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Registered number: 09760015









PARITY TECHNOLOGIES LIMITED









CONSOLIDATED ANNUAL REPORTS AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
PARITY TECHNOLOGIES LIMITED
 
 
COMPANY INFORMATION


Directors
Mr S Littlejohns 
Mr R J Wood 




Registered number
09760015



Registered office
1 Sans Walk

London

England

EC1R 0LT




Independent auditors
Harris and Trotter LLP
Statutory Auditors

101 New Cavendish Street

London

W1W 6XH





 
PARITY TECHNOLOGIES LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 4
Directors' Report
5
Directors' Responsibilities Statement
6
Independent Auditors' Report
7 - 11
Consolidated Profit and Loss Account
12
Consolidated Statement of Comprehensive Income
13
Consolidated Statement of Financial Position
14 - 15
Company Statement of Financial Position
16 - 17
Consolidated Statement of Changes in Equity
18 - 19
Company Statement of Changes in Equity
20 - 21
Consolidated Statement of Cash Flows
22 - 23
Notes to the Financial Statements
24 - 48


 
PARITY TECHNOLOGIES LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The Directors present the Strategic Report for the year ended 31 December 2024.

Company Overview
 
Parity Technologies is a core blockchain infrastructure company with a remote first  team of 150+ professionals, with entities located in Germany, United Kingdom, Portugal, Switzerland and Singapore. Founded by blockchain pioneers, our team includes some of the world's leading blockchain innovators, core engineers, Rust developers and solutions architects.

Key Partnerships
 
The partnership between Parity Technologies and its key client, Web 3.0 Foundation (W3F), remains robust, with a three year Service Level Agreement (SLA) signed in January 2024. Parity continues to play a pivotal role as the primary engineering services firm for the Polkadot blockchain, renowned for its scalability, resilience and interoperability.

Product and Technology Development
 
Polkadot 2.0 sets the foundation for what comes next, following the delivery of the white paper - both in terms of technical progress and overall direction. Polkadot Cloud and the Hub now serve as a clearer way to understand how all of our work - past, present, and future - fits into the bigger picture. They help position Polkadot to be more relevant and accessible to the market and the broader world.
The Coretime marketplace now allows developers to purchase blockspace on-demand and scale up easily when needed, thanks to elastic scaling. We’re also moving beyond enterprise-only use cases by lowering the barriers to entry through the Hub. It offers a unified liquidity layer that supports Solidity smart contracts, all while leveraging Polkadot’s unmatched security, scalability, and interoperability.
Looking ahead, JAM is on the horizon. It marks the next stage of evolution for the Relay Chain, a decentralized, high-performance system that allows developers to build using familiar, non-native coding languages. This opens the door to a wider range of builders and new kinds of applications for the next generation of the internet.

Key performance indicators
 
The continued evolution of the Polkadot ecosystem driven by the rollout of Polkadot Cloud, the Hub, and the Coretime marketplace is aligned with the strategic direction set by the board. These initiatives are making the network more accessible, flexible, and relevant for builders, and have laid the groundwork for long-term growth. Our compensation structure remains competitive, helping us retain high-performing team members and attract top talent to support this next phase.

Key Objectives:
• Strengthen developer and user engagement by offering easier access to Polkadot’s infrastructure, including support for Solidity smart contracts and non-native development languages
• Enhance scalability and flexibility through the Coretime marketplace and elastic scaling to meet real-time application needs
• Lower the barrier to entry via the Polkadot Hub, encouraging broader participation across both technical and non-technical stakeholders
• Ensure security and decentralization remain core priorities, carried forward into upcoming innovations like JAM
We remain confident in our strategy and resource planning to carry this momentum through the next phase of network adoption and innovation.

Page 1

 
PARITY TECHNOLOGIES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Streamlined Energy and Carbon Reporting
 
Parity Technologies’ development of Polkadot upholds the lowest total annualized network carbon emissions for proof-of-stake protocols as reported in the CCRI PoS Benchmark Study 2023, demonstrating our dedication to sustainable practices and environmental responsibility.
In addition, Parity operates primarily with remote workers and maintains a small office space in a FORA facility in the UK, reflecting our commitment to minimising our environmental impact.
Energy Consumption: Our total energy consumption at our UK office, located in a FORA facility, remains minimal due to the nature of our operations, which primarily consist of electricity usage. Considering the frequency of office use and the number of employees utilising the space weekly, it is highly likely that our energy consumption is below 40,000 kWh however, we do not have specific data to support this estimate.
Carbon Emissions: Our remote working model significantly reduces commuting emissions and aligns with our sustainability goals.
Future Plans: We are committed to leveraging remote work to further reduce our carbon footprint. Additionally, we will explore opportunities to enhance energy efficiency and sustainability measures in our limited office operations.

