{"url_path":"/sec/turb/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL INFORMATION**","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":919,"has_tables":true,"body_markdown":"**ITEM 8. FINANCIAL INFORMATION**\n\n \n\n**A. Consolidated Statements and Other Financial\nInformation**\n\n \n\n**Financial Statements**\n\n \n\nWe have appended consolidated\nfinancial statements filed as part of this annual report. See Item 18 “Financial Statements.”\n\n \n\n*Legal Proceedings*\n\n \n\nOn March 4, 2024, Industrias\nFotovoltaicas Guimerá Molino SL initiated a claim against Turbo Energy, S.A. in the Court of First Instance No. 1 of Valencia\nfor breach of contract and claim for payment in the amount of €18,071. On April 15, 2024, we responded to the claim, providing evidence\nthat the related conditions of the warranty coverage were not met. Resolution of this claim is pending the court’s review and decision.\n\n \n\nOn November 22, 2024, we\nfiled a lawsuit in the Mercantile Court of Madrid in the Kingdom of Spain against Sigenergy International S.L. in an action for the cessation\nand rectification of illegal advertising relating to its baseless claim that its product marketed as *SigenStor*is the “world’s\nfirst highly integrated 5-in-1 energy storage system.” On June 12, 2023, China-based Sigenergy announced that it was “set\nto astound the world with its all-scenario energy solution, featuring the world’s first highly integrated 5-in-1 energy storage\nsystem,” at the EES Europe industry conference which was held in Munich, Germany that same week. Over the next year, Sigenergy\nfollowed with the implementation of a multi-channel promotional campaign, routinely broadcasting its claim to be the “world’s\nfirst” on YouTube, its social media sites, its website and website blog and at industry trade show and conferences. By way of the\nlawsuit, Turbo Energy is alleging that Sigenergy’s promotional statements were blatantly false and misleading, particularly in\nlight of the fact that Turbo Energy has been marketing its patented *SUNBOX EV* product, a highly integrated, all-in-one energy\nstorage system, since its announced launch on April 22, 2022 and its official debut at the InterSolar Europe industry event held in Europe\non May 11-13, 2022 - more than one year ahead of the introduction of *SigenStor*.\n\n \n\nOn November 24, 2024, Turbo\nEnergy, S.A. and IM2 Energy Solar SLU filed a claim against SP Berner Plastic Group SL (“SBPG”) in the Court of First Instance\nNo. 16 of Valencia, seeking enforcement of various executed contracts and claiming unpaid invoiced amounts totaling €946,668.54.\nIn response, SBPG filed an answer and a counterclaim, seeking contract termination and claiming compensation for alleged delays in the\nexecution of certain solar projects, as well as penalties of €1,500 per day based on the annex to the Aldaya I contract, quantifying\nits counterclaim at €306,000. In view of SBPG not contesting the claims filed by Turbo Energy, and because we believe that there\nis evidence of finalized contractual items that have been invoiced and remain unpaid, we intend to pursue our claim to the full extent\nof the law and defend against the counterclaim.\n\n \n\nOn April 2025, Boustead Securities,\nLLC (“Boustead”) initiated an arbitration proceeding against Turbo Energy, S.L. (“Turbo Energy” or the “Company”)\nbefore the Financial Industry Regulatory Authority (“FINRA”), Case No. 25-01072. The arbitration arises from Boustead’s\nprior role as placement agent and underwriter in connection with the Company’s initial public offering. Boustead’s claims\nseek recovery of approximately $216,000 in cash fees and warrants for more than 96,000 shares of the Company, which Boustead alleges are\ndue pursuant to a right of first refusal provision contained in the parties’ March 7, 2022 Engagement Agreement.\n\n \n\nOn August 7, 2025, Turbo\nEnergy filed its Answer and asserted counterclaims against Boustead, alleging, among other things, breach of contract, negligent misrepresentation,\nand fraud, and seeking damages and other relief. Turbo Energy’s counterclaims arise from disputes concerning the calculation and\npayment of certain expenses and the scope and enforceability of Boustead’s right of first refusal. On August 27, 2025, Boustead\nfiled its response denying all allegations in Turbo’s counterclaims and asserting affirmative defenses.\n\n \n\nOn September 18, 2025, the\nFINRA arbitration panel issued an order denying Boustead’s motion to change the hearing location. The arbitration proceedings remain\nongoing. The Company intends to vigorously pursue its counterclaims and defend against all claims asserted by Boustead. At this stage,\nthe Company cannot predict the outcome of the arbitration or estimate any potential loss or recovery. \n\n \n\nWe may be subject to legal\nproceedings, investigations and claims incidental to the conduct of our business from time to time. Except as disclosed above, we are\ncurrently not party to any material legal or arbitration proceedings, including those relating to bankruptcy, receivership or similar\nproceedings and those involving any third party, which may have, or have had in the recent past, significant effects on our financial\nposition or profitability.\n\n \n\n**Dividend Policy**\n\n \n\nIn all the history of our\nCompany, we only have declared and paid cash dividends on our ordinary shares out of the profit for the year ended December 31, 2021,\nfor a total amount of 513,336 euros. We may also enter into credit agreements or other borrowing arrangements in the future that will\nrestrict our ability to declare or pay cash dividends on our ordinary shares. Any future determination to declare dividends will be made\nat the discretion of our Board of Directors and will depend on our financial condition, operating results, capital requirements, contractual\nrestrictions, general business conditions and other factors that our Board of Directors may deem relevant. See also “*Risk Factors-We\ndo not expect to declare or pay dividends in the foreseeable future*.”\n\n \n\n77\n\n \n\n** **\n\n**B. Significant Changes**\n\n \n\nExcept as disclosed elsewhere\nin this annual report, no significant change has occurred since the date of our consolidated financial statements filed as part of this\nannual report."}