{"url_path":"/sec/turb/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 MAJOR SHAREHOLDERS AND RELATED PARTY","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1963439/0001213900-26-057672-index.html","accession_number":"0001213900-26-057672","cik":"0001963439","ticker":"TURB","issuer_name":"Turbo Energy, S.A.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1963439/0001213900-26-057672-index.html","primary_entity_key":"0001963439","primary_entity_name":"Turbo Energy, S.A."},"word_count":1147,"has_tables":true,"body_markdown":"**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY\nTRANSACTIONS**\n\n \n\n**A. Major Shareholders**\n\n \n\nPlease refer to Item 6 “Directors,\nSenior Management and Employees-E. Share Ownership.”\n\n \n\n**B. Related Party Transactions**\n\n \n\nIn addition to the compensation\narrangements discussed under “Executive Compensation” above, the following includes a description of those transactions with\nrelated parties to which we are a party and which we are required to disclose pursuant to the disclosure rules of the SEC. Specifically,\nthe following includes summaries of transactions or agreements, during our last two fiscal years, to which we have been a party, in which\nthe amount involved in the transaction exceeded $120,000, and in which any of our directors, executive officers or beneficial owners\nof more than 5% of our capital stock, affiliates of our directors, executive officers and holders of more than 5% of our voting securities,\nor any member of the immediate family of any of the foregoing persons, had or will have a direct or indirect material interest, other\nthan equity and other compensation, termination, change in control and other similar arrangements, which are described under “Executive\nCompensation” and “Principal Shareholders.”\n\n \n\n**Transactions with Related Parties**\n\n \n\nOur related party transactions\nduring the fiscal years ended December 31, 2025, 2024 and 2023 include sales of products or services made to or purchases of products\nor services from affiliated group companies that are under common control and to associates of such group companies. These transactions\ninclude income accrued from the commercial activities of our Company. The purchases relate to merchandise that we sell in its normal\ncourse of commercial operations.\n\n \n\nUmbrella Global Energy,\nas the holding company of the group, assumes all structural costs such as those related to the financial team, executives, human resources,\nlicenses, legal, tax, labor, marketing, and other generic structural costs. A margin of 15% is applied to these costs and the resulting\namount is distributed to the four most significant companies in the group based on their estimated revenue in the monthly management\nfees.\n\n \n\nDuring the years ended December\n31, 2025, 2024 and 2023, the Company incurred management fees to Umbrella Global Energy, S.A, of €350,372 (approximately $411,197),\n€840,000, and €995,435, respectively.\n\n \n\nNo compensation has been\npaid to the executives under Crocodile Investment SLU. The Company expects to continue with the same allocation structure in the future.\n\n \n\n**The Amount due from (to)\nas of December 31, 2025 are summarized as follows:**\n\n \n\nDue from related parties:\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nCredits pending collection \n     -  \n€    -  \n€35,118  \n€35,118 \n\nLong-term investment \n -  \n -  \n 291,810  \n 291,810 \n\nTrade receivables \n -  \n -  \n 10,116,959  \n 10,116,959 \n\nTotal \n -  \n€-  \n€10,443,887  \n€10,443,887 \n\n \n\n73\n\n \n\n \n\nDue to related parties\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nCredits pending to pay \n    -  \n€(1,020,746) \n€(822) \n€(1,021,568)\n\nCredits pending collection \n -  \n -  \n (1,840,395) \n (1,840,395)\n\nTrade payable \n -  \n (67,154) \n    \n (67,154)\n\nTotal \n -  \n€(1,087,900) \n (1,841,217) \n€(2,929,117)\n\n \n\nDuring the year ended December\n31, 2025, a total amount of €81,320 has been paid for interest.