The directors present the strategic report for the year ended 30 June 2025.

Loss for the year

There was a loss for the financial year amounting to (£3,075,597), (2024: (£1,624,602)).

Kinomica Limited was founded to commercialise and further develop novel precision medicine technologies. The Company was incorporated as Prognostics Limited on 1 October 2016 and changed its name to Kinomica Limited on 16 May 2017. A flagship innovation is the KScan® platform based on advanced phosphoproteomics and proprietary bioinformatics including sophisticated machine learning algorithms which facilitate a new more accurate class of diagnostics based on cellular kinase activity profiles with application to tailoring therapies according to a patient's molecular diagnosis.

In addition to conducting its own R&D programmes, the company provided KScan® access to pharmaceutical and biotechnology companies for use in their diagnostics and therapeutic development projects on a contract research basis up until January 2022. Thereafter the company ceased contract research to focus solely on developing its own game changing diagnostics, which once developed and clinically validated it will seek to take to market either independently or in partnership with incumbent diagnostic companies.

The company’s mission and key differentiator is to develop diagnostic tests that are highly predictive of how an individual will respond to a range of different therapeutic options, breaking the paradigm of single therapy companion diagnostics and thereby substantially aiding and improving the medical decision-making process.

To date the Company has been funded by a combination of equity investment, grant funding, and revenue from pharmaceutical and biotechnology companies.

The main risks and uncertainties facing Kinomica Limited are as follows:

Research & Development

R&D is an inherently uncertain activity. The company has recruited a highly skilled team of scientists and engineers, adopted appropriate R&D methods, and has management with skills and experience to manage these risks and enable execution of the company’s business model.

Principal Activities

The company’s principal technology is KScan®, which can directly link kinase molecular activity with kinase inhibitor treatment, enabling accurate identification of patient responders to therapy. The aim is to use KScan® derived biomarkers as a clinical diagnostic that is highly predictive of how an individual will respond to a range of different therapeutic options for a particular disease.

It will take some time to build out the functionality of the KScan® platform such that it is able to address multiple different diseases. Our strategy is therefore to first prove the utility and value of KScan® derived diagnostics tests in three disease indications, namely Acute Myeloid Leukaemia (AML), Hepatocellular Carcinoma (HCC) and Breast Cancer (BC).

Currently the major overall KPI used in the business is the cash position which is monitored closely.

At the beginning of each financial year, the Company will prepare a forecast, incorporating a budget for the forthcoming financial year, detailing the projected R&D spend required to achieve the company’s technical and clinical objectives in the period. This forecast is reviewed on a monthly basis and cash is controlled accordingly.

Non-financial KPIs are:

• Technical milestones on the company’s KScan® development roadmap

• Clinical validation milestones on the company’s AML, HCC and BC diagnostics development roadmap

• Regulatory milestones on the company’s AML diagnostic development roadmap

• Strengthening of the team and organizational culture, including the recruitment of eminent clinical and business advisors

The new financial year has started in line with forecast expectations. Manpower, capital, and facility resources are in place to deliver on the business plan.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2025.

The principal activity of the company continued to be that of a research and development company.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The directors and officers and corporate risks are covered by a Management Liability insurance policy maintained by the Company with Generis Underwriting Limited, on behalf of AXA Insurance UK plc from 09 November 2025 and is still in place at the date of approval of these financial statements.

The Company's financial instruments comprise cash and liquid resources such as trade debtors and trade creditors that arise directly from its operations. On 24 August 2021 a UK government CBILS loan under a 4-year HP agreement was entered into to part finance a mass spectrometer and robotic pipettor. On 27 June 2023 Kinomica has taken another 4-year HP agreement to purchase another mass spectrometer. Both HP agreements were fully settled in January and February 2025 respectively. The Board reviews and agrees policies for managing each of the risks associated with interest rate, liquidity, and foreign currency. It is the Company's current policy that no trading in financial instruments shall be undertaken.

Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The Company’s exposure to credit risk is mainly influenced by the default risk inherent within the industry in which it operates. The Company’s main debtor is a government body therefore there is no perceived risk.

