The notes on pages 4 to 17 form an integral part of these financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The notes on pages 4 to 17 form an integral part of these financial statements.

Salunda Limited (the "company") is a private company limited by shares and incorporated in England and Wales. The registered office is Unit 1 Cabot Park, Empire Road, Bicester, Oxfordshire, OX26 2GE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Consolidation

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements therefore present information about the company as an individual entity and not about its group.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. In assessing whether the going concern assumption is appropriate, management has taken into account all available relevant information about the future, which is at least, but is not limited to, 12 months from the date when the financial statements are authorised for issue.

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

The company applies the following 5-step process in respect of revenue recognition:

1) Identify the contract with the customer;

2) Identify the performance obligation(s) set out within the contract;

3) Determine the overall transaction price;

4) Allocate the transaction price to each performance obligation; and

5) Recognise revenue either when or as the performance obligations are satisfied.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of turnover are as follows:

The company's significant payment terms for the sale of goods and provision of services are: a) an agreed percentage down payment, followed by b) the remaining percentage usually 30 days from the invoice date, but can range up to 1-2 years depending on the contract.

Turnover 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 despatch of the goods), the amount of turnover 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. Turnover from the sale of goods is recognised at a point in time.

Turnover from the provision of installation and other services is recognised with regard to the stage of completion as at the balance sheet date and when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of turnover 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. Turnover from the provision of services is recognised over time.

The company recognises contract liabilities for consideration received in advance of unsatisfied performance obligations and reports these amounts as deferred income in the Balance sheet. Typically, these amounts relate to consideration received in advance for the provision of services to customers, and will be recognised over the contract term.

Interest income is recognised using the effective interest rate method.

R&D expenditure credit ("RDEC") income is recognised when right to receive payment has been established.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and impairment losses.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following straight-line bases:

Software and development costs will be start being amortised when use of the intangible assets commences.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following straight-line bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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, which include trade and other debtors, amounts owed by group undertakings, 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 assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, including trade and other creditors, and bank loans, 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

The 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 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 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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 or fixed assets.

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

At inception, the company assesses whether a contract is, or contains, a lease. A lease arises where the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control of the use of an asset occurs where the company has both the right to direct the use of the asset, and the right to obtain substantially all the economic benefits from that use.

Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within the same line items on the Balance sheet as owned assets.

The right-of-use asset is initially measured at cost, which comprises the initial measurement of the lease liability adjusted for lease payments made at or before the commencement date less any lease incentives or grants received, plus initial direct costs and an estimate of the cost of obligations to dismantle, remove or restore the underlying asset and the site on which it is located.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate or the company’s obtainable borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be payable under residual value guarantees, the exercise price of any purchase options that the company is reasonably certain to exercise, and any penalties for early termination of a lease.

At each reporting date, the lease liability is adjusted to reflect payments made and interest accrued. Also, the lease liability is remeasured to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or recognised in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

In the comparative period, the company classified leases as finance leases whenever the terms of the lease transferred substantially all the risks and rewards of ownership to the lessees. All other leases were classified as operating leases. Rentals payable under operating leases, less any lease incentives received, were charged to profit or loss on a straight-line basis over the term of the relevant lease except where another more systematic basis was more representative of the time pattern in which economic benefits from the leased asset were consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The FRS 102 Periodic Review 2024 is mandatorily effective for accounting periods beginning on or after 1 January 2026, with early adoption permitted providing all amendments are applied at the same time. For the current year, the company has applied the early adoption of the FRS 102 Periodic Review, resulting in the date of initial application being 1 January 2025.

The company has applied the FRS 102 Periodic Review 2024 amendments to Section 20 Leases in accordance with paragraph 1.47, which may result in an adjustment to the opening balance of retained earnings at the date of initial application. Comparative information is not restated.

The company’s revised accounting policies for leases are set out in note 1.17 and the adjustment for each financial statement line item affected by the application of the Periodic Review 2024 in the current year is set out further below.

At 31 December 2024, the company had 3 outstanding operating leases, all with lease terms terminating within 12 months of the date of initial application (1 January 2025). In accordance with paragraph 1.53(c), the company has therefore chosen not to apply the requirements in paragraph 1.51 to these leases, but to account for these leases in the same way as short-term leases. Expenses relating to short-term leases are included within note 16.

Due to the above factors, the company has not recognised any adjustments to the opening balance of retained earnings.

During the year, and as set out within notes 6 and 16, the company has capitalised a lease that would have previously been accounted for as an operating lease. The amendments to FRS 102 Section 20 has resulted in the company recognising both a depreciation charge and an interest charge within the Statement of comprehensive income. However, previously rentals payable under operating leases were charged to profit or loss on a straight-line basis over the term of the relevant lease. Due to the 'top heavy' nature of the lease liability and interest charge, this has resulted in additional costs being recognised in profit or loss during the year, as set out further below.

