# EDGAR Filing Document

**Accession Number:** 0001993431
**File Stem:** 0001213900-25-101700
**Filing Date:** 2025-10
**Character Count:** 78220
**Document Hash:** 30b19a35d0d5561674cdc1f4c3cc2c42
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-101700.hdr.sgml**: 20251023

**ACCESSION NUMBER**: 0001213900-25-101700

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 112

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20251023

**DATE AS OF CHANGE**: 20251023

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Micropolis Holding Co
- **CENTRAL INDEX KEY:** 0001993431
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLE PARTS & ACCESSORIES [3714]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42550
- **FILM NUMBER:** 251413446

**BUSINESS ADDRESS:**
- **STREET 1:** 1 DAR ALKHALEEJ, WAREHOUSE 1,
- **STREET 2:** DUBAI PRODUCTION CITY, P.O BOX 500372
- **CITY:** DUBAI
- **STATE:** C0
- **ZIP:** 00000
- **BUSINESS PHONE:** 97142767008

**MAIL ADDRESS:**
- **STREET 1:** 1 DAR ALKHALEEJ, WAREHOUSE 1,
- **STREET 2:** DUBAI PRODUCTION CITY, P.O BOX 500372
- **CITY:** DUBAI
- **STATE:** C0
- **ZIP:** 00000

?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 October 2025**

**Commission File Number: 001-42550**

**Micropolis Holding Company**

**(Registrant's Name)**

**Warehouse 1, Dar Alkhaleej Building**

**Dubai Production City, Dubai, UAE**

**(Address of Principal Executive Offices)**

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

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

**Micropolis Holding Company Announces Its Interim Financial Results for the Six Months Ended June 30, 2025**

Attached hereto as Exhibit 99.1 is the unaudited financial statements of the Company for the six months ended June 30, 2025.

**INCORPORATION BY REFERENCE**

This Report on Form 6-K shall be deemed to be incorporated by reference into the registration statements on [Form F-1](http://www.sec.gov/Archives/edgar/data/1993431/000121390025089672/ea0257875-f1_micropolis.htm) (No. 333-290424) of the Company and the prospectuses incorporated therein, and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

**Financial Statements and Exhibits.**

The following exhibits are being filed herewith:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Financial results for the six months ended June 30, 2025](ea026176701ex99-1_micropolis.htm) |
| 101.INS\* | Inline XBRL Instance Document. |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

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.

---

| | | |
|:---|:---|:---|
|  | **Micropolis Holding Company** | **Micropolis Holding Company** |
| Date: October 23, 2025 | By: | */s/ Fareed Aljawhari* |
|  | Name: | Fareed Aljawhari |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

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

**Exhibit 99.1**

**MICROPOLIS HOLDING COMPANY**

**Balance Sheets** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Notes** | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  |  | **USD** | **AED** | **AED** |
| **ASSETS** |  | | | |
| **Non-current assets** |  | | | |
| Property and equipment | 5 | 1930564 | 7089030 | 4111784 |
| Intangible assets | 6 | 19386 | 71187 | 37585 |
| Right of use asset | 7 | 234871 | 862446 | 1343361 |
|  |  | 2184821 | 8022663 | 5492730 |
| **Current assets** |  |  |  |  |
| Trade receivables | 8 | 8393 | 30820 | 47250 |
| Other receivables | 9 | 283791 | 1042081 | 872080 |
| Advance Payment to Suppliers | 9 | 174208 | 639691 | 3381872 |
| Cash and cash equivalents | 10 | 4239027 | 15565708 | 47837 |
|  |  | 4705419 | 17278300 | 4349039 |
| **TOTAL ASSETS** |  | **6890240** | **25300963** | **9841769** |
| **EQUITY (DEFICIT) AND LIABILITIES** |  |  |  |  |
| **EQUITY (DEFICIT)** |  |  |  |  |
| Share capital |  |  |  |  |
| Ordinary stock, $0.0001 par value 34,888,447 and 30,000,000 shares, authorized shares 200,000,000 | 21 | 3489 | 12811 | 11016 |
| Additional paid in capital |  | 18960298 | 69622214 | 18856437 |
| Accumulated deficit |  | (16790196) | (61653598) | (49602966) |
| **TOTAL EQUITY (DEFICIT)** |  | 2173591 | 7981427 | (30735513) |
| **LIABILITIES** |  |  |  |  |
| **Non-current liabilities** |  |  |  |  |
| Contract liabilities | 14 | 3820529 | 14028981 | 14028981 |
| Employees' end-of-service benefits | 12 | 176797 | 649199 | 611777 |
| Payable for shares | 11 | 27233 | 100000 | 100000 |
| Lease liability | 15 | 43078 | 158184 | 504048 |
| **Total non-current liabilities** |  | 4067637 | 14936364 | 15244806 |
| **Current liabilities** |  |  |  |  |
| Trade and other payables | 13 | 279184 | 1025162 | 3214271 |
| Due to related parties | 11 | 170131 | 624721 | 21241387 |
| Lease liability | 15 | 199697 | 733289 | 876818 |
|  |  | 649012 | 2383172 | 25332476 |
| **Total liabilities** |  | 4716649 | 17319536 | 40577282 |
| **TOTAL EQUITY (DEFICIT) AND LIABILITIES** |  | **6890240** | **25300963** | **9841769** |

---

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

**MICROPOLIS HOLDING COMPANY**

**Statement of Comprehensive Loss**

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

(**Unaudited**)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Notes** | **June 30, 2025** | **June 30, 2025** | **June 30,**<br>**2024** |
|  |  | **USD** | **AED** | **AED** |
| Revenue | 16 | 16080 | 59044 | 32796 |
| Cost and operating expenses: |  |  |  |  |
| Cost of revenue | 17 | (8090) | (29707) | (10020) |
| Research and development | 17 | (259398) | (952509) | (1781994) |
| Administrative expenses | 17 | (2479087) | (9103199) | (8741474) |
| Marketing expenses | 17 | (427677) | (1570429) | (726740) |
| Profit distribution expenses | 17 | (7989) | (29337) | - |
| **Operating loss** |  | **(3166161)** | **(11626137)** | **(11227432)** |
| Other income | 18 | 1356 | 4978 | 17727 |
| Finance expense | 18 | (116959) | (429473) | (357443) |
| **Loss for the period** |  | (3281764) | (12050632) | (11567148) |
| Other comprehensive income |  | - | - | - |
| **Total comprehensive loss for the period** |  | **(3281764)** | **(12050632)** | **(11567148)** |
| Loss per share- basic and diluted |  | **(0.10)** | **(0.38)** | **(0.39)** |
| Weighted average number of ordinary shares outstanding - basic and diluted |  | **32052243** | **32052243** | **30000000** |

---

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

**MICROPOLIS HOLDING COMPANY**

**Statement of Changes In Equity (Deficit)**

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

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Note** | **Number of ordinary shares outstanding** | **Ordinary shares** | **Additional paid in capital** | **Accumulated deficit** | **Total** |
|  |  | | **AED** | **AED** | **AED** | **AED** |
| As at December 31, 2023 (AED) |  | 30000000 | 11016 | 17309994 | (27308549) | (9987539) |
| Fair value adjustment on origination of liability below market interest rates | 11 |  | - | 1034959 | - | 1034959 |
| Loss for the period |  | - | - | - | (11567148) | (11567148) |
| **As at June 30, 2024 (AED)** |  | **30000000** | **11016** | **18344953** | **(38875697)** | **(20519728)** |
| As at December 31, 2024 (AED) |  | 30000000 | 11016 | 18856437 | (49602966) | (30735513) |
| Fair value adjustment on origination of liability below market interest rates | 11 |  | - | 28433 | - | 28433 |
| Loss for the period |  |  | - | - | (12050632) | (12050632) |
| Proceeds from ordinary share issuance, net | 21 | 3875000 | 1423 | 50737716 | - | 50739139 |
| Ordinary stock issued for cashless exercise of warrants | 21 | 1013447 | 372 | (372) | - | - |
| **As at June 30, 2025 (AED)** |  | **34888447** | **12811** | **69622214** | **(61653598)** | **7981427** |
| **As at June 30, 2025 (USD)** |  | **34888447** | **3489** | **18960298** | **(16790196)** | **2173591** |

---

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

**MICROPOLIS HOLDING COMPANY**

**Statement of Cash Flows**

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

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Notes** | **June 30, 2025** | **June 30, 2025** | **June 30,<br> 2024** |
|  |  | **USD** | **AED** | **AED** |
| **Cash flow from operating activities** |  | | | |
| Loss for the period |  | (3281764) | (12050632) | (11567148) |
| **Adjustments for:** |  |  |  |  |
| Depreciation of property and equipment | 5 | 175412 | 644112 | 487543 |
| Amortization of intangible assets | 6 | 1972 | 7242 | 4118 |
| Depreciation of right-of-use asset | 7 | 130968 | 480915 | 475543 |
| Provision for employees' end-of-service benefits | 12 | 26187 | 96160 | 102293 |
| Finance expense | 18 | 116959 | 429473 | 357443 |
| **Operating loss before working capital changes** |  | (2830266) | (10392730) | (10140208) |
| **Changes in working capital** |  |  |  |  |
| (Increase)/decrease in Trade receivables | 8 | 4474 | 16430 | - |
| (Increase)/decrease in other receivables | 9 | (46297) | (170001) | (493480) |
| Decrease/(increase) in advance payment to suppliers | 9 | 746781 | 2742181 | (423322) |
| Increase/(decrease) in trade and other payables | 13 | (596163) | (2189109) | 1058077 |
| Increase/(decrease) in Contract liabilities | 14 | - | - | 3663959 |
| Employees' end of service benefits paid | 12 | (15996) | (58738) | (14395) |
| **Net cash flows used in operating activities** |  | (2737467) | (10051967) | (6349369) |
| **Cash flows from investing activities** |  |  |  |  |
| Acquisition of property and equipment | 5 | (986209) | (3621358) | (1706951) |
| Acquisition of intangible assets | 6 | (11123) | (40844) | (47716) |
| **Net cash flows used in investing activities** |  | (997332) | (3662202) | (1754667) |
| **Cash flows from financing activities** |  |  |  |  |
| Proceeds from ordinary share issuance, net | 21 | 13817848 | 50739139 | - |
| Decrease in due to related parties | 11 | (6253050) | (22961201) | (56642) |
| Increase in due to related parties | 11 | 533262 | 1958126 | 8771740 |
| Increase in short-term borrowings | 11 | - | - | 149000 |
| Decrease in short-term borrowings | 11 | - | - | (149000) |
| Lease payments made during the period | 15 | (137262) | (504024) | (498347) |
| **Net cash flows generated from financing activities** |  | 7960798 | 29232040 | 8216751 |
| **Net increase in cash and cash equivalents** |  | 4225999 | 15517871 | 112715 |
| Cash and cash equivalents at the beginning of the period | 10 | 13028 | 47837 | 68372 |
| **Cash and cash equivalents at the end of the period** |  | 4239027 | 15565708 | 181087 |
| **Cash paid in interest expense** | 18 | 3984 | 14631 | 25493 |

---

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

**MICROPOLIS HOLDING COMPANY**

**Notes to the Unaudited Financial Statements For the six months ended June 30, 2025 and 2024**

**1. LEGAL STATUS AND BUSINESS ACTIVITIES**

When used in these notes, the terms "Micropolis Holding Company," "Company," "we," "us," and "our," mean Micropolis Holding Company and its wholly-owned subsidiary included in our unaudited interim consolidated financial statements ("financial statements").

Micropolis Holding Company ("Micropolis Cayman"), was formed and registered in Ogier Global (Cayman) Limited, 89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands under registration No. 397831 in February 2023. The registered office of the Company is at Ogier Global (Cayman) Limited, 89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands. The management and control of the Company is vested with the board of Directors.

Micropolis Robotics FZ-LLC (formerly Micropolis Digital Development FZ-LLC) ("Micropolis Dubai"), our wholly-owned subsidiary, is a robotics manufacturer founded in 2014, based in the United Arab Emirates ("UAE") with its headquarters located in Dubai Production City, Dubai, UAE. We specialize in developing autonomous mobile robots ("AMRs") that utilize wheeled electric vehicle ("EV") platforms and are equipped with autonomous driving capabilities.

On June 18, 2025 the name of the company was changed from Micropolis Digital Development FZ-LLC to Micropolis Robotics FZ-LLC.

The Company is currently a pre-revenue organization since most of our existing projects are collaborative in nature and we do not anticipate earning substantial revenues until such time as we enter into commercial production for our robotics, which is expected to be by the fourth quarter of 2025.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Micropolis Dubai. All intercompany balances and transactions are eliminated.

**Nature of Operations**

The Company specializes in the creation of Autonomous Mobile Robots, which are utilized as Autonomous Police Patrols Robots and other commercialized robotic applications. The Company is actively partnering with Dubai Police to develop these advanced robotic systems, including two types of autonomous mobile robots and an advanced security software named Microspot.

**Business Strategy**

The Company focuses on leveraging cutting-edge technology and strategic partnerships to create innovative robotic solutions aimed at enhancing security and operational efficiency in various environments. The successful development and deployment of these technologies are expected to position the Company as a leader in the autonomous robotics industry.

**2. GOING CONCERN ASSUMPTION**

The Company incurred a loss of AED 12,050,632 during the period ended June 30, 2025. Current assets exceeded current liabilities by AED 14,895,128 as at June 30, 2025. Notwithstanding these considerations, the Company's financial statements have been prepared on a going concern basis. The Board of Directors has received assurances that the Company will continue to have access to the necessary financial resources to meet its obligations as they fall due. Funding is expected to be maintained through a combination of existing shareholder support, including shareholder loans, and operating revenues. In addition, the Company is actively evaluating alternative equity financing opportunities in public market, including engagement with institutional investors, to further strengthen its capital position.

**3. SUMMARY OF MATERIAL ACCOUNTING POLICIES**

A summary of the material accounting policies, is set out below:

**Basis of preparation and consolidation**

These financial statements for the six months ended June 30, 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Company's last annual consolidated financial statements at and for the year ended December 31, 2024. They do not include all of the information required for a complete set of financials statements prepared in accordance with IFRS Accounting Standards and should be read in conjunction with the most recent annual consolidated financial statements for the year ended December 31, 2024 filed on Form 20-F.

Our year-end is December 31.

These consolidated financial statements include the accounts of the registrant, Micropolis Holding Company, and its wholly owned subsidiary, Micropolis Robotics FZ-LLC (formerly Micropolis Digital Development FZ-LLC). All intercompany transactions and balances have been eliminated.

These financial statements were authorized for issue by the Company's board of directors on **October 23, 2025**

**Accounting convention**

These financial statements have been prepared in accordance with the historical cost convention and the accruals basis.

