ACCOUNTS - Final Accounts preparation

Registered number: 03756035

NAILS INC LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE PERIOD ENDED 31 DECEMBER 2024

NAILS INC LIMITED

REGISTERED NUMBER: 03756035

BALANCE SHEET

AS AT 31 DECEMBER 2024

	31 December	30 June
	2024	2023
Note	£	£

Fixed assets
Intangible assets	4		-		192,785
Tangible assets	5		194,191		496,318
Investments	6		100		100
			194,291		689,203
Current assets
Stocks	7	3,032,416		2,639,131
Debtors: amounts falling due within one year	8	2,776,836		5,820,764
Cash at bank and in hand	9	436,455		58,939
		6,245,707		8,518,834
Creditors: amounts falling due within one year	10	(2,818,771)		(3,165,089)
Net current assets			3,426,936		5,353,745
Total assets less current liabilities			3,621,227		6,042,948
Creditors: amounts falling due after more than one year	11		-		(188,907)
Provisions for liabilities
Deferred tax	13	(35,220)		-
			(35,220)		-
Net assets			3,586,007		5,854,041

Capital and reserves
Called up share capital	7,208	7,208
Share premium account	1,587,007	1,587,007
Capital redemption reserve	2,146	2,146
Profit and loss account	1,989,646	4,257,680
	3,586,007	5,854,041

Page 1

NAILS INC LIMITED

REGISTERED NUMBER: 03756035

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 August 2025.

B J Debie

Director

The notes on pages 4 to 19 form part of these financial statements.

Page 2


		NAILS INC LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 July 2022	7,208	1,587,007	2,146	4,382,015	5,978,376
Comprehensive income for the year
Loss for the year	-	-	-	(124,335)	(124,335)

At 1 July 2023	7,208	1,587,007	2,146	4,257,680	5,854,041
Comprehensive income for the period
Loss for the period	-	-	-	(2,268,034)	(2,268,034)
Total comprehensive income for the period	-	-	-	(2,268,034)	(2,268,034)
At 31 December 2024	7,208	1,587,007	2,146	1,989,646	3,586,007

The notes on pages 4 to 19 form part of these financial statements.

Page 3

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

1.	General information

Nails Inc Limited is a private company, limited by shares, incorporated and registered in England and Wales, registration number 03756035. The registered office is 3rd Floor, 19-23 Grosvenor Hill, London, W1K 3QD.
The accounts are prepared for the 18 month period from 1 July 2023 to 31 December 2024. The prior year accounts were prepared on a 12 month period from 1 July 2022 to 30 June 2023 and are therefore not comparable.

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 management to exercise judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Prospect Capital Corporation as at 31 December 2024 and these financial statements may be obtained from 100 Technology Dr W Ste 200, Irvine, CA 926618, United States.

2.3

Going concern

The directors are satisfied that the Company has sufficient resources to meet its obligations as and when they fall due for a period of at least twelve months from the approval of these financial statements. Therefore it is appropriate for the financial statements to be prepared on a going concern basis.

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

As well as selling nail varnish, the Company offers treatments for which revenue is recognised at the time the treatment is sold.
The split of sales between goods and services has not been disclosed.

2.5

Intangible assets

Development expenditure is comprised of costs incurred when creating and launching the new bottle. The Company have considered that a period of 5 years is an appropriate useful economic life.

The estimated useful lives range as follows:

Website	-	2-3 years
Development expenditure	-	5 years straight line
Trademarks	-	10 years straight line

The amortisation charge of intangible assets is included within administrative expenses in the Statement of Comprehensive Income. The useful lives of intangible assets have been chosen based on the director's assessment of the expected period over which the asset will be utilised within the trade of the group.

2.6

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.

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.6

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:

Short-term leasehold property	-	Over the term of the lease
Fixtures and fittings	-	3-5 years
Computer equipment	-	2 years

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.

The Company receives contributions towards store fit outs. The Company considers it to be appropriate to show the gross cost of the fixed assets and the contribution as deferred income. The deferred income is then released to the profit and loss account over the same period of time as the assets are depreciated.

2.7

Development costs

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.10

Financial instruments

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

Financial instruments are recognised in the Company's Balance Sheet when the Company 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

Page 6

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Financial instruments (continued)

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 Company'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.

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans 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

Page 7

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Financial instruments (continued)

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.

2.11

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 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'.

2.12

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.13

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 8

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.14

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

2.16

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.17

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 9

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.19

Current and deferred taxation

The tax expense for the period 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 balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 balance sheet date.

2.20

Exceptional items

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

2.21

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

2.22

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 10

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.23

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.

2.24

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Employees

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

	2024	2023
	No.	No.

Administrative and management staff	28	30
Retail staff	10	9

	38	39

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

4.	Intangible assets

	Website	Development expenditure	Trademarks	Total
	£	£	£	£

At 1 July 2023	812,513	373,817	541,963	1,728,293
Additions	9,470	-	17,822	27,292
Intra-group transfers	(821,983)	(373,817)	(559,785)	(1,755,585)
At 31 December 2024	-	-	-	-

At 1 July 2023	800,308	359,217	375,983	1,535,508
On disposals	(800,308)	(359,217)	(375,983)	(1,535,508)
At 31 December 2024	-	-	-	-
Net book value
At 31 December 2024	-	-	-	-
At 30 June 2023	12,205	14,600	165,980	192,785

Website costs are carried at £nil (2023 - £12,205) and have an average remaining amortisation period of 0 year (2023 - 1 year).
Development costs include the costs involved with development of brands and new ranges of products. The assets are carried at £nil (2023 - £14,600) and have an average remaining amortisation period of 0 year (2023 - 1 year).
Trademarks are carried at £nil (2023 - £165,980) and have an average remaining amortisation period of 0 years (2023 - 4 years).

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

5.	Tangible fixed assets

	Fixtures and fittings	Computer equipment	Total
	£	£	£
Cost
At 1 July 2023	1,316,112	117,978	1,434,090
Additions	91,719	19,546	111,265
At 31 December 2024	1,407,831	137,524	1,545,355
Depreciation
At 1 July 2023	839,522	98,250	937,772
Charge for the period	385,138	28,254	413,392
At 31 December 2024	1,224,660	126,504	1,351,164
Net book value
At 31 December 2024	183,171	11,020	194,191
At 30 June 2023	476,590	19,728	496,318

6.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost
	At 1 July 2023	100
	At 31 December 2024	100

Page 13

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name	Class of shares	Holding

GIFNI Limited

Ordinary

100%

GIFNI Limited was incorporated in England and Wales and is a dormant subsidiary of the company. The Company owns all of the 100 shares which have a par value of £1 per share. The registered office address of GIFNI Limited is 3rd Floor, 19-23 Grosvenor Hill, London W1K 3QD.
During the year the company disposed of its investment in Nails Inc USA. The company had previously held 2,000 shares which had a par value of $0.00.

7.	Stocks
		31 December	30 June
		2024	2023
		£	£

Finished goods and goods for resale	3,032,416	2,639,131
	3,032,416	2,639,131

Debtors

					31 December	30 June
					2024	2023
					£	£


Trade debtors	1,881,189	1,747,893
Amounts owed by group undertakings	-	3,270,144
Other debtors	445	444
Prepayments and accrued income	801,641	579,767
Tax recoverable	93,561	93,561
Deferred taxation	-	128,955
	2,776,836	5,820,764

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

9.	Cash and cash equivalents
		31 December	30 June
		2024	2023
		£	£

Cash at bank and in hand	436,455	58,939
	436,455	58,939

10.	Creditors: Amounts falling due within one year
		31 December	30 June
		2024	2023
		£	£

Bank loans	129	310,490
Related party loans	-	83,333
Trade creditors	1,950,238	1,811,690
Amounts owed to group undertakings	174,750	-
Other taxation and social security	111,936	256,605
Other creditors	208,273	49,471
Accruals and deferred income	373,445	653,500
	2,818,771	3,165,089

Details of the loans are included in Note 21.
The Company's bank balances are secured by a fixed and floating charge over the assets of the Company.

11.	Creditors: Amounts falling due after more than one year
		31 December	30 June
		2024	2023
		£	£

Bank loans	-	105,573
Related party loans	-	83,334
	-	188,907

Details of the loans are included in Note 21.

