REGISTERED NUMBER: 10470662 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

FOR

QKINE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Dr M J Hyvonen

Dr R A Scoffin

Mr J Warwick

Parkwalk Advisors Ltd

Mr L J Ede

REGISTERED OFFICE:

c/o Mishcon de Reya

Four Station Square

Cambridge

CB1 2GE

REGISTERED NUMBER:

10470662 (England and Wales)

ACCOUNTANTS:

Chater Allan LLP

Chartered Accountants

7 Quy Court

Colliers Lane

Stow-cum-Quy

Cambridgeshire

CB25 9AU

FIXED ASSETS

Intangible assets

4

4,142

6,542

Tangible assets

5

692,332

1,016,664

696,474

1,023,206

CURRENT ASSETS

Stocks

990,953

901,895

Debtors

6

527,685

601,717

Cash at bank

422,930

854,661

1,941,568

2,358,273

CREDITORS

Amounts falling due within one year

7

519,983

291,830

NET CURRENT ASSETS

1,421,585

2,066,443

TOTAL ASSETS LESS CURRENT LIABILITIES

2,118,059

3,089,649

CREDITORS

Amounts falling due after more than one year

8

(386,415

)

-

PROVISIONS FOR LIABILITIES

10

(35,000

)

(35,000

)

NET ASSETS

1,696,644

3,054,649

CAPITAL AND RESERVES

Called up share capital

11

402

389

Share premium

12

7,881,489

7,836,351

Non-equity reserve

12

175,353

177,632

Retained earnings

12

(6,360,600

)

(4,959,723

)

SHAREHOLDERS' FUNDS

1,696,644

3,054,649

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2026 and were signed on its behalf by:

Dr R A Scoffin - Director

1.	STATUTORY INFORMATION

Qkine 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:

- The amount of revenue can be reliably measured;

- it is probable that future economic benefits will flow to the entity;

- and specific criteria have been met for each of the company's activities.

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.

Licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

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

Plant and machinery - 20% on cost on a straight-line basis

Fixtures and fittings - 20% on cost on a straight-line basis

Computer equipment - 33% on cost on a straight-line basis

Leasehold improvements - 20% on cost or over the remaining life of the lease, whichever is shorter

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

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.

Government loans

Government loans are recognised when the Company becomes a party to the contractual provisions of the loan agreement.

A government loan provided at a below-market rate of interest is initially recognised at the present value of the future contractual cash flows, discounted using a market rate of interest for a similar debt instrument. The loan is subsequently measured at amortised cost using the effective interest method, with finance costs recognised in profit or loss over the term of the loan.

The benefit arising from the below-market rate of interest is recognised as a government grant where there is reasonable assurance that the Company will comply with the conditions attaching to the grant and that the grant will be received. The benefit is recognised as deferred income and released to profit or loss on a systematic basis over the periods in which the related expenditure is recognised.

Going concern

The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future. During the year the company incurred a loss after tax of £1,400,877.

The company is working towards achieving a sustainable revenue generating activity. The directors have considered the basis of the financial statements and are satisfied that a combination of business growth and further investment will enable the company to meet its liabilities as they fall due.

Taking all known factors into account the board considers Qkine Limited to be a going concern.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 30 (2025 - 31 ) .

4.	INTANGIBLE FIXED ASSETS

Licences

£

COST

At 1 April 2025

and 31 March 2026

17,000

AMORTISATION

At 1 April 2025

10,458

Amortisation for year

2,400

At 31 March 2026

12,858

NET BOOK VALUE

At 31 March 2026

4,142

At 31 March 2025

6,542

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 April 2025

742,379

1,165,486

50,430

3,315

1,961,610

Additions

16,578

31,752

-

-

48,330

Disposals

-

(2,707

)

-

-

(2,707

)

At 31 March 2026

758,957

1,194,531

50,430

3,315

2,007,233

DEPRECIATION

At 1 April 2025

369,005

549,825

24,765

1,351

944,946

Charge for year

169,629

189,789

11,147

1,105

371,670

Eliminated on disposal

-

(1,715

)

-

-

(1,715

)

At 31 March 2026

538,634

737,899

35,912

2,456

1,314,901

NET BOOK VALUE

At 31 March 2026

220,323

456,632

14,518

859

692,332

At 31 March 2025

373,374

615,661

25,665

1,964

1,016,664

6.

DEBTORS

2026

2025

£

£

Amounts falling due within one year:

Trade debtors

213,668

321,819

R&D

79,770

88,732

VAT

25,210

39,541

Prepayments

155,037

97,625

473,685

547,717

2026

2025

£

£

Amounts falling due after more than one year:

Rent deposits

54,000

54,000

Aggregate amounts

527,685

601,717

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade creditors

134,083

127,164

Social security and other taxes

27,062

35,223

Pensions

-

10,853

Other creditors

1,006

47,151

Accruals and deferred income

208,086

71,439

Customer deposits

149,746

-

519,983

291,830

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Innovate loan

386,415

-

The company entered into a loan facility agreement with Innovate UK to support its research and development activities. The facility provides funding of up to £765,480, of which £440,788 was drawn at 31 March 2026. The carrying amount of the loan at the balance sheet date was £386,415. The loan is secured by a debenture creating fixed and floating charges over substantially all of the company's assets.

The loan was provided at a below-market rate of interest and has been recognised at amortised cost. The benefit arising from the concessional terms has been recognised as a deferred income in accordance with the company's accounting policy.

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2026

2025

£

£

Within one year

90,000

90,000

Between one and five years

450,000

450,000

In more than five years

22,500

112,500

562,500

652,500

10.	PROVISIONS FOR LIABILITIES

2026

2025

£

£

Other provisions

Dilapidations provision

35,000

35,000

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2026

2025

value:

£

£

4,018,663

Ordinary shares

£0.0001

402

389

During the year 24,109 ordinary shares of £0.0001 were issued at a premium of £0.40 per share and 104,433 ordinary shares of £0.0001 were issued at a premium of £0.34 per share

12.

RESERVES

Retained

Share

Non-equity

earnings

premium

reserve

Totals

£

£

£

£

At 1 April 2025

(4,959,723

)

7,836,351

177,632

3,054,260

Deficit for the year

(1,400,877

)

(1,400,877

)

Cash share issue

-

45,138

-

45,138

Share options granted

-

-

(2,279

)

(2,279

)

At 31 March 2026

(6,360,600

)

7,881,489

175,353

1,696,242

13.	SHARE-BASED PAYMENT TRANSACTIONS

On 24 September 2019 the company established an Enterprise Management Incentive Share Option Scheme (EMI). The Scheme was established to help recruit, motivate and retain key personnel.

At 1 April 2025, 246,227 EMI options were outstanding at a weighted average exercise price of £0.37 per share. As at 31 March 2026, 125,327 share options were outstanding at a weighted average exercise price of £0.36, of which 64,244 were exercisable at a weighted average exercise price of £0.38.

The total (credit)/expense recognised in profit or loss for the year in respect of share-based payment transactions was a credit of £2,279 (2025: expense of £11,367).

The EMI Options granted become exercisable as set out in the individual Option Agreements. Option Agreements allow for an initial exercise on or after the first anniversary of the vesting start date, of one-third of the total number of Option shares. Thereafter, one-twelfth of the total number of Option shares are exercisable at the end of the first quarter after the first anniversary of the vesting start date, and on each subsequent quarter day.

An Option may not be exercised later than the day before the tenth anniversary of the Date of Grant.

The Vesting Start Date in relation to any Option is the date set by the directors, as evidenced by the Option certificate.