Turbo Energy S.A.

Company Overview

Business Model: Turbo Energy, S.A. is a globally recognized pioneer in proprietary solar energy storage technologies and solutions, managed through Artificial Intelligence (AI). The company's core value proposition centers on designing, developing, and distributing equipment and software for the generation, management, and storage of photovoltaic energy. Its primary revenue generation mechanisms include the sale of all-in-one and scalable, modular energy storage systems branded as "SUNBOX" (catering to residential, commercial, industrial, and utility sectors), as well as individual components such as batteries, inverters, and photovoltaic modules. A key differentiator is the AI-optimized Turbo Energy App, which provides intelligent data collection, stored energy management, and predictive analytics. The company is also expanding into an Energy-as-a-Service (EaaS) financing model for commercial and industrial customers.

Market Position: Turbo Energy, S.A. positions itself as an innovator in the solar energy storage market, having introduced its flagship SUNBOX in Q4 2022 as one of the world’s first high-performance, competitively priced, all-in-one home solar energy storage systems, which includes patented electric vehicle (EV) charging capability and AI processes for optimized energy management. The company differentiates itself through integrated all-in-one solutions, reduced assembly time, sophisticated AI-powered software, and brand-agnostic technology for its SUNBOX Industry offering. The global solar energy market was valued at $253.69 billion in 2023, projected to reach $436.36 billion by 2032 (6% CAGR), while the energy storage market is expected to grow from $251.14 billion in 2024 to $379.29 billion by 2029 (8.7% CAGR).

Recent Strategic Developments:

• U.S. Market Entry: Achieved Underwriters Laboratories (UL) 5500 and 9540 certifications for its SUNBOX Home system, enabling a planned launch in the U.S. market in 2025. Initial residential installations are scheduled as part of a beta initiative in California, Florida, Georgia, Louisiana, and Texas. Turbo Energy USA, LLC, a wholly-owned subsidiary, was formed on January 1, 2025, to support this expansion.
• Latin American Expansion & EaaS Model: Expanded into Latin America with the introduction of an Energy-as-a-Service (EaaS) financing program in Chile through its wholly-owned subsidiary, Turbo Energy Solutions S.L.U. This program allows commercial and industrial (C&I) customers to deploy SUNBOX Industry systems without large upfront investments. A 50%-owned subsidiary, Smart Solar Solutions, SPA, was established in Chile on September 6, 2024, for storage solutions and EaaS development. The debut installation of SUNBOX Industry was completed in Temuco, Chile, with 102.4 kWh capacity.
• Product Portfolio Expansion: Launched SUNBOX Home Lite in late February 2025, a version of SUNBOX Home tailored for smaller residential solar energy storage needs (less than 15kh). SUNBOX Industry was introduced to the market in 2024, and SUNBOX Utility, a state-of-the-art solution for the utility sector, is under development with software platform completion and sales expected in 2025.
• Strategic Partnerships: Entered into a strategic alliance with Solar360 in Spain for intelligent solar energy storage system installations (January 2024) and partnered with El Corte Inglés S.A. to offer its GoSolar product (April 2024). Connection Holdings, LLC was engaged as a U.S. marketing partner (October 2024).
• Financing: Secured €2,533,520 in gross proceeds through a 36-month simple debt bond offering with Enerfip, a France-based crowdfunding platform, with tranches closing in October 2024, January 2025, and February 2025.

Geographic Footprint: Turbo Energy, S.A. operates in 17 countries, with its corporate headquarters and assembly center located in Valencia, Spain. Its primary markets are Spain and other European countries (including Germany, France, UK, Greece, Italy, Poland, Portugal, Romania, Czech Republic, Netherlands, Slovenia, and Luxemburg). The company is actively engaged in global market penetration and geographic expansion initiatives, with a concentrated focus on North America (U.S.) and Latin America (Chile).

