115942 |  | (927917) | (1.8)% |
| Gross profit |  | 838935 |  | (162509) |  | 1001444 | 616.2% |
| Total operating expenses |  | 2488704 |  | 2576698 |  | (87994) | (3.4)% |
| Operating loss |  | (1164274) |  | (2739207) |  | (1574933) | (57.5)% |
| Total other (income) expense |  | (233441) |  | (122124) |  | 111317 | 91.1% |
| Net loss | € | (1397715) | € | (2861331) | € | (1463616) | (51.2)% |

---

 ****

***Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024***

<u>Revenue</u>

For the comparable six-month periods ended June 30, 2025 and 2024, revenues increased 1.5% to €5,026,963 from €4,953,433, respectively. The modest improvement was largest attributable to the Company's mission-critical focus on increasing market acceptance of its line of growing proprietary *SUNBOX* energy storage solutions and related *Turbo Energy App* energy management software platform.

Since its inception through 2023, Turbo Energy's core business previously concentrated on the sale of residential solar photovoltaic equipment through its network of distributors, which had extensive reach to solar installers and marketers primarily in Spain. With the successful market launch of its *SUNBOX* line of products in 2024, the Company shifted its focus and began investing resources to increase global market penetration and achieve geographic expansion of its *SUNBOX Home* and *SUNBOX Industry* solutions in the residential and commercial/industrial renewable energy markets, which it believes represents a significantly greater growth opportunity for Turbo Energy in the long-term.

Revenues stemming from customers based in the Company's home country, Spain, totaled €3,855,274 for the first six months of 2025, representing a 5.3% increase when compared to revenues from Spanish customers of €3,660,964 for the same six months in the prior year. Revenues to customers in other European countries climbed 304.5% to €217,443 from €53,756 for the six months ended June 30, 2025 and 2024, respectively; and revenues from the rest of the world declined 66.3% to €391,388 from €1,162,753.

For the six months ended June 30, 2025 and 2024, the Company recognized revenue of €410,342 and €68,980 derived from related parties, respectively. We consider related parties those companies that are part of our parent company, Umbrella Energy Group.

<u>Cost of Revenues</u>

Cost of revenues includes purchase of finished goods and raw materials, outsourcing services and inventory adjustments. Cost of revenues for the six months ended June 30, 2025 and 2024 decreased by 18.1% to €4,188,028 from €5,115,942, respectively, due primarily to lower costs for finished goods relating to the Company's increased sales of higher margin proprietary *SUNBOX* line of products.

<u>Operating Expenses</u>

For the six months ended June 30, 2025 and 2024, operating expenses declined 3.4% to €2,488,704 from €2,576,698, respectively. Selling and administrative expenses remained relatively flat at €1,137,050 compared to €1,131,599 for the first six months of 2025 and 2024, respectively; and selling and administrative expenses – related parties also declined, falling to €356,912 from €426,545 for the same comparable period.

<u>Other Income and Expense</u>

Total other expense rose to €233,441 from €122,124 for the six months ended June 30, 2025 and 2024, respectively. The increase in other expense was primarily attributable to higher interest expense – related party and a higher foreign exchange loss, offset by lower interest income and interest expense on outstanding debt.

<u>Net Loss</u>

As a result of all the aforementioned reasons, the Company's net loss dropped 51.2% to €1,397,715, or €0.03 per ordinary share, for the six months ended June 30, 2025, when compared to a net loss of €2,861,331, or €0.06 loss per ordinary share, reported for the same six-month period in the prior year.

***Liquidity and Capital Resources***

Turbo Energy measures liquidity in terms of its ability to fund the cash requirements of its business operations, including working capital and capital expenditure needs, contractual obligations and other commitments, with cash flows from operations and other sources of funding. Our current working capital needs relate mainly to launching our new product offerings, supporting our global expansion initiatives, establishing relationships with key business partners and customers, becoming and maintaining compliance with regulatory requirements and compensation and benefits for our employees. Our recurring capital expenditures consist primarily of internally developed software costs and supporting our inventory requirements to meet the growing demand for our *SUNBOX* energy storage systems. We expect our capital expenditures and working capital requirements to increase as we expand our product offerings, acquire new customers, form partnerships in key geographic expansion regions and incur significant legal, accounting, audit, insurance and other incremental costs related to continued operations as a public company. Our ability to expand and grow our business will depend on many factors, including our working capital needs, our ability to raise additional capital and the evolution of our cash flows.

As of June 30, 2025, we had €1,364,060 in cash and cash equivalents and €52,050 in short-term investments in bank deposits. In the pursuit of our long-term growth strategy and the ongoing development of and enhancements to our solar energy storage hardware and software solutions, we sustained continuing operating losses. During the six months ended June 30, 2025, we had a net loss of €1,397,715. To fund continued losses from operations, in late 2024 and early 2025, we raised €2,533,520 in gross proceeds in connection with Enerfip, a European crowdfunding platform, through which we completed the first of what is expected to be a minimum of two rounds of debt financing. We believe we have sufficient capital on hand, coupled with positive cash flow from our operations, to effectively fund our business for the next 12 months. However, we are evaluating strategies to obtain additional funding to support our long-term growth strategies and future operations. These strategies include, but are not limited to, obtaining equity financing, issuing or restructuring debt, entering into other alternative financing arrangements and continuing to structure our operations to optimize revenue growth on a global basis. We may be unable to access further equity or debt financing when needed. As such, there can be no assurance that we will be able to obtain additional liquidity when needed or under acceptable terms, if at all. If the financing needed is not available, or if the terms of the financing are less desirable than expected, we may be forced to decrease our level of investment in new product launches, or scale back our existing operations, which could have an adverse impact on our business and financial prospects.

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***Cash Flows***

The following table summarizes our cash flows for the six-month periods ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended <br> June 30,** | **For the Six Months Ended <br> June 30,** | **For the Six Months Ended <br> June 30,** | **For the Six Months Ended <br> June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Net cash provided (used) by operating activities | € | (1339904) | € | 2332261 |
| Net cash provided by (used in) investing activities |  | (459970) |  | 60295) |
| Net cash used in financing activities |  | 799309 |  | (2517210) |
| Net change in cash and restricted cash |  | (1020565) |  | (124654) |
| Cash and restricted cash, beginning of period |  | 2384625 |  | 620531 |
| Cash and restricted cash, end of period | € | 1364060 | € | 495877 |

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**Discussion of Critical Accounting Policies and Estimations**

The preparation of the financial statements in conformity with IFRS and interpretations issued by the IFRS IC applicable to companies reporting under IFRS requires us to make estimates and judgements that affect the reported amount of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, mainly related to accounts receivables, contract assets and liabilities, fixed assets, intangibles and goodwill, accrued expenses, revenues, stock-based compensation and contingencies. We base our estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgements about the carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates. Please refer to our discussion of critical accounting policies in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023 for a discussion about those policies that we believe are the most important to the understanding of our financial condition and results of operations as such policies affect our more significant judgements and estimated used in the preparation of the financial statements included in this interim report.

**Legal Proceedings**

On April 2025, Boustead Securities, LLC ("Boustead") initiated an arbitration proceeding against Turbo Energy, S.L. ("Turbo Energy" or the "Company") before the Financial Industry Regulatory Authority ("FINRA"), Case No. 25-01072. The arbitration arises from Boustead's prior role as placement agent and underwriter in connection with the Company's initial public offering. Boustead's claims seek recovery of approximately $216,000 in cash fees and warrants for more than 96,000 shares of the Company, which Boustead alleges are due pursuant to a right of first refusal provision contained in the parties' March 7, 2022 Engagement Agreement.

On August 7, 2025, Turbo Energy filed its Answer and asserted counterclaims against Boustead, alleging, among other things, breach of contract, negligent misrepresentation, and fraud, and seeking damages and other relief. Turbo Energy's counterclaims arise from disputes concerning the calculation and payment of certain expenses and the scope and enforceability of Boustead's right of first refusal. On August 27, 2025, Boustead filed its response denying all allegations in Turbo's counterclaims and asserting affirmative defenses.

On September 18, 2025, the FINRA arbitration panel issued an order denying Boustead's motion to change the hearing location. The arbitration proceedings remain ongoing. The Company intends to vigorously pursue its counterclaims and defend against all claims asserted by Boustead. At this stage, the Company cannot predict the outcome of the arbitration or estimate any potential loss or recovery.