Company registration number 12311887 (England and Wales)
SORACOM CORPORATION, LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
SORACOM CORPORATION, LTD
COMPANY INFORMATION
Directors
Taku Tamagawa
(Appointed 1 July 2024)
Tomoko Igarashi
Company number
12311887
Registered office
16 Great Queen Street
Covent Garden
London
WC2B 5AH
United Kingdom
Auditor
HW Fisher Audit
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
SORACOM CORPORATION, LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
SORACOM CORPORATION, LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors of Soracom Corporation, Ltd. (“the Company”) have prepared this Strategic Report for the year ended 31 March 202 5 to provide additional information for shareholders to assess the Company’s strategies. Comparative information relates to the year ended 31 March 202 4.

The Strategic Report contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report. As such, they should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

Fair review of the business

The Company’s profit for the year after taxation was $1,116 k (2024 restated: profit of $3,894 k). At the balance sheet date, the Company held net assets of $11,440 k (2024 restated: $10,324 k).

The management is satisfied with the results for the year which reflect the strong presence of the Company in the UK, where the Company operates. The directors expect the current level of activity to continue in the forthcoming year.

Principal activity

The principal activity of the Company is providing global Internet of Things (IoT) connectivity and platform services to address every challenge in IoT deployments across various industries.

Group Structure

The Company is a wholly owned subsidiary of Soracom, Inc., a company based in Japan. Soracom, Inc. listed its shares on the Tokyo Stock Exchange on 26 March 2024.

Principal risks and uncertainties

The Company’s approach to risk acceptance and risk management is implemented through a framework of policies, procedures, and internal controls. Ensuring compliance with regulations and legal and ethical standards is a high priority for the Company. The compliance team and finance department play a crucial oversight role in this regard, working closely with external law firms when necessary.

The directors consider the following matters to be the principal risks and uncertainties (in no specific order).

Market risks

The domestic and international IoT-related markets are currently in a developmental stage, and we anticipate continuous market growth in the future. However, factors such as economic downturns in the regions where we operate, reductions in capital investment, the introduction or strengthening of new legal regulations related to the IoT sector, and stagnation in technological innovation could hinder the growth of the IoT-related market. If the IoT market does not grow as expected by the Company, it could impact our business performance and financial condition.

Laws and Regulatory risks

Changes in laws and regulations can have a negative impact on the Company. To mitigate these risks, management engages external advisors and collaborates with the Soracom group to monitor and address any potential risk factors that may affect the Company.

Credit risks

The Company's principal financial assets are cash and trade and other receivables. The Company's credit risk primarily arises from its trade receivables. There is no significant concentration of credit risk, as exposure is spread across numerous counterparties and customers. The group’s credit risk management policy for trade receivables includes periodic assessments of the financial reliability of its customers.

Supplier risks

The Company maintains close and mutually beneficial partnerships with leading technology vendors. Termination of a supply or services agreement, or significant changes in vendor terms or conditions of sale, could negatively impact operating margins. This risk is managed by proactively maintaining sustainable terms of trade with partners and ensuring appropriate back-to-back commercial terms with clients on a transactional basis.

SORACOM CORPORATION, LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

Macroeconomic and Geo-Political risks

The effects of high inflation have impacted consumer confidence and disposable income. The Company remains exposed to broader macroeconomic and geopolitical risks, including inflation and interest rate volatility, but there has been no material impact on the Company's operations or its ability to fulfil commitments to its parent company.

Employee risks

For the sustainable growth of the Company, it is crucial to recruit outstanding personnel with diverse backgrounds and to establish robust sales, development, and management structures. Particularly, we consider it essential to develop and provide an IoT platform that leverages innovation to solve customer issues and support business growth through the power of IoT. Strengthening our sales and development staff who can accurately understand customer needs is required. To recruit talented individuals who resonate with the group's mission and business content and possess high motivation, we are actively promoting recruitment activities and working on creating an environment and systems where highly motivated personnel can work effectively. Several initiatives and working groups are in place to drive employee engagement and ensure a committed workforce.

Operational risks

To mitigate the risk of the Company failing to comply with the global group strategy and mission, management holds regular meetings with the parent company. These meetings involve evaluating the status of each project and implementing effective systems to manage projects efficiently.

