Melon Cube Studios Ltd

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

1. General Information

Melon Cube Studios Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 13902525 . The registered office is 128 City Road, London, EC1V 2NX.

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 directors have identified material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern, however, the going concern basis remains appropriate.

The financial statements have been prepared on a going concern basis. The company has net liabilities of approximately £1.7 million at the period end. Notwithstanding the negative equity position, the directors have confirmed that they will continue to provide the necessary financial support to the company for at least 12 months from the date of approval of these financial statements.

2.3. 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 - recharge of costs expended

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.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets represent the capitalised costs of the company’s website. These costs are amortised to the profit and loss account over its estimated economic life of five years.

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Melon Cube Studios Ltd

Notes to the Financial Statements (continued)

For the Period 1 March 2024 to 28 August 2025

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	No depreciation charged
Fixtures & Fittings	20% straight line
Computer Equipment	20% straight line

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.

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 period, 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. 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.

2.9. Simple Agreement for Future Equity (SAFE)

SAFEs are typically treated as an equity instrument and do not represent debt, nor are they recognised as income. Under normal circumstances, they would be presented within Other Reserves as part of equity, to be converted into share capital upon the occurrence of a qualifying share issuance event.

As the relevant triggering event did not occur and, in accordance with the terms of the contract, the SAFEs have instead been reclassified to Other Creditors and are disclosed as such in these financial statements.s.

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Melon Cube Studios Ltd

Notes to the Financial Statements (continued)

For the Period 1 March 2024 to 28 August 2025

3. Average Number of Employees

Average number of employees, including directors, during the period was: 3 (2024: 3)

4. Intangible Assets

	Other
	£
Cost
As at 1 March 2024	849,274
Additions	32,482

As at 28 August 2025	881,756

Amortisation
As at 1 March 2024	317,716
Provided during the period	330,109
Impairment losses	230,281

As at 28 August 2025	878,106

Net Book Value
As at 28 August 2025	3,650

As at 1 March 2024	531,558

During the period, following a board decision, the directors determined that the carrying value of the website no longer reflects its recoverable amount. As a result, the remaining net book value has been fully impaired, and the impairment charge has been recognised in the profit and loss account.

5. Tangible Assets

	Fixtures & Fittings	Computer Equipment	Total
	£	£	£
Cost
As at 1 March 2024	-	4,618	4,618
Additions	733	5,494	6,227

As at 28 August 2025	733	10,112	10,845

Depreciation
As at 1 March 2024	-	1,654	1,654
Provided during the period	57	2,068	2,125

As at 28 August 2025	57	3,722	3,779

Net Book Value
As at 28 August 2025	676	6,390	7,066

As at 1 March 2024	-	2,964	2,964

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Melon Cube Studios Ltd

Notes to the Financial Statements (continued)

For the Period 1 March 2024 to 28 August 2025

6. Debtors

	28 August 2025	29 February 2024 as restated
	£	£
Due within one year
Prepayments and accrued income	3,106	1,384
Other debtors	13,640	-
VAT	866	17,497
Amounts owed by group undertakings	(11,987 )	-

	5,625	18,881

7. Creditors: Amounts Falling Due Within One Year

	28 August 2025	29 February 2024 as restated
	£	£
Trade creditors	342	10,300
Bank loans and overdrafts	3,604	8,405
Other taxes and social security	6,150	596
Net wages	-	1,878
Other creditors	1,743,931	-
Accruals and deferred income	4,782	3,708
Directors' loan accounts	119	1,051

	1,758,928	25,938

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

	28 August 2025	29 February 2024 as restated
	£	£
Balance owed to connected company	14,025	1,262,866

9. Share Capital

	28 August 2025	29 February 2024 as restated
	£	£
Allotted, Called up and fully paid	100	100

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Melon Cube Studios Ltd

Notes to the Financial Statements (continued)

For the Period 1 March 2024 to 28 August 2025

10. Related Party Transactions

During the period, the company paid Cypher Strategy Limited, whose ultimate controlling party is 100% owned by Mr Huang and Ms Hamada, a management charge of £Nil in respect of time expensed by both directors for the management of the operations of the company and its associated company. At the period end, included within other creditors is an amount of £11,987 owed to Cypher Strategy Limited.

During the year, the company made sales totalling £1,323,150 to a connected BVI company. At the year end, the company owed this BVI company £14,025 (2024: £1,262,866). This balance relates to amounts approved to be used as working capital for Melon during 2023.

During the period, the company paid interest of £90,064, calculated at 6% per annum, on the outstanding amount owed to the BVI company.

11. Ultimate Controlling Party

The company's ultimate controlling party is Mr H Huang by virtue of his ownership of 51% of the issued share capital in the company.

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		28 August 2025		29 February 2024 as restated
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		3,650		531,558
Tangible Assets	5		7,066		2,964

			10,716		534,522
CURRENT ASSETS
Debtors	6	5,625		18,881
Cash at bank and in hand		20,072		253,806

		25,697		272,687
Creditors: Amounts Falling Due Within One Year	7	(1,758,928 )		(25,938 )

NET CURRENT ASSETS (LIABILITIES)			(1,733,231 )		246,749

TOTAL ASSETS LESS CURRENT LIABILITIES			(1,722,515 )		781,271

Creditors: Amounts Falling Due After More Than One Year	8		(14,025 )		(1,262,866 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(1,342 )		(563 )

NET LIABILITIES			(1,737,882 )		(482,158 )

CAPITAL AND RESERVES
Called up share capital	9		100		100
Other reserves			-		1,743,931
Profit and Loss Account			(1,737,982 )		(2,226,189 )

SHAREHOLDERS' FUNDS			(1,737,882)		(482,158)