REGISTERED NUMBER: 09193617 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

IDEX BIOMETRICS UK LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14

Directors:

C W G Clausen

V A Graziani

Registered office:

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

Registered number:

09193617 (England and Wales)

Auditors:

Dunkley's Chartered Accountants

Woodlands Grange

Woodlands Lane

Bradley Stoke

Bristol

BS32 4JY

The directors present their strategic report for the year ended 31 December 2024.

Review of business

The company's activity has been largely in line with plans, with turnover for the year being £5,336,875 (2023 - £2,420,664) with post tax profits of £1,784,482 (2023 - loss £1,516,206). The current year turnover included £3,434,779 in respect of the sale of an intellectual property rights package.

The directors expect the activity level and number of employees to remain stable in the forthcoming financial year.

Principal risks and uncertainties

Lack of successful completion of saleable intellectual property packages and possible reductions in service deliveries present continuing risks and uncertainties. The directors consider the company, with the backing of its holding company, will be able to mitigate such risks and uncertainties and take advantage of opportunities that arise.

Key performance indicator

The company's main key performance indicator is the level of turnover, which as mentioned above, was £5,336,875 for the current financial year.

On behalf of the board:

C W G Clausen - Director

30 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

Principal activities

The principal activity of the company in the period under review was to conduct research and development in the field of fingerprint technology with the aim of providing saleable intellectual property, and to provide engineering, supply chain and other services related to fingerprint imaging and recognition technology and devices.

Going concern

As at 31 December 2024 the company had net liabilities and is dependent upon the continued financial support from its parent company, IDEX Biometrics ASA, to meet its obligations as they fall due.

Per the parent company's filed 2024 accounts:

"IDEX Biometrics has incurred significant operating losses and negative cash flows during the development stage of the business. The future viability of the Company is dependent on its ability to generate cash from operating activities and to raise additional capital to finance its operations. The net equity amounted to $4.7 million, less than half of the share capital, and the balance sheet solvency, defined as cash plus current receivables less current liabilities, was negative $519 thousand on December 31, 2024.

During 2024, the Company implemented measures to significantly reduce staff and operating expenses, mainly in the technical functions in the US and China, while maintaining the customer support functions and supply chain capabilities. The existing cash does not fund the Company’s operating expenses and capital expenditures requirements for the next twelve months.

On March 11, 2025, the company disclosed that following a strategic review, concluding that the company shall concentrate its technical and commercial efforts on serving the access market, where IDEX is believed to possess competitive advantage. IDEX Biometrics will seek to also harvest from its long-time efforts in the payment market. On the same date, the company disclosed that it had received irrevocable undertakings from certain existing shareholders and new investors to lend NOK 30 million ($2.8 million) to the Company to fund the commercialization efforts in line with the revised business strategy (“March loans”). Subject to approval by an extraordinary general meeting, the loans would be convertible to shares at NOK 0.01 per share.

At the extraordinary general meeting on April 11, 2025 the shareholders resolved to (i) reduce the share capital of IDEX Biometrics ASA by decreasing the par value per existing share from NOK 0.15 per share to NOK 0.01 per share, and (ii) subject to completion of the share capital decrease, convert the March loans to shares at a subscription price per share equal to NOK 0.01 per share. The lenders have undertaken to subscribe for shares and settle the share contribution by debt conversion. The extraordinary general meeting also approved a subsequent offering of shares at the same price to the other existing shareholders, raising up to NOK 6 million ($0.6 million). These actions will cover the company’s immediate cash needs.

Thirdly, the Company disclosed that it had entered into a commitment letter and term sheet for an amendment agreement with the holder of the Company’s convertible bonds amounting to NOK 67 million ($6.3 million) whereby the terms of the convertible bond will be amended such that, inter alia, (i) the principal amount will be reduced by 25%, and, (ii) subject to the company obtaining additional equity on market terms by December 31, 2025, the principal amount would be reduced by a further 25%. Certain other terms of the bonds were also amended. The extraordinary general meeting approved the change of terms.

In the short term, IDEX Biometrics is dependent on the successful implementation of the foregoing. The long-term future viability depends on the Company’s ability to generate cash from operating activities and to raise additional capital to finance its operations. IDEX Biometrics existing cash and the funding described above is not sufficient to fund its operating expenses and capital expenditures requirements for the next twelve months. While the Company has been successful in the past in raising funds through private placements of shares and issuance of convertible debt, there is no assurance that IDEX Biometrics will be successful in raising capital the future. The Company’s failure to raise capital as and when needed would have a negative impact on its financial condition and its ability to pursue its business strategies. These factors cast significant doubt on the Company's ability to continue as a going concern.

