REGISTERED NUMBER: 11700102 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

RAD PROPULSION LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

R Daltry

D J Hook

Mercia Fund Management (Nominees) Limited

One Planet Capital Limited

P R Byford

REGISTERED OFFICE:

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

REGISTERED NUMBER:

11700102 (England and Wales)

ACCOUNTANTS:

Lewis Brownlee (Chichester) Limited

Chartered Accountants

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

FIXED ASSETS

Intangible assets

4

23,479

19,389

Tangible assets

5

237,037

342,803

260,516

362,192

CURRENT ASSETS

Stocks

1,579,021

942,547

Debtors

6

1,068,204

881,664

Prepayments and accrued income

115,434

715,464

Cash at bank and in hand

714,157

512,300

3,476,816

3,051,975

CREDITORS

Amounts falling due within one year

7

1,250,937

1,046,134

NET CURRENT ASSETS

2,225,879

2,005,841

TOTAL ASSETS LESS CURRENT LIABILITIES

2,486,395

2,368,033

CREDITORS

Amounts falling due after more than one year

8

(1,000,000

)

-

ACCRUALS AND DEFERRED INCOME

(301,895

)

(131,142

)

NET ASSETS

1,184,500

2,236,891

CAPITAL AND RESERVES

Called up share capital

225

223

Share premium

6,359,768

6,063,891

Retained earnings

(5,175,493

)

(3,827,223

)

SHAREHOLDERS' FUNDS

1,184,500

2,236,891

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2026 and were signed on its behalf by:

D J Hook - Director

1.	STATUTORY INFORMATION

RAD Propulsion Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

Monetary amounts in these financial statements are rounded to the nearest £1.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

At the balance sheet date, the company continues to report negative retained earnings and a loss for the year, however the business has successfully continued its fund raising and financing both within the year and after the balance sheet date. The company continues to raise significant funds both in the form of equity and debt as detailed within the post balance sheet event note disclosure. The business has also continued to be successful with more non-dilutive funding in the form of grants and other funded research and development work.

The directors report a significant increase in operating activities during the year, and that the future forecasts demonstrate that the company will achieve positive profits and cash flows in the foreseeable future.

Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. These financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the company were unable to realise its assets and settle its liabilities as a going concern in the normal course of business. Such adjustments could be material.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intangible assets are not amortised until they are brought into use and are considered to have a useful life of 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

20-25% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

20% - 33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial instruments are classified by the director as basic or advanced following the conditions in FRS102 Section11. Basic financial instruments are recognised at amortised cost using the effective interest method, unless the effect of discounting would be immaterial, in which case they are stated at cost. The company has no advanced financial instruments.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grants

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Share-based payments

Certain employees of the company were awarded share options within a share option scheme. Each tranche is an award and is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. The compensation expense would be recognised over the tranche's vesting period based on the number of awards expected to vest, the directors however, believe the calculated charge is not material so the financial statements have not adjusted to reflect this. The number of awards expected to vest is reviewed over the vesting period, with any forfeitures recognised immediately. The number of issued options outstanding at the year end was 164,184 (2024: 164,184). The number of unissued options outstanding at the year end was 276,980 (2024: 276,980).

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2024 - 23 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2025

21,543

Additions

6,938

At 31 December 2025

28,481

AMORTISATION

At 1 January 2025

2,154

Charge for year

2,848

At 31 December 2025

5,002

NET BOOK VALUE

At 31 December 2025

23,479

At 31 December 2024

19,389

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

389,750

24,641

18,500

54,993

487,884

Additions

30,401

-

-

3,208

33,609

Disposals

(30,000

)

-

-

-

(30,000

)

Reclassification/transfer

-

(24,641

)

-

24,641

-

At 31 December 2025

390,151

-

18,500

82,842

491,493

DEPRECIATION

At 1 January 2025

105,872

10,852

2,775

25,582

145,081

Charge for year

90,444

-

3,696

15,235

109,375

Reclassification/transfer

-

(10,852

)

-

10,852

-

At 31 December 2025

196,316

-

6,471

51,669

254,456

NET BOOK VALUE

At 31 December 2025

193,835

-

12,029

31,173

237,037

At 31 December 2024

283,878

13,789

15,725

29,411

342,803

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

685,133

556,849

Other debtors

383,071

324,815

1,068,204

881,664

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

506,362

295,580

Taxation and social security

55,810

62,131

Other creditors

688,765

688,423

1,250,937

1,046,134

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Other creditors

1,000,000

-

Other creditors represent zero coupon unsecured convertible loan notes 2029. The loan notes form part of an instrument constituting up to £2,000,000. The loan notes are unsecured and rank pari passu with each other. No interest is payable on the notes, other than default interest if amounts due under the loan notes are not paid when due.

The notes are repayable or convertible in accordance with the terms of the loan note instrument. The maturity date is early 2029, unless an extended maturity date is agreed in writing between the company and the noteholder majority. The notes may be redeemed at principal amount in certain circumstances.

The notes may also convert into shares on a relevant fundraising, an exit event, maturity, or an agreed conversion.

9.	LEASING AGREEMENTS

At the balance sheet date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £158,333 (2024: £262,833).

10.	POST BALANCE SHEET EVENTS

After the balance sheet date a total of 2,670,786 ordinary B and ordinary C £0.0001 shares have been issued for consideration of £2,855,900.

On 13 April 2026, the company entered into a secured term loan agreement with Innovate UK Loans Limited for a term loan facility of up to £2,671,007. The facility is available for eligible project costs relating to the company's research and development projects and bears fixed interest at 7.4% per annum. The agreement provides for staged drawdowns and includes financial covenants and conditions precedent to drawdown.

As the loan agreement was entered into after the reporting date, the event is treated as a non-adjusting event and no liability has been recognised in these financial statements. The financial effect of the event is the availability of the facility of up to £2,671,007, subject to the terms and conditions of the agreement, including the timing and amount of actual drawdowns.