🧾 What This Document Is

This is A2Z Cust2Mate Solutions Corp.'s Form 20-F, their annual report for the fiscal year ended December 31, 2025. Think of it as a comprehensive health check-up for the company that foreign private issuers (like this Canadian company listed on Nasdaq) must file with the SEC. It contains a full year's worth of financial data, business descriptions, and a very long list of risks investors should know about.

🏢 What The Company Does

👉 In simple terms, A2Z Cust2Mate is a technology company with two main businesses. They manufacture precision metal parts for various industries and develop "smart carts" for grocery stores. These smart carts are self-checkout systems on wheels, designed to let customers scan and pay for items as they shop, aiming to make checkout faster and more efficient.

The company is incorporated in British Columbia, Canada, but its operational heart is in Israel, where most of its employees and key customers are located. It's classified as a "foreign private issuer," meaning it follows certain (often less stringent) reporting rules compared to U.S. companies.

💰 Financial Highlights (The Numbers)

The company is not profitable and is burning through cash. Here’s the three-year loss trend:

• 2025 Comprehensive Loss: $39.8 million
• 2024 Comprehensive Loss: $18.5 million
• 2023 Comprehensive Loss: $17.8 million

👉 Key Insight: Losses are accelerating significantly. The company has an accumulated deficit of $138 million as of the end of 2025, meaning it has spent much more than it has earned over its lifetime.

Revenue comes from two segments:

1. Precision Metal Parts: The more established, stable business.
2. Smart Carts: The newer, high-growth focus area. For 2025, 41% of total revenue came from just a few key customers in this segment, showing high dependency.

🚀 Key Moves & Strategy

The company is actively trying to grow its smart cart business and has been raising money to fund it. In 2024 and 2025, it completed multiple registered direct offerings and private placements, selling new shares and warrants to investors. This is a common, but dilutive, way for money-losing companies to fund operations.

There's also a note about a potential discontinued operation—a "share purchase agreement" related to its A2Z MS Advanced Military Solutions Ltd. entity, suggesting a possible sale or spin-off of a division.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Operating in two distinct segments provides some diversification.
• The smart cart technology addresses a real pain point in retail (checkout lines).

⚠️ Major Risks (This section is critical):

• Cash Burn & Future Funding: The company explicitly states it will likely need to raise more capital, which will dilute current shareholders. If it can't, it may have to curtail operations.
• Geopolitical Instability: A significant portion of operations are in Israel. The filing details risks from military conflicts, conscription of employees, and regional instability, which could disrupt business.
• Customer Concentration: Dependence on a few large customers for smart cart revenue is risky. Losing one could materially hurt results.
• Competitive & Technological Change: The tech market moves fast. The company must constantly innovate or risk becoming obsolete.
• Long, Unpredictable Sales Cycle: Selling smart carts to large retailers is complex and slow, making revenue hard to forecast.

📦 Financial Position

The balance sheet reflects a growth-stage company. Key points:

• It holds property and equipment (like manufacturing machines, vehicles, ERP systems).
• It has short-term and long-term borrowings, indicating debt financing.
• The company leases significant office, warehouse, and factory space.
• A large number of warrants and share options are outstanding, which could lead to more share issuance (and dilution) in the future.

🔮 What's Next (Looking Ahead)

The path forward is clear but challenging:

1. Grow the Smart Cart Business: This is the main strategic focus.
2. Manage Cash Burn: The company must balance growth spending with its limited capital.
3. Navigate Geopolitics: Operations must continue despite the volatile environment in Israel.
4. Raise More Capital: The filing strongly implies more fundraising is on the horizon to meet business requirements.

🧠 The Analogy

A2Z Cust2Mate is like a startup building a rocket (the smart cart division) in a shaky workshop (Israel). They're using fuel (cash) they're running low on and need to convince investors to give them more, all while trying to build the rocket faster than it burns fuel, and before the workshop shakes apart.

📇 Key Contacts & People

• Contact Person: Gadi Graus, Chief Executive Officer
• Address: 1600-609 Granville Street, Vancouver, British Columbia V7Y 1C3, Canada
• Phone: (647) 558-5564
• Auditor: Kost Forer Gabbay & Kasierer (a member of EY Global)

🧩 Final Takeaway

A2Z Cust2Mate is a money-losing, cash-burning tech company betting its future on smart shopping carts. Its survival and growth depend on securing more funding and successfully scaling this new business, all while operating from a region of significant geopolitical risk.