As an ongoing activity, the Company monitors liquidity and the Board is prepared to take appropriate measures if and when required. IDEX Biometrics has been successful in the past with implementing cost reductions and raising capital through private placements of equity. Reflecting the recent funding described above and acknowledging the significant doubt identified above, the Board has on balance concluded that the conditions for the going concern assumption are met."

Despite these actions, a material uncertainty remains which may cast significant doubt on the group's and the company's ability to continue as a going concern.

The directors have received confirmation of continued support from the parent company and, after assessing the group's forecasts and funding position, consider it appropriate to prepare the financial statements on a going concern basis.

These financial statements do not include any adjustments that might result if the company were unable to continue as a going concern.

Dividends

No dividends will be distributed for the year ended 31 December 2024.

Future developments

We expect to complete saleable intellectual property packages that can be sold at a profit. The service delivery is expected to remain at current levels.

Directors

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

C W G Clausen

V A Graziani

Other changes in directors holding office are as follows:

E Svela ceased to be a director after 31 December 2024 but prior to the date of this report.

Financial instruments

Objective and policies

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors and loans to the business. The main purpose of these instruments is to finance the business' operations.

Price risk, credit risk, liquidity risk and cash flow risk

In respect of bank balances, the liquidity risk is managed by maintaining a balance to ensure the continuity of funding.

Trade debtors, which comprise entirely of amounts due from the company's holding company, are managed in respect of credit and cash flow risk by policies concerning the credit offered and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans comprise entirely of loans from the company's holding company. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:

C W G Clausen - Director

30 September 2025

Opinion

We have audited the financial statements of Idex Biometrics UK Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the Companies Act 2006.

We draw attention to the Material Uncertainty Related to Going Concern section of our report. Our opinion is not further modified in respect of that matter.

Basis for Qualified Opinion - Limitation of Scope

As disclosed in note 4 to the financial statements, during the year the company sold a material intellectual property asset to its parent undertaking. We obtained evidence that the transaction occurred, including the executed contract and receipt of funds. However, the company has not provided an independent valuation or other reliable external evidence to support that the amount recognised reflects fair value at the date of transfer.

Because the transaction is with a related party, it is required to be assessed as if it had been undertaken between independent parties. In the absence of either an independent valuation or other credible external corroboration (such as a benchmarking to similar transactions or input from an independent specialist). We were unable to obtain sufficient appropriate audit evidence regarding the amount recognised. Consequently we could not determine whether adjustments might have been necessary to the amounts recognised in respect of this transaction, and the related impacts on the income statement, balance sheet and related disclosures.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISA's (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 ethical responsibilities in accordance with these requirements.

Material Uncertainty related to going concern

We draw your attention to the Going Concern section of the Report to the Directors and to note 3 of the financial statements, which describes the material uncertainty related to the company's ability to continue as a going concern. The company is reliant on the support from its parent, IDEX Biometrics ASA, which continues to incur losses and requires further funding to support its operations. These conditions, along with other matters disclosed, indicate that a material uncertainty exists which may cast significant doubt on the company's ability to continue as a going concern.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 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.

The other information comprises the information included in the report of the directors, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the report of the directors. 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have 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 material misstatements in the Strategic Report or the Report of the Directors.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

The extent to which are procedures are capable of detecting irregularities, including fraud is detailed below:

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, bonus levels and performance targets;

- any matters we identified, having obtained and reviewed the company's documentation of their policies and procedures relating to:

(a) identifying, evaluating and complying with laws and regulations and whether they were aware of any instances

of non-compliance;

(b) detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or

alleged fraud;

(c) the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas of management override of controls, and revenue recognition.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- enquiring of management, concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our 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 Report of the Auditors.

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 a Report of the Auditors 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.

Matthew Dobbins (Senior Statutory Auditor)

for and on behalf of Dunkley's Chartered Accountants

Woodlands Grange

Woodlands Lane

Bradley Stoke

Bristol

BS32 4JY

30 September 2025

Turnover

4

5,336,875

2,420,664

Administrative expenses

(3,753,115

)

(4,429,156

)

Operating profit/(loss)

6

1,583,760

(2,008,492

)

Interest receivable and similar income

6,435

15,331

1,590,195

(1,993,161

)

Interest payable and similar expenses

7

(713

)

-

Profit/(loss) before taxation

1,589,482

(1,993,161

)

Tax on profit/(loss)

8

195,000

476,955

Profit/(loss) for the financial year

1,784,482

(1,516,206

)

Other comprehensive income

-

-

Total comprehensive income for the year

1,784,482

(1,516,206

)

Fixed assets

Tangible assets

9

86,380

60,957

Current assets

Debtors

10

644,508

1,159,300

Cash at bank

-

169,368

644,508

1,328,668

Creditors

Amounts falling due within one year

11

5,804,372

8,247,591

Net current liabilities

(5,159,864

)

(6,918,923

)

Total assets less current liabilities

(5,073,484

)

(6,857,966

)

Capital and reserves

Called up share capital

13

1,000

1,000

Retained earnings

14

(5,074,484

)

(6,858,966

)

Shareholders' funds

(5,073,484

)

(6,857,966

)

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

C W G Clausen - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000

(5,342,760

)

(5,341,760

)

Changes in equity

Total comprehensive income

-

(1,516,206

)

(1,516,206

)

Balance at 31 December 2023

1,000

(6,858,966

)

(6,857,966

)

Changes in equity

Total comprehensive income

-

1,784,482

1,784,482

Balance at 31 December 2024

1,000

(5,074,484

)

(5,073,484

)

Cash flows from operating activities

Cash generated from operations

18

2,107,238

(1,970,430

)

Interest paid

(713

)

-

Tax paid

195,000

476,955

Net cash from operating activities

2,301,525

(1,493,475

)

Cash flows from investing activities

Purchase of tangible fixed assets

(119,399

)

(2,133

)

Interest received

6,435

15,331

Net cash from investing activities

(112,964

)

13,198

Cash flows from financing activities

New loans in year

-

1,620,822

Loan repayments in year

(2,389,038

)

-

Net cash from financing activities

(2,389,038

)

1,620,822

(Decrease)/increase in cash and cash equivalents

(200,477

)

140,545

Cash and cash equivalents at beginning of year

19

169,368

28,823

Cash and cash equivalents at end of year

19

(31,109

)

169,368

1.	Statutory information

Idex Biometrics UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Going concern

As at 31 December 2024 the company had net liabilities. The company is dependent upon the support of its holding company. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

The following is reproduced from the parent company's audited financial statements:-

"IDEX Biometrics has incurred significant operating losses and negative cash flows during the development stage of the business. The future viability of the Company is dependent on its ability to generate cash from operating activities and to raise additional capital to finance its operations. The net equity amounted to $4.7 million, less than half of the share capital, and the balance sheet solvency, defined as cash plus current receivables less current liabilities, was negative $519 thousand on December 31, 2024.

During 2024, the Company implemented measures to significantly reduce staff and operating expenses, mainly in the technical functions in the US and China, while maintaining the customer support functions and supply chain capabilities. The existing cash does not fund the Company’s operating expenses and capital expenditures requirements for the next twelve months.

On March 11, 2025, the company disclosed that following a strategic review, concluding that the company shall concentrate its technical and commercial efforts on serving the access market, where IDEX is believed to possess competitive advantage. IDEX Biometrics will seek to also harvest from its long-time efforts in the payment market. On the same date, the company disclosed that it had received irrevocable undertakings from certain existing shareholders and new investors to lend NOK 30 million ($2.8 million) to the Company to fund the commercialization efforts in line with the revised business strategy (“March loans”). Subject to approval by an extraordinary general meeting, the loans would be convertible to shares at NOK 0.01 per share.

At the extraordinary general meeting on April 11, 2025 the shareholders resolved to (i) reduce the share capital of IDEX Biometrics ASA by decreasing the par value per existing share from NOK 0.15 per share to NOK 0.01 per share, and (ii) subject to completion of the share capital decrease, convert the March loans to shares at a subscription price per share equal to NOK 0.01 per share. The lenders have undertaken to subscribe for shares and settle the share contribution by debt conversion. The extraordinary general meeting also approved a subsequent offering of shares at the same price to the other existing shareholders, raising up to NOK 6 million ($0.6 million). These actions will cover the company’s immediate cash needs.

Thirdly, the Company disclosed that it had entered into a commitment letter and term sheet for an amendment agreement with the holder of the Company’s convertible bonds amounting to NOK 67 million ($6.3 million) whereby the terms of the convertible bond will be amended such that, inter alia, (i) the principal amount will be reduced by 25%, and, (ii) subject to the company obtaining additional equity on market terms by December 31, 2025, the principal amount would be reduced by a further 25%. Certain other terms of the bonds were also amended. The extraordinary general meeting approved the change of terms.

In the short term, IDEX Biometrics is dependent on the successful implementation of the foregoing. The long-term future viability depends on the Company’s ability to generate cash from operating activities and to raise additional capital to finance its operations. IDEX Biometrics existing cash and the funding described above is not sufficient to fund its operating expenses and capital expenditures requirements for the next twelve months. While the Company has been successful in the past in raising funds through private placements of shares and issuance of convertible debt, there is no assurance that IDEX Biometrics will be successful in raising capital the future. The Company’s failure to raise capital as and when needed would have a negative impact on its financial condition and its ability to pursue its business strategies. These factors cast significant doubt on the Company's ability to continue as a going concern.

As an ongoing activity, the Company monitors liquidity and the Board is prepared to take appropriate measures if and when required. IDEX Biometrics has been successful in the past with implementing cost reductions and raising capital through private placements of equity. Reflecting the recent funding described above and acknowledging the significant doubt identified above, the Board has on balance concluded that the conditions for the going concern assumption are met."

The directors recognise that there is a material uncertainty in the company's ability to continue as a going concern, which will be dependent on the ability of the group to provide ongoing support.

The directors of Idex Biometrics UK Limited assumes that there is a reasonable expectation that the holding company will be willing and able to support Idex Biometrics UK Limited for at least twelve months from the date of approval of the financial statements. Consequently, the directors have formed a judgement, at the time of approving the financial statements, that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and therefore has prepared the financial statements on a going concern basis. No adjustments have been made to these financial statements that may be required were the support to be withdrawn.

If the group were to be unable to continue as a going concern, then the directors would reconsider the company's position.

Turnover

Turnover represents:-

- revenue from services provided to Idex Biometrics ASA, the holding company. The services are charged at cost plus a market-based margin.

- the sale of IP fingerprint technology to Idex Biometrics ASA at a negotiated price. The relevant IP in fingerprint technology has been created by the company.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Instruments and laboratory equipment

-

20% to 33% straight line

Fixtures and fittings

-

20% straight line

Computer equipment and software tools

-

33% straight line

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses.

Research and development

Research and development expenditure is written off to the profit or loss in the year in which it is incurred and not capitalised.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

There are no assets which are initially measured at fair value.

Financial liabilities

Basic financial liabilities, including trade and other creditors and loans that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

4.

Turnover

The turnover and profit (2023 - loss) before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Services

1,902,096

2,420,664

Intellectual property

3,434,779

-

5,336,875

2,420,664

5.	Employees and directors

2024

2023

£

£

Wages and salaries

2,256,640

2,608,976

Social security costs

269,539

316,761

Other pension costs

334,710

407,684

2,860,889

3,333,421

The average number of employees during the year was as follows:

2024

2023

Operations

10

11

Product engineering

18

21

Administration

2

2

30

34

2024

2023

£

£

Directors' remuneration

-

-

6.	Operating profit/(loss)

The operating profit (2023 - operating loss) is stated after charging:

2024

2023

£

£

Other operating leases

282,810

281,520

Depreciation - owned assets

93,976

58,223

Auditors' remuneration

8,600

8,000

7.

Interest payable and similar expenses

2024

2023

£

£

Other interest

713

-

8.

Taxation

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(195,000

)

(293,044

)

Refund under provision in

prior year

-

(183,911

)

Tax on profit/(loss)

(195,000

)

(476,955

)

UK corporation tax has been charged at 25% (2023 - 23.52%).

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit/(loss) before tax

1,589,482

(1,993,161

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

397,371

(468,791

)

Effects of:

Expenses not deductible for tax purposes

(31,487

)

(13,839

)

Capital allowances in excess of depreciation

(7,018

)

-

Depreciation in excess of capital allowances

-

11,328

Research and development enhanced deduction

-

(300,944

)

Tax losses

(358,866

)

772,246

Research and development tax credit

(195,000

)

(293,044

)

Refund underprovision prior year

-

(183,911

)

Total tax credit

(195,000

)

(476,955

)

The company has trading losses of £2,906,455 (2023 - £3,564,357) to carry forward to offset against any future trading profits.

9.	Tangible fixed assets

Computer

Instruments

equipment

and

Fixtures

and

laboratory

and

software

equipment

fittings

tools

Totals

£

£

£

£

Cost

At 1 January 2024

248,811

64,481

135,963

449,255

Additions

108,064

-

11,335

119,399

Disposals

(14,938

)

-

-

(14,938

)

At 31 December 2024

341,937

64,481

147,298

553,716

Depreciation

At 1 January 2024

196,741

61,604

129,953

388,298

Charge for year

84,939

2,652

6,385

93,976

Eliminated on disposal

(14,938

)

-

-

(14,938

)

At 31 December 2024

266,742

64,256

136,338

467,336

Net book value

At 31 December 2024

75,195

225

10,960

86,380

At 31 December 2023

52,070

2,877

6,010

60,957

10.

Debtors: amounts falling due within one year

2024

2023

£

£

Amounts owed by group

undertakings

25,737

680,908

Other debtors

527,774

417,001

VAT

29,903

29,653

Prepayments

61,094

31,738

644,508

1,159,300

11.

Creditors: amounts falling due within one year

2024

2023

£

£

Bank loans and overdrafts (see note 12)

31,109

-

Trade creditors

62,191

13,329

Amounts owed to group undertakings

5,549,137

7,938,175

Social security and other taxes

77,436

92,613

Other creditors

-

8,485

Accruals and deferred income

84,499

194,989

5,804,372

8,247,591