Market risk is the risk that changes in the market prices, such as foreign exchange rates and interest rates will affect income. The objective of market risk management is to manage and control market risk within acceptable parameters. The Company does this by minimising exposure to foreign currency movements through contracting in pounds sterling wherever possible, matching foreign currency income with expenditure and minimising overdrafts and loans always. The Company’s main foreign exchange risk relates to movements in sterling/US dollar and Euro exchange rate. Movements in the rate impact the translation of sterling outflows.

The Company finances its operations through equity, grant income and revenues.

As at the end of the year, the Company held cash balances of the equivalent of £66 in EUR. There were no bank borrowings.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure that it will always have sufficient funding to meet its liabilities when due, under both normal and stressed conditions.

The Company prepares cash forecasts regularly to monitor the anticipated future cash flows of the business and allows actions to be taken well in advance of any potential liquidity problem.

Azets Audit Services were re-appointed as auditors at a board meeting on 17 June 2025.

The directors are responsible for preparing the annual report 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

• make an assessment of the company's ability to continue as a going concern.

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.

Each director in office at the date of approval of this annual report confirms that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

• the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

The Directors have prepared detailed cash flow forecasts to satisfy themselves that the company will be able to operate for the foreseeable future and therefore that it is reasonable to adopt the going concern basis of preparation in the financial statements.

Such forecasts consider the operating expenditures, the access to funding, the ability to secure additional investment and possible mitigating actions to reduce the cost base.

In common with many businesses at this stage of development the company is dependent upon additional funding being obtained before the end of the going concern period. Whilst there is no reason to suggest that such funding will not be forthcoming it has currently not been secured and this indicates the existence of an uncertainty which may cast significant doubt about the company’s ability to continue as a going concern. The financial statements do not include adjustments that would result if the company was unable to continue as a going concern.

We have audited the financial statements of Kinomica Limited (the 'company') for the year ended 30 June 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its loss for the year then ended;

• have been properly prepared in accordance with UK adopted international accounting standards; 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 Auditor's 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.

Material uncertainty in relation to going concern

We draw attention to note 1.2 in the financial statements, which indicates uncertainty over funding and future cash flows of the company. As stated in note 1.2 these events and conditions indicate a level of uncertainty exists that may cast doubt on the company's ability to continue as a 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. Our evaluation of the directors’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included a review of future forecasts and an assessment of the entities ability to obtain future funding.

Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report has been prepared in accordance with applicable legal requirements.

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 directors' report.

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

• adequate accounting records have not been kept, 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The notes on pages 14 to 33 form part of these financial statements.

The notes on pages 14 to 33 form part of these financial statements.

Kinomica Limited is a private company limited by shares incorporated in England and Wales. The registered office is Biohub Alderley Park, Alderley Edge, Macclesfield, Cheshire, United Kingdom, SK10 4TG. The company's principal activities and nature of its operations are disclosed in the strategic report.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention with the exception of share based payments held at fair value. The principal accounting policies adopted are set out below.

The Directors have prepared detailed cash flow forecasts to satisfy themselves that the company will be able to operate for the foreseeable future and therefore that it is reasonable to adopt the going concern basis of preparation in the financial statements. true

Such forecasts consider the operating expenditures, the access to funding, the ability to secure additional investment and possible mitigating actions to reduce the cost base.

In common with many businesses at this stage of development the company is dependent upon additional funding being obtained before the end of the going concern period. Whilst there is no reason to suggest that such funding will not be forthcoming it has currently not been secured and this indicates the existence of an uncertainty which may cast significant doubt about the company’s ability to continue as a going concern. The financial statements do not include adjustments that would result if the company was unable to continue as a going concern.

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Licences

The £360,000 cost of licences relates to the 2019 assignment. On 9 July 2019, in exchange for equity, QMUL granted to Kinomica an exclusive licence to develop and commercialise certain patents and Know-How in the field. Under the QMUL licence, QMUL assigned absolutely with full title the patents and Know-How associated with the licence, with effect from 11 December 2020 on completion of the Series A fund raise.

Amortisation of the licence is charged to Administrative Expenses, on a straight-line basis over twenty years, within the Income Statement.

Patents and Trademarks

Patents are valued at cost less accumulated amortisation. Trademarks are valued at cost and not amortised.