Section 172 Statement
 
The Directors of Parity Technologies are committed to upholding their duties as outlined in Section 172 of the Companies Act 2006. In their decision-making processes, the Directors have considered the following:
• Long-Term Consequences: Strategic decisions, technological developments and partnerships are made with a focus on long-term sustainability and growth.
• Employee Interests: Our employees are our most valuable asset. The Directors prioritise their well-being, offering competitive performance based compensation packages, fostering a supportive work environment, and investing in professional development.
• Company Relationships: Maintaining strong relationships with customers, suppliers, and partners is essential. The 2024 SLA with W3F exemplifies our commitment to long-term partnerships and the success of Polkadot.
• Community and Environment: Parity Technologies is dedicated to minimising its environmental impact and contributing positively to the community. Our initiatives in these areas are detailed in the SECR section.
• High Standards of Conduct: We strive to maintain the highest standards of company conduct, ensuring transparency, ethical practices, and robust governance.
• Fair Treatment of Shareholders: The Directors are dedicated to sustainable long-term value creation for all shareholders, ensuring balanced and equitable decision-making.

Page 2

 
PARITY TECHNOLOGIES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial Performance

Key Financials
Turnover: £40.5m (vs 2023: £58.6m, -30.8%)
Gross profit/(loss): £23.4m (vs 2023: £24.8m, -5.6%)
Operating profit excl Exceptional items: (£11.5m) (vs 2023: (£28.4m), 59.5%)
Overall, the company made an operating loss of £296.7m (2023: loss £26.8m), which included £284.6m of exceptional one-off items (2023: £0m)
The total turnover of Parity has decreased in 2024 by 52.9%  year-over-year, due to less demand for services from the W3F.
The Directors have assessed the group's performance in meeting its objectives against its Key Performance Indicators. Turnover generated from assistance with the building of blockchain infrastructure being a key KPI, was down 52.9% from £56.8m in 2023 to £26.7m in 2024, in line with the group’s decision to reduce headcount in order to concentrate on core development, we remain committed to supporting strategic initiatives across other key verticals within the broader ecosystem. The Directors are happy with the overall performance of the Company given the backdrop of the difficult macro environment and negative sentiment impacting the Blockchain industry and valuations.

Group restructuring

In light of Parity Technologies’ ongoing commitment to developing the Polkadot ecosystem, a strategic evaluation of the corporate structure of the company was undertaken. In November 2022, Parity Technologies Holdings (PTH) was incorporated in a jurisdiction with greater regulatory and economic clarity on digital assets, and in July 2024 PTH was incorporated into the group structure. 

Principal risks and uncertainties
 
Market risk: The primary risk to the group is fluctuation in the market value of its intangible assets. The risk is mitigated through careful asset management, ensuring the group has sufficient cash liquidity.
Other risks:
Technological risk: With any complex technological product, there is risk of failure. Such a failure in the technological underpinnings of our digital assets would present a financial risk. The group does not regard this as a principal risk, except to the extent that it is ultimately a market risk.
Talent risk: The competitive job market within the technology space presents a risk of failing to obtain and retain staff with desired skill sets.

Development and performance

The company will continue its strategy of pursuing technological excellence and innovation, scaling the Polkadot infrastructure for wider adoption.

Future outlook

The Directors see a strong future for Parity Technologies as the appetite for blockchain remains robust, and growth opportunities open up in sectors such as real-world asset tokenization and decentralised physical infrastructure. To this end, Parity's engineers remain focused on continually upgrading the software that secures the Polkadot ecosystem, making it more scalable and more interoperable with the wider Web3 community.

Page 3

 
PARITY TECHNOLOGIES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial Instruments

The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted mainly in euros, with the only foreign currency transactions being covered by suitable currency contracts to minimise exposure to exchange rate volatility. The company does not enter into any formally designated hedging transactions. 

Qualifying Third-Party Indemnity Provisions

The company has put in place qualifying third-party indemnity provisions for the benefit of its Directors. These provisions, which were in force during the financial year and remain in force as of the date of this report, provide protection against certain liabilities incurred by Directors in the execution of their duties. The indemnity provisions are part of the company's commitment to support its Directors and officers, enabling them to perform their roles effectively without undue concern for personal liability.


This report was approved by the board on 11 August 2025 and signed on its behalf.



R Wood
Director

Page 4

 
PARITY TECHNOLOGIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Principal activity

The principal activity of the group continued to be that of assisting with the building of blockchain infrastructure through cryptography, peer-to-peer technology and decentralised consensus architectures.

Results and dividends

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors Insurance

The group and company has put in place qualifying third-party indemnity provisions for the benefit of its Directors. These provisions, which were in force during the financial year and remain in force as of the date of this report, provide protection against certain liabilities incurred by Directors in the execution of their duties. The indemnity provisions are part of the companies commitment to support its Directors and officers, enabling them to perform their roles effectively without undue concern for personal liability.

Directors

The directors who served during the year were:

Mr S Littlejohns  
Mr R J Wood 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsHarris and Trotter LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 11 August 2025 and signed on its behalf.
 





Mr R J Wood
Director

Page 5

 
PARITY TECHNOLOGIES LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

 
PARITY TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED
 

Opinion


We have audited the financial statements of Parity Technologies Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 7

 
PARITY TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 8

 
PARITY TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9

 
PARITY TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
•  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
•  We obtained an understanding of the legal and regulatory framework applicable to the Group and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102 and the Companies Act 2006.
•  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•  Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
•  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
 
Page 10

 
PARITY TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.




Nicholas Newman (Senior Statutory Auditor)
  
for and on behalf of
Harris and Trotter LLP
 
Statutory Auditors
  
101 New Cavendish Street
London
W1W 6XH

11 August 2025
Page 11

 
PARITY TECHNOLOGIES LIMITED
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
40,521
58,564

Cost of sales
  
(17,088)
(33,738)

Gross profit
  
23,433
24,826

Administrative expenses
  
(38,783)
(54,045)

Exceptional administrative expenses
 5 
(281,759)
-

Other operating income
 6 
3,931
1,242

(Loss)/gain on foreign exchange
  
(2,860)
(470)

Operating loss
 7 
(296,038)
(28,447)

Interest payable and similar expenses
 11 
(2,867)
(2,385)

Loss before tax
  
(298,905)
(30,832)

Tax on loss
 12 
3,564
4,002

Loss for the financial year
  
(295,341)
(26,830)

The notes on pages 24 to 48 form part of these financial statements.

Page 12

 
PARITY TECHNOLOGIES LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£000
£000


Loss for the financial year

  

(295,341)
(26,830)

Other comprehensive income for the year
  


Unrealised surplus on revaluation of intangible assets
  
(150,397)
298,221

Currency translation gain/(loss) to retained earnings
  
-
(220)

Corporation tax on chargeable gains relating to crypto currency and digital assets
  
2,877
757

Deferred tax arising on revaluation of intangible assets
  
(111,091)
70,276

Other comprehensive income for the year
  
(258,611)
369,034

Other comprehensive income net of tax
  
(258,611)
369,034

Total comprehensive income for the year
  
(553,952)
342,204


Non-controlling interest
  
-
-

The notes on pages 24 to 48 form part of these financial statements.

Page 13

 
PARITY TECHNOLOGIES LIMITED
REGISTERED NUMBER: 09760015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible Assets
 13 
134,088
666,771

Tangible assets
 14 
924
639

Investments
 15 
214
217

  
135,226
667,627

Current assets
  

Debtors: amounts falling due within one year
 16 
68,668
12,591

Cash at bank and in hand
  
6,395
10,595

  
75,063
23,186

Creditors: amounts falling due within one year
 17 
(12,027)
(44,106)

Net current assets/(liabilities)
  
 
 
63,036
 
 
(20,920)

Total assets less current liabilities
  
198,262
646,707

Provisions for liabilities
  

Deferred tax
  
(19,413)
(131,245)

  
 
 
(19,413)
 
 
(131,245)

Net assets excluding pension asset
  
178,849
515,462

Net assets
  
178,849
515,462


Capital and reserves
  

Called up share capital 
  
-
-

Revaluation reserve
 22 
58,692
379,349

Share-based payment reserve
 22 
-
-

Foreign exchange reserve
 22 
279
(220)

Other reserves
 22 
412
-

Retained Earnings
 22 
119,466
136,333

  
178,849
515,462


Page 14

 
PARITY TECHNOLOGIES LIMITED
REGISTERED NUMBER: 09760015
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 August 2025.




Mr R J Wood
Director

The notes on pages 24 to 48 form part of these financial statements.

Page 15

 
PARITY TECHNOLOGIES LIMITED
REGISTERED NUMBER: 09760015

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible fixed assets
 13 
133,981
666,771

Tangible fixed assets
 14 
177
279

Fixed asset investments
 15 
1,222
1,123

  
135,380
668,173

Current assets
  

Debtors: amounts falling due within one year
 16 
69,052
12,531

Cash at bank and in hand
  
5,992
10,173

  
75,044
22,704

Creditors: amounts falling due within one year
 17 
(16,657)
(47,495)

Net current assets/(liabilities)
  
 
 
58,387
 
 
(24,791)

Total assets less current liabilities
  
193,767
643,382

  

Provisions for liabilities
  

Deferred tax
  
(19,413)
(131,245)

  
 
 
(19,413)
 
 
(131,245)

Net assets excluding pension asset
  
174,354
512,137

Net assets
  
174,354
512,137


Capital and reserves
  

Revaluation reserve
 22 
58,686
379,349

Other reserves
 22 
412
-

Retained Earnings brought forward
  
132,788
145,477

Loss for the year
  
(296,450)
(28,025)

Transfers to/(from) Retained Earnings

  

278,918
15,336

Profit and loss account carried forward
  
115,256
132,788

  
174,354
512,137


Page 16

 
PARITY TECHNOLOGIES LIMITED
REGISTERED NUMBER: 09760015
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by 11 August 2025.


Mr R J Wood
Director

The notes on pages 24 to 48 form part of these financial statements.

Page 17
 

 
PARITY TECHNOLOGIES LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024



Called up share capital
Share-based payment reserve
Revaluation reserve
Foreign exchange reserve
Other reserves
Retained Earnings
Total equity


£000
£000
£000
£000
£000
£000
£000


At 1 January 2024
-
-
379,349
(220)
-
136,333
515,462



Comprehensive income for the year


Loss for the year
-
-
-
-
-
(295,341)
(295,341)


Deficit on revaluation of other fixed assets
-
-
(150,397)
-
-
-
(150,397)


Tax relating to other comprehensive income
-
-
111,091
-
412
(2,877)
108,626


Movement in FX reserve
-
-
-
499
-
-
499

Total comprehensive income for the year
-
-
(39,306)
499
412
(298,218)
(336,613)


Transfer to Retained Earnings
-
-
(281,351)
-
-
281,351
-



Total transactions with owners
-
-
(281,351)
-
-
281,351
-



At 31 December 2024
-
-
58,692
279
412
119,466
178,849



The notes on pages 24 to 48 form part of these financial statements.

The Share Capital and Share Based Payment Reserve of £81 and £19 respectively are not shown on the
Statement of Changes in Equity due to rounding, however they have been shown to their full precision in notes
19 and 20 respectively.

Page 18

 

 
PARITY TECHNOLOGIES LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share-based payment reserve
Revaluation reserve
Foreign exchange reserve
Retained Earnings
Total equity


£000
£000
£000
£000
£000
£000


At 1 January 2023
-
-
167,497
-
147,827
315,324



Comprehensive income for the year


Loss for the year
-
-
-
-
(26,830)
(26,830)


Surplus on revaluation of other fixed assets
-
-
298,221
-
-
298,221


Taxation in respect of items of other comprehensive income
-
-
(70,276)
-
(757)
(71,033)


Movement in FX reserve
-
-
-
(220)
-
(220)

Total comprehensive income for the year
-
-
227,945
(220)
(27,587)
200,138


Transfer to Retained Earnings
-
-
(16,093)
-
16,093
-



Total transactions with owners
-
-
(16,093)
-
16,093
-



At 31 December 2023
-
-
379,349
(220)
136,333
515,462



The notes on pages 24 to 48 form part of these financial statements.

The Share Capital and Share Based Payment Reserve of £81 and £19 respectively are not shown on the
Statement of Changes in Equity due to rounding, however they have been shown to their full precision in notes
19 and 20 respectively.

Page 19

 

 
PARITY TECHNOLOGIES LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024



Called up share capital
Share-based payment reserve
Revaluation reserve
Other reserves
Retained Earnings
Total equity


£000
£000
£000
£000
£000
£000


At 1 January 2024
-
-
379,349
-
132,788
512,137



Comprehensive income for the year


Loss for the year
-
-
-
-
(296,450)
(296,450)


Deficit on revaluation of other fixed assets
-
-
(149,959)
-
-
(149,959)


Taxation in respect of items of other comprehensive income
-
-
111,091
412
(2,877)
108,626

Total comprehensive income for the year
-
-
(38,868)
412
(299,327)
(337,783)


Transfer to Retained Earnings
-
-
(281,795)
-
281,795
-



Total transactions with owners
-
-
(281,795)
-
281,795
-



At 31 December 2024
-
-
58,686
412
115,256
174,354



The notes on pages 24 to 48 form part of these financial statements.

The Share Capital and Share Based Payment Reserve of £81 and £19 respectively are not shown on the
Statement of Changes in Equity due to rounding, however they have been shown to their full precision in notes
19 and 20 respectively.

Page 20

 

 
PARITY TECHNOLOGIES LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share-based payment reserve
Revaluation reserve
Retained Earnings
Total equity


£000
£000
£000
£000
£000


At 1 January 2023
-
-
167,497
145,477
312,974



Comprehensive income for the year


Loss for the year
-
-
-
(28,025)
(28,025)


Surplus on revaluation of other fixed assets
-
-
298,221
-
298,221


Taxation in respect of items of other comprehensive income
-
-
(70,276)
(757)
(71,033)

Total comprehensive income for the year
-
-
227,945
(28,782)
199,163


Transfer to Retained Earnings
-
-
(16,093)
16,093
-



Total transactions with owners
-
-
(16,093)
16,093
-



At 31 December 2023
-
-
379,349
132,788
512,137



The notes on pages 24 to 48 form part of these financial statements.

