Primoco UAV SE

Interim Report • Aug 25, 2025

• 1. Statement of Responsible Persons
• 2. Basic Informa8on about the Company, Its Ac8vi8es and the Consolida8on Group
• 3. Descrip8on of Important Events in the First Half of 2025
• 4. Descrip8on of Transac8ons with Related Par8es in the First Half of 2025
• 5. Impact of the Russian Invasion of Ukraine
• 6. Descrip8on of Expected Ac8vi8es and Main Risks and Uncertain8es for the 2nd half of 2025
• 7. Other Data
• 8. Condensed Interim Consolidated Financial Statements under IFRS (unaudited)
  • Consolidated Statement of Comprehensive Income for the Half-Year Ending 30 June 2025
  • Consolidated Statement of Financial PosiBon as of 30 June 2025
  • Consolidated Statement of Changes in Equity for the Half-Year Ending 30 June 2025
  • Consolidated Statement of Cash Flows for the Half-Year Ending 30 June 2025
  • Notes to the Consolidated Financial Statements for the Half-Year Ending 30 June 2025

1. Statement of Responsible Persons

We, the undersigned members of the Board of Directors of PRIMOCO UAV SE, declare that to the best of our knowledge, the condensed financial statements presented below provide a true and fair view of the assets, liabiliGes, financial situaGon, and results of operaGons of the company and its consolidated group, and that the descripGon set out below, pursuant to the provisions of SecGon 119(2)(b) of Act No. 256/2004 Coll., on Capital Market Undertakings, as amended, contains a fair overview of the informaGon required under the said provision.

In Prague, on 18th August 2025

Chairman of the Board of Directors

Ladislav Semetkovský Petr Kováč Romana Wyllie Member of the Board of Directors Member of the Board of Directors

2. Basic Informa8on about the Company, its Ac8vi8es and the Consolidated Group

The company Primoco UAV SE, with its registered office at Výpadová 1563/29f, Postal Code: 153 00, Prague 5 – Rado^n, Company ID No.: 037 94 393, registered in the Commercial Register maintained by the Municipal Court in Prague, SecGon H, File 1546 (hereinaber the "Company"), whose shares (ISIN CZ0005135970) are admifed to trading on the regulated Prime Market, which is part of the regulated market organized by the Prague Stock Exchange, a.s., with its registered office at Rybná 14/682, Postal Code: 110 00, Prague 1, Company ID No.: 471 15 629, registered in the Commercial Register maintained by the Municipal Court in Prague, SecGon B, File 1773, is a leading European manufacturer of medium-sized fully autonomous unmanned aircrab Primoco One 150 and a provider of related aviaGon services.

The Company is the world's first operator to have received the civil EASA LUC 2.5 SAIL III (Light Unmanned CerGficate) authorizaGon to operate a fixed-wing aircrab with a weight of 150 kg. In 2025, the aircrab was also the first in the world to be cerGfied under the NATO military standard STANAG 4703. The Company is also an approved design and producGon organizaGon for military aviaGon technology (DOA/POA) under the EMAR 21 standard.

To date, the Company has manufactured more than 200 unmanned aircrab Primoco One 150, which are operated on four conGnents for the purposes of monitoring strategic infrastructure, border and coastal protecGon, calibraGon of airport navigaGon systems, and other military and civil missions. The Primoco One 150 unmanned aircrab are classified as dual-use products or military material. The unmanned aircrab do not carry any weapon systems.

The consolidated group of the Company consists of the Company itself and Primoco UAV Defence, s.r.o., with its registered office at Výpadová 1563/29f, Postal Code: 153 00, Prague 5 – Rado^n, Company ID No.: 081 05 111, registered in the Commercial Register maintained by the Municipal Court in Prague, SecGon C, File 313076, in which the Company holds a 100% ownership interest. The economic data in SecGons 3 and 8 of this report are always presented for the enGre consolidated group.

3. Descrip8on of Important Events in the First Half of 2025

Dear Shareholders,

I would like to inform you about important events in the Company during the first half of this year.

Finance and Business

In the first half of this year, the Company concluded new contracts for the delivery of 16 Primoco One 150 aircrab worth EUR 15 million (CZK 370 million). In the same period, the Company delivered a total of 14 aircrab to customers, of which 12 came from contracts signed this year and 2 from last year's deals. The Company invoiced total revenues amounGng to CZK 253 million. Four addiGonal aircrab worth EUR 6.1 million (CZK 150 million) remain to be delivered, represenGng the backlog. All these aircrab are desGned for European customers.

CerFficaFon and InnovaFon

The Company's success in acquiring new contracts is supported by its top-level producGon and achieved cerGficaGons. In the first half of this year, the Company became the world's only manufacturer of medium-sized unmanned aircrab to obtain cerGficaGon under NATO STANAG 4703. Without any addiGonal permits or tests, the Company's aircrab can thus be directly deployed on military missions. At the same Gme, the Company also holds the EASA LUC 2.5 SAIL III civil authorizaGon for operaGons over densely populated areas. This facilitates the use of its aircrab, for example, for calibraGng airport radio beacons, providing mobile signal coverage during crisis events and commercial acGviGes taking place outside standard network coverage, or for rescue services.

An example is the current contract in Europe, where Primoco One 150 aircrab patrol vast areas with the aim of detecGng emerging fire outbreaks in Gme and thus prevenGng massive damage that could occur if the fire spread unnoGced. The contract is planned in two phases. IniGally as a service (Drone-as-a-Service), which Primoco is providing during this year's fire season with its own unmanned aircrab and operators; later, the customer will receive its own aircrab, which are currently in producGon. In the meanGme, the pilots and operators who will operate the unmanned aircrab on the customer's side are undergoing intensive training.

ConstrucFon Projects

For training as well as tesGng purposes, the Company uses its own airport in Písek – Krašovice. In 2025 and 2026, the Company plans to revitalize the airport and significantly improve its faciliGes by building a new hangar and the first cerGfied UAV operator training center in Europe. For this project, worth approximately CZK 50 million, the Company obtained the relevant building permit in the first half of 2025.

The Company is also preparing an even larger investment of around CZK 500 million into new producGon capaciGes. In the industrial zone in Písek, near the current factory airfield, a modern service, control, and producGon center will be built with a capacity of up to 300 new unmanned aircrab annually. In the first half of 2025, the Company submifed the applicaGon for the relevant building permit, and in August 2025, the archaeological survey will begin.

RespecJully,

Ladislav Semetkovský Chairman of the Board of Directors

4. Descrip8on of Related-Party Transac8ons in the First Half of 2025

Related parFes of the Company are understood to mean Primoco Capital, s.r.o., Company ID: 230 93 391, as the majority (50.4%) shareholder of the Company; Mr. Ladislav Semetkovský, as the sole (100%) shareholder of Primoco Capital, s.r.o.; further PRIMOCO INVESTMENTS s.r.o., Company ID: 290 60 231, whose sole (100%) shareholder is Mr. Ladislav Semetkovský; the members of the Company's Board of Directors (3 persons); the members of the Company's Supervisory Board (3 persons); other members of the Company's top management (3 persons) and their family members; and further Primoco UAV Defence, s.r.o., Company ID: 081 05 111, whose sole (100%) shareholder is the Company.

All sales of unmanned aircrab manufactured by the Company to end customers are carried out through the subsidiary Primoco UAV Defence, s.r.o., based on a framework agreement. In this respect, during the first half of 2025, transacGons between the Company and Primoco UAV Defence, s.r.o. were carried out in the form of sales of goods and services in the amount of CZK 230,502 thousand.

In August 2024, a lease agreement was concluded between the Company, as lessee, and PRIMOCO INVESTMENTS s.r.o., as lessor, the subject of which is the lease of a Piper M600 aircrab. In the first half of 2025, transacGons between the Company and PRIMOCO INVESTMENTS s.r.o. were carried out in the form of the lease of the Piper M600 aircrab in the amount of CZK 1,800 thousand.

Apart from this, in the given period there were no transacGons with related parGes that significantly influenced or could have influenced the Company's financial results.

For the first half of 2025, the Company provided its members of the Board of Directors, Supervisory Board, and top management with remuneraGon and salaries in the amount of CZK 6,141 thousand. Beyond this, the Company did not provide these persons with any other monetary or non-monetary benefits during the period.

No other transacGons between the Company and related parGes took place in the given period. All the related-party transacGons listed above were carried out under normal market condiGons.

5. Impact of the Russian Invasion of Ukraine

The Company and its subsidiary Primoco UAV Defence, s.r.o. do not maintain direct business relaGonships in the territories of Ukraine, Russia, or Belarus. The Company has no producGon faciliGes or other assets located in these countries, nor are any of its direct suppliers or customers based there. As a result of the Russian invasion, the Company's supply chains have not been disrupted. The Russian invasion of Ukraine therefore does not have a direct negaGve impact on the Company's producGon or sales and does not create uncertainty in this respect.

The Company has only been negaGvely affected by the secondary impacts of the invasion in the form of increased electricity prices and inflaGon. However, already before the beginning of 2025, both inflaGon and energy prices had declined and stabilized compared to the previous period, and the Company does not expect any significant change in this trend by the end of 2025. The Company's acGviGes are therefore not threatened by these secondary impacts of the invasion.

The Company has not adopted any special measures to miGgate or address the impacts of the Russian invasion, nor has it adopted any risk management strategy or received any public support in this respect. The Company has not experienced any significant cybersecurity incidents or an increase in other threats related to the Russian invasion.

Therefore, because of the Russian invasion of Ukraine, the Company has not experienced and does not expect any significant negaGve impacts on its acGviGes or financial situaGon. On the contrary, the geopoliGcal tensions caused by the Russian invasion of Ukraine and the related increase in interest by government actors in strengthening their defense capabiliGes may bring new business opportuniGes for the Company.

