REGISTERED NUMBER: 04260219 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

IRED LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

A Singhvi

L Masse

D E Heath

SECRETARY:

L Masse

REGISTERED OFFICE:

Unit 6 The Old Flour Mill

Queen Street

Emsworth

PO10 7BT

REGISTERED NUMBER:

04260219 (England and Wales)

AUDITORS:

Lewis Brownlee (Chichester) Limited

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

FIXED ASSETS

Tangible assets

4

162,767

118,326

CURRENT ASSETS

Stocks

122,635

73,401

Debtors

5

615,686

372,253

Cash at bank and in hand

208,327

73,440

946,648

519,094

CREDITORS

Amounts falling due within one year

6

1,297,258

418,823

NET CURRENT (LIABILITIES)/ASSETS

(350,610

)

100,271

TOTAL ASSETS LESS CURRENT LIABILITIES

(187,843

)

218,597

CREDITORS

Amounts falling due after more than one year

7

(20,943

)

(75,880

)

PROVISIONS FOR LIABILITIES

-

(6,438

)

NET (LIABILITIES)/ASSETS

(208,786

)

136,279

CAPITAL AND RESERVES

Called up share capital

2,041

2,041

Share premium

98,959

98,959

Retained earnings

(309,786

)

35,279

SHAREHOLDERS' FUNDS

(208,786

)

136,279

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

A Singhvi - Director

1.	STATUTORY INFORMATION

iRed 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.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentational currency of the financial statements is Pound Sterling (£) which is rounded to the nearest Pound (£).

Going concern

The financial statements have been prepared on a going concern basis.

The company has reported a loss for the year and at the balance sheet date was in a net current liabilities position.Post the balance sheet date the company is pleased to have seen an increase in sales and gross profit, and a reduction in the operating loss generated. However, the company remains in a net current liabilities and overall net liabilities position, including significant balances due to and from fellow group companies. The company expects to incur further operating losses in the short term with the continued ramp up of business activities to service evolving market demands in a nascent industry.

The company's ability to continue as a going concern is dependent upon the company's parent company, Volatus Aerospace Corp., continuing to provide financial support. Additional funding has now been secured at group level. Volatus Aerospace Corp. has confirmed that it intends to provide financial support to enable the company to meet its liabilities as and when they fall due for at least 12 months after the approval of these financial statements. The directors believe that Volatus Aerospace Corp. has adequate resources to continue to provide a sufficient level of support and based on this, the provision of a letter of support and current and previous actual provision of support, the directors consider it appropriate to prepare financial statements on the going concern basis.

The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. These financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the company were unable to realise its assets and settle its liabilities as a going concern in the normal course of business. Such adjustments could be material.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on dispatch of goods, and when the services have been provided.

Grant income

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, on the average costing method, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial instruments are classified by the director as basic or advanced following the conditions in FRS 102 section 11. Basic financial instruments are recognised at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company has no advanced financial instruments.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Share-based payments

Certain employees of the company are awarded share options in the ultimate parent company, Volatus Aerospace Inc. within a share option scheme. Each tranche is an award and is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. The compensation expense, and related parent company capital contribution, would be recognised over the tranche's vesting period based on the number of awards expected to vest. However, the directors believe the calculated charge is not material so the financial statements have not been adjusted to reflect this. The number of awards expected to vest is reviewed over the vesting period, with any forfeitures recognised immediately. The number of options outstanding at the year end was 30,000 (2023: 110,000).

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2023 - 15 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

156,212

140,429

29,344

32,885

358,870

Additions

59,214

-

21,111

2,140

82,465

At 31 December 2024

215,426

140,429

50,455

35,025

441,335

DEPRECIATION

At 1 January 2024

104,348

108,912

6,634

20,650

240,544

Charge for year

19,135

6,298

8,762

3,829

38,024

At 31 December 2024

123,483

115,210

15,396

24,479

278,568

NET BOOK VALUE

At 31 December 2024

91,943

25,219

35,059

10,546

162,767

At 31 December 2023

51,864

31,517

22,710

12,235

118,326

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2024

29,344

Additions

21,111

At 31 December 2024

50,455

DEPRECIATION

At 1 January 2024

6,634

Charge for year

8,762

At 31 December 2024

15,396

NET BOOK VALUE

At 31 December 2024

35,059

At 31 December 2023

22,710

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

214,179

48,217

Amounts owed by group undertakings

304,978

161,465

Other debtors

96,529

162,571

615,686

372,253

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

10,397

30,562

Hire purchase contracts (see note 8)

13,132

5,858

Trade creditors

62,551

50,106

Amounts owed to group undertakings

891,148

39,117

Taxation and social security

182,708

28,863

Other creditors

137,322

264,317

1,297,258

418,823

Hire purchase contracts are secured on the assets concerned.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans

4,409

14,806

Hire purchase contracts (see note 8)

16,534

15,141

Other creditors

-

45,933

20,943

75,880

Included within other creditors is a total of £nil (2023: £90,423) due to an individual who was a director during the prior year. £nil (2023: £44,490) is included within amounts falling due within one year. £nil (2023: £45,933) is included within amounts falling due after more than one year. The loan was unsecured, incurred interest at 5% per annum, and repaid within the year.

Hire purchase contracts are secured on the assets concerned.

8.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

Hire purchase

contracts

2024

2023

£

£

Net obligations repayable:

Within one year

13,132

5,858

Between one and five years

16,534

15,141

29,666

20,999

At 31 December 2024, the company had total commitments under non-cancellable operating leases over the remaining life of those leases of £29,077 (2023: £29,708).

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Sam Ede BFP FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lewis Brownlee (Chichester) Limited

10.	PENSION COMMITMENTS

At the balance sheet date the company had an outstanding pension contributions liability of £4,459 (2023: £3,224).

11.	RELATED PARTY DISCLOSURES

The ultimate controlling party are the directors of Volatus Aerospace Inc. The parent company is Volatus Aerospace Corp., which prepares group financial statements. The registered office of Volatus Aerospace Corp. is 60 Airport Road, Oro Medonte, Ontario L0L 2E0, Canada.