\n\n \n\n**The Amount due from (to) as of December 31,\n2024 are summarized as follows:**\n\n  \n\nDue from related parties:\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nCredits pending collection \n€-  \n€     -  \n€16,908  \n€16,908 \n\nLong-term investment \n -  \n -  \n 112,725  \n 112,725 \n\nTrade receivables \n 250  \n -  \n 116,337  \n 116,587 \n\nTotal \n€250  \n€-  \n€245,970  \n€246,220 \n\n \n\nDue to related parties:\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nCredits pending to pay \n€   -  \n€(1,900,000) \n€(784) \n€(1,900,784)\n\nCredits pending collection \n -  \n 164,380  \n -  \n 164,380 \n\nTrade payable \n -  \n (2,196) \n (53,445) \n (55,641)\n\nTotal \n€-  \n€(1,737,816) \n€(54,229) \n€(1,792,045)\n\n \n\nAll\nthe amounts due to and from related parties are unsecured, non-interest bearing and due on demand, except for the loan agreement from\nUmbrella Global Energy, S.A. of €3,800,000. This five-year loan was formalized and signed on June 30, 2023, with a market interest\nrate of 6.25% per year, payable bi-annually. During the year ended December 31, 2025 and 2024, Turbo Energy received proceed from the\nloan of €180,000 and €0, respectively. During the year ended December 31, 2025 and 2024, Turbo Energy repaid €903,733\nand €1,300,000, respectively. Also, during the year ended December 31, 2024, €600,000 of the loan was converted to partner\ncontribution. As of December 31, 2025 and December 31, 2024, the loan amount was €1,176,267 and €1,900,000, respectively\n\n \n\nDuring the year ended December 31, 2024, a total\namount of €183,777 has been paid for interest.\n\n \n\n74\n\n \n\n \n\n**The Amount due from (to) as of December 31,\n2023 are summarized as follows:**\n\n \n\nDue from related parties: \n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nCredits pending collection \n€      -  \n€     -  \n€175,771  \n€175,771 \n\nLong-term investment \n -  \n -  \n 2,550  \n 2,550 \n\nTrade receivables \n -  \n -  \n 1,422,952  \n 1,422,952 \n\nTotal \n€-  \n€-  \n€1,601,273  \n€1,601,273 \n\n \n\nDue to related parties:\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nCredits pending to pay \n€     -  \n€(3,800,000) \n€-  \n€(3,800,000)\n\nCredits pending collection \n -  \n 72,444  \n (784) \n 71,660 \n\nTrade payable \n -  \n (119,610) \n -  \n (119,610)\n\nTotal \n€-  \n€(3,847,166) \n€(784) \n€(3,847,950)\n\n \n\nDuring the year ended December 31, 2023, a total\namount of € 118,750 has been paid for interest.\n\n \n\nTransactions with related parties during the year ended\nDecember 31, 2025, were summarized as follows:\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nSales \n€          \n€  \n€10,524,288  \n€10,524,288 \n\n*Services received \n    \n (582,440) \n    \n (582,440)\n\nTotal \n €  \n€(582,440) \n€10,524,288  \n€9,941,848 \n\n \n\nTransactions with related\nparties during the year ended December 31, 2024, were summarized as follows:\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nSales \n€742  \n€-  \n€305,909  \n€306,651 \n\n*Services received \n -  \n (1,133,890) \n -  \n (1,133,890)\n\nTotal \n€742  \n€(1,133,890) \n€305,909  \n€(827,239)\n\n \n\n75\n\n \n\n \n\nTransactions with related\nparties during the year ended December 31, 2023 were summarized as follows:\n\n \n\n  \nUltimate  \nSenior  \nOther group  \n  \n\n  \npartner  \npartner  \ncompanies  \nTotal \n\nSales \n€28,419  \n€2,418  \n€1,349,710  \n€1,380,547 \n\n*Services received \n -  \n (1,139,518) \n -  \n (1,139,518)\n\nPurchases \n -  \n -  \n (1,201,244) \n (1,201,244)\n\nTotal \n€28,419  \n€(1,137,000) \n€148,466  \n€(960,215)\n\n \n\nThese transactions have\nbeen measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.\n\n \n\nExcept as set forth above,\nthere has not been, nor is there currently proposed, any transaction in which the Company or its subsidiary are or were a participant\nand the amount involved exceeds the lesser of $120,000 or 1% of the total assets as of December 31, 2025, and in which any of our directors,\nexecutive officers, holders of more than 5% of our ordinary shares or any immediate family member of any of the foregoing had or will\nhave a direct or indirect material interest, other than compensation arrangements, which include equity and other compensation, termination,\nchange in control, consulting and other arrangements, which are described under “*Executive Compensation*” above.\n\n \n\n**Review, Approval and Ratification of Related\nParty Transactions**\n\n \n\nWe have adopted formal policies\nand procedures for the review, approval or ratification of transactions, such as those described above, with our executive officer(s),\ndirector(s) and significant shareholders.\n\n \n\n**Employment and Indemnification Agreements**\n\n \n\nSee “*Management-Employment\nand Indemnification Agreements*.”\n\n \n\n**Compensation of Directors and Officers**\n\n \n\nSee “*Management-Compensation\nof Directors and Officers*.”\n\n \n\n**C. Interests of Experts and Counsel**\n\n \n\nNot applicable.\n\n \n\n76"}