Cross-Border Operations:

• International Subsidiaries: Turbo Energy Solutions S.L.U. (Spain, wholly-owned), Smart Solar Solutions, SPA (Chile, 50%-owned), and Turbo Energy USA, LLC (U.S., wholly-owned).
• Joint Ventures: Smart Solar Solutions, SPA in Chile is a 50%-owned subsidiary, indicating a joint venture structure.
• Licensing Agreements: Not explicitly detailed in the filing.
• Regulatory Compliance: The company's operations and products comply with Spanish and European Union regulations, including those for Intellectual Property Rights, Data Protection (GDPR), Competition/Antitrust, Information Society Services and Electronic Commerce, and Labor and Employment. Its SUNBOX systems, batteries, and inverters bear the CE marking and comply with relevant EU Directives and Spanish Royal Decrees. UL certifications have been obtained for U.S. market entry.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 5.79% (2024) vs. 8.35% (2023)
• Operating Margin: -41.20% (2024) vs. -20.11% (2023)
• Net Margin: -34.62% (2024) vs. -15.32% (2023)

Investment in Growth:

• R&D Expenditure: €924,745 (9.59% of revenue) in 2024, up from €516,686 (3.93% of revenue) in 2023, primarily for new hardware product lines and IT department expansion (Turbo Energy App, database management solutions).
• Capital Expenditures: €1,053,545 in 2024 (comprising €126,592 for equipment and €926,953 for intangible assets), up from €544,709 in 2023.
• Strategic Investments: Acquisition of IM2 Energía Solar Proyecto 35 S.L.U. for €2,250 (November 8, 2022); establishment of Smart Solar Solutions, SPA (50%-owned subsidiary) in Chile (September 6, 2024); formation of Turbo Energy USA, LLC (wholly-owned subsidiary) in the U.S. (January 1, 2025).

Currency Impact Analysis:

• Foreign exchange impact on revenue and earnings: The company reported a foreign exchange gain of €4,516 in 2024, improving from a loss of (€82,881) in 2023.
• Hedging strategies and effectiveness: Not explicitly detailed, but the company states it is not exposed to significant currency risk.
• Functional currency considerations: The Euro is the company's functional currency. Exposure to foreign currency risk primarily arises from service income or expenses denominated in currencies other than the Euro, mainly US dollars.

Business Segment Analysis

SUNBOX Home

Financial Performance:

• Revenue: €1,855,501 (+130.7% YoY) in 2024, compared to €804,244 in 2023.
• Operating Margin: Not disclosed.
• Key Growth Drivers: Successful execution of sales and marketing initiatives, leading to deeper market penetration in Spain and other European countries.

Product Portfolio:

• All-in-one solar energy storage and management system, scalable up to 40 kW in back-up battery power.
• Managed by the cloud-based, AI-optimized Turbo Energy App.
• SUNBOX EV: Patented electric vehicle charging capability (available for EU homeowners).
• SUNBOX Home Lite: Introduced in late February 2025, designed for homes requiring less than 15kh of solar energy storage.
• SUNBOX Split Phase Series 10.0: An all-in-one back-up solar energy storage solution for split phase installations, modular with energy storage capacity up to 20.4 kWh, to be marketed in the U.S.

Market Dynamics:

• Primarily targets residential solar installations.
• Competitive positioning is driven by its integrated all-in-one design, patented EV charging, and AI-powered energy management software.
• UL 5500 and 9540 certifications obtained for the U.S. market.

Geographic Revenue Distribution:

• Spain & Europe: Primary markets for current sales.
• U.S.: Planned expansion in 2025, with initial beta installations in California, Florida, Georgia, Louisiana, and Texas.

SUNBOX Industry

Financial Performance:

• Revenue: €1,600,004 (+100% YoY) in 2024, as it was introduced to the market in 2024.
• Operating Margin: Not disclosed.
• Key Growth Drivers: Market introduction in 2024, leveraging its highly scalable design and AI energy management platform for commercial and industrial facilities.

Product Portfolio:

• Patent pending, highly scalable energy storage and management system for C&I facilities.
• Scales from 30 kW to 2000 kW in power and 30 kWh to 4000 kWh in storage capacity.
• Utilizes a cloud-based AI energy management platform for optimal energy purchasing and protection from power outages.
• Brand-agnostic technology allows integration into existing facilities.

Market Dynamics:

• Targets commercial and industrial (C&I) facilities.
• Competitive positioning is based on scalability, AI-powered energy management, and flexible integration capabilities.
• Debut installation completed in Temuco, Chile.

Geographic Revenue Distribution:

• Chile: Focus for the new Energy-as-a-Service (EaaS) financing program.
• Europe: Implied market as part of global market penetration initiatives.

SUNBOX Utility

Financial Performance:

• Revenue: €0 in 2024 and 2023, as it is currently in development.
• Operating Margin: Not applicable.
• Key Growth Drivers: Future demand from the utility sector for enhanced grid stability, renewable energy integration, and improved system performance.

Product Portfolio:

• State-of-the-art solar energy storage solution engineered for the utility sector.
• Designed for maximum flexibility and performance in grid-connected and hybrid systems.
• Will operate as a robust, branded Battery Energy Storage System (BESS).
• Will incorporate proprietary Artificial Intelligence Energy Management System (AIEMS) for smaller plants to optimize revenue and operational decisions based on real-time data and market conditions.
• Hardware components have been completed; software platform expected to be completed in 2025 with sales commencing later in 2025.

Market Dynamics:

• Targets the utility sector globally.
• Focus on innovation, AI-driven optimization, and strategic collaboration with leading Power Conversion System (PCS) manufacturers.

Geographic Revenue Distribution:

• Global focus, designed to meet evolving demands of the utility sector worldwide.

Batteries (Individual Sales)

Financial Performance:

• Revenue: €3,078,584 (-53.2% YoY) in 2024, compared to €6,578,530 in 2023.
• Operating Margin: Not disclosed.
• Key Growth Drivers: Historically a core product, but sales declined due to a strategic shift towards integrated SUNBOX systems and external factors affecting the Spanish market.

Product Portfolio:

• Offers a full line of lithium-ion batteries (e.g., Lithium Series 24V 2.24 kWH, Lithium Series 48V 2.4 kWh, Lithium Series 48V 5.1 kWh, HV Lithium Series 48V 2.4 kWh, 48v 3.6 kWh Lithium Series Battery, Lithium Series Slim 48V 5.1 kWh, Lithium Series Dual 48V 5.1 kWh, Lithium Series Slim 48V 2.4 kWh).
• Designed to support self-consumption and/or isolated installations, compatible with various inverters.

Market Dynamics:

• Sales historically concentrated in Spain.
• Decline attributed to a slowdown in solar installations in Spain, lower electricity prices, increased self-consumption through rooftop solar, and grid congestion issues, leading to market saturation.

Geographic Revenue Distribution:

• Spain: Historically the primary market.

Inverters (Individual Sales)

Financial Performance:

• Revenue: €1,817,121 (-42.0% YoY) in 2024, compared to €3,133,825 in 2023.
• Operating Margin: Not disclosed.
• Key Growth Drivers: Essential component for photovoltaic systems, but sales declined due to reduced demand in Spain and the company's strategic shift towards integrated solutions.

Product Portfolio:

• Converts direct current from solar panels into alternating current and regulates battery charging/discharging.
• Product lines include Three-Phase Hybrid Series HV 30.0, Three-Phase OnGrid Series 100.0, Single Phase OnGrid Series 8.0, Hybrid Series 48V 5.0 and 6.0 Inverters, and Three-Phase Hybrid Series Inverter 48V 10.0 and 5.0.
• Features include peak shaving functionality and high efficiency.

Market Dynamics:

• Sales historically concentrated in Spain.
• Decline attributed to external factors impacting demand in Spain.

Geographic Revenue Distribution:

• Spain: Historically the primary market.