**Basis of Consolidation**

These financial statements include the accounts of the registrant, Micropolis Holding Company, and its wholly owned subsidiary, Micropolis Robotics FZ-LLC (formerly Micropolis Digital Development FZ-LLC). All intercompany transactions and balances have been eliminated.

**Functional and reporting currency**

These financial statements are presented in United Arab Emirates dirham (AED), which is the Company's functional and reporting currency.

<u>Convenience rate presentation — Unites States Dollars</u>

Translations of balances in the consolidated balance sheets, consolidated statements of income and comprehensive income, consolidated statements of changes in shareholders' equity (deficit) and consolidated statements of cash flows from AED into United States dollars ("US dollars", "USD", "$") as of June 30, 2025 are solely for the convenience of the readers and are calculated at the rate of $1.00 = AED3.672 representing the exchange rate set forth on June 30, 2025. AED has been pegged to the US dollar at the rate of $1.00 to AED3.672 since 1997. No representation is made that the AED amounts could have been, or could be, converted, realized or settled into US dollar at such rate, or at any other rate.

**Foreign currency transactions and translations**

Foreign currency transactions are translated into AED using the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into AED using the exchange rate prevailing on the reporting date. Gains and losses from foreign currency transactions are taken to the statement of comprehensive income.

**Financial instruments**

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

Except for those receivables that do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).

Financial assets, other than those designated and effective as hedging instruments, are classified into the following categories:

● amortised cost

● fair value through profit or loss (FVTPL)

● fair value through other comprehensive income (FVOCI).

The above classification is determined by both:

&nbsp;&nbsp;&nbsp;&nbsp;i. the Company's business model for managing the financial
asset

&nbsp;&nbsp;&nbsp;&nbsp;ii. the contractual cash flow characteristics of the financial
asset.

All income and expenses relating to financial assets are recognised in statement of comprehensive income and included as finance costs or interest income, except for allowance against trade receivables which is presented within general and administrative expenses.

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):

● they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and

● the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised cost using the effective interest method.

The Company's cash and cash equivalents, trade receivables, other receivables (excluding prepaid expenses and advances), and due from related parties fall into this category of financial instruments.

**Cash and cash equivalents**

Cash and cash equivalents comprise cash in hand, and balance with banks.

**Trade receivables**

Trade receivables are stated at original invoice amount less allowance as per the expected credit loss model. Bad debts are written off when there is no possibility of recovery.

The Company makes use of a simplified approach in accounting for trade receivables and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating the allowance, the Company uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.

The Company assesses impairment of trade receivables on a collective basis as they possess shared credit risk characteristics and they have been grouped based on the days past due.

**Related party transactions and balances**

The Company enters into transactions with parties that fall within the definition of a related party as contained in IFRS. Related parties comprise companies and entities under joint or common management, ownership or control, their partners and key management personnel.

**Impairment of financial assets**

IFRS 9's impairment requirements use more forward-looking information to recognise expected credit losses — the expected credit loss ("ECL") model. Instruments within the scope of the new requirements include financial assets measured at amortised cost. Recognition of credit losses is no longer dependent on the Company first identifying a credit loss event, instead the Company considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

In applying this forward-looking approach, a distinction is made between:

● Stage 1 covers the financial assets that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk;

● Stage 2 covers the financial assets that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low; and

● Stage 3 covers the financial assets that have objective evidence of impairment at the reporting date.

"12-month expected credit losses" are recognised for the first category while 'lifetime expected credit losses' are recognised for the second category. Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument.

**Property and equipment**

Property and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Costs include expenditure that is directly attributable to the acquisition and bringing the asset to its working condition.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. When a part of an asset is replaced and the cost of the replaced asset is capitalized, the carrying amount of the replaced part is derecognised. All other repairs and maintenance are recognised in the statement of comprehensive income during the financial period in which they are incurred.

Depreciation of assets is calculated using the straight-line method to allocate their cost over their estimated useful lives as follows:

---

| | | |
|:---|:---|:---|
| **Assets** | **Years** | **Years** |
| Office furniture |  | 3 |
| Computers |  | 4 |
| Office equipment |  | 5 |
| Fit out and fixtures |  | 10 |

---

Depreciation is charged from the date the asset is available for use up to the date the asset is disposed of. Gains and losses and property and equipment are recognized as other income in the statement of comprehensive income in the period in which they occur.

**Intangible assets**

Intangible assets are stated at cost less accumulated amortisation and impairment losses. The amount paid for acquiring business premises is amortised using the straight-line method over its estimated useful life of 4 years.

**Impairment of non-financial assets**

The Company assesses at each reporting date whether there is any indication that an asset may be impaired based on IAS 36. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset's recoverable amount.

An asset's recoverable amount is the higher of an asset or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the cash-generating unit to which the asset belongs is used. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

**Provisions**

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

**Contingent liabilities**

A contingent liability is disclosed when the Company has a possible obligation as a result of past events, the existence of which will be confirmed only by the occurrence or non-occurrence, of one or more uncertain future events, not wholly within the control of the Company; or when the Company has a present legal or constructive obligation, that arises from past events, but it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability.

**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.

The Corporate Tax Rate in Cayman Islands stands at 0%. Generally, UAE businesses will be subject to a 9% Corporate tax rate, however a rate of 0% will be applied to taxable income not exceeding AED 375,000 or to certain types of entities, as prescribed by way of a Cabinet Decision.

**Employees' end-of-service benefits**

Provision is made for the end-of-service benefits due to employees in accordance with U.A.E Labour Law for their periods of service up to the reporting date. The provision for the end-of-service benefits is calculated annually based on their current basic remuneration.

**Leases**

At inception of a contract, the Company assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated under the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of asset leased.

Lease payments included in the measurement of the lease liability comprise the following:

● fixed payments, including in-substance fixed payments;

● variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

● amounts expected to be payable under a residual value guarantee; and

● the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal policy if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortized cost under the effective interest method. It is remeasured where there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised-in-substance fixed lease payment.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to nil.

***Short-term leases and leases of low-value assets***

 ****

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

**Revenue recognition**

Revenue is recognized at a point in time, when (or as) the Company satisfies performance obligations by providing the promised services to its customers.

To determine whether to recognise revenue, the Company follows a 5-step process:

i. Identifying the contract with a customer;

ii. Identifying the performance obligations;

iii. Determining the transaction price;

iv. Allocating the transaction price to the performance obligations;
and

v. Recognising revenue when performance obligation(s) are
satisfied

Revenue is recognized when the company delivers products.

Related costs are expensed as incurred. These include materials, salaries, and wages that are directly associated with the delivery of the products.

**Contract liability**

Advance payments are recorded when payment receipt occurs prior to our products deliver; such advance payments are recognized as revenue in the period in which the products are provided.

**New Standards and amendments issued but not yet effective**

*Presentation and Disclosure in Financial Statements — IFRS 18*

 

In April 2024, the IASB issued IFRS 18, which will replace IAS 1 - *Presentation of Financial Statements.* The standard aims to improve the manner in which companies communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss, specifically introducing additional defined subtotals, disclosures about management-defined performance measures and new principles for aggregation and disaggregation of information. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7 Statement of Cash Flows. IFRS 18 is effective from 1 January 2027. Companies are permitted to apply IFRS 18 before that date. The Company is evaluating the impact of the above amendments on its consolidated financial statements.

**4. USE OF JUDGMENTS, ESTIMATES, AND ASSUMPTIONS**

The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historic experience, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years.

