Femto Technologies announced its second quarter 2025 financial results, providing updated financial performance data and operational highlights.

• Femto Technologies announced its second quarter 2025 financial results on August 26, 2025, reporting revenue and net loss figures for the period [N1].

Femto Technologies has completed development of a new CRM platform that is generating revenue, indicating product development capabilities and market acceptance. The company maintains a strong liquidity position with significant cash reserves relative to liabilities, supporting operational stability. The testing of a cannabis CRM platform represents potential for future product expansion. The company has reduced share-based compensation expenses and managed impairment losses, reflecting cost control efforts. The settlement of disputes and absence of material contingent liabilities reduce legal and financial uncertainties.

The company exhibits high customer concentration risk, with 80% of revenue derived from a single customer, which could impact revenue stability. The medical cannabis facility development is on hold, limiting near-term revenue diversification. The company reported a net loss and negative EPS for the quarter ended September 30, 2025, indicating ongoing profitability challenges. Foreign exchange losses and volatility in derivative warrant liabilities introduce financial risks. The company has undergone multiple reverse stock splits and equity issuances, which may reflect capital structure challenges.

Femto Technologies' moat is primarily based on its specialized CRM software platforms, including a newly developed CRM platform and a cannabis-specific CRM platform under testing. The company's high customer concentration suggests strong relationships with key clients, which may provide some competitive advantage. However, the lack of diversification in customers and the hold on medical cannabis facility development limit the breadth of its moat. The company's intellectual property in software development and ongoing R&D efforts contribute to its competitive positioning.

• Customer Concentration Risk: Approximately 80% of Femto Technologies' revenue in 2025 was derived from a single customer, creating dependency risk if this customer reduces or ceases business.
• Profitability and Net Losses: The company reported a net loss of CAD 6.46 million for the quarter ended September 30, 2025, and negative EPS, indicating ongoing challenges in achieving profitability.
• Foreign Currency Risk: Exposure to USD and CAD currency fluctuations affects financial results, with foreign exchange losses reported due to term deposits and currency translation.
• Operational Delays: The medical cannabis facility development is currently on hold, limiting potential revenue streams from cannabis products in the near term.
• Financial Instrument Volatility: Significant changes in fair value of derivative warrant liabilities and settlement agreement derivatives introduce volatility to financial results.

• Femto Technologies Inc. is an Israel-based company reporting in Canadian dollars (CAD).
• As of September 30, 2025, Femto Technologies had cash and cash equivalents of CAD 17,337,450 and current assets of CAD 17,941,097, with current liabilities of CAD 804,618, resulting in a strong current ratio of 22.3 and cash ratio of 21.55.
• For the quarter ended September 30, 2025, the company reported revenue of CAD 211,073 and a net loss of CAD 6,464,729, with basic and diluted EPS of -7.54 CAD per share.
• For the fiscal year ended December 31, 2025, Femto Technologies reported total revenue of CAD 846,531, down from CAD 998,839 in 2024, primarily from software development, software license, software support, and cloud hosting services.
• Approximately 80% of the company's sales in 2025 were to its largest customer, indicating high customer concentration risk.
• The company completed development of a new CRM platform and began generating revenues from it in 2023; a new Cannabis CRM platform is in testing but not yet generating revenue.
• The proposed development of a medical cannabis facility is on hold with no near-term revenue expected from cannabis sales.
• Cost of revenue for 2025 was CAD 748,148, down from CAD 848,137 in 2024, with a gross margin of 12% in 2025 compared to 15% in 2024.
• Operating expenses include share-based compensation, research and development expenses related to the Sensera Device, and impairment losses on intangible assets.
• The company has a defined benefit pension plan liability of CAD 62,212 as of December 31, 2025, reduced from CAD 100,430 in 2024.
• Femto Technologies has issued subordinate voting shares and has conducted multiple reverse stock splits in 2024 and 2025.
• The company has no outstanding stock options as of December 31, 2025, following cancellations and exercises.
• Liquidity risk is managed through cash flows, borrowing, and equity issuance; the company had no material commitments or contingent liabilities as of December 31, 2025.
• Foreign currency risk arises from USD and CAD currency exposure; the company holds cash in both currencies to cover operating needs.
• The company reported a significant gain from changes in fair value of derivative warrant liabilities in 2025 due to share price decline.
• The company announced second quarter 2025 financial results publicly on August 26, 2025 [N1].