The company has taken advantage of the following practical expedient permitted:

• Paragraph 1.45 - definition of a lease

The company has applied the FRS 102 Periodic Review 2024 amendments to Section 23 Revenue in accordance with paragraphs 1.61(a) (the 'Cumulative approach') and 1.62, which may result in an adjustment to the opening balance of retained earnings at the date of initial application. Comparative information is not restated.

The company’s revised accounting policies for revenue are set out in note 1.3 and the adjustment for each financial statement line item affected by the application of the Periodic Review 2024 is set out further below.

The company's original revenue accounting policy may not have included the 'revised 5 step model', as applicable to the amendments to Section 23, however the company had previously accounted for revenue on "an individual contract basis", similar to the expected accounting treatment highlighted within paragraph 23.6. Therefore, the revenue recognition model for accounting for the sales of goods and provision of services has largely remained unchanged, expect for a more robust revenue accounting policy disclosed in these financial statements.

Turnover from the sale of goods was previously only recognised at a point in time - when the significant risk and rewards of ownership of the goods were passed to the buyer (usually on despatch of the goods). Turnover from the provision of services was also previously only recognised over time - with regard to the stage of completion at the reporting date.

Due to the above factors, the company has not recognised any adjustments to the opening balance of retained earnings or an effect upon current year profit or loss.

The company has taken advantage of the following practical expedients permitted:

• Paragraph 1.65 (b);

• Paragraph 1.65 (c); and

• Paragraph 1.66.

In the application of the company’s accounting policies, the directors are required to make judgements, 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.

Management assess the net realisable value of stock on an annual basis to ensure that the net realisable value does not fall below the carrying amount of the stock. For goods held where the net realisable value is below the carrying amount, an impairment charge is recognised.

Management exercise judgement when assessing the net realisable value, taking into account current market conditions, technological advancements as well as historical market knowledge.

Management exercise judgement in the calculation of this provision based on their best estimate of the costs to be incurred to restore the current leased office and manufacturing facility to its original condition upon exit of the lease, as set out in note 12.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, and economic utilisation. Intangible assets are set out further in note 5.

The company operates an employee share option scheme which is equity settled. The options are valued using the Black Scholes methodology with a charge to the profit and loss account and a corresponding increase in the equity being computed each year. The cost of this scheme and the present value of the obligation depends on a number of factors, including; the value of the company's shares at each grant date, the company's risk free interest rate, the time until the expiration of the options and the company's volatility. Management estimate these factors in determining the present value, based on historic and benchmarked information. The share option reserve is held and disclosed separately within the Statement of changes in equity.

The company cannot readily determine the interest rate implicit in the lease, and therefore it uses its incremental borrowing rate ("IBR") to measure lease liabilities. The IBR is the rate of interest that the company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the company "would have to pay", which requires estimation when no observable rates are available.

The company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain specific estimates (such as the stand-alone credit score rating).

The average monthly number of persons (including directors) employed by the company during the year was:

At the reporting date, the investment value was £nil.

Details of the company's subsidiary at 31 December 2025 are as follows:

Contract liabilities are set out in accounting policy note 1.3. The company has no contract assets or accrued income.

"Other creditors" relate to right-of-use asset lease liabilities, which are repayable in instalments over the lease term which terminates in June 2036.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The weighted average share price at the date of exercise for share options exercised during the year was £0.00107 (2024: n/a). The weighted average share price at the 31 December 2025 was £0.00107.

The options outstanding at 31 December 2025 had an exercise price ranging from £0.0010 to £0,00141, and a remaining contractual life of 1-9 years.

During the year, an equity settled share-based payment credit of £222,399 (2024: £57,909 charge) has been recognised within the Statement of comprehensive income.

On 22 April 2025, the company issued an additional 590,000 Ordinary shares each at par value.

On 19 August 2025, the company issued an additional 453,000 Ordinary shares each at par value. Also on 19 August 2025, the company issued an additional 150,000 Ordinary shares each at a premium of 0.02p per share, and an additional 400,000 Ordinary shares each at a premium of 0.041p per share.

On 24 September 2025, the company issued a further 20,214,746 Ordinary shares each at par value.

At the reporting date, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £2,563,773 (2024: £299,296). Following the FRS 102 Periodic Review 2024, a new operating lease in which the company entered into during the year has been capitalised under "Right-of-use assets", as set out in note 6. The remaining operating leases terminated within the current year, and therefore have been included below as short-term leases.

The company has taken advantage of the exemptions provided by Section 1AC.35 of FRS 102, not to disclose related party transactions and outstanding balances with wholly owned subsidiaries within the group.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following: