ACCOUNTS - Final Accounts

SHARE-BASED PAYMENTS

As restated

Registered number: 12420619

BROKEN STRING BIOSCIENCES LIMITED

UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2024

BROKEN STRING BIOSCIENCES LIMITED

REGISTERED NUMBER: 12420619

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

FIXED ASSETS
Tangible assets	4		633,849		402,848
			633,849		402,848
CURRENT ASSETS
Stocks		11,860		-
Debtors: amounts falling due within one year	5	1,352,284		802,469
Cash at bank and in hand		6,348,120		5,938,082
		7,712,264		6,740,551
Creditors: amounts falling due within one year	6	(565,677)		(415,725)
NET CURRENT ASSETS			7,146,587		6,324,826
TOTAL ASSETS LESS CURRENT LIABILITIES			7,780,436		6,727,674
Creditors: amounts falling due after more than one year	7		(152,728)		(16,830)

NET ASSETS			7,627,708		6,710,844

CAPITAL AND RESERVES
Called up share capital	8	294	233
Share premium account		15,828,101	9,706,628
Other reserves		222,093	4
Profit and loss account		(8,422,780)	(2,996,021)
		7,627,708	6,710,844

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BROKEN STRING BIOSCIENCES LIMITED

REGISTERED NUMBER: 12420619

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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 profit and loss account 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 by:

F Dobbs

Director

Date: 19 September 2025

The notes on pages 3 to 11 form part of these financial statements.

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BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	GENERAL INFORMATION

Broken String Biosciences Limited is a private company limited by shares and incorporated in England and Wales. Its registered office address is Suite 7, Science Village, Chesterford Research Park, Little Chesterford, Saffron Walden, CB10 1XL.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

GOING CONCERN

The financial statements have been prepared on a going concern basis. The trading losses reported to date are consistent with the Company’s business plan as it continues to progress its research and development activities.
The directors note that the Company is currently in the process of closing an equity financing and is actively engaged in discussions with existing investors. Presentations have been made to the investment committees of those investors, and the Company has received verbal indications of broad support to fund the business, providing financial runway through to 2027. While formal terms have not yet been received, they are expected in the coming weeks, with the financing anticipated to close by early Q4 2025.
In light of the progress made towards securing this funding, together with the development milestones achieved to date, the directors have a reasonable expectation that the Company will be able to meet its liabilities as they fall due for the foreseeable future and therefore continue to adopt the going concern basis in preparing the financial statements.

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BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.3

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, cash and cash equivalents and all other foreign exchange gains and losses are presented in the Profit and Loss Account within 'administration expenses'.

2.4

TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

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

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

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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BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.5

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:

Leasehold improvements	-	5 years straight-line
Plant and machinery	-	3 and 5 years straight-line
Office equipment	-	3 years straight-line
Computer equipment	-	3 years 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.

2.6

DEBTORS

Short-term debtors are measured at transaction price, less any impairment.

2.7

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.

2.8

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.

2.9

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.

2.10

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.

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BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.11

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 balance sheet 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 Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

2.12

TAXATION

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.

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BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.13

STOCKS

Stocks represent raw materials held at the end of the financial year. These 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 weighted average basis.

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.

EMPLOYEES

The average monthly number of employees, including directors, during the year was 29 (2023 - 14).

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		BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

	4.	TANGIBLE FIXED ASSETS

	Leasehold improvements	Plant and machinery	Office equipment	Computer equipment	Total
	£	£	£	£	£
COST
At 1 January 2024	68,566	406,445	15,198	55,034	545,243
Additions	6,169	454,941	23,399	26,808	511,317
Disposals	-	(40,329)	-	-	(40,329)
At 31 December 2024	74,735	821,057	38,597	81,842	1,016,231
DEPRECIATION
At 1 January 2024	9,252	107,854	6,189	19,100	142,395
Charge for the year on owned assets	14,392	220,194	11,159	22,793	268,538
Disposals	-	(28,551)	-	-	(28,551)
At 31 December 2024	23,644	299,497	17,348	41,893	382,382
NET BOOK VALUE
At 31 December 2024	51,091	521,560	21,249	39,949	633,849
At 31 December 2023	59,314	298,591	9,009	35,934	402,848

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BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

DEBTORS

					2024	2023
					£	£


Trade debtors	32,052	37,703
Other debtors	971,073	398,549
Prepayments and accrued income	349,159	366,217
	1,352,284	802,469

6.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2024	2023
		£	£

Trade creditors	229,328	201,799
Obligations under finance lease and hire purchase contracts	51,006	40,393
Other creditors	9,770	-
Accruals and deferred income	275,573	173,533
	565,677	415,725

Other creditors include contributions of £5,371 (2023 - £NIL) payable to the Company's defined contribution pension scheme at the balance sheet date.

7.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
		2024	2023
		£	£

	Net obligations under finance leases and hire purchase contracts	152,728	16,830

Page 9

BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	SHARE CAPITAL
		2024	2023
		£	£

ALLOTTED, CALLED UP AND FULLY PAID

1,087,841 (2023 - 1,086,957) Ordinary shares of £0.0001 each	108.78	108.70
498,196 (2023 - 498,196) Series Seed shares of £0.0001 each	49.82	49.82
1,356,801 (2023 - 743,413) Series A shares of £0.0001 each	135.68	74.34

	294.28	232.86

On 7 October 2024, the Company issued 613,388 Series A £0.0001 shares for a total consideration of £6,127,746.


Outstanding at the beginning of the year	63,339	65,012
Granted during the year	297,240	14,196
Expired during the year	(45,580)	(15,869)
Exercised during the year	(884)	-
OUTSTANDING AT THE END OF THE YEAR	314,115	63,339

					2024	2023

Weighted average remaining contractual life, years	9.11	8.74
Weighted average share price (£)	2.25	0.0001
Exercise price (£)	1.52	0.0001
Expected volatility	79.58%	79.04%
Expected option life, years	3	10
Risk-free interest rate	4.72%	4.37%

Page 10

BROKEN STRING BIOSCIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	POST BALANCE SHEET EVENTS

Subsequent to the balance sheet date, the Company was informed that, following the anticipated completion of a current research agreement in January 2026, there will be a period during which research activity will continue without the need for further payment by the Company. This is due to resources under the agreement not having been fully utilised during the expected term.
The Company has recognised the cost of the agreement on a straight-line basis over its expected term. Based on the information received, this has resulted in an overstatement of research and development expenditure of £27,067 in the current financial year, with a corresponding understatement of prepayments at the balance sheet date.
As the information relates to circumstances that arose after the balance sheet date and does not reflect conditions existing at that date, no adjustment has been made to the financial statements in accordance with FRS 102 Section 1A.

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