Wavetrak Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

1	General information

The company is a private company limited by share capital, incorporated and domiciled in England and Wales.

The address of its registered office is:
23 Royal William Yard
Unit 28
Plymouth
Devon

These financial statements were authorised for issue by the Board on 20 May 2026.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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

Going concern

The Directors consider the Company to be a going concern as it is supported by its parent company, Surfline\Wavetrak, Inc., which has agreed to provide continued support for at least a period of 12 months following the date of approval of these financial statements.

The Directors have made enquiries and believe that the Company has adequate resources, assisted by continued support to be provided by the parent Company, to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the Company's financial statements.

Wavetrak Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 27 May 2026 was Guy Armitage-Norton, who signed for and on behalf of ML Audit LLP.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which are considered to have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are the fair value of stock options and revenue recognition.

Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Revenue is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue from the provision of services in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
a) the amount of revenue can be reliably measured;
b) it is probable that future economic benefit will flow to the company;
c) the stage of completion of the contract at the end of the reporting period can be reliably measured; and
d) the costs incurred and the costs to complete the contract can be reliably measured.

The company is contracted by its ultimate parent company Wavetrak Inc. to deliver sales and marketing services under an intercompany agreement. The company is remunerated by its ultimate parent for these services.
 

Finance income and costs policy

Finance costs are charged to the Profit and Loss account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Wavetrak Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transaction.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non--monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income with 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'other operating income'.

Tax

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 taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Office equipment	3 years - Straight Line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Wavetrak Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Debtors

Short term debtors are measured at transaction price, less any impairment

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Other short term creditors are measured at the transaction price.

Other reserves
Other reserves represents capital contributions from the parent entity.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Leases

Rentals paid under operating leases are charged to Statement of comprehensive income on a straight-line basis over the lease terms.

Wavetrak Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

3	Staff numbers

The average number of persons employed by the company (including directors) during the year was 32 (2024 - 30).

4	Tangible assets

	Office equipment £	Total £
Cost or valuation
At 1 January 2025	135,607	135,607
Additions	9,995	9,995
Disposals	(69,921)	(69,921)
At 31 December 2025	75,681	75,681
Depreciation
At 1 January 2025	108,493	108,493
Charge for the year	14,307	14,307
Eliminated on disposal	(69,921)	(69,921)
At 31 December 2025	52,879	52,879
Carrying amount
At 31 December 2025	22,802	22,802
At 31 December 2024	27,114	27,114

5

Debtors

		2025 £	2024 £
Trade debtors		97,920	-
Amounts owed by related parties	9	288,046	239,854
Other debtors		16,326	21,546
Deferred tax assets		53,321	-
		455,613	261,400

Wavetrak Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

6

Creditors

Due within one year	2025 £	2024 £
Trade creditors	10,821	9,334
Social security and other taxes	94,930	88,101
Other creditors	13,602	-
Accruals and deferred income	95,850	3,200
	215,203	100,635

7	Pensions commitments

Included in the balance sheet are pensions commitments of £8,969 (2024 - £6,616).

8	Financial commitments, guarantees and contingencies

Included in the balance sheet are financial commitments under non-cancellable operating leases of £Nil (2024 - £Nil).

9	Related party transactions

Summary of transactions with parent

The company has taken advantage of the exemption contained in Section 33 of FRS 102 “Related Party Disclosures” from disclosing transactions with entities which are wholly-owned members of the group headed by Surfline\Wavetrak, Inc.

10	Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Surfline\Wavetrak, Inc. incorporated in United States of America.

 The smallest group to consolidate is Surfline\Wavetrak, Inc. These financial statements are available upon request from 2261 Market Street, Suite 10852, San Francisco, CA 94114, USA.