6. Descrip8on of the Expected Ac8vi8es and Main Risks and Uncertain8es for the Second Half of 2025

DescripFon of Expected AcFviFes

In the second half of 2025, the Company intends to operate in the same sector, i.e., the producGon and sale of unmanned aircrab. The scope of the Company's producGon acGviGes will depend on the volume of secured orders for unmanned aircrab, with the Company expecGng a further gradual increase in orders in the tens of units, both in view of the geopoliGcal situaGon in the world and the interest of individual states in strengthening their defense capabiliGes, as well as the growing applicaGon of unmanned aircrab in the civil sector.

Given the advanced stage of ongoing negoGaGons regarding aircrab deliveries, the Company expects, in the second half of the year specifically, to conclude contracts for up to 36 addiGonal Primoco One 150 aircrab with a total value of up to EUR 45 million (CZK 1.1 billion).

In the second half of 2025, the Company plans to obtain an ATO (Approved Training OrganizaGon) cerGficate from the Ministry of Defence, following its already valid DOA/POA authorizaGon (for the design and producGon of military aviaGon technology).

The Company intends to conGnue the revitalizaGon of the Písek – Krašovice airport in the second half of 2025 by demolishing old buildings, reconstrucGng an exisGng structure, and construcGng a new hangar and training center at the airport. The Company has obtained a valid building permit for all construcGon works. ConstrucGon is planned to begin in September 2025 and to be completed by April 2026. The planned cost budget is approximately CZK 50 million.

The Company also intends to conGnue with the project to build new producGon capaciGes. In the industrial zone in Písek, near the factory airfield, a modern service, control, and producGon center will be built with a capacity of up to 300 new unmanned aircrab annually. Parallel acGviGes related to the construcGon are currently underway, such as the relocaGon of high-voltage lines, archaeological surveys, and others. The tender for the general contractor is scheduled to be announced in January next year, and if everything proceeds as expected, by 2028 at the latest, the Company will move its producGon to this new, highly automated producGon hall.

The Company does not have any addiGonal informaGon that would indicate a change in the development of the Company's financial results in the second half of 2025 compared to the first half of the year.

Risk of losing significant clients

The Company's business is predominantly based on the execuGon of individual orders and projects. Currently, a few projects are in progress, and the loss of any of them could negaGvely affect the client's financial performance.

CompeFFon risk

The Company competes with several internaGonal compeGtors in the global market. Given the afracGveness of the market segment, further compeGGve entry could have a significant negaGve impact on the Company's selling prices, sales volumes, and future sales prospects.

Risk of not being granted an export license for dual-use goods

The products manufactured by the Company, i.e., unmanned aircrab, consGtute dual-use goods within the meaning of RegulaGon (EU) 2021/821 of the European Parliament and of the Council establishing the Union regime for the control of exports, brokering, technical assistance, transit, and transfer of dual-use items, as amended. There is a risk of not being granted an export license in connecGon with an already concluded contract for the supply of an unmanned aircrab and its accessories, in which case, depending on contractual arrangements, the Company could be obliged to return the advance payment received and would be unable to complete the relevant business transacGon.

Risk of loss of know-how and key employees

The Company has two key areas of know-how. The first is the producGon of specific technology and the combinaGon of sensors in a unique unmanned aircrab that can be mass-produced and adapted to individual customer needs. The second is a detailed understanding of specific customer needs in specific regions, which the Company acquires through direct contact by its sales team. The loss of key employees (and thus know-how) in these areas would result in a decrease in the Company's sales unGl new employees were recruited and trained. However, the Company is not aware of any specific facts suggesGng the loss of key employees or know-how in the second half of 2025.

Risk related to property insurance

The Company has property insurance covering all significant assets. However, it cannot be guaranteed that costs associated with possible natural disasters or other unforeseen events (such as fire, storms, floods, inundaGon, windstorms, hail, etc.) would not negaGvely impact the Company's property, business, and financial situaGon, as the insurance does not provide full coverage of all risks related to the Company's assets.

Credit risk

Since the Company largely uses advance payments to finance producGon, the credit risk arising from business relaGonships is not significant. Apart from advances, the Company does not use other forms of security. The Company's management has an established credit policy, and exposure to credit risk is therefore conGnuously monitored.

Liquidity risk

Since the Company uses advance payments from customers to finance producGon and purchase components, the risk of a shortage of liquid funds arises if the product is not delivered in the required quality and/or on Gme, which could lead to refusal of payment of the balance of the purchase price, or a demand for repayment of the advance and possible penalGes. In such a case, the Company might not be able to meet its obligaGons to suppliers. However, the Company is not aware of any specific facts suggesGng the realizaGon of this risk in the second half of 2025.

7. Other Informa8on

This semi-annual financial report is based primarily on the condensed interim consolidated financial statements prepared as of 30 June 2025 in accordance with InternaGonal AccounGng Standards (IAS) and InternaGonal Financial ReporGng Standards (IFRS) as adopted by the European Union.

This semi-annual financial report has not been audited.

8. Condensed Interim Consolidated Financial Statements under IFRS (unaudited)

Condensed Interim Consolidated Financial Statements (unaudited)

for the period from 1 January 2025 to 30 June 2025

Primoco UAV SE

Prague, 18th August 2025

Ladislav Semetkovský, Chairman of the Board of Directors of Primoco UAV SE

Consolidated Statement of Comprehensive Income for the Half-Year Ended 30 June 2025

30/6/2025	30/6/2024
CZK Thous.	CZK Thous.

	Note
Revenues from contracts with customers	9	249,104	331,252
Other operaGng income	10	3,731	41
Change in inventories of finished goods and work in progress		-3,634	3,257
ConsumpGon of materials and energy		106,132	147,545
Personnel Expenses	26	30,343	18,443
Costs of services, repairs, and maintenance	11	21,821	8,892
DepreciaGon and amorGzaGon expenses		6,608	3,275
Impairment losses on assets		-	-
Other operaGng expenses	12	6,804	850
Finance costs	13	966	682
Finance income	13	2,280	5,047
Other income		-	-
Profit/Loss before tax		86,075	153,396
Income Tax	24	18,928	32,200
Profit for the period		67,147	121,196
Earnings per share	14
- Basic, earnings per share afributable to holders of ordinary shares of the parent company		14,26	25,74
OTHER COMPREHENSIVE INCOME
RevaluaGon gain (loss) on assets		-	-
Total other comprehensive income		-	-
Total comprehensive income for the period		67,147	121,196

Consolidated Statement of Financial Position as of 30 June 2025

		30/6/2025	31/12/2024	30/6/2024
		CZK thous.	CZK thous.	CZK thous.
	Note
ASSETS
Non-current assets
Land, buildings and equipment	16	154,903	144,108	49,401
Intangible assets	15	16,194	15,290	12,809
Right-of-use assets	17	4,895	7,173	702
Deferred tax assets	24	177	173	588
		176,169	166,744	63,500
Current assets
Inventories	18	76,751	97,579	50,949
Trade and other receivables	19	136,554	435	400,005
Trade and other receivables	9,1	-	-	-
Tax receivables		6,421	-	-
Other current receivables and financial
assets	20	59	3,066	384
Cash and cash equivalents	21	213,713	230,636	57,512
		433,498	331,716	508,850
TOTAL ASSETS		609,667	498,460	572,350
EQUITY
Share capital	25	4,709	4,709	4,709
Share premium	25	159,269	159,269	159,269
Other reserves		-	-	-
Retained earnings		368,291	301,084	300,208
Total equity		532,269	465,062	464,187
Non-current liabiliFes
Lease liabiliGes – non-current	17	2,072	2,072	-
Deferred tax liabiliGes		-	-	-
		2,072	2,072	-
Current liabiliFes
Trade and other payables	22	70,562	1,480	68,680
Contract liabiliGes	9,1	-	15,301	-
Lease liabiliGes	17	2,876	5,177	639
Government grants		1,688	285	6,444
Income tax liabiliGes		-	8,883	32,200
Provisions	23	200	200	200
		75,326	31,326	108,163
Total liabiliFes		77,398	33,398	108,163
TOTAL EQUITY AND LIABILITIES		609,667	498,460	572,350

Consolidated Statement of Changes in Equity for the Half-Year Ended 30 June 2025

	Note	Equity	Share premium	Retained earning	Total equity
CZK thous.
Balance as of 1 January 2024		4,709	159,269	172,012	342,990
Profit for the period		-	-	121,196	121,196
Comprehensive income for the period		4,709	159,269	300,208	464,187
Balance as of 30 June 2024		4,709	159,269	300,208	464,187
Balance as of 1 January 2025		4,709	159,269	301,084	465,062
Profit for the period		-	-	67,147	67,147
Other comprehensive income		-	-	60	60
Comprehensive income for the period		4,709	159,269	368,291	532,269
Balance as of 30 June 2025		4,709	159,269	368,291	532,269

Consolidated Statement of Cash Flows for the Half-Year Ended 30 June 2025

CZK thous.	Note	30/6/2025	30/6/2024
Cash flows from operaFng acFviFes
Profit before tax		86,075	315,035
Adjustments:
DepreciaGon and amorGzaGon expenses		6,608	3,275
Finance income	13	-2,280	-4,905
Financial costs	13	966	27
Change in provisions	23	-	-
Foreign exchange differences		-	-
Gain on disposal of land, buildings and equipment		1,105	-
Other non-cash items		419	-68
Working capital adjustments:		-
Change in trade and other receivables		263,451	-288,638
Change in inventories		-25,802	73,844
Change in trade and other payables		-2,874	-200,544
		327,668	-101,974
Interest received		2,280	4,905
Interest paid on lease liabiliGes	17	-125	-27
Income tax paid		-57,138	1
Net cash flows from operaFng acFviFes		272,685	-97,095
Cash flows from invesFng acFviFes
Proceeds from sale of land, buildings and equipment		3,240	-
Purchase of land, buildings and equipment		-111,547	-15,370
Purchase of intangible assets		-3,385	-7,563
Capitalized development costs		-	-
Net cash flows from invesFng acFviFes		-111,692	-22,933
Cash flows from financing acFviFes
Repayments of lease liabiliGes	17	-4,792	-1,777
Proceeds from issue of shares		-	-
Dividends paid		-	-
Net cash flows from financing acFviFes		-4,792	-1,777
Net increase in cash and cash equivalents		156,201	-121,805
Effect of exchange rate changes		-	-
Cash and cash equivalents at the beginning of the period		57,512	179,317
Cash and cash equivalents at the end of the period	21	213,713	57,512

Notes to the Consolidated Financial Statements for the Half-Year Ended 30 June 2025

1. Company Informa,on

Primoco UAV SE (hereinaber the "Company" or the "Parent Company") is a joint-stock company incorporated and domiciled in the Czech Republic, whose shares are publicly traded on the Prague Stock Exchange. The Company's registered office is at Výpadová 1563/29f, 153 00 Prague 5. The Company's idenGficaGon number is 037 94 393. The Company is the sole shareholder of Primoco UAV Defence s.r.o., with its registered office at Výpadová 1563/29f, 153 00 Prague 5 (hereinaber "Primoco Defence" or the "Subsidiary").

