Corporate Update

Narf Industries plc ("NARF", the "Company", or the "Group") (LSE: NARF) (OTCQB: NFIN.F), the cybersecurity group specializing in high-end threat intelligence and critical infrastructure security, is pleased to provide an update with regards to its corporate activities.

OVERVIEW

Financials

• Year Over Year revenue growth of 130%
• Up from $2.5 million in CY22 to $6.0 million in CY23
• EBITDA positive, improving from CY22 loss of $2.6 million
• Ending cash and short-term receivables $1.4 million, up from $1.2 million prior year

Appointments

• Nick Davis as COO
• Neil Warrender as CFO
• Albert Hawk as a Non-executive Director
• Haysmacintyre LLP as auditor

Other Matters

• Change of fiscal year end
• Board member and auditor resignation

John Herring, Executive Chairman of Narf said: "We've successfully worked the past nine months to complete the transition from a private and entrepreneurial led venture to the main operating business of an LSE listed company. Our financial results exceeded our market guidance, and we enter CY24 with strong business momentum and upside potential. My thanks to the entire NARF team.

"The appointments made here acknowledge those who did the heavy lifting during the transition and those joining who set a solid foundation for our corporate governance and financial accountability in this exciting new phase.

Prior to co-founding NARF, our COO Nick Davis led the Threat Analysis and Network Forensics Department at the Navy Cyber Defense Operations Command where he managed and coordinated a team of over a hundred employees and contractors responsible for the defense of the Navy's global IT infrastructure.

Our CFO Neil Warrender brings multi-decade experience as a UK qualified chartered accountant, a non-executive director and company secretary for main market LSE listed companies.

We are pleased to have Mr. Albert "Bud" Hawk join our Board. He leads a globally diversified and strategic advisory US firm with funds under management and transactions exceeding $1 billion and has extensive board and leadership experience in publicly traded and private equity businesses.

We are also pleased to welcome Haysmacintyre LLP as our new auditors. Throughout the selection process its team showed a profound understanding of our high-tech business and the sensitivity of customer information, a priority in our criteria for a trusted auditing partner."

Steve Bassi, CEO of Narf said: "I would like to thank John for stepping in the past year to help me drive this transition. It enabled me and the team to stay laser focused on meeting our customer mission and research needs and delivering on these aggressive growth objectives. Importantly, we are leveraging these non-dilutive funds to fuel next-gen products as we move to expand into commercial markets."

OTHER MATTERS

Change of Accounting Period

The Company has changed its Accounting Period from the calendar year to a fiscal year ending on 31 March. This avoids the peak period when auditors prioritize larger accounts and ensures we have access to high-quality resources for an efficient and thorough audit process.

Resignations

Rory Heier resigns from the Board concurrent with this announcement. The Board wishes to thank Rory for his work as a founding board member as he was instrumental in the initial listing of the Company, the acquisition of the Narf Group in 2022, as well as his support during this transition period.

PKF Littlejohn LLP resigned as auditors and advised there are no circumstances connected with its resignation which it considers should be brought to the attention of the members or creditors of the Company.

Directors

The following directors held office during the period:

Steven Bassi Chief Executive Officer

John Herring Executive Chairman

Rory Heier Non-Executive Director (resigned 25 January 2024)

Going Concern

The Directors' assessment of going concern is detailed in Note 2.

Principal Risks and Uncertainties

The principal risks and uncertainties affecting the business activities of the Group remain those detailed in the consolidated report and accounts 2022, a copy of which is available on the Company website at https://narfgroup.com/investor-relations/corporate-documents. The Board considers that these remain a current reflection of the risks and uncertainties facing the business for the remaining three months of the extended financial year.

By order of the Board

Steve Bassi

Chief Executive

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Other comprehensive income

Items that may be reclassified subsequently to profit or loss:

Notes to the CONSOLIDATED Financial Statements

interim results to 31 DECEMBER 2023

Organisation and Trading Activities

The principal activity of Narf Industries plc (the "Company'') together with its operating subsidiaries (together, the "Group") is high-end threat intelligence. Its strategy is focussed on building a group capable of offering cybersecurity solutions in the US and beyond. The Company is domiciled in the United Kingdom and incorporated and registered in England and Wales as a public limited company. The Company's registered office is 5 Fleet Place, London EC4M 7RD. The Company's registered number is 11701224.

Summary of Significant Accounting Policies

The principal accounting policies adopted and applied in the preparation of these interim Group Financial statements are set out below.

These have been consistently applied to all the periods presented unless otherwise stated:

Basis of accounting

These interim financial statements of Narf Industries plc (the "Group") have been prepared in accordance with UK adopted international accounting standards ("UK-adopted IAS") applied in accordance with the provisions of the Companies Act 2006.

The interim financial statements have been prepared under the historical cost convention on the basis of the accounting policies as set out in the Group's audited annual financial statements and are presented in US Dollars the presentational and functional currency of the Group. The Group has applied IAS 34 in the preparation of these interim financial statements.

The interim financial statements have been prepared to reflect the acquisition of Narf Industries LLC and Narf Industries PR LLC via a reverse takeover on 15 March 2022, which resulted in the Company becoming the ultimate holding company of the Group. The prior year interim numbers have been restated to reflect the treatment as a reverse takeover whereas previously the numbers had been reported under the acquisition method.

This announcement was approved and authorised by the Board of directors on 24 January 2024. Copies of this interim report can be found on the Company's website at https://narfgroup.com/investor-relations/corporate-documents.

These condensed interim financial statements for the twelve months ended 31 December 2023 are unaudited and do not constitute fully prepared statutory accounts. The comparative figures for the year ended 31 December 2022 are extracted from the 2022 consolidated financial statements of the Company. The independent auditor's report on the 2022 financial statements disclaimed opinion due to the inability to gain sufficient and appropriate audit evidence in respect of a number of areas and accordingly those numbers are stated as being unaudited.

Going concern

Any consideration of the foreseeable future involves making a judgement, at a particular point in time, about future events which are inherently uncertain. The Directors have prepared cash flow forecasts covering the period to 31 December 2024 and those forecasts indicate that the Group will have sufficient cash resources to meet all foreseeable liabilities through to a period which is at least twelve months after the issue of these condensed interim financial statements.

Accordingly, the Directors have a reasonable expectation that the Group will be able to achieve the above in order to meet any future obligations and thus to continue operating for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the interim financial statements.

Basis of consolidation

The Financial Statements consolidate the financial information of the Company and companies controlled by the Group (its subsidiaries) at each reporting date following the acquisition in March 2022.

Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity, has the rights to variable returns from its involvement with the investee and has the ability to use its power to affect its returns. The results of subsidiaries acquired or sold are included in the financial information from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the results of acquired subsidiaries to bring their accounting policies into line with those used by the Group. All intra-Group transactions, balances, income and expenses are eliminated on consolidation. The financial statements of all Group companies are adjusted, where necessary, to ensure the use of consistent accounting policies.

The Financial Statements consolidate the financial information of the Company and companies controlled by the Group (its subsidiaries) at each reporting date. For commentary on how the acquisitions of Narf Industries US LLC and Narf Industries PR LLC, which falls outside the scope of IFRS 3, was accounted for, see note 8 to the consolidated financial statements for the year to 31 December 2022.

EARNINGS per Share

The basic earnings per share is based on the loss for the period divided by the weighted average number of shares in issue during the period. The weighted average number of ordinary shares for the Company the year ended 31 December 2023 assumes that all shares have been included in the computation based on the weighted average number of days since issue. Since the Group has made a loss in the current and the prior period, the warrants in issue are not dilutive.

Post period end events

There were no significant events subsequent to the balance sheet date which have any bearing on these interim financial statements.