Company No: 10605602 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Intangible assets	3	216,718		185,764
Tangible assets	4	613,908		707,879
		830,626		893,643
Current assets
Stocks		0		170,861
Debtors	5	879,121		709,574
Cash at bank and in hand		1,563,076		2,342,758
		2,442,197		3,223,193
Creditors: amounts falling due within one year	6	( 409,563)		( 357,442)
Net current assets		2,032,634		2,865,751
Total assets less current liabilities		2,863,260		3,759,394
Creditors: amounts falling due after more than one year	7	( 1,845)		( 9,223)
Net assets		2,861,415		3,750,171
Capital and reserves
Called-up share capital	8	3		3
Share premium account		5,569,354		5,569,354
Profit and loss account		( 2,707,942 )		( 1,819,186 )
Total shareholders' funds		2,861,415		3,750,171

For the financial year ending 31 March 2025 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 Statement of Income and Retained Earnings has not been delivered.

The financial statements of Gravity Industries Ltd (registered number: 10605602) were approved and authorised for issue by the Board of Directors on 24 December 2025. They were signed on its behalf by:

Mr R Browning Director

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

Gravity Industries Ltd (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 St Mary's House, Netherhampton, Salisbury, SP2 8PU, United Kingdom. The principal place of business is West Forest Farm, Gare Hill, Frome, Somerset, BA11 5EZ.

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 £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer and revenue from services is recognised as they are delivered.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

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:

Trademarks, patents and licences

10 years straight line

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 land and buildings, and leashold improvements, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a reducing balance basis over its expected useful life, as follows:

Leasehold improvements	not depreciated
Plant and machinery	25 % reducing balance
Vehicles	25 % reducing balance
Office equipment	25 % reducing balance
Computer equipment	25 % reducing balance

No depreciation is charged on leasehold improvements as the directors consider the residual value to be greater than cost.

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is calculated using the FIFO (first-in, first-out) method. Work in progress and finished goods include labour and attributable overheads. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is immediately recognised in profit or loss.

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 criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its costs can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

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. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	8		7

3. Intangible assets

	Trademarks, patents and licences		Total
	£		£
Cost
At 01 April 2024	234,330		234,330
Additions	56,607		56,607
At 31 March 2025	290,937		290,937
Accumulated amortisation
At 01 April 2024	48,566		48,566
Charge for the financial year	25,653		25,653
At 31 March 2025	74,219		74,219
Net book value
At 31 March 2025	216,718		216,718
At 31 March 2024	185,764		185,764

4. Tangible assets

	Leasehold improve- ments		Plant and machinery		Vehicles		Office equipment		Computer equipment		Total
	£		£		£		£		£		£
Cost
At 01 April 2024	163,171		534,901		422,371		359		50,240		1,171,042
Additions	81,318		2,696		0		0		1,426		85,440
Disposals	0		0		( 96,099)		0		0		( 96,099)
At 31 March 2025	244,489		537,597		326,272		359		51,666		1,160,383
Accumulated depreciation
At 01 April 2024	79,281		152,709		203,037		31		28,105		463,163
Charge for the financial year	0		95,997		52,933		82		5,694		154,706
Disposals	0		0		( 71,394)		0		0		( 71,394)
At 31 March 2025	79,281		248,706		184,576		113		33,799		546,475
Net book value
At 31 March 2025	165,208		288,891		141,696		246		17,867		613,908
At 31 March 2024	83,890		382,192		219,334		328		22,135		707,879
Leased assets included above:
Net book value
At 31 March 2025	0		0		11,890		0		0		11,890
At 31 March 2024	0		0		46,259		0		0		46,259

5. Debtors

	2025		2024
	£		£
Trade debtors	258,112		212,618
Amounts owed by directors	489		0
Prepayments	28,053		29,169
VAT recoverable	45,962		56,198
Corporation tax	139,193		0
Other debtors	407,312		411,589
	879,121		709,574

6. Creditors: amounts falling due within one year

	2025		2024
	£		£
Trade creditors	117,643		266,520
Amounts owed to directors	0		12,528
Accruals and deferred income	268,391		4,849
Other taxation and social security	11,096		9,795
Obligations under finance leases and hire purchase contracts (secured)	7,378		58,892
Other creditors	5,055		4,858
	409,563		357,442

The above hire purchase liability of £7,378 (2024 - £58,892) is secured by the respective assets held by the company.

7. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Obligations under finance leases and hire purchase contracts (secured)	1,845		9,223

The above hire purchase liability of £1,845 (2024 - £9,223) is secured by the respective assets held by the company.

8. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
1,000,000 Ordinary A shares of £ 0.000001 each	1.00		1.00
1,000,000 Ordinary B shares of £ 0.000001 each	1.00		1.00
564,000 Ordinary C shares of £ 0.000001 each	0.56		0.56
	2.56		2.56
892,382 Preference Shares shares of £ 0.000001 each	0.89		0.89
	3.45		3.45

9. Related party transactions

Transactions with the entity's directors

	2025		2024
	£		£
At 1 April	0		0
Advances	489		0
At 31 March	489		0

This loan is interest free and repayable on demand.

Other related party transactions

	2025		2024
	£		£
Amount due from Gravity Industries USA Inc.	407,312		411,589
Amount due to Corton Holdings Limited	(3,032)		(3,032)

10. 2023 EMI Scheme

The company has a share option scheme in which four employees participate - the Gravity Industries Ltd 2023 Employee Share Option Plan ("2023 EMI Scheme") set up in July 2023.
Under the 2023 EMI scheme, the company has granted an EMI option over Ordinary C shares in the company. The option vests in equal tranches over the course of a three year period and is not subject to any performance targets. The option expires on the 10th anniversary of the date of grant. In the event of an acquisition or other takeover event the option is capable of exercise, but only then to the extent that option shares have vested up until that date. The directors have granted a total of 76,809 options to date to each of the four employees (307,236 in total), each with an exercise price of £1.1202 per share and an expiry date of 4th July 2033. Each employee had 44,800 options capable of exercise at 31 March 2025. At 31 March 2025 no options had been exercised.