The Company and its subsidiary (together hereinaber the "Group") are engaged in the producGon and sale of medium-sized, fully autonomous unmanned aerial vehicles (UAVs) and the provision of related aviaGon services.

The Group has its own research and development team and trained personnel capable of producing up to 65 aircrab per year. The aircrab are manufactured and assembled from in-house components – the engine, airframe, and other parts. In 2018, the Group carried out an iniGal public offering of approximately six percent of its shares on the Prague Stock Exchange. Through the subscripGon, the Group raised CZK 63 million, which it used, among other things, to acquire the factory airport in Písek-Krašovice. The Group conGnues its acGviGes and develops its UAV capabiliGes without foreign capital, bank loans, or subsidies. In addiGon, in 2021 the Group raised CZK 90.5 million in new funds through a secondary share issue.

The Group holds ISO 9001 cerGficaGon and is an approved organizaGon for the design and producGon of military aviaGon technology (DOA/POA). In 2019, through its subsidiary Primoco UAV Defence, s.r.o., it obtained a license from the Ministry of Industry and Trade of the Czech Republic to trade in military material. In 2024, the Group received from the Civil AviaGon Authority of the Czech Republic the EASA LUC 2.5 SAIL III (Light Unmanned CerGficate). The Group does not manufacture or sell combat UAVs with muniGons. Military material is used only at the level of sensors, special electronics, and sobware. The Group's main target markets are primarily Europe, the Middle East, and Asia. The Group offers customers clearly demonstrable economic benefits compared to the use of alternaGve soluGons (e.g., helicopters).

2. Basis of Prepara,on

The Group's consolidated financial statements are prepared in accordance with InternaGonal Financial ReporGng Standards as adopted by the European Union (hereinaber "IFRS"). The consolidated financial statements are prepared on a historical cost basis. The consolidated financial statements are presented in Czech crowns, and all values are rounded to thousands of CZK unless otherwise stated. The consolidated financial statements are prepared on a going concern basis. The Group's fiscal year begins on 1 January and ends on 30 June.

Auditor's remuneraFon

The audit firm Grant Thornton Audit s.r.o. provided audit services for the year 2024, for which it was paid a fee of CZK 665 thousand in the period from 1 January to 30 June 2025. As of the end of the first half of 2025, no nonaudit services had been provided or invoiced by the statutory auditor.

The General MeeGng approved Grant Thornton Audit s.r.o. as the audit firm for the audit of the financial statements for 2025. The fee will be paid in 2026.

3. Consolida,on Principals

The consolidated financial statements include the financial statements of Primoco UAV SE and its subsidiary. Control is achieved when the Group is exposed to, or has rights to, variable returns from its involvement with the investee and can affect those returns through its power over the investee. Control is achieved only when all the following condiGons are met:

• It has power over the investee (i.e., exisGng rights that give the current ability to direct the relevant acGviGes of the investee);
• It is exposed to variable returns or has rights to variable returns from its involvement with the investee; and
• It can use its power over the investee to affect its returns.

It is presumed that control exists when the Group owns the majority of the voGng rights. In addiGon to this presumpGon, and in cases where the Group holds less than a majority of the voGng rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has control, including:

• Contractual arrangements with other shareholders of the investee;
• Rights arising from other contractual arrangements; and
• The Group's actual and potenGal voGng rights.

The Group reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the elements of control listed above. ConsolidaGon of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabiliGes, income, and expenses of a subsidiary are included in the consolidated financial statements from the date the Group gains control unGl the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income ("OCI") are afributed to the owners of the Parent Company and to non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Where necessary, adjustments are made to the financial statements of subsidiaries to align their accounGng policies with the Group's accounGng policies. All intragroup assets, liabiliGes, equity, income, expenses, and cash flows relaGng to transacGons between members of the Group are eliminated on consolidaGon.

Changes in the Group's ownership interests in subsidiaries that do not result in a loss of control are accounted for as equity transacGons.

If the Group loses control of a subsidiary, it derecognizes the related assets (including goodwill), liabiliGes, noncontrolling interest, and other equity components, and recognizes the resulGng gain or loss in profit or loss. Any retained investment in the former subsidiary is recognized at fair value.

4. Significant Accoun,ng Policies

The accounGng policies applied in the preparaGon of the consolidated financial statements are presented below. These accounGng policies have been applied consistently in all material respects to the periods presented.

4.1. Revenue from Contracts with Customers

Revenue RecogniFon

Revenue is recognized when the Group has fulfilled its performance obligaGon and when the amount of revenue can be measured reliably. The Group recognizes revenue in an amount that reflects the consideraGon to which it expects to be enGtled (net of expected discounts) in exchange for transferring goods or services to a customer.

All contracts with customers are analyzed upon conclusion to idenGfy all performance obligaGons to the customer. The transacGon price is then determined and allocated to the individual performance obligaGons based on their stand-alone selling prices. Subsequently, revenue is recognized for each obligaGon in the appropriate amount when control of the goods or services transfers to the customer, either at a point in Gme or over Gme.

Revenue from the sale of aircrab, control units, payloads, and spare parts is recognized when control is transferred to the customer and the amount of revenue is agreed or can be measured reliably, and collecGon is probable. This generally corresponds to the moment the goods are delivered to the customer.

Revenue from services sold together with an aircrab, but which are disGnct from it (e.g., pilot and mechanic training) and which will be provided in future periods, are idenGfied as separate performance obligaGons and are recognized when the service is provided, or on a straight-line basis over the specified period if the services are delivered conGnuously over several months. Payments received are iniGally recognized within contract liabiliGes from received payments and are subsequently released into revenue over the contract term as the services are performed.

Contract Assets

A contract asset is the Group's right to consideraGon in exchange for goods, products, or services it has transferred to the customer. If the Group transfers goods, products, or services to the customer before the customer pays consideraGon, or before payment becomes due, the Group records the condiGonal consideraGon as a contract asset.

Contract LiabiliFes

A contract liability is recognized when the Group has received consideraGon from a customer, or when consideraGon is due (whichever occurs earlier), before the Group has transferred the related goods or services. Contract liabiliGes are recognized as revenue when the Group performs under the contract (i.e., transfers control of the related goods or services to the customer).

Trade Receivables

A receivable is recognized when the Group has an uncondiGonal right to consideraGon (i.e., only the passage of Gme is required before payment of that consideraGon is due).

4.2. Intangible Assets

Intangible assets acquired separately are iniGally measured at cost. Aber iniGal recogniGon, intangible assets are carried at cost less accumulated amorGzaGon and accumulated impairment losses. Internally generated

intangible assets, except for capitalized development costs, are not recognized as assets and the related expenditures are recognized in profit or loss in the period in which they are incurred. Directly afributable costs that are capitalized as part of sobware include employee costs and an appropriate porGon of relevant overhead costs. Capitalized development costs are recognized as intangible assets and amorGzed from the point at which the asset is ready for use.

The useful life of intangible assets is assessed as either finite or indefinite.

Intangible assets with a finite useful life are amorGzed over their useful life and assessed for impairment whenever there is an indicaGon that the intangible asset may be impaired. The amorGzaGon period and amorGzaGon method for an intangible asset with a finite useful life are reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pafern of consumpGon of future economic benefits embodied in the asset are accounted for as changes in amorGzaGon period or method and treated as changes in accounGng esGmates.

AmorGzaGon of intangible assets with finite useful lives is recognized on a straight-line basis over the esGmated useful lives as follows:

	Years
Intangible development results	6
Sobware	3
Other intangible rights	6
Other long-term intangible assets	1.5

Gains or losses from the derecogniGon of an intangible asset are measured as the difference between the net proceeds from disposal and the carrying amount of the asset and are recognized in profit or loss at the Gme the asset is derecognized.

4.3. Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciaGon and any accumulated impairment losses. The cost includes the total amount paid and the fair value of any other consideraGon provided to acquire the asset and includes costs directly afributable to bringing the asset to the locaGon and condiGon necessary for it to be capable of operaGng as intended.

Where significant parts of property, plant and equipment must be replaced at certain intervals, the Group depreciates them separately based on their specific useful lives. Similarly, when a major inspecGon is carried out, its cost is recognized in the carrying amount of property, plant and equipment as a replacement, provided the recogniGon criteria are met. All other repair and maintenance costs are recognized in profit or loss as incurred.

DepreciaGon is charged on a straight-line basis over the esGmated useful life of the asset as follows:

	Years
Buildings	20-30
Vehicles	5
Test Aircrab	5
Component Moulds	3
Other Tangible Assets	3-5

Land and assets under construcGon are not depreciated.

Land, buildings and equipment, and their significant parts iniGally recognized, are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gains or losses arising from derecogniGon of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) are included in profit or loss at the Gme of derecogniGon of the asset.

Residual values, useful lives and depreciaGon methods of land, buildings and equipment are reviewed at the end of each financial year and adjusted prospecGvely if appropriate.

Items of land, buildings and equipment with a useful life of more than one year and a cost of less than CZK 80 thousand are charged directly to expenses.

4.4. Impairment of Assets

The Group assesses at each reporGng date whether there are any indicaGons that the value of an asset may be impaired. If any such indicaGon exists, or when annual impairment tesGng of an asset is required, the Group esGmates the asset's recoverable amount. The recoverable amount of an asset is the higher of the fair value of the asset or cash-generaGng unit ("CGU") less costs of disposal, and its value in use. The recoverable amount is determined for an individual asset if the asset generates cash inflows that are largely independent of those from other assets or groups of assets. If the carrying amount of the asset or CGU exceeds its recoverable amount, the asset is considered impaired and is wrifen down to its recoverable amount.

In assessing value in use, the esGmated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the Gme value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transacGons are considered if available. If such transacGons cannot be idenGfied, an appropriate valuaGon model is used. These calculaGons are corroborated by valuaGon mulGples, quoted share prices of publicly traded companies, or other available fair value indicators.

Impairment losses of conGnuing operaGons are recognized in profit or loss.

For assets, at each reporGng date, the Group assesses whether there are indicaGons that previously recognized impairment losses no longer exist or have decreased. If such indicaGons exist, the Group esGmates the recoverable amount of the asset or CGU. A previously recognized impairment loss is reversed only if there has been a change in the assumpGons used to determine the recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount or the carrying amount that would have been determined, net of depreciaGon, had no impairment loss been recognized in prior years. Such reversal is recognized in profit or loss.

Intangible assets with indefinite useful lives are tested for impairment annually as of 31 December, either individually or at the CGU level, if circumstances indicate that the carrying amount may be impaired.

4.5. Leasing

IdenFficaFon of the lease asset – lease agreement

A lease is a contract or part of a contract that conveys the right to use an idenGfiable asset for a period in exchange for consideraGon. At the incepGon of a contract, the Group assesses whether it is a lease or contains a lease. The Group reassesses whether a contract is or contains a lease only if the terms of the contract change.

The Group assesses whether the contract conveys the right to control the use of an idenGfiable asset for a period based on:

• The Group has the right to obtain substanGally all economic benefits from the use of the asset during the period of use;
• The lease is agreed for a specific asset and the lessor has no right to subsGtute it or derive financial gain from such subsGtuGon;
• The Group has the right to direct the use of the idenGfiable asset;
• The lease is longer than 12 months (short-term lease exempGon permifed under IFRS 16); and
• The value of a new asset is higher than CZK 80,000 (low-value exempGon permifed under IFRS 16).

The Group assesses whether a contract contains a lease for each potenGal lease component separately. The Group has no external subleases outside the Group and no contracts where the Group is a lessor.

Lease liability

At the commencement date of the lease, the lessee measures the lease liability at the present value of the lease payments that are not paid at that date. Lease payments are payments made by the lessee to the lessor for the right to use the underlying asset during the lease term. These payments include:

• fixed payments (less any lease incenGves),
• variable lease payments that are indexed or fixed to a parGcular rate,
• purchase opGons, if it is reasonably certain that the lessee will exercise the opGon,
• payments of penalGes for terminaGng the lease, if the lease term reflects the lessee exercising the opGon to terminate.

Aber the commencement date, variable lease payments that are not included in the measurement of the lease liability are recognized in profit or loss in the period in which the event or condiGon that triggers those payments occurs. Interest on the lease liability is recognized as a finance cost of the Group.

Right-of-use asset

The Group measures the right-of-use asset at the commencement date of the lease based on the lease agreement. This measurement is based on:

• the value of the lease liability increased by any lease payment made by the Group before the commencement date of the lease (less lease incenGves – discounts);
• iniGal direct costs of the lease paid by the Group;
• the esGmated costs of dismantling and removing the idenGfied asset or restoring the site on which the asset was located; and
• an increase for costs of modificaGons and reconstrucGon of the asset required by the lease agreement, by creaGng a provision in accordance with IAS 37 Provisions, ConGngent LiabiliGes and ConGngent Assets.

Right-of-use assets are generally depreciated on a straight-line basis over the useful life of the asset or the lease term, whichever is shorter.

4.6. Foreign Currency Transac8ons

The Group's consolidated financial statements are presented in Czech crowns. Items included in the financial statements of each enGty are measured in this funcGonal currency.

TransacGons in foreign currencies are iniGally recorded by the Group's enGGes at the funcGonal currency rates prevailing at the dates of the transacGons.

Monetary assets and liabiliGes denominated in foreign currencies are translated at the funcGonal currency spot rate prevailing at the balance sheet date.

Exchange differences arising on seflement or translaGon of monetary items are recognized in profit or loss as financial income and expenses.

Non-monetary items measured at historical cost in a foreign currency are translated using the exchange rates prevailing at the dates of the iniGal transacGons.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates prevailing at the date when the fair value was determined.

The gain or loss arising on translaGon of a non-monetary item measured at fair value is recognized consistently with the recogniGon of the gain or loss on the change in fair value of the item.

4.7. Financial Instruments (IFRS 9)

A financial instrument is any contract that gives rise to a financial asset of one enGty and a financial liability or equity instrument of another enGty.

Financial Assets

Financial assets are classified based on the Group's business model and the contractual cash flow characterisGcs. Under IFRS 9, financial assets are divided into the following categories: financial assets subsequently measured at amorGzed cost ("AC"), financial assets measured at fair value through other comprehensive income ("FVTOCI"), and financial assets measured at fair value through profit or loss ("FVTPL").

Trade receivables and other receivables that do not contain a significant financing component, or for which the Group has applied the pracGcal expedient, are measured at the transacGon price determined in accordance with IFRS 15.

The Group's financial assets include cash and trade and other receivables without a significant financing component, which meet the criteria for classificaGon as AC.

Trade and Other Receivables

Trade and other receivables are recognized at their original invoiced amount less an allowance for impairment.

The Group's impairment policy for receivables is described below, and further informaGon on trade and other receivables is provided in Note 19.

Impairment of Financial Assets Measured at AmorFzed Cost

Since the Group's financial statements include only financial assets represenGng trade and other receivables without a significant financing component, the Group applies the simplified approach in calculaGng expected credit losses ("ECL"). Therefore, the Group does not monitor changes in credit risk but instead recognizes a loss allowance based on lifeGme ECL at each reporGng date.

The carrying amount of the asset is reduced either directly or through an allowance account. The amount of the loss is recognized in profit or loss.

The simplified approach adopted by the Group uses elements of the general approach, the main difference being that staging of financial assets is not applied.

The determinaGon of ECL is based on three components used by the Group: probability of default ("PD"), exposure at default ("EAD"), and loss given default ("LGD"):

• PD is an esGmate of the likelihood of default within a given Gme horizon. It is calculated from a combinaGon of customers' financial condiGon and performance, transacGonal data, volumes, and payment behavior. The set of variables differs according to scorecards applied to customers, which are determined by their country of residence.
• EAD is an esGmate of the exposure at a future default date, considering expected changes in exposure aber the reporGng period, including principal and interest repayments and expected drawdowns of commifed credit limits.
• LGD is an esGmate of the loss arising if a default occurs. It is based on the difference between the contractual cash flows due and the cash flows that the lender expects to receive, including from any collateral. It is usually expressed as a percentage of EAD.

Receivables are wrifen off when they are assessed as uncollecGble.

Financial LiabiliFes

Financial liabiliGes are primarily classified at fair value. The Group's financial liabiliGes include trade and other payables.

Trade and Other Payables

Trade payables are recognized at nominal value, which is substanGally the same as fair value.

DerecogniFon

A financial liability is derecognized when the obligaGon is discharged, cancelled, or expires. If an exisGng financial liability is replaced by another liability from the same lender under substanGally different terms, or if the terms of an exisGng liability are substanGally modified, such an exchange or modificaGon is treated as a derecogniGon of the original liability and the recogniGon of a new liability. The difference in the respecGve carrying amounts is recognized in profit or loss.

4.8. Inventories

Inventories are measured at cost or net realizable value, whichever is lower. The acquisiGon costs are assigned to individual items based on the "first in, first out" (FIFO) method (the iniGal cost when valuing the increase in inventories is used as the iniGal cost when valuing the decrease in inventories). Costs of purchased inventories include costs related to acquisiGon (transport, customs duGes, commissions, etc.).

Inventories created by the enGty's own acGviGes are measured at own producGon costs, which include direct costs incurred in producGon or other acGvity, and, where appropriate, a porGon of indirect costs related to producGon or other acGvity.

Net realizable value is the esGmated selling price in the ordinary course of business less the esGmated costs of compleGon and the esGmated costs necessary to make the sale.

4.9. Cash and Cash Equivalents

Cash and short-term deposits in the statement of financial posiGon include cash on hand and cash at banks.

For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash and shortterm deposits, as defined above, net of outstanding overdrabs, as these are considered an integral part of the Group's cash management.

4.10. Provisions

Provisions are recognized when the Group has a present obligaGon (legal or construcGve) because of a past event, it is probable that an ouwlow of resources embodying economic benefits will be required to sefle the obligaGon, and a reliable esGmate can be made of the amount of the obligaGon. The expenses related to a provision are recognized in profit or loss.

Where the effect of the Gme value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounGng is used, the increase in the provision due to the passage of Gme is recognized as a finance cost.

