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Registered number: 12544797 DUNAD THERAPEUTICS LIMITED UNAUDITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
DUNAD THERAPEUTICS LIMITED COMPANY INFORMATION
Directors | Dr E A Roper
| Dr P S Huang
| O Slotboom
| M Bonney
| Dr V K Gupta
| L E Jones
Company secretary | Oakwood Corporate Secretary Limited
Registered number | 12544797
Registered office | The Officers' Mess
| Royston Road
| Cambridge
| Cambridge
| CB22 4QH
Accountants | Price Bailey LLP
| Chartered Accountants
| Tennyson House
| Cambridge Business Park
| Cambridge
| CB4 0WZ
DUNAD THERAPEUTICS LIMITED CONTENTS
| Page
Directors' Report | 1 - 3
Accountants' Report | 4
Consolidated Statement of Comprehensive Income | 5
Consolidated Balance Sheet | 6 - 7
Company Balance Sheet | 8 - 9
Consolidated Statement of Changes in Equity | 10 - 11
Company Statement of Changes in Equity | 12
Consolidated Statement of Cash Flows | 13
Notes to the Financial Statements | 14 - 33
DUNAD THERAPEUTICS LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The Directors present their report and the financial statements for the year ended 31 December 2025.
Principal activity
The principal activity of the Group continued to be that of research and experimental development on biotechnology.
Directors
The Directors who served during the year were:
Dr E A Roper
Dr P S Huang
O Slotboom
M Bonney
Dr V K Gupta
L E Jones
Results and dividends
The loss for the year, after taxation, amounted to £11,083,109 (2024 - loss £12,090,528). There were no dividends paid, recommended or declared during the current financial year or previous period. No dividends have been declared by the Group since the balance sheet date. Page 1
DUNAD THERAPEUTICS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Directors' responsibilities statement
The Directors are responsible for preparing the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Going Concern The group made a loss for the year of £10,993,467 (2024: £12,043,109 loss) and at the year-end has net liabilities of £204,708 (2024: net assets of £10,087,693), of which £2,676,657 is in cash (2024: £10,181,189). The financial statements have been prepared on a going concern basis, which assumes that the Group and parent company will continue as a going concern for the foreseeable future, and specifically, as a minimum for a period of at least twelve months from the date of approval of these financial statements. In making this assessment, management have considered, and the directors have approved, the following: ∙The Group and parent company current performance, current cash position and business plan; ∙The Group and parent company cashflow forecasts for a period of at least 12 months from the date of approval of these financial statements, as well as a base case cash flow forecast; and, ∙The Group’s track record of successful fundraising from investors. Since the Company’s incorporation, the Group has raised £37.1 million of equity from venture capital funds and pharma collaborators, plus a £2.2m convertible loan note. These funds have been used in research and development activities in accordance with the company’s business plan and strategy. In August 2025, the Company successfully completed a further round of funding from some of its existing investors in the form of a convertible loan note, committing up to £6.0 million of further investment. Of this balance, £2.0 million was received on 12 August 2025 and a further £0.9 million was received in April 2026. The remaining balance is expected to be received over the course of the next 12 months as certain scientific milestones are met, however, the third tranche of the convertible loan note are dependent on the continued success of the lead program, which is inherently uncertain. The directors have considered a number of cash flow forecast scenarios that will allow the Group to progress its research and development efforts, which include slowing spending as needed to extend the company’s cash runway. The result of the additional fundraising will determine the pace the Group advances its programs. Page 2
DUNAD THERAPEUTICS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 The directors appreciate the challenging nature of drug discovery and with the relatively short cash runway and the uncertain status of additional fundraising acknowledge a material uncertainty exists in relation to the ability of the Group and parent company to continue as a going concern. The Company has identified and executed a number of strategies to reduce costs and continues to explore non-dilutive funding opportunities, such as grants. The current cash balance and the convertible loan note proceeds provide a cash runway beyond 12 months from the date of filing the financial statements and thus management believes a going concern basis of preparation remains appropriate. Based on the Group’s history of strong investor support, ongoing discussions with further interested investors and belief in the science, the directors have a reasonable expectation that the Group and parent company will be able to continue to meet its commitments and liabilities as they fall due and to execute its business plan. For these reasons, the directors adopt a going concern basis in preparing the financial statements. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.
