Falcon Capital Markets UK Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—5

1. General Information

Falcon Capital Markets UK Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 13395268 . The registered office is 34 Ventnor Drive, Clacton-On-Sea, Essex, CO15 4PQ.

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.

The company qualifies as a small group under Section 383 of the Companies Act 2006 and is exempt from the requirement to prepare consolidated financial statements.

The financial statements are prepared in US dollars, which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest $.

2.2. Going Concern Disclosure

At the balance sheet date, the company’s liabilities exceeded its assets. The financial statements have been prepared on the going concern basis. The director has reviewed the company's trading since the balance sheet date and its current financial position and considers that the company will be able to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements."

2.3. Turnover

Net trading revenue is recognised to the extent that it is probable that the economic benefits will flow to

the company and can be reliably measured. Net trading revenue is measured as the fair value of the

consideration received or receivable.

Net trading revenue comprises profits and losses derived from dealings in cryptocurrencies and digital

assets as principal transactions in digital assets and after direct trading expenses.

The profit and losses from dealings on cryptocurrencies and digital assets include unrealised profits and

losses at the period end as assets held are included at market value. The directors consider this to be

necessary to show a true and fair view as the company is operating in highly active markets.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

During the year, the balance of $955,491 brought forward was marked to market. The resulting balance was transferred to stocks in September 2024. No disposal took place and, accordingly, no gain or loss arose on the transfer.

2.5. Stocks and Work in Progress

The inventory held by the company consists of various cryptocurrencies and digital assets held at the

balance sheet date. Inventory is measured at fair value.

Cryptocurrencies are held for sale as part of the company ordinary activities and measured at fair value

through profit and loss. This comprises of holding inventory at fair value less costs to sell, which provides

a more relevant measure of the company's performance. As the company operates in active market

where sales can be achieved at published prices from a number of active sources, resulting in a store of

readily realisable value at the balance date, fair value is a more relevant measure.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of

stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss

in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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Falcon Capital Markets UK Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

2.6. Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section

12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party

to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements,

when there is a legally 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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the

assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and

preference shares that 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.

2.7. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

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

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Falcon Capital Markets UK Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

4. Intangible Assets

	Other
	$
Cost
As at 1 June 2024	955,491
Transfers	(955,491 )

As at 31 May 2025	-

Net Book Value
As at 31 May 2025	-

As at 1 June 2024	955,491

5. Investments

	Subsidiaries
	$
Cost
As at 1 June 2024	-
Additions	100

As at 31 May 2025	100

Provision
As at 1 June 2024	-

As at 31 May 2025	-

Net Book Value
As at 31 May 2025	100

As at 1 June 2024	-

Falcon Capital (BVI) Ltd (BVI company number 2132894), registered office Craigmuir Chambers, Road Town, Tortola, VG 1110, British Virgin Islands; ordinary shares of no par value; 100% held.

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		2025		2024
	Notes	$	$	$	$
FIXED ASSETS
Intangible Assets	4		-		955,491
Investments	5		100		-

			100		955,491
CURRENT ASSETS
Stocks		57,150,997		13,773,777
Debtors		1,977,649		264,459
Cash at bank and in hand		4,191		14,530

		59,132,837		14,052,766
Creditors: Amounts Falling Due Within One Year		(59,256,610 )		(15,015,629 )

NET CURRENT ASSETS (LIABILITIES)			(123,773 )		(962,863 )

TOTAL ASSETS LESS CURRENT LIABILITIES			(123,673 )		(7,372 )

NET LIABILITIES			(123,673 )		(7,372 )

CAPITAL AND RESERVES
Called up share capital	6		141		141
Profit and Loss Account			(123,814 )		(7,513 )

SHAREHOLDERS' FUNDS			(123,673)		(7,372)