REGISTERED NUMBER: 11546990 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

KIT-AR LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

DIRECTORS:

Mr J C Costa

Mr M F Oliveira

Mr L M C De Lemos

Mr T J Moe Borseth

Mr A Morro Vall

REGISTERED OFFICE:

Kings Cross Hq,

344-354 Grays Inn Road,

London

WC1X 8BP

REGISTERED NUMBER:

11546990 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Level 5A

Maple House

149 Tottenham Court Road

London

W1T 7NF

The directors present their strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

KIT-AR Limited operates in the information technology sector, developing augmented technology solutions for use in manufacturing and industrial environments. The company's technology is focused on supporting digitalisation, process improvement and knowledge transfer in production and operational settings. During the year the company continued to develop its technology platform and remained focused on commercial engagement within its core manufacturing verticals, including the automotive and aerospace sectors.

The company reported revenue of GBP 133,576 for the year ended 31 December 2025 (2024: GBP 149,964). The reduction reflects the timing and nature of project activity recognised in the year. Revenue continued to be generated from the company's technology services, with the 2025 revenue arising from Europe. The directors continue to focus on converting customer engagement and project opportunities into recurring commercial activity.

Gross profit was GBP 125,848 (2024: GBP 137,083), representing a gross margin of approximately 94.2% (2024: 91.4%). The company continued to maintain a high gross margin profile, reflecting the technology and service-led nature of its activities.

Administrative expenses reduced significantly to GBP 288,218 (2024: GBP 466,974). This reduction reflects management's continued focus on cost discipline, prioritisation of core expenditure and the alignment of the cost base with the current stage of commercial development.

The loss before taxation reduced to GBP 147,565 (2024: GBP 329,813), representing an improvement of approximately 55%. While the company remains in a development and commercialisation phase, the reduced loss demonstrates progress in managing expenditure and moving the business towards a more sustainable operating profile.

The company maintained a positive net asset position at the year end, with shareholders' funds of GBP 1,640,792 (2024: GBP 1,788,041). Net current assets were GBP 43,987 (2024: GBP 291,495), and cash at bank was GBP 22,063 (2024: GBP 25,595). Operating cash flow improved to a net inflow of GBP 9,859 (2024: outflow of GBP 491,404), reflecting improved working capital management during the year.

The directors consider that the company has made measured progress during the year. The balance sheet continues to include significant investment in the group and internally developed technology assets. The directors remain focused on preserving liquidity, securing appropriate support for the business and developing the commercial potential of the technology platform.

PRINCIPAL RISKS AND UNCERTAINTIES

Commercialisation and market adoption risk

Potential impact on the company: The company operates in a technology market where the timing of customer adoption, procurement decisions and conversion of project opportunities into revenue can be uncertain. Delays in customer decision-making may affect revenue visibility and cash flow timing.

Mitigating factors or controls: The directors mitigate this risk by maintaining engagement with existing and prospective customers, focusing on manufacturing sectors where the company has relevant domain knowledge, and prioritising product development and commercial activities that support adoption of the company's technology.

Funding and liquidity risk

Potential impact on the company: The company continues to invest in technology development and commercialisation while reporting losses. As a result, the availability of working capital and ongoing investor or other financial support remains important to the company's ability to execute its plans.

Mitigating factors or controls: The directors monitor cash flow requirements, maintain cost discipline and continue to engage with existing and prospective sources of funding. The going concern assessment is dependent on the reasonableness of forecast trading, expected funding availability and the continued support assumed by management.

Research and development and technology risk

Potential impact on the company: The value of the company's technology depends on successful development, protection and commercial deployment. There is a risk that development costs may not generate the expected future economic benefits or that the timing of those benefits is later than anticipated.

Mitigating factors or controls: The directors monitor development priorities, assess the recoverability of technology-related assets and focus resources on activities expected to support product enhancement, customer adoption and long-term value creation.

Group and related party recoverability risk

Potential impact on the company: The company has amounts due from group undertakings and holds an investment in its subsidiary. Recoverability is dependent on the performance, funding and future prospects of the subsidiary and wider group activities.

