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Registered number: 10898641
ARGONON USA LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARGONON USA LTD
COMPANY INFORMATION
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J Attawia (appointed 28 March 2025)
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L Bessell (resigned 14 March 2025)
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Ecovis Wingrave Yeats LLP
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Chartered Accountants & Statutory Auditor
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3rd Floor, Waverley House
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ARGONON USA LTD
CONTENTS
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Statement of financial position
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Notes to the financial statements
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ARGONON USA LTD
REGISTERED NUMBER: 10898641
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 September 2025.
The notes on pages 2 to 10 form part of these financial statements.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Argonon USA Ltd is a private company limited by shares, incorporated in England and Wales. The Company's registered office is 1-3 St Peter's Street, London, N1 8JD.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis as the ultimate parent company, Argonon Ltd, has confirmed that it will provide such financial support as necessary to the Company to enable it to continue to meet its liabilities as they fall due.
The directors have considered the future funding requirements of the business and, based on management forecasts, have concluded that the Company will have sufficient funds to ensure that it can meet its financial liabilities as and when they fall due, for a period of at least 12 months from the date of signing these financial statements.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Equipment - 33 1/3% straight line
Leasehold improvements - Straight line over useful life
Fixtures & fittings - 33 1/3% reducing balance
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into sterling at the rate on the date of the transaction.
Exchange gains and losses are recognised in the Statement of comprehensive income.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Production
Turnover recognised in the Statement of comprehensive income represents amounts receivable for the work carried out in producing television programmes and is recognised over the period of the production. In respect of long term production contracts, revenue is included based on the proportion of costs incurred to date over total costs. Provision is made for any losses as soon as they are foreseen
Distribution
The Company also receives revenues earned during the period through the distribution of film and television programmes.
Turnover is stated net of value added tax.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Full provision is made for deferred tax assets and liabilties arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax asset and liabilities are calculated at the tax rates expected to be effective at the time
the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Cash and cash equivalents
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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.
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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial
position when there is an enforceable right to set off the recognised amounts and there is an
intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Revenue recognition
Revenue from production services for third parties is recognised on a percentage-of-completion basis. Percentage-of-completion is based upon the proportion of costs incured in the current period to total expected costs. The total expected costs on each production are reviewed by management on a regular basis.
Depreciation of tangible fixed assets
Fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and product life cycles are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Treatment of loan
A loan facility has been made available to Rose Rock Entertainment LLC (“Rose Rock”), a subsidiary of the Company. At the year end the total amount loaned to date was £866,181. The loan was provided interest-free.
The loan is considered a complex financial instrument since there are no provisions within the loan agreement to protect the lender from losing the full principal of the loan. The loan is due for repayment as and when Rose Rock generates future profits. There is therefore judgment involved in forecasting the future profitability of Rose Rock in order to determine the timing of those repayments. At the time of signing additional advances totalling $531,209 (£427,628) have been made available. It is expected that an additional advance of $124,000 will be provided for the remainder of 2025. From there, based on the current cash-flow projections and production pipeline, the Directors are confident that Rose Rock will be able to repay the loan in full by Q1 2026. As a result, no amounts are expected to be recovered in 2024, with full recoupment within more than one year, therefore the loan has been presented as falling due within more than on year (see note 9).
The loan sums provided are interest-free. As part of calculating the fair-value of the loan, management needed to consider a market-rate of interest. The accounting standards stipulate that the loan should be recorded on initial recognition at the present value of the future payments discounted at a market rate of interest for a similar instrument. Given that Rose Rock is a newly incorporated entity, with no track record of production, the Directors concluded that they were unable to determine an appropriate market rate of interest and therefore a risk-free rate of return has been used to discount the loan to present value. The fair value impact should go through the profit and loss account. The financial impact for the current financial year is not considered to be material therefore has not been recognised in these financial statements.
Recoverability of Intercompany Debtors
The director reviews amounts owed by group companies with a view to providing for these where there is uncertainty regarding the recoverability of these balances. Given that the ultimate parent company has provided confirmation that they will guarantee all amounts owed by group companies.
Where balances are owed by newly or recently incorporated group companies, the directors apply judgement in determining the recoverability of the balance outstanding and the timing of repayment is solely dependent upon the expected future profitability of the group company with which balances are outstanding.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The average monthly number of employees, including directors, during the year was 2 (2023 - 2).
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Long-term leasehold property
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Charge for the year on owned assets
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
Name Registered office Principal activity Holding
Rose Rock Entertainment LLC USA Television Production 51%
The registered address of Rose Rock Entertainment LLC is 3611 Motor Avenue, Los Angeles, USA, CA 90034. Rose Rock Entertainment LLC is a Limited Liability Company registered in the USA.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Amounts owed to group undertakings are interest free, unsecured and repayable on demand.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Allotted, called up and fully paid
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1 (2023 - 1) Ordinary share of £1.00
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Rights of shares:
The shares allotted above have full voting, dividend and capital distribution rights.
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Retained earnings
Includes all current and prior period retained profits and losses.
A cross guarantee is in place between Argonon Ltd and it's subsidiary undertakings with Barclays Bank Plc.
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ARGONON USA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Related party transactions
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During the year the Company provided loans totalling £407,995 (2023 - £210,285) to a subsidiary. As at the year end loans outstanding were £866,181 (2023 - £458,186). Please see note 9 for further details.
Argonon USA Ltd have taken the exemption under FRS 102, Section 33 Related Party Disclosures paragraph 33.1A, whereby the Company is not required to disclose transactions between two or more members of a group, provided that they are wholly owned.
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Ultimate parent undertaking and controlling party
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The ultimate and immediate parent company is Argonon Ltd, a company registered in England and Wales. Copies of the group financial statements can be obtained from that company's registered office at 1-3 St Peter's Street, London, N1 8JD. This is the smallest and largest group for which group financial statements are prepared in respect of the entity.
The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.
The audit report was signed on 26 September 2025 by Kate Barekati (Senior statutory auditor) on behalf of Ecovis Wingrave Yeats LLP.
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