Interim report
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY – 30 SEPTEMBER 2025 (ORIGINALLY ISSUED IN TURKISH)
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY – 30 SEPTEMBER 2025 CONTENTS PAGE CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................ 1-2 CONSOLIDATED STATEMENTS OF PROFIT AND LOSS ................................................. 3 CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME ................ 4 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ........................................... 5 CONSOLIDATED STATEMENTS OF CASH FLOWS .......................................................... 6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...................................... 7-54
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2025 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 1 Audited Notes 30 September 2025 31 December 2024 ASSETS Current assets 2,034,237 5,325,176 Cash and cash equivalents 4 638,331 556,664 Financial investments 5 82,652 160,586 Trade receivables 988,038 1,507,615 - Trade receivables from third parties 8 988,038 1,507,615 Other receivables 2,490 354 - Other receivables from third parties 9 2,490 354 Inventories 10 24,758 18,138 Prepaid expenses 17 105,362 76,601 Other current assets 9 52,690 39,253 Sub total 1,894,321 2,359,211 Assets classified as held for sale 27 139,916 2,965,965 Non-current assets 4,870,066 3,789,195 Other receivables 3,643 1,935 - Other receivables from related parties 30 3,643 1,935 Financial investments 5 633,213 926,932 Investments valued using the equity method 6 1,304,150 - Right-of-use assets 13 18,251 12,509 Property, plant and equipment 11 394,893 433,911 Intangible assets 2,470,000 2,315,756 - Goodwill 14 143,613 130,937 - Other intangible assets 12 2,326,387 2,184,819 Prepaid expenses 17 30,645 1,996 Deferred tax asset 28 13,085 93,414 Other non-current assets 2,186 2,742 Total assets 6,904,303 9,114,371 The accompanying consolidated financial statements were approved for issue by the Board of Directors on 4 November 2025 and signed on behalf of the Board of Directors by Bu ğra Koyuncu, Vice Chairman and Logo Group Chief Executive Officer, CEO and Gülnur Anlaş, Logo Group Chief Financial Officer, CFO. The accompanying notes form an integral part of these consolidated financial statements .
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2025 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 2 Audited Notes 30 September 2025 31 December 2024 LIABILITIES Current liabilities 2,752,097 4,686,202 Short-term borrowings 7 11,327 7,709 Trade payables 247,884 324,234 - Trade payables to third parties 8 247,884 324,234 Employee benefit payables 16 209,797 408,133 Other payables 198,214 351,623 - Other payables to third parties 9 198,214 351,623 Liabilities arising from customer contracts 17 2,084,870 2,336,606 Other current liabilities 5 68 Sub total 2,752,097 3,428,373 Liabilities related to asset groups classified as held for sale 27 - 1,257,829 Non-current liabilities 624,903 786,842 Long-term borrowings 7 7,125 6,692 Other payables 348,924 490,052 - Other payables to third parties 9 348,924 490,052 Long-term provisions 211,674 185,484 - Provisions for employee benefits 16 211,674 185,484 Liabilities arising from customer contracts 17 57,180 91,749 Deferred tax liabilities 28 - 12,865 EQUITY Equity attributable to equity holders of the parent 3,527,303 3,298,055 Paid-in capital 18 95,000 95,000 Adjustment differences to share capital 18 1,017,211 1,017,211 Restricted reserves appropriated from profit 322,692 322,692 Put option revaluation fund related with non-controlling interests (714,678) (714,678) Treasury shares (-) 18 (389,014) (389,014) Reserves related to treasury shares 18 389,014 389,014 Other accumulated comprehensive income that will not be reclassified to profit or loss 439,863 370,379 - Loss on remeasurement of defined benefit plans (69,027) (67,520) - Gain from investments in equity instruments 508,890 437,899 Other accumulated comprehensive income that will be reclassified to profit or loss 67,880 746,736 - Foreign currency translation differences 67,880 760,872 - Cost of hedging reserves - (11,661) - Fair value gains (losses) on financial assets at fair value through other comprehensive income - (2,475) Prior years’ profit 929,987 1,019,375 Net profit for the period 1,369,348 441,340 Non-controlling interests - 343,272 Total equity 3,527,303 3,641,327 Total liabilities and equity 6,904,303 9,114,371 The accompanying notes form an integral part of these consolidated financial statements .
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE PERIODS 1 JANUARY - 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 3 1 January- 1 July- 1 January- 1 July- 30 September 30 September 30 September 30 September Notes 2025 2025 2024 2024 Revenue 20 3,961,748 1,374,624 3,569,768 1,180,844 Cost of sales (-) 20 (133,383) (51,399) (116,182) (36,343) Gross profit 3,828,365 1,323,225 3,453,586 1,144,501 General administrative expenses (-) 21 (346,809) (122,073) (322,931) (108,555) Marketing expenses (-) 21 (1,052,039) (373,068) (851,357) (277,399) Research and development expenses (-) 21 (1,373,539) (469,354) (1,237,019) (426,091) Other operating income 22 74,431 (15,026) 71,884 9,392 Other operating expenses (-) 22 (40,193) (10,796) (64,105) (6,954) Operating profit 1,090,216 332,908 1,050,058 334,894 Income from investing activities 23 849,008 29,482 144,019 43,025 Share of losses of investments accounted for using the equity method 6 (41,611) 16,726 (49,817) (49,817) Operating profit before finance income/(expenses) 1,897,613 379,116 1,144,260 328,102 Finance income 24 12,026 3,727 198,864 32,172 Finance expenses (-) 25 (209,025) (71,995) (394,342) (124,990) Net monetary position losses 26 (268,622) (77,653) (525,144) (109,721) Profit before tax 1,431,992 233,195 423,638 125,563 Tax expense (62,644) 6,571 (54,160) (7,745) Current tax expense 28 - - - 5,598 Deferred tax (expense)/income 28 (62,644) 6,571 (54,160) (13,343) Profit for the period from continuing operations 1,369,348 239,766 369,478 117,818 Discontinued operations profit/(loss) for the period 27 - - 68,699 38,184 Net profit for the period 1,369,348 239,766 438,177 156,002 Distribution of net profit for the period: Non-controlling interests - - 13,740 7,637 Equity holders of the parent 1,369,348 239,766 424,437 148,365 Earnings/(loss) per share 29 - Earnings/(loss) per share from continuing operations 14.60 2.56 3.94 1.25 - Earnings/(loss) per share from discontinued operations - - 0.58 0.33 The accompanying notes form an integral part of these consolidated financial statements.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 4 1 January- 1 July- 1 January- 1 July- 30 September 30 September 30 September 30 September OTHER COMPREHENSIVE INCOME Notes 2025 2025 2024 2024 Profit for the period 1,369,348 239,766 438,177 156,002 Items that will be reclassified to profit or loss: (678,856) (34,140) (113,434) 29,959 Foreign currency translation differences (692,992) (34,140) (116,075) 30,682 Hedge losses 11,661 - 4,077 184 Fair value difference loss (gain) on financial assets through other comprehensive income 3,133 (49) (1,700) (1,155) Tax effect 28 (658) 49 264 248 Items that will not be reclassified to profit or loss: 69,484 23,201 48,999 12,298 Revaluation losses of defined benefits plans 16 (1,725) 5,435 (3,519) 206 Tax effect 28 218 (672) 414 (75) Gain from investments in equity instruments 75,370 19,431 55,214 12,773 Tax effect 28 (4,379) (993) (3,110) (606) Other comprehensive income/(expenses) (609,372) (10,939) (64,435) 42,257 Total comprehensive income/(expenses) 759,976 228,827 373,742 198,259 Distribution of total comprehensive income/(expense): Non-controlling interest - - (41,864) 4,416 Equity holders of the parent 759,976 228,827 415,606 193,843 759,976 228,827 373,742 198,259 The accompanying notes form an integral part of these consolidated financial statements.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 5 Gains and losses on Put option Share Reserves Losses on Restricted remeasurement Gains from Foreign valuation fund Equity capital for hedging reserves of defined investments Gains (Losses) on currency Prior Net profit for attributable Non- Paid-in adjustment Treasury treasury shares appropriated benefit in equity Assets at translation years’ for the non-controlling to the controlling Total capital differences shares shares (**) from profit plans (*) instruments(*) FVTOCI (**) differences (**) profit period interests parent interests equity Balances as of 1 January 2024 100,000 1,067,302 (380,808) 380,808 (18,755) 322,692 (60,423) 300,019 2,433 964,189 1,461,595 253,811 (571,530) 3,821,333 348,793 4,170,126 Transfers to prior years’ profit - - - - - - - - - - 253,811 (253,811) - - - - Dividends paid - - - - - - - - - - (544,725) - - (544,725) - (544,725) Decrease due to share ratio changes that do not result in loss of control in subsidiaries - - - - - - - - - - (48,323) - (55,982) (104,305) (12,116) (116,421) Increase/decrease due to treasury shares repurchase transactions - - (155,005) 155,005 - - - - - - (155,005) - - (155,005) - (155,005) Net profit for the period - - - - - - - - - - - 424,437 - 424,437 13,740 438,177 Other comprehensive income - - - - 4,077 - (3,105) 52,104 (1,436) (60,471) - - - (8,831) (55,604) (64,435) Balances as of 30 September 2024 100,000 1,067,302 (535,813) 535,813 (14,678) 322,692 (63,528) 352,123 997 903,718 967,353 424,437 (627,512) 3,432,904 294,813 3,727,717 Balances as of 1 January 2025 95,000 1,017,211 (389,014) 389,014 (11,661) 322,692 (67,520) 437,899 (2,475) 760,872 1,019,375 441,340 (714,678) 3,298,055 343,272 3,641,327 Transfers to prior years’ profit - - - - - - - - - - 441,340 (441,340) - - - - Dividends paid - - - - - - - - - - (530,728) - - (530,728) - (530,728) Disposal of a subsidiary - - - - - - - - - - - - - - (343,272) (343,272) Net profit for the period - - - - - - - - - - 1,369,348 - 1,369,348 - 1,369,348 Other comprehensive income - - - - 11,661 - (1,507) 70,991 2,475 (692,992) - - - (609,372) - (609,372) Balances as of 30 September 2025 95,000 1,017,211 (389,014) 389,014 - 322,692 (69,027) 508,890 - 67,880 929,987 1,369,348 (714,678) 3,527,303 - 3,527,303 (*) Accumulated other comprehensive income/(expenses) that will not be reclassified to profit or loss (**) Accumulated other comprehensive income/(expenses) that will be reclassified to profit or loss The accompanying notes form an integral part of these consolidated financial statements.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY - 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 6 1 January - 1 January - Notes 30 September 2025 30 September 2024 A. Cash flows generated from operating activities 1,199,283 1,273,690 Profit for the period 1,369,348 438,177 Profit/(loss) for the period from continuing operations 1,369,348 369,478 Profit/(loss) for the period from discontinued operations - 68,699 Adjustments related to reconciliation of profit for the period 261,218 1,142,068 Adjustments related to depreciation and amortization expenses 11, 12, 13 538,467 456,155 Adjustments related to provisions for employee benefits 16 77,492 89,776 Adjustments related to interest expenses 25 170,722 351,030 Adjustments related to interest income 24 (2,371) (11,922) Adjustments related to losses (gains) on disposal of financial investments 23 (106,647) (144,019) Adjustments related to impairment/(reversal) of receivables 8 1,701 841 Adjustments related to unrealised foreign exchange differences (7,051) (179,097) Adjustments related to tax (income)/expense 28 62,644 54,160 Adjustments related to losses (gains) on disposal of subsidiaries or joint operations (742,361) - Monetary (gain) / loss effect 268,622 525,144 Changes in working capital (422,199) (511,019) Adjustments related to decrease/(increase) in inventories (10,297) 17,248 Adjustments related to decrease/(increase) in trade receivables 212,222 (42,593) Adjustments related to increase/(decrease) in trade payables (10,615) (108,124) Increase in other operating assets (83,113) (72,451) Increase/(decrease) in other operating liabilities (530,396) (305,099) Cash flows from operating activities 1,208,367 1,069,226 Tax payments 28 - (9,565) Payments related to provision for employee benefits 16 (9,084) (31,745) Net cash generated from operations of discontinued operations - 245,774 Cash outflows from the acquisition of property, plant and equipment and intangible assets (615,472) (773,912) Cash inflows from sale of debt instruments or shares of other entities or funds 221,768 983,996 Proceeds from sale of property, plant and equipment and intangible assets 668 3,686 Cash outflows from share purchases or capital increases of associates and joint ventures - (66,303) Net cash obtained from investing activities of discontinued operations - (196,062) B. Cash flows from investing activities (393,036) (48,595) Net cash from financing activities of discontinued operations - 4,033 Cash outflows related to repayment of loans 33 (1,892) (1,260) Interest paid (161,603) (347,143) Interest received 109,018 155,941 Cash outflows from the acquisition of own shares - (155,005) Cash outflows related to debt payments from lease agreements 33 (26,517) (10,184) Dividends paid (530,728) (544,725) C. Cash flows from financing activities (611,722) (898,343) Net increase in cash and cash equivalents (A+B+C) 194,525 326,752 D. Effect of monetary gain on cash and cash equivalents (112,858) (914,266) E. Cash and cash equivalents at the beginning of the period 4 556,664 853,949 Cash and cash equivalents at the end of the period (A+B+C+D+E) 4 638,331 266,435 The accompanying notes form an integral part of these consolidated financial statements.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 7 NOTE 1 - ORGANIZATION AND OPERATIONS OF THE GROUP Logo Yazılım Sanayi ve Ticaret Anonim Şirketi (“Logo Yazılım” or “the Company”) was established in 1986 as a Limited Company and became a corporation on 30 September 1999. The Company is domiciled in Türkiye and operates under the Turkish Commercial Code. The main activity of the Company is production, development, processing and multiplication of operating systems, application software, databases, software increasing productivity, multimedia software products and all types of similar software processed ins ide all types of computer hardware, and distribution of these at all physical and electronic environment, and to carry out all the services such as technical support, training and technical service activities. As of 30 September 2025, the average number of the personnel of the Group is 941 (31 December 2024: Average number of employees working in Türkiye is 989 and the average number of employees in Romania is 552) . The address of the registered office of the Company is as follows: Şahabettin Bilgisu Caddesi, No: 609 Gebze Organize Sanayi Bölgesi Gebze, Kocaeli As of 30 September 2025, main shareholder and ultimate controlling party of Logo Yaz ılım is Logo Teknoloji ve Yatırım A.Ş. The partnership structure of the Company is explained in Note 18. The operations of subsidiaries and joint ventures of Logo Yazılım (together referred to as “the Group”) are as follows. Country of Subsidiaries operation Field of activity Logo Ödeme Hizmetleri A.Ş. (“Logo Ödeme”) (*) Türkiye Software development and marketing Country of Joint venture operation Field of activity Logo Infosoft Business Technology Private Limited (“Logo Infosoft”) (**) India Software development and marketing Country of Associate operation Field of activity Total Soft S.A. (“Total Soft”) (***) Romania Software development and marketing (*) Logo Ödeme Hizmetleri A. Ş. was established within the Group on 29 November 2022 to operate within the scope of our country's new regulations on open banking within the framework of the goal of maintaining and growing its investments in the field of fintech. As of 30 September 2025, the revenue model of the Company's Fintech services, which has not yet started its operations, will be based on annual package subscription and credits per transaction, and the Company is expected to significantly increase its SaaS (Software-as-a-Service) revenues. (**) With the decision of the Board of Directors dated 13 June 2025, it has been decided to carry out all transactions reg arding the liquidation process of the joint venture Logo Infosoft Business Technology Private Limited (“Logo Infosoft”). (***) Note 27.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 8 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS 2.1 Basis of Presentation 2.1.1 Financial Reporting Standards Applied The accompanying consolidated financial statements of the Group have been prepared in accordance with the communiqué numbered II - 14.1 ‘Communiqué on the Principles of Financial Reporting in Capital Markets’ (“the Communiqué”) announced by the CMB on 13 June 2013 which is published on Official Gazette numbered 28676, in compliance with the international standards, Turkish Accounting Standards/Turkish Financial Reporting Standards (“TAS/TFRS”) promulgated by the Public Oversight Accounting and Auditing Stan dards Authority (“POA”) and related supplements and interpretations. TAS/TFRS are updated in harmony with the changes and updates in International Financial and Accounting Standards (“IFRS”) by the communiqués. The consolidated financial statements are presented in accordance with the formats set out in the Financial Statement Examples and User Guide published by the Capital Markets Board (CMB), based on the formats prescribed in the “TFRS Taxonomy” issued by the Public Oversight Authority (POA) on July 4, 2024. The consolidated financial statements have been prepared under the historical cost convention except for the financial investments, derivative assets and liabilities at fair values and revaluations related to the differences between carrying value and fair value of property, plant and equipment and intangible assets arising from business combinations. 2.1.2 Financial Statements of Subsidiaries Operating in Foreign Countries The financial statements of subsidiaries operating in foreign countries are adjusted to TAS/TFRSs published by the POA for the purpose of fair presentation with necessary adjustments and classifications. Subsidiaries’ assets and liabilities of the related foreign subsidiaries are translated into Turkish Lira from the foreign exchange rate at the balance sheet date and income and expenses are translated into Turkish Lira at the average foreign exchange rate. Exchange differences arising from the translation of the opening net assets and differences between the average and balance sheet dates are included in the “foreign currency translation difference” under the shareholders’ equity. 2.1.3 Basis of Consolidation The consolidated financial statements prepared in accordance with the principles of consolidated financial statements for the year ended 31 December 2024 include the accounts of Logo Yazılım and its subsidiaries. The table below sets out the subsidiaries o f Logo Yazılım and ownership interests held by the Company as of 30 September 2025 and 31 December 2024: Subsidiaries 30 September 2025 (%) 31 December 2024 (%) Logo Ödeme 100.00 100.00 Total Soft - 80.00 Joint venture 30 September 2025 (%) 31 December 2024 (%) Logo Infosoft (*) 75.86 75.93 Associate 30 September 2025 (%) 31 December 2024 (%) Total Soft 80.00 - (*) On 1 January 2018, the Company has joint control of Logo Infosoft based on the contract made with GSF Software Labs LLC. After this date, Logo Infosoft was evaluated as a joint venture in the consolidated financial statements and accounted for as an investment valued by the equity method.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 9 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.1 Basis of Presentation (cont’d) 2.1.3 Basis of Consolidation (cont’d) Subsidiaries The consolidated financial statements include financial statements of the Company and entities controlled by the Company's subsidiaries. Control is provided by the Company providing the following conditions: • Have the authority on the investee company/asset, • Being open to or entitled to variable returns from the investee company/asset and • Ability to use its power that may have effect on the returns. The balance sheets, income statements and other comprehensive income statements of the subsidiaries that are incorporated into consolidation are consolidated using full consolidation method. The registered value of the investment recorded in the assets of the company and the amount from subsidiaries’ shareholder’s equity corresponded to the Company’s share are settled net. The transactions and balances between the Company and subsidiaries are mutually deleted under consolidation. Investments in Associates and Joint Ventures Associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee without having control or joint control over those policies. Joint venture is a joint initiative in which the sides, who have joint control in an arrangement, have rights related to net assets in this common arrangement. Joint control is the sharing of the control over an economic activity depends on the agreement. This control is supposed to exist if the decisions about the related activity can only be made by the unanimous vote of the sides who share the control. In the accompanying consolidated financial statements, the results of operations and the assets and liabilities of associates or joint ventures are accounted for using the equity method, except for those classified as non -current assets held for sale in ac cordance with TFRS 5. Under the equity method, investments in associates and joint ventures are initially recognized at cost and subsequently adjusted for the Group’s share of post -acquisition changes in the investee’s net assets, less any impairment in th e associate or joint venture. The Group does not recognize its share of losses exceeding the carrying amount of its interest in an associate or joint venture (including any long-term interests that, in substance, form part of the Group’s net investment in the associate or joint venture). Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or has made payments on behalf of the associate or joint venture. Gains and losses arising from transactions between a Group entity and an associate are eliminated to the extent of the Group’s interest in the associate or joint venture. Assets Classified as Held for Sale and Discontinued Operations The Group classifies non‑current assets and disposal groups as held for sale when their carrying amounts are expected to be recovered principally through a sale transaction rather than through continuing use. Non‑current assets and disposal groups classifi ed as held for sale are measured at the lower of their carrying amount and fair value less costs of sale. Cost of sale is the incremental cost directly attributable to the disposal of an asset (or disposal of an asset group), excluding finance costs and income tax expenses.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 10 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.1 Basis of Presentation (cont’d) 2.1.3 Basis of Consolidation (cont’d) Assets Classified as Held for Sale and Discontinued Operations (cont’d) A classification as held for sale is made only when the criteria for such classification are met, namely that the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. The steps required to complete the sale should indicate that no significant changes to the sale plan or withdrawal from the sale will occur. Management must be committed to a plan to sell the asset, and the sale is expected to be completed within one year from the date of classification. Property, plant and equipment and intangible assets classified as held for sale are not depreciated or amortized after their classification as held for sale. Assets and liabilities classified as held for sale are presented separately under current assets and current liabilities in the statement of financial position. Discontinued operations are excluded from the results of continuing operations and are presented as a single line item in the statement of profit or loss as “profit or loss after tax from discontinued operations.” Additional disclosures are provided in Note 27. Unless otherwise stated, all other notes to the financial statements are relate to continuing operations. 2.1.4 Functional and Presentation Currency The financial position and operating results of the Group are prepared in TL, which is the currency of the main economic environment in which Logo Yazılım operates (“functional currency”) and the presentation currency for the consolidated financial statements. Functional currency of subsidiaries operating in Romania is Romanian Leu (“RON”). Functional currency of Logo Infosoft is Indian rupee (“INR”). Financial information of each entity included in consolidation are measured using the currency of the primary ec onomic environment in which these entities operate, normally under their local currencies. The financial statements of subsidiaries operating in foreign countries have been prepared in accordance with the laws and regulations applicable in the country in w hich they operate, in the currency of that country, and assets and liabilities for each statement of financial position presented are translated to TL at closing exchange rates at the statement of financial position date. Income and expenses are translated to TL at monthly average exchange rates. Foreign currency differences resulting from the use of closing and monthly average rates are followed in the foreign currency translation differences account under shareholders' equity and other comprehensive income. 2.1.5 Comparative Information and Restatement of Prior Period Financial Statements The Group’s consolidated financial statements have been prepared comparatively with the prior period to allow determination of the financial position and performance trends. Reclassifications can be made in comparative information in order to conform with the presentation of the current period financial statements. In the current period, the Group has not made any reclassification in the prior period financial statements. 2.2 Going Concern The companies included in the consolidation have prepared their financial statements in accordance with the going concern principle. The Group management has made an assessment of the going concern of the Group's operations and concluded that the Group has sufficient resources to continue its activities in the near future.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 11 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.3 New and Amended Turkish Financial Reporting Standards a) Amendments that are mandatorily effective from 2025 Amendments to TAS 21 Lack of Exchangeability Amendments to TAS 21 Lack of Exchangeability The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. Amendments are effective from annual reporting periods beginning on or after 1 January 2025. b) New and revised TFRSs in issue but not yet effective The Group has not yet adopted the following standards and amendments and interpretations to the existing standards: TFRS 17 Insurance Contracts TFRS 17 (Amendments) Initial Application of TFRS 17 and TFRS 9 — Comparative Information (Amendment to TFRS 17) TFRS 18 Presentation and Disclosures in Financial Statements TFRS 9 and TFRS 7 (Amendments) Amendments to the Classification and Measurement of Financial Statements TFRS 9 and TFRS 7 (Amendments) Amendments Relating to Power Purchase Agreements TFRS 19 Disclosures for Subsidiaries without Public Accountability TFRS 17 Insurance Contracts TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, princip le-based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts on 1 January 2026. TFRS 17 Insurance Contracts and Initial Application of TFRS 17 and TFRS 9 (Amendments ) – Comparative Information Amendments have been made in TFRS 17 in order to reduce the implementation costs, to explain the results and to facilitate the initial application. The amendment permits entities that first apply TFRS 17 and TFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had been applied to that financial asset before. Amendments are effective with the first application of TFRS 17. TFRS 18 Presentation and Disclosures in Financial Statements TFRS 18 includes requirements for all entities applying TFRS for the presentation and disclosure of information in financial statements. Applicable to annual reporting periods beginning on or after 1 January 2027.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 12 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.3 New and Amended Turkish Financial Reporting Standards (cont’d) b) New and revised TFRSs in issue but not yet effective (cont’d) TFRS 9 and TFRS 7 (Amendments) – Amendments to the Classification and Measurement of Financial Instruments The amendments address matters identified during the post -implementation review of the classification and measurement requirements of TFRS 9 Financial Instruments. They are effective for annual reporting periods beginning on or after 1 January 2026. TFRS 9 and TFRS 7 (Amendments) – Amendments Relating to Power Purchase Agreements The amendments aim to enable entities to include information on nature -linked electricity-referenced contracts in their financial statements, based on the view that such contracts provide a more faithful representation. They are effective for annual reporting periods beginning on or after 1 January 2026. TFRS 19 – Disclosures for Subsidiaries without Public Accountability TFRS 19 specifies the disclosure requirements permitted to be applied by an eligible subsidiary in place of the disclosure requirements in other TFRS Accounting Standards. It is effective for annual reporting periods beginning on or after 1 January 2027. The Group evaluates the effects of these standards, amendments and improvements on the consolidated financial statements. 2.4 Changes in Accounting Policies Accounting policy changes arising from the initial application of a new TAS/TFRS are applied retrospectively or prospectively in accordance with the transitional provisions of the TAS/TFRS. Changes to which no transition clauses are included, material chan ges in accounting policies or voluntary accounting errors are applied retrospectively and prior period financial statements are restated. Restatement of financial statements during periods of high inflation The financial statements and related figures for previous periods have been restated for changes in the general purchasing power of the functional currency and, consequently, the financial statements and related figures for previous periods are expressed i n terms of the measuring unit current at the end of the reporting period in accordance with TAS 29 “Financial Reporting in Hyperinflationary Economies”. TAS 29 applies to the consolidated financial statements, including the consolidated financial statements, of each entity whose functional currency is the currency of a hyperinflationary economy. If an economy is subject to hyperinflation, TAS 29 requires an entity whose functional currency is the currency of a hyperinflationary economy to present its financial statements in terms of the measuring unit current at the end of the reporting period. As at the reporting date, entities operating in Türkiye are required to apply TAS 29 "Financial Reporting in Hyperinflationary Economies" for the reporting periods ending on or after 31 December 2023, as the cumulative change in the general purchasing power of the last three years based on the Consumer Price Index (“CPI”) is more than 100%. POA made an announcement on 23 November 2023 regarding the scope and application of TAS 29. It stated that the financial statements of the entities applying Turkish Financial Reporting Standards for the annual reporting period ending on or after 31 Decembe r 2023 should be presented in accordance with the related accounting principles in TAS 29, adjusted for the effects of inflation.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 13 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.4 Changes in Accounting Policies (cont’d) Restatement of financial statements during periods of high inflation (cont’d) In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of TAS 29 to their annual financial statements for the accounting periods ending on 31 December 2023. In this framework, while preparing the consolidated financial statements dated 30 September 2025, inflation adjustment has been made in accordance with TAS 29. Date Index Adjustment coefficient Three-year cumulative inflation rates 30.09.2025 3,367.22 1.00000 222% 31.12.2024 2,684.55 1.25430 291% 30.09.2024 2,526.16 1.33294 343% The main lines of TAS 29 indexation transactions are as follows: • As of the balance sheet date, all items other than those stated in terms of current purchasing power are restated by using the relevant price index coefficients. Prior year amounts are also restated in the same way. • Monetary assets and liabilities are expressed in terms of the purchasing power at the consolidated balance sheet date and are therefore not subject to restatement. Monetary items are cash and items to be received or paid in cash. • Fixed assets, subsidiaries and similar assets are indexed to their acquisition values, which do not exceed their market values. Depreciation has been adjusted in a similar manner. Amounts included in shareholders' equity have been restated by applying general price indices for the periods in which they were contributed to or arose within the Group. • All items in the consolidated income statement, except for the effects of non -monetary items in the balance sheet on the income statement, have been restated by applying the multiples calculated over the periods when the income and expense accounts were initially recognized in the financial statements. • The gain or loss arising on the net monetary position as a result of general inflation is the difference between the adjustments to non-monetary assets, equity items and income statement accounts. This gain or loss on the net monetary position is included in net profit. • The effect of inflation on the Group’s net monetary position for the current period has been recognized in the consolidated statement of profit or loss as a gain/(loss) on net monetary position (Note 26). The impact of the application of TAS 29 “Financial Reporting in Hyperinflationary Economies” is summarized below:
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 14 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.4 Changes in Accounting Policies (cont’d) Restatement of the statement of consolidated financial position Amounts in the consolidated statement of financial position that are not expressed in terms of the measuring unit current at the end of the reporting period are restated. Accordingly, monetary items are not restated because they are expressed in the curren cy of the reporting period. Non -monetary items are required to be restated unless they are expressed in terms of the currency in effect at the end of the reporting period. The gain or loss on the net monetary position arising on restatement of non-monetary items is recognized in profit or loss and presented separately in the statement of comprehensive income. Restatement of the statement of profit or loss All items in the statement of profit or loss are expressed in terms of the measuring unit current at the end of the reporting period. Therefore, all amounts have been restated by applying changes in the monthly general price index. Cost of inventories sold has been restated using the restated inventory balance. Depreciation and amortization expenses have been restated using the restated balances of property, plant and equipment, intangible assets and right-of-use assets. Restatement of statement of cash flows All items in the statement of cash flows are expressed in terms of the measuring unit current at the end of the reporting period. Consolidated financial statements The financial statements of a subsidiary whose functional currency is the currency of a hyperinflationary economy are restated by applying the general price index before they are included in the consolidated financial statements prepared by the parent comp any. If the subsidiary is a foreign subsidiary, its restated financial statements are translated at the closing rate. When consolidating financial statements with different reporting period ends, all monetary and non -monetary items are restated in accordan ce with the measuring unit current at the date of the consolidated financial statements. The statement of financial position of the Group's subsidiary operating in Romania has been translated into Turkish Lira at the period -end exchange rate and the statement of profit or loss and other comprehensive income at the exchange rate valid for trans actions. Prior period financial statements are included in the consolidated financial statements by indexing them according to the current period purchasing power for comparative presentation. Comparative figures Relevant figures for the previous reporting period are restated by applying the general price index so that the comparative financial statements are presented in the measuring unit applicable at the end of the reporting period. Information disclosed for pr ior periods is also expressed in terms of the measuring unit current at the end of the reporting period.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 15 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.5 Summary of Significant Accounting Policies The interim condensed consolidated financial statements for the nine -months period ended 30 September 2025 have been prepared in accordance with TAS 34. In addition, the significant accounting policies used in preparing the condensed interim consolidated f inancial statements for the period ended 30 September 2025 are consistent with the accounting policies disclosed in the consolidated financial statements as at 31 December 2024. Accordingly, the condensed consolidated interim financial statements should be evaluated with the consolidated financial statements for the year ended 31 December 2024. The Group has disclosed its accounting policies for the first time in Note 2.4. 2.6 Significant Accounting Estimates and Assumptions Preparation of the consolidated financial statements requires the usage of estimations and assumptions which may affect the reported amounts of assets and liabilities as of the balance sheet date, disclosure of contingent assets and liabilities and reported amounts of income and expenses during the financial period. The accounting assessments, forecasts and assumptions are reviewed continuously considering the past experiences, other factors and the reasonable expectations about the future events under curr ent conditions. Although the estimations and assumptions are based on the best estimates of the management’s existing incidents and operations, they may differ from the actual results. The estimates and assumptions that can lead to significant adjustments on the carrying value of the assets and liabilities are as follows: Provision for doubtful receivables Provision for doubtful receivables is an estimated amount that management believes to reflect for possible future losses on existing receivables that have collection risk due to current economic conditions. During the impairment test for the receivables, the debtors, other than related parties and key customers are assessed with their prior year performances, their credit risk in the current market, and their individual performances after the balance sheet date up to the issuing date of the financial statem ents and furthermore, the renegotiation conditions with these debtors are considered. Useful lives of intangible assets In accordance with the accounting policy stated in Note 2.5, intangible assets are stated at historical cost less depreciation, net of any impairment charges. Depreciation on tangible assets is calculated using the straight -line method over their estimated useful lives. Useful lives depend on the best estimates of the management and are reviewed in each balance sheet period and corrected accordingly, when needed. Revenue recognition The Group records software license revenue and special software development project revenues based on the completion level of contract activities as of the balance sheet date. Completion level is found by dividing the estimated total service rendered as of the balance sheet date by the total contractually required service. Logo Enterprise Membership (“LEM”) is an insurance package that provides free ownership for all the charged version updates which protect enterprises against all the legal amendments, and which includes new features that will contribute new values to the p roducts throughout the year. Since the free of charge LEM products given in the first year are given along with the currently up -to-date software, they do not bring significant updates for the user and their commercial value is lower compared to the LEM pr oducts provided in the subsequent years. Thus, related sales amounts are recognized as revenue within the transaction year.