Mitigating factors or controls: Management monitors the subsidiary's financial position and expected future activity. The directors have assessed the investment and related balances for impairment and recoverability, including consideration of net assets, funding support and future business plans.

Foreign exchange risk

Potential impact on the company: The company has exposure to Euro-denominated transactions and balances. Foreign exchange movements may affect reported results and the carrying value of balances denominated in foreign currencies.

Mitigating factors or controls: The directors monitor foreign currency exposures as part of cash flow and working capital management. The level of exposure is reviewed in the context of the company's trading and group activities.

Key personnel and operational capacity risk

Potential impact on the company: As a developing technology business, the company depends on key personnel, technical knowledge and management oversight. Loss of key personnel or constraints in operational capacity could affect delivery of development and commercial objectives.

Mitigating factors or controls: The directors seek to retain relevant technical and management expertise, use external advisers where appropriate and prioritise resources towards activities that support product development and commercial delivery.

FUTURE OUTLOOK AND STRATEGIC FOCUS

Commercial development

The directors expect the company to continue progressing its commercial engagement in core manufacturing sectors. The focus will remain on opportunities where the company's technology can support process improvement, knowledge transfer and digitalisation in industrial environments.

Technology platform and intellectual property

The company will continue to develop and enhance its technology platform. Development activity will be prioritised towards functionality and use cases that management believes are most capable of supporting customer adoption and long-term value creation.

Cost discipline and operational focus

Management will continue to align expenditure with available resources and the company's stage of development. The reduction in administrative expenses during the year demonstrates the company's ability to manage its cost base while continuing to invest in core activities

.

Funding and going concern

The directors will continue to monitor cash flows and funding requirements closely. The company's plans assume continued access to appropriate financial support, including investor support or other funding arrangements, alongside the development of trading activity.

Sustainability and environmental responsibility

The company's technology is intended to support more efficient manufacturing processes and knowledge transfer. The directors will continue to consider environmental and sustainability factors as part of the development and deployment of the company's products and internal operations.

ON BEHALF OF THE BOARD:

Mr M F Oliveira - Director

4 August 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of information technology service activities.

FUTURE DEVELOPMENTS

The directors expect the company to continue progressing the development and deployment of its technology platform during the forthcoming period. The business will remain focused on expanding commercial engagement in its core manufacturing verticals, including the automotive and aerospace sectors, while maintaining disciplined cost control and monitoring funding requirements closely.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

Mr J C Costa

Mr M F Oliveira

Mr L M C De Lemos

Other changes in directors holding office are as follows:

Mr I H Gangas - resigned 24 March 2025

Mr D Sola Varela - resigned 8 September 2025

Mr T J Moe Borseth - appointed 24 March 2025

Mr A Morro Vall - appointed 1 September 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr M F Oliveira - Director

4 August 2026

Opinion

We have audited the financial statements of Kit-AR Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedure described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with law and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Anthony Cowan FCA, BSc (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Level 5A

Maple House

149 Tottenham Court Road

London

W1T 7NF

4 August 2026

REVENUE

3

133,576

149,964

Cost of sales

7,728

12,881

GROSS PROFIT

125,848

137,083

Administrative expenses

288,218

466,974

(162,370

)

(329,891

)

Other operating income

14,805

-

OPERATING LOSS

5

(147,565

)

(329,891

)

Interest receivable and similar income

-

78

LOSS BEFORE TAXATION

(147,565

)

(329,813

)

Tax on loss

6

(316

)

(22,208

)

LOSS FOR THE FINANCIAL YEAR

(147,249

)

(307,605

)

LOSS FOR THE YEAR

(147,249

)

(307,605

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(147,249

)

(307,605

)

FIXED ASSETS

Intangible assets

7

176,524

185,212

Property, plant and equipment

8

24,286

25,550

Investments

9

1,502,067

1,502,067

1,702,877

1,712,829

CURRENT ASSETS

Inventories

10

-

7,728

Debtors

11

166,955

314,894

Cash at bank

22,063

25,595

189,018

348,217

CREDITORS

Amounts falling due within one year

12

145,031

56,722

NET CURRENT ASSETS

43,987

291,495

TOTAL ASSETS LESS CURRENT LIABILITIES

1,746,864

2,004,324

CREDITORS

Amounts falling due after more than one year

13

(100,000

)