Small companies note
In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. This report was approved by the board on 30 June 2026 and signed on its behalf.
Dr P S Huang Director
Page 3
DUNAD THERAPEUTICS LIMITED CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF DUNAD THERAPEUTICS LIMITED FOR THE YEAR ENDED 31 DECEMBER 2025 In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Dunad Therapeutics Limited for the year ended 31 December 2025 which comprise and the related notes from the Company's accounting records and from information and explanations you have given to us. As a member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at icaew.com/regulation. This report is made solely to the Board of Directors of Dunad Therapeutics Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Dunad Therapeutics Limited and state those matters that we have agreed to state to them in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Dunad Therapeutics Limited and its Board of Directors, as a body, for our work or for this report. It is your duty to ensure that Dunad Therapeutics Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the Company's assets, liabilities, financial position and loss. You consider that Dunad Therapeutics Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or review of the financial statements of Dunad Therapeutics Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. Price Bailey LLP Chartered Accountants Tennyson House Cambridge Business Park Cambridge CB4 0WZ 1 July 2026 Page 4
DUNAD THERAPEUTICS LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024
| £ | £
Turnover |  | - | 5,214,555
Cost of sales |  | (4,017,914) | (6,972,807)
Gross loss |  | (4,017,914) | (1,758,252)
Administrative expenses |  | (7,209,777) | (11,730,055)
Other operating income |  | 128,742 | 228,325
Operating loss |  | (11,098,949) | (13,259,982)
Interest receivable and similar income |  | 186,657 | 372,733
Interest payable and similar expenses |  | (80,737) | -
Loss before taxation |  | (10,993,029) | (12,887,249)
Tax on loss |  | (438) | 844,140
Loss for the financial year |  | (10,993,467) | (12,043,109)
Currency translation differences |  | (89,642) | (47,419)
Other comprehensive loss for the year |  | (89,642) | (47,419)
Total comprehensive loss for the year |  | (11,083,109) | (12,090,528)
Loss for the financial year is all attributable to the owners of the Parent Company. The notes on pages 14 to 33 form part of these financial statements.
Page 5
DUNAD THERAPEUTICS LIMITED REGISTERED NUMBER: 12544797 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 11 |  | 212,768 |  | 322,177
|  |  | 212,768 |  | 322,177
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 14 | 260,130 |  | 1,662,303 |
Cash at bank and in hand | 15 | 2,676,657 |  | 10,181,189 |
|  | 2,936,787 |  | 11,843,492 |
Creditors: amounts falling due within one year | 16 | (1,073,525) |  | (2,077,976) |
Net current assets |  |  | 1,863,262 |  | 9,765,516
Total assets less current liabilities |  |  | 2,076,030 |  | 10,087,693
Creditors: amounts falling due after more than one year | 17 |  | (2,280,738) |  | -
Provisions for liabilities |  |  |  |  |
Net (liabilities)/assets |  |  | (204,708) |  | 10,087,693
Capital and reserves |  |  |  |  |
Called up share capital |  |  | 10,675 |  | 8,528
Share premium account |  |  | 36,860,570 |  | 36,427,272
Foreign exchange reserve |  |  | 19,672 |  | 109,314
Other reserves |  |  | 1,130,657 |  | 775,394
Profit and loss account |  |  | (38,226,282) |  | (27,232,815)
Total equity |  |  | (204,708) |  | 10,087,693
The Directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. 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. The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 June 2026.