4.11. Cash dividends to the Company's shareholders

The Company recognizes a liability to pay cash amounts to its shareholders when the distribuGon is approved, and the payment is no longer at the discreGon of the Company. Under the laws of the Czech Republic on business corporaGons, a distribuGon is approved once it has been approved by the shareholders. The corresponding amount is recognized directly in equity.

4.12. Taxes

Current Tax

Current income tax receivables and payables for the period are measured at the amount expected to be recovered from, or paid to, the tax authoriGes. The tax rates and tax laws used to compute the amount are those that are enacted or substanGvely enacted at the reporGng date.

Current income tax relaGng to items recognized directly in equity is recognized in equity and not in profit or loss. The Group's management regularly evaluates posiGons taken in tax returns with respect to situaGons in which applicable tax regulaGons are subject to interpretaGon and establishes provisions where appropriate. As of 30 June 2025, no tax provisions were recognized.

Deferred Tax

Deferred tax is calculated separately for each Group company using the liability method on temporary differences between the tax bases of assets and liabiliGes and their carrying amounts for financial reporGng purposes at the reporGng date.

Deferred tax liabiliGes are recognized for all taxable temporary differences except:

• Where the deferred tax liability arises from the iniGal recogniGon of goodwill, or of an asset or liability in a transacGon that is not a business combinaGon and, at the Gme of the transacGon, affects neither the accounGng profit nor taxable profit or loss.
• In respect of taxable temporary differences associated with investments in subsidiaries and associates, when the Gming of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deducGble temporary differences, the carryforward of unused tax credits, and unused tax losses to the extent that it is probable that taxable profit will be available against which the deducGble temporary differences, unused tax credits, and unused tax losses can be uGlized, except:

• When the deferred tax asset relaGng to deducGble temporary differences arises from the iniGal recogniGon of an asset or liability in a transacGon that is not a business combinaGon and, at the Gme of the transacGon, affects neither the accounGng profit nor taxable profit or loss.
• In respect of deducGble temporary differences associated with investments in subsidiaries and associates, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be uGlized.

The carrying amount of deferred tax assets is reviewed at each reporGng date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all the deferred tax asset to be uGlized. Unrecognized deferred tax assets are reassessed at each reporGng date and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabiliGes are measured at the tax rates that are expected to apply in the year in which the asset is realized, or the liability is sefled, based on tax rates (and tax laws) that have been enacted or substanGvely enacted at the reporGng date.

Deferred tax relaGng to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlaGon to the underlying transacGon either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabiliGes are offset if a legally enforceable right exists to set off current tax assets against current tax liabiliGes, and the deferred taxes relate to the same taxable enGty and the same taxaGon authority.

Tax benefits acquired in a business combinaGon that do not saGsfy the criteria for separate recogniGon at that date are subsequently recognized if new informaGon about facts and circumstances changes. The adjustment is either treated as a reducGon to goodwill (if it does not exceed goodwill and arises during the measurement period) or recognized in profit or loss.

5. Adop8on of New or Revised Standards

The amendments do not have a significant impact on the Group's consolidated financial statements.

5.1. Applica8on of new IFRS accoun8ng standards – New or amended standards that are effec8ve and have been approved by the European Union

IAS 1 PresentaBon of Financial Statements: ClassificaBon of Current and Non-current LiabiliBes (amendment)

The amendment is mandatory for annual reporGng periods beginning on or aber 1 January 2024 and is applied retrospecGvely. Its purpose is to clarify the principles of IAS 1 regarding the classificaGon of liabiliGes as either current or non-current. In this context, the amendment clarifies the meaning of the right to defer seflement and sets out the requirement that such a right must exist at the end of the reporGng period. Furthermore, the amendment states that the classificaGon of a liability as current or non-current is not affected by management's intenGons or by counterparty opGons that could lead to seflement through the transfer of the enGty's own equity instruments. With respect to covenants, the amendment clarifies that only those covenants that the enGty is required to comply with on or before the reporGng date affect the classificaGon of a liability. In addiGon, the amendment expands the explanatory and disclosure requirements in the notes to the financial statements concerning non-current liabiliGes arising from loan agreements containing covenants that must be met within twelve months aber the reporGng period.

IFRS 16 Leases: Lease Liability in a Sale and Leaseback (amendment)

The amendment is mandatory for annual reporGng periods beginning on or aber 1 January 2024. Its purpose is to clarify the requirements for a seller-lessee when measuring the lease liability arising from a sale and leaseback transacGon under IFRS 16. The amendment does not change the accounGng for leases unrelated to sale and leaseback transacGons.

Based on this amendment, the seller-lessee will determine "lease payments" or "revised lease payments" in such a way that no gain or loss is recognized in relaGon to the right-of-use asset that it retains. However, it will sGll be able to recognize in profit or loss any gain or loss related to the parGal or full terminaGon of a lease.

The amendment is applied retrospecGvely to sale and leaseback transacGons entered into aber the date of iniGal applicaGon, i.e., from the beginning of the annual reporGng period in which the enGty first applied IFRS 16.

IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements (amendments)

The amendments are mandatory for annual reporGng periods beginning on or aber 1 January 2024. They supplement the requirements already included in IFRS Standards by requiring an enGty to disclose the terms of supplier finance arrangements. EnGGes will now be required to disclose in the notes to the financial statements the carrying amount of financial liabiliGes from supplier finance arrangements at the beginning and at the end of

the reporGng period, the line items in the financial statements in which these liabiliGes are presented, as well as the carrying amount of financial liabiliGes (and related line items) for which the finance providers have already sefled the related trade payables. In addiGon, enGGes will have to disclose the type and effect of non-cash changes in the carrying amount of financial liabiliGes from supplier finance arrangements that make the carrying amounts of financial liabiliGes in different periods non-comparable. Furthermore, the amendments require enGGes to disclose, at the beginning and at the end of the reporGng period, the range of payment due dates for financial liabiliGes to finance providers and for comparable trade payables that are not part of such arrangements.

IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (amendment) The amendment is mandatory for annual reporGng periods beginning on or aber 1 January 2024, but enGGes may apply it earlier. It explains how an enGty should assess whether a currency is exchangeable and how to determine the spot exchange rate when a currency is not exchangeable. A currency is considered exchangeable if the enGty can obtain another currency for it within a Gme frame consistent with normal administraGve delay, through a market or exchange mechanism under which the exchange transacGon creates enforceable rights and obligaGons. If a currency is not exchangeable, the enGty must esGmate the spot exchange rate at the measurement date. The objecGve is to determine the rate at which an orderly exchange transacGon would take place at the measurement date between market parGcipants under current economic condiGons. In accordance with the amendment, the enGty may use an observable exchange rate without adjustment or apply another esGmaGon technique.

5.2. New or amended standards that are not yet mandatory and have not yet been

endorsed by the European Union

IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – ClassificaFon and Measurement of Financial Instruments (amendments)

The amendments are effecGve for annual reporGng periods beginning on or aber 1 January 2026. Earlier applicaGon of the amendments relaGng to the classificaGon of financial assets and related disclosure of financial informaGon is permifed, with the opGon to apply the other amendments at a later date. The amendments clarify that a financial liability is derecognized on the "seflement date," when the liability is discharged, cancelled, expires, or otherwise meets the derecogniGon criteria. They introduce the opGon of an accounGng policy to derecognize liabiliGes sefled via electronic payment systems before the seflement date, subject to certain condiGons. The amendments also provide guidance on assessing the contractual cash flow characterisGcs of financial assets that include environmental, social, or governance (ESG) features or other similar conGngent terms. In addiGon, they clarify the treatment of non-recourse assets and contractually linked instruments and require addiGonal disclosures under IFRS 7 for financial assets and liabiliGes with conGngent event references (including ESG-linked features) and for equity instruments measured at fair value through other comprehensive income.

IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Contracts for Renewable Energy-Linked Electricity (amendments)

The amendments are effecGve for annual reporGng periods beginning on or aber 1 January 2026, with earlier applicaGon permifed. The amendments include clarificaGon on the applicaGon of the "own use" exempGon, allowance for hedge accounGng if contracts within the scope of the amendments are used as hedging instruments, and new disclosure requirements to help investors understand the impact of such contracts on the group's financial performance and cash flows. ClarificaGons relaGng to the "own use" requirements must be applied retrospecGvely, but the guidance permixng hedge accounGng must be applied prospecGvely to new hedging relaGonships designated on or aber the date of iniGal applicaGon.

IFRS 18 PresentaFon and Disclosure in Financial Statements

IFRS 18 introduces new requirements for presentaGon in the statement of profit or loss. It requires enGGes to classify all income and expenses into one of five categories: operaGng; invesGng; financing; income tax; and disconGnued operaGons. These categories are supplemented with requirements to present subtotals and totals for "operaGng profit or loss," "profit or loss before financing and income tax," and "profit or loss." The standard also requires disclosure of management-defined performance measures and introduces new requirements for aggregaGon and disaggregaGon of financial informaGon based on idenGfied "roles" in the financial statements and the notes. In addiGon, related amendments will be made to other IFRS standards. IFRS 18 is effecGve for annual reporGng periods beginning on or aber 1 January 2027, with earlier applicaGon permifed. RetrospecGve applicaGon is required for both annual and interim financial statements.

IFRS 19 Subsidiaries without Public Accountability: Disclosures

IFRS 19 allows subsidiaries without public accountability to apply reduced disclosure requirements if their parent (ulGmate or direct, or indirect) prepares publicly available consolidated financial statements in accordance with IFRS. These subsidiaries must sGll apply recogniGon, measurement, and presentaGon requirements of other IFRS standards. Unless otherwise specified, enGGes elecGng to apply IFRS 19 will not need to apply disclosure requirements from other IFRS standards. IFRS 19 is effecGve for annual reporGng periods beginning on or aber 1 January 2027, with earlier applicaGon permifed.