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 16 NOTE 2 - BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (cont’d) 2.6 Significant Accounting Estimates and Assumptions (cont’d) Research expenses and development costs Development is defined as the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, products, processes or systems before the start of commercial production or use and the cos ts incurred for these activities are capitalized by the Group. The Management determines the cost of employees to be capitalized taking into account time spent by each employee on research and development activities. The costs of employees relating to rese arch are expensed as incurred. Goodwill impairment test The Group tests goodwill for impairment annually, or less frequently if events or changes in circumstances indicate that it may be impaired. The recoverable amounts of cash generating units have been determined based on fair value calculations less costs to sell. The details of the estimates and assumptions used are explained in Note 14. NOTE 3 - SEGMENT REPORTING The competent authority to make decisions on the Group's operations is responsible for making decisions about resources to be allocated to the segments and evaluating the performance of the segments. Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) are used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Adjusted EBITDA is cal culated by the Company by adding depreciation expense and amortization to the net amount of sales income, cost of sales, operating expenses (excluding other income and expenses from operating activities). A new agreement has been signed with Avramos Holding, 20% shareholder of the Group's subsidiary Total Soft. Within the framework of the Group's management buy out offer, in accordance with the agreement with Avramos Holding, the details of discontinued ope rations for the period 30 September 2024 and 31 December 2024 for the associate accounted for by equity method as of 1 January 2025 are as follows.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 17 NOTE 3 - SEGMENT REPORTING (cont’d) Continuing Discontinued operations operations 31 December 2024 Türkiye Romania Consolidated Segment assets 6,148,406 2,965,965 9,114,371 Segment liabilities 4,215,215 1,257,829 5,473,044 Goodwill 130,937 - 130,937 Property, plant and equipment and intangible assets 2,618,730 - 2,618,730 Right-of-use assets 12,509 - 12,509 30 September 2024 Türkiye Romania Consolidated Revenue 3,569,768 - 3,569,768 Cost of sales (116,182) - (116,182) Operating expenses (2,411,307) - (2,411,307) Other income from operating activities 71,884 - 71,884 Other expenses from operating activities (64,105) - (64,105) Income from investing activities 144,019 - 144,019 Share of losses of investments accounted for using the equity method (49,817) - (49,817) Finance income 198,864 - 198,864 Finance expenses (394,342) - (394,342) Depreciation and amortization expenses (456,155) - (456,155) Tax expense (54,160) - (54,160) Net monetary position gains (losses) (525,144) - (525,144) Net profit for the period 369,478 68,699 438,177 Adjusted EBITDA 1,498,434 - 1,498,434 Purchase of property, plant and equipment and intangible assets 773,906 - 773,906 Reconciliation between adjusted EBITDA and profit before tax is as follows: 30 September 2024 Consolidated Adjusted EBITDA 1,498,434 Depreciation and amortisation expenses (456,155) Income from investing activities 144,019 Share of losses of investments accounted for using the equity method (49,817) Other operating income 71,884 Other operating expenses (64,105) Finance income 198,864 Finance expenses (394,342) Net monetary position losses (525,144) Profit before tax 423,638
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 18 NOTE 4 - CASH AND CASH EQUIVALENTS Details of cash and cash equivalents as of 30 September 2025 and 31 December 2024 are as follows : 30 September 2025 31 December 2024 Bank 164,593 17,468 - Time deposits 43,437 6,910 - Demand deposits 121,156 10,558 Credit cards slip receivables 308,031 349,486 Liquid funds (*) 165,707 189,710 638,331 556,664 (*) Liquid funds consist of investment instruments with a maturity of less than 3 months that can be converted into cash at any t ime without significant loss. The reconciliation of cash and cash equivalents in the statement of cash flows is as follows: 30 September 2025 31 December 2024 Cash and cash equivalents 638,331 556,664 Cash and cash equivalents related to assets classified as held for sale - 460,398 638,331 1,017,062 NOTE 5 - FINANCIAL INVESTMENTS Short-term financial investments 30 September 2025 31 December 2024 - Financial assets at fair value through profit or loss 82,652 47,973 - Financial assets at fair value through other comprehensive income (*) - 112,613 82,652 160,586 (*) Private sector bonds consist of highly liquid financial investments that are easily convertible into cash, do not bear the ri sk of significant value changes. Bonds are denominated in US Dollars.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 19 NOTE 5 - FINANCIAL INVESTMENTS (cont’d) Long-term financial investments Financial assets at fair value through other comprehensive income The analysis of non-current financial investments as of 30 September 2025 and 31 December 2024 is as follows : 30 September 2025 31 December 2024 Logo Ventures Girişim Sermayesi Yatırım Fonu (“Logo Ventures I”) (*) 17,715 18,971 Logo Ventures Girişim Sermayesi Yatırım Fonu (“Logo Ventures II”) (*) 517,094 502,480 İnterpro Yayıncılık Araştırma ve Organizasyon Hizmetleri A.Ş. (“Interpro”) 81 102 Figo Ticari Bilgi ve Uygulama Platformu A.Ş. (**) 86,689 86,689 Payer Yazılım Sanayi ve Ticaret A.Ş. (**) 10,986 10,986 Dokuz Eylül Teknoloji Geliştirme Bölgesi A.Ş. (“Dokuz Eylül”) 648 648 633,213 619,876 (*) As of 30 September 2025, Logo Ventures has been recognized as the asset fair value and difference is reflected to other comprehensive income and TL 75,370 (30 September 2024: TL 55,214) difference between its fair value and the cost value is accounted in other comprehensive income. İnterpro and Dokuz Eylül is reflected to consolidated financial statements with their cost value since their fair value is not significant as of 30 September 2025 and 31 December 2024. The Company has committed USD 11,200 thousand to, Istanbul Portföy Yönetimi AŞ. Logo Ventures II Girişim Sermayesi Yönetim Fonu. USD 8,470 thousand was paid in total, including USD 1,200 thousand paid in 2025 (2024: USD 1,600 thousand). (**) Payer Yazılım Sanayi ve Ticaret A.Ş. and Figo Ticari Bilgi ve Uygulama Platformu A.Ş., in which the Group owns 10% and 3.02% of shares as of 30 September 2025, respectively, are indexed in accordance with TAS 29. 30 September 2025 31 December 2024 Private sector bonds: Assets at fair value through other comprehensive income (***) - 171,250 (***) Private sector bonds consist of highly liquid financial investments that are easily convertible into cash, do not bear the ri sk of significant value changes. Bonds are denominated in US Dollars. Long-term other financial investments: 30 September 2025 31 December 2024 Long-term other financial investment (****) - 135,806 (****) The Group's joint venture consists of the convertible debt instruments issued by Logo Infosoft, when the relevant amounts are included in equity the ownership ratio of the Group is 89.22% (31 December 2024: 89.22%). The Group has not considered the related investment for trading purposes and has recognized the fair value changes in the other comprehensive income statement in accordance with the accounting policies explained in Note 2.5.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 20 NOTE 6 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD The financial information summary of investment accounted for using the equity method is as follows: Summary of balance sheet Total Soft 30 September 2025 Cash and cash equivalents 407,051 Other current assets 575,507 Other non-current assets 2,235,721 Total assets 3,218,279 Other current liabilities 932,871 Other non-current liabilities 334,180 Total liabilities 1,267,051 Net liabilities 1,951,228 Total Soft 30 September 2025 Revenue 1,523,529 Other income 27,092 Expenses (-) (1,384,518) Net profit for the period 166,103 Group's ownership rate (*) 70.00% Group’s share 143,269 Share of profit of investment under equity method 143,269 (*) 10% of the shares to be sold until 31 December 2025 are held for sale and the remaining 70% are accounted for using the equity method at TL 1,304,150.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 21 NOTE 6 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (cont’d) Summary of balance sheet Logo Infosoft 30 September 2025 31 December 2024 Cash and cash equivalents 3,534 17,213 Other current assets 34,000 43,905 Other non-current assets 34 1,902 Total assets 37,568 63,020 Other current liabilities 11,332 31,897 Other non-current liabilities 319,952 310,455 Total liabilities 331,284 342,352 Net liabilities (293,716) (279,332) Logo Infosoft 30 September 2025 30 September 2024 Income 24,554 17,414 Expenses (-) (75,629) (110,215) Net loss for the period (51,075) (92,801) Group's ownership rate 75.86% 75.93% Group’s share (38,747) (70,460) Unrecognized profit / (losses) - (20,643) Share of losses of investment under equity method (184,880) (49,817) With the decision of Logo Yazılım Board of Directors dated 13 June 2025, it has been decided to carry out all transactions regarding the liquidation process of the joint venture Logo Infosoft Business Technology Private Limited (“Logo Infosoft”). The decision has been made to exit the Indian market, as it is believed that the company Logo Infosoft, a long -term investment, and the product CaptainBiz, which had gained traction, are unlikely to succeed due to the unfavorable conditions in the country. NOTE 7 - BORROWINGS Details of financial borrowings as of 30 September 2025 and 31 December 2024 is as follows: Short-term borrowings: 30 September 2025 31 December 2024 Lease liabilities 9,618 4,108 Credit card payables 1,709 3,601 11,327 7,709 Long-term borrowings: 30 September 2025 31 December 2024 Lease liabilities 7,125 6,692 7,125 6,692
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 22 NOTE 7 – BORROWINGS (cont’d) 30 September 2025 Weighted average TL annual interest rate (%) Original amount equivalent Short-term borrowings: Credit card payables - TL - 1,709 1,709 Lease liabilities - TL 25% - 50% 9,618 9,618 11,327 Long-term borrowings: Lease liabilities - TL 25% - 50% 7,125 7,125 7,125 Total borrowings 18,452 31 December 2024 Weighted average Original amount TL annual interest rate (%) (nominal) equivalent Short-term borrowings: Credit card payables - TL - 2,871 3,601 Lease liabilities - TL 25% - 50% 3,275 4,108 7,709 Long-term borrowings: Lease liabilities - TL 25% - 50% 5,335 6,692 6,692 Total borrowings 14,401 As of 30 September 2025 and 31 December 2024, the redemption schedule of long-term borrowings is as follows: 30 September 2025 31 December 2024 To be paid within 1 - 2 years 17 1,124 To be paid within 2 - 5 years 87 56 To be paid in more than 5 years 7,021 5,512 7,125 6,692 Interest rate and currency risk of the Group are explained in Note 31.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 23 NOTE 8 - TRADE RECEIVABLES AND PAYABLES The details of trade receivables and payables as of 30 September 2025 and 31 December 2024 are as follows: Short-term trade receivables: 30 September 2025 31 December 2024 Buyers 899,879 1,358,825 Credit card receivables 158,698 273,859 Cheques and notes receivable 16,129 27,862 Less: Provision for doubtful receivables (8,613) (8,742) Less: Unearned finance income arising from credit sales (78,055) (144,189) 988,038 1,507,615 As of 30 September 2025, the average turnover of the trade receivables is 81 days (31 December 2024: 73 days). The discount rate applied to the undue receivables is 48.43% (31 December 2024: 53.93%). As of 30 September 2025, TL 70,974 of trade receivables (31 December 2024: TL 64,863) were past due but not impaired. The aging analysis of these trade receivables is as follows: 30 September 2025 31 December 2024 Up to 1 month 44,317 41,033 1 - 3 months 11,277 8,609 More than 3 months 15,380 15,221 70,974 64,863 The movement of provision for doubtful receivables for the periods ended 30 September 2025 and 2024 are as follows: 2025 2024 As of 1 January 8,742 63,300 Provisions recognised during the period 1,726 873 Provisions released (25) (32) Effect related to asset groups classified as held for sale - (339) Foreign currency translation difference - 6,918 Inflation effect (1,830) (16,777) As of 30 September 8,613 53,943 Trade payables to third parties: 30 September 2025 31 December 2024 Trade payables 247,884 324,234 As of 30 September 2025, the average debt payment period is 68 days (31 December 2024: 91 days).
