Xtract360 Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Xtract360 Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 10952789 . The registered office is 3 Lloyd's Avenue, London, EC3N 3DS.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The company’s financial statements have been prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the company’s needs. In assessing going concern, the directors have a reasonable expectation that the company will continue as a going concern and is able to meet all of its obligations as they fall due for a minimum of 12 months from the date of approval of these financial statements.

2.3. Turnover

Revenue is recognised to the extent there is probable economic benefits that will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from a contract to provide services is recognised in the period in which the services are provided, based on progress to contract completion.

2.4. Research and Development

Expenditure on research is written off in the year it is incurred.

Development costs are capitalised only where they can be identified with a specific product or project that will generate probable future economic benefits, the costs can be reliably measured and all the criteria under FRS 102 are met. They are amortised on a straight line basis to profit or loss over their estimated useful life. All other development costs are expenses as incurred.

Intangibles and Research and Development

Capitalised development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance is written off to profit or loss.

Capitalised development costs are not treated as a realised loss for the purpose of determining the company’s distributable profits as the costs meet the conditions permitting them to be treated as an asset under FRS 102.

All intangible assets are considered to have a finite useful life. The estimated useful lives are as follows:

Development expenditure – 5 years on a straight line basis

At each reporting date the company assesses whether there is any indication of impairment. If such indications exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. Any impairment loss is recognised immediately as an expense within profit or loss.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	2 or 5 years on a straight line basis
Computer Equipment	3 or 4 years on a straight line basis

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Repairs and maintenance costs are charged to profit or loss during the period in which they are incurred.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

...CONTINUED

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Xtract360 Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.5. Tangible Fixed Assets and Depreciation - continued

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. Any impairment loss is recognised immediately as an expense within the profit or loss.

2.6. Leasing and Hire Purchase Contracts

Leases in which the company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases.

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease an an integral part of the total lease expenses.

2.7. Financial Instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction prices less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Investments

Investments in subsidiaries are held at cost less accumulated impairment losses.

Impairment of financial assets

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 within profit or loss.

For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset’s carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

2.8. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.9. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of 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 liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Current tax for the year is recognised in profit or loss.

2.10. Pensions

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions in a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in profit or loss in the periods during which services are rendered by employees.

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Xtract360 Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.11. Share based payment

Share-based payments to employees are measured at the grant-date fair value and recognised as an employee expense, with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the awards (vesting period). The fair value of the awards granted is measured using an option valuation model, taking into account the terms and conditions upon which the awards were granted. The amount recognised as an expense is adjusted to reflect the actual number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related service and non-market performance conditions at the vesting date. For share-based payments awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expect and actual outcomes.

2.12. Related Party Exemption

The company has taken advantage of the exemption available under FRS 102 not to disclose related party transactions with wholly owned subsidiaries within the group.

2.13. Preparation of Consolidated Financial Statements Exemption

The company is exempt under Section 399 of the Companies Act from the requirement to prepare consolidated financial statements by virtue of the fact it is subject to the small companies regime. These financial statements contain information the company as an individual undertaking and not about this group.

3. Average Number of Employees

Average number of employees during the year was: 11 (2023: 13)

4. Intangible Assets

	Development Costs
	£
Cost
As at 1 January 2024	1,858,446
Additions	413,898

As at 31 December 2024	2,272,344

Amortisation
As at 1 January 2024	959,611
Provided during the period	419,566

As at 31 December 2024	1,379,177

Net Book Value
As at 31 December 2024	893,167

As at 1 January 2024	898,835

5. Tangible Assets

	Plant & Machinery	Computer Equipment	Total
	£	£	£
Cost
As at 1 January 2024	-	9,082	9,082
Additions	664	9,442	10,106

As at 31 December 2024	664	18,524	19,188

Depreciation
As at 1 January 2024	-	4,383	4,383
Provided during the period	55	3,856	3,911

As at 31 December 2024	55	8,239	8,294

...CONTINUED

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Xtract360 Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

Net Book Value
As at 31 December 2024	609	10,285	10,894

As at 1 January 2024	-	4,699	4,699

6. Investments

	Unlisted
	£
Cost or Valuation
As at 1 January 2024	88

As at 31 December 2024	88

Provision
As at 1 January 2024	-

As at 31 December 2024	-

Net Book Value
As at 31 December 2024	88

As at 1 January 2024	88

7. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	20,532	94,682
Amounts owed by group undertakings	484,533	269,037
Other debtors	35,839	39,954

	540,904	403,673

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	67,724	62,807
Other creditors	44,149	28,334
Taxation and social security	88,582	32,790

	200,455	123,931

Included within other creditors are outstanding pension contributions totalling £3,371 (2023: £1,421).

9. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	136	125

10. Shared Based Payments

The company operates two equity based share option schemes (approved EMI and an unapproved scheme) to certain employees which provides additional remuneration for those employees who are key to the company. The options are granted under an approved EMI option plan, with the exercise price amounting to £0.18 or £4.29 per share. The options expire ten years after the date of the grant. Employees are not entitled to dividends until the shares are exercised. All options granted have performance conditions relating to the relevant employee remaining in the employment of the company at exercise.

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Xtract360 Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

A reconciliation of share option movements during the year ended 31 December 2024 is shown below:

Number of options - weighted average exercise price

Outstanding as at 1 January 2024: 116,917 - £0.18

Granted during the year: 16,064 - £4.03

Forfeited during the year: nil - £nil

Exercised during the year: nil - £nil

Outstanding as at 31 December 2024: 132,981 - £0.65

The company is unable to directly measure the fair value of the share options. Instead the fair value of the share options granted during the year is determined using the Black-Scholes model. The model is internationally recognised as being appropriate to value share option schemes similar to that of the company.

Equity settled schemes - charges arising: £28,866 (2023: £Nil)

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		893,167		898,835
Tangible Assets	5		10,894		4,699
Investments	6		88		88

			904,149		903,622
CURRENT ASSETS
Debtors	7	540,904		403,673
Cash at bank and in hand		238,947		787,262

		779,851		1,190,935
Creditors: Amounts Falling Due Within One Year	8	(200,455 )		(123,931 )

NET CURRENT ASSETS (LIABILITIES)			579,396		1,067,004

TOTAL ASSETS LESS CURRENT LIABILITIES			1,483,545		1,970,626

NET ASSETS			1,483,545		1,970,626

CAPITAL AND RESERVES
Called up share capital	9		136		125
Share premium account			2,822,505		1,584,311
Share options and Advance subscription reserves			412,354		1,621,694
Profit and Loss Account			(1,751,450 )		(1,235,504 )

SHAREHOLDERS' FUNDS			1,483,545		1,970,626