The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are as follows:

**Expected credit loss allowance against trade receivables**

An allowance against trade receivables is recognised as per IFRS 9 considering the pattern of receipts from, and the future financial outlook of, the concerned customer. In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the credit period and the days past due.

**Allowance for related party balances**

The Company reviews related party balances on a regular basis and considers the recoverability and impairment of such amounts and recognises an allowance as per IFRS 9 for such balances where the amount from related party is not recoverable. It is reviewed by the management on a regular basis.

**Useful lives and residual values of property and equipment**

The Company reviews the useful lives and residual values of property and equipment on a regular basis. Any changes in estimates may affect the carrying amounts of the respective items of property and equipment with a corresponding effect on the related depreciation charge.

**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 evaluated the economic incentive related to 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.

**5. PROPERTY AND EQUIPMENT**

**5.1 Cost**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Balance<br> as at<br> December 31, <br> 2024** | **Additions** | **Disposals/<br> transfers** | **Balance<br> as at<br> June 30,<br> 2025** |
|  | **AED** | **AED** | **AED** | **AED** |
| Office furniture | 319411 | 5600 |  | 325011 |
| Computers | 715344 | - |  | 715344 |
| Office equipment | 3358382 | 3615758 |  | 6974140 |
| Fit out and fixtures | 2326372 | - |  | 2326372 |
| **Totals (AED)** | **6719509** | **3621358** |  | **10340867** |
| Totals (**USD)** | **1829932** | **986209** |  | **2816140** |

---

**5.2 Depreciation**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Balance<br> as at<br> December 31, <br> 2024** | **Additions** | **Disposals/<br> transfers** | **Balance<br> as at<br> June 30,<br> 2025** |
|  | **AED** | **AED** | **AED** | **AED** |
| Office furniture | 232969 | 30453 |  | 263422 |
| Computers | 444963 | 67848 |  | 512811 |
| Office equipment | 1329065 | 430449 |  | 1759514 |
| Fit out and fixtures | 600728 | 115362 |  | 716090 |
|  | **2607725** | **644112** |  | **3251837** |
| Amount in **USD** | **710165** | **175412** |  | **885577** |

---

**5.3 Net book value**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Office furniture | 16773 | 61589 | 86442 |
| Computers | 55156 | 202533 | 270381 |
| Office equipment | 1420105 | 5214626 | 2029317 |
| Fit out and fixtures | 438530 | 1610282 | 1725644 |
|  | **1930564** | **7089030** | **4111784** |

---

**6. INTANGIBLE ASSETS, NET**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Balance at the beginning of the year | 10236 | 37585 | - |
| Addition during the period | 11122 | 40844 | 47716 |
| Disposals during the period | - | - | - |
| Amortization for the period | (1972) | (7242) | (10131) |
| Balance at the end of the period | 19386 | 71187 | 37585 |

---

**7. RIGHT OF USE ASSET**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| <u>Asset capitalized</u> |  |  |  |
| Balance at the beginning of the year | 1147725 | 4214447 | 4030844 |
| Capitalized during the period | - | - | 183603 |
|  | 1147725 | 4214447 | 4214447 |
| <u>Depreciation</u> |  |  |  |
| As at the beginning of the year | 781886 | 2871086 | 1889647 |
| Charge for the period | 130968 | 480915 | 981439 |
|  | 912854 | 3352001 | 2871086 |
| **Net book value** | 234871 | 862446 | 1343361 |

---

The following are the amounts recognized in the statement of comprehensive income.

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Depreciation of the right of use assets | 130968 | 480915 | 981439 |
| Interest expenses on leased assets | 3984 | 14631 | 46480 |
| Total amount recognized in the statement of comprehensive income | 134952 | 495546 | 1027919 |

---

**7.1** The right of use asset had been capitalized with the incurred initial broker commission of AED 35,000 to obtain the lease agreement.

**8. TRADE RECEIVABLES**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Trade receivables | 19617 | 72033 | 88463 |
| Less: expected credit losses allowance | (11224) | (41213) | (41213) |
|  | 8393 | 30820 | 47250 |

---

**8.1** Trade receivables are non-interest bearing and are generally on 90 days terms (refer to Note 20) after which date trade receivables are considered to be past due. It is not the practice of the Company to obtain collateral over receivables.

**8.2** As at June 30, 2025 and December 31 2024, the ageing analysis of trade receivables was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Not past due** | **Not past due** | **Past due** |
|  |<br>**Total** | **0 – 90 days** | **91 – 360 days** | **Over 360 days** |
| June 30, 2025 **(AED**) | 72033 | 30820 |  | 41213 |
| June 30, 2025 (**USD**) | 19617 | 8393 |  | 11224 |
| December 31, 2024 (**AED)** | 88463 | 47250 |  | 41213 |

---

**8.3 Expected credit losses on trade receivables as per IFRS 9**

The Company applies the IFRS 9 simplified model of recognizing lifetime expected credit losses for all trade receivables as these items do not have a significant financing component.

In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the credit year and the days past due.

The expected loss rates are based on the payment profile for sales over the past 12 months as well as the corresponding historical credit losses during that year. The historical rates are adjusted to reflect current and forward-looking macroeconomic factors affecting the customer's ability to settle the amount outstanding.

Trade receivables are written off (i.e. derecognized) when there is no reasonable expectation of recovery. Failure to make payments within 90 days from the invoice date and failure to engage with the Company on alternative payment arrangement amongst others is considered indicators of no reasonable expectation of recovery.

On the above basis, the expected credit loss for trade receivables as at June 30, 2025 and December 31 2024 was determined using the provision matrix as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Ageing analysis of trade receivables** | **Default<br> rate<br> %** | **Trade<br> receivables<br> AED** | **Provision as<br> per IFRS 9<br> AED** |
| **As at June 30, 2025** | | | |
| 0-90 days | 0% | 30820 |  |
| Over 360 days | 100% | 41213 | 41213 |
| Amount in **AED** |  | 72033 | 41213 |
| Amount in **USD** |  | 19617 | 11224 |
| **As at December 31, 2024** |  |  |  |
| Over 360 days | 100% | 41213 | 41213 |

---

**8.4** The movement in allowance against trade receivables was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Balance at the beginning of the year | 11224 | 41213 | 41213 |
| Provision during the period | - | - | - |
| Balance at the end of the period | 11224 | 41213 | 41213 |

---

**9. OTHER RECEIVABLES**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31,<br> 2024** |
|  | **USD** | **AED** | **AED** |
| Bank guarantee | 25654 | 94200 | 94200 |
| Prepayments \* | 121456 | 445987 | 262701 |
| Other deposits | 44132 | 162051 | 286823 |
| VAT receivable | 87520 | 321372 | 216766 |
| Other | 5029 | 18471 | 11590 |
|  | 283791 | 1042081 | 872080 |

---

**\*** **Prepayments:**

The Company has prepayments totaling AED 445,987 as of June 30, 2025, classified as follows:

---

| | | |
|:---|:---|:---|
| 1 – Prepaid Rent: | AED | 189780 |
| 2 – Prepaid Medical Insurance: | AED | 146138 |
| 3 – Prepaid Rent Services Charge: | AED | 31702 |
| 4 – Prepaid Subscriptions: | AED | 68155 |
| 5 – Prepaid Equipment Rental: | AED | 3539 |
| 6 – Prepaid Equipment Insurance: | AED | 6673 |

---

The Company has prepayments totaling AED 262,701 as of December 31, 2024, classified as follows:

---

| | | |
|:---|:---|:---|
| 1 – Prepaid Rent: | AED | 84728 |
| 2 – Prepaid Medical Insurance: | AED | 32939 |
| 3 – Prepaid Rent Services Charge: | AED | 95107 |
| 4 – Prepaid Subscriptions: | AED | 49927 |

---

**9.1 Advance Payment to Suppliers**

As of June 30, 2025, the Company has made advance payments totaling AED 639,691 (USD 174,208) to various suppliers for the procurement of materials, and related systems. The breakdown of these advance payments is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Siemens: AED 241,098 — Autonomous Navigation System

&nbsp;&nbsp;&nbsp;&nbsp;2. Dubai World Trade Centre AED 266,518 - GITEX global 2025 Exhibition (October 13to October 17, 2025)

&nbsp;&nbsp;&nbsp;&nbsp;3. Other Local Suppliers: AED 132,075

As of December 31, 2024, the Company has made advance payments totaling AED 3,381,872 to various suppliers for the procurement of machines, equipment, and related systems. The breakdown of these advance payments is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. DMG MORI Middle East FZE: AED 2,588,660— Machines and Equipment Supplier

&nbsp;&nbsp;&nbsp;&nbsp;2. Creative Colors Design: AED 449,300—Fit out Supplier

&nbsp;&nbsp;&nbsp;&nbsp;3. Siemens: AED 241,098 — Autonomous Navigation System

&nbsp;&nbsp;&nbsp;&nbsp;4. Other Local Suppliers: AED 102,814

These advance payments are recorded as current assets in the financial statements and represent amounts paid in advance for goods and services to be received in the future.

**10. CASH AND CASH EQUIVALENTS**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Cash in hand | 3014 | 11066 | 11052 |
| Cash-in-transit | 4198039 | 15415200 | - |
| Cash at bank | 37974 | 139442 | 36785 |
|  | 4239027 | 15565708 | 47837 |

---

**11. RELATED PARTY TRANSACTIONS AND BALANCES**

Balances with related parties during the period as follows.

---

| | |
|:---|:---|
| ***Name of party*** | ***Relationship*** |
| Egor Romanyuk | Majority Shareholder of the Company |
| Fareed Aljawhari | Director of the company and shareholder |
| Rajesh Venkataraman | Shareholder of the Company |
| Fares Abu Baker | Shareholder of the Company |
| Diamond Developers | Owned by Fares Abu Baker (shareholder) |
| Art Alexander Balikin | Shareholder of the Company |

---

**11.1 Due to related parties**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31,<br> 2024** |
|  | **USD** | **AED** | **AED** |
| Mr. Egor Romanyuk | - | - | 9715566 |
| Mr. Fareed Aljawhari | 12990 | 47700 | 10670015 |
| Mr. Rajesh Venkataraman | - | - | 855806 |
| Mr.Fares Abu Baker | 40850 | 150000 | - |
| Diamond Developers | 86291 | 316861 | - |
| Art Alexander Balikin | 30000 | 110160 | - |
|  | 170131 | 624721 | 21241387 |

---

<u>Loan from Mr. Egor Romanyuk</u>

During the period ended June 30, 2025, and December 31, 2024, the Company entered into the following related party transactions:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| <br>**Date of Loan** |<br>**Amount**<br>**(AED)** |<br>**% (annual)** | **Management**<br>**Fee (AED)** | **Total**<br>**(AED)** | **Total**<br>**(USD)** | **Management**<br>**Fee (AED)** | **Total**<br>**(AED)** |
| May 1, 2023 | 3968987 | 20% | 1520176 | 5489163 | 1494870 | 1322996 | 5291980 |
| December 11, 2023 | 446857 | 20% | 116305 | 563162 | 153367 | 94417 | 541274 |
| December 25, 2023 | 365300 | 20% | 92276 | 457576 | 124612 | 74435 | 439735 |
| December 31, 2023 | 119978 | 0% | - | 119978 | 32674 | - | 119978 |
| May 18, 2024 | 175025 | 20% | 35005 | 210030 | 57198 | 35005 | 210030 |
| August 16, 2024 | 372323 | 20% | 74465 | 446788 | 121674 | 74465 | 446788 |
| September 30, 2024 | 219527 | 20% | 43905 | 263432 | 71741 | 43905 | 263432 |
| October 18, 2024 | 300000 | 20% | 60000 | 360000 | 98039 | 60000 | 360000 |
| October 28, 2024 | 150000 | 20% | 30000 | 180000 | 49020 | 30000 | 180000 |
| November 6, 2024 | 78758 | 20% | 15752 | 94510 | 25738 | 15752 | 94510 |
| November 8, 2024 | 78758 | 20% | 15752 | 94510 | 25738 | 15752 | 94510 |
| December 4, 2024 | 1761600 | 0% | - | 1761600 | 479739 | - | 1761600 |
| **Total** | **8037113** |  | **2003636** | **10040749** | **2734410** | **1766727** | **9803837** |
| **Repayments during 2024** |  |  |  | (88271) | (24039) |  | **(88271)** |
| **Repayments during 2025** |  |  |  | (9952478) | (2710371) |  | - |
| **Net Balance** |  |  |  | **-**  | **-**  |  | **9715566** |

---

These transactions are considered related party transactions and have been conducted on terms agreed upon between the parties involved. The company repaid all loans outstanding to Egor Romanyuk as of March 30, 2025, on March 30, 2025.

The Company reviewed and determined that imputed interest expense of Amount Due Without Fees (interest-free loan) is immaterial for the period ended June 30, 2025, and the year ended December 31, 2024.

<u>Loan from Mr. Fareed Aljawhari</u>

During the period ended June 30, 2025, and December 31, 2024, the Company entered into the following related party transactions with Mr. Fareed Aljawhari:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | **<br> Balance at<br>June 30, 2025** | **<br> Balance at<br>June 30, 2025** | **Balance at<br>December 31, <br> 2024** |
|  |<br>**Commission** | **Principal**<br>**Amount**<br>**(AED)** | **Total**<br>**(AED)** | **Total**<br>**(USD)** | **Total**<br>**(AED)** |
| January 31, 2024 | 0% | 2000000 | - | - | 475201 |
| February 29, 2024 | 0% | 1913600 | - | - | 1848886 |
| March 31, 2024 | 0% | 1180000 | - | - | 1140095 |
| April 30, 2024 | 0% | 475000 | - | - | 458937 |
| May 31, 2024 | 0% | 2500000 | - | - | 2415455 |
| July 31, 2024 - 1 | 0% | 1139507 | - | - | 1101266 |
| July 31, 2024 - 2 | 0% | 146120 | - | - | 141216 |
| October 26, 2024 | 0% | 500000 | - | - | 484391 |
| November 22, 2024 | 0% | 793797 | - | - | 762984 |
| December 11, 2024 | 0% | 1908400 | - | - | 1841584 |
| January 31, 2025 | 0% | 950000 | 47700 | 12990 | - |
|  |  | 13506424 | 47700 | 12990 | 10670015 |

---

The Company received a loan amounting to AED 950,000 and repaid AED 13,458,724 for the period ended June 30, 2025. This loan does not carry any associated management fee. In connection with these loans, the Company will repay this amount within one month after IPO. The initial fair value of loans received in 2024 and in 2025 was determined to be AED 11,009,981 (USD 2,998,361) and AED 921,567 (USD 250,971) , which was determined using an estimated effective interest rate of 20% and estimated maturity date of March 11, 2025. The difference between the face value and the fair value of the loans received in 2024 and in 2025 of AED 1,546,443 (USD 421,145) and AED 28,433 (USD 7,743) has been recognized as additional paid in capital during the year ended December 31, 2024 and the period ended June 30, 2025. Imputed interest expense of loans received in 2024 and 2025 is AED 1,160,034 (USD 315,913) and AED 414,842 (USD 112,975) for the year ended December 31, 2024.