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries:
  • Turbo Energy Solutions S.L.U. (Spain): Wholly-owned subsidiary, acquired November 8, 2022, for developing new business in self-consumption of electricity.
  • Smart Solar Solutions, SPA (Chile): 50%-owned subsidiary, established September 6, 2024, for the development of storage solutions and Energy-as-a-Service (EaaS) model products and services.
  • Turbo Energy USA, LLC (Delaware, U.S.): Wholly-owned subsidiary, formed January 1, 2025, to facilitate expansion into the U.S. market.
• Joint Ventures: The 50%-owned Smart Solar Solutions, SPA in Chile operates as a joint venture.
• Licensing Agreements: Not explicitly detailed in the filing.

Cross-Border Trade:

• Export Markets: Products are distributed across Europe (including Germany, France, UK, Greece, Italy, Poland, Portugal, Romania, Czech Republic, Netherlands, Slovenia, Luxemburg), Chile, and Senegal. Planned expansion into the U.S. and other Latin American countries.
• Import Dependencies: Key components such as lithium-ion batteries and inverters are sourced from multiple suppliers in China. Photovoltaic modules and supporting structures are purchased from various market suppliers.
• Transfer Pricing: Umbrella Global Energy, S.A. (parent company) assumes structural costs and charges management fees to Turbo Energy, S.A. with a 13% margin, distributed based on estimated revenue.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: None reported for the years ended December 31, 2024, or 2023.
• Dividend Payments: No dividends declared or paid for the years ended December 31, 2024, or 2023. The last cash dividend paid was €513,336 for the year ended December 31, 2021.
• Dividend Yield: Not applicable for the reported periods.
• Future Capital Return Commitments: The company anticipates investing future earnings in the development and growth of its business, indicating no foreseeable dividend payments.

Balance Sheet Position:

• Cash and Equivalents: €2,384,625 as of December 31, 2024, up from €620,531 as of December 31, 2023.
• Total Debt: €5,272,156 as of December 31, 2024, comprising bank loans of €4,369,949, debt bonds of €865,882, and lease liabilities of €36,325. This compares to total debt of €4,045,964 as of December 31, 2023.
• Net Cash Position: (€2,887,531) net debt as of December 31, 2024, improving from (€3,425,433) net debt as of December 31, 2023.
• Credit Rating: Not disclosed.
• Debt Maturity Profile: Bank loans of €90,756 are due in 2025. Lines of credit mature in 2025. The debt bond has a 36-month maturity from October 24, 2024, with a current portion of €91,411 and a non-current portion of €774,471. Lease liabilities mature with €33,020 in 2025 and €4,000 in 2026.

Cash Flow Generation:

• Operating Cash Flow: €986,949 in 2024, a significant increase from €182,845 in 2023, driven by a €1,937,819 gain from insurance recoveries on inventory (offset by a €2,133,385 impairment loss due to natural disaster), higher stock-based compensation, and higher bad debt expense.
• Free Cash Flow: (€66,596) in 2024, compared to (€361,864) in 2023.
• Cash Conversion Metrics: Not explicitly provided in the filing.

Currency Management:

• Cash holdings by major currencies: Not specified, but the functional currency is Euro.
• Natural hedging through operational diversification: Not explicitly detailed.
• Financial hedging instruments and strategies: Not explicitly detailed.

Operational Excellence

Production & Service Model: Turbo Energy, S.A. employs a co-design approach for its hardware with suppliers, while the conception, design, exterior and structural part manufacture, and assembly of its proprietary SUNBOX systems are completed in Spain. The company subcontracts productive assembly to avoid owning industrial spaces, allowing for flexibility in growth, supplier diversification, and international expansion. Its software, the Turbo Energy App, is designed 100% in-house and programmed by a combination of internal and contracted personnel in Spain. The company's operational philosophy emphasizes adherence to best industry practices and stringent quality and cost control processes, aiming to deliver high-quality, high-performance products and excellent customer service.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Batteries: Sourced from five different suppliers, all located in China. The company does not maintain long-term written contracts but relies on established working conditions and the ability to switch providers.
• Inverters: Imported from two partner suppliers based in China, without long-term written agreements.
• Photovoltaic Modules & Structures: Purchased from various market suppliers.
• SUNBOX Assembly: Currently relies on a single supplier in Spain for the assembly of SUNBOX systems, with efforts underway to certify a second assembler to mitigate supply chain risk.
• Technology Partners: Strategic partnerships with leading Power Conversion System (PCS) manufacturers and technology innovators are planned for the SUNBOX Utility platform.

