REVENUE AND DEFERRED REVENUE

6 Months Ended

Jun. 30, 2026

Notes and other explanatory information [abstract]

NOTE 9 – REVENUE AND DEFERRED REVENUE

SCHEDULE OF REVENUE FROM SOURCES

	June 30, 2026		June 30, 2025
Software development	$	328,221	$	273,110
Sensera devices and capsules		3,852		-
Software license		90,859		79,728
Software supports		31,718		27,355
Cloud hosting		30,501		24,049
Others		3,254		3,679
Revenue	$	488,405	$	407,921

FEMTO TECHNOLOGIES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the six months ended June 30, 2026

(Expressed in Canadian dollars)

(Unaudited)

NOTE 9 – REVENUE AND DEFERRED REVENUE (continued)

The Company recognized revenues from contracts with customers in accordance with the following timing under IFRS 15:

SCHEDULE OF REVENUE UNDER TIMING

	June 30, 2026		June 30, 2025
Revenue recognized over time	$	393,694	$	328,193
Revenue recognized at a point of time		94,711		79,728
Revenue	$	488,405	$	407,921

Deferred revenue represents contract liabilities for customer payments received related to services yet to be provided subsequent to the reporting date. Significant changes in deferred revenue are as follows:

SCHEDULE OF DEFERRED REVENUE

	June 30, 2026			December 31, 2025
Deferred revenue, beginning	$	145,404		$	140,088
Customer payments received attributable to contract liabilities for unearned revenue		19,057			182,653
Revenue recognized from fulfilling contract liabilities		(69,107	)		(177,337	)
Deferred revenue, ending	$	95,354		$	145,404

The Company derives significant revenues from one customer, which exceeds 10% of total revenues. Revenues earned from that customer were 78% of total revenues for the period ended June 30, 2026 Six months ended June 30, 2025 – 64%)