<u>Loan from Mr. Rajesh Venkataraman</u>

On October 25, 2024, the Company received a loan of AED 700,000 from Mr. Rajesh Venkataraman for operational purposes. The loan agreement specifies a monthly management fee of 10% on the principal amount. The loan, along with the accumulated management fee, is scheduled for repayment within three months after the IPO. As of December 31, 2024, the total outstanding amount, including the management fee, is AED 855,806.

In March 2025, the total outstanding amount, including the management fee, was AED 1,050,000. The company made a repayment on March 13, 2025.

**11.2. Payable for shares**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31,<br> 2024** | **December 31,<br> 2024** |
|  | **USD** | **USD** | **AED** | **AED** | **AED** | **AED** |
| Payable for ordinary share (note 2) | | 27,233 | | 100,000 | | 100,000 |
|  | | 27,233 | | 100,000 | | 100,000 |

---

Micropolis Holding acquired 100 shares of Micropolis Dubai for a total consideration of AED 100,000. The transaction has been recorded as a payable in the financial statements, reflecting the obligation to settle the purchase price for the acquired shares.

**12. EMPLOYEES' END-OF-SERVICE BENEFITS**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31,<br> 2024** |
|  | **USD** | **AED** | **AED** |
| Balance at the beginning of the year | 166606 | 611777 | 412678 |
| Add: provided for the period\* | 26187 | 96160 | 355819 |
| Less: paid during the period | (15996) | (58738) | (156720) |
| Balance at the end of the period | 176797 | 649199 | 611777 |

---

\* As per the court ruling on December 10, 2024, a payment of AED 142,326 was made to Arsalan Masood as part of his end of service benefits. This amount represents the actual expense recognized in accordance with the legal decision. The stated amount has already been deducted from the advance payment account. The remaining balance will be transferred to our bank by the court in 2025.

**13. TRADE AND OTHER PAYABLES**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Trade payables | 113100 | 415302 | 755266 |
| Staff payables | 20425 | 75000 | 1716998 |
| Accrued Expenses | 43031 | 158010 | 84591 |
| PDC payables | 60493 | 222130 | 64860 |
| Payables to former related party | - | - | 466861 |
| Profit share payable (FGT)\* | 27829 | 102188 | 72851 |
| Other payables\*\* | 14306 | 52532 | 52844 |
|  | 279184 | 1025162 | 3214271 |

---

\* Profit Share Payable (FGT): The Company has agreed with Future General Trading (FGT) to share 100% of the net profit from 3D printing sales. For the year ending December 31, 2024, total sales from 3D printing amounted to AED 130,043, with a cost of AED 57,192, resulting in a net profit of AED 72,851. As per the agreement, FGT is entitled to 100% of the net profit, and the profit share payable to FGT is AED 72,851, which is recognized as a liability as of December 31, 2024

For the period ended June 30, 2025, total sales from 3D printing amounted to AED 59,044, with a cost of AED 29,707, resulting in a net profit of AED 29,337. As per the agreement, FGT is entitled to 100% of this profit, and a profit share payable of AED 29,337 was recognized as a liability as of June 30, 2025.

Accordingly, the total profit share payable to FGT as of June 30, 2025, amounts to AED 102,188, fully recognized as a liability in the Company's financial statements.

\*\* Payables to former related party represent amounts owing to the former controlling shareholder (and related corporation) of the Micropolis Dubai for operating expenses paid on behalf of Micropolis Dubai. The shareholder ceased being a controlling shareholder and related party, during the fiscal year ended 2021. The Company intends to repay amounts when funds are available. The amounts are due on demand, do not accrue interest, and are unsecured.

**14. CONTRACT LIABILITIES**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31,<br> 2024** |
|  | **USD** | **AED** | **AED** |
| Future General Trading LLC - Machinery Investment | 537604 | 1974081 | 1974081 |
| Future General Trading LLC - Autonomous Investment | 3282925 | 12054900 | 12054900 |
|  | 3820529 | 14028981 | 14028981 |

---

Below we describe the two agreements in detail.

**14.1 Future General Trading LLC — Autonomous Investment**

This agreement is made effective as of April 26, 2023. The primary purpose of this investment financed by Future General Trading LLC, is to finance the development and production of Autonomous Police Patrols. These robots will be used as Autonomous Police Patrols and other commercial robotic applications, including crime detection and security software called Microspot. The Company will pay the investor, Future General Trading LLC, royalty of 25% of the total selling price of each unit sold until the investment amount is paid back, and thereafter 25% of the margin on each unit sold in perpetuity. The Company will receive the financial commitment as follows;

<u>Total Agreed Investment Amount: $3.3 million (AED 12.1 million)</u>

● $500,000 (AED 1,836,000) in Month 1

● $275,000 (AED 1,009,800) monthly from Month 2 to Month 9

● $200,000 (AED 734,400) monthly from Month 10 to Month 12

June 30, 2025, the total amount received under this agreement was approximately AED 12.1 million.

All items will be delivered. The Company expects the delivery date in the fourth quarter of fiscal year-end 2025.

**14.2 Future General Trading LLC — Machinery Investment**

This agreement is made effective as of November 18, 2023. The primary purpose of this investment is to fund the purchase and installation of a DMG Mori DMU 75 Monoblock CNC machine and a TPM 600P SLS 3D Printing machine, collectively referred to as "the Machines". This is expected to significantly improve the production capabilities of Micropolis, for legal support, staffing, production, quality control and reporting.

The total agreed investment amount is USD 774,800 (AED 2.8 million). The Company and the investors also agreed to form subsequently a Special purpose vehicle (SPV), and investor will have 50% stake in that SPV. However, due to the delay in the project and the machine arrival, the total amount received under this agreement was approximately AED 2.0 million.

The Company received the TPM 600P SLS 3D Printing machine in March 2024. and the company received the DMU 75 Monoblock CNC machine in February 2025 and was put into operation the same month.

The table below summarizes the maturities of the Company's contract liabilities at June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| <br>**June 30, 2025** | **Less than**<br>**one year** | **One to two**<br>**year** |<br>**Total** |
|  | **AED** | **AED** | **AED** |
| Contract liabilities in **AED** | 14028981 |  | 14028981 |
| Amount in **USD** | 3820529 |  | 3820529 |

---

---

| | | | |
|:---|:---|:---|:---|
| **December 31, 2024** | **Less than one year** | **One to two year** | **Total** |
|  | **AED** | **AED** | **AED** |
| Contract liabilities in **AED** | 14028981 |  | 14028981 |

---

**15. LEASE LIABITITY**

---

| | | | |
|:---|:---|:---|:---|
| **LEASE LIABITITY** | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Payable after one year (within 2 years) | 43078 | 158184 | 504048 |
| Payable within one year | 199697 | 733289 | 876818 |
|  | 242775 | 891473 | 1380866 |

---

The movement in lease liability was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** |
|  | **USD** | **AED** | **AED** |
| Balance at the beginning of the year | 376053 | 1380866 | 2180163 |
| Lease additions during the period | - | - | 183603 |
| Add: interest accretion | 3984 | 14631 | 46480 |
| Less: payments made during the period | (137262) | (504024) | (1029380) |
| Balance at the end of the period | 242775 | 891473 | 1380866 |

---

Maturity analysis of the lease liability as at reporting date was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Within**<br>**1 year** | **Within**<br>**2 years** |<br>**Total** |
|  | **AED** | **AED** | **AED** |
| **June 30, 2025** | | | |
| Gross lease liabilities | 746816 | 158844 | 905660 |
| Less: Future interest | (13527) | (660) | (14187) |
| Net lease liabilities | 733289 | 158184 | 891473 |
| Amount in **USD** | 199697 | 43078 | 242775 |

---

**15.1** The Company has issued post dated cheques of AED 3,176,875 and AED 960,000 which were written in advance for the usage of warehouse premises and equipment for a lease period of 60 and 48 months respectively. As per IFRS 16 'Leases' standard (Note 5) the present value of future cashflows (inclusive of VAT) had been discounted at the incremental borrowing rate of 2.5% for the calculation of right of use asset (Note 8) and the liabilities.

**16. REVENUE**

The company recognized revenue of AED 59,044 (USD 16,080) from 3D printing sales for the period ended June 30, 2025 (2024: AED 32,796). Revenue is recorded based on the milestone completed with the Company's revenue recognition policy.

**17 OPERATING EXPENSES**

**17.1 Cost of revenue**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30,<br> 2024** | **June 30,<br> 2024** |
|  | **USD** | **USD** | **AED** | **AED** | **AED** | **AED** |
| Material consumed |  | 8090 |  | 29707 |  | 10020 |
| Direct salaries and wages | | - | | - | | - |
|  | | 8,090 | | 29,707 | | 10,020 |

---

**17.2 Administrative Expenses**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** |
|  | **USD** | **AED** | **AED** |
| Employees benefit expenses | 1444294 | 5303448 | 5252000 |
| Accommodation expenses | 52186 | 191627 | 170392 |
| Rent expenses (\*) | 31206 | 114590 | 117573 |
| Depreciation of property plant and equipment (note 6) | 175412 | 644113 | 487543 |
| Depreciation of right of use asset (note 8) | 130968 | 480915 | 475543 |
| Utilities and office expenses | 52795 | 193862 | 256646 |
| Telephone expenses | 10748 | 39465 | 36154 |
| Government and license fee | 2467 | 9060 | 2340 |
| Transport expenses | 25462 | 93497 | 145254 |
| Repairs and maintenance | 13541 | 49720 | 67329 |
| Bank charges | 11300 | 41491 | 41547 |
| Professional fee | 338984 | 1244745 | 970768 |
| IT expenses | 47668 | 175036 | 236153 |
| Amortization (note 7) | 1972 | 7242 | 4118 |
| Foreign exchange loss or gain | 29445 | 108122 | - |
| Management Fees | 110639 | 406266 | 478114 |
|  | 2479087 | 9103199 | 8741474 |

---

---

| | |
|:---|:---|
| **(\*)** | The Company adopted IFRS 16 Leases with effect from January 1, 2019. There were no right of use assets and corresponding lease liability recognized as the lease considered as short-term lease. |

---

**17.3 Research and development cost**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30,<br> 2024** | **June 30,<br> 2024** |
|  | **USD** | **USD** | **AED** | **AED** | **AED** | **AED** |
| Research and development cost | | 259,398 | | 952,509 | | 1,781,994 |

---

**17.4 Profit Distribution Expense**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30,<br> 2024** | **June 30,<br> 2024** |
|  | **USD** | **USD** | **AED** | **AED** | **AED** | **AED** |
| Profit distribution expense | | 7,989 | | 29,337 | | - |

---

The Company has agreed with Future General Trading (FGT) to share 100% of the net profit from 3D printing sales. for the period ended June 30, 2025, total sales from 3D printing amounted to AED 59,044 with a cost of AED 29,707, resulting in a net profit of AED 29,337. As per the agreement, FGT is entitled to 100% of the net profit, and the profit share payable to FGT is AED 29,337, which is recognized as a liability as of June 30, 2025.

**17.5 Marketing** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **USD** | **USD** | **AED** | **AED** | **AED** | **AED** |
| Marketing expenses | | 427,677 | | 1,570,429 | | 726,740 |

---

**18. OTHER INCOME AND FINANCE EXPENSE**

**18.1 Other Income**

The other income for the period ended June 30, 2025, totals AED 4,978 (USD 1,356). This amount includes revenue from the sale of scrap items and cash back from a prepaid card. These revenues are classified separately to clarify the entity's non-core income sources.

The other income for the period ended June 30, 2024, totals AED 17,727. This amount includes revenue from the sale of scrap items and cash back from a prepaid card. These revenues are classified separately to clarify the entity's non-core income sources entity's non-core income sources.

**18.2 Finance expense**

**FINANCE EXPENSE**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30,<br> 2024** |
|  | **USD** | **AED** | **AED** |
| Imputed interest from due to related party | 112975 | 414842 | 331950 |
| Interest expense from lease | 3984 | 14631 | 25493 |
|  | 116959 | 429473 | 357443 |

---

**19. COMMITMENTS AND CONTINGENCIES**

**19.1 Capital expenditure commitments**

The Company did not have capital expenditure commitments at the reporting date.

**19.2 Operating expenditure commitments**

The Company has committed rental expense of AED 114,590 (USD 31,206) as of June 30, 2025 (2024 — AED

117,573) and rent agreements are renewable on an annual basis.

**19.3 Contingent liabilities**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, <br> 2024** | **December 31, <br> 2024** |
|  | **USD** | **USD** | **AED** | **AED** | **AED** | **AED** |
| Labor guarantees | | 34,041 | | 125,000 | | 125,000 |

---

**20. RISK MANAGEMENT**

**20.1 Credit risk**

Credit risk is limited to the carrying values of financial assets in the statement of financial position, and is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company is exposed to credit risk on its bank balances and trade and other receivables as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31,<br> 2024** |
|  | **USD** | **AED** | **AED** |
| Cash at bank (note 10) | 4236013 | 15554642 | 36785 |
| Trade receivables (note 8) | 19617 | 72033 | 88463 |
| Other receivables (excluding prepaid expenses and advances) (note 9) | 162335 | 596094 | 609379 |
|  | 4417965 | 16222769 | 734627 |

---

The Company seeks to limit its credit risk with respect to banks by dealing with reputable banks only.

Due from related party and other receivables (excluding advances and prepaid expenses) relate to transactions arising in the normal course of business with minimal credit risk.

Credit risks related to trade receivables are managed subject to the Company's policies, procedures and controls relating to customer credit risk management. Credit limits are established for all customers based on internal rating criteria and the credit quality of customers is assessed by management. Outstanding customer receivables are regularly monitored. The requirement for an impairment is analyzed at each reporting date on an individual basis for major customers. Additionally, minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security.

**20.2 Liquidity risk**

Liquidity risk is the risk that the Company may not have sufficient liquid funds to meet its liabilities as they fall due. Prudent liquidity risk management requires maintaining sufficient cash and the availability of funding to meet obligations when due. The Company limits its liquidity risk by ensuring funds from the shareholder and related parties are available, as required.

The Company terms of contract require amounts to be paid within 90 days of the date of sale.

Trade payables are normally settled within 30 days of the date of purchase.

The table below summarizes the maturities of the Company financial liabilities at June 30, 2025 and December 31 2024.

---

| | | | |
|:---|:---|:---|:---|
|  | **Less than**<br>**one year** | **More than**<br>**one year (\*)** |<br>**Total** |
|  | **AED** | **AED** | **AED** |
| **June 30, 2025** | | | |
| Due to related parties (note 11) | 624721 | - | 624721 |
| Trade and other payables (note 13) | 1025162 | - | 1025162 |
| Lease liability (note 15) | 733289 | 158184 | 891473 |
| Amount in **AED** | 2383172 | 158184 | 2541356 |
| Amount in **USD** | 649012 | 43078 | 692090 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Less than**<br>**one year** | **More than**<br>**one year (\*)** |<br>**Total** |
|  | **AED** | **AED** | **AED** |
| **December 31, 2024** | | | |
| Due to related parties (note 11) | 21241387 | - | 21241387 |
| Trade and other payables (note 13) | 3214271 | - | 3214271 |
| Lease liability (note 15) | 876818 | 504048 | 1380866 |
| Amount in **AED** | 25332476 | 504048 | 25836524 |

---

(\*) There are no liabilities more than five years.

**20.3 Foreign currency risk**

Foreign currency risk is the risk that an adverse movement in currency exchange rates can affect the financial performance of the Company and can arise on financial instruments that are denominated in a currency other than the functional currency in which they are measured. Most of the Company's transactions are carried out in AED, hence no material risk arises.

Translations of balances in the statement of financial position, the statement of comprehensive income and the statements of cash flows from AED into USD as of and for the period ended June 30, 2025 are solely for the convenience of the reader and were calculated at the rate of USD 1.00 to AED 3.672, representing the noon buying rate in the City of New York for cable transfers of AED as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2025 . No representation is made that the AED amounts represent or could have been, or could be, converted, realized or settled into USD at that rate on June 30, 2025 , or at any other rate.

**21. ORDINARY SHARE**

Micropolis holding was incorporated under the laws of Cayman Islands and is principally engaged in the development of advanced robotics and autonomous systems. The Company's authorized capital amounts to 200,000,000 shares.

On March 6, 2025, the Company entered into an underwriting agreement (the "Underwriting Agreement") with Network1 Financial Securities, Inc. (the "Underwriter"), relating to the Company's initial public offering (the "IPO") of 3,875,000 ordinary shares, par value $0.0001 per share (the "Ordinary Shares"), for a price of $4 per share. On March 10, 2025, the Company completed the IPO pursuant to its registration statement on Form F-1 (File No. 333-276231) (the "Registration Statement"), which was initially filed with the U.S. Securities and Exchange Commission (the "SEC") on December 22, 2023, as amended, and declared effective by the SEC on March 6, 2025.

3,875,000 Ordinary Shares were sold at an offering price of $4 per share, generating gross proceeds of $15.5 million to the Company, before underwriting discounts and other offering expenses. The IPO was conducted on a firm commitment basis. The Ordinary Shares were approved for listing on NYSE American LLC and commenced trading under the ticker symbol "MCRP" on March 7, 2025. The Company recorded IPO offering expenses of $6,167,050 as a reduction of equity.

On March 24, 2025 and April 14, 2025, respectively, the Company issued 131,748 ordinary shares to Olimp Projects LLC and 881,699 ordinary shares to Art Alexander Balikin pursuant to the cashless exercise of 1,016,250 warrants issued to Olimp Projects LLC.

**21.1 Warrant** 

On March 6, 2025, the Company issued 1,016,250 warrants to Olimp Projects LLC for IPO consulting services, based on the consulting agreement signed on January 1, 2023. Pursuant to the Olimp Warrant, the number of shares for which such warrant is exercisable shall represent 3% of the issued and outstanding ordinary shares of the Company. The warrants were exercisable immediately on the date of issuance until the fifth anniversary of the issuance date at a price of $0.01 per share. The Company valued warrants of approximately $4 million using the Black-Scholes pricing model and recognized it as offering expense for IPO.

On March 10, 2025, the Company also issued warrants to the Underwriter and its designees, which are exercisable during the period commencing from March 10, 2025, and expiring five years from the commencement of sales of the Ordinary Shares in the IPO, entitling the holders of the warrants to purchase an aggregate of 232,500 Ordinary Shares at a per share price of $5 (the "Underwriter's Warrants"). The Company valued underwriters' warrants of $0 using residual method.

For the six months ended June 30, 2025, the estimated fair values of the warrant are as follows:

---

| | |
|:---|:---|
|  | **March 7,**<br>**2025** |
| Exercise price | $0.01 |
| Stock price | $4.00 |
| Term | 5 years |
| Expected average volatility | 93% |
| Expected dividend yield | - |
| Risk-free interest rate | 4.09% |

---

The Black-Scholes model, which requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The current stock price is based on the Company's IPO price. Expected volatility is based on the historical stock price volatility of comparable companies' common stock, as our stock does not have sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods.

A summary of activity during the six months ended June 30, 2025, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Warrants Outstanding** | **Warrants Outstanding** | |
|  | **Number of<br> Warrants** | **Weighted Average<br> Exercise Price** | **Weighted Average**<br>**Remaining life<br> (years)** |
| Outstanding, December 31, 2024 | - | $- | - |
| Granted | 1248750 | 0.94 | 5.00 |
| Expired / cancelled | - | - | - |
| Exercised | (1016250) | 0.01 |  |
| Outstanding, June 30, 2025 | 232500 | $5.00 | 4.70 |

---

As of June 30, 2025, all outstanding warrants are exercisable and the intrinsic value of the warrants is $0.

**22. EARNINGS PER SHARE**

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30,<br> 2024** |
|  | **USD** | **AED** | **AED** |
|  | **Basic and Diluted** | **Basic and Diluted** | **Basic and Diluted** |
| Earnings |  |  |  |
| Losses attributable to Micropolis Shareowners | (3281764) | (12050632) | (11567148) |
| Number of Shares |  |  |  |
| Weighted average number of shares | 32052243 | 32052243 | 30000000 |
| Earnings per Share |  |  |  |
| Losses attributable to Micropolis Shareowners per share | (0.10) | (0.38) | (0.39) |

---

**23. SUBSEQUENT EVENTS**

**23.1** 

The company entered into Convertible Note agreement with the new investor. The agreement is between Micropolis Holding Company and Streeterville Capital, LLC (the Investor). Under the deal, the Investor is purchasing a convertible promissory note worth $5,430,000 (with a $400,000 discount and $30,000 in transaction expenses, leaving a net purchase price of $5,000,000) along with a warrant to purchase company shares. The Note carries 8% annual interest and matures in 14 months. It is convertible into ordinary shares of the company at a conversion price of $2.75 per share

The note is guaranteed by Micropolis subsidiary and includes standard protections such as mandatory prepayment from future financings, a "most favored nation" clause, and a 50% participation right in future financings. The Company must reserve 6,750,000 shares to cover conversions and warrant exercises, and file an SEC registration statement covering at least 7,100,000 shares for resale.

In addition to the Note, the Investor receives a warrant to purchase 5,000,000 ordinary shares at an exercise price of $5.00 per share. The Warrant is exercisable starting six months after issuance (or earlier if the registration statement becomes effective) and expires the earlier of nine months after registration effectiveness or fourteen months after issuance. It can be exercised for cash or on a cashless basis, with anti-dilution protections lowering the exercise price if future securities are issued below $5.00.