Sierra Medical Ltd

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

1. General Information

Sierra Medical Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 13115958 . The registered office is Ketton Suite, The King Centre Main Road, Barleythorpe, Oakham, Rutland, LE15 7WD.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern. Therefore the financial statements have been prepared on a going concern basis which assumes the Company will continue in operational existence for the foreseeable future.

The Company is involved in research and development activities and is working towards achieving a sustainable revenue generating activity. The directors have considered the basis of the financial statements and are satisfied that a combination of business growth and further investment commitments will enable the Company to meet its liabilities as they fall due.

2.3. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets are Patents. They are amortised to profit and loss account over their estimated economic life of 7 years.

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

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:

Plant & Machinery	Straight line over 3 years
Computer Equipment	Straight line over 3 years

2.5. 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 profit / loss before taxation.

2.6. Taxation

Tax is recognised in profit or loss except that a charge is attributable to an item of income and expense recognised as other comphrehensive income or to an item recognised directly in equity is also recognised in other comphrehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

2.7. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

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Sierra Medical Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

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. 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 shall be 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 cirteria 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 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.

2.10. Convertible Debt

Compound financial instruments issued by the Company comprise convertible loan notes that can be converted to share capital at the option of the holder. The interest on the loan notes is compounding annually and as such the number of shares to be issued will vary with changes in the fair value.

Due to the varying number of shares to be issued the loan notes are treated as liabilities and not split between equity and liabilities. The liability is initially and subsequently measured at fair value, with the fair value movements recognised in the Statement of Comprehensive Income.

Transaction costs that relate to the issue of the instrument are expensed to the Statement of Comprehensive Income.

2.11. Share Based Payments

The company operates an equity-settled, share-based compensation plan, under which the entity received services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 4 (2024: 2)

4. Intangible Assets

	Other
	£
Cost
As at 1 February 2024	113,749
Additions	8,176

As at 31 January 2025	121,925

Amortisation
As at 1 February 2024	30,175
Provided during the period	16,591

As at 31 January 2025	46,766

...CONTINUED

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Sierra Medical Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

Net Book Value
As at 31 January 2025	75,159

As at 1 February 2024	83,574

5. Tangible Assets

	Plant & Machinery	Computer Equipment	Total
	£	£	£
Cost
As at 1 February 2024	50,536	3,498	54,034
Additions	-	4,164	4,164

As at 31 January 2025	50,536	7,662	58,198

Depreciation
As at 1 February 2024	28,639	1,693	30,332
Provided during the period	8,671	1,419	10,090

As at 31 January 2025	37,310	3,112	40,422

Net Book Value
As at 31 January 2025	13,226	4,550	17,776

As at 1 February 2024	21,897	1,805	23,702

6. Debtors

	2025	2024
	£	£
Due within one year
Prepayments and accrued income	95,826	180,751
Other debtors	7,515	-
Corporation tax recoverable	61,516	30,775
VAT	7,589	24,870

	172,446	236,396

7. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	7,535	8,300
Other taxes and social security	14,734	5,329
Other creditors	2,500	600
Accruals and deferred income	6,550	7,568

	31,319	21,797

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

	2025	2024
	£	£
Other loans	130,892	886,851
Other creditors	5,000	5,000

	135,892	891,851

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Sierra Medical Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

9. Loans

An analysis of the maturity of loans is given below:

	2025	2024
	£	£
Amounts falling due between one and five years:
Other loans	130,892	886,851

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	1	1

On 14th March 2024, 2,878 Ordinary shares of £0.000001 each were converted per loan notes at a value of £17.37176 per share. On the same date a further 17,802 Ordinary shares of £0.000001 each were converted per loan notes at a value of £7.02152 per share.

On 10th November 2024, 153,182 Ordinary shares of £0.000001 each were converted per loan notes at a value of £3.32046 per share, on the same date a further 35,027 Ordinary shares of £0.000001 each were converted per loan notes at a value of £3.33 per share.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		75,159		83,574
Tangible Assets	5		17,776		23,702

			92,935		107,276
CURRENT ASSETS
Debtors	6	172,446		236,396
Cash at bank and in hand		217,929		65,645

		390,375		302,041
Creditors: Amounts Falling Due Within One Year	7	(31,319 )		(21,797 )

NET CURRENT ASSETS (LIABILITIES)			359,056		280,244

TOTAL ASSETS LESS CURRENT LIABILITIES			451,991		387,520

Creditors: Amounts Falling Due After More Than One Year	8		(135,892 )		(891,851 )

NET ASSETS/(LIABILITIES)			316,099		(504,331 )

CAPITAL AND RESERVES
Called up share capital	10		1		1
Share premium account			900,275		-
Other reserves			34,744		100,001
Profit and Loss Account			(618,921 )		(604,333 )

SHAREHOLDERS' FUNDS			316,099		(504,331)