Dr P S Huang
Director
The notes on pages 14 to 33 form part of these financial statements. Page 6
DUNAD THERAPEUTICS LIMITED REGISTERED NUMBER: 12544797 CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025 Page 7
DUNAD THERAPEUTICS LIMITED REGISTERED NUMBER: 12544797 COMPANY BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 11 |  | 8,119 |  | 32,180
|  |  | 8,119 |  | 32,180
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 14 | 226,969 |  | 1,564,290 |
Cash at bank and in hand | 15 | 287,459 |  | 7,996,627 |
|  | 514,428 |  | 9,560,917 |
Creditors: amounts falling due within one year | 16 | (490,170) |  | (902,998) |
Net current assets |  |  | 24,258 |  | 8,657,919
Total assets less current liabilities |  |  | 32,377 |  | 8,690,099
Creditors: amounts falling due after more than one year | 17 |  | (2,280,738) |  | -
Net (liabilities)/assets |  |  | (2,248,361) |  | 8,690,099
Capital and reserves |  |  |  |  |
Called up share capital |  |  | 10,675 |  | 8,528
Share premium account |  |  | 36,860,570 |  | 36,427,272
Other reserves |  |  | 1,130,657 |  | 775,394
Profit and loss account carried forward |  |  | (40,250,263) |  | (28,521,095)
Total equity |  |  | (2,248,361) |  | 8,690,099
The Directors consider that the Company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. 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. The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 June 2026.
Dr P S Huang
Director
The notes on pages 14 to 33 form part of these financial statements. Page 8
DUNAD THERAPEUTICS LIMITED REGISTERED NUMBER: 12544797 COMPANY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025 Page 9

|  | DUNAD THERAPEUTICS LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2025
|  | Called up share capital | Share premium account | Foreign exchange reserve | Other reserves | Profit and loss account | Total equity
|  | £ | £ | £ | £ | £ | £
| At 1 January 2024 | 2,737 | 26,576,162 | 156,733 | 418,925 | (15,189,706) | 11,964,851
| Comprehensive income for the year |  |  |  |  |  |
| Loss for the year | - | - | - | - | (12,043,109) | (12,043,109)
| Currency translation differences | - | - | (47,419) | - | - | (47,419)
| Shares issued during the year | 5,791 | 9,851,110 | - | - | - | 9,856,901
| Equity settled share-based payments | - | - | - | 356,469 | - | 356,469
| Total transactions with owners | 5,791 | 9,851,110 | - | 356,469 | - | 10,213,370
| At 1 January 2025 | 8,528 | 36,427,272 | 109,314 | 775,394 | (27,232,815) | 10,087,693
| Comprehensive income for the year |  |  |  |  |  |
| Loss for the year | - | - | - | - | (10,993,467) | (10,993,467)
| Currency translation differences | - | - | (89,642) | - | - | (89,642)
| Other comprehensive income for the year | - | - | (89,642) | - | - | (89,642)
| Shares issued during the year | 2,147 | 433,298 | - | - | - | 435,445
| Equity settled share-based payments | - | - | - | 355,263 | - | 355,263
| Total transactions with owners | 2,147 | 433,298 | - | 355,263 | - | 790,708
| At 31 December 2025 | 10,675 | 36,860,570 | 19,672 | 1,130,657 | (38,226,282) | (204,708)
Page 10

|  | DUNAD THERAPEUTICS LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
| The notes on pages 14 to 33 form part of these financial statements.
Page 11

|  | DUNAD THERAPEUTICS LIMITED |
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2025
|  | Called up share capital | Share premium account | Other reserves | Profit and loss account | Total equity
|  | £ | £ | £ | £ | £
| At 1 January 2024 | 2,737 | 26,576,162 | 418,925 | (15,747,012) | 11,250,812
| Comprehensive income for the year |  |  |  |  |
| Loss for the year | - | - | - | (12,774,083) | (12,774,083)
| Shares issued during the year | 5,791 | 9,851,110 | - | - | 9,856,901
| Equity settled share-based payments | - | - | 356,469 | - | 356,469
| Total transactions with owners | 5,791 | 9,851,110 | 356,469 | - | 10,213,370
| At 1 January 2025 | 8,528 | 36,427,272 | 775,394 | (28,521,095) | 8,690,099
| Comprehensive income for the year |  |  |  |  |
| Loss for the year | - | - | - | (11,729,168) | (11,729,168)
| Total comprehensive income for the year | - | - | - | (11,729,168) | (11,729,168)
| Contributions by and distributions to owners |  |  |  |  |
| Shares issued during the year | 2,147 | 433,298 | - | - | 435,445
| Equity settled share-based payments | - | - | 355,263 | - | 355,263
| Total transactions with owners | 2,147 | 433,298 | 355,263 | - | 790,708
| At 31 December 2025 | 10,675 | 36,860,570 | 1,130,657 | (40,250,263) | (2,248,361)
| The notes on pages 14 to 33 form part of these financial statements.
Page 12

DUNAD THERAPEUTICS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Loss for the financial year | (10,993,467) | (12,043,109)
Adjustments for: |  |
Depreciation of tangible assets | 97,322 | 115,740
Loss on disposal of tangible assets | 2,783 | 16,543
Interest paid | (80,737) | -
Interest received | (186,657) | (372,733)
Taxation credited | (438) | (844,140)
Decrease in debtors | 1,402,173 | 1,860,414
Decrease in creditors | (1,004,451) | (2,977,531)
Corporation tax received | 438 | -
Foreign exchange | 18,143 | (4,300)
Equity settled share based payment expense | 355,263 | 356,469
Income taxes received | - | 1,365,571
Net cash used from operating activities | (10,389,628) | (12,527,076)
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (22,220) | (125,458)
Sale of tangible fixed assets | 13,381 | 3,514
Interest received | 186,657 | 372,733
Net cash from investing activities | 177,818 | 250,789
Cash flows from financing activities |  |
Issue of ordinary shares | 435,445 | 9,856,901
Other new loans | 2,280,738 | -
Interest paid | 80,737 | -
Net cash used in financing activities | 2,796,920 | 9,856,901
Net (decrease) in cash and cash equivalents | (7,414,890) | (2,419,386)
Cash and cash equivalents at beginning of year | 10,181,189 | 12,647,994
Foreign exchange gains and losses | (89,642) | (47,419)
Cash and cash equivalents at the end of year | 2,676,657 | 10,181,189
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 2,676,657 | 10,181,189
| 2,676,657 | 10,181,189
Page 13
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
1. | General information
Dunad Therapeutics Limited ("the Company") is a private limited company domiciled and incorporated in England and Wales under the Companies Act 2006. The registered office is The Officers' Mess, Royston Road, Cambridge, United Kingdom, CB22 4QH. The Group consists of Dunad Therapeutics Limited and all of its subsidiaries. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The following principal accounting policies have been applied: Page 14
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.2 | Basis of consolidation
The Group's financial statements consist of the financial statements of the Parent Company Dunad Therapeutics Limited together with all entities controlled by the Parent Company (its subsidiaries). All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group. All intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries are consolidated in the Group's financial statements from the date that control commences until the date that control ceases. The Parent Company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The Parent Company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements: ∙Section 7 'Statement of Cash Flows': Presentation of a Statement of Cash Flow and related notes and disclosures; ∙Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fairvalue changes recognised in profit or loss and in other comprehensive income; ∙Section 33 'Related Party Disclosures': Compensation for key management personnel. Page 15
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.3 | Going concern
The Group made a loss for the year of £10,993,467 (2024: £12,043,109 loss) and at the year-end has net liabilities of £204,708 (2024: net assets of £10,087,693), of which £2,676,657 is in cash (2024: £10,181,189). The financial statements have been prepared on a going concern basis, which assumes that the Group and parent company will continue as a going concern for the foreseeable future, and specifically, as a minimum for a period of at least twelve months from the date of approval of these financial statements. In making this assessment, management have considered, and the directors have approved, the following: ∙The Group and parent company current performance, current cash position and business plan; ∙The Group and parent company cashflow forecasts for a period of at least 12 months from the date of approval of these financial statements, as well as a base case cash flow forecast; and, ∙The Group’s track record of successful fundraising from investors. Since the Company’s incorporation, the Group has raised £37.1 million of equity from venture capital funds and pharma collaborators, plus a £2.2m convertible loan note. These funds have been used in research and development activities in accordance with the company’s business plan and strategy. In August 2025, the Company successfully completed a further round of funding from some of its existing investors in the form of a convertible loan note, committing up to £6.0 million of further investment. Of this balance, £2.0 million was received on 12 August 2025 and a further £0.9 million was received in April 2026. The remaining balance is expected to be received over the course of the next 12 months as certain scientific milestones are met, however, the third tranche of the convertible loan note are dependent on the continued success of the lead program, which is inherently uncertain. The directors have considered a number of cash flow forecast scenarios that will allow the Group to progress its research and development efforts, which include slowing spending as needed to extend the company’s cash runway. The result of the additional fundraising will determine the pace the Group advances its programs. The directors appreciate the challenging nature of drug discovery and with the relatively short cash runway and the uncertain status of additional fundraising acknowledge a material uncertainty exists in relation to the ability of the Group and parent company to continue as a going concern. The Company has identified and executed a number of strategies to reduce costs and continues to explore non-dilutive funding opportunities, such as grants. The current cash balance and the convertible loan note proceeds provide a cash runway beyond 12 months from the date of filing the financial statements and thus management believes a going concern basis of preparation remains appropriate. Based on the Group’s history of strong investor support, ongoing discussions with further interested investors and belief in the science, the directors have a reasonable expectation that the Group and parent company will be able to continue to meet its commitments and liabilities as they fall due and to execute its business plan. For these reasons, the directors adopt a going concern basis in preparing the financial statements. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern. Page 16