Facility Network:

• Manufacturing: SUNBOX systems are custom-assembled at a center in Valencia, Spain. The company utilizes a 3PL provider's warehouse in Spain for logistical management of components and finished goods.
• Research & Development: R&D activities, including software design and programming for the Turbo Energy App and new SUNBOX prototypes, are primarily conducted in Spain.
• Distribution: Leverages a 3PL provider in Spain for warehousing and logistics, with a flexible system designed for replication in other countries to support international expansion.
• Corporate Headquarters: Leased office space in Valencia, Spain, with the current lease expiring in June 2025.

Operational Metrics:

• Inventory Management: The company ceased stocking legacy product inventory as of June 2024 due to a pronounced drop in prices and declining demand in the sector, particularly in Spain.
• Disruption Impact: A flash flood in Valencia in October 2024 directly impacted the company's warehousing facility, compromising approximately €2.1 million of legacy product inventory. While €1.9 million of these losses were fully covered by business insurance, the event resulted in delayed customer orders and several weeks of disrupted warehousing operations.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Implied for certain C&I customers, particularly through the new Energy-as-a-Service (EaaS) program in Chile.
• Channel Partners: A robust network of distributors, primarily in Spain, with extensive reach to solar installers and marketers. Strategic alliances include Solar360 for installations in Spain and a partnership with El Corte Inglés S.A. for the GoSolar offering.
• Digital Platforms: The AI-optimized Turbo Energy App serves as a key interface for end-users to monitor and manage energy consumption.
• U.S. Market Partner: Connection Holdings, LLC has been engaged as a strategic marketing partner for the U.S. solar energy market.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: El Corte Inglés S.A., Europe's largest department store group, is a partner for the GoSolar offering.
• Strategic Partnerships: Collaborations with Solar360 in Spain and Connection Holdings, LLC in the U.S. are key to market expansion.
• Customer Concentration: In 2024, the top 10 customers accounted for approximately 44.9% (€4,391,090) of total revenue. Two customers individually comprised greater than 10% of the company's total revenue, representing 12% in aggregate. In 2023, the top 10 customers accounted for 35.9% (€5,004,061) of total revenue, with no single customer exceeding 10%.

Regional Market Penetration:

• Spain: Historically the core market, but experiencing a slowdown in solar installations.
• Europe: Actively increasing market penetration for SUNBOX solutions across various countries.
• U.S.: Initiating market entry in 2025 with UL-certified SUNBOX Home, targeting key states like California, Florida, Georgia, Louisiana, and Texas.
• Latin America: Expanding presence, notably in Chile, with the introduction of the EaaS program and SUNBOX Industry installations.
• Growth Markets: North America and Latin America are strategic focus areas for future growth and expansion.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The global solar energy market is experiencing significant growth, driven by technological advancements, supportive policies, and increasing demand for sustainable energy. The market was valued at $253.69 billion in 2023 and is projected to reach $436.36 billion by 2032, exhibiting a 6% CAGR. The energy storage market is also expanding rapidly, projected to grow from $251.14 billion in 2024 to $379.29 billion by 2029 (8.7% CAGR). Key trends include the EU's net-zero emissions target by 2050, Spain's ambition for 81% renewable energy by 2030, and significant solar capacity additions in the U.S. and Latin America. Challenges include supply chain disruptions, rising interest rates, inflation, and potential trade tariffs (e.g., U.S. on Chinese solar products).

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Sigenergy International S.L.: Turbo Energy, S.A. has filed a lawsuit against Sigenergy International S.L. in Spain for alleged illegal advertising regarding its "SigenStor" product's claim as the "world's first highly integrated 5-in-1 energy storage system," asserting Turbo Energy's patented SUNBOX EV was launched earlier.
• Other Manufacturers, Developers, and Installers: The company faces competition from numerous established and new companies in the global regions it serves, including those with new technology, as well as large utilities. Many competitors possess significantly greater financial, technical, manufacturing, marketing, and sales resources.

