The year ended 31 March 2026 marked a period of strong progress for Sofant Technologies, as the Company advanced both its technology platform and commercial engagement with leading industry and government partners. In January 2026, Will Whitehorn, a recognised leader in the space industry, was appointed Chairman, bringing significant strategic and commercial experience to the Board.

Sofant continued to strengthen its intellectual property and technology base, with intangible assets of £12.8 million reflecting sustained investment in its RF MEMS– enabled phased array platform. The Company also expanded its engineering and operational capability, with headcount increasing to 33 full time employees, supporting continued development and programme execution.

During the period, the Board approved a licensing-led go-to-market strategy positioning Sofant to scale through partnerships with established system integrators and manufacturers while retaining ownership of its IP through the supply of array-level assemblies, antenna modules and chipsets. This strategy provides a capital-efficient route to commercialisation across aerospace, defence, and satellite communications applications.

The Company made significant progress in customer engagement. Most notably, Sofant signed a Letter of Intent with a major European industrial partner to develop electronically steerable antenna solutions for aerospace and defence markets, with discussions extending to licensing and manufacturing collaboration. This engagement represents an important step toward first commercial deployment under the Company’s licensing model.

Sofant also strengthened its position within the defence sector through a £600k Ku- band feasibility programme with a major European defence contractor, establishing a clear pathway for further collaboration and product expansion.

In parallel, the Company secured strong institutional support, including a further £2 million non-dilutive funding commitment from the UK Space Agency to support the next phase of development. This funding will be applied to extend the existing European Space Agency contract and further validates Sofant’s technology and strategic relevance.

Taken together, these developments demonstrate solid progress in both technology maturation and market engagement. Sofant enters the next phase of development well positioned to convert these foundations into commercial outcomes through its licensing-led strategy.

For the financial year ended 31 March 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Sofant Technologies Ltd is a private company limited by shares incorporated in Scotland. The registered office is Suite 2, Ground Floor Orchard Brae House, 30 Queensferry Road, Edinburgh, Scotland, EH4 2HS.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. At the balance sheet date, the company had net current liabilities of £3,625,372 (2025 - £3,448,024). The directors have confirmed that their shareholder base continues to be supportive (as evidenced with funding received during the year) and they plan to raise significant equity within the next 12 months. This funding will allow the company to fully commercialise its technology and scale its operations within the next 12 months.The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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:

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:

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.

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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial assets, which include prepaid expenses and accrued income, taxes receivable and cash at bank, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Basic financial liabilities, which include trade creditors, accrued expenses and taxes due are initially recognised at the transaction price, unless the arrangement constitutes afinancing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

At each reporting date the company assesses whether there is objective evidence that any financial asset has been impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due. The amount of the provisionis recognised immediately in profit or loss.

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.

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

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using an appropriate pricing model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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

During the year, convertible loan notes amounting to £4,725,633 were converted into 20,838 preference shares of £0.01 each.

The company has issued convertible loan notes which are classified as debt instruments until conversion.

At the year end, the company had outstanding convertible loan notes of £850,000 maturing on 30 September 2026, £500,000 maturing on 15 April 2027, and £100,000 maturing on 26 September 2027. Interest of 14% per annum is charged on outstanding loan notes.

All loan notes rank as senior instruments of the company. Under the terms of the agreements, the outstanding principal balances plus interest not paid will convert into preference shares upon maturity, or earlier in accordance with contractual terms.

Certain employees had been granted options to subscribe for shares in the company under share option schemes as follows:

The unapproved options outstanding granted on 14 May 2018, 5 February 2020, 22 March 2020, 12 May 2021, 24 May 2021,11 April 2022, 12 April 2023, 31 July 2024, 12 August 2025 and 7 January 2026 at option prices of £6.22, £15.52, £18.57, £28.80 and £34.02 are shown below:

The EMI options outstanding, granted on 21 August 2018, 22 March 2020, 1 June 2021, 12 April 2023, 15 March 2024,11 October 2024 and 12 August 2025 at option prices of £5.94, £13.19, £16.71, £28.80, £32.40 and £34.02 are shown below:

The estimated fair values were calculated by applying the Black-Scholes option pricing model. The model inputs were:

The estimated fair value of each share option granted is as follows:

Details of the number and weighted average exercise prices (WAEP) of share options during the period are as follows:

The total expense recognised in profit or loss for the periods as follows:

During the year, 1,688 ordinary shares of £0.01 each were issued for a total consideration of £192,285 and 27,402 preference shares of £0.01 each were issued for a total consideration of £6,214,152. This resulted in 29,090 shares of £0.01 each being issued for a total consideration of £6,406,437.

During the year, 20,838 preference shares of £0.01 each were issued on conversion of £4,725,633 convertible loan notes.

The preference shares and ordinary shares rank pari passu in all respects but shall constitute separate classes of shares. The preference shares do not confer any contractual obligation on the company to deliver cash or another financial asset to the holder, and are not redeemable at the option of the holder. The preference shares are therefore classified as equity.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows: