Charco Neurotech Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Charco Neurotech Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 12028625 . The registered office is Wellington House, East Road, Cambridge, CB1 1BH.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

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

2.2. Going Concern Disclosure

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

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

2.3. Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets are made up of Licences and Patents. They are amortised to profit and loss account over their estimated economic life of 2 years and 7 years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	Straight line over 5 years
Fixtures & Fittings	Straight line over 4 years
Computer Equipment	Straight line over 3 years

2.6. Investments

Unlisted investments are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, any changes in fair value are recognised in profit and loss.

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.8. Cash and Cash Equivalents

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

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Charco Neurotech Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

2.9. Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are recognised at transaction price including transaction costs.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities.

2.10. Taxation

Tax is recognised in profit or loss except that a charge is attributable to an item of income and expense recognised as other comphrehensive income or to an item recognised directly in equity is also recognised in other comphrehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

2.11. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.12. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

2.13. Research and Development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised to on a straight line basis over their expected useful economic lives.

If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.

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Charco Neurotech Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

2.14. Share Based Payments

The company operates an equity-settled, share-based compensation plan, under which the entity received 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.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 10 (2025: 17)

4. Intangible Assets

	Other
	£
Cost
As at 1 March 2025	129,105

As at 28 February 2026	129,105

Amortisation
As at 1 March 2025	60,894
Provided during the period	11,872

As at 28 February 2026	72,766

Net Book Value
As at 28 February 2026	56,339

As at 1 March 2025	68,211

5. Tangible Assets

	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 March 2025	92,374	18,222	47,059	157,655
Additions	-	-	1,824	1,824
Disposals	(636 )	-	-	(636 )

As at 28 February 2026	91,738	18,222	48,883	158,843

Depreciation
As at 1 March 2025	52,802	9,360	34,714	96,876
Provided during the period	18,438	4,556	9,755	32,749
Disposals	(223 )	-	-	(223 )

As at 28 February 2026	71,017	13,916	44,469	129,402

Net Book Value
As at 28 February 2026	20,721	4,306	4,414	29,441

As at 1 March 2025	39,572	8,862	12,345	60,779

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Charco Neurotech Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

6. Investments

	Unlisted
	£
Cost or Valuation
As at 1 March 2025	62,327

As at 28 February 2026	62,327

Provision
As at 1 March 2025	-

As at 28 February 2026	-

Net Book Value
As at 28 February 2026	62,327

As at 1 March 2025	62,327

Subsidiaries

Details of the company's subsidiaries as at 28 February 2026 are as follows:

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Charconeurotech Inc.	South Korea	Common Stock	100.00%	-
Charconeurotech LLC	USA	Common Stock	100.00%	-

7. Stocks

	2026	2025
	£	£
Stock	170,049	266,130

8. Debtors

	2026	2025
	£	£
Due within one year
Prepayments and accrued income	59,036	268,017
Other debtors	89,902	85,403
Corporation tax recoverable assets	46,636	222,308
VAT	14,027	17,644
Amounts owed by subsidiaries	979	672

	210,580	594,044

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Charco Neurotech Ltd

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

9. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Trade creditors	18,374	30,416
Other taxes and social security	17,187	22,704
Other creditors	2,424	3,558
Accruals and deferred income	79,613	187,195

	117,598	243,873

10. Share Capital

	2026	2025
Allotted, called up and fully paid	£	£
1,203,723 Ordinary Shares of £ 0.00001 each	12	12
5,400,196 Seed shares of £ 0.00001 each	54	54
1,137,622 Deferred shares of £ 0.00001 each	11	11

	77	77

11. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2026	2025
	£	£
Not later than one year	-	11,651

	-	11,651

12. Related Party Disclosures

The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		56,339		68,211
Tangible Assets	5		29,441		60,779
Investments	6		62,327		62,327

			148,107		191,317
CURRENT ASSETS
Stocks	7	170,049		266,130
Debtors	8	210,580		594,044
Cash at bank and in hand		559,857		2,385,956

		940,486		3,246,130
Creditors: Amounts Falling Due Within One Year	9	(117,598 )		(243,873 )

NET CURRENT ASSETS (LIABILITIES)			822,888		3,002,257

TOTAL ASSETS LESS CURRENT LIABILITIES			970,995		3,193,574

NET ASSETS			970,995		3,193,574

CAPITAL AND RESERVES
Called up share capital	10		77		77
Share premium account			12,063,150		12,063,150
Fair Value Reserve			3,268,557		3,064,276
Profit and Loss Account			(14,360,789 )		(11,933,929 )

SHAREHOLDERS' FUNDS			970,995		3,193,574