REGISTERED NUMBER: 10228908 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

LIFTOFF MOBILE LTD.

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

J Bondy

T Kutrieh

REGISTERED OFFICE:

6th Floor One London Wall

London

United Kingdom

EC2Y 5EB

REGISTERED NUMBER:

10228908 (England and Wales)

AUDITORS:

Byrd Link Audit & Accountancy Services Limited

Statutory Auditor

Honeybourne Place

Jessop Avenue

Cheltenham

Gloucestershire

GL50 3SH

Introduction

Liftoff Mobile Ltd, a commercial organisation, presents its financial statements for the year ending 31 December 2024.

1. Principal Activities

Liftoff Mobile Ltd. is a subsidiary of LMI, Inc. a US company. The UK subsidiary operates as a service provider to the parent company and Vungle SEA Pte. Ltd, in Singapore, offering a variety of key functions including sales, engineering, and administrative support. The UK entity does not engage in any direct sales or revenue-generating activities independent of its relationship with the parent company and Vungle SEA Pte. Ltd.. Instead, it operates on a cost-plus arrangement, whereby it charges a markup on costs for services rendered to the parent or Vungle SEA Pte. Ltd. R&D expenses are marked up at 8% for cost plus with US parent company whilst Sales and Marketing expenses are marked up at 7% for cost plus with the Singapore entity.

The principal activities of the UK subsidiary include:

- Sales Support - the subsidiary provides sales assistance, including marketing research and sales coordination to the Vungle SEA;

- Engineering Support - the UK entity offers engineering and technical expertise to assist the US parent in the development and delivery of products and services. This includes product design, technical consultation, and project management support;

- Administrative Support - the subsidiary manages various administrative functions such as HR, finance, procurement, IT, and compliance services to ensure smooth operational support to the US parent.

The relationship between the UK subsidiary and the US parent company is central to the operations of the UK entity, which focuses exclusively on supporting the parent's broader business objectives.

2. Business Overview

The UK subsidiary's business model revolves around providing essential services to both LMI, Inc. and Vungle SEA Pte. Ltd in a cost-efficient manner. The cost-plus pricing model ensures that the UK entity is remunerated for its services based on the actual costs incurred, with a fixed profit margin of 8% for R&D costs and 7% for Sales & Marketing costs. This arrangement allows the UK subsidiary to remain financially stable without being dependent on external customers or market fluctuations.

Key functions provided by the UK subsidiary are critical to the ongoing operations of the parent company, especially as the UK entity serves as a key operational hub in Europe. The subsidiary plays a supporting yet essential role in enabling the parent company's product development, sales expansion, and administrative functions.

3. Revenue/Performance

Revenue - The UK subsidiary generates revenue solely through its cost-plus arrangements with LMI, Inc.and Vungle SEA Pte. Ltd. The revenue model is based on the costs incurred for providing services such as sales support, engineering, and administrative functions. This means that revenue is directly linked to the operational costs incurred by the subsidiary, with the % markup representing its margin.

Performance - The key performance metrics for the UK subsidiary are focused on cost efficiency, service delivery, and alignment with the parent company's business needs.

Given the structure of the subsidiary, performance is primarily driven by internal operational efficiency rather than external market forces.

4. Principal Risks and Uncertainties

While the UK subsidiary operates in a relatively low-risk environment, there are still several principal risks and uncertainties that need to be considered:

4.1 Strategic Risks

Dependence on the US Parent Company: The subsidiary's business is entirely dependent on the continued need for services by the US parent. Any significant changes in the parent company's strategic direction, such as a shift in focus or an alteration in the nature of services required, could impact the UK subsidiary's operations. However, the UK sub is our second biggest subsidiary, US parent Company has no intention to shift in focus.

4.2 Financial Risks

Currency Risk: As the subsidiary operates in the UK and charges its services in GBP, fluctuations in the exchange rate between GBP and USD could impact the financial results of the UK entity. However, this risk is partially mitigated by the cost-plus structure, which reflects the UK's local operating costs.

Credit Risk: The UK subsidiary is financially linked to the US parent, a large and stable company. While credit risk is minimal due to the financial strength of the parent, any disruption in the parent's operations could indirectly impact the UK subsidiary's cash flow.

4.3 Operational Risks

Retention of Key Talent: The success of the UK entity is dependent on retaining skilled employees, particularly in technical and engineering roles. Failure to retain key talent or difficulties in recruiting suitably qualified employees could impact the subsidiary's ability to meet its obligations to the US parent.

4.4 Risks Relating to Financial Reporting - Estimates and Judgements

Cost Estimation and Allocation: The % cost-plus pricing model relies on accurate and consistent cost estimation. Any inaccuracies in allocating costs to the appropriate services could affect both the profitability of the UK subsidiary and the financial relationship with the parent company.

Intercompany Transactions: The subsidiary must ensure that intercompany transactions are correctly accounted for, including proper allocation of shared services and management charges. Errors in accounting for these transactions could result in misreporting and financial discrepancies.

