The notes on pages 3 to 13 form 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 income statement within the financial statements.true

Polymateria Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, 5 Fleet Place, London, EC4M 7RD.

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 £.

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

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 present information about the company as an individual entity and not about its group.

The company made losses during the year amounting to £4.7m. However, had net current assets of £1.1m at the reporting date. The company raised additional investment in January 2026 and February 2026, totalling £3.1m. At the date of signing, the company has cash reserves of £3.2m. The board has agreed cash flow forecasts to 30 June 2027 that show that these cash reserves are sufficient to meet its working capital requirements.true

As a result of the above, the directors consider that the company will continue as a going concern for a period of at least twelve months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis of accounting in preparing these financial statements.

Revenue is recognised at the fair value of the consideration receivable for goods and services provided in the normal course of business, and is shown net of VAT. Revenue is recognised when the goods are delivered or the service is performed to the extent that it is probable that economic benefits will flow into the company.

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.

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life of 10 years.

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

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably.

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

Property, plant and equipment 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 or valuation of assets less their residual values over their useful lives on the following 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 the statement of income.

Interests in subsidiaries 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 the statement of comprehensive income.

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.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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 the statement of comprehensive income.

Cash and cash equivalents are basic financial assets and include 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 statement of financial position 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 receivables 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, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

The proceeds received on issue of the company's convertible debt are allocated into their liability and equity components and presented separately in the Statement of Financial Position. The amount initially attributed to the debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument that did not include an option to convert.

The difference between the net proceeds of the convertible debt and the amount allocated to the debt component is credited directly to equity and is not subsequently remeasured.

On conversion, the debt and equity elements are credited to share capital and share premium as appropriate.

Transaction costs that relate to the issue of the instrument are allocated to the liability and equity components of the instrument in proportion to the allocation of proceeds.

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

Where the company issues instruments that include an equity component, the equity element is recognised within reserves at inception and is not subsequently remeasured.

The tax expense represents the sum of any tax payable and deferred tax.

Tax payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income 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. Any 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.

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 statement of comprehensive income, 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.

The costs of short-term employee benefits are recognised as a liability and an expense.

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

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

The fair value of equity-settled share based payments to employees is determined at the date of grant and is expensed on a straight-line basis over the vesting period based on the company’s estimate of shares or options that will eventually vest.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

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.

The company has issued share options to certain key individuals. In accordance with Section 26 of FRS102, in the absence of an observable market price for the equity instruments granted, the fair value of the equity-settled share based payments have been determined by the directors at the date of grant by reference to the observable data available in respect of the company's equity instruments.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

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.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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

Amounts owed by group undertakings are unsecured, interest-free and repayable on demand.

Included in other receivables are amounts falling due in more than one year totalling £40,629 (2024 - £50,699).

At the year end, the face value of convertible loan notes issued by the company was £6,750,104 (2024 - £6,750,104).

On 10 October 2022, £4,754,104 of convertible loan notes were issued. The notes are convertible into shares of the company upon issuance of a noteholder conversion notice or an exit event. The notes are interest free and convert upon an exit or upon certain conditions being met. The interest charged for the year is calculated by applying an effective interest rate of 17.07% to the liability component of the loan notes.

On 6 December 2024, £2,000,000 of convertible loan notes were issued. The notes are convertible into shares of the company upon issuance of a noteholder conversion notice or an exit event. The notes are interest free and convert upon an exit or upon certain conditions being met. The interest charged for the year is calculated by applying an effective interest rate of 18.70% to the liability component of the loan notes.

The net proceeds received from the issue of the convertible loan notes have been split between the financial liability element and an equity component, representing the fair value of the embedded option to convert the financial liability into equity.

The liability component is measured at amortised cost, and the difference between the carrying amount of the liability at the date of issue and the amount reported in the Statement of Financial Position represents the effective interest charged.

The equity component of the convertible loan notes has been credited to the convertible loan notes equity reserve.

The company has granted options to certain employees to subscribe for shares in the company under the terms of both an Enterprise Management Incentive (EMI) scheme and an unapproved share option scheme. A summary of the principal terms and conditions of all options that existed during the year is as follows:

The principal condition is that options may not be exercised after the tenth anniversary of the date of grant. In addition, all options have vesting conditions that are conditional on length of service, the company achieving specific targets, in the event of an acquisition or listing and/or achieving individual performance objectives. All options are settled through equity.

During the year, 6,201 share options were granted of which 1,826 were against Ordinary A shares, 2,450 were against Ordinary B shares, 800 were against Ordinary C2 shares and 1,125 were against Ordinary D2 shares. On exercise of these options, new shares will be issued to the option holder for the Ordinary A and B share options, with existing shares transferring from the existing shareholder to the option holder for Ordinary C2 and D2 share options.

Of the 17,016 share options outstanding at the reporting date, 2,638 have vested but have not yet been exercised. 2,378 vest based on investor specific conditions. 2,500 vest on an exit event, 1,250 vest if the company is sold at a business valuation in excess of £100m. A further 750 vest if the business valuation is in excess of £200m, and 1,500 vest if the business valuation is in excess of £300m, 3,000 vest if the business valuation is in excess of £400m, and 3,000 vest if the business valuation is in excess of £500m.

During the year, the company recognised an equity-settled share-based payment credit of £42,000 (2024 - £nil) which related to exercisable EMI share options. This was measured at fair value with reference to observable data.

Ordinary A Shares carry full voting rights and rights to dividends and capital distributions pari passu with B Shares and Preference shares.

Ordinary B Shares have no voting rights except on variation of class rights and rank pari passu with A Shares for dividends and capital distributions.

Ordinary C1 Shares have no general dividend rights but are entitled to a small percentage of proceeds on certain exits or special distributions and have no voting rights except on variation of class rights.

Ordinary C2 Shares have no dividend or capital distribution rights and no voting rights except on variation of class rights, but are entitled to a small percentage of proceeds on certain exits.

Ordinary D1 Shares have no general dividend rights but are entitled to a small percentage of proceeds on certain exits or special distributions and have no voting rights except on variation of class rights.

Ordinary D2 Shares have no dividend or capital distribution rights and no voting rights except on variation of class rights, but are entitled to a small percentage of proceeds on certain exits.

Preference A Shares carry full voting rights and rank ahead of Ordinary Shares on return of capital, and are entitled to arrears and accruals of dividends.

Preference B Shares carry full voting rights, have the highest priority on return of capital, are entitled to arrears and accruals of dividends, and are convertible into Ordinary A Shares under certain conditions.

During the year, 10,246 Ordinary A shares of £0.01 each were issued for a total consideration of £84,099.

In December 2025, January 2026, and February 2026, the company received total consideration of £3,603,464 in advance for the subscription of 7,096 Ordinary A shares of £0.01 each. These shares have been issued post year end.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

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: