REVENUE AND DEFERRED REVENUE

3 Months Ended

Mar. 31, 2026

Notes and other explanatory information [abstract]

NOTE 9 – REVENUE AND DEFERRED REVENUE

SCHEDULE OF REVENUE FROM SOURCES

	March 31, 2026		March 31, 2025
Software development	$	156,973	$	140,283
Sensera devices and capsules		1,309		-
Software license		38,824		36,618
Software supports		26,588		14,395
Cloud hosting		14,646		10,569
Others		949		827
Revenue	$	239,289	$	202,692

FEMTO TECHNOLOGIES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2026

(Expressed in Canadian dollars)

(Unaudited)

NOTE 9 – REVENUE AND DEFERRED REVENUE (continued)

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

SCHEDULE OF REVENUE UNDER TIMING

	March 31, 2026		March 31, 2025
Revenue recognized over time	$	200,465	$	166,074
Revenue recognized at a point of time		38,824		36,618
Revenue	$	239,289	$	202,692

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

SCHEDULE OF DEFERRED REVENUE

	March 31, 2026			December 31, 2025
Deferred revenue, beginning	$	145,404		$	140,088
Customer payments received attributable to contract liabilities for unearned revenue		19,122			182,653
Revenue recognized from fulfilling contract liabilities		(55,500	)		(177,337	)
Deferred revenue, ending	$	109,026		$	145,404

The Company derives significant revenues from one customer, which exceeds 10% of total revenues. Revenues earned from that customer were 77% of total revenues for the period ended March 31, 2026 (Three months ended March 31, 2025 – 67%)