4.5 Risks Associated with Laws and Regulations

Tax and Transfer Pricing Risks: The UK subsidiary's cost-plus model is subject to transfer pricing regulations. Any changes in tax laws, either in the UK or the US, could affect the transfer pricing arrangements or lead to increased tax liabilities. Compliance with both local and international tax laws is a key risk area for the subsidiary.

Labour and Employment Regulations: The subsidiary must remain compliant with UK employment laws, which include rules regarding compensation, working hours, and employee rights. Changes in labour laws could lead to higher costs or operational adjustments.

Data Protection and Privacy: As the subsidiary handles sensitive business information, changes in data protection regulations, particularly with the GDPR in the European Union, could increase compliance costs or expose the entity to legal risks.

5. Risk Mitigation and Management

The UK subsidiary has implemented several measures to mitigate the risks outlined above:

- Robust financial management - Regular reviews of cost allocation, and financial reporting processes ensure that the 7% and 8% markup remains accurate and that intercompany transactions are properly accounted for.

- Resource Planning: The subsidiary employs resource planning tools to monitor staffing needs, project timelines, and service requirements from the US parent to ensure optimal performance.

- Employee Engagement: A focus on employee retention through competitive compensation, professional development programs, and a positive work environment is crucial to mitigate the risk of talent loss.

- Regulatory Compliance: The subsidiary's legal and compliance teams actively monitor changes in tax, employment, and data protection regulations to ensure full compliance and mitigate potential risks.

6. Outlook

We do not foresee any significant risks or uncertainty in the matters of interest rates, inflation, or supply chain impacting this entity. The UK subsidiary's cost-plus model shields it from these macroeconomic factors as it bases its revenue on actual operational costs, which are reviewed regularly to account for inflationary pressures or interest rate changes.

Employee recruitment and retention is expected to mirror prior years. The UK subsidiary has historically been able to attract and retain skilled employees, and no major disruptions are anticipated in this regard. The continued alignment with the US parent's strategic goals ensures that the demand for services will remain stable, and the subsidiary's role is likely to continue as a critical operational support hub.

7. Conclusion

The UK subsidiary remains a stable and integral part of the overall business, providing essential sales, engineering, and administrative services to its US parent. While there are some strategic, financial, and operational risks, these are effectively mitigated through careful planning and management. The cost-plus model provides financial stability, and there are no significant risks expected to arise from external economic factors, employment, or regulatory changes in the foreseeable future.

The subsidiary will continue to focus on maintaining cost efficiency, service quality, and employee retention, in line with the parent company's strategic objectives, ensuring continued success in the coming years.

ON BEHALF OF THE BOARD:

J Bondy - Director

12 December 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of providing sales, engineering and administrative support to its parent company LMI, Inc.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J Bondy

T Kutrieh

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Byrd Link Audit & Accountancy Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Bondy - Director

12 December 2025

Opinion

We have audited the financial statements of Liftoff Mobile Ltd. (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and its financial operations we have considered the initial risks of non-compliance with the UK regulators, predominantly HM Revenue and Customs and Companies Act 2006. We have assessed the impact any breaches in such laws and regulations and considered whether any such findings would have a material impact on these financial statements. We have considered the risk of those charged with management overriding internal controls and the opportunity for financial manipulation. We have considered the effect of any accounting estimates included within these accounts and the effect this may have on our audit

opinion.

Our audit procedures together with our assessment of risks identified at planning were transparent to the company and we have communicated with the client throughout the audit as well as the audit engagement team, and this includes such matters as fraud and irregularity.

The above procedures do however have their limitations as we can only work on a sample of financial transactions. Ultimately it is the responsibility of those charged with management for the prevention and detection of fraud and other irregularities.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Russel Byrd FCA (Senior Statutory Auditor)

for and on behalf of Byrd Link Audit & Accountancy Services Limited

Statutory Auditor

Honeybourne Place

Jessop Avenue

Cheltenham

Gloucestershire

GL50 3SH

16 December 2025

TURNOVER

19,816,996

18,784,304

Administrative expenses

20,502,437

18,567,136

(685,441

)

217,168

Other operating income

991,292

732,084

OPERATING PROFIT

4

305,851

949,252

Interest receivable and similar income

-

36

PROFIT BEFORE TAXATION

305,851

949,288

Tax on profit

6

295,763

64,640

PROFIT FOR THE FINANCIAL YEAR

10,088

884,648

PROFIT FOR THE YEAR

10,088

884,648

OTHER COMPREHENSIVE INCOME

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

10,088

884,648

FIXED ASSETS

Tangible assets

7

134,604

113,801

CURRENT ASSETS

Debtors: amounts falling due within one year

8

11,260,095

9,985,116

Debtors: amounts falling due after more than one year

8

161,441

506,740

Cash at bank

1,971,691

674,535

13,393,227

11,166,391

CREDITORS

Amounts falling due within one year

9

6,367,228

4,972,946

NET CURRENT ASSETS

7,025,999

6,193,445

TOTAL ASSETS LESS CURRENT LIABILITIES

7,160,603

6,307,246

CAPITAL AND RESERVES

Called up share capital

11

1

1

Other reserves

12

2,230,423

1,387,154

Retained earnings

12

4,930,179

4,920,091

SHAREHOLDERS' FUNDS

7,160,603

6,307,246

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2025 and were signed on its behalf by:

J Bondy - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

1

4,035,443

726,178

4,761,622

Changes in equity

Total comprehensive income

-

884,648

-

884,648

Stock options granted

-

-

660,976

660,976

Balance at 31 December 2023

1

4,920,091

1,387,154

6,307,246

Changes in equity

Total comprehensive income

-

10,088

-

10,088

Stock options granted

-

-

843,269

843,269

Balance at 31 December 2024

1

4,930,179

2,230,423

7,160,603

1.	STATUTORY INFORMATION

Liftoff Mobile Ltd. 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 presentation currency of the financial statements is the Pound Sterling (£).

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" 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 requires management to exercise judgement in applying the company's accounting policies.

The figures within the financial statements have been rounded to the nearest £1 sterling.

The following principal accounting policies have been applied:

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of signing this report.

The company relies on the continued support from its parent company LMI, Inc., which has confirmed that it will continue to provide this for the foreseeable future. On that basis, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Turnover 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. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company is contracted by Vungle SEA, to deliver sales and marketing services under an intercompany agreement as well as providing research and development services to LMI, Inc. - the company is remunerated for these services.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

- Computer equipment - 3 years

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.

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

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Basic financial assets and liabilities that are payable or receivable within one year, typically trade payables and receivables, as measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive 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 reporting date in the countries where the company operates and generates income.

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Foreign currencies

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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

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.

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.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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 reporting 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 (such as a target based on an index) 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, profit or loss is charged with fair value of goods and services received.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

10,946,899

10,138,200

Social security costs

2,022,729

1,780,923

Other pension costs

367,472

379,910

13,337,100

12,299,033

The average number of employees during the year was as follows:

2024

2023

UK

116

127

2024

2023

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Depreciation - owned assets

107,144

75,347

(Profit)/loss on disposal of fixed assets

(1,503

)

14,753

Development costs amortisation

-

113

Foreign exchange differences

(76,536

)

(45,302

)

5.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

10,950

9,528

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

127,721

-

Adjustments in respect of

prior periods

-

64,560

Total current tax

127,721

64,560

Deferred tax

168,042

80

Tax on profit

295,763

64,640

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

305,851

949,288

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

76,463

223,273

Effects of:

Expenses not deductible for tax purposes

228,328

181,905

Adjustments to tax charge in respect of previous periods

-

64,560

Net tax adjustments and transfer

-

4,076

Share schemes

-

(4,920

)

R&D expenditure credits

-

(15,182

)

Fixed asset differences

-

(1,125

)

Movement in deferred tax not recognised

-

(68,798

)

Other tax adjustments, reliefs and transfers

-

(319,149

)

Other permanent differences

(9,028

)

-

Total tax charge

295,763

64,640

Tax effects relating to effects of other comprehensive income

2023

Gross

Tax

Net

£

£

£

Other reserves

7.	TANGIBLE FIXED ASSETS

Office

equipment

£

Cost

At 1 January 2024

462,323

Additions

129,308

Disposals

(4,748

)

At 31 December 2024

586,883

Depreciation

At 1 January 2024

348,522

Charge for year

107,144

Eliminated on disposal

(3,387

)

At 31 December 2024

452,279

Net book value

At 31 December 2024

134,604

At 31 December 2023

113,801

8.

DEBTORS

2024

2023

£

£

Amounts falling due within one year:

Amounts owed by group undertakings

9,948,445

8,500,507

Other debtors

-

399,437

R&D Tax Credits

800,518

393,800

Deferred taxation

81,036

249,078

VAT

102,911

109,082

Prepayments

327,185

333,212

11,260,095

9,985,116

Amounts falling due after more than one year:

Other debtors

161,441

506,740

Aggregate amounts

11,421,536

10,491,856

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

85,268

115,068

Amounts owed to group undertakings

4,032,164

4,110,929

Corporation tax

-

64,551

Social security and other taxes

-

102,902

Other creditors

210,809

24,514

Accrued expenses

2,038,987

554,982

6,367,228

4,972,946

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

475,000

1,140,000

Between one and five years

-

475,000

475,000

1,615,000

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

100

Ordinary

.01

1

1

12.

RESERVES

Retained

Other

earnings

reserves

Totals

£

£

£

At 1 January 2024

4,920,091

1,387,154

6,307,245

Profit for the year

10,088

10,088

Stock options granted

-

843,269

843,269

At 31 December 2024

4,930,179

2,230,423

7,160,602