IT security & cyber risks

Operations at the Company’s facilities could be interrupted due to a cybersecurity incident, fire, flood, or equipment failure. The group has a dedicated cybersecurity team and collaborates with external industry experts for independent assessment, validation, and certification when necessary. The group will continue to invest in cybersecurity over the coming years to manage this risk effectively.

Foreign exchange risks

The majority of the Company's revenue and costs are based in US dollars to minimise exposure to adverse exchange rate fluctuations. Foreign exchange risk arises from commercial transactions in currencies other than the Company’s functional currency and from changes in the value of recognised assets and liabilities denominated in currencies other than the Company’s functional currency. The Company’s policy is to ensure that its net exposure remains at an acceptable level.

Currently, the Company does not implement specific measures against foreign exchange risks, considering the proportion of foreign currency transactions and the offsetting effects of foreign currency-denominated purchases and sales. However, in the event of sudden exchange rate fluctuations, there is a possibility that the business performance and financial condition could be affected. If the business needs to transact in large non-USD contracts, the Treasury function will consider appropriate hedging techniques to mitigate exposure to exchange rate fluctuations.

Financial risks

Management considers the Company to be operating in a relatively low-risk environment in terms of finance, as the Company is financed through share capital and has no loan liabilities, and its liquidity ratio is reasonable. Due to the nature of the Company’s business arrangements, the directors believe that risks attributable to interest rates, credit, and cash flow are low.

On behalf of the board

Tomoko Igarashi
Director
17 April 2026
SORACOM CORPORATION, LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company continued to be that of providing global Internet of Things (IoT) connectivity and platform services to address every challenge in IoT deployments across various industries.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Taku Tamagawa
(Appointed 1 July 2024)
Tomoko Igarashi
Daichi Funato
(Resigned 30 June 2024)
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Tomoko Igarashi
Director
17 April 2026
SORACOM CORPORATION, LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SORACOM CORPORATION, LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SORACOM CORPORATION, LTD
- 5 -
Opinion

We have audited the financial statements of Soracom Corporation, Ltd (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

SORACOM CORPORATION, LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SORACOM CORPORATION, LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Data Protection Act 2018, IR35 and Employment Rights Act 1996.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Testing revenue, in particular cut-off, for evidence of management bias.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Performing physical verification of stock items.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SORACOM CORPORATION, LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SORACOM CORPORATION, LTD (CONTINUED)
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mandy Janes (Senior Statutory Auditor)
For and on behalf of HW Fisher Audit, Statutory Auditor
Chartered Accountants
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
17 April 2026
SORACOM CORPORATION, LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
as restated
Notes
$
$
Turnover
3
21,892,366
18,823,994
Cost of sales
(9,686,295)
(5,666,243)
Gross profit
12,206,071
13,157,751
Administrative expenses
(10,692,507)
(7,795,010)
Operating profit
4
1,513,564
5,362,741
Interest receivable and similar income
7
28
2,103
Profit before taxation
1,513,592
5,364,844
Tax on profit
8
(397,469)
(1,470,849)
Profit for the financial year
1,116,123
3,893,995

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SORACOM CORPORATION, LTD
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
as restated
Notes
$
$
$
$
Fixed assets
Goodwill
9
1,525,001
1,825,001
Other intangible assets
9
2,521
6,646
Total intangible assets
1,527,522
1,831,647
Tangible assets
10
14,754
35,436
1,542,276
1,867,083
Current assets
Stocks
11
379,535
980,322
Debtors
12
6,512,415
8,596,297
Cash at bank and in hand
5,934,871
3,253,796
12,826,821
12,830,415
Creditors: amounts falling due within one year
13
(2,640,741)
(2,998,118)
Net current assets
10,186,080
9,832,297
Total assets less current liabilities
11,728,356
11,699,380
Creditors: amounts falling due after more than one year
14
(288,732)
(1,375,879)
Net assets
11,439,624
10,323,501
Capital and reserves
Called up share capital
17
953,115
953,115
Profit and loss reserves
10,486,509
9,370,386
Total equity
11,439,624
10,323,501

