These financial statements and reports have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the statement of comprehensive income has been taken.

For the year ended 30 November 2025, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year ended 30 November 2025 in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The financial statements were approved and authorised for issue by the Board of Directors on 31 July 2026.

Drug Delivery International Limited is a private company limited by shares, registered in Scotland. The address of the registered office and registration number are as below:

Bio Imaging Unit, Basement Medical Block

Within Glasgow Royal Infirmary

84 Castle Street

Glasgow, Scotland

G4 0SF

These financial statements have been prepared in accordance with FRS 102 the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland as adapted by Section 1A of FRS 102 and the Companies Act 2006.

The nature of the company's operations and principal activity during the year was other research and experimental development on natural sciences and engineering.

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

At 30 November 2025, the Company owed £892,194 to group undertakings within current liabilities (£616,290 to BDD Pharma Ltd and £275,904 to Bio-Images Drug Delivery Ltd). The directors of BDD Pharma Ltd and the directors of Bio-Images Drug Delivery Ltd have each confirmed in writing that they will not seek repayment of these balances for a period of not less than twelve months from the date of approval of these financial statements. Bio-Images Drug Delivery Ltd has further confirmed that it will provide such additional financial support to the Company as may be required to enable it to meet its liabilities as they fall due throughout the going concern period.

The Company holds intangible assets of £774,169, principally comprising capitalised development expenditure (£771,669) representing the group's drug delivery technology platform. At 30 November 2025, the directors carried out a review for indicators of impairment in accordance with FRS 102 Section 27. Having regard to: (i) the active contracted CDMO study pipeline operated by BDD Pharma Ltd using the group's technology; (ii) new licence fee income of £234,102 generated by BDD Pharma Ltd in the year, representing the first year of recurring revenue from the commercialisation of the group's IP; and (iii) the continued capitalisation of development expenditure (£94,187 added in the year) confirming ongoing technical feasibility and commercial intent - the directors are satisfied that no impairment of the carrying value of intangible or tangible assets is required at 30 November 2025.

The group's financial position has been strengthened by the allotment of 116,368 ordinary shares by Bio-Images Drug Delivery Ltd on 9 February 2026, raising gross proceeds of £799,448. This transaction supports the group's ability to continue providing intragroup financial support to the Company throughout the going concern period.

Having considered the confirmed deferral of intragroup debt, the group's external funding position, the additional equity capital raised by the parent post year-end, and the absence of impairment indicators on the Company's IP and laboratory assets, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, these financial statements have been prepared on the going concern basis of accounting.

Turnover represents net invoiced sales of goods and services, excluding VAT, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration. Licence fees and royalties paid for the use of intangible assets are recognised in accordance with the substance of the licensing agreement.

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research expenditure is written off in the period in which it is incurred.

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

• It is technically feasible to complete the intangible asset so that it will be available for use or sale;

• There is the intention to complete the intangible asset and use or sell it;

• There is the ability to use or sell the intangible asset;

• The use or sale of the intangible asset will generate probable future economic benefits;

• There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and

• The expenditure attributable to the intangible asset during its development can be measured reliably.

Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

A financial asset or financial liability is recognised only when the company becomes a party to the contractual provisions of the financial instrument.

Basic financial assets, which include trade and other debtors, amounts due from group undertakings, and cash and bank balances, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future receipts discounted at the market rate of interest for a similar debt instrument.

Basic financial liabilities, which include trade creditors, bank loans and overdrafts, and other creditors, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future receipts discounted at the market rate of interest for a similar debt instrument.

At each reporting date the company assesses whether there is objective evidence that any financial asset has been impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due. The amount of the provision is recognised immediately in profit or loss.

Hire purchase and finance lease agreements are secured over the assets to which they relate.

At the year-end Drug Delivery International Limited owed £616,290 (2024: £549,861) to BDD Pharma Ltd. The loan is interest free and there are no fixed repayment terms, although the directors of the company have indicated that they will not be seeking repayment of the loan for a period of at least 12 months from signing these financial statements.

At the year-end Drug Delivery International Limited owed £275,904 (2024: £219,904) to Bio-Images Drug Delivery Ltd. The loan is interest free and there are no fixed repayment terms, although the directors of the parent company have indicated that they will not be seeking repayment of the loan for a period of at least 12 months from signing these financial statements.

The immediate and ultimate parent company is Bio-Images Drug Delivery Ltd, whose registered office address is Bio Imaging Unit, Basement Medical Block Within Glasgow Royal Infirmary, 84 Castle Street, Glasgow, Scotland, G4 0SF.