(209,895

)

PROVISIONS FOR LIABILITIES

14

(6,072

)

(6,388

)

NET ASSETS

1,640,792

1,788,041

CAPITAL AND RESERVES

Called up share capital

15

13

13

Share premium

2,997,359

2,997,359

Retained earnings

(1,356,580

)

(1,209,331

)

SHAREHOLDERS' FUNDS

1,640,792

1,788,041

The financial statements were approved by the Board of Directors and authorised for issue on 4 August 2026 and were signed on its behalf by:

Mr M F Oliveira - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

12

(901,726

)

2,399,704

1,497,990

Changes in equity

Issue of share capital

1

-

597,655

597,656

Total comprehensive income

-

(307,605

)

-

(307,605

)

Balance at 31 December 2024

13

(1,209,331

)

2,997,359

1,788,041

Changes in equity

Total comprehensive income

-

(147,249

)

-

(147,249

)

Balance at 31 December 2025

13

(1,356,580

)

2,997,359

1,640,792

Cash flows from operating activities

Cash generated from operations

1

9,859

(491,404

)

Tax paid

-

28,596

Net cash from operating activities

9,859

(462,808

)

Cash flows from investing activities

Purchase of intangible fixed assets

(6,975

)

(3,923

)

Purchase of tangible fixed assets

(6,416

)

(16,585

)

Purchase of fixed asset investments

-

(302,657

)

Interest received

-

78

Net cash from investing activities

(13,391

)

(323,087

)

Cash flows from financing activities

Share issue

-

1

Share premium

-

597,655

Net cash from financing activities

-

597,656

Decrease in cash and cash equivalents

(3,532

)

(188,239

)

Cash and cash equivalents at beginning of year

2

25,595

213,834

Cash and cash equivalents at end of year

2

22,063

25,595

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Loss before taxation

(147,565

)

(329,813

)

Depreciation charges

23,343

22,730

Decrease in Interco debtors

131,321

1,281

Finance income

-

(78

)

7,099

(305,880

)

Decrease/(increase) in inventories

7,728

(7,728

)

Decrease/(increase) in trade and other debtors

16,618

(373

)

Decrease in trade and other creditors

(21,586

)

(177,423

)

Cash generated from operations

9,859

(491,404

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

22,063

25,595

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

25,595

213,834

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

25,595

(3,532

)

22,063

25,595

(3,532

)

22,063

Total

25,595

(3,532

)

22,063

1.	STATUTORY INFORMATION

Kit-AR Limited 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 (£).

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

KIT-AR continues to make solid progress in both product development and commercial engagement within the Automotive and Aerospace sectors. The company maintains strong investor confidence, an active sales pipeline, and collaborative relationships with industry leaders. Based on this outlook, the directors believe that the company is well-positioned to sustain its operations and growth trajectory, and have therefore prepared the financial statements on a going concern basis.

The directors have assessed KIT-AR Limited’s current financial position and future prospects, including cash-flow forecasts covering a period of at least twelve months from the date of approval of these financial statements. The Company is expected to continue requiring additional investment funding while it develops its commercial activities and progresses towards forecast profitability. The directors continue to engage with existing and prospective investors and expect that the necessary funding will be available. In making their assessment, the directors have considered the Company’s ongoing product development, commercial engagement within the automotive and aerospace sectors, active sales pipeline, planned cost-control measures and expected funding requirements.

Based on this assessment, the directors consider that the Company will have sufficient resources to continue in operational existence for the foreseeable future and have therefore prepared the financial statements on the going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Kit-AR Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Significant judgements and estimates

The preparation of financial statements in accordance with the Companies Act 2006 and FRS102 requires from Management the exercise of judgement, to make estimates and assumptions that influence the application of accounting principles and the related amount of assets and liabilities income and expenses. The estimates and underlying assumptions are based on historical experience and various other factors that are deemed to be reasonable based on knowledge available at the time. Actual results may deviate from such estimates.

Revisions in accounting estimates are recognised in the period during which the estimate is revised, if the estimate affects only that period, or in the period of the revision and future periods. If the revision affects the present as well as future periods, the estimates and underlying assumptions are revised on a continuous basis.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue is earned from the sale of goods and from the rendering of services.

