Sales were also affected by the fire that occurred at one of the plant's facilities on July 4, 2025, resulting in a partial shutdown of operations, reduced production capacity, and the loss of a portion of finished goods inventory.

We draw attention to Note (3-8) to the financial statements, which indicates that the company incurred accumulated losses as of December 31, 2025, amounting to approximately SAR 22 million, representing 66% of the company's share capital. The company also recorded negative net cash flows from operating activities amounting to SAR 26.8 million, as detailed in Note (26) to the financial statements. This is primarily due to the impact of the fire incident that affected the company's assets and inventory on July 4, 2025. These circumstances, along with other matters as explained in Note (3-8), indicate the existence of a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. The company's management has conducted a going concern assessment, which includes several material assumptions, including the continuation of contracts with the main customer, the collection of a portion of insurance claims, and the generation of positive operating cash flows in the future. Based on this assessment, Management has concluded that preparing the financial statements on a going concern basis is appropriate, and our opinion on this matter has not been modified.