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 24 NOTE 8 - TRADE RECEIVABLES AND PAYABLES (cont’d) The table below shows the maximum exposure of the Group to credit risk as of 30 September 2025 and 31 December 2024: Trade receivables Other receivables 30 September 2025 Other Related party Other Bank and funds Other The maximum of credit risk exposure as of reporting date 988,038 3,643 2,490 638,331 715,865 - Amount of risk covered by guarantees 245 - - - - Net carrying value of not past due not impaired financial assets 917,064 3,643 2,490 638,331 715,865 Net carrying value of past due but not impaired financial assets 70,974 - - - - Amount of risk covered by guarantees - - - - - Net carrying value of impaired assets - - - - - Past due (gross carrying value) 8,613 - - - - Impairment (-) (8,613) - - - - Amount of risk covered by guarantees The guarantees which cover the credit risk include guarantee cheques, mortgages and letter of guarantees.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 25 NOTE 8 - TRADE RECEIVABLES AND PAYABLES (cont’d) Trade receivables Other receivables 31 December 2024 Other Related party Other Bank and funds Other The maximum of credit risk exposure as of reporting date 1,507,615 1,935 354 556,664 1,087,518 - Amount of risk covered by guarantees 444 - - - - Net carrying value of not past due not impaired financial assets 1,442,752 1,935 354 556,664 1,087,518 Net carrying value of past due but not impaired financial assets 64,863 - - - - Amount of risk covered by guarantees - - - - - Net carrying value of impaired assets - - - - - Past due (gross carrying value) 8,742 - - - - Impairment (-) (8,742) - - - - Amount of risk covered by guarantees The guarantees which cover the credit risk include guarantee cheques, mortgages and letter of guarantees.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 26 NOTE 9 – OTHER RECEIVABLES, PAYABLES AND OTHER ASSETS Other short-term receivables from third parties: 30 September 2025 31 December 2024 Income accruals 2,433 283 Deposits and guarantees given 57 71 2,490 354 Other short-term payables to third parties: 30 September 2025 31 December 2024 Other taxes payable 143,328 270,617 Put option liability (*) 54,886 81,006 198,214 351,623 Other long-term payables to third parties: 30 September 2025 31 December 2024 Put option liability (*) 348,309 489,281 Other 615 771 348,924 490,052 (*) The Company has signed an agreement with Avramos Holding, 20% shareholder of its subsidiary Total Soft. Within the framework of the management buy out offer, Avramos Holding will pay a total of EUR 15.1 thousand to the Company until the end of 2027 and increase its shareholding in Total Soft in two stages, from 20% to 30% in 2025 and from 30% to 85% at the end of 2027. For the 15% of Total Soft shares that will remain in the Company as of the end of 2027, Logo has a put option as of 2030. Under t he share sale agreement signed with Avramos Holding, a share sale liability has been recognised (Note 27). Other current assets: 30 September 2025 31 December 2024 Personnel advances 29,568 16,229 Deferred VAT 10,842 7,131 Prepaid taxes 312 12,222 Business advances 76 15 Other 11,892 3,656 52,690 39,253 NOTE 10 - INVENTORIES 30 September 2025 31 December 2024 Raw materials and supplies 24,682 18,043 Trade goods 24 60 Other 52 35 24,758 18,138
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 27 NOTE 11 - PROPERTY, PLANT AND EQUIPMENT 1 January 30 September 2025 Additions Disposals 2025 Cost: Machinery, plant and equipment 193,291 18,528 (9,502) 202,317 Motor vehicles 183,842 4,947 - 188,789 Furniture and fixtures 85,671 427 (2,278) 83,820 Leasehold improvements 538,004 - - 538,004 1,000,808 23,902 (11,780) 1,012,930 Accumulated depreciation: Machinery, plant and equipment 125,027 23,570 (8,834) 139,763 Motor vehicles 64,718 27,409 - 92,127 Furniture and fixtures 83,791 648 (2,278) 82,161 Leasehold improvements 293,361 10,625 - 303,986 566,897 62,252 (11,112) 618,037 Net book value 433,911 394,893 Foreign currency 1 January translation 30 September 2024 Additions Disposals differences 2024 Cost: Machinery, plant and equipment 240,069 23,796 (1,909) (5,952) 256,004 Motor vehicles 210,259 11,489 (5,013) (6,861) 209,874 Furniture and fixtures 87,168 147 (236) (260) 86,819 Leasehold improvements 562,222 340 - (417) 562,145 1,099,718 35,772 (7,158) (13,490) 1,114,842 Accumulated depreciation: Machinery, plant and equipment 151,826 23,392 (1,148) (5,749) 168,321 Motor vehicles 54,505 28,417 (2,047) (3,147) 77,728 Furniture and fixtures 78,919 3,146 (236) 183 82,012 Leasehold improvements 299,745 13,171 - (343) 312,573 584,995 68,126 (3,431) (9,056) 640,634 Net book value 514,723 474,208
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 28 NOTE 12 - INTANGIBLE ASSETS 1 January 30 September 2025 Additions Disposals 2025 Cost: Development costs 5,890,976 574,614 - 6,465,590 Advanced technology 187,856 - - 187,856 Customer relations 216,678 - - 216,678 Non-compete agreement 40,383 - - 40,383 Other intangible assets 222,954 16,956 - 239,910 6,558,847 591,570 - 7,150,417 Accumulated depreciation: Development costs 3,786,639 434,128 - 4,220,767 Advanced technology 183,512 977 - 184,489 Customer relations 181,031 6,150 - 187,181 Non-compete agreement 40,383 - - 40,383 Other intangible assets 182,462 8,748 - 191,210 4,374,027 450,003 4,824,030 Net book value 2,184,820 2,326,387 As of 30 September 2025, additions to development costs amounting to TL 573,439 (30 September 2024: TL 912,740) consist of capitalised personnel costs. TL 495,672 (30 September 2024: TL 421,594) of the current period’s depreciation and amortization expenses has been allocated to research and development expenses, TL 32,781 (30 September 2024: TL 25,479) to marketing expenses and TL 10,014 (30 September 2024: TL 9,082) to general administrative expenses. As explained in Note 27, depreciation and amortisation expenses of Total Soft amounting to TL 184,446 for the period ended September 2024 have been recognised under discontinued operations.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 29 NOTE 12 - INTANGIBLE ASSETS (cont’d) Foreign currency 1 January translation 30 September 2024 Additions Disposals differences 2024 Cost: Development costs 6,648,033 912,740 - (216,443) 7,344,330 Advanced technology 220,331 - - (4,620) 215,711 Customer relations 529,418 - - (43,065) 486,353 Non-compete agreement 40,384 - - - 40,384 Other intangible assets 297,292 22,309 - 1,082 320,683 7,735,458 935,049 - (263,046) 8,407,461 Accumulated amortization: Development costs 3,886,126 525,157 - (69,909) 4,341,374 Advanced technology 208,897 4,368 - (4,307) 208,958 Customer relations 312,622 20,221 - (17,992) 314,851 Non-compete agreement 40,384 - - - 40,384 Other intangible assets 226,622 5,901 - (7,034) 225,489 4,674,651 555,647 - (99,242) 5,131,056 Net book value 3,060,807 3,276,405 NOTE 13 – RIGHT-OF-USE ASSETS 1 January 30 September 2025 Additions Disposals 2025 Cost: Office 28,179 32,460 (7,869) 52,770 28,179 32,460 (7,869) 52,770 Accumulated depreciation: Office 15,670 26,212 (7,363) 34,519 15,670 26,212 (7,363) 34,519 Net book value 12,509 18,251
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 30 NOTE 13 - RIGHT-OF-USE ASSETS (cont’d) Foreign currency 1 January translation 30 September 2024 Additions Disposals differences 2024 Cost: Motor vehicles 46,572 - (40,955) (1,484) 4,133 Office 98,480 10,077 (9,052) (9,826) 89,679 145,052 10,077 (50,007) (11,310) 93,812 Accumulated depreciation: (-) Motor vehicles 46,445 - (40,828) (1,484) 4,133 Office 54,519 16,828 (8,436) (5,512) 57,399 100,964 16,828 (49,264) (6,996) 61,532 Net book value 44,088 32,280 NOTE 14 - GOODWILL 30 September 2025 31 December 2024 Netsis 86,602 86,602 Peoplise 24,524 24,524 Other 32,487 19,811 143,613 130,937 Movement table of goodwill for the periods ended 30 September 2025 and 2024 are as follows: 2025 2024 As of 1 January 130,937 1,384,088 Payments during the period 12,676 - Foreign currency translation differences - (172,480) As of 30 September 143,613 1,211,608 The Group applies impairment test for goodwill every year or in shorter periods in case any triggering event that shows any impairment indicator on goodwill. The recoverable amounts of cash generating units are determined based on fair value less cost of disposal (“FVLCD”).
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 31 NOTE 15 - COMMITMENTS AND CONTINGENT LIABILITIES Guarantees received: 30 September 2025 31 December 2024 Original Original TL Original TL currency amount equivalent amount equivalent Guarantee bonds TL 245 245 444 444 245 245 444 444 As of 30 September 2025 and 31 December 2024, guarantees/pledges/mortgages (“GPM”) given by the Company on behalf of its legal entity are as follows: GPMs given by the Company: 30 September 2025 31 December 2024 EUR USD TL EUR USD TL (nominal) (nominal) A. Total amount of GPM provided by the Company on behalf of itself - 1,854 11,275 - 1,576 13,506 B. Total amount of GPM provided on behalf of the associates accounted under full consolidation method - - - 278,020 - - C. Total amount of GPM provided on behalf of third parties in order to maintain operating activities (to secure third party payables) - - - - - - D. Total amount of other GPM given (i) Total amount of GPM given on behalf of the parent Company - - - - - - (ii) Total amount of GPM provided on behalf of other Group companies which are not in the scope of B and C 223,524 - - - - - (iii) Total amount of GPM provided on behalf of third parties which are not in the scope of C - - - - - - 223,524 1,854 11,275 278,020 1,576 13,506 As of 30 September 2025, the ratio of other CPMs given by the Group to the equity is 6% (31 December 2024: 0%). NOTE 16 - EMPLOYEE BENEFITS Short-term payables for employee benefits: 30 September 2025 31 December 2024 Due to personnel 109,143 4,380 Taxes, funds and social security deductions payables 72,654 63,378 Personnel premiums 28,000 340,375 209,797 408,133
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 32 NOTE 16 - EMPLOYEE BENEFITS (cont’d) Long-term payables for employee benefits: 30 September 2025 31 December 2024 Provision for employment termination benefits 111,107 105,005 Provision for unused vacation 100,567 80,479 211,674 185,484 The movements of provision for unused vacation for the interim periods ended 30 September 2025 and 2024 are as follow: 2025 2024 As of 1 January 80,479 104,093 Increase during the year 41,135 34,396 Effect on asset groups classified as held for sale - 5,346 Foreign currency translation difference - 215 Inflation effect (21,047) (34,842) As of 30 September 100,567 109,208 Under the Turkish Labor Law, the Group is required to pay termination benefits to each employee who has completed one year of service and whose employment is terminated without due cause, or who is called up for military service, dies or retires after comp leting 25 years of service (20 years for women) and achieves the retirement age (58 for women and 60 for men). The amount payable consists of one month’s salary limited to a maximum of TL 53,920 for each year of service (31 December 2024: TL 48,802). Provi sion for employment termination benefits is calculated based on the present value of the Group's obligation to pay in the event of retirement. Employment termination benefit liability is not funded and there is no legal funding requirement. TAS 19 “Employee Benefits” requires actuarial valuation methods to be developed to estimate the Group’s obligation under the defined benefit plans. The following actuarial assumptions are used in the calculation of the total liability. Actuarial gain/(loss ) is accounted under the “Actuarial gain/(loss) calculated within the scope of employee benefits”: 30 September 2025 31 December 2024 Discount rate (%) 3.50 3.50 Probability of voluntary leave (%) 93.85 89.23 The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. Since the Group calculates the reserve for employment termination benefits every six months the maximum amount of TL 53,9 20 which is effective from 1 July 2025 (1 January 202 5: TL 54,435) has been taken into consideration in the calculations.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 33 NOTE 16 - EMPLOYEE BENEFITS (cont’d) The movements of the provision for employment termination benefits for the interim periods ended 30 September 2025 and 2024 are as follows: 2025 2024 As of 1 January 105,005 139,278 Service cost 18,173 33,462 Interest cost 18,184 21,918 Actuarial loss 1,725 3,519 Compensations paid (9,084) (31,745) Inflation effect (22,896) (39,849) As of 30 September 111,107 126,583 NOTE 17 - PREPAID EXPENSES AND LIABILITIES FROM CONTRACTS WITH CUSTOMERS Short-term prepaid expenses: 30 September 2025 31 December 2024 Prepaid expenses 105,362 76,601 105,362 76,601 Long-term prepaid expenses: 30 September 2025 31 December 2024 Advances given 30,645 1,996 30,645 1,996 Current liabilities arising from customer contracts: 30 September 2025 31 December 2024 Liabilities from contracts with customers (*) 2,066,100 2,321,972 Advances received 18,770 14,634 2,084,870 2,336,606 Non-current liabilities arising from customer contracts: 30 September 2025 31 December 2024 Liabilities from contracts with customers (*) 57,180 91,749 57,180 91,749 (*) Represents liabilities arising from customer contracts, LEM sales, SaaS sales, subscription sales, after sales support income, custom software development project sales.