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. 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. On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
| 2.5 | Turnover
Turnover recognised in the financial statements represents licensing and collaboration income. Revenue from licensing income is recognised evenly over the period of the licensing agreement. Revenue from collaboration income is recognised in the period in which the work has been incurred, inline with the collaboration agreement.
| 2.6 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.7 | Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure. Page 17
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.8 | Interest receivable and similar income
Interest income is recognised in profit or loss using the effective interest method.
| 2.9 | Interest payable and similar expenses
Interest payable on the liability component of convertible loan notes is recognised as a finance cost in profit or loss using the effective interest method. This includes the amortisation of any discount arising on initial recognition of the loan. Interest is charged over the term of the loan to reflect a constant rate of interest on the carrying amount of the liability.
| 2.10 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
| 2.11 | Share-based payments
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 over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity. 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.
| 2.12 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive 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 and the Group operate and generate income.
| 2.13 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 18
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.13 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Fixtures and fittings | - | 5 years straight line
|  |  |  | Computer equipment | - | 3 years straight line
|  |  |  | Laboratory equipment | - | 5 years straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.14 | Valuation of investments
In the Parent Company financial statements, investments in subsidiaries, associates and jointly controlled 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 the profit or loss. A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
| 2.15 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.16 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. Financial instruments are recognised in the Group's Balance Sheet when the Group 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. Page 19
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.16 | Financial instruments (continued)
Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic 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 Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow Group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Page 20
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.16 | Financial instruments (continued)
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled. Page 21
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the Group'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. Key sources of estimation uncertainty 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: Research and development tax credit The tax recoverable balance is calculated based on the Parent Company's expected eligibility to qualify for enhanced tax deductions for research and development under the SME scheme. Eligibility is dependent on both the size of the Parent Company and its ownership structure. Convertible loan notes The Group has issued convertible loan notes which are accounted for as compound financial instruments, with separate liability and equity components recognised on initial recognition. The liability component is measured by discounting the future cash flows at an estimated market rate of interest for a similar instrument without a conversion feature. Share-based payments The Group operates equity-settled share option schemes. The fair value of options granted is determined at the grant date using the Black Scholes model, which requires the use of estimates and assumptions, including expected volatility, expected option life, risk-free interest rates and dividend yield. Page 22
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Licence Income | - | 3,140,351
| Collaboration income | - | 2,074,204
|  | - | 5,214,555
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | - | 5,214,555
|  | - | 5,214,555
5. | Operating loss
| The operating loss is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Research & development charged as an expense | 4,939,133 | 6,997,223
| Exchange differences | 196,337 | 61,369
| Other operating lease rentals | 214,413 | 550,144
| Share-based payment | 355,263 | 356,469
| Government grants | - | (228,325)
| Depreciation of tangible fixed assets | 97,322 | 115,740
| Loss on disposal of tangible fixed assets | 16,347 | 16,543
Page 23
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
6. | Employees
| Staff costs, including Directors' remuneration, were as follows:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Wages and salaries | 3,755,788 | 5,756,986 | 982,189 | 1,491,199
| Social security costs | 100,829 | 277,593 | 71,076 | 151,532
| Cost of defined contribution scheme | 121,482 | 162,304 | 50,748 | 60,095
|  | 3,978,099 | 6,196,883 | 1,104,013 | 1,702,826
| The average monthly number of employees, including the Directors, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2025 | 2024 | 2025 | 2024
|  |  | No. | No. | No. | No.
|  | Total | 19 | 28 | 7 | 10
7. | Directors' remuneration
| The highest paid Director received remuneration of £610,138 (2024 - £600,093). During the year the total share-based payment charge recognised in relation to options held by the directors was £229,714 (2024: £219,383).
8. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 186,657 | 372,733
|  | 186,657 | 372,733
9. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Convertible loan note interest | 80,737 | -
|  | 80,737 | -
Page 24
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
10. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 438 | (844,140)
|  | 438 | (844,140)
| Total current tax | 438 | (844,140)
| Deferred tax |  |
| Total deferred tax | - | -
| Tax on loss | 438 | (844,140)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Loss on ordinary activities before tax | (10,993,029) | (12,887,249)
| Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | (2,748,257) | (3,221,812)
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 90,322 | 89,117
| Adjustment for net presentation of Research & Development Expenditure Credit | 7,550 | 19,027
| Additional deduction for R&D expenditure | - | (1,263,998)
| Surrender of tax losses for R&D tax credit refund | - | 2,115,666
| Movement in deferred tax not recognised | 2,650,823 | 1,417,860
| Total tax charge for the year | 438 | (844,140)
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 25
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
11. | Tangible fixed assets
| Group
|  | Fixtures and fittings | Computer equipment | Laboratory equipment | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 January 2025 | 23,963 | 164,153 | 367,978 | 556,094
| Additions | - | 4,660 | 17,560 | 22,220
| Disposals | (1,480) | (33,263) | (11,937) | (46,680)
| Exchange adjustments | (219) | (4,142) | (20,349) | (24,710)
| At 31 December 2025 | 22,264 | 131,408 | 353,252 | 506,924
| Depreciation |  |  |  |
| At 1 January 2025 | 9,726 | 116,513 | 107,678 | 233,917
| Charge for the year on owned assets | 4,657 | 27,647 | 65,018 | 97,322
| Disposals | (567) | (21,195) | (8,754) | (30,516)
| Exchange adjustments | (61) | (2,206) | (4,300) | (6,567)
| At 31 December 2025 | 13,755 | 120,759 | 159,642 | 294,156
| Net book value |  |  |  |
| At 31 December 2025 | 8,509 | 10,649 | 193,610 | 212,768
| At 31 December 2024 | 14,237 | 47,640 | 260,300 | 322,177
Page 26
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 11.Tangible fixed assets (continued)
| Company
|  | Fixtures and fittings | Computer equipment | Laboratory equipment | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 January 2025 | 20,318 | 97,218 | 63,684 | 181,220
| Disposals | - | (10,039) | (11,937) | (21,976)
| At 31 December 2025 | 20,318 | 87,179 | 51,747 | 159,244
| Depreciation |  |  |  |
| At 1 January 2025 | 8,815 | 83,970 | 56,255 | 149,040
| Charge for the year on owned assets | 4,064 | 12,568 | 4,246 | 20,878
| Disposals | - | (10,039) | (8,754) | (18,793)
| At 31 December 2025 | 12,879 | 86,499 | 51,747 | 151,125
| Net book value |  |  |  |
| At 31 December 2025 | 7,439 | 680 | - | 8,119
| At 31 December 2024 | 11,503 | 13,248 | 7,429 | 32,180
Page 27
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
12. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 January 2025 | 7,509,869
| Additions | 5,000,000
| At 31 December 2025 | 12,509,869
| Impairment |
| At 1 January 2025 | 7,509,869
| Revaluations | 5,000,000
| At 31 December 2025 | 12,509,869
| The Parent Company holds a 100% investment in 2740376 Ontario Inc., a Canadian holding company. Indirectly the Parent Company holds an interest in a Canadian intermediate holding company 2752591 Ontario Inc. and its Canadian subsidiary 2692372 Ontario Inc. The acquisition was effected using an exchangeable share structure mechanism, under which Dunad Therapeutics Limited will be required to issue 20,000,000 ordinary shares at the point when exchange rights are exercised by the holders of exchangeable nonequity shares that have been issued by 2752591 Ontario Inc. The Parent Company also owns a wholly owned subsidiary Dunad Therapeutics US, Inc. This was purchased for $0.01 for 1 share of common stock. During the year the Parent Company made a capital contribution of £5,000,000 to Dunad US Inc, which was subsequently impaired to nil. On consolidation this impairment has been added back.
