REGISTERED NUMBER: 11546990 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

KIT-AR LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

Mr J C Costa

Mr M F Oliveira

Mr L M C De Lemos

Mr D Sola Varela

Mr T J Moe Brseth

REGISTERED OFFICE:

HQ Bloomsbury

Bloomsbury Way 4/4a

London

WC1A 2RP

REGISTERED NUMBER:

11546990 (England and Wales)

AUDITORS:

AGK Partnership Ltd

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of information technology service activities.

REVIEW OF BUSINESS

The turnover for the year under review amounted to £149,964, compared with £84,922 in the previous year. This significant increase is a result of a sharpened business strategy, focusing on product-market fit, go-to-market strategies, and enhanced R&D and infrastructure to support better solutions. As a result of these strategic shifts, the loss before tax has decreased to £329,813 in 2024, compared to £512,413 in 2023. Management remains optimistic about continuous growth, driven by the consolidation of the product suite, client acquisition, and strategic partnerships.

KIT-AR continues to be a pioneering force in the industrial augmented reality landscape, dedicated to the digital augmentation of the human worker on the manufacturing shop floor with the goal of reducing the cost of poor quality.

In 2024, the company focused on refining its product-market fit and strengthening its go-to-market strategies. This included the adoption of industry-specific verticals, beginning with Assembly, Quality Inspection, and Kitting. Despite investment constraints, the team expanded to support these initiatives. Additionally, significant improvements were made to enhance the robustness and reliability of the infrastructure, ensuring it could support demanding industrial deployments at Autoeuropa in the automotive sector and OGMA in aerospace.

The company also pursued strategic commercial partnerships with established brands known for their expertise in implementing digitalisation strategies in manufacturing. These partnerships are designed to help increase market reach and accelerate the adoption of KIT-AR's solutions.

FUTURE DEVELOPMENTS

Management expects to see a continued growth of the group throughout 2025, as well as a consolidated product suite and client acquisitions within target industries, with the support from the strategic partnership entered with PWC Portugal.

We would like to extend our sincere gratitude to our employees, customers, partners, and shareholders for their continued support and trust in KIT-AR. Our achievements in 2024 are a testament to the dedication and hard work of our team, and we look forward to building on this success in the coming year

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr J C Costa

Mr M F Oliveira

Other changes in directors holding office are as follows:

Mr L M C De Lemos - appointed 27 March 2024

Mr D Sola Varela - appointed 22 July 2024

Mr T J Moe Brseth was appointed as a director after 31 December 2024 but prior to the date of this report.

Mr I H Gangas ceased to be a director after 31 December 2024 but prior to the date of this report.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company has a resilient business model in place and is focusing on several measures for preservation of cash flows and cost optimization including availing of various government relief schemes.

Financial risk factors

The Company is exposed to the following risks from its use of financial instruments:

Credit risk

Liquidity risk

Market risk

Interest rate risk

Currency risk

The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

(i) Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date.

(ii) Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability but can also increase the risk of losses. The Company has procedures with the object of minimising such losses as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

(iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments.

(iv) Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Borrowings issues at variable rates expose the Company to cash flow interest rate risk. The Company's management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

(v) Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates and liabilities are denominated in a currency that is not the Company's functional currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Euro dollar.The Company's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

ENVIRONMENTAL POLICY

The Board acknowledges that environmental protection is one of the company's business responsibilities. It aims for a continuous improvement in the company's environmental performance and to comply with all relevant regulations. Also the Board does not consider that this line of business has a large adverse impact upon the environment. As a result the company does not manage its business by reference to any environmental key performance indicators. The company seeks to maintain a high proportion of its records electronically and of the paper it does use, over 80% of its paper consumption is recycled through the use of recycling bags.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, AGK Partnership Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr M F Oliveira - Director

27 July 2025

Opinion

We have audited the financial statements of Kit-AR Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The 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 company's affairs as at 31 December 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our 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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

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 a Report of the Auditors 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud

and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

We focused our audit procedures on assessing whether revenue was recognized in the appropriate accounting period and whether any revenue was inappropriately recorded to manipulate financial performance.

Our audit procedures included, but were not limited to:

- evaluating the revenue recognition policies for compliance with applicable accounting standards.

- testing a sample of sales invoices to confirm the accuracy and existence of recorded revenue by agreeing the invoice amounts to supporting documentation.

- performing cut-off testing to verify that revenue was recognized in the correct period.

Based on the procedures performed, we did not identify any material misstatements in revenue recognition.

There are inherent limitations in our audit procedure described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with law and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

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 2006. Our 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 a Report of the Auditors 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.

Alekos Christofi (Senior Statutory Auditor)

for and on behalf of AGK Partnership Ltd

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

27 July 2025

REVENUE

3

149,964

84,922

Cost of sales

12,881

-

GROSS PROFIT

137,083

84,922

Administrative expenses

466,974

597,335

OPERATING LOSS

5

(329,891

)

(512,413

)

Interest receivable and similar income

78

-

LOSS BEFORE TAXATION

(329,813

)

(512,413

)

Tax on loss

6

(22,208

)

-

LOSS FOR THE FINANCIAL YEAR

(307,605

)

(512,413

)

LOSS FOR THE YEAR

(307,605

)

(512,413

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(307,605

)

(512,413

)

FIXED ASSETS

Intangible assets

7

185,212

196,720

Property, plant and equipment

8

25,550

16,265

Investments

9

1,502,067

1,199,410

1,712,829

1,412,395

CURRENT ASSETS

Inventories

10

7,728

-

Debtors

11

314,894

315,801

Cash at bank

25,595

213,834

348,217

529,635

CREDITORS

Amounts falling due within one year

12

56,722

40,455

NET CURRENT ASSETS

291,495

489,180

TOTAL ASSETS LESS CURRENT LIABILITIES

2,004,324

1,901,575

CREDITORS

Amounts falling due after more than one year

13

(209,895

)

(403,585

)

PROVISIONS FOR LIABILITIES

14

(6,388

)

-

NET ASSETS

1,788,041

1,497,990

CAPITAL AND RESERVES

Called up share capital

15

13

12

Share premium

2,997,359

2,399,704

Retained earnings

(1,209,331

)

(901,726

)

SHAREHOLDERS' FUNDS

1,788,041

1,497,990

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2025 and were signed on its behalf by:

Mr M F Oliveira - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

9

(389,313

)

2,399,704

2,010,400

Changes in equity

Issue of share capital

3

-

-

3

Total comprehensive income

-

(512,413

)

-

(512,413

)

Balance at 31 December 2023

12

(901,726

)

2,399,704

1,497,990

Changes in equity

Issue of share capital

1

-

597,655

597,656

Total comprehensive income

-

(307,605

)

-

(307,605

)

Balance at 31 December 2024

13

(1,209,331

)

2,997,359

1,788,041

Cash flows from operating activities

Cash generated from operations

1

(491,404

)

(482,386

)

Tax paid

28,596

-

Net cash from operating activities

(462,808

)

(482,386

)

Cash flows from investing activities

Purchase of intangible fixed assets

(3,923

)

-

Purchase of tangible fixed assets

(16,585

)

(6,185

)

Purchase of fixed asset investments

(302,657

)

-

Interest received

78

-

Net cash from investing activities

(323,087

)

(6,185

)

Cash flows from financing activities

Share issue

1

3

Share premium

597,655

-

Net cash from financing activities

597,656

3

Decrease in cash and cash equivalents

(188,239

)

(488,568

)

Cash and cash equivalents at beginning of year

2

213,834

702,402

Cash and cash equivalents at end of year

2

25,595

213,834

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Loss before taxation

(329,813

)

(512,413

)

Depreciation charges

22,730

20,480

Decrease in Interco debtors

1,281

-

Finance income

(78

)

-

(305,880

)

(491,933

)

Increase in inventories

(7,728

)

-

Increase in trade and other debtors

(373

)

(503,295

)

(Decrease)/increase in trade and other creditors

(177,423

)

512,842

Cash generated from operations

(491,404

)

(482,386

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

25,595

213,834

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

213,834

702,402

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

213,834

(188,239

)

25,595

213,834

(188,239

)

25,595

Total

213,834

(188,239

)

25,595

1.	STATUTORY INFORMATION

Kit-AR Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

The directors have assessed KIT-AR’s current financial position and future prospects and are confident in the company’s ability to continue operating as a going concern for the foreseeable future. This assessment is based on ongoing support from existing investors, the successful achievement of key operational milestones, and the company’s ability to attract strategic funding aligned with its growth strategy.

KIT-AR continues to make solid progress in both product development and commercial engagement within the Automotive and Aerospace sectors. The company maintains strong investor confidence, an active sales pipeline, and collaborative relationships with industry leaders. Based on this outlook, the directors believe that the company is well-positioned to sustain its operations and growth trajectory, and have therefore prepared the financial statements on a going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Kit-AR Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Significant judgements and estimates

The preparation of financial statements in accordance with the Companies Act 2006 and FRS102 requires from management the exercise of judgement, to make estimates and assumptions that influence the application of accounting principles and the related amount of assets and liabilities income and expenses. The estimates and underlying assumptions are based on historical experience and various other factors that are deemed to be reasonable based on knowledge available at the time. Actual results may deviate from such estimates.

