Company No: 12970218 (England and Wales)

Contents

• Company Information
• Balance Sheet
• Statement of Changes in Equity
• Notes to the Abridged Financial Statements

DIRECTORS	Jonathan Eno (Resigned 22 August 2024)
	Simon Richard Tew
	Owain Thomas Wilson

REGISTERED OFFICE	34 High Street
	Aldridge
	Walsall
	WS9 8LZ
	United Kingdom

COMPANY NUMBER

12970218 (England and Wales)

CHARTERED ACCOUNTANTS	Edwards Chartered Accountants
	34 High Street
	Aldridge
	Walsall
	WS9 8LZ

	Note	2024		2023
		£		£
Fixed assets
Intangible assets	4	364,122		283,280
Tangible assets	5	1,951		3,030
		366,073		286,310
Current assets
Stocks		12,495		2,577
Debtors	6	56,108		29,815
Cash at bank and in hand		1,870		4,352
		70,473		36,744
Creditors: amounts falling due within one year	7	( 358,901)		( 223,531)
Net current liabilities		(288,428)		(186,787)
Total assets less current liabilities		77,645		99,523
Net assets		77,645		99,523
Capital and reserves
Called-up share capital	8	1,252		1,161
Share premium account		269,182		144,325
Profit and loss account		( 192,789 )		( 45,963 )
Total shareholders' funds		77,645		99,523

For the financial year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered,
• All of the members of Digit Audio Technology Limited have consented to the preparation of the abridged financial statements for the financial year ended 31 December 2024 in accordance with Section 444(2A) of the Companies Act 2006.

The financial statements of Digit Audio Technology Limited (registered number: 12970218) were approved and authorised for issue by the Board of Directors on 16 December 2025. They were signed on its behalf by:

Simon Richard Tew Director

	Called-up share capital		Share premium account		Profit and loss account		Total
	£		£		£		£
At 01 January 2023	0		0		38,327		38,327
Loss for the financial year	0		0		( 84,290)		( 84,290)
Total comprehensive loss	0		0		( 84,290)		( 84,290)
Issue of share capital	1,161		144,325		0		145,486
At 31 December 2023	1,161		144,325		( 45,963)		99,523
At 01 January 2024	1,161		144,325		( 45,963)		99,523
Loss for the financial year	0		0		( 146,826)		( 146,826)
Total comprehensive loss	0		0		( 146,826)		( 146,826)
Issue of share capital	91		124,857		0		124,948
Revaluation Reserve	0		0		0		0
At 31 December 2024	1,252		269,182		( 192,789)		77,645

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Digit Audio Technology Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the company's registered office is 34 High Street, Aldridge, Walsall, WS9 8LZ, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Employee benefits

Short term benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of fixed assets.

Defined benefit schemes
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Taxation

Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Development costs	7 years straight line
Trademarks, patents and licences	10 years straight line

Research and development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Trademarks, patents and licences

Separately acquired patents and trademarks are included at cost and amortised in equal annual instalments over a period of 10 years which is their estimated useful economic life. Provision is made for any impairment.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Leasehold improvements	depreciated over the life of the lease
	5 years straight line
Computer equipment	3 years straight line

Leases

The company as lessee
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Impairment of assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash at bank only.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company 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.

Basic financial assets
Basic financial assets, which include trade debtors, corporation tax recoverable, other debtors, and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade creditors, taxation and social security, and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

2. Critical accounting judgements and key sources of estimation uncertainty

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods

3. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the company during the year, including directors	5		6

4. Intangible assets

	Development costs		Trademarks, patents and licences		Total
	£		£		£
Cost
At 01 January 2024	281,495		22,649		304,144
Additions	90,293		20,657		110,950
At 31 December 2024	371,788		43,306		415,094
Accumulated amortisation
At 01 January 2024	19,063		1,801		20,864
Charge for the financial year	28,150		1,958		30,108
At 31 December 2024	47,213		3,759		50,972
Net book value
At 31 December 2024	324,575		39,547		364,122
At 31 December 2023	262,432		20,848		283,280

5. Tangible assets

	Leasehold improve- ments		Computer equipment		Total
	£		£		£
Cost
At 01 January 2024	2,500		2,079		4,579
At 31 December 2024	2,500		2,079		4,579
Accumulated depreciation
At 01 January 2024	375		1,174		1,549
Charge for the financial year	500		579		1,079
At 31 December 2024	875		1,753		2,628
Net book value
At 31 December 2024	1,625		326		1,951
At 31 December 2023	2,125		905		3,030

6. Debtors

	2024		2023
	£		£
Trade debtors	5,672		669
Corporation tax	23,942		12,057
Other debtors	26,494		17,089
	56,108		29,815

7. Creditors: amounts falling due within one year

	2024		2023
	£		£
Trade creditors	39,704		46,768
Other taxation and social security	18,685		15,154
Other creditors	300,512		161,609
	358,901		223,531

8. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
125,218 Class 1 ordinary shares of £ 0.01 each (2023: 116,054 shares of £ 0.01 each)	1,252		1,161

During the year, 9,164 Ordinary shares of £0.01 each were issued for a total consideration of £164,943

9. Related party transactions

Transactions with the entity's directors

	2024		2023
	£		£
Aggregated balances due to directors	121,056		84,046

10. Events after the Balance Sheet date

After the year end, the company issued 17,333 Ordinary £0.01 shares for a total consideration of £156,000.