Annual Improvements to IFRS Standards – Cycle 11

The IASB's annual improvements process addresses non-urgent but necessary clarificaGons and amendments to IFRS. In July 2025, the IASB issued Annual Improvements to IFRS Standards – Cycle 11. EnGGes are required to apply these amendments for annual reporGng periods beginning on or aber 1 January 2026. The amendments affect IFRS 1, IFRS 7, IFRS 9, IFRS 10, and IAS 7. They aim to clarify wording, fix minor unintended consequences, oversights, or inconsistencies across standards.

IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or ContribuFon of Assets between an Investor and its Associate or Joint Venture (amendments)

The amendments address the conflict between IFRS 10 and IAS 28 regarding accounGng for the loss of control of a subsidiary when it is sold or contributed to an associate or joint venture. The main effect of the amendments is that if the assets subject to the transacGon consGtute a business (regardless of whether it is part of a subsidiary), the related gain or loss will be recognized in full. Conversely, if the assets subject to the transacGon do not consGtute a business (even if they are part of a subsidiary), the enGty will recognize only a parGal gain or loss. In December 2015, the IASB deferred the effecGve date of these amendments indefinitely, pending the outcome of a research project on the equity method

The Group's management expects that the adopGon of these standards, amendments to exisGng standards, and interpretaGons, when applied for the first Gme, will not have a significant impact on the Group's consolidated financial statements.

6. Significant Accoun8ng Judgments, Es8mates, and Assump8ons

PreparaGon of the consolidated financial statements requires the use of esGmates and assumpGons that affect the reported amounts of revenues, expenses, assets, and liabiliGes, as well as the disclosure of conGngent assets and liabiliGes as of the reporGng date. Uncertainty regarding these assumpGons and esGmates could result in outcomes requiring significant adjustments to the carrying amounts of affected assets or liabiliGes in future periods.

Management has made these esGmates and assumpGons based on all relevant informaGon available to it. Since the issuance of the previous financial statements, there have been no changes in the nature or extent of the esGmates used.

Below are key esGmates and assumpGons about the future and other key sources of esGmaGon uncertainty as of the reporGng date, which involve a significant risk of material adjustment to the carrying amounts of assets and liabiliGes during the next financial year. The Group has based its assumpGons and esGmates on the parameters available when preparing the consolidated financial statements. However, exisGng circumstances and assumpGons about future developments may change due to market shibs or events beyond the Group's control. Such changes will be reflected in the assumpGons when they occur.

Useful life of property, plant and equipment

As of the balance sheet date, the Group reassesses and, if necessary, adjusts the useful lives of assets and the related depreciaGon methods, considering the current condiGon of the assets and the related investment plan for future periods.

Leases

The Group exercised judgment in determining the lease term for certain contracts that include extension or terminaGon opGons, or that are concluded for an indefinite period. The assessment of whether the Group is reasonably certain to exercise such opGons, and the assessment of how long the Group will use the underlying assets under contracts concluded for an indefinite period, affects the lease term, which has a significant impact on the recognized lease liabiliGes and right-of-use assets.

7. Informa8on about the Group

				Effective economic share
Name	Business	Seat	Address	2025	2024
Primoco UAV SE	Production of UAVs	Czech Republic	Výpadová 1563/29f, 153 00 Prague 5	Company	Company
Primoco UAV Defence s.r.o.	Sale of UAVs	Czech Republic	Výpadová 1563/29f, 153 00 Prague 5	100%	100%

The consolidated financial statements of the Group include:

All shares are ordinary unless otherwise stated.

7.1. Group Management

The day-to-day operaGons of the Group companies are managed by the management. Strategic and long-term decisions concerning major investment projects and the fundamental direcGon of the Group's development are subject to approval by the Group's management. The Board of Directors is the highest governing body of the parent company, responsible for the business management, and represents the Company in all mafers that are not assigned by the ArGcles of AssociaGon or by law to the authority of the General MeeGng or the Supervisory Board. The Supervisory Board is the Company's supervisory body, overseeing the performance of the Board of Directors and the Company's acGviGes.

As of 30 June 2025, the Group's management was composed as follows:

Management

Ladislav Semetkovský	Chairman of the Board of Directors, CEO
Petr Kováč	Member of the Board of Directors
Romana Wyllie	Member of the Board of Directors
Josef Šťastný	ProducGon Director
Jakub Toman	Chief Pilot
Miroslav Mišík	Financial Director
Vladan Ševčík	Quality Director
Jakub Foj^k	Commercial Director

Supervisory Board

Jan Sechter	Chairman of the Supervisory Board
Vladan Ševčík	Member of the Supervisory Board
Jakub Foj^k	Member of the Supervisory Board

8. Segment Informa,on

Management is the Chief OperaGng Decision Maker (CODM) and monitors operaGng results and indicators for the purpose of making decisions on resource allocaGon and assessing performance at the level of a single segment (i.e., the Group as a whole).

The Group is therefore represented by a single segment.

9. Revenue from Contracts with Customers

The Group consists of a single segment engaged in the sale of aircrab and related equipment and services.

CZK thous.	1/1/- 30/6/2025	1/1/-30/6/2024
Goods and services transferred at a point in Gme	249,104	331,252
Total revenue from contracts with customers	249,104	331,252

Among the services provided to customers are the training of pilots and aircrab operators, which are delivered at the Gme of handover of the aircrab to the customer.

In total, services worth CZK 950 thousand were provided as part of aircrab sales in the period 1 January –30 June 2025 (1 January – 30 June 2024: CZK 900 thousand).

9.1. Contract Balances

CZK thous.	1/1/-30/6/2025	1/1/-31/12/2024	1/1/-30/6/2024
Trade receivables	136,554	-	400,005
Contract assets	-	-	-
Contract liabiliGes	-	15,301	-

Contract liabiliGes consist of advances received from customers with whom a contract for the purchase of aircrab has been concluded.

9.2. Performance Obliga8ons

A typical contract with a customer includes several performance obligaGons. The transacGon price is allocated to these obligaGons based on their standalone selling prices. InformaGon on the Group's performance obligaGons is provided below:

ProducFon and delivery of aircrap and related equipment

The obligaGon is fulfilled at the moment of delivery and handover of the aircrab and equipment to the customer. The payment is divided into two parts. 50% of the payment is due 14 days aber signing the contract, the remaining amount is due 14 days before the agreed delivery date to the customer.

Pilot and mechanic training

The obligaGons are fulfilled conGnuously and the payment for these obligaGons is included in the transacGon price stated in the contract.

The Group recognizes contract liabiliGes from these obligaGons and recognizes revenue conGnuously over 2–3 months, depending on how the customer receives and consumes the benefits arising from the performance.

Remote pilot support

As part of the contract, the customer may order remote pilot support measured in flight hours. Since this service is prepaid by the customer, the Group recognizes a contract liability and fulfills this obligaGon conGnuously in accordance with customer demand and consumpGon of flight hours.

10. Other Opera,ng Income

CZK thous.	1/1/ 30/6/2025	1/1/-30/6/2024
Sales of intangible and tangible fixed assets	3,240	0
Income from government grants	-	-
Other OperaGng Income	491	41
Total revenue from contracts with customers	3,731	41

On 23 November 2022, the Company entered into a Grant Agreement (GRANT AGREEMENT Project 101073911 — I-SEAMORE: INTEGRATED SURVEILLANCE ECOSYSTEM FOR EUROPEAN AUTHORITIES RESPONSIBLE FOR MARITIME OPERATIONS LEVERAGED BY RELIABLE AND ENHANCED AERIAL SUPPORT), supported under the HORIZON-CL3-2021-BM-01 call, with the European Research ExecuGve Agency (REA).

The agreement was concluded with the coordinaGng company: ATOS IT SOLUTIONS AND SERVICES IBERIA SL (ATOS IT), PIC 952979120, established in RONDA DE EUROPA 5, TRES CANTOS MADRID 28760, Spain.

The grant was provided under the EU funding programme in the field of security and environmental protecGon, which is part of the project financed from EU funds.

The grant was awarded for a fixed period from 1 January 2024 to 30 June 2025; as of the balance sheet date, a preliminary extension of the project unGl 31 October 2025 had been approved. UnGl 30 June 2024, the recipient on our side was Primoco UAV Defence, s.r.o.; from 1 July 2024, it is Primoco UAV SE.

The objecGve of the project is to build a plaworm that will include infrastructure in the form of unmanned systems equipped with sensors for data collecGon, other open (satellite) data sources, and a sobware layer based on arGficial intelligence to evaluate the data. The plaworm is intended to serve end users in monitoring large mariGme borders and coastal areas, analyzing potenGal threats, supporGng search and rescue operaGons, and detecGng illegal acGviGes.

The pre-financing for both companies totals EUR 474,884.38 (85% of the grant).

At the end of 2023 and 2024, the Company prepared and submifed the final report and at the same Gme recorded expense movements into other operaGng income.

11. Costs of Services and Repairs and Maintenance

CZK thous.	30/6/2025	30/6/2024
Repairs and Maintenance	826	259
Commission	9,872	0
External staff	2,481	2,151
Other services	8,642	6,482
Total revenues from contracts with customers	21,821	8,892

12. Other Opera,ng Income

CZK thous.	30/6/2025	30/6/2024
Insurance cost	1,096	460
CapitalizaGon of fixed assets	-	-
Other operaGng expanses	5,708	390
Total revenues from contracts with customers	6,804	850

13. Financial Income and Cost

CZK thous.	30/6/2025	30/6/2024
Interest expenses from lease liabiliGes	125	27
Bank fees	22	3
Foreign exchange losses	819	652
Total financial expenses	966	682
Interest income	2,280	4,905
Total financial expenses	0	142
Total financial income	2,280	5,047

14. Earnings per Share

The following table reflects the data on profit and shares used in the calculaGon of basic earnings per share.