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 17 April 2026 and are signed on its behalf by:
Tomoko Igarashi
Director
Company registration number 12311887 (England and Wales)
SORACOM CORPORATION, LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Profit and loss reserves
Total
$
$
$
As restated for the period ended 31 March 2024:
Balance at 1 April 2023
953,115
5,476,391
6,429,506
Year ended 31 March 2024:
Profit and total comprehensive income
-
3,893,995
3,893,995
Balance at 31 March 2024
953,115
9,370,386
10,323,501
Year ended 31 March 2025:
Profit and total comprehensive income
-
1,116,123
1,116,123
Balance at 31 March 2025
953,115
10,486,509
11,439,624
SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
1
Accounting policies
Company information

Soracom Corporation, Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 16 Great Queen Street, Covent Garden, London, United Kingdom, WC2B 5AH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in US Dollar, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Soracom, Inc. These consolidated financial statements are available from its registered office, 3F Ojima Bldg, 4-5-6 Tamagawa, Setagaya-ku, Tokyo, 158-0094, Japan.

1.2
Going concern

The Company is reporting a positive net current asset position true. The directors have reviewed the current performance and prepared cash flow forecasts for the next 12 months which shows sufficient cash balances to fund the business. The realisation of these forecasts may be affected by a number of factors, including changes in customer behaviour, however, the directors are confident that the Company has adequate resources to continue its operations for the foreseeable future.

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

The Company provides global IoT network cellular connectivity for businesses and its turnover derives mainly from sales of IoT solutions in various industries. Turnover is measured at the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax and discounts.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the Company's activities.

SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the fair value of the consideration given over the fair value of the separable net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants consider in respect of similar businesses.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Other intangibles
1.25 - 5 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
3 - 5.75 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Cost is determined using the first-in, first-out (FIFO) method.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Foreign exchange

Transactions in currencies other than US Dollar are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors do not feel there are any material key judgements or accounting estimates.

SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
3
Turnover and other revenue
2025
2024
$
$
Turnover analysed by class of business
SIM/Device
1,853,039
1,602,286
Communication
20,039,327
17,221,708
21,892,366
18,823,994
2025
2024
$
$
Turnover analysed by geographical market
Europe
5,550,075
4,275,501
Asia
10,740,856
11,422,884
USA
4,713,596
2,543,650
Oceania
887,839
581,959
21,892,366
18,823,994
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
$
$
Exchange losses
176,450
157,813
Fees payable to the company's auditor for the audit of the company's financial statements
55,676
32,753
Depreciation of owned tangible fixed assets
27,548
32,333
Profit on disposal of tangible fixed assets
-
(494)
Amortisation of intangible assets
304,125
305,500
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
17
15
SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2025
2024
$
$
Wages and salaries
2,303,568
2,270,448
Social security costs
177,736
164,240
Pension costs
51,442
44,808
2,532,746
2,479,496
6
Directors' remuneration
2025
2024
$
$
Remuneration for qualifying services
267,625
235,134
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
$
$
Remuneration for qualifying services
209,309
217,210
7
Interest receivable and similar income
2025
2024
$
$
Interest income
Interest on bank deposits
28
2,103
8
Taxation
2025
2024
$
$
Current tax
UK corporation tax on profits for the current period
459,920
1,479,458
Adjustments in respect of prior periods
(55,747)
-
0
Total current tax
404,173
1,479,458
Deferred tax
Origination and reversal of timing differences
(6,704)
(8,609)
Total tax charge
397,469
1,470,849
SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
8
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024 restated
$
$
Profit before taxation
1,513,592
5,364,844
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
378,398
1,341,211
Tax effect of expenses that are not deductible in determining taxable profit
75,697
78,803
Adjustments in respect of prior years
(55,747)
-
0
Adjustment in respect of prior year restatement
-
0
55,747
Capital allowances in excess of depreciation
5,849
6,461
Other timing differences
(6,728)
(9,998)
Allowable amortisation adjustment
-
0
(1,375)
Taxation charge for the year
397,469
1,470,849
9
Intangible fixed assets
Goodwill
Other intangibles
Total
$
$
$
Cost
At 1 April 2024 and 31 March 2025
3,000,001
31,896
3,031,897
Amortisation and impairment
At 1 April 2024
1,175,000
25,250
1,200,250
Amortisation charged for the year
300,000
4,125
304,125
At 31 March 2025
1,475,000
29,375
1,504,375
Carrying amount
At 31 March 2025
1,525,001
2,521
1,527,522
At 31 March 2024
1,825,001
6,646
1,831,647

SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
10
Tangible fixed assets
Plant and equipment
$
Cost
At 1 April 2024
126,387
Additions
6,866
At 31 March 2025
133,253
Depreciation and impairment
At 1 April 2024
90,951
Depreciation charged in the year
27,548
At 31 March 2025
118,499
Carrying amount
At 31 March 2025
14,754
At 31 March 2024
35,436
11
Stocks
2025
2024
$
$
Finished goods and goods for resale
379,535
980,322
12
Debtors
2025
2024
Amounts falling due within one year:
$
$
Trade debtors
2,000,306
1,616,488
Corporation tax recoverable
83,692
-
0
Amounts owed by group undertakings
2,679,626
5,675,378
Other debtors
95,577
277,209
Prepayments and accrued income
1,645,316
1,027,222
6,504,517
8,596,297
Deferred tax asset
7,898
-
0
6,512,415
8,596,297
SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
13
Creditors: amounts falling due within one year
2025
2024 as restated
$
$
Trade creditors
449,010
347,194
Amounts owed to group undertakings
1,504
63,065
Taxation and social security
22,903
36,650
Other creditors
43,355
43,651
Accruals and deferred income
2,123,969
2,507,558
2,640,741
2,998,118
14
Creditors: amounts falling due after more than one year
2025
2024
Notes
$
$
Deferred income
288,732
1,375,879
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2025
2024
Balances:
$
$
Accelerated capital allowances
7,898
-
2025
Movements in the year:
$
Asset at 1 April 2024
-
Credit to profit or loss
(7,898)
Asset at 31 March 2025
(7,898)

The deferred tax asset set out above is expected to reverse within 12 months and relates to timing differences.

16
Retirement benefit schemes
2025
2024
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
51,442
44,808

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
17
Share capital
2025
2024
Ordinary share capital
$
$
Issued and fully paid
700,000 Ordinary shares of £1 each
953,115
953,115
18
Security arrangements

Cash at bank includes amounts held in a designated account with National Westminster Bank Plc over which the bank has a fixed charge. These amounts are held as security in respect of the company's obligations to the bank and are therefore subject to restrictions on use.

19
Related party transactions

During the year the company purchased goods for the value of $nil (2024: $14,423) from its largest corporate shareholder.

During the year the company sold goods for the value of $126,943 (2024:$135,515) to its largest corporate shareholder.

Included within amounts owed by group undertakings at 3 1 March 2025, is an amount of $24,086 (2024:$14,459) owed by its largest corporate shareholder.

Included within amounts owed to group undertakings at 31 March 2025, is an amount of $1,504 (2024:$1,516) owed to its largest corporate shareholder.

20
Ultimate controlling party

The immediate and ultimate parent company of Soracom Corporation Ltd is Soracom, Inc, a company incorporated in Japan, with the registered office 3F Ojima Bldg, 4-5-6 Tamagawa, Setagaya-ku, Tokyo, 158-0094, Japan.

The financial statements of the company are consolidated in the financial statements of Soracom, Inc. These consolidated financial statements are available to the public and can be obtained via its website or from its registered office, 3F Ojima Bldg, 4-5-6 Tamagawa, Setagaya-ku, Tokyo, 158-0094, Japan.

21
Prior period adjustment

A prior year adjustment was made to correct for cost of sales that were under-accrued in the prior year, amounting to $222,987.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2024
$
$
$
Creditors due within one year
Accruals
(2,284,571)
(222,987)
(2,507,558)
Capital and reserves
Profit and loss reserves
9,593,373
(222,987)
9,370,386
SORACOM CORPORATION, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
21
Prior period adjustment
As previously reported
Adjustment
As restated at 31 Mar 2024
$
$
$
(Continued)
- 21 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 March 2024
$
$
$
Cost of sales
(5,443,256)
(222,987)
(5,666,243)
Profit for the financial period
4,116,982
(222,987)
3,893,995
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