Regional Competitive Dynamics: The energy storage market is highly competitive. Turbo Energy, S.A. differentiates itself by offering all-in-one solutions that integrate batteries and inverters, significantly reducing assembly time and technical complexity. Furthermore, few competitors integrate sophisticated software platforms with AI and machine learning algorithms to optimize and automate energy use and management, which is a core strength of the Turbo Energy App and SUNBOX systems.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics: The company faces risks from the evolving solar industry, including uncertainty in consumer and business adoption of solar PV and energy storage systems. Changes in governmental policies, incentives, or regulatory frameworks could negatively impact growth. Cost competitiveness is dependent on the cost of electricity from alternative sources and the company's ability to reduce its own costs. Adverse economic conditions, such as recessionary cycles, higher interest rates, and inflation, could affect consumer spending and demand. Technology Disruption: There is a risk that the company may not successfully develop new products and capabilities in response to evolving customer demand, industry trends, or competitor actions, potentially leading to a loss of competitiveness. Customer Concentration: A significant portion of net revenues is generated from a small number of customers (top 10 customers accounted for 44.9% of 2024 revenue), posing a risk if any major customer experiences declining sales or terminates services. Planned Expansion Risks: Expansion into new markets like North America and Latin America could subject the company to additional business, financial, and competitive risks. Forecasting Demand: Inaccurate demand forecasts can lead to product shortages, shipment delays, or excess product inventory, adversely affecting business and financial condition.

Operational & Execution Risks

Global Supply Chain Vulnerabilities: The company relies on a limited number of suppliers for key components (batteries, inverters from China) and a single supplier for SUNBOX assembly in Spain. Disruptions in supply, inability to source components timely, or significant price increases for raw materials (e.g., lithium-ion phosphate cells) could materially impact operations. Regional Disruptions: Natural disasters (e.g., flash floods in Valencia in October 2024, which damaged €2.1 million of inventory and disrupted operations), public health crises, political crises, or other catastrophic events could negatively affect business. Trade Restrictions: The imposition of import tariffs (e.g., U.S. tariffs on Chinese lithium-ion batteries) or retaliatory trade measures could increase costs, necessitate price increases, or reduce gross margins. Geopolitical conflicts (e.g., Russia-Ukraine) could lead to market disruptions and supply chain interruptions. Product Quality & Liability: Quality problems, malfunctions, defects, or improper installation of solar energy storage products could result in negative publicity, litigation, product recalls, and warranty claims. IT and Data Security: The company's reliance on IT systems, infrastructure, and AI-powered software (Turbo Energy App) makes it vulnerable to cyberattacks, system security risks, data breaches, and human error, potentially causing reputational, legal, and financial damages. Intellectual Property: Failure to adequately protect intellectual property rights (patents, trade secrets) from unauthorized use or infringement by third parties could negatively impact competitive advantages and revenue. Risks also exist regarding AI-generated code and evolving AI regulations. Scaling Operations: Inability to effectively scale business operations, manage future growth, and adapt to new conditions could adversely affect business, operating results, and financial condition.

Financial & Regulatory Risks

Currency & Financial Risks: Exposure to foreign currency risk, primarily US dollars, through service income and expenses. Interest rate risk on lines of credit due to fluctuations in market rates. The company has a history of net losses and may require additional capital or financing, which may not be available on favorable terms. Regulatory & Compliance Risks: Compliance with multi-jurisdictional regulatory frameworks (Spanish, EU, U.S.) for intellectual property, data protection, competition, trade, and product safety. Evolving AI regulations (e.g., EU AI Act) could impose new compliance costs. Increased scrutiny on ESG practices and disclosures could lead to additional costs and reputational harm. Legal Proceedings: The company is currently involved in legal disputes, including a lawsuit against Sigenergy International S.L. for alleged illegal advertising and a claim against SP Berner Plastic Group SL for unpaid invoices.

