Atlantic Digital Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Atlantic Digital Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 13603491 . The registered office is Office 2.05 Clockwise, Old Town Hall, 30 Tweedy Road, Bromley, BR1 3FE.

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 as applicable to the small companies regime. The disclosure requirements of section 1A 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 convention. The principal accounting policies adopted are set out below.

2.2. Going Concern Disclosure

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

The validity of this assumption depends on the company being able to trade profitably in the future and the continued support of the companys' directors who are also shareholders. The financial statements do not include any adjustments that would result if the company continued to make losses and such support were withdrawn. If the company was unable to continue to trade, adjustments would have to be made to reduce the value of assets to their recoverable amounts, provide for further liabilities that may arise and to reclassify fixed assets and long-term liabilities as current assets and liabilities. The shareholders and directors have expressed their willingness to continue supporting the company for the foreseeable future and hence it is appropriate for the financial statements to be prepared on a going concern basis.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. 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:

Computer Equipment

25% straight-line

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Atlantic Digital Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2025

2.5. Financial Instruments

The company only enters into basic financial statements transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

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

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective of impairments found, an impairment loss is recognised in profit and loss accounts.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

2.6. Foreign Currencies

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

2.7. Taxation

Current tax

The current tax payable is based on taxable profit for the year. Taxable profit differs from net profit reported in the profit and loss account 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. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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 profits. Such assets and liabilities are not recognised if the timing differences arises from goodwill or from the initial recognition of the assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the assets is realised. Deferred tax is charged or credited in the profit and loss account, 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 relate to taxes levied by the same tax authority.

2.8. Game development costs

Expenditure incurred on the development of games is recognised as an expense in the Statement of Profit and Loss as incurred. The directors consider that, at the time development costs are incurred, there is insufficient certainty that the economic benefits attributable to individual game projects will flow to the company. Accordingly, the company has adopted a prudent policy of expensing development costs rather than capitalising them as intangible assets.

The directors review each project on an ongoing basis and would only capitalise development expenditure where the recognition criteria of the applicable financial reporting standard are demonstrably met, including technical feasibility, intention and ability to complete the asset, and the probability of generating future economic benefits.

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Atlantic Digital Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2025

2.9. Financial Assets & Liabilities

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions costs, 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. Such assets are subsequently carried amortised cost using effective interest method, less any impairment.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with financial institutions, and other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using effective interest method. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

2.10. Reclassification of expenses

During the year, the company undertook a review of the classification of its direct costs. As a result, the direct costs were reclassified in the current year as Development Costs and Licence Fees to more appropriately reflect their nature and use within the business.

The reclassification had no impact on net assets or profit or loss, as the carrying amount of the asset remained unchanged. The comparative figures have been restated accordingly.

2.11. Registrar Filing Requirements

The company has taken advantage of Companies Act 2006 section 444(1) and opted not to file the profit and loss account, directors report, and notes to the financial statements relating to the profit and loss account.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 3 (2024: 3)

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Atlantic Digital Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2025

4. Tangible Assets

	Computer Equipment
	£
Cost
As at 1 August 2024	-
Additions	611

As at 31 July 2025	611

Depreciation
As at 1 August 2024	-
Provided during the period	127

As at 31 July 2025	127

Net Book Value
As at 31 July 2025	484

As at 1 August 2024	-

5. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	9,000	9,000

6. Reserves

	Revaluation Reserve
	£
As at 1 August 2024	1,242

As at 31 July 2025	1,242

7. Related Party Transactions

As at 31 July 2025, the company was owed £115,482 (2024: £144,747) by Electric Elephant Games Ltd.

As at 31 July 2025, the inter-company loan to 7DG Media Ltd was repaid in full (2024: £27,700).

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		484		-

			484		-
CURRENT ASSETS
Debtors		1,118,439		2,100,742
Cash at bank and in hand		203,797		2,659

		1,322,236		2,103,401
Creditors: Amounts Falling Due Within One Year		(3,877,063 )		(2,701,107 )

NET CURRENT ASSETS (LIABILITIES)			(2,554,827 )		(597,706 )

TOTAL ASSETS LESS CURRENT LIABILITIES			(2,554,343 )		(597,706 )

NET LIABILITIES			(2,554,343 )		(597,706 )

CAPITAL AND RESERVES
Called up share capital	5		9,000		9,000
Revaluation reserve	6		1,242		1,242
Profit and Loss Account			(2,564,585 )		(607,948 )

SHAREHOLDERS' FUNDS			(2,554,343)		(597,706)