Revisions in accounting estimates are recognised in the period during which the estimate is revised, if the estimate affects only that period, or in the period of the revision and future periods. If the revision affects the present as well as future periods, the estimates and underlying assumptions are revised on a continuous basis.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue is earned from the sale of goods and from the rendering of services.

Revenue from the sale of goods is recognised when the buyer has obtained the significant risks and rewards of ownership of the goods, the company has no significant continuing involvement, the amount of revenue and associated costs can be measured reliably and it is probable that the company will receive the consideration.

The company provides augment technology solutions. These services are typically provided as part of a bundled transaction that also include the sale of goods but are considered to be separately identifiable components. Revenue from these services is recognised over the duration of the agreement.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of fifteen years.

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Capitalised development costs are stated at cost less accumulated amortisation and impairment losses. Amortisation is charged to the income statement on a systematic basis over the asset's estimated useful life, typically 15 years. The amortisation period and method are reviewed at each reporting date.

If the criteria for capitalisation are not met, development expenditure is recognised as an expense as incurred.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any impairment.

Stocks

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Costs include all costs incurred in bringing each product to its present location and condition under first-in

first-out (FIFO) basis.

Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Directly attributable expenses related to internally generated intangible assets is capitalised when following

criteria are met:

- Company is able to generate probable future economic benefits from use or sale of intangible asset.

- Company has intention to complete the intangible asset so that it will be available for use or sale of the intangible asset.

- Company has availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.

- Company has ability to use or sell the intangible asset.

- Company has technical feasibility of completing the intangible asset so that it will be available for use or sale of the intangible asset.

- Company has ability to reliably measure the expenditure attributable to the intangible asset during its development.

Technology under development is not depreciated until the asset is brought into commercial use.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. In current year, there is no pensionable employee.

Cash and cash equivalent

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Equipment - 15% straight line

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

3.

REVENUE

The revenue and loss before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2024

2023

£

£

Augment technology services

149,964

84,922

149,964

84,922

An analysis of revenue by geographical market is given below:

2024

2023

£

£

United Kingdom

80,156

84,922

Europe

69,808

-

149,964

84,922

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

170,649

164,528

Social security costs

27,560

27,234

Other pension costs

709

-

198,918

191,762

The average number of employees during the year was as follows:

2024

2023

Staff

4

3

It is the policy of the Company to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the Company and adequate opportunities for internal promotion are created. The Board is committed to a systematic training policy and has a comprehensive training and development potential to a maximum level of attainment. In this way, staff will make their best possible contribution to the organization's success.

The Company supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender or gender reassignment, marital status or disability. It is also the policy of the Company, where possible, to give sympathetic consideration to disabled persons in their application for employment with the Company and to protect the interests of existing members of the staff who are disabled. The company has made the necessary provision for allowing employees to work remotely and be connected to the company intranet.

The Company has in place an Equity Incentive Plan (EIP) for eligible employees, directors, officers and consultants to encourage them to make significant and extraordinary contribution to the performance and growth of the Company. The EIP extends to the Company's subsidiary, SkillAugment Lda.

2024

2023

£

£

Directors' remuneration

45,576

117,753

5.	OPERATING LOSS

The operating loss is stated after charging:

2024

2023

£

£

Depreciation - owned assets

7,300

4,814

Development costs amortisation

15,431

15,667

Auditors' remuneration

3,750

3,750

Foreign exchange differences

6,114

1,873

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(28,596

)

-

Deferred tax

6,388

-

Tax on loss

(22,208

)

-

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Loss before tax

(329,813

)

(512,413

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

(82,453

)

(128,103

)

Effects of:

Capital allowances in excess of depreciation

(2,320

)

(343

)

Losses not recognised

84,773

128,446

Movement on deferred Tax

6,388

-

R&D Relief From HMRC

(28,596

)

-

Total tax credit

(22,208

)

-

7.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 January 2024

227,557

Additions

3,923

At 31 December 2024

231,480

AMORTISATION

At 1 January 2024

30,837

Amortisation for year

15,431

At 31 December 2024

46,268

NET BOOK VALUE

At 31 December 2024

185,212

At 31 December 2023

196,720