The Share Capital and Share Based Payment Reserve of £81 and £19 respectively are not shown on the
Statement of Changes in Equity due to rounding, however they have been shown to their full precision in notes
19 and 20 respectively.

Page 21
 
PARITY TECHNOLOGIES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£000
£000

Cash flows from operating activities

Loss for the year after tax
(295,341)
(26,830)

Adjustments for:

Other Non - Cash Movements
59,408
322,820

Revaluation
149,954
(314,264)

Depreciation of tangible assets
137
195

(Profit) / Loss on Sale of Tangible Assets
133
-

Interest Paid
-
70

Taxation credited
(111,368)
(4,002)

(Increase)/decrease in debtors
(56,076)
4,879

Increase/(decrease) in creditors
7,460
(78)

Corporation tax (paid)
(39,697)
(16,935)

Investment Income
(2,253)
-

(Profit) / Loss on Sale of Intangible Assets
281,759
-

Finance Cost
2,867
2,385

Interest Income
-
(244)

Proceeds on disposal of intangible assets
-
12,271

Net cash generated from operating activities

(3,017)
(19,733)


Cash flows from investing activities

Sale of intangible assets
-
5

Purchase of tangible fixed assets
(591)
(490)

Proceeds on disposal of tangible fixed assets
22
-

Interest received
2,253
245

Net cash from investing activities

1,684
(240)

Cash flows from financing activities

Interest paid
(2,867)
-

Net cash used in financing activities
(2,867)
-

Net (decrease) in cash and cash equivalents
(4,200)
(19,973)

Cash and cash equivalents at beginning of year
10,595
30,978

Foreign exchange gains and losses
-
(410)

Cash and cash equivalents at the end of year
6,395
10,595


Cash and cash equivalents at the end of year comprise:
Page 22

 
PARITY TECHNOLOGIES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023

£000
£000


Cash at bank and in hand
6,395
10,595

6,395
10,595


The notes on pages 24 to 48 form part of these financial statements.

Page 23

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Parity Technologies Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Sans Walk, London, England, EC1R 0LT.
The group consists of Parity Technologies Limited and all of its subsidiaries.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its wholly owned subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis, which the directors consider to be appropriate.
As at the balance sheet date, the Group had net current assets of £63,030,242 (2023: net current liabilities of £20,919,914), reflecting a strong liquidity position. The directors have reviewed the Group’s forecasts and cash flow projections for a period of at least 12 months from the date of approval of the financial statements.
The directors believe that the Group is solvent and able to meet its liabilities as they fall due, supported by fixed assets of £135,225,764, which largely comprise intangible assets. These include digital assets totalling £134,090,116. The directors acknowledge that there is an inherent risk associated with the valuation and volatility of such assets within this sector.
Based on this review, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 24

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.4

Revenue

Turnover is recognised at the fair value of consideration that is specified in a contract with a customer and excludes amounts collected on behalf of third parties. Revenue from software development contracts is recognised over time as services are rendered by contractors.
Revenue from consulting contracts is recognised in the accounting period in which the services are rendered. For long-term consulting and advisory service contracts, revenue is recognised based on the actual services provided upto the end of the reporting period as a proportion of total services to be provided. The directors have assessed that the stage of completion is determined based on the performance obligations specified in the terms and conditions of the contract or by the time elapsed as a proportion of the total contract term length, as at the end of the reporting period, as the appropriate measures of progress towards complete satisfaction of these performance obligations under FRS 102.
Estimates of revenues, costs, or extent of progress towards completion are revised if circumstances change. Any resulting movements in estimated revenues or costs are reflected in the profit or loss for the period in which the circumstances that give rise to the revision become known by management.
Revenue from validator staking rewards is recognised at the point in time when a block is created and transactions are validated. The validation process confirms transactions and adds them to the blockchain, which is when it is probable that the economic benefits associated with the transaction will flow to the entity. The rewards are measured at the market value of the cryptocurrency token on the date of the block creation and validation of transactions.
Revenue from nominator staking rewards is recognised at the point in time when it is effectively earned by the nominator; when the tokens have been credited to the nominator's wallet by the blockchain protocol, which is when the revenue recognition criteria under FRS 102 section 23.14 are satisfied. The rewards are measured at the market value of the cryptocurrency token on the date the tokens have been credited to the nominator wallet.
These policies ensure that revenue from blockchain activities is recognised in a manner that reflects the transfer of economic benefits and the fulfilment of performance obligations as per the principles of FRS 102.
These policies outline when and how revenue should be recognised for both validators and nominators, ensuring compliance with FRS 102.

