Recycleye Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Recycleye Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 12221541 . The registered office is Unit 11-15 Gibbins Road, London, E15 2HU.

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. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.3. Research and Development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their expected useful economic lives.

If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only. Currently no R&D expenditure has been capitalised.

2.4. 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:

Leasehold	20% Straight Line
Plant & Machinery	33% Straight Line
Fixtures & Fittings	33% Straight Line
Computer Equipment	Ranging from 25 -33% Straight Line

2.5. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.6. 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.

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Recycleye Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

2.7. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 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.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing 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 timing differences can be utilised. 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 assets and liabilities 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. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect 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.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.8. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

2.9. Share Based Payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party or factors which are within the control of one or other of the parties (such as the company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, the profit and loss account is charged with the fair value of goods and services received.

Initial Measurement: The fair value of equity-settled share-based payments is measured at the grant date. This fair value is determined using the Black-Scholes model, which takes into account the terms and conditions upon which the instruments were granted.

Subsequent Measurement: The cost of equity-settled transactions is recognised over the vesting period, based on the number of awards expected to vest. The vesting period is the period during which all the specified vesting conditions must be satisfied.

Adjustments for Non-Market Vesting Conditions: At each reporting date, the entity revises its estimates of the number of equity instruments expected to vest. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 43 (2023: 37)

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Recycleye Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

4. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 October 2023	-	3,569	12,454	221,580	237,603
Additions	461,505	362,600	64,262	21,234	909,601

As at 30 September 2024	461,505	366,169	76,716	242,814	1,147,204

Depreciation
As at 1 October 2023	-	3,500	4,310	91,877	99,687
Provided during the period	40,321	74,169	14,628	65,532	194,650

As at 30 September 2024	40,321	77,669	18,938	157,409	294,337

Net Book Value
As at 30 September 2024	421,184	288,500	57,778	85,405	852,867

As at 1 October 2023	-	69	8,144	129,703	137,916

5. Stocks

	2024	2023
	£	£
Stock	253,100	288,734

6. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	597,681	364,665
Amounts owed by group undertakings	-	2,048
Other debtors	350,485	194,652

	948,166	561,365

7. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	318,651	108,395
Other creditors	90,494	16,708
Taxation and social security	44,006	121,366

	453,151	246,469

8. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Other creditors	53,074	-

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Recycleye Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

9. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	3,510	3,483

10. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 1 October 2023	Amounts advanced	Amounts repaid	Amounts written off	As at 30 September 2024
	£	£	£	£	£
Mr Victor Dewulf	5,992	-	-	-	5,992

The above loan is unsecured, interest free and repayable on demand.

11. Related Party Transactions

Within other debtroes is an intercompany loan balance to the Company's subsidiary with the closing balance of £53,073.95

up from £2,047.89 in 2023. The loan is held at arms length, interest free and is payable on demand.

12. Share Based Payments

During the year ended 30 September 2024, the company refined its approach to valuing share option schemes by adopting the Black-Scholes option pricing model. In prior years, the share-based payment charge was estimated using exercise prices and vesting schedules, which resulted in a higher expense being recognised.

The company operates EMI and other share option schemes. Key features include:

Options vest over periods of up to four years, subject to service conditions.
Exercise prices range from £0.0001 to £0.0874 per share.

Fair values at grant date, determined under the Black-Scholes model, ranged from £0.00002 to £0.04506 per share, using assumptions consistent with industry practice.

At 30 September 2024, a total of 3,169,440 options were outstanding, of which 2,292,219 had vested.

The share-based payment expense recognised in the year was £34,677.06 (2023: £80,172.13).

The company’s share-based payments are not considered material to the financial statements, and accordingly further detailed disclosures have been omitted under the reduced disclosure framework of FRS 102 Section 1A.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		852,867		137,916

			852,867		137,916
CURRENT ASSETS
Stocks	5	253,100		288,734
Debtors	6	948,166		561,365
Cash at bank and in hand		7,788,146		12,369,088

		8,989,412		13,219,187
Creditors: Amounts Falling Due Within One Year	7	(453,151 )		(246,469 )

NET CURRENT ASSETS (LIABILITIES)			8,536,261		12,972,718

TOTAL ASSETS LESS CURRENT LIABILITIES			9,389,128		13,110,634

Creditors: Amounts Falling Due After More Than One Year	8		(53,074 )		-

PROVISIONS FOR LIABILITIES
Deferred Taxation			(107,921 )		(26,204 )

NET ASSETS			9,228,133		13,084,430

CAPITAL AND RESERVES
Called up share capital	9		3,510		3,483
Share premium account			18,210,634		18,203,428
Other reserves			34,677		80,172
Profit and Loss Account			(9,020,688 )		(5,202,653 )

SHAREHOLDERS' FUNDS			9,228,133		13,084,430