In addition, the external auditors draw attention to note 1 of the interim condensed financial information which indicates the following: the Company incurred a net loss of SAR 6.87 million for the period ended 31 March 2026 and had accumulated losses of SAR 458.7 million as of 31 March 2026. These losses exceeded the Company’s share capital as at the period ended, and it also reported net operating cash outflows of SAR 17.34 million for the three-month period ended. These events and conditions, along with other matters as set forth in note 1 to the interim condensed financial information, indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. Our conclusion is not further modified in respect of this matter.

Total comprehensive loss for the current quarter is SAR 6,865 thousand, compared to total comprehensive loss of SAR 20,812 thousand in the same quarter of last year.

Total equity as of the end of the current quarter is SAR 17,714 thousand, a decrease of 93% from SAR 247,502 thousand at the end of the same quarter of last year.

Referring to the fact that the Company's accumulated losses have reached 115% of its capital as at March 31, 2026, the Company will continue to apply the procedures and instructions applicable to listed companies whose accumulated losses exceed 50% of their capital.

In reference to the qualified conclusion included in the auditor’s review report concerning the impairment assessment of the Company’s goodwill as at 31 December 2025, the Company wishes to clarify the following:

In accordance with the requirements of International Accounting Standard 36 “Impairment of Assets” and IFRS 13 "Fair Value Measurement", the company has proactively taken ‎measures in this regard by appointing a Taqeem‑certified external valuation specialist company licensed by the Saudi Authority for Accredited Valuers, to perform an independent impairment assessment of goodwill.

Based on the impairment assessment performed by the valuation specialist company, it was concluded that the recoverable amount of goodwill exceeded its carrying amount as at 31 December 2025 and, on this basis, the management concluded that no impairment of goodwill was required to be recognised in the financial statements.

As disclosed in the auditor’s review report, the qualified conclusion arises from a difference in professional judgment of the management and its independent expert, with the auditors, regarding the application of the impairment assessment methodology.