Lava Wash Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Lava Wash Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 11926776 . The registered office is 54 Archer House, Vicarage Crescent, London, SW11 3LG.

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.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern. After reviewing the company's forecasts and projections the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing its financial statements.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Research and Development

Expenditure on research is expensed to profit and loss in the year it is incurred. Expenditure on development is capitalised as an intangible asset when the company can demonstrate the technical feasibility of completing the intangible asset, its intention to complete, its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. Where these conditions are not met, the expenditure is expensed to profit and loss when it is incurred.

Following initial recognition of development expenditure as an intangible asset, it is measured at cost less any accumulated amortisation and accumulated impairment losses. Amortisation commences once the asset is available for sale or use. Capitalised development expenditure is amortised to profit and loss account over its estimated economic life of five years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	25% straight line
Fixtures & Fittings	25% straight line
Computer Equipment	33.33% straight line

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

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Lava Wash Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 April 2026

2.7. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.8. 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.

2.9. Pensions

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.10. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

2.11. Share Based Payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the company. The fair value of the services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated by reference to observable market data, namely recent transactions in the entity's shares or recent independent fair valuation of the entity. The total amount expensed is recognised to profit and loss, with a corresponding increase in share option reserve, over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital and share premium when the options are exercised. On exercise of the options the related share option expense is transferred from the share option reserve to profit and loss reserve.

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Lava Wash Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 April 2026

3. Average Number of Employees

Average number of employees, including directors, during the year was: 5 (2025: 3)

4. Intangible Assets

	Development Costs
	£
Cost
As at 1 May 2025	278,338
Additions	187,632

As at 30 April 2026	465,970

Amortisation
As at 1 May 2025	9,278
Provided during the period	55,668

As at 30 April 2026	64,946

Net Book Value
As at 30 April 2026	401,024

As at 1 May 2025	269,060

5. Tangible Assets

	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 May 2025	51,652	940	2,078	54,670
Additions	-	-	596	596
Disposals	(1,618 )	-	-	(1,618 )

As at 30 April 2026	50,034	940	2,674	53,648

Depreciation
As at 1 May 2025	1,161	275	744	2,180
Provided during the period	24,040	235	737	25,012

As at 30 April 2026	25,201	510	1,481	27,192

Net Book Value
As at 30 April 2026	24,833	430	1,193	26,456

As at 1 May 2025	50,491	665	1,334	52,490

6. Stocks

	2026	2025
	£	£
Materials	34,515	10,802
Finished goods	6,297	12,886
Payments on account	11,583	7,762

	52,395	31,450

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Lava Wash Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 April 2026

7. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	6,357	-
Other debtors	87,653	99,126

	94,010	99,126

8. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Trade creditors	52,184	45,008
Bank loans and overdrafts	15,519	-
Other loans	105,496	35,513
Other creditors	138,332	186,618
Taxation and social security	31,582	5,236

	343,113	272,375

9. Share Capital

	2026	2025
Allotted, called up and fully paid	£	£
2,157,861 Ordinary Shares of £ 0.0001 each	216	187

During the year 291,195 shares with an aggregate nominal value of £29 were issued for a total consideration of £459,992.

10. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2026	2025
	£	£
Not later than one year	21,258	21,258
Later than one year and not later than five years	14,172	35,430

	35,430	56,688

11. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 1 May 2025	Amounts advanced	Amounts repaid	Amounts written off	As at 30 April 2026
	£	£	£	£	£
Mr Rory Taylor	-	23,153	9,029	-	14,124

The above loan is unsecured and repayable on demand. Interest is charged at the beneficial loan rate.

12. Post Balance Sheet Events

Following the year end 259,186 shares with an aggregate nominal value of £25.92 have been issued for a total consideration of £484,034.

13. Share based payments

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Lava Wash Ltd

Notes to the Financial Statements (continued)

For The Year Ended 30 April 2026

Approved share scheme

Certain employees have been granted options over unissued share capital of the company. The options expire ten years after the grant date.

The movements in the number of share options during the year were as follows:

Outstanding at beginning of year: 493,750 (2025: 379,167)

Issued during the year: nil (2025: 114,583)

Lapsed during the year: nil (2025: nil)

Exercised during the year: nil (2025: nil)

Outstanding at end of year: 493,750 (2025: 493,750)

The weighted average exercise price of share options was as follows:

Outstanding at beginning of year: £0.1266 (2025: £0.0001)

Issued during the year: nil (2025: £0.5450)

Exercised during the year: nil (2025: nil)

Outstanding at end of year: £0.1266 (2025: £0.1266)

Unapproved share scheme

Advisors to the company have been granted options over unissued share capital of the company. The options expire ten years after the grant date.

The movements in the number of share options during the year were as follows:

Outstanding at beginning of year: nil (2025: nil)

Issued during the year: 22,076 (2025: nil)

Lapsed during the year: nil (2025: nil)

Exercised during the year: nil (2025: nil)

Outstanding at end of year: 22,076 (2025: nil)

The weighted average exercise price of share options was as follows:

Outstanding at beginning of year: nil (2025: nil)

Issued during the year: £0.0001 (2025: nil)

Exercised during the year: nil (2025: nil)

Outstanding at end of year: £0.0001 (2025: nil)

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		401,024		269,060
Tangible Assets	5		26,456		52,490

			427,480		321,550
CURRENT ASSETS
Stocks	6	52,395		31,450
Debtors	7	94,010		99,126
Cash at bank and in hand		6,097		38,468

		152,502		169,044
Creditors: Amounts Falling Due Within One Year	8	(343,113 )		(272,375 )

NET CURRENT ASSETS (LIABILITIES)			(190,611 )		(103,331 )

TOTAL ASSETS LESS CURRENT LIABILITIES			236,869		218,219

NET ASSETS			236,869		218,219

CAPITAL AND RESERVES
Called up share capital	9		216		187
Share premium account			869,529		414,816
Advanced Share Subscriptions			-		200,000
Share Option Reserve			145,326		92,421
Profit and Loss Account			(778,202 )		(489,205 )

SHAREHOLDERS' FUNDS			236,869		218,219