The cost is that paid to patent attorneys and to IP registration bodies to build and maintain the IP portfolio.

The maximum patent term for both Europe and US will be 20 years from the date of filing. Supplementary protection certificates can extend this term in Europe for certain medicinal products subject to a Marketing Authorisation. Patent Term Extension can extend this term in the US to compensate for patent office delays.

The amortisation of patents is over the remaining useful life from the date of grant.

On an annual basis, or if a Patent or Trademark is abandoned, the Directors review the carrying value of the Intangible Assets.

If it is determined that the future revenue streams generated from the asset do not cover the current carrying value, the asset should be impaired.

Impairment and amortisation of the patents is charged to Administrative Expenses, within the Income Statement.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Cost consists of the initial purchase price of the asset excluding VAT plus any additional costs incurred in installation or set up.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 recognised in the income statement.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

The Company operates three equity settled share-based option schemes:

- The EMI share option scheme for eligible employees and directors.

- The NTA share option scheme for non-eligible employees to join the EMI scheme; and

- Other share option scheme for non-employees.

The schemes allow participants to acquire shares of the Company at current and/or future dates at a price that is known as the subscription price per share.

When options have been granted in lieu of cash settlements, the value of the equity settled share options granted is recognised as an expense with a corresponding increase in equity.

For other grants the value is determined as being the intrinsic value, being the fair value of the shares at the balance sheet date less the subscription price. This must be measured at the date of grant and at each reporting date until final settlement. The fair value adopted for the current year end is £8 per share which is the subscription price for the most recent investment on 24 July 2024.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset (when there is a right to purchase) or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

Government grants are recognised in income when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Borrowing costs

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

Certain new accounting standards and amendments to accounting standards have been published that are not

mandatory for 29 November 2024 reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new standards and amendments is set out below:

IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements.

No other new standards are expected to have a material impact on the group accounts.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

IFRS 2 requires that share-based payment transactions be measured at fair value for both listed and unlisted entities. If the fair value cannot be reliably measured, IFRS 2 permits the use of intrinsic value, being the fair value of the shares less the subscription price. This must be measured at the date of grant and at each reporting date until final settlement.

The Directors have adopted this method as Kinomica Limited is an unlisted entity without a readily available market price. £8.00 has been applied as the appropriate fair value, being the latest subscription value for the 24 July 2024 investment.

For the financial year 2025 a charge of £611,123 (2024: £198,145) has been made to income with a corresponding net reduction to reserves. The balance on the share option reserve at the end of the financial year was £1,560,740 (2024: £949,617 ).

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Note - Wages and salaries includes share-based payment expenses of £611,123 (2024: £198,145).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

Note - Directors' remuneration excludes share-based payment expenses of £233,400 (2024: £119,588).

The charge for the year can be reconciled to the loss per the income statement as follows:

Property, plant and equipment includes right-of-use assets, as follows:

Deposits relate to lease deposits repayable.

The above balances are all non-financial istruments

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

During the year the company early settled all loans with Close Brothers.

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values. The carrying amount of financial liabilities as at the year end is £188,973 (2024: £552,119).

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

In the above note trade payables and accruals are financial instruments held at amortised cost with the remaining balance being non financial instruments.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

All leases relate to right of use assets for office and laboratory space.

In the previous year the average lease term was 2 years with the average effective borrowing rate for the year ended 30 June 2023 being 3.56%. These leases expired during the year.

A new 5 year lease was agreed starting from September 2023 with the effective borrowing rate being 6.8%. Interest rates are fixed at the contract date. The lease is on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Options in shares

The Company operates three share-based option schemes:

21.1     The Kinomica Limited Employee Share Option Plan, EMI scheme;

21.2     The Kinomica Limited Employee Share Option Plan, NTA scheme; and

21.3    The Kinomica Limited Other Share Option Plan

For other grants the value is determined as being the intrinsic value, being the fair value of the shares at the balance sheet date less the subscription price. This must be measured at the date of grant and at each reporting date until final settlement. The fair value adopted for the current year end is £8 per share which is the subscription price for the most recent investment 24 July 2024.

