45226425 2024-11-19 2025-12-31 45226425 2024-11-19 2025-12-31 1 45226425 2024-11-19 2025-12-31 1 45226425 2024-11-19 2025-12-31 1 45226425 2024-11-19 2025-12-31 2 45226425 2024-11-19 2025-12-31 3 45226425 2025-12-31 45226425 2024-11-19 2025-12-31 d:ContributedCapitalMember 45226425 2024-11-19 2025-12-31 d:RetainedEarningsMember 45226425 2025-12-31 d:ContributedCapitalMember 45226425 2025-12-31 d:RetainedEarningsMember 45226425 2024-11-19 2025-12-31 d:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember 45226425 2025-12-31 d:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember iso4217:DKK xbrli:pure Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 Postboks 250, 2000 Frederiksberg 2024-11-19 2025-12-31 45226425 Softmount Technology A/S Amager Torv 11, 3. 1160 København K 2024-11-19 Hjemstedskommune EY Godkendt Revisionspartnerselskab 30700228 Dirch Passers Allé 36 2000 Frederiksberg Danmark +45 73 23 30 00 2026-07-24 Morten Hove Regnskabsklasse B Revisionspåtegning Grundlag for konklusion Konklusion true 2026-07-07 2026-07-07 CaseWare Working Papers Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Softmount Technology A/S for the financial year as of the establishment of the Company 19 November 2024 - 31 December 2025. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2025 and of the results of the Company's operations for the financial year as of the establishment of the Company 19 November 2024 - 31 December 2025. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. Copenhagen Thomas Geoffrey Dodd Morten Hove Chairman Thomas Geoffrey Dodd Torben Oberthon Rød To the shareholders of Softmount Technology A/S We have audited the financial statements of Softmount Technology A/S for the financial year as of the establishment of the Company 19 November 2024 - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2025 and of the results of the Company's operations for the financial year as of the establishment of the company 19 November 2024 - 31 December 2025 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.IndependenceWe are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines 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, Management is 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 in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to 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 and the additional requirements applicable in Denmark 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 the financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for the Management's review.Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. Copenhagen Jesper Jørn Pedersen State Authorised Public Accountant mne21326 Softmount Technology A/S develops, manufactures, and supplies recoil-dampening Softmount systems, along with accessories, for use in combination with heavy automatic weapons.The company’s core product, SMT Softmount RSS (Recoil Suppression System), reduces recoil and vibration for widely used heavy machine guns (up to 12.7 mm) mounted on vehicles, naval vessels, and helicopters. The system improves accuracy, operational safety, and equipment lifespan. The products are supplied in dedicated variants for army and naval forces in Denmark and internationally, and are complemented by SMT pedestals (weapon mounts), lift and swing-arm modules, as well as ammunition boxes. During the period and subsequent to the balance sheet date, the Company has secured protection of its intellectual property rights. This work continues and is supported by prototype testing and live operational trials conducted through partnerships with armed forces in Denmark and abroad. The protected intellectual property includes, among other things, a new version of the Company’s core product, SMT Softmount, featuring capabilities that make the system more suitable for use on unmanned ground vehicles, aerial drones, and by infantry units.It also includes the newly developed SMT Pedestal LIFT weapons mount, which enables complete weapon stations, including but not limited to the SMT Softmount system, weapon, and ammunition, to be raised and lowered manually increasing combat maneuverability.Furthermore, in cooperation with a partner abroad, the Company has developed versions of existing products for use with additional weapons platforms and has registered these products in NATO’s supplier database. Each product has been assigned a NATO Stock Number (NSN).The Company’s efforts to protect and further develop its intellectual property continues. A key element of this work is the Company’s access to testing and validation of prototypes and technologies with, among others, both the Danish and armed forces abroad both ordinary army forces as well as special forces.No events materially affecting the Company's financial position have occurred subsequent to the financial year-end. -409393 388 4039 -413044 -413044 162553 162553 162553 217600 64977 282577 366552 649129 811682 500000 -413044 86956 278429 398035 48262 724726 724726 811682 500000 0 -413044 500000 -413044 The annual report of Softmount Technology A/S for 2024/25 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to reporting class B entities and elective choice of certain provisions applying to reporting class C entities. Reporting currencyThe financial statements are presented in Danish kroner (DKK). On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses.Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. The Company has chosen IAS 11/IAS 18 as interpretation for revenue recognition.Income from the sale of goods for resale and finished goods, is recognised in revenue when the most significant rewards and risks have been transferred to the buyer and provided the income can be measured reliably and payment is expected to be received. The date of the transfer of the most significant rewards and risks is based on standardised terms of delivery based on Incoterms® 2020.Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. The items revenue, cost of sales and external expenses have been aggregated into one item in the income statement called gross profit/loss in accordance with section 32 of the Danish Financial Statements Act. Cost of sales includes the cost of goods used in generating the year's revenue. Financial income and expenses are recognised in the income statements at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Other intangible assets comprise capitalised patent application costs. Capitalised costs include external fees and other directly attributable expenditures incurred in connection with obtaining and securing patent protection.Other intangible assets are measured at cost less accumulated amortisation and impairment losses. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables.Receivables are measured at amortised cost.An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis.Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company's risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience.Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Cash include balances in financial institutions. The Company has chosen IAS 39 as interpretation for liabilities.Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases.Other liabilities are measured at net realisable value. The Company has obtained a letter of support from three of its largest shareholders, under which they have committed to provide supplementary loan facilities of up to DKK 500 thousand, if required, to enable the Company to meet its liabilities as they fall due. The commitment remains in force until 2 July 2027. 0 162553 162553 162553 The Company's share capital has remained DKK 500,000 since the establishment. Other contingent liabilities The Company has no contingent liabilities. The Company has not provided any security or other collateral in assets at 31 December 2025.