REGISTERED NUMBER: 10697809 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023

FOR

IMMOTION VR LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J J Collis

R D Findley

REGISTERED OFFICE:

2nd Floor 55

Ludgate Hill

London

EC4M 7JW

REGISTERED NUMBER:

10697809 (England and Wales)

ACCOUNTANTS:

Crowe U.K. LLP

2nd Floor

Medway Bridge House

1-8 Fairmeadow

Maidstone

Kent

ME14 1JP

FIXED ASSETS

Intangible assets

4

1,230

3,995

Tangible assets

5

622,862

294,177

624,092

298,172

CURRENT ASSETS

Debtors

6

565,719

208,716

Cash at bank

248,502

50,342

814,221

259,058

CREDITORS

Amounts falling due within one year

7

1,063,449

330,248

NET CURRENT LIABILITIES

(249,228

)

(71,190

)

TOTAL ASSETS LESS CURRENT LIABILITIES

374,864

226,982

PROVISIONS FOR LIABILITIES

8

54,495

-

NET ASSETS

320,369

226,982

CAPITAL AND RESERVES

Called up share capital

2

2

Share premium

449,998

449,998

Retained earnings

(129,631

)

(223,018

)

SHAREHOLDERS' FUNDS

320,369

226,982

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2025 and were signed on its behalf by:

R D Findley - Director

1.	STATUTORY INFORMATION

Immotion VR Limited 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.

The principal activity of the company in the year under review was the operation of virtual reality experiences at its own Immotion VR locations and at partner sites.

In the prior year, ImmotionVR Limited shortened its accounting period date to 28 February 2023. This change was made to align the financial reporting period with the completion of the sale of the business, which occurred in early 2023. The shortened period allows for a clear and accurate reflection of the company’s financial performance up to the point of disposal, and ensures consistency in reporting during the transition. The comparative figures therefore are to the two months to 28 February 2023, and the current figures for the 10 months to 31 December 2023.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also required management to exercise judgement in applying the company's accounts policies (see note below).

Change in accounting policy

In the prior period, Immotion Studios Limited changed its accounting framework from FRS 101 (Reduced Disclosures Framework) to FRS 102 Section 1A (Small Entities). This change reflects a strategic decision to adopt a reporting framework more aligned with the company's size and operational requirements. The transition did not result in any changes to the recognition or measurement of assets, liabilities, income or expenses and affects only the presentation and disclosure of the financial statements.

Going concern

Accounting standards require the directors to consider the appropriateness of the going concern basis when preparing financial statements. The directors confirm that they consider the going concern basis remains appropriate. The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources and support from its parent company to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Intangible assets other than goodwill

Amortisation is recognised so as to write off the costs or valuation of assets less their residual values over their useful lives on the following bases:

Domain names 33% straight line

Website 33% straight line

Software development 33% straight line

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings

-

over the life of the lease

Plant and machinery etc

-

33% on cost and at varying rates on cost

Financial instruments

The entity has elected to apply the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the entities' Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Pension costs and other post-retirement benefits

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 into 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 when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits 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.

The company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence the company does not adjust any of the transaction prices for the time value of money.

Revenue from providing services is recognised in the accounting period in which the services are rendered.

For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

Revenue from services rendered in ImmotionVR locations are recognised on the date which the sale to the customer takes place.

Partnership revenue is recognised on the date which the sale to the customer takes place. Immotion VR Limited acts as the principal in the transaction and therefore recognises the revenue charged to the end user in full with the partners' shares deducted as a cost of sale.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business, from suppliers.

Creditors are recognised initially at fair value and subsequently at amortised cost using the effective interest method.

Critical accounting estimates and judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

Depreciation

The useful economic lives of tangible fixed assets are based on management's judgement and experience. When management identifies that actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted retrospectively. Due to the significance of tangibles fixed assets to the company, variances between actual and estimated useful economic lives could impact in the operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required.

Amortisation of intangible assets

The periods of amortisation adopted to write down capitalised intangibles and capitalised staff costs require judgements to be made in respect of estimating the useful economic lives of the tangible assets to determine an appropriate amortisation rate.

Intangible assets are amortised on a straight line basis over the period during which economic benefits are expected to be received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 50 (2023 - 45 ) .

4.	INTANGIBLE FIXED ASSETS

Development

Domain

Website

costs

Names

Totals

£

£

£

£

Cost

At 1 March 2023

6,140

63,628

4,355

74,123

Disposals

-

(63,628

)

-

(63,628

)

At 31 December 2023

6,140

-

4,355

10,495

Amortisation

At 1 March 2023

3,229

63,628

3,271

70,128

Amortisation for period

1,705

-

1,060

2,765

Eliminated on disposal

-

(63,628

)

-

(63,628

)

At 31 December 2023

4,934

-

4,331

9,265

Net book value

At 31 December 2023

1,206

-

24

1,230

At 28 February 2023

2,911

-

1,084

3,995

5.	TANGIBLE FIXED ASSETS

IT

Fixtures

equipment

Short

Plant and

and

& VR

leasehold

machinery

fittings

hardware

Totals

£

£

£

£

£

Cost

At 1 March 2023

286,296

4,364

3,148

1,085,606

1,379,414

Additions

370,070

-

-

168,440

538,510

At 31 December 2023

656,366

4,364

3,148

1,254,046

1,917,924

Depreciation

At 1 March 2023

191,741

4,067

2,785

886,644

1,085,237

Charge for period

91,197

297

213

118,118

209,825

At 31 December 2023

282,938

4,364

2,998

1,004,762

1,295,062

Net book value

At 31 December 2023

373,428

-

150

249,284

622,862

At 28 February 2023

94,555

297

363

198,962

294,177

The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:

Short

leasehold

£

Cost

At 1 March 2023

and 31 December 2023

25,753

Depreciation

At 1 March 2023

22,654

Charge for period

2,861

At 31 December 2023

25,515

Net book value

At 31 December 2023

238

At 28 February 2023

3,099

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2023

£

£

Trade debtors

257,549

166,570

Amounts owed by group undertakings

256,013

-

Other debtors

52,157

42,146

565,719

208,716

Balances due from group companies are unsecured, repayable on demand and interest free.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2023

£

£

Trade creditors

47,009

46,825

Amounts owed to group undertakings

621,289

-

Taxation and social security

74,314

54,711

Other creditors

320,837

228,712

1,063,449

330,248

Balances due to group companies are unsecured, repayable on demand and interest free.

8.	PROVISIONS FOR LIABILITIES

2023

£

Deferred tax

Accelerated capital allowances

54,495

Deferred

tax

£

Balance at 1 March 2023

(1,448

)

Provided during period

55,943

Balance at 31 December 2023

54,495

There were unused tax losses of £5,057,214 (£5,057,879 at 28 February 2023). No deferred tax asset has been recognised due to the uncertainty surrounding future profits.

9.	RELATED PARTY DISCLOSURES

During the year, there were no transactions with related parties that require disclosure in the financial statements.

10.	ULTIMATE CONTROLLING PARTY

At the balance sheet date, the ultimate parent company of Immotion VR Limited is LBE BidCo Inc, a company registered in the USA.