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 34 NOTE 17 - PREPAID EXPENSES AND LIABILITIES FROM CONTRACTS WITH CUSTOMERS (cont’d) The details of deferred income as of 30 September 2025 and 31 December 2024 as follows: 30 September 2025 31 December 2024 SaaS income 1,443,937 1,418,372 LEM sales 632,574 941,395 Revenue from continuing projects 35,435 45,781 After-sales services revenue 11,334 8,173 2,123,280 2,413,721 NOTE 18 - EQUITY The Company's authorized and paid -in share capital consists of 95,000,000 (31 December 2024: 95,000,000) shares with a nominal value of Kr 1 each. The shareholding structure of the Company as of 30 September 2025 and 31 December 2024 is as follows: Share Share 30 September 2025 rate (%) 31 December 2024 rate (%) Logo Teknoloji ve Yatırım A.Ş. 33,630 35,40 33,630 35,40 Publicly traded 61,370 64,60 61,370 64,60 95,000 100,00 95,000 100,00 Share capital adjustment differences 1,017,211 1,017,211 Paid-in share capital 1,112,211 1,112,211 The shares representing capital are categorized as group A and B. The privileges granted to group A shares are as follows: half of the board members will be elected from among the candidates nominated by group A shareholders and the Chairman of the Board i s elected from among the board members proposed by Group A shareholders. Adjustment to share capital represents the difference between the historical amounts and the amounts adjusted according to the inflation of cash contributions to share capital. Treasury shares As of 30 September 2025, the amount of treasury shares which is accounted in Group's equity is TL 389,014 (31 December 2024: TL 389,014). Dividend distribution Listed companies distribute dividend in accordance with the Communiqué No. II - 19.1 issued by the CMB which is effective from 1 February 2014. As a dividend distribution policy, as long as the ongoing regulations and its financial resources allow the Company, considering its long-term corporate strategy, investment plans and financing policies, and its profitability and cash position, and provided that it can be met from the profit in the statutory records, intends to distribute up to 55% of the distributable profit calculated in accordance with Capital Market Regulations to its shareholders; dividend distribution may be realized in cash or by capital increase through bonus shares or partly in cash and partly through bonus shares. In the event that the dividend amount is less than 5% of the paid -in capital then such amount will not be distributed and will be retained within the company.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 35 NOTE 18 – EQUITY (cont’d) Dividend distribution (cont’d) Dividend advance payments can be made in accordance with Turkish Commercial Code and CMB regulations provided that General Assembly authorizes the Board of Directors to pay dividend advance, limited to the related year, to shareholders in accordance with the Articles of Association. The Group aims to complete the dividend payment before the last working day of the year in which dividend distribution decision is made in the General Assembly and starts the payment latest at the end of the accounting period when the General Assembly meet ing is held. The General Assembly or Board of Directors, if authorized by the General Assembly, can decide to distribute dividend in instalments in line with CMB regulations. 30 September 2025 Inflation-adjusted amounts in the financial statements prepared in accordance with Law No. 6762 and other legislation Inflation adjusted amounts in the financial statements prepared in accordance with TAS/TFRS Difference monitored in retained earnings Share Capital Adjustment Differences 1,346,549 1,017,211 329,338 Restricted Reserves Appropriated from Profit 458,268 322,692 135,576 NOTE 19 - EXPENSES BY NATURE As of 30 September 2025 and 2024, expenses are disclosed by function and the details of the expenses are summarized in Note 21 and Note 22. NOTE 20 - REVENUE AND COST OF SALES 1 January- 1 July - 1 January - 1 July - Revenue: 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Sales income 2,123,505 717,767 2,201,269 711,499 SaaS service income 1,683,822 604,142 1,218,846 437,615 Service income 196,664 64,720 197,196 47,203 Sales returns (24,910) (6,285) (23,129) (9,070) Sales discounts (17,333) (5,720) (24,414) (6,403) Net sales income 3,961,748 1,374,624 3,569,768 1,180,844 Cost of sales (133,383) (51,399) (116,182) (36,343) Gross profit 3,828,365 1,323,225 3,453,586 1,144,501 1 January- 1 July - 1 January - 1 July - Cost of sales: 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Cost of transfer of financial rights 95,308 38,136 78,157 26,269 Cost of trade goods sold 31,800 12,594 26,644 8,098 Service cost 6,275 669 11,381 1,976 Cost of sales 133,383 51,399 116,182 36,343
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 36 NOTE 21 - RESEARCH AND DEVELOPMENT EXPENSES, MARKETING EXPENSES AND GENERAL ADMINISTRATIVE EXPENSES Research and 1 January- 1 July - 1 January - 1 July - development expenses: 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Personnel expenses 641,183 210,741 572,510 196,597 Depreciation and amortization 495,672 170,616 421,594 147,680 Outsourced benefits and services 73,504 26,023 70,438 22,697 Consultancy expenses 40,930 24,572 36,245 12,260 Motor vehicle expenses 18,304 6,482 24,747 8,516 Travel expenses 3,233 1,288 3,806 1,188 Other 100,713 29,632 107,679 37,153 1,373,539 469,354 1,237,019 426,091 Marketing, sales and 1 January- 1 July - 1 January - 1 July - distribution expenses: 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Advertising and sales expenses 464,327 156,171 379,896 119,429 Personnel expenses 442,965 160,968 383,098 128,302 Outsourced benefits and services 51,764 21,710 7,795 3,084 Depreciation and amortization 32,781 10,605 25,479 9,359 Motor vehicle expenses 18,316 6,464 21,335 7,434 Consultancy expenses 4,357 2,847 6,330 1,167 Travel expenses 4,077 1,382 4,163 1,210 Other 33,452 12,921 23,261 7,414 1,052,039 373,068 851,357 277,399 General administrative 1 January- 1 July - 1 January - 1 July - expenses: 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Personnel expenses 254,864 84,975 237,446 79,570 Consultancy expenses 49,453 22,248 43,150 15,369 Motor vehicle expenses 12,329 4,446 13,304 4,484 Depreciation and amortization 10,014 3,910 9,082 2,801 Outsourced benefits and services 6,313 2,207 5,524 1,636 Travel expenses 946 219 1,336 134 Other 12,890 4,068 13,089 4,561 346,809 122,073 322,931 108,555
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 37 NOTE 22 - OTHER OPERATING INCOME AND EXPENSES 1 January- 1 July - 1 January - 1 July - Other operating income 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Rediscount income 59,390 (18,151) 41,353 4,802 Foreign exchange income (*) 6,619 1,434 17,066 3,496 Overdue interest income 5,791 1,903 469 469 Other 2,631 (212) 12,996 625 74,431 (15,026) 71,884 9,392 1 January- 1 July - 1 January - 1 July - Other operating expenses 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Rediscount expenses 13,634 2,445 41,928 1,259 Foreign exchange losses (*) 7,491 2,115 9,133 1,387 Provision expenses 1,732 1,044 876 803 Other 17,336 5,192 12,168 3,505 40,193 10,796 64,105 6,954 (*) Arising from the foreign exchange differences of trade receivables and payables. NOTE 23 - INCOME AND EXPENSES FROM INVESTING ACTIVITIES 1 January- 1 July - 1 January - 1 July - 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Sale of subsidiary shares 742,361 (10,640) - - Gain on sale of securities 106,647 40,122 144,019 43,025 849,008 29,482 144,019 43,025 NOTE 24 - FINANCE INCOME 1 January- 1 July - 1 January - 1 July - 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Foreign exchange gains 9,352 3,078 186,942 31,699 Interest income 2,371 647 11,922 473 Dividend income 303 2 - - 12,026 3,727 198,864 32,172
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 38 NOTE 25 - FINANCE EXPENSES 1 January- 1 July - 1 January - 1 July - 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Interest expenses (*) 161,603 60,409 347,143 107,116 Interest cost of employment termination benefits 18,184 6,092 21,918 7,185 Interest expense from leases 9,119 2,087 3,887 1,120 Credit card commissions 6,407 2,276 4,643 1,793 Foreign exchange losses 1,429 640 15,778 6,906 Other financial expenses 12,283 491 973 870 209,025 71,995 394,342 124,990 (*) Interest expense amounting to TL 161,603 (30 September 2024: TL 347,143) consists of bank charges arising from early collection of credit card receivables. NOTE 26 - EXPLANATIONS ON NET MONETARY POSITION GAINS/ (LOSSES) Non-Monetary Items 30 September 2025 Statement of financial position items (248,004) Prepaid expenses 37,042 Assets classified as held for sale 13,960 Financial investments, subsidiaries 19,934 Property, plant and equipment 90,709 Right-of-use assets 5,905 Intangible assets 489,463 Goodwill 27,591 Deferred tax assets 16,371 Liabilities arising from customer contracts (649,071) Paid-in capital (212,211) Adjustment to share capital (13,279) Foreign currency translation differences 224,208 Restricted reserves appropriated from profit (65,423) Reserves related to treasury shares (78,869) Treasury Shares 78,869 Put option valuation fund related to non- controlling interests 136,345 Gains from investments in equity instruments (94,071) Other comprehensive income and expenses not to be reclassified to profit or loss 13,974 Prior years’ profit (289,451) Statement of profit or loss items (20,618) Revenue (83,161) Cost of sales 9,029 Research and development expenses 65,887 Marketing expenses 75,927 General administrative expenses 26,059 Other operating income/expenses (8,104) Other income/expenses from investing activities (134,081) Share of profit/loss of investments accounted through equity method 12,835 Finance income/expenses 14,991 Net monetary position gains (losses) (268,622)
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 39 NOTE 27 – NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS a) Non-current Assets Held for Sale: In accordance with the agreement signed with Avramos Holding, the 20% shareholder of the Group’s subsidiary Total Soft, within the framework of the management buy‑out offer for the purchase of a part of Total Soft’s share capital, Avramos Holding will increase its shareholding in Total Soft in two stages: from 20% to 30% in 2025 and from 30% to 85% by the end of 2027, by making a total payment of EUR 15.1 thousand to the Group until the end of 2027. The Company has left the board of directors of Total Soft as of 1 February 2025. Until 31 December 2025, 10% of the shares to be sold is accounted for as held for sale and the remaining 70% is accounted for using the equity method. For the 15% Total Soft shareholding that will remain in Logo as of the end of 2027, Logo has a put option as of 2030. 31 December 2024 Cash and cash equivalents 460,398 Trade receivables 352,363 Inventories 411 Prepaid expenses 13,524 Other current assets 58,344 Financial investments 6 Property, plant and equipment 16,066 Right-of-use assets 13,358 Intangible assets 2,034,295 Other non-current assets 17,200 Short-term borrowings (11,693) Short-term portion of long-term borrowings (125,599) Trade payables (79,138) Payables for employee benefits (152,220) Other payables (343,839) Liabilities arising from customer contracts (121,376) Current income tax liability (5,712) Other current liabilities (16,777) Long-term borrowings (315,324) Long-term provisions (30,280) Deferred tax liability (55,871) Net assets 1,708,136
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 40 NOTE 27 – NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (cont’d) b) Discontinued Operations: The details of the Group's profit from discontinued operations for the period 30 September 2024 for the associate to be accounted for by equity method in accordance with the agreement made with Avramos Holding within the framework of the management buy out offer are as follows: 30 September 2024 Revenue 1,292,977 Cost of sales (-) (768,557) General administrative expenses (-) (182,630) Marketing expenses (-) (50,526) Research and development expenses (-) (197,057) Other operating income 4,504 Other operating expenses (-) (753) Finance income 1,719 Finance expenses (-) (30,020) Tax expense for the period (-) (9,842) Deferred tax income/(expense) 8,884 Net profit/(loss) from discontinued operations 68,699 NOTE 28 - TAX ASSETS AND LIABILITIES 30 September 2025 30 September 2024 Deferred tax income (62,644) (54,160) Current period tax expense (62,644) (54,160) Deferred taxes The Group recognizes deferred tax assets and liabilities based upon the temporary differences between financial statements as reported in accordance with TFRS and its tax base of statutory financial statements. These differences usually result in the recog nition of revenue and expense items in different periods for TFRS and statutory tax purposes. Turkish Tax Legislation does not permit a parent company to file a consolidated tax return. Therefore, tax assets and liabilities, as reflected in the consolidated financial statements, have been calculated on a separate-entity basis. The tax rate used in the calculation of deferred tax assets and liabilities is 25%. The composition of cumulative temporary differences and the related deferred income tax assets and liabilities in respect of items for which deferred tax has been provided as of 30 September 2025 and 31 December 2024 using the enacted tax rates, is as follows:
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 41 NOTE 28 - TAX ASSETS AND LIABILITIES (cont’d) Deferred tax (cont’d) Total temporary Deferred tax differences assets/(liabilities) 30 September 31 December 30 September 31 December 2025 2024 2025 2024 Deferred tax assets: Provisions for expenses 28,011 208,381 7,003 52,096 Provision for employment termination benefits 74,830 77,879 18,707 19,471 Deferred income 46,769 53,954 11,692 13,489 Deferred tax on valuation of other financial assets - 3,300 - 825 Vacation provision 38,773 32,175 9,693 8,044 Finance income unaccrued 76,957 142,173 19,239 35,543 Provision for doubtful receivables 3,293 2,349 823 587 268,633 520,211 67,157 130,055 Deferred tax liabilities: Difference between the tax base and carrying value of property, plant and equipment and intangible assets (65,830) (52,537) (16,457) (13,135) Assets classified as held for sale and investments valued using the equity method (98,030) (105,451) (12,254) (13,181) Prepaid expenses (13,669) (4,631) (3,417) (1,158) Gains from investments in equity-based financial instruments (87,777) (88,127) (21,944) (22,032) (265,306) (250,746) (54,072) (49,506) Deferred income tax assets /(liabilities), net 13,085 80,549 The analysis of deferred tax assets and liabilities are as follows: Deferred tax assets 1 January - 1 January – 30 September 2025 31 December 2024 To be recovered less than 12 months 38,757 102,540 To be recovered more than 12 months 28,400 27,515 67,157 130,055 Deferred tax liabilities To be recovered less than 12 months (3,417) (1,158) To be recovered more than 12 months (50,655) (48,348) (54,072) (49,506) Deferred income tax assets/(liabilities), net 13,085 80,549
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 42 NOTE 28 - TAX ASSETS AND LIABILITIES (cont’d) Deferred tax (cont’d) Movement of deferred taxes asset/(liabilities) for the periods is as follows: 2025 2024 1 January 80,548 47,975 Charged to statements of profit or loss (62,644) (54,160) Charged to other comprehensive income (4,819) (2,432) Effect on asset groups classified as held for sale - 8,884 Foreign currency translation difference - (7,644) 30 September 13,085 (7,377) Corporate Tax Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, provisions for taxes, as reflected in these consolidated financial statements, have been calculated on a separate-entity basis. Turkish Corporate Tax Law has been amended by Law No. 5520 dated 13 June 2006. Most of the articles of this new Law No. 5520 have come into force effective from 1 January 2006. Accordingly, the corporate tax rate for the 2025 interim period is 25% (31 December 2024: 25%). On 15 July 2023, the 50% real estate sales income exemption was removed with the amendment to the Corporate Tax Law. However, for real estate acquired before the effective date of the amendment, this exemption will continue to apply at a rate of 25%. Corporation tax rate is applicable on the total income of the companies after adjusting for certain disallowable expenses, income tax exemptions (participation exemption etc.) and income tax deductions (for example research and development expenses deduction). No further tax is payable unless the profit is distributed. Dividends paid to non -resident corporations, which have a place of business in Türkiye, or resident corporations are not subject to withholding tax. Otherwise, dividends paid are subject to withholding tax at the rate of 15%. An increase in capital via iss uing bonus shares is not considered as a profit distribution and thus does not incur withholding tax. Corporations are required to pay advance corporation tax quarterly at the rate of 25% on their corporate income. Advance tax is payable by the 17th of the second month following each calendar. Advance tax paid by corporations is credited against the annual corporation tax liability. The balance of the advance tax paid may be refunded or used to set off against other liabilities to the government. In Türkiye, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax returns within the 30th of the fourth month following the close of the financial year to which they relate. Tax returns are open for 5 years from the beginning of the year that follows the date of filing during which time the tax authorities have the right to audit tax returns, and the related accounting records on which they are based and may issue re-assessments based on their findings. Under the Turkish taxation system, tax losses can be carried forward to offset against future taxable income for up to 5 years. Tax losses cannot be carried back to offset profits from previous periods. There are many exemptions in Corporate Tax Law regarding corporations. Those related to the Group are explained below:
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 43 NOTE 28 - TAX ASSETS AND LIABILITIES (cont’d) Corporate Tax (cont’d) Within the scope of the Temporary Article added to the Technology Development Zones Law No. 4691 with Article 44 of the Law No. 5035, the income and corporate taxpayers operating in the technology development zones are exempted from income and corporate ta x for earnings, which are exclusively from the software and R&D activities in this zone, until 31 December 2028. The investment allowance, which has been applied for many years and calculated as 40% of property plant and equipment acquisitions exceeding a certain amount, was annulled with the Law No. 5479 dated 30 March 2006. However, in accordance with the temporary Law No. 69 added to the Income Tax Law, corporate and income taxpayers can offset the investment allowance amounts present as of 31 December 2005, which could not be offset against taxable income in 2005 and: a) In accordance with the investment certificates prepared for applications made before 24 April 2003, investments to be made after 1 January 2006 in the scope of the certificate regarding the investments that began in the scope of additional articles 1, 2, 3, 4, 5 and 6 of Income Tax Law No: 193 before it was repealed with the Law No: 4842 dated 9 April 2003 and, b) Investment allowance amounts to be calculated in accordance with legislation effective at 31 December 2005 related to investments which exhibit a technical and economic and integrity and which were started prior to 1 January 2006 in the scope of Income Tax Law 193 repealed 19th article, only against the income related to the years 2006, 2007 and 2008, in accordance with the legislation at 31 December 2005 (including provisions related to tax rates). The Constitutional Court abolished the provisions of Temporary Article 69 of the Income Tax Law regarding the time limitation to the investment allowance in its meeting held on 15 October 2009 and published the minutes of the relevant meeting on its website in October 2009. The decision of the Constitutional Court on the cancellation of the time limitation for investment allowance for the years 2006, 2007 and 2008 came into force with its promulgation in the Official Gazette, dated 8 January 2010, and there by the time limitation regarding investment allowance was removed. NOTE 29 - EARNINGS PER SHARE As of 30 September 2025, earnings for the period amounting to TL 14.60 full (30 September 2024: TL 4.52 full) per thousand shares with a nominal value of Kr 1. 1 January - 1 January – 30 September 2025 30 September 2024 Net income attributable to equity holders of the parent 1,369,348 424,437 Average number of shares available during the year 9,379,900 9,400,102 Earnings/(loss) per share 14.60 4.52 1 January - 1 January – 30 September 2025 30 September 2024 Parent Company's share from continuing operations 1,369,348 369,478 Average number of shares available during the year 9,379,900 9,400,102 Earnings/(loss) per share from continuing operations/ (full TL) 14.60 3.94
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 44 NOTE 29 - EARNINGS PER SHARE (cont’d) 1 January - 1 January – 30 September 2025 30 September 2024 Parent Company's share from discontinued operations - 54,959 Average number of shares available during the year - 9,400,102 Earnings/(loss) per share from discontinued operations/ (full TL) - 0.58 NOTE 30 - RELATED PARTY DISCLOSURES a) Receivables and payables from related parties as of 30 September 2025 and 31 December 2024: Other receivables from related parties: 30 September 2025 31 December 2024 Logo Infosoft 3,643 1,935 3,643 1,935 b) Sales, services given to related parties and finance income from related parties during the periods ended 30 September 2025 and 30 September 2024: Services given to 1 January- 1 July - 1 January- 1 July - related parties 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Berqnet Siber Güvenlik Teknolojileri A.Ş. 5,661 1,691 9,400 1,731 Logo Teknoloji ve Yatırım A.Ş 241 77 178 64 Tekbulut Teknoloji 6 2 251 245 5,908 1,770 9,829 2,040 c) Services and other transactions received from related parties during the periods ended 30 September 2025 and 30 September 2024: Services received from 1 January- 1 July - 1 January- 1 July - related parties 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Logo Teknoloji ve Yatırım A.Ş 3 - - - Logo Infosoft - - 257 - 3 - 257 - d) Remuneration of the key management: 1 January- 1 July - 1 January- 1 July - 30 September 30 September 30 September 30 September 2025 2025 2024 2024 Remuneration of the key management 131,034 44,622 130,189 43,627 131,034 44,622 130,189 43,627
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 45 NOTE 31 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS 31.1 Financial risk management Credit risk Ownership of financial assets involves the risk that counterparties may be unable to meet the terms of their agreements. These risks are managed by limiting aggregate risk from any individual counterparty (excluding related parties) and obtaining sufficient collateral, where necessary. Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying business the Company aims at maintaining flexibility in funding by keeping committed credit lines available. The Company management monitors the liquidity reserve movements according to the estimated cash flows. The Company management holds adequate cash and credit commitment that will meet the need cash for recent future in order to manage its liquidity risk. In this context, the Company has credit limit from banks amounting to over TL 100,000 that can be utilized whenever needed. 30 September 2025 Total contractual cash Less than Between Between Longer than Non-derivative Carrying outflows 3 months 3-12 months 1-5 years 5 years financial liabilities value (I+II+III+IV) (I) (II) (III) (IV) Borrowings 18,452 18,452 9,750 1,578 104 7,020 Trade payables - Trade payables to third parties 247,884 247,884 247,884 - - - Payables related to employee benefits 209,797 209,797 209,797 - - - Other payables - Other payables to third parties 547,138 547,138 144,584 53,630 348,924 - Total liabilities 1,023,271 1,023,271 612,015 55,208 349,028 7,020
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 46 NOTE 31 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d) 31.1 Financial risk management (cont’d) 31 December 2024 Total contractual cash Less than Between Between Longer than Non-derivative Carrying outflows 3 months 3-12 months 1-5 years 5 years financial liabilities value (I+II+III+IV) (I) (II) (III) (IV) Borrowings 14,401 14,401 4,709 3,000 1,180 5,512 Trade payables - Trade payables to third parties 324,234 324,234 324,234 - - - Payables related to employee benefits 408,133 408,133 408,133 - - - Other payables - Other payables to third parties 841,675 841,675 270,617 81,006 490,052 - Total liabilities 1,588,443 1,588,443 1,007,693 84,006 491,232 5,512 Interest rate risk The Group management uses its interest-bearing assets in short-term investment instruments within the framework of the principle of managing with natural precautions by balancing the maturities of interest -sensitive assets and liabilities. The Group’s interest rate sensitive financial instruments are as follows: 30 September 2025 31 December 2024 Financial instruments with fixed interest rate Financial assets - Financial assets at amortized cost 43,437 6,910 - Financial assets with fair value reflected to other comprehensive income - 283,863 Financial liabilities 18,452 14,401 Put option valuation fund for non-controlling interests 403,195 570,287 - Share sale obligation 403,195 570,287 Financial instruments with floating interest rates Financial assets - Financial assets with fair value reflected to profit/loss 248,359 237,683 Financial assets designated as fair value through profit or loss consists of fixed and floating interest rate bank deposits denominated in TL and foreign currencies which maturities less than three months and liquid funds. Since the interest expense of the floating rate loans during the year is not significant, sensitivity analysis of interest rate change has not been presented. Funding risk The ability to fund the existing and prospective debt requirements is managed as necessary by obtaining adequate committed funding lines from high quality lenders.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 47 NOTE 31 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d) 31.1 Financial risk management (cont’d) Foreign currency risk The Group is exposed to exchange rate risk arising from exchange rate changes due to the translation of foreign currency denominated debts or creditors into Turkish Lira. The foreign currency risk is followed by analyzing the foreign exchange position. Foreign exchange rates used to translate the Group’s assets and liabilities denominated in foreign currencies into TL as of 30 September 2025 and 31 December 2024 are as follows: 30 September 2025 31 December 2024 Assets USD 41.5068 35.2803 EUR 48.7512 36.7362 Liabilities USD 41.5816 35.3438 EUR 48.8390 36.8024 The Group is mainly exposed to foreign currency risk in USD and EUR.
