Augment_Risk_UK_Trading_L

Augment Risk UK Trading Limited

Directors' Report

For the year ended 31 December 2024

The directors present their report and the audited financial statements of Augment Risk UK Trading Limited ('the Company') for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the financial statements, in accordance with applicable law.

Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.

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 the financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

Principal activity

The Company's principal activity is reinsurance and risk capital solutions broking.

Results and dividends

The loss for the year, after taxation, amounted to £3,821,811 (2023 loss 13 month period £2,024,371).

The directors have not recommended a dividend (2023: £Nil).

Page 1

Augment Risk UK Trading Limited

Directors' Report (continued)

For the year ended 31 December 2024

Directors

The directors who served during the year were:

David George Ledger

Andrew Peter Matson

Louise Anne Miller

Adam Sayers

David Starforth Hill (appointed 2 August 2024)

Registered office

The Company changed its registered office on 20 June 2025 to No.1 Cornhill, London, England, EC3V 3ND.

Future developments

The directors do not foresee any changes to the current operations of the Company.

Going concern

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue to operate for the foreseeable future.

The Company is in its early growth stage of operations and incurred a net loss during the period. Despite these initial period losses, the Company's management has assessed its ability to continue as a going concern and believes there are no significant doubts regarding its capacity to continue operations. However, this assessment is subject to inherent uncertainties typical of earlystage companies, including but not limited to market appetite of the Company's services.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed 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 ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, Grant Thornton (NI) LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

David George Ledger

Director

Date:

24 September 2025

Page 2

Augment Risk UK Trading Limited

Independent Auditor's Report to the Shareholders of Augment Risk UK Trading Limited

Opinion

We have audited the financial statements of Augment Risk UK Trading Limited (the “Company”) which comprise the statement of financial position as at 31 December 2024 and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the period ended 31 December 2024, and the related notes to the financial statements, including a summary of material accounting policies.

The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and UKadopted international accounting standards (UKadopted IAS).

give a true and fair view in accordance with UKadopted IAS of the assets, liabilities and financial position of the Company as at 31 December 2024 and of its financial performance and cash flows for the period from 1 January 2024 to 31 December 2024; and

have been properly 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 ‘Responsibilities of the auditor 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 United Kingdom, including the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances for the entity. We have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 3

Augment Risk UK Trading Limited

Independent Auditor's Report to the Shareholders of Augment Risk UK Trading Limited (continued)

Other information

Other information comprises information included in the annual report, other than the financial statements and our auditor's report thereon, including the Directors' Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors' Report.

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

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

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit; or

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

Responsibilities of management and those charged with governance for the financial statements

As explained more fully in the Directors' responsibilities statement, management is responsible for the preparation of the financial statements which give a true and fair view in accordance with UKadopted IAS, and for such internal control as directors determine necessary to enable the preparation of financial statements are free from material misstatement, whether due to fraud or error.

Page 5

Augment Risk UK Trading Limited

Independent Auditor's Report to the Shareholders of Augment Risk UK Trading Limited (continued)

In preparing the financial statements, management is 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 management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Responsibilities of the auditor for the audit of the financial statements

The objectives of an auditor 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 their 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 an auditor's responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the Company and industry, we identified that the principal risks of noncompliance with laws and regulations related to compliance with Data Privacy law, Employment Law, Environmental Regulations, Pensions Legislation, Health & Safety and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the local law and tax/ Companies Act 2006 and UK tax legislation. The Audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had the appropriate competence and capabilities to identify or recognise noncompliance with the laws and regulation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant oneoff or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.

Page 5

Augment Risk UK Trading Limited

Independent Auditor's Report to the Shareholders of Augment Risk UK Trading Limited (continued)

In response to these principal risks, our audit procedures included but were not limited to:

enquiries of management and the board on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of noncompliance and whether they have knowledge of any actual, suspected or alleged fraud;

inspection of the company's regulatory and legal correspondence and review of minutes of board director's meetings during the year to corroborate inquiries made;

discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of noncompliance or opportunities for fraudulent manipulation of financial statements throughout the audit;

designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;

challenging assumptions and judgements made by management in their significant accounting estimates; and

review of the financial statement disclosures to underlying supporting documentation and inquiries of management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of nondetection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

The purpose of our audit work and to whom we owe our responsibilities

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.

Neal Taylor FCA (Senior statutory auditor)

for and on behalf of

Grant Thornton (NI) LLP

Chartered Accountants & Statutory Auditors

Belfast

Date:

24 September 2025

Page 6

Augment Risk UK Trading Limited

Statement of Profit or Loss and Other Comprehensive Income

For the year ended 31 December 2024

For the 13month period

Year ended

31 December

2024

2023

Note

3,354,088

2,199,617

Revenue

Operating expenses

(8,317,482)

(4,747,588)

_________

Loss from operations

(4,963,394)

(2,547,971)

_________

Loss before tax

(4,963,394)

(2,547,971)

Tax credit

1,141,583

523,600

_________

Loss for the year/period

(3,821,811)

(2,024,371)

Total comprehensive loss

(3,821,811)

(2,024,371)

________

The notes on pages 11 to 27 form part of these financial statements.

Page 7

Augment Risk UK Trading Limited

Registered number: 14525552

Statement of Financial Position

As at 31 December 2024

2024

2023

Note

Assets

Deferred tax assets

1,665,183

523,600

_________

1,665,183

523,600

Current assets

Trade and other receivables

11,217,671

2,190,938

Cash and cash equivalents

1,000

_________

Total assets

12,883,854

2,714,538

Liabilities

Current liabilities

Trade and other payables

13,930,035

4,738,908

_________

Total liabilities

13,930,035

4,738,908

_________

Net liabilities

(1,046,181)

(2,024,370)

________

Issued capital and reserves

Share capital

4,800,001

Retained earnings

(5,846,182)

(2,024,371)

_________

Total equity

(1,046,181)

(2,024,370)

________

The financial statements on pages 7 to 27 were approved and authorised for issue by the board of directors and were signed on its behalf by:

David George Ledger

Director

Date:

24 September 2025

The notes on pages 11 to 27 form part of these financial statements.

Page 8

Augment Risk UK Trading Limited

Statement of Changes in Equity

For the year ended 31 December 2024

Retained earnings

Share capital

Total equity

(2,024,371)

Loss for the period

_________

(2,024,371)

Total comprehensive loss for the 13month period

_________

Issue of share capital

_________

Total contributions by and distributions to owners

_________

31 December 2023

(2,024,371)

(2,024,370)

_________

At 1 January 2024

(2,024,371)

(2,024,370)

Loss for the year

(3,821,811)

_________

(3,821,811)

Total comprehensive income for the year

_________

Issue of share capital

4,800,000

_________

4,800,000

Total contributions by and distributions to owners

_________

At 31 December 2024

4,800,001

(5,846,182)

(1,046,181)

________

The notes on pages 11 to 27 form part of these financial statements.

Page 9

Augment Risk UK Trading Limited

Statement of Cash Flows

For the year ended 31 December 2024

For the 13month period 31 December 2023

2024

Note

Cash flows from operating activities

Loss for the year

(3,821,811)

(2,024,371)

Adjustments for

Income tax credit

(1,141,583)

(523,600)

________

(4,963,394)

(2,547,971)

Movements in working capital:

Increase in trade and other receivables

(4,226,733)

(2,190,937)

Increase in trade and other payables

9,191,127

4,738,908

________

Cash generated from operations

1,000

________

Net cash from operating activities

1,000

Net increase in cash and cash equivalents

1,000

________

Cash and cash equivalents at the end of the year

1,000

________

The notes on pages 11 to 27 form part of these financial statements.

Page 10

Augment Risk UK Trading Limited

Notes forming part of the financial statements

For the year ended 31 December 2024

Page

Reporting entity

Basis of preparation

Accounting policies

Functional and presentation currency

Accounting estimates and judgments

Revenue

Expenses by nature

Auditor's remuneration

Employees

10.

Tax expense

11.

Trade and other receivables

12.

Trade and other payables

13.

Share capital

14.

Reserves

15.

Financial instruments fair values and risk management

16.

Related party transactions

17.

Controlling party

18.

Notes supporting statement of cash flows

Page 11

Augment Risk UK Trading Limited

Notes forming part of the financial statements (continued)

For the year ended 31 December 2024

19.

Capital management

20.

Events after the reporting date

Page 12

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Reporting entity

Augment Risk UK Trading Limited (the 'Company') is a limited company incorporated in England and Wales. The Company's registered office is at 1 Cornhill, London, England, EC3V 3ND. The Company's principal activity is reinsurance and risk capital solutions broking. The current period accounts covers the year from 1 January 2024 to 31 December 2024. The prior period accounts covers the period from 6 December 2022 (incorporation date) to 31 December 2023.

Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on .

Details of the Company's accounting policies, including changes during the year, are included in note 3.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 5.

2.1 Changes in accounting policies

i) New standards, interpretations and amendments effective from 1 January 2024

Classification of Liabilities as Current or Noncurrent (Amendments to IAS 1);

Lease Liability in a Sale and Leaseback (Amendments to IFRS 16);

Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7);

These amendments to various IFRS standards are mandatorily effective for reporting periods beginning on or after 1 January 2024 and have therefore been adopted and do not have a significant impact on the Company's financial results or position.

Page 13

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Basis of preparation (continued)

ii)

New standards, interpretations and amendments not yet effective

The following new standards, interpretations and amendments, which are not yet effective and have not been adopted early in these financial statements, will or may have an effect on the Company's future financial statements:

Lack of Exchangeability (Amendments to IAS 21);

Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 7

and 9);

IFRS 18 Presentation and Disclosure in Financial Statements;

IFRS 19 Subsidiaries without Public Accountability: Disclosures.

The directors are currently assessing the impact of these new accounting standards and amendments. The directors do not expect any standards issued by the IASB, but not yet effective, to have a material impact on the Company.

Accounting policies

3.1

Going concern

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue to operate for the foreseeable future.

Page 14

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.2

Revenue

The Company's revenue arises principally from commissions and fees in providing reinsurance and risk capital services to clients. Revenue can vary depending on many factors, which can include the premium ceded by clients, the type of reinsurance coverage secured for the client, and the particular solutions provided to a client.

The Company follows the fivestep process under IFRS 15 in order to recognize the revenues:

1) Identifying the contract with the client.

2) Identifying the performance obligations in the contract.

3) Determining the transaction price.

4) Allocating the transaction price to each performance obligation.

5) Recognizing revenue when a performance obligation is satisfied.

During period, management considered the above steps to identify and recognize the relevant revenues. Management makes judgements and estimates to measure the progress towards completing performance obligations and therefore the realization rates of revenue.

Estimates of revenues and the progress towards satisfying performance obligations are assessed on a regular basis. Any resulting increases or decreases in estimated revenues are reflected in the accounts in the period in which the circumstances that give rise to the revision become known by management.

The Company does not expect to have contracts where the revenue recognized extends beyond one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

3.3

Foreign currency

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items denominated in foreign currency at yearend exchange rates are recognised in the Statement of comprehensive income.

Nonmonetary items are not retranslated at yearend and are measured at historical cost (translated using the exchange rates at the transaction date), except for nonmonetary items measured at fair value which are translated using the exchange rates at the date when fair value was determined.

3.4

Taxation

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

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax' as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Page 15

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.4

Taxation (continued)

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3.5

Financial instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Functional and presentation currency

These financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

Page 16

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Accounting estimates and judgments

Satisfaction of performance obligations

Management makes judgments and estimates to measure the progress towards satisfying performance obligations and therefore the realization rates of revenue.

Allowances for impairment of receivables

The management estimates the allowance for expected credit losses (ECLs) based on assessment of specific accounts where the Company has objective evidence comprising default in payment terms or significant financial difficulty that certain customers are unable to meet their financial obligations. In these cases, judgment used was based on the best available facts and circumstances including, but not limited to, the estimated recoverable amount.

Revenue

The following is an analysis of the Company's revenue for the year from continuing operations:

For the
13 month
period 31
December
2023
£

Year ended
31 December
2024
£

Sale of services

3,354,088

2,199,617

________

3,354,088

2,199,617

________

Analysis of revenue by country of destination:

For the
13 month
period 31
December
2023
£

Year ended
31 December
2024
£

United Kingdom

2,331,102

490,324

1,709,293

United States

1,022,986

________

2,199,617

3,354,088

________

Page 17

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Revenue (continued)

Timing of revenue recognition:

2,199,617

Services transferred over time

3,354,088

The Company applies the practical expedient in paragraph 121 of IFRS 15 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Revenue Sharing Arrangement

The Company is part of a Revenue Sharing Arrangement (the "RSA") with other Group companies. Revenue is reallocated across the Group via intercompany recharges based on each Company's input into a contract. Under IFRS 15 revenue is shown gross and has not been reduced for revenue earned by the Company that is subsequently reallocated to another Group company.

During the period the Company earned revenue of £2,331,102 (2023: 13 month period £490,324) directly from commissions and fees and £1,022,986 (2023: 13 month period £1,709,293) from intercompany accruals under the RSA.

During the period the Company accrued £7,978 (2023: 13 month period £211,822) by other Group companies under the RSA, this amount is presented under administrative expenses.

For the
13 month
period 31
December
2023
£

Year ended
31 December
2024
£

________

2,199,617

3,354,088

________

Page 18

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Expenses by nature

Professional

15,355

6,500

Difference on foreign exchange

221,435

(86,315)

Sundry expenses

45,100

Intercompany accrual

8,317,482

4,747,588

Intercompany recharge arrangement

The Company receives operating and administrative services from a related entity, Augment Risk Services UK Ltd. The intercompany accrual for such services were conducted in accordance with HMRC and OECD guidelines.

The scope of services were first identified in the respect of those providing a benefit to the Company. The transfer price relating to such services were calculated based on certain services on a passthrough basis and other services with a markup. Such transfer price was then accrued in the accounts.

During the year the Company accrued £8,027,616 (2023: 13 month period £4,615,581) for intercompany services under the intercompany recharge arrangement. Refer to Note 16 for further details.

For the
13 month
period 31
December
2023
£

Year ended
31 December
2024
£

4,827,403

8,035,592

________

Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:

For the
13 month
period 31
December
2023
£

Year ended 31 December 2024
£

Fees payable to the Company's auditor for the audit of the Company's financial statements

17,500

6,500

________

The Company has taken advantage of the exemption not to disclose amounts paid for nonaudit services as these are disclosed in the consolidated accounts of the parent Company.

Employees

The Company has no employees other than the directors, who did not receive any remuneration.

Page 19

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

10.

Tax

For the
13 month
period 31
December
2023
£

Year ended 31 December 2024
£

Deferred tax benefit

Origination and reversal of timing differences

(1,141,583)

(523,600)

________

(

523,600

)

Total deferred tax

(1,141,583)

________

10.1 Income tax recognised in profit or loss

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:

For the
13 month
period 31
December
2023
£

Year ended

31 December

2024

Loss for the year

(3,821,811)

(2,024,371)

Income tax credit

(1,141,583)

(523,600)

________

Income tax credit

(4,963,394)

(2,547,971)

________

Tax using the Company's domestic tax rate of 25% (2023 23.5%)

(1,240,849)

(598,773)

Group relief

89,185

75,173

Effect of changes in tax rate

10,081

________

Total tax credit

(1,141,583)

(523,600)

________

Changes in tax rates and factors affecting the future tax charges

There were no factors that may affect future tax charges.

Page 20

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

10.

Tax expense (continued)

10.2 Deferred tax balances

The following is the analysis of deferred tax assets presented in the statement of financial position:

For the 13month period

Year ended

31 December

2024

2023

Deferred tax assets

1,665,183

523,600

________

1,665,183

523,600

________

Recognised in profit or loss

Opening balance

Closing balance

2024

Deferred tax assets in relation to:

Tax losses carried forward

523,600

1,141,583

1,665,183

________

523,600

1,141,183

1,665,183

________

Recognised in profit or loss

Opening balance

Closing balance

2023

Deferred tax assets in relation to:

Tax losses carried forward

523,600

________

523,600

________

Page 21

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Trade and other receivables

11.

2024

2023

Current

Trade receivables

6,387,117

2,190,937

Trade receivables net

6,387,117

2,190,937

Unpaid share capital

Other receivables

4,830,554

Total current trade and other receivables

11,217,671

2,190,938

Included in trade and other receivables is an amount of $11,055,077 (2023: $1,702,289) due from related parties. Refer to Note 16 for further details.

All receivables held are short term, and creditors have been deemed as reliable and with a high likelihood of

settlement. The net value of trade receivables is considered a reasonable approximation of value.

Trade and other payables

12.

2024

2023

Current

Trade payables

13,011,134

4,732,408

Other payables

898,080

Accruals

20,821

6,500

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost

13,930,035

4,738,908

Total current trade and other payables

13,930,035

4,738,908

All trade payables amounting to $13,011,134 (2023: $4,732,408) are due to related parties. Refer to Note 16 for further details.

All amounts are shortterm. The carrying values of trade payables are considered to be a reasonable approximation of fair value.

________

Page 22

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

13.

Share capital

Authorised

2024

Number

Shares treated as equity

Ordinary shares of £1.00 each

4,800,001

________

4,800,001

________

Issued and fully paid

2024

Number

Ordinary shares of £1.00 each

At 1 January

Shares issued

4,800,000

________

4,800,001

________

At 31 December

________

Page 23

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

Reserves

14.

Retained earnings

Retained earnings includes all current period retained profits and losses.

15.

Financial instruments fair values and risk management

15.1 Financial risk management objectives

The Company is exposed to certain risks in relation to financial instruments. The financial assets and liabilities of the Company are summarized by category in notes 11 and 12. Risk management is coordinated by the Company's management team in close cooperation with the board of directors. As the Company is in its startup phase, the focus of the Company's risk management is to maintain liquidity while continuing to invest in growth to develop and deliver reinsurance and risk capital solutions.

The Company does not actively engage in the trading of financial instruments. The most significant financial risks to which the Company is exposed are market risk (including currency risk), credit risk, and liquidity risk.

15.2 Market risk

Market risks arise from open positions in interest rate and currency products, which would be exposed to general and specific market movements. The Company manages market risk through periodic estimation of potential losses that could arise from adverse changes in market conditions.

In particular, the Company is exposed to effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. The Company earns the bulk of revenues in US dollars (USD), Pounds Sterling (GBP), and Euro (EUR). Operating expenses of the Company are primarily paid in USD and GBP.

To mitigate the Company's exposure to foreign currency risk, the exchange rates amongst these key currencies are monitored regularly. A significant fluctuation in any one of these exchange rates could have an adverse effect on the financial position of the Company.

15.3 Credit risk management

Credit risk is the risk that a counterparty may fail to discharge an obligation to the Company. The Company is exposed to credit risk from financial assets held at banks, as well as from trade and other receivables.

The Company continuously monitory. A significant fluctuation in any one of these exchange rates could have an adverse effect on the financial position of the Company.

Credit risk managements potential defaults of clients and other counterparties, identified either individually or by group. In general, the Company's clients are financially solid insurance companies which are heavily reliant on the Company's reinsurance and risk capital solutions. Therefore, by nature the clients are typically creditworthy counterparties. None of the Company's financial assets are secured by collateral or other credit enhancements.

Page 24

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

15.

Financial instruments fair values and risk management (continued)

15.4 Liquidity risk management

Liquidity risk refers to the availability of sufficient funds to financial obligations as they actually fall due.

The Company regularly monitors expected future cash flows to assess the cash position, and evaluates the

impact of various cash flow scenarios. Given the Company's startup phase, the liquidity risk is subject to

inherent uncertainties typical of earlystage companies, including but not limited to market appetite of the

Company's reinsurance and risk capital services.

Related party transactions

16.

Details of transactions between the Company and its related parties are disclosed below.

16.1 Trading transactions

During the year, the Company entered into the following trading transactions with related parties:

Revenue

sharing/

inter

Revenue

company

sharing

recharges

2024

Augment Risk Services UK Limited

8,027,616

Augment Risk Services LLC

1,022,987

7,976

________

1,022,987

8,035,592

________

During the prior period, the Company entered into the following trading transactions with related parties:

Revenue

sharing/

inter

Revenue

company

sharing

recharges

2023

Augment Risk Services UK Limited

4,615,581

Augment Risk Services LLC

1,709,293

211,822

________

1,709,293

4,827,403

________

Page 25

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

16.

Related party transactions (continued)

16.1 Trading transactions (continued)

The following balances were outstanding at the end of the reporting period:

Amounts owed by related parties

Amounts owed to related parties

2024

Augment Risk Services LLC

6,255,077

241,960

Augment Risk Services UK Limited

4,800,000

12,769,174

________

11,055,077

13,011,134

________

Amounts owed by related parties

Amounts owed to related parties

2023

Augment Risk Services LLC

1,702,288

211,097

Augment Risk Intermediate Holdings

Augment Risk Services UK Limited

4,521,311

________

1,702,289

4,732,408

________

No expense has been recognised in the current period for bad or doubtful debts in respect of the amounts owed by related parties. No guarantees have been given or received.

17.

Controlling party

The immediate parent company is Augment Risk Intermediate Holdings LLC., a company incorporated in Cayman Islands with a registered office at PO Box 309, Ugland House, Grand Cayman, Cayman Islands, KY11104.

The ultimate parent company is Augment Risk Holdings LLC.

The smallest and largest group in which the entity's results are consolidated is that of Augment Risk Holdings LLC. Copies of the parent company's financial statements are publicly available from PO Box 309, Ugland House, Grand Cayman, Cayman Islands, KY11104.

Page 26

Augment Risk UK Trading Limited

Notes to the Financial Statements

For the year ended 31 December 2024

18.

Notes supporting statement of cash flows

2024

2023

Cash at bank available on demand

1,000

Cash and cash equivalents in the statement of financial position

1,000

Cash and cash equivalents in the statement of cash flows

1,000

19.

Capital management

The Company's capital management objective is to ensure the entity's ability to continue as a going concern.

The Company monitors capital on the basis of the carrying amount of equity, less cash as presented on the face of the statement of financial position.

During the year the Company was not subject to any externally imposed capital requirements.

________

20.

Events after the reporting date

There have been no significant events affecting the Company since the year end.

Page 27