Immense Simulations Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—8

1. General Information

Immense Simulations Limited is a private company, limited by shares, incorporated in Northern Ireland, registered number 09782647 . The registered office is International House, 36-38 Cornhill, London, EC3V 3NG.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern. Therefore the financial statements have been prepared on a going concern basis which assumes the Company will continue in operational existence for the foreseeable future.

The Company is involved in research and development activities and is working towards achieving a sustainable revenue generating activity. The directors have considered the basis of the financial statements and are satisfied that a combination of business growth and further investment commitments will enable the Company to meet its liabilities as they fall due.

2.3. Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover 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.

2.4. Research and Development

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class Amortisation method and rate

Development expenditure 10 years

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:

Computer Equipment

3 years straight line

2.6. Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

2.7. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

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Immense Simulations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.8. 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.

Basic financial assets

Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs.

Classification of financial liabilities

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 creditors, are recognised at transaction price including transaction costs.

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.

2.9. 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 profit / loss before taxation.

2.10. Taxation

Tax is recognised in profit or loss except that a charge is attributable to an item of income and expense recognised as other comphrehensive income or to an item recognised directly in equity is also recognised in other comphrehensive 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 balance sheet date in the countries where the company operates and generates income.

2.11. Employee 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 stock of fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2.12. 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.

2.13. Share Based Payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is

recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

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Immense Simulations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.14. 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 cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives.

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.

2.15. Convertible Debt

Compound financial instruments issued by the Company comprise convertible loan notes that can be converted to share capital at the option of the holder. The interest on the loan notes is compounding annually and as such the number of shares to be issued will vary with changes in the fair value.

Due to the varying number of shares to be issued the loan notes are treated as liabilities and not split between equity and liabilities. The liability is initially and subsequently measured at fair value, with the fair value movements recognised in the Statement of Comprehensive Income.

Transaction costs that relate to the issue of the instrument are expensed to the Statement of Comprehensive Income.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 6 (2023: 7)

4. Intangible Assets

	Development Costs
	£
Cost
As at 1 January 2024	5,139,130

As at 31 December 2024	5,139,130

Amortisation
As at 1 January 2024	1,054,164
Provided during the period	583,567

As at 31 December 2024	1,637,731

Net Book Value
As at 31 December 2024	3,501,399

As at 1 January 2024	4,084,966

The company’s accounting policy is to capitalise qualifying development costs relating to the platform asset where the recognition criteria in FRS 102 are met. Historically, this assessment has been performed in conjunction with the preparation of the company’s R&D claim, with amounts identified as qualifying development expenditure being capitalised as an uplift to the platform asset.

At the date of approval of these financial statements, the R&D report for the current financial year has not yet been finalised. Accordingly, management has not completed its assessment of whether costs incurred in the year meet the criteria for capitalisation as development expenditure. No capitalisation of current-year development costs has therefore been recognised in these financial statements.

On completion of the assessment, any adjustments required to capitalised development costs will be accounted for in accordance with FRS 102 and the company’s accounting policies, taking into consideration materiality and whether any revisions require the financial statements to be amended and re-filed.

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Immense Simulations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

5. Tangible Assets

	Computer Equipment
	£
Cost
As at 1 January 2024	86,262

As at 31 December 2024	86,262

Depreciation
As at 1 January 2024	85,830
Provided during the period	432

As at 31 December 2024	86,262

Net Book Value
As at 31 December 2024	-

As at 1 January 2024	432

6. Investments

	Subsidiaries
	£
Cost or Valuation
As at 1 January 2024	2,667

As at 31 December 2024	2,667

Provision
As at 1 January 2024	-

As at 31 December 2024	-

Net Book Value
As at 31 December 2024	2,667

As at 1 January 2024	2,667

Subsidiaries

Details of the company's subsidiaries as at 31 December 2024 are as follows:

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Immense Solutions Ltd	England	Ordinary	100.00%	100.00%
Immense Simulations Inc	USA	Ordinary	100.00%	100.00%
Immense Simulations Barcelona SL	Spain	Ordinary	100.00%	100.00%

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Immense Simulations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

7. Debtors

	2024	2023 as restated
	£	£
Due within one year
Trade debtors	65,100	30,000
Prepayments and accrued income	46,393	23,788
Other debtors	27,831	8,660
Corporation tax recoverable assets	120,000	432,183
VAT	11,475	25,709

	270,799	520,340

8. Creditors: Amounts Falling Due Within One Year

	2024	2023 as restated
	£	£
Trade creditors	67,411	16,772
Other loans	-	9,579
Other taxes and social security	12,538	11,158
Other creditors	44,727	21,669
Accruals and deferred income	23,411	83,650
Amounts owed to group undertakings	3,502	50,519

	151,589	193,347

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

	2024	2023 as restated
	£	£
Other loans	-	96,850

10. Share Capital

	2024	2023 as restated
Allotted, called up and fully paid	£	£
1,801,999 Ordinary Shares of £ 0.001 each	1,802	1,791
2,499,930 Ordinary A shares of £ 0.001 each	2,500	1,820

	4,302	3,611


Shares issued during the period:	£
11,279 Ordinary Shares of £ 0.001 each	11
680,152 Ordinary A shares of £ 0.001 each	680

	691

On 11th January 2024, 18,156 Series A shares of £0.001 each were allotted and fully paid at a price of £5.3343 each.

On 27th December 2024, 509,242 Series A shares of £0.001 each were allotted and fully paid at a price of £1.9637 per share. On the same day a further 152,754 Series A shares of £0.001 each were allotted and fully paid at a price of £0.001 each

Historic allotments accounted for in current year

...CONTINUED

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Immense Simulations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

10. Share Capital - continued

On 20th September 2023, 1,538 Ordinary shares of £0.001 each were allotted and fully paid at a price per share of £0.20 on exercise of options.

On 14th June 2022, 961 Ordinary shares of £0.001 each were allotted and fully paid at a price per share of £0.20 on exercise of options.

On 27th June 2022, 8,780 Ordinary shares of £0.001 each were allotted and fully paid at a price per share of £0.20 on exercise of options.

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		2024		2023 as restated
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		3,501,399		4,084,966
Tangible Assets	5		-		432
Investments	6		2,667		2,667

			3,504,066		4,088,065
CURRENT ASSETS
Debtors	7	270,799		520,340
Cash at bank and in hand		1,078,612		467,290

		1,349,411		987,630
Creditors: Amounts Falling Due Within One Year	8	(151,589 )		(193,347 )

NET CURRENT ASSETS (LIABILITIES)			1,197,822		794,283

TOTAL ASSETS LESS CURRENT LIABILITIES			4,701,888		4,882,348

Creditors: Amounts Falling Due After More Than One Year	9		-		(96,850 )

NET ASSETS			4,701,888		4,785,498

CAPITAL AND RESERVES
Called up share capital	10		4,302		3,611
Share premium account			9,905,700		8,807,287
Other reserves			293,621		293,621
Fair value reserve			944,779		934,517
Profit and Loss Account			(6,446,514 )		(5,253,538 )

SHAREHOLDERS' FUNDS			4,701,888		4,785,498