13. | Subsidiaries
Details of the company's subsidiaries at 31 December 2025 are as follows: Page 28
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
14. | Debtors
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Other debtors | 180,881 | 1,443,405 | 167,561 | 1,370,123
| Prepayments and accrued income | 75,165 | 215,060 | 55,324 | 190,329
| Tax recoverable | 4,084 | 3,838 | 4,084 | 3,838
|  | 260,130 | 1,662,303 | 226,969 | 1,564,290
15. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Cash at bank and in hand | 2,676,657 | 10,181,189 | 287,459 | 7,996,627
|  | 2,676,657 | 10,181,189 | 287,459 | 7,996,627
16. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Trade creditors | 368,802 | 814,075 | 316,059 | 703,143
| Other creditors | 13,130 | 17,081 | 10,374 | 10,317
| Accruals and deferred income | 691,593 | 1,246,820 | 163,737 | 189,538
|  | 1,073,525 | 2,077,976 | 490,170 | 902,998
Page 29
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
17. | Creditors: Amounts falling due after more than one year
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Convertible loan | 2,280,738 | - | 2,280,738 | -
|  | 2,280,738 | - | 2,280,738 | -
| The Group has issued convertible loan notes which are classified as compound financial instruments. On initial recognition, the liability component is measured as the present value of the future cash flows, discounted at a market rate of interest applicable to a comparable instrument without a conversion option. The residual amount, representing the value of the conversion right, is recognised within equity. Subsequently, the liability component is measured at amortised cost using the effective interest method, with the finance cost recognised in the income statement over the term of the instrument. The equity component is not remeasured after initial recognition.
18. | Financial instruments
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Financial assets |  |  |  |
| Basic financial assets measured at amortised cost | 52,139 | 1,443,405 | 38,819 | 1,370,123
| Financial liabilities |  |  |  |
| Other financial liabilities measured at fair value | 2,280,738 | - | 2,280,738 | -
| Basic financial liabilities measured at amortised cost | 1,142,797 | 2,077,976 | 559,442 | 902,998
|  | 3,423,535 | 2,077,976 | 2,840,180 | 902,998
| Financial assets measured at amortised cost comprise certain other debtors.
| Financial liabilities measured at amortised cost comprise trade creditor and certain other creditors and accruals. Financial liabilities measured at fair value comprise convertible loan notes.
Page 30
DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
19. | Analysis of net debt
|  | At 1 January 2025 | Cash flows | Interest | At 31 December 2025
|  | £ | £ | £ | £
| Cash at bank and in hand | 10,181,189 | (7,504,532) | - | 2,676,657
| Debt due after 1 year | - | (2,200,001) | (80,737) | (2,280,738)
|  | 10,181,189 | (9,704,533) | (80,737) | 395,919
20. | Pension commitments
The Group operates a defined contributions pension scheme. The assets of the scheme are held eparately from those of the Group in an independently administered fund. The pension cost charge epresents contributions by the Group to the fund and amounted to £121,482 (2024 - £162,304).