Revenue from the sale of goods is recognised when the buyer has obtained the significant risks and rewards of ownership of the goods, the company has no significant continuing involvement, the amount of revenue and associated costs can be measured reliably and it is probable that the company will receive the consideration.

The company provides augment technology solutions. These services are typically provided as part of a bundled transaction that also include the sale of goods but are considered to be separately identifiable components. Revenue from these services is recognised over the duration of the agreement.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of fifteen years.

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Capitalised development costs are stated at cost less accumulated amortisation and impairment losses. Amortisation is charged to the income statement on a systematic basis over the asset's estimated useful life, typically 15 years. The amortisation period and method are reviewed at each reporting date.

If the criteria for capitalisation are not met, development expenditure is recognised as an expense as incurred.

Tangible fixed assets

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

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

Equipment - 15% straight line.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any impairment.

Stocks

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

Costs include all costs incurred in bringing each product to its present location and condition under first-in

first-out (FIFO) basis.

Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

Research and development tax relief

Research and development tax relief, including any payable tax credit, is recognised within taxation in the period to which the underlying qualifying expenditure relates, provided that entitlement to the relief is considered probable and the amount can be measured reliably.

Where these recognition criteria are not met at the reporting date, the relief is recognised when the claim has been submitted and its recovery becomes sufficiently certain. Amounts recognised are based on management’s assessment of qualifying expenditure and the relevant tax legislation.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Development costs

Directly attributable expenses related to internally generated intangible assets is capitalised when following

criteria are met:

- Company is able to generate probable future economic benefits from use or sale of intangible asset.

- Company has intention to complete the intangible asset so that it will be available for use or sale of the intangible asset.

- Company has availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.

- Company has ability to use or sell the intangible asset.

- Company has technical feasibility of completing the intangible asset so that it will be available for use or sale of the intangible asset.

- Company has ability to reliably measure the expenditure attributable to the intangible asset during its development.

Technology under development is not depreciated until the asset is brought into commercial use.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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. In current year, there is no pensionable employee.

Cash and cash equivalent

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Government grants

Government grants are recognized when it is reasonable to expect that the grants will be received and that all related conditions are met, usually on submission of a valid claim for payment. Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grant of a revenue nature are credited to profit and loss so as to match them with the expenditure to which they related.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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 if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

3.

REVENUE

The revenue and loss before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2025

2024

£

£

Augment technology services

133,576

149,964

133,576

149,964

An analysis of revenue by geographical market is given below:

2025

2024

£

£

United Kingdom

21,595

80,156

Europe

111,981

69,808

133,576

149,964

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

103,934

170,649

Social security costs

23,058

27,560

Other pension costs

540

709

127,532

198,918

The average number of employees during the year was as follows:

2025

2024

Staff

3

4

It is the policy of the Company to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the Company and adequate opportunities for internal promotion are created. The Board is committed to a systematic training policy and has a comprehensive training and development potential to a maximum level of attainment. In this way, staff will make their best possible contribution to the organization's success.

The Company supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender or gender reassignment, marital status or disability. It is also the policy of the Company, where possible, to give sympathetic consideration to disabled persons in their application for employment with the Company and to protect the interests of existing members of the staff who are disabled. The company has made the necessary provision for allowing employees to work remotely and be connected to the company intranet.

The Company has in place an Equity Incentive Plan (EIP) for eligible employees, directors, officers and consultants to encourage them to make significant and extraordinary contribution to the performance and growth of the Company. The EIP extends to the Company's subsidiary, SkillAugment Lda.

2025

2024

£

£

Directors' remuneration

21,792

45,576

5.	OPERATING LOSS

The operating loss is stated after charging:

2025

2024

£

£

Depreciation - owned assets

7,680

7,300

Development costs amortisation

15,663

15,431

Auditors' remuneration

3,750

3,750

Foreign exchange differences

1,415

6,114

Other operating lease costs relate to rent.

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

-

(28,596

)

Deferred tax

(316

)

6,388

Tax on loss

(316

)

(22,208

)