Page 25

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.5

Cryptocurrency or digital assets

The Company and Group receives cryptocurrency or digital assets as consideration for services rendered. The Company and group recognises crypto assets or tokens as an intangible asset under FRS 102, as they are identifiable non-monetary assets without physical substance. The Company and group recognises these assets when all the recognition criteria of intangible assets are met.
including:
•    They are separately identifiable;
•   The crypto assets or tokens are in the control of the Company and this control has arisen as a result of contractual or legal rights; and
•    It is expected that future economic benefits will flow to the business from them.
The Company and group has chosen to apply the revaluation model for cryptocurrency or digital assets where there is an active market. Under this model the crypto tokens and assets are revalued at the end of each reporting period based on the active market cost price at that date. Revaluation gains received are accumulated in the reserves and released into retained earnings upon disposal.
At the end of each reporting period, the Company and Group is required to assess whether there is any indication an asset may be impaired. If there is an indication that an asset may be impaired then the company will calculate the asset's recoverable amounts, which is the higher of the fair value less costs of disposal and the value in use. If the recoverable amount of a crypto token or asset is below the carrying amount, an impairment loss will be recognised.
The Group determines the fair value of digital assets using observable market data where available. Where active markets do not exist or transactions are restricted, fair value is assessed using independent valuation specialists who will use approved valuation techniques incorporating unobservable inputs. These may include model-based valuation methods and liquidity analysis, applying transaction-specific discounts to reflect marketability and volume constraints. Such measurements are classified within Level 3 of the fair value hierarchy in accordance with FRS 102 Section 11.

 
2.6

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 26

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
13%
straight line
Office equipment
-
20%
straight line
Computer equipment
-
20%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 27

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.9

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or Cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.11

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Page 28

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.11
Financial instruments (continued)

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Page 29

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.11
Financial instruments (continued)


Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 30

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.12

Compound instruments

The component parts of compound instruments issued by the group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

  
2.13

Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs, Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

  
2.14

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
•  Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

  
2.15

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Page 31

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.16

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

  
2.17

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).

  
2.18

Grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

Page 32

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.19

Foreign currency translation

Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 33

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements, apart from those involving estimates, have had the most significant effect on amounts recognised in the financial statements.
Indefinite life intangible assets
Crypto assets or tokens have no physical attributes and will be accounted for as intangible assets under FRS102 with an indefinite useful life, unless they are held for sale in the ordinary course of business.
Valuation of crypto assets
Revenue earned from nomination activities has been presented net of commission due to validators being considered a principal in the transaction in accordance with sections 23A 37-41 of FRS 102.
The value of digital assets received under standalone customer contracts and through staking rewards for which there is an active market are measured by reference to the market value per token.
Useful expected life of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates related to technological obsolescence that may change the utility of computer, fixtures, fittings and office equipment.
Indicators of impairment
Management has deemed no impairments to tangible fixed assets necessary as the value of the computer equipment, leasehold, Land and buildings and fixtures and fittings are not tied to the success of Parity financially.
Management has also deemed no impairments to intangible fixed assets necessary as all assets are held under the revaluation model, and are priced appropriately according to the active market.
Group Reorganisation
During the year, PTL transferred DOT tokens to PTH (for consideration left outstanding) in connection with a commercially-driven group reorganisation transaction. As there was no active market for the specific size and nature of this transaction, fair value (and market value for United Kingdom corporation tax purposes) was determined using a combination of valuation models prepared by independent valuation specialists. Key assumptions included volatility of comparable digital assets, market trading volumes, and discount rates reflecting limited liquidity and transfer restrictions. The valuation methodology was also disclosed to and agreed with officers of HM Revenue & Customs.
 
Page 34

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.Judgments in applying accounting policies (continued)

The valuation is classified as Level 3 and subject to estimation uncertainty. Changes in key assumptions may materially impact the reported fair value.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£000
£000

Assistance with building of blockchain infrastructure
26,720
56,788

Staking rewards
13,801
1,776

40,521
58,564


Analysis of turnover by country of destination:

2024
2023
£000
£000

Rest of the world
40,521
58,564

40,521
58,564



5.


Exceptional administrative expenses

Exceptional administrative expenses relates to a loss in connection with the disposal of DOT to PTH. Further information can be found in note 23.


6.


Other operating income

2024
2023
£000
£000

Interest income
2,253
244

Grants and Other income
1,678
998

3,931
1,242


Page 35

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Operating loss

The operating loss is stated after charging:

2024
2023
£000
£000

Exchange (Gains)/Losses
3,151
409

Grants and Other Income
(1,678)
(998)

Depreciation of owned Tangible fixed assets
139
195

Gain on disposal of tangible fixed assets
56
-

Loss on disposal of Intangible Assets
281,481
12,271

Waiver of share options
278
-

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to a loss £3,151,432 (2023: £408,828 loss). 
Loss on disposal of intangible assets relates the disposal of digital assets as part of the group restructuring amounting to £281,481,297 (2023: £12,270,955)