21. | Commitments under operating leases
| At 31 December 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Not later than 1 year | 130,484 | 336,692 | 18,900 | 18,000
| Later than 1 year and not later than 5 years | - | 876,403 | - | -
|  | 130,484 | 1,213,095 | 18,900 | 18,000
22. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 132,304 (2024 - 132,300) Ordinary A1 shares of £0.01 each | 1,323 | 1,323
|  | 50,710 (2024 - 50,700) Ordinary A2 shares of £0.01 each | 507 | 507
|  | 153,715 (2024 - 153,700) Ordinary B1 shares of £0.01 each | 1,537 | 1,537
|  | 458,020 (2024 - 440,200) Ordinary B2 shares of £0.01 each | 4,580 | 4,402
|  | 69,883 (2024 - 69,100) Ordinary Type 2 shares of £0.01 each | 699 | 691
|  | 11,567 (2024 - 6,800) Ordinary Shares shares of £0.01 each | 116 | 68
|  | 191,304 (2024 - NIL) Ordinary B3 shares of £0.01 each | 1,913 | -
|  |  | 10,675 | 8,528
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DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
23. | Share-based payments
| The Parent Company has Equity-settled share-based payments which 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. During the year, the Parent Company recognised total share-based payment expenses of £355,263 (2024: £356,469) which related to equity settled share based payment transactions. As at 31 December 2025 there were outstanding options in respect of 13,693,929 shares relating to 19 employees and advisors to the Parent Company and/or its subsidiaries, past or present. 8,838,044 of these options are vested as of 31 December 2025. Options have been granted at various dates. Option holders acquire the right to exercise the options over a period of one to four years from the date of the vesting commencement date in each option grant, The exercise price of 172,370 options is £.0001, 1,067,808 options is £.05 and the remaining 12,287,081 options is $.07. Options lapse on the tenth anniversary of the option grant date.
24. | Related party transactions
| The Parent Company has an exclusive license for the development of the intellectual property owned by 2692372 Ontario Inc. Consultancy fees of £NIL (2024: £165,869) were invoiced by DT Drug Discovery Consulting Inc. Patrick Gunning is a shareholder of DT Drug Discovery Consulting Inc. At the year end there was a balance of £nil (2024: £NIL) owed by DT Drug Discovery Consulting Inc. CRO fees of £NIL (2024: £1,414,133) were invoiced by Dalriada Drug Discovery Inc. Patrick Gunning is a director and shareholder of Dalriada Drug Discovery Inc. At the year end there was a balance of £NIL (2024: £88,755) owed to Dalriada Drug Discovery Inc. Fees of £NIL (2024: £9,831) were invoiced from BioGeneration Ill Services BV. At the year end there was a balance of £NIL (2024: £994) owed to BioGeneration III Services BV. Fees of £NIL (2024: £11,890) were invoiced from Wellington Partners Life Science. At the year end there was a balance of £NIL (2024: £178l) owed to Wellington Partners Life Science. Fees of £NIL (2024: £7,616) were invoiced by Epidarex Capital Ltd (Epidarex Management Ltd). At the year end there was a balance of £NIL (2024: £697) owed to Epidarex Capital (Epidarex Management Ltd). Fees of £NIL (2024: £5,214,555) were invoiced to Novartis Pharma AG in relation to collaboration and licence income. At the year end there was a balance of £nil (2024: £NIL) owed from Novartis Pharma AG, and included within creditors there was a balance of £nil (2024: NIL) in relation to deferred collaboration income.
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DUNAD THERAPEUTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
25. | Post balance sheet events
On 5 May 2026, the Company received £762,500 of further funding under the £6.0 million convertible loan note commitment entered into in August 2025 bringing the total amount of convertible loan notes outstanding as of May 2026 to £2,962,500. The Company issued 19,891,314 Ordinary B3 Shares for £1,989.15 to certain existing investors on 5 May 2026 and also issued 5,070 Ordinary Shares to satisfy the exercise of options over Ordinary Shares between 1 January 2026 and May 2026.
26. | Controlling party
At the balance sheet date, there was no individual controlling party.
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