The fair value of the options granted is recognised as an expense when granted if vesting immediately, or over the vesting period.

At 30 June 2025 the company has granted 292,885 share options which are unexercised. 20,000 are exercisable at a price of £0.37 per A ordinary share, 19,904 are exercisable at a price of £0.75 per A ordinary share, 24,750 are exercisable at a price of £0.80 per A ordinary share208,698 are exercisable at a price of £0.00001 per A ordinary share and 19,533 are exercisable at a price of £3.75 per A ordinary share.

21.1 EMI scheme

Options issued under the EMI option scheme are issued to employees, subject to the discretion of the directors for performance related achievements.

For the 16,000 options, the exercise of options within the scheme is not dependent on any performance criteria and may be exercised in whole or in part at any time and from time-to-time following issue.

A summary of all outstanding options issued under the scheme is shown below:

- 16,000 shares are vested and exercisable at a price of £0.37;

- 10,838 shares are vested and exercisable at a price of £0.75;

- 70,531 shares are vested and exercisable at a price of £0.00001;

- 138,167 shares are vested and will become exerciseable at a price of £0.00001;

- 6,970 shares are vested and will become exerciseable at a price of £0.00001;

- 12,563 shares are vested and exercisable at a price of £3.75;

Options are not exercisable later than the day prior to the tenth anniversary of the date of grant.

21.2 NTA Scheme

Where options have been issued to employees not eligible to participate in the EMI option scheme, they are issued into the NTA share option scheme A summary of all outstanding options issued under the scheme is shown below:

A summary of all outstanding options issued under the scheme is shown below:

- 2,000 shares are vested and exercisable at a price of £0.37.

Options are not exercisable later than the day prior to the tenth anniversary of the date of grant.

21.3 Other Scheme

Where options have been issued to non-employees not eligible to participate in the EMI or NTA option scheme, they are issued into the Other share option scheme.

A summary of all outstanding options issued under the scheme is shown below:

- 2,000 shares are vested and exercisable at a price of £0.37;

- 7,281 shares are vested and exercisable at a price of £0.75;

- 4,816 shares are vested and exercisable at a price of £0.8;

- 19,934 shares will vest and become exercisable at a price of £0.80;

- 1,785 shares will vest and become exercisable at a price of £0.75.

Options are not exercisable later than the day prior to the anniversary of the date of grant.

During the year 580,375 ordinary shares were issued.

Other reserves represent the share option reserve.

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

Amounts recognised in the profit and loss relate to interest and depreciation.

The company is not subject to any externally imposed capital requirements.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The Company’s exposure to credit risk is mainly influenced by the default risk inherent within the industry in which it operates. The Company’s main debtor is a government body therefore there is no perceived risk.

Market risk

Market risk is the risk that changes in the market prices, such as foreign exchange rates and interest rates will affect income. The objective of market risk management is to manage and control market risk within acceptable parameters. The Company does this by minimising exposure to foreign currency movements through contracting in pounds sterling wherever possible, matching foreign currency income with expenditure and minimising overdrafts and loans always. The Company’s main foreign exchange risk relates to movements in sterling/US dollar and Euro exchange rate. Movements in the rate impact the translation of sterling outflows.

The Company finances its operations through equity, grant income and revenues.

As at the end of the year, the Company held cash balances of the equivalent of £66 in EUR. There were no bank borrowings.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure that it will always have sufficient funding to meet its liabilities when due, under both normal and stressed conditions.

The Company prepares cash forecasts regularly to monitor the anticipated future cash flows of the business and allows actions to be taken well in advance of any potential liquidity problem.

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

There were no termination or other benefits. Short term benefits represent gross salary excluding employers' national insurance contributions.

Share based payments

During the year directors of the company received share based payments from companies over which they have control totalling £110,427 (2024: £2,450).

Fees

During the year directors of the company charged consultancy fees from companies over which they have control totalling £84,037 (2024: £39,427). At the year end amounts owed to these companies totalled £17,707 (2024: £10,489).

During the year key management personnel of the company charged consultancy fees from companies over which they have control totalling £90,945 (2024: £76,110). At the year end amounts owed to these companies totalled £9,954 (2024: £7,812).