8.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£000
£000

Audit of the financial statements of the group and company
215
295

Non-audit services

5
5

Total
220
300

Page 36

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Wages and salaries
26,719
23,951
6,868
8,152

Social security costs
2,346
2,753
954
1,037

Cost of defined contribution scheme
50
68
48
78

29,115
26,772
7,870
9,267


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023









Average monthly number of employees, including the directors, during the year
107
230
39
59


10.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
231
197

Group contributions to defined contribution pension schemes
3
3

234
200


The highest paid director received remuneration of £140,269 (2023 - £132,267).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023 - £1,321).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amount to 2 (2023:2)

Page 37

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Interest payable and similar expenses

2024
2023
£000
£000


Interest and other financing costs
2,867
2,385

2,867
2,385


12.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
(3,797)
(4,525)


(3,797)
(4,525)

Foreign tax


Foreign tax on income for the year
563
523

Total current tax
(3,234)
(4,002)

Deferred tax


Deferred tax - current year
(330)
-

Total deferred tax
(330)
-


(3,564)
(4,002)
Page 38

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax repayment assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£000
£000


Loss on ordinary activities before tax
(300,576)
(30,832)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
(75,144)
(7,252)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
71,978
3,473

Difference in deferred and current tax assets rates
-
(223)

Foreign tax on income for the year
563
-

Other tax charge (relief)
(919)
-

Other adjustments
(42)
-

Total tax charge for the year
(3,564)
(4,002)

Page 39

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Intangible assets

Group





Cryptocurrency

£000



Cost


At 1 January 2024
666,771


Additions
22,002


Disposals
(122,866)


Revaluation surplus
(431,819)



At 31 December 2024

134,088






Net book value



At 31 December 2024
134,088



At 31 December 2023
666,771



Company




Cryptocurrency

£000



Cost


At 1 January 2024
666,771


Additions
21,797


Disposals
(122,763)


Revaluation surplus
(431,825)



At 31 December 2024

133,980






Net book value



At 31 December 2024
133,980



At 31 December 2023
666,771

Page 40

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
           13.Intangible assets (continued)

The disposal in connection with the transfer of DOT to PTH as mentioned in note 23 with fair value of £378,819,787, is composed of £114,945,211 of disposal of cost, and £263,874,576 disposal of revaluation surplus.


14.


Tangible fixed assets

Group






Long-term leasehold property
Fixtures and fittings
Computer equipment
Total

£000
£000
£000
£000



Cost or valuation


At 1 January 2024
347
733
341
1,421


Additions
-
591
-
591


Disposals
(155)
(193)
(64)
(412)


Exchange adjustments
(12)
(61)
-
(73)



At 31 December 2024

180
1,070
277
1,527



Depreciation


At 1 January 2024
131
588
62
781


Charge for the year on owned assets
-
45
60
105


Charge for the year on financed assets
32
-
-
32


Disposals
(83)
(156)
(19)
(258)


Exchange adjustments
(2)
(55)
-
(57)



At 31 December 2024

78
422
103
603



Net book value



At 31 December 2024
102
648
174
924



At 31 December 2023
216
145
278
639

Page 41

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           14.Tangible fixed assets (continued)


Company






Fixtures and fittings
Computer equipment
Total

£000
£000
£000

Cost or valuation


At 1 January 2024
2
341
343


Additions
3
-
3


Disposals
-
(64)
(64)



At 31 December 2024

5
277
282



Depreciation


At 1 January 2024
1
62
63


Charge for the year on owned assets
1
60
61


Disposals
-
(19)
(19)



At 31 December 2024

2
103
105



Net book value



At 31 December 2024
3
174
177



At 31 December 2023
1
278
279






Page 42

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Fixed asset investments

Group





Unlisted investments

£000



Cost or valuation


At 1 January 2024
217


Disposals
(3)



At 31 December 2024
214






Net book value



At 31 December 2024
214



At 31 December 2023
217

Company





Investments in subsidiary companies
Unlisted investments
Total

£000
£000
£000



Cost or valuation


At 1 January 2024
906
217
1,123


Additions
103
-
103


Disposals
-
(3)
(3)



At 31 December 2024
1,009
214
1,223






Net book value



At 31 December 2024
1,009
214
1,223



At 31 December 2023
906
217
1,123

Page 43

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Parity Technologies Germany GMBH
Germany
Ordinary
100%
Parity Technologies Singapore Pte. Ltd
Singapore
Ordinary
100%
Unstoppable Open Source Technologies Unipessoal LDA
Portugal
Ordinary
100%
Parity Technologies AG (Incorporated 5 July 2024)
Switzerland
Ordinary
100%
PTL II Limited (Disposed 11 March 2025)
United Kindgom
Ordinary
0%

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£000
£000

Parity Technologies Germany GMBH
906
707

Parity Technologies Singapore Pte. Ltd
-
(309)

