For the financial year ended 31 December 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 financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Outrun Therapeutics Limited is a private company limited by shares incorporated in Scotland. The registered office is Errol Road, Invergowrie, Dundee, Scotland, DD2 5DA. The company registration number is SC648164.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 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 cost convention, The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as 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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The average monthly number of persons (including directors) employed by the company during the year was:

Advances or credits have been granted by the company to its directors as follows:

18 month convertible loan notes were issued on 31st August 2023. Interest accrues on the principal amount of £4,000,000 at 8% per annum, payable daily. The period until maturity was extended by a further 12 months on 12th October 2023. The debt is convertible into share capital in Outrun Therapeutics Limited.

15 month convertible loan notes were issued on 12th November 2024. Interest accrues on the principal amount of £2,600,000 at 8% per annum, payable daily. The debt is convertible into share capital in Outrun Therapeutics Limited.

10 month convertible loan notes were issued on 9th May 2025. Interest accrues on the principal amount of £1,400,000 at 8% per annum, payable daily. The debt is convertible into share capital in Outrun Therapeutics Limited.

All convertible loan notes mature on 20th February 2026.

Issue of share capital

On 19th February 2026, 11,508 ordinary shares of £0.001 each were issued resulting in an increase to nominal share capital of £11.51. These shares were issued as a result of the exercise of a share option scheme.

On 20th February 2026, 12,544,352 preference shares of £0.001 each were issued resulting in an increase to nominal preference share capital of £12,544.36. These shares were issued on the conversion of convertible loan notes.

The company operates an equity-settled share option scheme for certain employees and directors. Movements in share options are not recognised in the financial statements as the amounts are truly immaterial in the opinion of those charged with governance. The omission of the share movements does not influence the economic decisions of the stakeholders using these financial statements.

Share-options at the beginning of the period:

27,043 share options granted at an exercise price of £0.001 each.

Movements to share-options in the period:

15,535 share options lapsed during the period at an exercise price of £0.001 each.

6,278 share options were granted in the period at an exercise price of £0.001 each.

Share-options at the end of the period:

17,786 share options remain granted at an exercise price of £0.001 each at the balance sheet date.

Post balance sheet movements:

On 19th February 2026, 11,508 share options were exercised at an exercise price of £0.001 each. The share options were converted to ordinary share capital on this date.