Geopolitical & External Risks

Country-Specific Risks: Geopolitical instability, such as the ongoing military conflict in Ukraine and events in the Middle East, could negatively affect the global economy, capital markets, and supply chains. Economic risks include general global economic uncertainty, energy costs, and credit availability. Regulatory changes in the solar energy sector by federal or state agencies in the U.S. or foreign jurisdictions could impair the company's ability to compete.

Innovation & Technology Leadership

Research & Development Focus: Turbo Energy, S.A. maintains a strong commitment to R&D, which is integral to its business strategy. The company's R&D efforts are focused on developing high-performance equipment, software, energy services, and identifying untapped market niches. Global R&D Network:

• Spain: The primary hub for R&D, where the Turbo Energy App software is 100% designed and programmed by a team comprising 75% internal personnel and 25% contracted personnel.
• Focus Areas: Significant investments are directed towards developing new product lines at the hardware level (e.g., SUNBOX prototypes) and expanding the IT department for software development and database management solutions. Innovation Pipeline:
• SUNBOX Home Lite: Launched in late February 2025, a tailored solution for smaller residential solar energy storage needs.
• SUNBOX Industry: Introduced in 2024, a patent-pending, highly scalable energy storage and management system for commercial and industrial applications.
• SUNBOX Utility: Currently in development, with the software platform expected to be completed in 2025 and sales commencing later that year. Hardware components are already completed.
• Turbo Energy App Enhancements: Ongoing development to provide more detailed energy consumption analysis, suggest improvements for renewable installations, alert users to maintenance issues, identify alternative energy contracts, monitor energy-efficient appliances, and enable next-level intelligent consumption planning.
• SUNBOX Industry EV: Planned development to offer scalable public electric vehicle charging stations that optimize charging costs and utilize renewable energy.

Intellectual Property Portfolio:

• Patent Strategy: Turbo Energy, S.A. has been granted three patents by the Spanish Patent and Trademark Office (SPTO) and has one patent application pending, all related to innovations in its SUNBOX energy storage solutions, including the SUNBOX EV. The company intends to file additional patent applications as its R&D efforts continue.
• Licensing Programs: Not explicitly detailed in the filing.
• IP Litigation: The company has initiated a lawsuit against Sigenergy International S.L. in Spain, alleging illegal advertising regarding the "world's first" claim for an integrated energy storage system, citing its own earlier launch of the patented SUNBOX EV.

Technology Partnerships: The company plans strategic partnerships with leading Power Conversion System (PCS) manufacturers and technology innovators to deliver fully integrated solutions for the SUNBOX Utility platform.

Leadership & Governance

Executive Leadership Team

International Management Structure: The company's leadership team includes executives with diverse backgrounds and experience relevant to its global operations. Julian Groves was appointed as a Director in January 2025 and serves as a strategic advisor to help establish U.S. sales, logistical, and technical infrastructure.

Board Composition: The Board of Directors consists of eight members, including three independent directors: Daniel Green (Chair of Compensation Committee), Monika Mikac (Chair of Audit Committee and financial expert), and Héctor Dominguis (Chair of Nominating and Corporate Governance Committee). Enrique Selva Bellvis, Chairman of the Board, owns approximately 71.22% of outstanding ordinary shares, making Turbo Energy, S.A. a "controlled company" under Nasdaq rules. This status allows the company to rely on exemptions from certain corporate governance requirements, such as having a majority of independent directors and fully independent compensation and nominating committees.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• Spain: Subject to Spanish Royal Legislative Decree 1/1996 (Intellectual Property Law), Spanish Royal Decree of July 24, 1889 (Civil Code), Spanish Act 24/2015 (Patents), Regulation (EU) 2016/679 (GDPR), Spanish Act 3/2018 (Personal Data Protection), Spanish Act 15/2007 (Antitrust), Spanish Act 3/1991 (Unfair Competition), Spanish Act 1/2019 (Business Secrets), Spanish Act 34/2002 (Information Society Services and Electronic Commerce), and Royal Legislative Decree 2/2015 (Workers’ Statute Law).
• European Union: Adheres to Regulation (EU) 2017/1001 (EU trademark), Directive (EU) 2015/2436 (trademarks), Regulation (EU) 2016/679 (GDPR), Commission Regulation (EU) 2022/720 (Restrictive Practices and Dominant Positions), and Council Regulation (EEC) No 4064/89 (Control of Concentrations).
• Product Regulations: SUNBOX systems, batteries, and inverters comply with EU Directives (2014/30/EU for Electromagnetic Compatibility and 2014/35/EU for Low Voltage) and Spanish Royal Decrees. Batteries meet International Safety Standard IEC 62619 CD and Safe Transport UN 38.3. Inverters comply with UNE EN 50438, IEC 62116, and UNE 206006:2011 IN standards. All products bear the CE marking.
• United States: Obtained Underwriters Laboratories (UL) 5500 and 9540 certifications for its SUNBOX Home system, a prerequisite for U.S. market entry.

Cross-Border Compliance:

• Export Controls: Not explicitly detailed, but the company operates globally and is subject to various trade regulations.
• Sanctions Compliance: Not explicitly detailed.
• Anti-Corruption: Not explicitly detailed, but the company has a Code of Ethics and Business Conduct and an Insider Trading Policy.
• AI Regulation: Acknowledges the emergence of new laws regulating AI, including China's regulations and the EU AI Act (entered into force August 2024, with obligations applying from August 2026), and an increase in AI-related litigation in various jurisdictions.

International Tax Strategy:

• Transfer Pricing: The parent company, Umbrella Global Energy, S.A., charges management fees to Turbo Energy, S.A. for structural costs, applying a 13% margin, based on estimated revenue.
• Tax Treaties: Non-Spanish tax resident holders of ordinary shares may be subject to Spanish Non-Residents Income Tax on dividends and capital gains (currently 19%), unless a reduced rate or exemption applies under a Convention for the Avoidance of Double Taxation (CADT).
• BEPS Compliance: Not explicitly detailed.
• Fiscal Consolidation: Turbo Energy, S.A. is fiscally consolidated with its parent company, Umbrella Global Energy, S.A., for Spanish Corporate Income Tax purposes, allowing the group to be treated as a single taxpayer.

Environmental & Social Impact

Global Sustainability Strategy: Turbo Energy, S.A. is committed to building a sustainable, environmentally conscious business, aligning with global efforts to combat climate change. Its core business of solar energy storage technologies directly contributes to reducing dependence on traditional energy sources and fostering a more sustainable future. Environmental Commitments:

• Climate Strategy: The company's operations support the European Union's legally binding target of achieving net-zero greenhouse gas emissions by 2050 and Spain's ambitious target of generating 81% of its energy from renewable sources by 2030.
• Carbon Neutrality: Not explicitly detailed in the filing.
• Renewable Energy: The company's products and services are centered on harnessing clean, sustainable solar energy. Regional Sustainability Initiatives:
• Spain: Contributes to national renewable energy targets through its solar energy solutions.
• Supply Chain: While not explicitly detailed, the company's commitment to sustainability extends to its supply chain, with a focus on ethical practices. Social Impact by Region:
• Community Investment: Not explicitly detailed in the filing.
• Labor Standards: The company values its employees as its most important asset, aiming to cultivate a positive and inclusive work environment that fosters growth and provides a safe workplace. Human resources programs are designed for talent development, competitive compensation, and employee engagement. None of the company's employees are represented by a labor union.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

• Currency Exposure: Turbo Energy, S.A. is exposed to foreign currency risk primarily through service income or expenses denominated in currencies other than the Euro, with the US dollar being the main source of this risk.
• Functional Currency: The Euro is the company's functional currency.

Hedging Strategies:

• Transaction Hedging: Not explicitly detailed in the filing.
• Translation Hedging: Not explicitly detailed in the filing.
• Economic Hedging: Not explicitly detailed in the filing.
• Overall Approach: The company states that it is not exposed to significant currency risk.