In 2024 and 2025 no stock opGons or other transferable rights were issued, nor were there any addiGonal share issues. For this reason, there are no diluGon effects, and the weighted average number of ordinary shares remains unchanged over the years and corresponds to the original issue.

CZK thous.	1/1/-30/6/2025	1/1/-30/6/2024
Earnings	67,147	121,196
Number of shares	4,709	4,709
EPS	14,26	25,74

15. Intangible Assets

Purchase price of intangible assets:

CZK thous.	Purchased sobware	Patents and rights	Other intangible assets	Intangible development results	Acquired intangible assets	Total
1/1/2024	752	-	1,125	6,112	5,633	13,622
AddiGons	685	-	1,036	1,364	6,311	9,396
Transfer	-	-	-	-	-2,336	-2,336
31/12/2024	1,437	-	2,161	7,476	9,608	20,682
AddiGons	499	-	9,482	-	2,764	12,745
Transfer	-	-	-	-	-9,981	-9,981
30/6/2025	1,936	-	11,643	7,476	2,391	23,446

AmorGzaGon and impairment of intangible assets:

CZK thous.	Purchased sobware	Patents and rights	Other intangible assets	Intangible development results	Acquired intangible assets	Total
1/1/2024	739	-	102	2,560	-	3,401
AmorGzaGon	76	-	258	1,657	-	1,991
31/12/2024	815	-	360	4,217	-	5,392
AmorGzaGon	156	-	761	943	-	1,860
30/6/2025	971	-	1,121	5,160	-	7,252
Residual value
1/1/2024	13	-	1,023	3,552	5,633	10,221
31/12/2024	622	-	1,801	3,259	9,608	15,290
30/6/2025	965	-	10,522	2,316	2,391	16,194

Significant assets

On 14 March 2025, the company was issued STANAG cerGficaGon. The services performed during the cerGficaGon were capitalized as intangible assets. The company conGnues to work on STANAG cerGficaGon, and the services are recorded under the account for acquisiGon of long-term intangible assets.

Furthermore, the company invested in the development of aircrab know-how.

16. Lands, Buildings and Equipment

CZK thous.	Land	Buildings	Vehicles	Machines & equipment	Tangible assets in progress	Other tangible assets	Total
1/1/2024	19,466	10,522	10,939	5,507	4,824	-	51,258
AddiGons	95,021	-	4,703	4,363	105,394	77	209,558

AcquisiGon cost of land, buildings and equipment:

Transfer	-	-	-	-	-104,087	-	-104,087
Disposals	-	-	-1,000	-	-	-	-1,000
31/12/2024	114,487	10,522	14,642	9,870	6,131	77	155,729
AddiGons	-	-	4,792	77	17,175	-	22,044
Transfer	-	-	-	-	-4,869	-	-4,869
Disposals	-	-	-5,943	-448	-	-	-6,391
30/6/2025	114,487	10,522	13,491	9,499	18,437	77	166,513

DepreciaGon and impairment of land, buildings and equipment:

CZK thous.	Land	Buildings	Vehicles	Machines & equipment	Tangible assets in progress	Other tangible assets	Total
1/1/2024	-	1,563	2,352	4,644	-	-	8,559
DepreciaGon	-	367	2,240	668	-	-	3,275
Disposal	-	-	-213	-	-	-	-213
31/12/2024	-	1,930	4,379	5,312	-	-	11,621
DepreciaGon	-	185	1,208	641	-	-	2,034
Disposal	-	-	-1,597	-448	-	-	-2,045
30/6/2025	-	2,115	3,990	5,505	-	-	11,610
Net book value 1/1/2024	19,466	8,959	8,587	863	4,824	-	42,699
31/12/2024	114,487	8,592	10,263	4,558	6,131	77	144,108
30/6/2025	114,487	8,407	9,501	3,994	18,437	77	154,903

Significant assets

In 2025, the company collaborated with designers on the project "ConstrucGon of the new Airport in Písek, producGon hall, and administraGve building." The services were recorded under the account for the acquisiGon of long-term tangible assets.

The company acquired new means of transport to ensure smooth transportaGon between Prague and Písek Airport. Unused means of transport were disposed of.

17. Leasing

The Group currently leases the main office building with related storage and producGon faciliGes and an aircrab for travel purposes. The office and aircrab lease agreements include extension and terminaGon opGons. The Group applies IFRS 16 exempGons for short-term leases and leases of low-value underlying assets.

Right-of-use assets

CZK thous.	Buildings	Aircrap	Total
1/1/2024	1,341		- 1,341
AddiGons	-	6,908	6,908
AddiGons due to modificaGon	2,193		- 2,193
DepreciaGon	-1,830	-1,439	-3,269
31/12/2024	1,704	5,469	7,173
AddiGons	-	45	45
AddiGons due to modificaGon	391		- 391
DepreciaGon	-942	-1,772	-2,714
30/6/2025	1,153	3,742	4,895
CZK thous.		30/6/2025	30/6/2024
As of 1 January		1,361	1,361
AddiGons		6,248	177
Accrued interest		125	32
Payment		-2,786	-931
As of 30 June		4,948	639
Long-term		2,072	-
Short-term		2,876	639
CZK thous.			31/12/2024

CZK thous.	31/12/2024
As of 1 January	1,361
AddiGons	9,101
Accrued interest	183
Payment	-3,396
As of 31 December	7,249
Long-term	2,072
Short-term	5,177

The maturity analysis of future undiscounted cash flows arising from lease liabiliGes is presented in Note 27.

18. Provisions

CZK thous.	30/6/2025	31/12/2024	30/6/2024
Material	20,773	52,394	36,914
Spare parts	27,925	78	13,533
Work in progress	1,371	28,192	-
Products and goods	26,682	16,915	502
Provisions total	76,751	97,579	50,949

Cost of goods sold, consumed material and changes in inventories of finished goods:

CZK thous.	1/1/- 30/6/2025	1/1/- 31/12/2024	1/1/- 30/6/2024
ConsumpGon of materials and spare parts	106,132	219,308	147,545
CapitalizaGon of materials and goods	-	-	-
Change in inventories of finished goods and impairment of inventories	-3,634	-25,174	3,257
Total	102,498	194,134	150,802

19. Trade and Other Receivables

CZK thous.	1/1/- 30/6/2025	1/1/- 30/12/2024	1/1/- 30/6/2024
Trade receivables	136,095	-	399,736
Amounts due from related parGes	-	-	-
Advances paid	353	329	167
Prepaid expenses	106	106	102
Other receivables	-	-	-
Total	136,554	435	400,005

Trade receivables bear interest at a rate of 0.05% of the outstanding amount for each day of delay up to a maximum of 10% and are generally due within 14 days. Trade and other receivables are non-derivaGve financial assets carried at net realizable value.

When entering into contracts with customers for the sale of aircrab, the Company collects a 50% advance payment, which covers the producGon costs of the contract. Based on this, the Group eliminates the risk of unrecovered costs during aircrab producGon.

Given the high collecGon rate of receivables, the Group did not recognize any impairment losses as of 30 June 2025, 31 December 2024 nor as of 30 June 2024.

20. Other Receivables and Financial Assets

CZK thous.	30/6/2025	31/12/2024	30/6/2024
Receivables from Tax AuthoriGes	6,480	3,066	384
Other receivables	-	-	-
Total	6,480	3,066	384

21. Cash and Cash Equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include:

CZK thous.	30/6/2025	31/12/2024	30/6/2024
Cash at banks	213,713	230,636	57,512
Cash on hand	-	-	-
Cash and cash equivalents presented in the statement of financial posiFon and in the statement of cash flows	213,713	230,636	57,512

The fair value of cash and cash equivalents approximates their carrying amount due to their short-term maturiGes.

22. Trade and Other Payables

CZK thous.	30/6/2025	31/12/2024	30/6/2024
Trade Payables	-	404	438
Employee-Related LiabiliGes	871	871	623
LiabiliGes to Tax AuthoriGes	45,134	-	67,617
Other LiabiliGes	24,557	205	2
Total	70,562	1,480	68,680

Trade payables are non-interest bearing and are usually sefled within 14 days.

Other payables mainly include accrued liabiliGes related to energy and service costs, which were incurred already in 2025.

Employee-related liabiliGes include social security and health insurance contribuGons, liabiliGes to employees for wages, and accruals for unused vacaGon days, which are to be taken or compensated in the following accounGng period.

Trade and other payables are non-derivaGve financial liabiliGes measured at amorGzed cost. The fair value of short-term trade and other payables approximates their carrying amount due to their short-term maturity.

23. Provisions

CZK thous.	Other Provisions
30/6/2024	200
AddiGons	-
UGlized	-
Reversed unused amounts	-
31/12/2024	200
AddiGons	-
UGlized	-
Reversed unused amounts	-
30/6/2025	200

In 2024, the Group created a provision in the amount of CZK 200 thousand for expenses arising from liGgaGon with a former employee, Mr. Lukáš Trzaskalik. Since the liGgaGon has not yet been resolved, the provision is sGll recognized in 2025.