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 48 NOTE 31 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d) Foreign Currency Position as of 30 September 2025 TL equivalent USD EUR Other 1. Trade receivables 25,894 624 - - 2a. Monetary financial assets (cash and bank accounts included) 102,381 2,424 36 21 2b. Non-monetary financial assets - - - - 3. Other - - - - 4. Current assets (1+2+3) 128,275 3,048 36 21 5. Trade receivables - - - - 6a. Monetary financial assets - - - - 6b. Non-monetary financial assets - - - - 7. Other - - - - 8. Non-current assets (5+6+7) - - - - 9. Total assets (4+8) 128,275 3,048 36 21 10. Trade payables (27,318) (647) (8) (60) 11. Financial liabilities - - - 12a. Other monetary liabilities - - - - 12b. Other non-monetary liabilities - - - - 13. Current liabilities (10+11+12) (27,318) (647) (8) (60) 14. Trade payables - - - - 15. Financial liabilities - - - - 16a. Other monetary liabilities - - - - 16b. Other non-monetary liabilities - - - - 17. Non-current liabilities (14+15+16) - - - - 18. Total liabilities (13+17) (27,318) (647) (8) (60) 19. Net asset/liability position of off-balance sheet derivative financial instruments (19a-19b) - - - - 19a. Off-balance sheet foreign currency derivative financial assets - - - - 19b. Off-balance sheet foreign currency derivative financial liabilities - - - - 20. Net foreign assets/(liability) position (9-18+19) 100,957 2,401 28 (39) 21. Net foreign currency asset/(liability) position of monetary items (=1+2a+3+5+6a-10-11-12a-14-15-16a) 100,957 2,401 28 (39) 22. Fair value of derivative instruments used in foreign currency hedge - - - - 23. Export 32,738 738 - - 24. Import - - - -
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 49 NOTE 31 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d ) Foreign Currency Position as of 31 December 2024 TL equivalent USD EUR Other 1. Trade receivables 38,817 869 7 - 2a. Monetary financial assets (cash and bank accounts included) 129,729 2,874 55 17 2b. Non-monetary financial assets - - - - 3. Other - - - - 4. Current assets (1+2+3) 168,546 3,743 62 17 5. Trade receivables - - - - 6a. Monetary financial assets 171,526 3,876 - - 6b. Non-monetary financial assets - - - - 7. Other - - - - 8. Non-current assets (5+6+7) 171,526 3,876 - - 9. Total assets (4+8) 340,072 7,619 62 17 10. Trade payables (10,689) (232) (9) - 11. Financial liabilities - - - 12a. Other monetary liabilities - - - - 12b. Other non-monetary liabilities - - - - 13. Current liabilities (10+11+12) (10,689) (232) (9) - 14. Trade payables - - - - 15. Financial liabilities - - - - 16a. Other monetary liabilities - - - - 16b. Other non-monetary liabilities - - - - 17. Non-current liabilities (14+15+16) - - - - 18. Total liabilities (13+17) (10,689) (232) (9) - 19. Net asset/liability position of off-balance sheet derivative financial instruments (19a-19b) - - - - 19a. Off-balance sheet foreign currency derivative financial assets - - - - 19b. Off-balance sheet foreign currency derivative financial liabilities - - - - 20. Net foreign assets/(liability) position (9-18+19) 329,383 7,387 53 17 21. Net foreign currency asset/(liability) position of monetary items (=1+2a+3+5+6a-10-11-12a-14-15-16a) 329,383 7,387 53 17 22. Fair value of derivative instruments used in foreign currency hedge - - - - 23. Export 70,478 1,450 - - 24. Import - - - -
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 50 NOTE 31 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d ) The following table shows the TL equivalents of Group’s sensitivity to a 10% change in USD and EUR 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the po ssible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items at the end of the period and presents effect of 10% change in foreign currency rates. The positive amount indicates incr ease in profit/loss before tax or equity. Foreign currency sensitivity 30 September 2025 Profit/(Loss) Equity Foreign currency Foreign currency Foreign currency Foreign currency appreciation depreciation appreciation depreciation Change of USD against TL by 10% 1- USD net assets/liabilities 9,962 (9,962) - - 2- Hedged portion from USD risks (-) - - - - 3- USD net effect (1+2) 9,962 (9,962) - - Change of EUR against TL by 10% 4- EUR net assets/liabilities 136 (136) - - 5- Hedged portion from EUR risks (-) - - - - 6- EUR net effect (4+5) 136 (136) - - 31 December 2024 Profit/(Loss) Equity Foreign currency Foreign currency Foreign currency Foreign currency appreciation depreciation appreciation depreciation Change of USD against TL by 10% 1- USD net assets/liabilities 32,691 (32,691) - - 2- Hedged portion from USD risks (-) - - - - 3- USD net effect (1+2) 32,691 (32,691) - - Change of EUR against TL by 10% 4- EUR net assets/liabilities 248 (248) - - 5- Hedged portion from EUR risks (-) - - - - 6- EUR net effect (4+5) 248 (248) - -
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 51 NOTE 31 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont’d ) Capital risk management The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure. the Group may pay out dividends. return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including borrowings, accounts payable and due to related parties, as shown in the consolidated statement of financial position) less cash and cash equivalents. Total capital is calculated as equity, as shown in the consolidated statement of financial position, plus net debt. 30 September 2025 31 December 2024 Total payables 18,452 14,401 Less: Cash and cash equivalents (*) (720,983) (717,250) Net debt (702,531) (702,849) Total equity 3,527,303 3,298,055 Total capital 2,824,772 2,595,206 Debt/equity ratio (25%) (27%) (*) Cash and cash equivalents, deposits with a maturity of more than 3 months, stocks and private sector bonds included in short -term financial investments are included in liquid assets. Fair value is the amount at which financial instruments could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists. The estimated fair values of financial instruments have been determined by the Company, using available market information and appropriate valuation methodologies. However, judgement is necessarily required to interpret market data to estimate the fair val ue. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Group could realize in a current market exchange. The following methods and assumptions were used to estimate the fair value of the financial instruments for which it is practicable to estimate fair value:
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 52 NOTE 32 - FINANCIAL INSTRUMENTS Monetary assets The fair value of the foreign currency denominated amounts, which are translated by using the exchange rates prevailing at period-end, is considered to approximate their fair value. The fair values of certain financial assets carried at cost including cash and due from banks, deposits with banks and other financial assets are considered to approximate their respective carrying values due to their short -term nature. The trade receivables are carried at amortized cost using the effective yield method less provision for doubtful receivables and hence are considered to approximate their fair values. Monetary liabilities The fair value of long -term financial liabilities and other monetary liabilities is considered to approximate their respective carrying values as they have floating interests. It is estimated that the carrying values of trade and other payables reflect the ir fair values due to their short -term nature. The Group classifies the fair value measurement of each class of financial instruments according to the source, using the three -level hierarchy, as follows: Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted) Level 2: Other valuation techniques include direct or indirect observable inputs Level 3: Valuation techniques does not contain observable market inputs Fair value hierarchy table as of 30 September 2025 is as follows: Financial assets at fair value through profit or loss in the statement of financial position Level 1 Level 2 Level 3 Financial investments (*) 82,652 - 633,213 (*) Note 5
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 53 NOTE 32 - FINANCIAL INSTRUMENTS (cont’d) Categories and fair values of financial instruments 30 September 2025 Financial assets at Financial amortized liabilities at Carrying cost FVTPL FVTOCI amortized cost value Note Financial assets Cash and cash equivalents 638,331 - - - 638,331 4 Financial assets - 82,652 633,213 - 715,865 5 Assets classified as held for sale 139,916 - - - 139,916 27 Trade receivables 988,038 - - - 988,038 8 Receivables from related parties 3,643 - - - 3,643 30 Financial liabilities Financial payables - - - 18,452 18,452 7 Other payables - - - 143,943 143,943 9 Share sale obligation - - - 403,195 403,195 9 Trade payables - - - 247,884 247,884 8
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless otherwise stated.) 54 NOTE 32 - FINANCIAL INSTRUMENTS (cont’d) Categories and fair values of financial instruments (cont’d) 31 December 2024 Financial Financial assets at liabilities at amortized amortized Liabilities at Carrying cost FVTPL FVTOCI cost fair value value Note Financial assets Cash and cash equivalents 556,664 - - - - 556,664 4 Financial assets - 47,973 1,039,545 - - 1,087,518 5 Assets classified as held for sale 2,965,965 - - - - 2,965,965 27 Trade receivables 1,507,615 - - - - 1,507,615 8 Receivables from related parties 1,935 - - - - 1,935 30 Financial liabilities Financial payables - - - 14,401 - 14,401 7 Liabilities related to disposal groups classified as held for sale - - - 1,257,829 - 1,257,829 27 Other payables - - - 271,388 - 271,388 9 Put option liabilities - - - - 570,287 570,287 9 Trade payables - - - 324,234 - 324,234 8
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LOGO YAZILIM SANAYİ VE TİCARET A.Ş. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS 1 JANUARY – 30 SEPTEMBER 2025 AND 2024 (Amounts expressed in TL based on the purchasing power of one thousand Turkish Liras (“TL”) as of 30 September 2025, unless o therwise stated.) 55 NOTE 33 - DISCLOSURES ON THE STATEMENT OF CASH FLOWS Bank loans and credit cards Leases Total 1 January 2025 3,600 10,801 14,401 Classified as held for sale (1,892) - (1,892) Increase in lease liabilities (TFRS 16) - 32,460 32,460 Cash outflows from lease liabilities (TFRS 16) - (26,517) (26,517) 30 September 2025 1,708 16,744 18,452 Cash and cash equivalents (-) (638,331) Net debt (619,879) Bank loans and credit cards Leases Total 1 January 2024 568,354 64,559 632,913 Cash inflows 10,633 - 10,633 Cash outflows (553,954) - (553,954) Foreign currency translation difference (21,433) (16,826) (38,259) Increase in lease liabilities (TFRS 16) - 10,633 10,633 Cash outflows from lease liabilities (TFRS 16) - (47,565) (47,565) 31 December 2024 3,600 10,801 14,401 Cash and cash equivalents (-) (556,664) Net debt (542,263) NOTE 34 - EVENTS AFTER THE REPORTING PERIOD None.