Unstoppable Open Source Technologies Unipessoal LDA
-
883

Parity Technologies AG (Incorporated 5 July 2024)
103
122

PTL II Limited (Disposed 11 March 2025)
-
-


16.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Trade debtors
-
2
-
1

Amounts owed by group undertakings
-
-
671
-

Other debtors
64,982
6,663
64,730
6,662

Prepayments and accrued income
2,174
4,861
2,139
4,803

Line of credit
1,512
1,065
1,512
1,065

68,668
12,591
69,052
12,531


Page 44

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Trade creditors
278
589
101
530

Amounts owed to group undertakings
-
-
11,651
5,370

Corporation tax due / (overpaid)
(2,120)
37,419
(2,400)
37,249

Other taxation and social security
647
491
275
404

Other creditors
5,086
408
85
15

Accruals and deferred income
8,136
5,199
6,945
3,927

12,027
44,106
16,657
47,495



18.


Retirement benefit scheme

2024
2023
£000
£000



CoS staff pens costs - defined contribution scheme
44
49

Staff pension costs - defined contribution schemes
3
16

47
65

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.


19.


Deferred taxation


Group



2024


£000






At beginning of year
(131,245)


Charged to profit or loss
328


Charged to other comprehensive income
111,504



At end of year
(19,413)

Page 45

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
19.Deferred taxation (continued)

Company


2024


£000






At beginning of year
(131,245)


Charged to profit or loss
328


Charged to other comprehensive income
111,504



At end of year
(19,413)

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Accelerated capital allowances
(44)
(70)
(44)
(70)

Revaluation of Intangible Fixed Assets
(23,859)
(134,992)
(23,859)
(134,992)

Retirement benefit obligation
4
4
4
4

Disallowed interest
39
39
39
39

Unused trade losses
4,035
3,774
4,035
3,774

Unused capital losses
412
-
412
-

Total
(19,413)
(131,245)
(19,413)
(131,245)


20.


Share capital

2024
2023
£
£

Allotted, called up and fully paid


8,106 (2023 - 8,106) Ordinary shares of £0.01 each
81
81

81
81

The amounts disclosed in this note are presented to their full precision and have not been rounded, to ensure transparency and accuracy of underlying values

Page 46

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

21.


Share-based payments

The weighted average fair value of options granted was determined using the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the "vesting date").
The expected life used in the model was adjusted, based on management's best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.
Non-vesting conditions and market conditions are considered when estimating the fair value of the option at grant date. Service conditions and non-market performance conditions are considered by adjusting the number of options expected to vest at each reporting date.


2024
2023
£
£



Share-based payment reserve
-
19

-
19

The amounts disclosed in this note are presented to their full precision and have not been rounded, to ensure transparency and accuracy of underlying values


22.


Reserves

Revaluation reserve

The revaluation reserve represents the surplus arising on the revaluation of certain non-current intangible assets. The reserve is not distributable.

Share based payment reserve

The share based payment reserve represents the cumulative value of equity-settled share-based payments recognised as an expense in the income statement

Foreign currency translation reserve

The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operation whose functional currencies are different from that of the Group's presentation currency. The movement in foreign currency translation reserves is presented in the consolidated statement of changes in equity

Other reserves

Other reserves relates to unused capital losses within PTH 

Retained Earnings

The Retained Earnings account represents cumulative profits and losses net of dividends paid and other adjustments.

Page 47

 
PARITY TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Related party transactions

At year-end, the Company and the Group had an outstanding balance due from Parity Technologies Holdings, an entity under common control. The amount due to the Company was £64,099,407 (2023: £5,499,294).
During the year ended 31 December 2024, PTL transferred DOT tokens to PTH company (for consideration left outstanding). The fair value (and market value for United Kingdom corporation tax purposes) of the DOT transferred was determined with input from independent third-party valuation specialists. The valuation incorporated significant unobservable inputs and applied a weighted average discount rate to reflect transaction-specific factors including market conditions and market imposed restrictions on transferability. As noted in note 3, the valuation methodology was also disclosed to and agreed with officers of HM Revenue & Customs.
The fair value of the transferred tokens at the date of the transaction was £378,819,787 and the resulting loss on transfer of £281,481,297 has been recognised in the profit and loss account.


24.


Controlling party

The immediate parent undertaking of Parity Technologies Limited is Parity Technologies Holdings ("PTH"), a company incorporated in the Cayman Islands. 
The ultimate controlling party of Parity Technologies Limited is Dr Gavin James Hoyle by virtue of his shareholdings.


25.


Auditor's information

The auditors’ report on the financial statements for the year ended 31 December 2024 was unqualified.
The audit report was signed on 11 August 2025 by Nicholas Newman (Senior Statutory Auditor) on behalf of Harris and Trotter LLP.

Page 48