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

12.	Loans
	Analysis of the maturity of loans is given below:
		31 December	30 June
		2024	2023
		£	£

Amounts falling due within one year
Bank loans	129	310,490
Related party loans	-	83,333
	129	393,823
Amounts falling due 1-2 years
Bank loans	-	105,573
Related party loans	-	83,334
	-	188,907


	129	582,730

On 15 October 2021 the Company drew down on a loan with a related party by virtue of being a close family member of a significant shareholder to the value of £250,000. The loan is due for repayment in equal annual installments over a period of three years. The loan is unsecured and does not accrue any interest. Repayments were scheduled in equal installments over 3 years. In October 2023 the 2nd repayment was made (when Tangent was still a related party). The final repayment was made early on 1 February 2024 following the acquisition (at which point Tangent was no longer a related party).

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

13.	Deferred taxation

	2024	2023
	£	£

At beginning of year	128,955	114,175
Charged to profit or loss	(164,175)	14,780
At end of year	(35,220)	128,955

The deferred taxation balance is made up as follows:
	31 December	30 June
	2024	2023
	£	£

Accelerated capital allowances	(223,133)	(58,958)
Tax losses carried forward	187,913	187,913
	(35,220)	128,955

14.	Share capital
		31 December	30 June
		2024	2023
		£	£

Allotted, called up and fully paid

72,069 (2023 - 72,069) Ordinary shares shares of £0.10 each	7,207	7,207
1 (2023 - 1) Ordinary B shares share of £1.00	1	1

	7,208	7,208

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NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

14.Share capital (continued)

Rights attached to shares
The Ordinary shares entitle the holder: (a) to receive notice if, attend and vote at general meetings of the Company and on a poll to one vote for each Ordinary share held; (b) to receive rateably in accordance with the number of shares held, any profits available for distribution (following the payment of the preferential dividend) and resolved to be distributed by the Company; and (c) on a return of capital to receive in accordance with the number of shares held, any amounts payable to shareholders on a liquidation or reduction of capital. The Ordinary shares are not redeemable or liable to be redeemed.
The Ordinary B shares shall: 1) not entitle their holders to any rights in respect of distributions of profits by the Company; (2) not entitle their holders to any vote in respect of the holding of an Ordinary B share, whether on a show of hands or on a poll and their consent or signature will not be required to pass a written resolution; (3) on a distribution by the Company among its members on a liquidation or winding-up or other return of capital (other than a conversion, redemption or purchase by the Company of its own shares); (a) not entitle their holders to any distribution in relation to the assets of the Company remaining after the payment of its liabilities (the "surplus assets") up to £10 million; (b) entitle their holders to 10% of any distribution of surplus assets between £10 million to £40 million; (c) entitle their holders to 2.5% of any distribution of surplus assets in excess of £40 million; and (4) on a share sale or a disposal (each as defined in the articles) entitle their holders to a share in the sale proceeds or assets (as relevant) on the basis set out in 3 (a) to (c) above.

15.	Pension commitments

The Company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Company. The pensions contributions charged to the profit and loss accounts amounted to £38,483 (2023 - £25,445). At the year end an amount of £4,403 (2023 - £1,915) was outstanding.

16.

Related party transactions

The Company has taken advantage of the exemption permitted by section 33 of FRS 102 not to disclose transactions with other undertakings within its qualifying group.
During the year up until date of termination a related party provided services totalling £703,120 (2023 - £319,815). The Company had outstanding amounts to the related party at the year end totalling £nil (2023 - £179,106). This is a related party as one of the directors of the Company was also a director of the related party.
During the year up until date of termination a related party provided services totalling £70,000 (2023 - £120,000).The Company had outstanding amounts to a related party at the year end totalling £10,758 (2023 - £10,758). This is a related party as the directors of the related party are close family members of a director of the Company, and there is also common ownership between the two companies. This amount is unsecured, interest free and repayable on demand.
During the prior year the Company drew down on a loan with a related party by virtue of being a close family member of a significant shareholder. See details in note 21.
The total compensation paid to Key Management Personnel for the Company in the year amounted to £227,514 (2023 - £849,872).

Page 18

NAILS INC LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

17.	Controlling party

The immediate parent company is Pacific World Corporation, a company incorporated in United States of America. The ultimate parent company is Prospect Capital Corporation, a company incorporated in United States of America and listed on the NASDAQ. The financial statements of the ultimate controlling party are available from their registered office at 100 Technology Dr W Ste 200, Irvine, CA 926618, United States.

18.	Auditors' information

The auditors' report on the financial statements for the period ended 31 December 2024 was unqualified.

The audit report was signed on 26 August 2025 by John Coverdale (Senior Statutory Auditor) on behalf of MHA.

Page 19