24. Income Tax

Corporate income tax for companies in the Czech Republic from 2024 was set by law at a new rate of 21%. The structure of income tax in individual accounGng periods is as follows:

CZK thous.	30/6/2025	31/12/2024	30/6/2024
Current income tax	18,928	32,101	32,200
Adjustments relaGng to current income tax in previous years	-	-	-
Deferred tax	-177	418	-588
Total	18,751	32,519	31,612

ReconciliaGon of the income tax expense and the accounGng profit mulGplied by the domesGc tax rate of the Parent Company for the periods presented below:

CZK thous.	30/6/2025	31/12/2024	30/6/2024
Profit before tax	86,075	154,605	153,396
Statutory income tax rate in the Czech Republic of
21%	18,076	32,467	32,213
Non-deducGble expenses and other taxable addiGons / DeducGble expenses	852	123	-13
Unrecognized deferred tax	-177	-71	-588
Income tax reported in the statement of profit or loss	18,751	32,519	31,612

Deferred tax balances and movements:

CZK thous.	1/1/2025	Recognized in profit or loss	Recognized in equity	Foreign exchange differences	30/6/2025
Difference between the carrying amount of fixed assets for accounGng and tax purposes	-59	-	-	-	-59
Provisions for liabiliGes and charges	184	-	-	-	184
Other – consolidaGon adjustments	48	4	-	-	52

Net deferred tax asset / liability	173	4	-	-	177
Recognized deferred tax asset	173	4	-	-	177

CZK thous.	1/1/2024	Recognized in profit or loss	Recognized in equity	Foreign exchange differences	31/12/2024
Difference between the carrying amount of fixed assets for accounGng and tax purposes	414	-473	-	-	-59
Provisions for liabiliGes and charges	133	51	-	-	184
Other – consolidaGon adjustments	44	4	-	-	48
Net deferred tax asset / liability	591	-418	-	-	173
Recognized deferred tax asset	591	-418	-	-	173

CZK thous.	1/1/2024	Recognized in profit or loss	Recognized in equity	Foreign exchange differences	30/6/2024
Difference between the carrying amount of fixed assets for accounGng and tax purposes	414	-	-	-	414
Provisions for liabiliGes and charges	133	-	-	-	133
Other – consolidaGon adjustments	44	-3	-	-	41
Net deferred tax asset / liability	591	-3	-	-	588
Recognized deferred tax asset	591	-3	-	-	588

The Group offsets tax assets and liabiliGes only when it has a legally enforceable right to offset current tax assets against current tax liabiliGes.

25. Equity

The Group has 4,708,910 issued and fully paid ordinary shares with a nominal value of CZK 1 and an idenGficaGon number (ISIN) CZ0005135970. The market value of the Group's shares on the Prime Market of the Prague Stock Exchange as of 30 June 2025 was CZK 730 per share.

Shares authorised, issued and fully paid:

	Number of		Equity	Share
	shares CZK thous. Ordinary shares			Premium
As of 30/6/2024	4,709		4,709	CZK thous. 159,269
Issue of share capital, nominal value of shares CZK 1	-	-	-	-
Conversion into shares with a nominal value of CZK 1	-	-	-	-
As of 31/12/2024	4,709		4,709	159,269
As of 30/6/2025	4,709		4,709	159,269

All ordinary shares are freely transferable without restricGon. Each share with a nominal value of CZK 1 carries one vote.

In 2025, the net profit for 2024 was transferred to retained earnings. The Company did not pay any dividends in 2025 and did not issue any new share capital.

26. Personnel Cost

The Company has established rules for the enGtlement to the variable component of remuneraGon for each employee. Each employee has defined targets that must be achieved for the remuneraGon to be paid. The fulfilment of targets is reviewed during performance appraisals held throughout the year.

Employee expenses for the respecGve periods consist of the following:

CZK thous.	1/1/- 30/6/2025	1/1/- 30/6/2024
Average number of employees and key management of the Group	36	35
Wages and salaries and remuneraGon of company bodies	23,843	13,716
Social security and health insurance	6,353	4,605
Other personnel expenses	147	122
Total personnel expenses	30,343	18,443

Of which remuneraGon of key management members of the Group:

CZK thous.	1/1/- 30/6/2025	1/1/- 30/6/2024
Wage costs and remuneraGon of company bodies	10,738	3,090
Total	10,738	3,090

The Group, within contractual arrangements with execuGve members of elected bodies and directors, does not sGpulate the right to demand the return of the variable component of remuneraGon or any part thereof, once the enGtlement has arisen and it has already been paid. The enGtlement to this variable component of remuneraGon is condiGonal upon the fulfilment of performance indicators set by the Supervisory Board of the Group, the approval of the General MeeGng, and the submission of the auditor's report on the verificaGon of the Group's financial statements for the given calendar year. This consGtutes a robust mechanism through which the Group seeks to prevent the unjusGfied payment of the variable component of remuneraGon.

Furthermore, as part of its remuneraGon policy, the Group reserves the right to claim compensaGon for damages, which would include variable components of remuneraGon paid to a Board member convicted of the criminal offence of falsifying informaGon on the financial situaGon and assets.

27. Financial Risk Management

The Group's classes of financial instruments correspond to the items presented in the consolidated statement of financial posiGon.

The Group's main financial liabiliGes include leases and trade and other payables. The primary purpose of these financial liabiliGes is to finance the Group's operaGons and investments. The Group's main financial assets include trade and other receivables, cash and cash equivalents, which arise directly from its acGviGes.

The Group is exposed to market, currency, and liquidity risks. The Group's management idenGfies financial risks that may adversely affect business objecGves and, through acGve risk management, reduces these risks to an acceptable level.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market prices.

All producGon processes take place in the Czech Republic, and the Group focuses on maintaining stable and reliable supplier relaGonships, which contributes to its resilient market posiGon. An important element of market risk management is the diversificaGon of suppliers, ensuring Gmely informaGon on price movements from appropriate sources, and the opGmisaGon of purchasing and inventory levels.

In the event of supply chain disrupGons, the Group can quickly replace suppliers with alternaGve partners, further reducing potenGal risks associated with commodity price fluctuaGons.

Currency risk

Currency risk is the risk that the fair value or future cash flows will fluctuate due to changes in exchange rates. The Group's exposure to exchange rate risk relates mainly to its operaGng acGviGes (when revenues or expenses are denominated in foreign currencies).

The Group invoices predominantly in Euros. However, there is some currency risk arising from sales and purchases in other currencies, parGcularly in CZK, EUR, and USD.

Financial assets and liabiliGes include cash and cash equivalents, trade and other receivables, and trade and other payables. All other assets and liabiliGes in foreign currencies are insignificant or not subject to exchange rate risk (e.g. land, buildings, and equipment).

Liquidity risk

Prudent liquidity risk management assumes maintaining sufficient cash and the availability of funding to meet obligaGons as they fall due. The Group regularly monitors its liquidity posiGon to ensure sufficient financial resources are available to sefle its liabiliGes and receivables.

The following table summarises the maturity profile of the Group's financial liabiliGes based on contractual undiscounted payments (in CZK thous.):

30/6/2025	On demand	Less than 3 months	3 to 12 months	1 to 5 years	More than 5 years	Total
Lease liabiliGes	-	-	2,876	2,072	-	4,948
Trade and other payables	-	871	24,557	-	-	25,428
Total	-	871	27,433	2,072	-	30,376

31/12/2024	On demand	Less than 3 months	3 to 12 months	1 to 5 years	More than 5 years	Total
Lease liabiliGes	-	-	5,370	2,100	-	7,470
Trade and other payables	-	609	-	-	-	609
Total	-	609	5,370	2,100	-	8.079

30/6/2024	On demand	Less than 3 months	3 to 12 months	1 to 5 years	More than 5 years	Total
Lease liabiliGes	-	-	639	-	-	639
Trade and other payables	-	1,061	-	-	-	1,061
Total	-	1,061	639	-	-	1,700

Trade and other payables do not include tax liabiliGes, advance payments received, and contractual liabiliGes, as these are non-financial liabiliGes.

Interest rate risk

The Group faces minimal interest rate risk, as its operaGons are fully financed from its own resources and the Group has no loan liabiliGes.

Credit risk

Credit risk is the risk that counterparGes will not be able to meet their contractual obligaGons.

The Group faces minimal credit risk because for each producGon order it always collects a 50% advance payment, which covers the producGon costs for the concluded contract. This eliminates the risk of unpaid costs during aircrab producGon.

Final delivery of the product always takes place aber receipt of the full contract value. In the event that the outstanding balance is not paid, the Group is able to resell the product to another counterparty.

28. Capital Management

The primary objecGve of the Group's capital management is to ensure that it has the capital necessary to operate and grow the business at a reasonable cost of capital, without incurring disproporGonate financial risks. For the purposes of the Group's capital management, capital includes share capital, and all other equity reserves afributable to the Company's shareholders.

The main goal of the Group's capital management is to maximize shareholder value. The Group's principles for capital allocaGon include:

• Investments in technologies and capabiliGes to support organic growth.
• Maintaining a robust balance sheet and financial strength to ensure strategic flexibility.
• PrioriGzing growth over dividend payments, with no intenGon of declaring dividends in the near term.
• Sustaining high operaGng margins.

The Group manages its capital structure and adjusts in response to changes in economic condiGons. To maintain or adjust its capital structure, the Group may adjust dividend distribuGons to shareholders, return capital to shareholders, or issue new shares.

During the above-menGoned period, there were no changes in the objecGves, policies, or processes of capital management.

29. Related Party Disclosures

During the first six months of 2024, transacGons with related parGes were concluded by the consolidated enGty under normal market condiGons. In the periods under review, there were no related party transacGons that materially affected the Company's financial results.

During the first six months of 2025, no contractual transacGons between related parGes were concluded by the consolidated enGty. In the periods under review, there were no related party transacGons that materially affected the Company's financial results.

30/6/2024	RelaFonship	LiabiliFes	Receivables	Purchases	Sales
	Group
Primoco UAV Defence, s.r.o.	company	-	297,347	360	297,677
31/12/2024	RelaFonship	LiabiliFes	Receivables	Purchases	Sales
	Group
Primoco UAV Defence, s.r.o.	company	269	1,929	15,531	375,190
30/6/2025	RelaFonship	LiabiliFes	Receivables	Purchases	Sales
	Group
Primoco UAV Defence, s.r.o.	company	269	199,911	-	230,502

30. Subsequent Events

Aber the balance sheet date, no significant subsequent events occurred that would affect the Group's financial posiGon.