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Registered number: 08794645
TERRA TEK STUDIOS LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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TERRA TEK STUDIOS LIMITED
CONTENTS
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Notes to the financial statements
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TERRA TEK STUDIOS LIMITED
REGISTERED NUMBER: 08794645
BALANCE SHEET
AS AT 31 MARCH 2026
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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1
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TERRA TEK STUDIOS LIMITED
REGISTERED NUMBER: 08794645
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2026
The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 9 form part of these financial statements.
2
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TERRA TEK STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Terra Tek Studios Limited is a private company, limited by shares, registered in England and Wales, registration number 08794645. The registered address is Labs Atrium 3.18 Stables Market, Chalk Farm Road, London, NW1 8AH.
The principal activity of the company is that of video games development and publishing.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis.The company incurred a loss for the year of £907,423 and, at the balance sheet date, had net liabilities of £1,536,806. The directors have considered the company's financial position, expected trading performance, forecast cash flows and available sources of finance for the period of at least twelve months from the date of approval of these financial statements. The directors acknowledge that the company remains dependent on the successful delivery of scheduled product improvements, new product launches, continued control of expenditure, and the availability of further funding where required. Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis. The directors will continue to monitor the company's cashflow requirements and funding position closely.
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is pound sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and loss account within 'administration expenses'.
3
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TERRA TEK STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Revenue represents the amount receivable for the development, publishing and sale of video games and related services, net of value added tax and trade discounts.
Revenue is recognised when control of the goods or services is transferred to the customer, at the amount of consideration to which the company expects to be entitled.
Revenue from publishing agreements, royalties and other contractual arrangements is recognised in accordance with the terms of the relevant agreement and when the related performance obligations have been satisfied.
Royalty and revenue-sharing income is recognised when the underlying sales occur and the amount can be measured reliably.Turnover from computer games is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured.
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Operating leases: the company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Government grants are recognised at the point in which it is reasonably assured that the company has satisfied the conditions attached to the grants and that the grants will be received.
Government grants, including Video Games Expenditure Credits ("VGEC") are recognised as other operating income. The recognition of VGEC grants are aligned over the period in which related costs attached to the grant are incurred.
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.
4
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TERRA TEK STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The company is eligible to claim a tax credit on computer games production costs. The tax credit comprises relief based on total net costs and an additional deduction for enhanceable expenditure. The company claims a payment based on the amount of enhanced expenditure and carries losses arising from total net costs carried forward against future profits.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment.
5
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TERRA TEK STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price.
The company only enters into basic financial instrument 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 and loans to related parties.
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No redundancy or restructuring costs were incurred during the year (2025 - £74,657).
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The average monthly number of employees, including directors, during the year was 16 (2025 - 39).
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Charge for the year on owned assets
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6
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TERRA TEK STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Creditors: Amounts falling due after more than one year
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7
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TERRA TEK STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Analysis of the maturity of loans is given below:
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Amounts falling due after more than 5 years
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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1,055,000 Ordinary shares of £0.000010 each
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527,500 A Preference shares of £0.000010 each
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8
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TERRA TEK STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
During the prior year, the company implemented a temporary salary reduction scheme for employees, resulting in total reductions of £112,380.
Under the terms of the scheme, the reduced salaries may be repayable as discretionary bonuses, subject to the company clearing all outstanding debts and remaining profitable after such payments.
As at 31 March 2026, these conditions have not been satisfied and, accordingly, no liability has been recognised in the financial statements for the year. The directors will continue to review the arrangement periodically and will recognise a liability only when the relevant conditions are met.
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £18,535 (2025 - £38,822). Contributions totalling £3,915 (2025 - £4,137) were payable to the fund at the balance sheet date and are included in creditors.
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Related party transactions
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Included in creditors falling due after more than one year are loans received from a shareholder with a total present value of £887,212 (2025 - £320,087).
The loans are interest free and repayable within ten years.
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Post balance sheet events
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On 5 May 2026, the company issued 180,853 Ordinary B shares of £0.0001 each at a subscription price of £2.21169 per share. The shares were allotted for total consideration of £399,991.
The subscription price was satisfied by the extinguishment of debts owed by the Company to the subscribers, with an amount equal to the subscription consideration being released and discharged upon allotment of the shares. The shares were issued as fully paid following execution of the relevant subscription documentation.
9
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