A New Financial Year.
A Different Company.

To our shareholders,

The previous financial year was one of design, discovery, and research and development. We built AirCare from concept to a working, certified sensor. We collected over 22,000 readings from live deployments. We learned, in granular and sometimes uncomfortable detail, about the pain points and problems our clients are enduring in ventilation compliance. And through that process, we proved something fundamental: the demand for continuous ductwork monitoring is not theoretical. It is urgent, it is large, and it is entirely unserved.

But proving the concept was never the destination. This year begins a different chapter. The question we spent Q1 answering was not "does the product work?" We know it does. The question was: how do we build the operational infrastructure to deploy, monitor, and support this at the scale the demand requires?

The answer led to two inflection points that will define AIRO's trajectory from here.

The first inflection point is our transition to a partner-led model.

When we started, the assumption was that AIRO would manage sales, installation, and support internally. That approach would have capped us at 2,000 to 5,000 sensors a year. The demand we encountered during the R&D phase, from enterprise hospitality groups, QSR chains, government estates, and NHS trusts, made it clear that internal capacity would become the bottleneck long before the market did.

So we made a structural decision. We built an ecosystem for our partners to do it. Technology Partners now survey, install, maintain, and manage their portfolios through AIRO's platform. They handle the day-to-day commercial relationships. They drive growth and execution. And they do it on top of AIRO, not instead of it.

This distinction matters, and it is the single most important architectural decision we have made as a company.

When a Technology Partner onboards a new client, the client profile, system architecture, sensor network, and all associated data, including compliance history and verification records, are created within AIRO Core and sit natively on our platform. We own the client profile. We own the data. We own the system of record. The partner facilitates the commercial introduction and the physical installation, but the digital relationship belongs to AIRO.

The subscription layer is also controlled within AIRO, even where billing may be facilitated by partners. This means that if a partner underperforms, exits, or becomes inactive, we are able to reassign that client to another partner, or take the account on directly, without any disruption. The sensors remain live, monitoring continues, and the client experience is unaffected. This gives us a level of continuity and control that is not typical in partner-led models.

What this creates is a highly lean and scalable structure. We are not building out large sales teams, installation teams, or service divisions internally. Instead, partners drive growth and execution, while AIRO owns the system of record and the data layer that underpins everything. Over time, this creates strong platform dependency, as clients rely on AIRO for real-time monitoring, compliance status, and verified cleaning records. It also significantly reduces churn risk, because the relationship is not lost if a partner relationship changes.

At a system level, AIRO Core is designed to run as a continuous operational loop: survey, installation, monitoring, alerting, cleaning, verification. Once deployed, this loop becomes largely autonomous, with the platform coordinating actions across partners, engineers, and clients without requiring direct intervention from AIRO.

The shift from internal delivery to partner-led execution changes our trajectory from 2,000 to 5,000 sensors a year to almost four to five times that volume. It converts fixed cost into variable cost. And it positions AIRO not simply as a software provider, but as the infrastructure layer for ventilation compliance, with partners operating on top of our system.

The second inflection point is our manufacturing partner transition.

During the R&D phase, we worked with an early-stage manufacturing team to develop and produce AirCare. They contributed to the early work, and we are grateful for that contribution. But following a full review of performance, delivery timelines, and future requirements, it became clear that this partner was not viable for production at scale. Their structure, capacity, and delivery approach were not aligned with the speed, precision, and global ambition AIRO now requires. The business has outgrown their capability.

To achieve what we are building, global rollout, regulatory alignment across multiple jurisdictions, high-volume production, we needed a fundamentally different kind of manufacturing partner.

We have chosen to partner with Ophir Manufacturing, led by Joe O'Sullivan. Joe held the positions of Vice President of Consumer Products & Asia Operations at Apple, COO at InFocus, and most recently COO at Intelligent Energy. He built and led operations and supply chain teams across Europe, the US, and Asia. He worked in Cupertino for many years directly under Steve Jobs and latterly Tim Cook. His track record is in taking hardware from prototype to global production scale, which is precisely the challenge AIRO faces now.

The partnership with Ophir enables AIRO to move beyond prototype and early-stage validation into a structured, repeatable production model. We are establishing robust manufacturing processes, reducing cost of goods sold through supply chain optimisation, and ensuring alignment with the regulatory and certification requirements demanded by government, aviation, and critical infrastructure clients. At the volumes we are targeting, traceability, quality assurance, and production governance are not optional. They are prerequisites for every enterprise and public sector contract in our pipeline.

We are in advanced discussions to formalise a broader engagement with Ophir, securing a dedicated team under Joe's leadership to support not only current production but long-term global rollout. This includes strategic oversight of manufacturing, cost efficiencies at scale, and the infrastructure required for high-volume deployment across multiple regions.

Importantly, this relationship extends beyond AirCare. As AIRO builds out its ecosystem, including AirVision and Air Quality wearables, Ophir ensures that every product is designed and scaled with manufacturability, compliance, and global deployment in mind from day one. The strength and pedigree of the Ophir team significantly de-risks this phase of growth and positions AIRO to execute at a level typically reserved for far more mature organisations.

These two decisions, partner-led distribution and professional manufacturing, have a practical consequence that I want to address directly.

Our original plan targeted first subscription revenue in October 2025. These transitions have moved that timeline to July 2026. This is a deliberate trade. A quarter of delay now removes structural constraints that would have limited our ability to scale for years. We are building a platform company, not a hardware startup shipping units from a garage. Getting the manufacturing and distribution architecture right before we turn on revenue is a decision we are confident shareholders will recognise as prudent.

The manufacturing transition requires a production validation cycle before sensors ship at commercial volume. The partner model requires certified Technology Partners to be trained, equipped, and operational. Both are now on track for June deployment, with revenue recognition from July.

In February, we appointed Jack Sidhu as Executive Chairman, effective April 2026. Jack is the founder of Triple Oak Capital and brings over 25 years of financial leadership, including a Managing Director role at Brookfield Asset Management. His appointment strengthens AIRO's governance, investor relations capability, and strategic financial oversight ahead of our Series A process.

Separately, we stood up Spectra, AIRO's dedicated AI engine, with its own language model in January. Spectra transforms raw micron sensor data into predictive intelligence: days-to-breach forecasting, fire risk scoring, seasonal pattern detection, and footfall proxy analysis. It is the layer that turns hardware readings into the kind of insight that insurance companies, enterprise clients, and data acquirers will pay for independently of the sensor itself.

And we materially upgraded our internal operating systems. Google Drive was restructured for investor-grade document hygiene and due diligence readiness. ClickUp was rebuilt as the system of record for execution, with 2026 strategic roadmaps, due dates, and governance cadences embedded across all workstreams. These are not glamorous milestones, but they are the kind of operational discipline that separates companies that scale from companies that stall.

Looking at the numbers:

With the partner model now ready to launch, we are preparing to relaunch sales momentum, converting pilots into long-term subscriptions and scaling deployments. Our revised forecast targets 20,000 sensors for the financial year, a figure that reflects the multiplier effect of the partner-led model against what we could have achieved with internal delivery alone.

A note on funding and runway.

AIRO is raising £1.5M via Convertible Loan Notes to fund 11 months of operations through to Series A readiness. This raise covers payroll, manufacturing transition costs, R&D, partner onboarding infrastructure, and working capital through to the point where revenue, pipeline conversion, and commercial traction position the company for a formal Series A round.

It is worth putting this in context. AIRO was incorporated in October 2024. In eighteen months, we have taken AirCare from concept to a globally patented, EMC-certified, BSRIA-verified sensor with a live paying deployment, a 13,000+ sensor pipeline featuring institutional-grade brands, a certified Technology Partner ecosystem, a dedicated AI engine, and an Executive Chairman from Brookfield. The product is not in development. It is market-ready, commercially validated, and entering scaled deployment. This is not a company asking for patience while it figures out product-market fit. The product works, the market is confirmed, and the raise funds the operational infrastructure required to convert a validated product into a revenue-generating platform.

I want to close with a thought on what kind of company AIRO is becoming.

We are not a sensor company that happens to collect data. We are a data company that happens to use sensors. The sensor is the entry point. The mechanism that gets us physically deployed inside the ductwork of every commercial building we serve. But the value compounds in the platform, in the data, and in the intelligence layer we are building on top of it.

Every sensor deployed deepens a proprietary dataset that no competitor can replicate without matching our installed base. Every partner certified extends our distribution without extending our headcount. Every client onboarded sits natively on AIRO Core, generating data that trains Spectra, improves our predictive models, and strengthens the compliance engine that the entire ecosystem runs on.

The foundations are in place. The regulatory environment is moving in our favour. The pipeline is strong and the brands in it are institutional-grade. The decisions we made in Q1, to transition manufacturing and to commit fully to the partner-led model, were not reactive. They were the result of seeing the scale of the opportunity clearly and building the infrastructure to match it.

We expect to be generating revenue from July. We expect to convert multiple pipeline deals into signed agreements in Q2. And we expect the operational architecture we built this quarter to be the reason AIRO can scale from hundreds of sensors to tens of thousands without breaking.

Thank you for your continued support. It matters, and we do not take it lightly.